Ken Cascioli and Bill Ryder need to make adjusting journal entries to prepare financial statements based on their first month’s activities. Make adjusting journal entries for the following events, referring to the transactions in E15- 10 as necessary.
1. Record depreciation for 1 month on the ladders and other equipment.
2. Record depreciation for 1 month on the pickup truck.
3. Accrue interest for 1 month on the note referred to in transaction 2b.
4. Record the cost of insurance for 1 month.
5. Ken and Bill worked on the last 2 days of the month and earned a total of $ 850, but they did not collect cash because the last day of the month fell on a Tuesday. Make an accrual for their earnings.