Enter the following column headings across the top of a sheet of paper:

Enter the transaction or adjustment letter in the first column, and show the effect, if any, of each of the transactions or adjustments on the appropriate balance sheet category or on the income statement by entering the amount and indicating whether it is an addition (+) or a subtraction (?). You may also write the journal entries to record each transaction or adjustment.

a. Wages of $4,100 accrued at the end of the prior fiscal period were paid this fiscal period.

b. Real estate taxes of $5,500 applicable to the current period have not been accrued.

c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $920,000 of 6.3% bonds.

d. The premium related to the bonds in part c has not been amortized for the current month. The current-month amortization is $310.

e. Based on past experience with its warranty program, the estimated warranty expense for the current period should be 0.4% of sales of $740,000.

f. Analysis of the company?s income taxes indicates that taxes currently payable are $61,000 and that the deferred tax liability should be increased by $22,000.

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Transaction/ Adjustment Current Assets Current Liabilities Net Income Noncurrent Liabilities