Can you help me with adjusting entry number 11 and 12? (Sheet 1) is the questions and (Sheet 2) is the black I need to put in. I need some explanation to do that that.

(Sheet 1)

(Sheet 2)

Additional Information: 1. An aging schedule of accounts receivable as of 12/31/11 resulted in a required amount in the allowance of $5000.- 2. On 11/1/11 the Company as the lessee (user of asset) prepaid rent for the next 6 months. 3. On 10/1/11 the Company received $25,000 for consulting work to be performed. As of 12/31/11, twenty percent of the work had been completed. 4. Salespeople are paid a commission of 2% of sales. Commissions have been paid through 11/30/11 based upon sales of $735,000 5. Plant is estimated to have a useful life of 25 years and a salvage value of $50,000 with depreciation calculated in the straight line method. 6. Equipment is depreciated using the straight line method. Useful life is estimated at 6 years with a salvage value estimated at $100.000.- 7. In 2011 it was discovered that in 2010, after the books had been closed, the bookkeeper did not expense President Fischer's yachting expenses (considered advertising and promotion) of $34,000. This expense was booked in 2011.- 8. A lawsuit was filed against the company in December of the current year. Outside legal counsel opines that a loss of $45,000 is likely. There has been no recording of this situation 9. Insurance is purchased each March 1 for a twelve month period. 10. Merchandise inventory is maintained on a periodic basis. A physical count at the end of the period indicates a value of $268.000. Now, build the cost of goods sold! 11. Notes payable carry an interest rate of 6%, payable quarterly. Interest was last paid on 12/1/11. The notes have a six month maturity- 12. The Company began leasing to another firm some of its land on 11/1/11. The monthly rent is $1,250, payable quarterly beginning on 2/1/12.- The income tax rate is 25%. - Don't worry about this until you have calculated income before tax in the income statement columns of the worksheet. Adjustments Debit Credit Unadjusted Trial Balance Debit Credit 361,000 318,000 1,200 250,000 1 10a 6,200 250,000 10b 9 268,000 8,000 2 6,000 18,000 102,000 434,000 149,000 5 15,360 256,000 6 26,000 140,000 100,000 166,800 26,700 4 14,700 52.600 7 8,500 8 45,000 3 5,000 Account Cash Accounts receivable Rents receivable Allowance for bad debts Merchandise inventory Prepaid insurance Prepaid Rent Supplies inventory Plant Accumulated Depreciation-plant Equipment Accumulated Depreciation-equip Land Notes payable Accrued interest payable Accounts payable Wages payable Commission payable Income taxes payable Estimated legal liability Unearned consulting revenue Mortgage payable Common stock Retained earnings Prior period adjustment Sales Consulting revenue Rental revenue (accrud accounting) Cost of goods sold Purchases Insurance expense Interest expense Commission expense Wage expense Depreciation expense Advertising & promotion expense Bad debt expense Lawsuit expense Rent expense Income tax expense Totals Income before tax Totals Income before tax 25,000 125,000 325,000 737,300 7 25,500 1,245,000 3 5,000 10a, 1,005,000 10b 100 9 268,000 755,000 8,000 755,000 48000 12500 14700 167000 4 14,700 5,6 41,360 75000 7 34,000 1 8 2 6,200 45,000 6,000 2,952,400 2,952,400 1,433,260 1,433,260