Chapter 3, P 2.

P2. On November 30, the end of the current fiscal year, the following information is available to assist Allerton Corporation's accountants in making adjusting entries:

a. Allerton's SUpplies account shows a beginning balance of $2,350. Purchases during the year were $4,218. The end-of-year inventory reveals suppleis on hand of $1,397.

b. The Prepaid Insurance account shows the following on November 30:

Beginning balance $4,270 July 1 4,200 October 1 7,272

The beginning balance represents the unexpired portion of a one-year policy purchased in September of the previous year. The July 1 entry represents a new one-year policy, and the October 1 entry represents additional coverage in the form of a three-year policy.

c. The following table contains the cost and annual depreciation for buildings and equipment, all of which Allerton purchased before the current year:

Account Cost Annual Depreciation Buildings $298,000 $16,000 Equipment 374,000 40,000

d. On October 1, the company completed negotations with a client and accepted an advance of the $18,600 was credited to Unearned Services Revenue.

e. The company caluclated that, as of November 30, it had earned $7,000 on an $11,000 contract that would be completed and billed in January.

f. Among the liabilities of the company is a note payable in the amount of $300,000. On November 30, the accrued interest on this note amounted to $18,000.

g. On Saturday, December 2, the company, which is on a six-day workweek, will pay its regular employees their weekly wages of $15,000.

Required: open t-accounts for each position listed above