Instructions

Main Square is completing the accounting process for the year just ended December 31, 2021. The transactions during 2021 have been journalized and posted. The following data with respect to adjusting entries is available;

a. Main squeeze entered into a contract to provide fresh lemonade to a local bar every week from October 1 until April 30 for $200/ week all of which was prepaid. (assume 4 weeks per month) b. On July 1^st Purchased a 2-year insurance policy for $600

c. Estimated depreciation of the car for the year to be $800

d. Borrowed $5,400 in April to purchase the cart, annual installments of $1,080 are due each April. plus 10% interest on the opening balance.

e. In April, estimated the useful life of the lemonade stand/trailer to be five seasons

f. At December 31, Main Squeeze had $340 worth of supplies and inventory on hand, purchased $3,700 worth during the year, and began with $0.

Required

Prepare adjusting entries for Main Squeeze on December 31, 2021