Part III: Problems - Directions: Do all the following problems. Problem #1. End of Period Adjustments Journal Entries (18 pts): The following information relates to month end adjustments: Johnson & Johnson, a large marketing firm, adjusts its accounts at the end of each month. The following information is available for the year ending December 31 1. A bank loan had been obtained on December 1. Accrued interest on the loan at December 31 amounts to $1,500. No interest expense has yet been recorded. 2. Depreciation of the firm's office building is based on an estimated life of 30 years. The building was purchased four years ago for $450,000. 3. Accrued, but unbilled, revenue during December amounts to $75,000. 4. On March 1, the firm paid $2,400 to renew a 12-month insurance policy. The entire amount was recorded as Prepaid Insurance. 5. The firm received $15,000 from King Biscuit Company in advance of developing a six-month marketing campaign. The entire amount was initially recorded as Unearned Revenue. At December 31, $9,000 had actually been earned by the firm. 6. The company's policy is to pay its employees every Friday. Since December 31 fell on a Wednesday, there was an accrued liability for salaries amounting to $1,900. hablem - Preparin a. Required: using the next page worksheet, prepare the adjusting entries required at September 30, 2021. Date Account Debit Credit

Part 111: Problicms - Dircetians: Do all the fellowis preblems. The followine information relates in moelt end affustrenty: reviodel. 3. Acerued, but unbillet menue daing Decomber amaunts to 575,000 . 4. Os Marct 1, the firme prid 52,000 to tencer a 12 -moath insurance policy. 5. The fimm recched SiS,OW frein King Bicetir Compooy is advanee of betually lecti canced by the finm 6. The conpany's policy is to pay its engloyecs orery Fridsy. Sixce Docember 4051,000 . required at Sigulem her se, 2021