1. Pip’s Puppy Company has the following UNADJUSTED Trial Balance at Year End:

Pip’s Puppy Company

Trial Balance

DEC 31, 2023

Debit Credit

Cash $12,500

Accounts Receivable $25,000

Inventory $40,000

Supplies $8,000

Prepaid Insurance $24,000

Land $50,000

Building $145,000

Accum Dep-Building $0

Equipment $80,000

Accum Dep-Equipment $0

Accounts Payable $109,500

Unearned Revenue $22,000

Interest Payable$0Salary Payable $0

Mortgage Payable $50,000

Tara’s Capital $150,000

Tara’s Drawing $4,000

Service Revenue $75,000

Rent Expense $3,000

Salary Expense $15,000

Interest Expense $0

Depreciation Expense-Blg $0

Depreciation Exp Equip $0

Insurance Expense $0

Supplies Expense $0

Total $406,500 $406,500

Additional Data Needed for Adjustments:

1. Tara estimates that the BUILDING will Depreciate at a rate of $12,000 per year and the Equipment at a rate of $4,000 per year . Record the Depreciation for the year for both the Building and Equipment.

1. Tara determines that 40% of the Unearned Revenue has now been earned by year end:

$22.000 x 40% = $8,800

3. The ending (UNUSED) Supplies value is estimated to be $3,800.-$8,000 = $4,200

4. Tara realizes she neglected (FORGOT…OOPS) to record interest revenue of $8,900 that was earned but not yet RECEIVED by Dec 31^st.

5. The Prepaid Insurance Policy is for 12 months dated July 1^st, 2022...record the adjustment for 6 months ending Dec 31^st 2022. $24,000/12 Mos = $2,000 x 6 months = $12,000 used up

6. Tara has not yet paid $3,450 to her employees for salaries owed but not yet paid (Payable) at the end of the month of Dec 31^st 2023.

REQUIRED: Record the Adjustments in the Journal...all accounts needed are included in the Trial Balance