Problem 12.1A (Static) Recording adjustments for accrued and prepaid items and unearned income. LO 12-2, 12-3 a. b. Merchandise Inventory, before adjustment, has a balance of $7,800. The newly counted inventory balance is $8,300. c. Unearned Seminar Fees has a balance of $6,300, representing prepayment by customers for five seminars to be conducted in June, July, and August 20X1. Two seminars had been conducted by June 30, 20X1. d. Prepaid Insurance has a balance of $13,800 for six months' insurance paid in advance on May 1, 20X1. e. Store equipment costing $6,530 was purchased on March 31, 20X1. It has a salvage value of $530 and a useful life of five years. f. Employees have earned $280 that has not been paid at June 30, 20X1. g. The employer owes the following taxes on wages not paid at June 30, 20X1: SUTA, $8.40; FUTA, $1.68; Medicare, $4.06, and social security, $17.36. h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $2,300,000. i. Prepaid Rent has a balance of $7,050 for six months' rent paid in advance on March 1, 20X1. j. The Supplies account in the general ledger has a balance of $430. A count of supplies on hand at June 30, 20x1, indicated $165 of supplies remain. k. The company borrowed $4,800 from Second Bancorp on June 1, 20X1, and issued a four-month note. The note bears interest at 9 percent Required: Based on the information above, record the adjusting journal entries that must be made for Kisling Distributors on June 30, 20X1. The company has a June 30 fiscal year-end. General Journal Analyze Based on the information above, record the adjusting journal entries that must be made for Kisling Distributors on June 30, 20X1. The company has a June 30 fiscal year-end. (Round your final answers to 2 decimal places.) No Transaction General Journal Debit Credit 1 a. Income summary Merchandise inventory 7,800.00 7,800.00 N b. Merchandise inventory 8,300.00 Income summary 8,300.00 3 C. Unearned seminar fees Seminar fees income Analyze: After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account? Complete this question by entering your answers in the tabs below. General Journal Analyze Based on the information above, record the adjusting journal entries that must be made for Kisling Distributors on June 30, 20X1. company has a June 30 fiscal year-end. (Round your final answers to 2 decimal places.) View transaction list Journal entry worksheet Record an adjusting entry for beginning inventory. Journal entry worksheet II. Record an adjusting entry for insurance expired. Note: Enter debits before credits. Transaction General Journal Debit Credit d. Journal entry worksheet 1 2 3 4 5 6 7 8 11 ... Record an adjusting entry for depreciation. Note: Enter debits before credits. Transaction General Journal Debit Credit e. Journal entry worksheet ... + Record an adjusting entry for rent. Note: Enter debits before credits. Transaction General Journal Debit Credit i. Journal entry worksheet