The Hullabaloo Company has reported income of $500,000 for the year ended December 31, 2011, before considering the 4 items below. 

1. Interest on a $20,500, 8 percent, five-year note payable was last paid on September 1, 2011. 

2. On August 1, 2011, Hullabaloo paid a year’s rent in advance on a warehouse, and debited the $65,000 payment to Prepaid Rent. 

3. Depreciation on $45,000 of office equipment that was purchased on June 1, 2011 has an anticipated life of 10 years with no residual value. 

4. The supplies inventory on January 1, 2011 was $8,350. Supplies costing $16,650 were acquired during the year and charged to the supplies inventory. A count on December 31, 2011 indicated supplies on hand of $6,810. 

Required: Prepare the adjusting entries needed at December 31, 2011 in order to correctly state the 2011 net income. Please round all entries to the nearest dollar. You can omit explanations. Show all calculations.

Answer rating: 100% (QA)

Closing Journal Entries For the year ended 31032011 Date Particular Dr Cr 31122011 Interest on 8 not... View the full answer