Question: Using the three-step process illustrated in the chapter, (1) Identify the type of adjustment that is required for each of the following transactions (a) through

Using the three-step process illustrated in the chapter,

(1) Identify the type of adjustment that is required for each of the following transactions (a) through (c) for Morgan Marketing Company

(2) Determine the amount of the adjustment

(3) Record the adjusting entry necessary at year-end December 31, 2011.

a. Estimated electricity usage at $360 for December to be paid in January 2012.

b. Owed wages to 10 employees who each worked four days at $150 per day at the end of December. The company will pay employees at the end of the first week of January 2012.

c. On September 1, 2011, loaned $5,000 to an officer who will repay the loan principal and interest in one year at an annual interest rate of 14 percent.

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