Using Thornes unadjusted trial balance below and facts a-h, complete necessary adjusting entries at fiscal year end. Thorne Construction Unadjusted

Using Thornes unadjusted trial balance below and facts a-h, complete necessary adjusting entries at fiscal year end. Thorne Construction Unadjusted

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Using Thornes unadjusted trial balance below and facts a-h, complete necessary adjusting entries at fiscal year end. Thorne Construction Unadjusted
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Using Thorne’s unadjusted trial balance below and facts a-h, complete necessary adjusting entries at fiscal year end.Thorne ConstructionUnadjusted trial balanceFor the year ended July 31, 20X8DebitCreditCash12,500Accounts Receivable40,000Allowance for Doubtful Accounts2,000Office Supplies1,850Prepaid insurance6,500Prepaid RentEquipment154,000Accum. Depreciation – Equipment38,500Accounts Payable23,000Interest PayableWages PayableLong-term Notes Payable30,000W. Thorne, Capital82,300W. Thorne, Drawing25,000Constuction Revenues112,000Bad Debt ExpenseDepreciation Expense–EquipmentWage Expense29,400Interest Expense900Insurance ExpenseRent Expense10,800Office Supplies ExpenseRepairs Expense100Utilities Expense6,750Totals287,800287,800a. A physical count of office supplies as of July 31, 20X8,,shows $800 in supplies on hand.b. On March 1, 20X7, Thorne Construction prepaid $9,000 for an 18-month insurance policy of which 5 months ($2,500) was used up during fiscal year 20X7.c. The equipment has a 28-year life and no salvage value. Thorne uses straight-line depreciation.d. July’s electric bill for $420 is not included because it arrived after the worksheet was prepared.e. There are $1,800 of accrued wages as of the fiscal year end.f. Thorne’s rent of $800 a month is payable quarterly, in advance. Its most recent payment was $2,400O on June 30,, 20X8, to cover July, August and September 20X8.g. Thorne estimates bad debt at 2% of credit sales.h. The long-term note payable bears interest at 1% a month payable by the 10th of the following month. The interest for July has neither been paid nor recorded.

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Adjusting entries at the fiscal year end for Thorne Construction Adjusting entry for office supplies
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