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Could anyone help me out with these adjusting journal entries? The check figure given is 1,125,463. I just want to make sure I did them correctly. I will provide the trial balance, journal entries, and additional information for reference. Net income before taxes was 813,806. Record the following adjusting entries in general journal form as of December 31, 2023: 1. Supplies on hand at the end of the year: $5,200. 2. Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 10-year life, no salvage value and the company uses double-declining balance method for its depreciation. 3. Don't forget to depreciate the new equipment, which is also depreciated using the DDB method! 4. Included in the truck balance is a fully depreciated truck for $6,500 (see additional information below) and a new truck valued at $50,000 that was purchased on 1/1/17. The new truck has an 9-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset. 5. The building, placed in service on July 1, 2018, is being depreciated under the straight-line method over 39 years. 6. The machinery, purchased on December 1, 2020, has a 5-year useful life, salvage value of $50,000, and is being depreciated under the straight-line method. 7. The patent, purchased on 1/1/2013 for $150,000, has a useful life is 20 years. 8. Included in the Prepaid Insurance Account balance at 12/1 is a $75,000, 12-month insurance policy that was purchased on September 30, 2023. 9. Also included in the 12/1 trial balance (and the 12/31 TB) was an insurance policy that expired on 12/31/23. 10. The fair market value of the Equity Investments (Trading securities) is $13,900 11. The total fair value of the Debt Investments (Available for Sale Securities) is $600,000 12. 1.0% of Accounts Receivable is estimated to be uncollectible. Company uses the allowance method for estimating its uncollectible accounts. 13. Accrued salaries of $378,000 and accrued payroll taxes of 6.2%. 14. Had issued $2,000,000 of 4%, 10-year bond, dated 1/1/18 for $1,844,106 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB. Extra credit of 5 points if a complete amortization table (all 10 years) is included. Partial extra credit may be awarded. 15. One month has passed since the issuance of restricted stock. 16. Interest should be accrued on 30 days of long-term note payable, dated 12/2/23. 17. Income tax rate is 21%. FitLight Co. Trial Balance December 1, 2023 Acct Description DR CR 100 Cash 2,221,941 101 Accounts Receivable 1,446,726 102 Allowance for Doubtful Accounts 30,134 103 Equity Investments (Trading securities) 14,000 104 Fair Value Adjustment-ST 105 Inventory 1,178,104 106 Prepaid Insurance 115,250 107 Supplies 15,900 110 Debt Investments (Available for Sale) 154,900 111 Fair Value Adjustment-AFS 15,000 120 Land 600,000 121 Building 5,000,000 122 Accumulated Depreciation-Building 576,923 123 Machinery 850,000 124 Accumulated Depreciation Machinery 333,333 125 Equipment 250,000 126 Accumulated Depreciation Equipment 177,464 127 Truck 56,500 128 Accumulated Depreciation Truck 43,333 130 Right-of-use Asset - 175 Patents 75,000 201 Accounts Payable 908,553 202 Salaries Payable 734,000 203 Utilities Payable 49,870 204 Payroll Taxes Payable 108,000 205 Interest Payable 206 Dividends Payable 207 Note Payable -short term 175,000 208 Income Tax Payable 90,247 220 Lease Liability 221 Note Payable -long term 454,500 225 Bond Payable 2,000,000 226 Discount on Bond Payable 79,711 301 Common Stock, $1 par, $1M shares authorized; 235,000 shares issued and outstanding 235,000 302 APIC Common Stock 4,170,132 303 Retained Earnings 1,313,473 304 Unrealized Gains (Losses) Equity 15,200 305 Unearned Compensation 306 Treasury Stock 307 APIC Treasury Stock 401 Sales 5,519,706 500 Cost of Goods Sold 3,649,000 600 Compensation Expense 601 Salaries Expense 750,624 602 Bad Dept Expense 605 Payroll Tax Expense 97,000 606 Advertising Expense 132,000 607 Insurance Expense 32,000 608 Supplies Expense 17,800 609 Depreciation Expense 610 Amortization Expense 611 Utilities Expense 90,800 612 Miscellaneous Expenses 50,600 614 Interest Expense 47,812 615 Income Tax Expense 617 Realized Gains (Losses) 5,800 620 Unrealized Gains (Losses) Income Totals 16,940,668 16,940,668 Date Acct Description DR CR 1-Dec 101 Accounts Receivable 727,500 December 1: Recorded sales on account of $750,000, 3/15, net 45. Cost of inventory was $405,000. FitLight Co, Inc. uses the net method for accounting for sales. 500 Cost of Goods Sold 405,000 105 Inventory 405,000 401 Sales Revenue 727,500 2-Dec 125 Equipment 800,000 December 2: Purchased Equipment for $800,000, paying $350,000 down and signed a 8%, 2 year note, for the balance. This equipment will be depreciated using the double declining method over 9 years, and no salvage value. 100 Cash 350,000 207 Notes Payable, Long-Term 450,000 3-Dec 100 Cash 750,000 December 3: Collected $750,000 on outstanding accounts. 101 Accounts Receivable 750,000 4-Dec 306 Treasury Stock (30,000 @ $21) 630,000 December 4: Bought back 30,000 shares of stock for $21 per share. 100 Cash 630,000 5-Dec 201 Accounts Payable 855,000 December 5: Paid invoices of $855,000 to suppliers. The invoices related to inventory purchases that had been previously recorded. 100 Cash 855,000 6-Dec 305 Unearned Compensation 440,000 December 6: Issued 20,000 shares of restricted stock to its CFO. The stock has a fair value of $440,000. The service period related to this restricted stock is 4 years. Vesting occurs if the CFO stays with the company for 6 years. The par value of the stock is $1. 301 Common Stock 20,000 302 APIC, Common Stock 420,000 7-Dec 105 Inventory 736,960 December 7: Purchased inventory of $752,000 on account with terms 2/10 net 60. FitRight Co, Inc. uses the net method for its purchases. 201 Accounts Payable 736,960 8-Dec 100 Cash 727,500 December 8: Received payment related to sale on December 1. 101 Accounts Receivable 727,500 9-Dec 110 Debt Investments (Available-For-Sale) 517,000 December 9: Purchased debt investments, without the intention to sell in the near term, for $467,000, plus commissions of $50,000. 100 Cash 517,000 10-Dec 207 Note Payable, Short-Term 175,000 December 10: Paid off short-term note from 12/1 trial balanceplus interest of $1,000. 614 Interest Expense 1,000 100 Cash 176,000 11-Dec 201 Accounts Payable 398,000 December 11: Paid invoices of $398,000 to suppliers. The invoices related to inventory purchases that had been previously recorded. 100 Cash 398,000 13-Dec 100 Cash 1,125,000 December 13: Issued 45,000 shares of common stock at $25 per share 301 Common Stock 45,000 302 APIC, Common Stock 1,080,000 14-Dec 100 Cash 820,000 December 14: Collected $820,000 on Account. 101 Accounts Receivable 820,000 15-Dec 101 Accounts Receivable 965,150 December 15: Recorded sales on Account for $995,000, terms 3/10, net 30. Inventory cost was $583,000. 500 Cost of Goods Sold 583,000 105 Inventory 583,000 401 Sales Revenue 965,150 16-Dec 201 Accounts Payable 736,960 December 16: Paid invoice from 12/7. 100 Cash 736,960 17-Dec 105 Inventory 499,844 December 17: Purchased $510,045 inventory on account with terms 2/15, net 30. Maverick, Inc. uses the net method for its purchases. 201 Accounts Payable 499,844 18-Dec 100 Cash 530,000 December 18: Collected $530,000 on Account. 101 Accounts Receivable 530,000 19-Dec 101 Accounts Receivable 637,000 December 19: Recorded sales on account of $650,000, 2/15, net 60, cost of inventory was $495,000. 500 Cost of Goods Sold 495,000 105 Inventory 495,000 401 Sales Revenue 637,000 20-Dec 202 Salaries Payable 619,000 December 20: Paid $619,000 to employees. Amount had been previously accrued in November. 100 Cash 619,000 21-Dec Accounts Receivable 518,950 December 21: Recorded sales on account of $535,000, terms 3/10, net 30, cost of merchandise inventory was $325,000. Cost of Goods Sold 325,000 Inventory 325,000 Sales Revenue 518,950 23-Dec 100 Cash 281,250 December 23: Sold 12,500 shares of Treasury Stock for $22.50 per share. 306 Treasury Stock 262,500 307 APIC, Treasury Stock 18,750 24-Dec Note-Payable, Long-Term 84,000 December 24: Made payment of $100,000 towards long-term note payable of $454,500, which includes interest of $16,000 Interest Expense 16,000 Cash 100,000 27-Dec 303 Retained Earnings 600,000 December 27: Declared dividends of $600,000 206 Dividends Payable 600,000 28-Dec Allowance for Doubtful Accounts 25,000 December 28: Wrote off $25,000 in bad debt. 101 Accounts Receivable 25,000 31-Dec 130 Right-of-Use Asset 775,000 December 31: Signed a 6-year lease for machinery, fair value of $775,000. Equipment transfers to FitRight Co. at end of lease. Lease payments of $77,500 commence with signing of lease. 220 Lease Liability 775,000 220 Lease Liability 77,500 100 Cash 77,500 16,876,614 16,876,614 - 16,876,614 16,876,614 Additional Information: · Fitlight, Inc. was founded in Kentwood, Michigan in 2013 by Davenport University entrepreneurs. It is a private company with more than 40 employees. Its operations include the manufacturing of custom, high quality apparel with highly durable materials. · During 2023, the following additional transactions occurred: (Hint: these are already included in 12/1/23 TB but may be needed for the Statement of Cash Flows and calculation of Weighted Average shares of Common Stock). 1. Issued 35,000 shares of common stock, $1 par, for $700,000 on August 31, 2023. 2. Some equipment was sold (original cost $10,000, book value $3,000) for $8,800 (do not consider in your #2 AJE). Confirm with the 12/1 Trial Balance! 3. All amortization and depreciation are recorded once a year on December 31. 4. Market price per share of stock at 12/31/2023 was $27.00.