Give the adjusting entry for each situation that should be recorded for Balikatans Store on Dec.

31, 2008.

Balikatan Store is completing the accounting process for the year just ended, Dec. 31, 2008. The transaction in 2008 have been journalized and posted. The following data with respect to adjusting entries were available. 1. Office supplies inventory at January 1, 2008, was 2,500. Office supplies purchased and debited to office supplies inventory during the year amounted to 6,000. The year-end inventory showed 3,000 of supplies on hand. 2. Wages earned on Dec 2008, unpaid and unrecorded on December 31, 2008, amounted to 27,000. The last payroll was December 28; next payroll will be January 6, 2009 3. Three fourths of the basement of the store is rented for 11,000 per month to another merchant, Kano Enterprises. Kano sells comparable, but not competitive merchandise. On November 1, 2008, the store collected six months rent in advance from Kano in the amount of 66,000, which was credited in full to rent revenue when collected. 4. The remaining basement space is rented to Gan Shop for 5,200 per month, payable monthly. On December 31, 2008, the rent for November and December was not collected or recorded. Collection is expected on January 10, 2009. 5. Delivery equipment that cost 300,000 was being used by the store. The equipment was estimated to have a useful life of four years and a residual value of 6,000 at the end of four years. Assume depreciation for a full year for 2008. The asset will be depreciated evenly over its useful life. 6. On July 1, 2008, a two year insurance premium amounting to 30,000 was paid in cash and debited in full to Prepaid Insurance. Coverage began on July 1, 2008. 7. Balikatan operates a repair shop to meet its own needs. Also, the shop does repairs for Kano. At the end of December 31, 2008, Kano had not paid for repairs completed amounting 7,500. This amount has not been recorded as Repairs Shop Revenue. Collection is expected on January 2009.

Prepare the journal entries to record the following transactions of E-Computer Sales. Sept 2 Purchased merchandise priced at 47,000 on credit, terms 1/15, n/30, F.O.B., the sellers factory. Sept 3 Sept 3 Sept 4 Purchased a new computer for office use on credit for 100,000 Sold merchandise on credit; terms 2/10, 1/30, n/60; 29,000 Paid 2,250 cash for freight charges on the shipment of merchandise purchased on September 2 Sept 8 Sept 10 Sept 12 Sold merchandise for cash, 4,700 Purchased merchandise on credit; terms 2/10, n/30; 24,600 Received a 4,000 credit memorandum for merchandise purchased on September 10 and returned for credit Sept 19 Sept 22 Sold merchandise on credit; term 2/10, n/30; 24,600 Issued a 335 credit memorandum to customer who had returned a portion of the merchandise purchased on September 19 Sept 23 Sept 24 Purchased office supplies on credit, 2,950 Received a credit memorandum of 700 for unsatisfactory office supplies purchased on September 23 and returned for credit Sept 25 Sept 29 Paid for the merchandise purchased on September 10 The customer who purchased merchandise on September 3 paid for the purchase of the date Sept 29 Oct 1 Received payment for the merchandise sold on September 19 Paid for the merchandise purchased on September 2