Question

The following information relates to the Wallstrom Company, a publisher of travel and sports periodicals, at the end of December 2017. The company’s accounting period follows a calendar year of January through December.

1. Employees are paid every Friday for the five-day week ending on that day. Salaries amount to $4,000 per week. This year, the company’s current operating year concluded on Tuesday, December 31, 2017.2. A note for $5,000 was received from a customer for a special one time sales transaction on April 1, 2017. The note is due in one year, plus interest at 6%.3. On September 1, 2017, Wallstrom borrowed $25,000 cash by signing a note payable due in one year at 6% interest.4. An insurance premium of $6,000 was paid on March 1, 2017, and was charged to Prepaid Insurance. The premium covers a 24-month period beginning March 1, 2017.5. On June 1, 2017, cash of $54,000 was received from subscribers (customers) for a 36-month subscription period beginning on that date. The receipt was recorded by a debit to Cash and a credit to Unearned Subscription Revenue.6. The Supplies account showed a balance of $5,000 at the beginning of 2017. Supplies costing $16,000 were purchased during 2017 and debited to the asset account supplies. Supplies of $3,000 were still on hand at December 31, 2017.

Required: prepare in journal entry form, the necessary year end December 31, 2017 adjustments based on the information above.

Answer 1