Question

"The following (4) situations apply to Howard Electronics, Inc. for the year ended 12/31/23. INSTRUCTIONS - Make any adjusting entries required at 12/31/2023 for each situation. Financial Statements are prepared annually only. Provide an explanation for each entry showing all computations."

1. The company borrowed $50,000 at 6% interest on November 1, 2023, with principal and interest
due on May 1, 2024. 2.
				On September 1, 2023, the company received a $15,000, nine-month note bearing interest at an
				annual rate of 9% from Hendrix, Inc. for services provided. 3.
				On August 1, 2023, the company paid $36,000 for the annual rent on a warehouse. The rent
				expense account was debited when the cash was paid. 4.
				On January 1, 2023, supplies had a beginning balance of $5,800. Purchases were made
				on April 15 and July 25 for $4,500 and $5,500 respectively and debited to Supplies.
				On December 31, supplies on hand were $2,300.

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.