Answer:
Since the requirements are missing, I believe that you need the adjusting entries:
1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
Dr Depreciation expense 375 ($18,000/4 x 1/12)
Cr Accumulated depreciation, equipment 375
2. At the end of January, $3,500 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $18,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.
Dr Bad debt expense 6,250
Cr Allowance for doubtful accounts 6,250
3. Accrued interest revenue on notes receivable for January.
Dr Interest receivable 75 ($18,000 x 5% x 1/12)
Cr Interest revenue 75
4. Unpaid salaries at the end of January are $33,100.
Dr Salaries expense 33,100
Cr Salaries payable 33,100
5. Accrued income taxes at the end of January are $9,500
Dr Income tax expense 9,500
Cr Income tax payable 9,500
