Chapter 10, Problem 5CP

To determine

Introduction: An adjusting journal entry is an adjustment recorded at the end of an accounting period to an asset or liability account and related expense or income accounts to record business events that occurred in the period but were not recorded. In other words, it is an end-of-period adjustment made to record prepaid expenses, unearned income, accrued expenses, accrued revenue, and non-cash activities. All of these different adjustments arise from business events that took place in the current period but were not actually recorded in the accounting system.

To calculate: Record adjusting journal entries for the year ended December 31, 2018.