The Records of McGarrett Corp.show the Following Information

Essay

The records of McGarrett Corp.show the following information:
(a)Purchased Machine B used in the factory for $450,000 on July 1,2010.Machine B has an estimated useful life of 12 years and a residual value of $30,000.McGarrett uses straight-line depreciation.
(b)Sales for 2013 amounted to $4,000,000,including $600,000 of sales on credit.Bad debt losses are estimated based on actual experience to be .25% of credit sales.
(c)The dollar value of office supplies inventory at the beginning of 2013 equaled $600.During 2013,office supplies costing $8,800 were purchased.This amount was debited to office supplies expense.The dollar value of the ending inventory was determined to be $400.The January 1 balance of $600 still appears as the balance in the office supplies inventory account.
(d)On July 1,2013,the company paid a three-year insurance premium in the amount of $2,160.This amount was debited to insurance expense.
(e)On October 1,2013,the company paid rent on some leased office space.The payment of $7,200 cash was for the following six months.The $7,200 payment was debited to rent expense
Prepare journal entries to adjust the books of McGarrett Corp.at December 31,2013.