ACCOUNTING-The following information pertains to Wisdom Company

The following information pertains to Wisdom Company for the year ending on December 31,1995 1.On April 1,the company purchased $ 10000 of 10% ,20 -year bonds of Seles Company.The bonds ,which were acquired at par value,pay interest semiannually on March 31 and September 30. 2.On November 1,the company borrowed $6000 from City Bank and signed a 90 -day ,12% note. 3.On July 31,the company paid $600 for advertisements to be run evenly over one year.A real account was debited. 4.On August 1,the company purchased a three – year fire insurance policy for $3 600 and debited a balance sheet account. 5.On October 1,the company received $900 from a tenant and credited a balance sheet account.The amount represents rent paid in advance for one year. 6.The company’s estimate of bad debts for the year is $2 450. 7.Depreciation was computed as $3 500 for the year. 8.As of December 31,employees have earned wages of $ 500 that the company has not paid or recorded. Instructions:prepare adjusting entries in general journal at December 31,1995

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