Bob’s Chocolate Chips and More, a bakery specializing in gourmet pizza and chocolate chip cookies, started business on October 1, 2011. The following transactions occurred during the month.

1. The company issued 6,000 shares of common stock at $15 per share.
2. The company acquired office equipment on October 1 for $30,000 cash. The equipment was used for administrative tasks.
3. The company purchased $15,000 of ingredients on account.
4. Rent is $500 a month. On October 1, the company paid rent for October, November, and December.
5. The company sold pizza and cookies for $35,000. The transaction was a credit sale. The pizza and cookies cost $9,000 to make.
6. The company paid salaries totaling $5,200.
7. The company collected $26,000 of the amount owed by customers.
8. The company paid $10,000 for ingredients previously purchased on account.
9. The company paid $800 for utilities on its corporate headquarters and $400 for advertising.
10. The company borrowed $12,000 from the bank for additional working capital requirements. The company repaid $3,000 by month-end.
11. The company paid $500 cash dividends to shareholders during October.
12. The company received an order from a customer for two luncheons. The sales price for the order was $20,000 ($10,000 for each luncheon). The customer paid $20,000 in advance for the order.

Adjusting Entries
Assume that the company has a monthly accounting cycle. Use the following information to construct the corresponding adjusting entries on October 31.
(a) One month of the company’s rent expired during October.
(b) The company’s equipment originally cost $30,000 and was expected to benefit the company for 5 years. Straight line depreciation method is used. Assume a $5,000 salvage value.
(c) The company’s employees earned $400 during the last week of October that will be paid on November 6.
(d)