Prepare the December 31 adjusting journal entries for Ortiz Company. Data for the end of the year adjustments are as follows:

Explanation
The general journal is the book where entries are initially made relating to financial transactions entered into by the company.

The first journal entry is a debit to work in process inventory and a credit to factory overhead of $7,780 for the applied factory overhead.

The second journal entry is a debit to interest receivable and a credit to interest revenue $435 for the accrual of interest income earned.

The third journal entry is a debit to bad debts expense and a credit to allowance for doubtful accounts of $3,876 for the adjustment of estimated uncollectible accounts.

The fourth journal entry is a debit to office supplies expense and a credit to office supplies of $750 for the consumed office supplies.

The fifth journal entry is a debit to factory overhead subsidiary account on factory supplies expense and a credit to factory supplies of $4,160 for the consumed factory supplies.

The sixth journal entry is a debit to factory overhead subsidiary account on insurance expense and a credit to prepaid insurance of $3,200 for the expired portion of insurance for factory building and equipment.

The seventh journal entry is a debit to factory overhead subsidiary account on depreciation expense-factory building and a credit to accumulated depreciation-factory building of $6,800 for the depreciation of the factory building.

The last journal entry is a debit to factory overhead subsidiary account on depreciation expense-factory equipment and a credit to accumulated depreciation-factory equipment of $4,200 for the depreciation of the factory equipment.