Problem 1. In conjunction with your firm's examination of the financial statements of Piston Company as of December 31, 2018, you obtained from the voucher register the information shown in the working paper below. Item Entry Voucher Ref. No. Date Description Amount Account Charged 1 12.18.18 12-202 Supplies, purchased FOB destination, 12.15.18; 20,000 Supplies on hand received, 12.17.18 2 12.18.18 12-204 Auto insurance, 12.15.18 to 24,000 Prepaid insurance 12.15.19 12.21.18 12-206 Repair services; received 24,000 Repairs and 12.20.18 maintenance 4 12.21.18 12-214 Merchandise shipped FOB shipping point, 11.20.18; 17,000 Inventory received, 12.4.18 5 12.21.18 12-219 69,000 Salaries and Payroll, 12.6.18 to 12.20.18 (12 working days) 6 12.26.18 12-221 5,000 Subscription to tax reporting service for 2019 wages Dues and subscription expense Utilities expense Utilities for December 2018 29,000 7 12.28.18 12-230 12.28.18 12-234 8 Merchandise shipped FOB destination, 12.24.18; 111,500 Inventory received, 1.2.19 9 12.28.18 12-243 Merchandise shipped FOB destination, 12.26.18; 84,000 Inventory received, 1.3.19 10 01.02.19 01-001 Legal services, received 46,000 Legal and 12.28.18 professional expense 11 01.02.19 01-002 Medical services for employees 25,000 Medical expense for December 2018. 12 01.05.19 01-003 Merchandise shipped FOB Inventory shipping point, 12.29.18; 55,000 received 1.4.19 13 01.10.19 01-004 Payroll, 12.21.18 to 01.05.19 72,000 Salaries and wages 14 01.10.19 01-005 (12 working days in total, 4 working days in January) Merchandise shipped FOB shipping point, 1.2.19; received, 1.5.19 64,000 Inventory 18 01.12.19 01-006 Manufacturing royalties, Dec. 39,000 Manufacturing 2018 costs 3 16 01.12.19 01-007 Merchandise shipped FOB destination, 1.3.19; received, 38,000 1.10.19 Inventory 17 01.13.19 01-008 Maintenance services, received 9,000 1.9.19 Repairs and maintenance Interest expense 18 01.14.19 01-009 30,000 Interest on bank loan, 10.12.18 to 1.10.19 19 01.15.19 01-010 Manufacturing equipment, 254,000 Machinery and installed on 12.29.18 equipment Dividends 20 01.15.19 01-011 Dividends declared, 12.15.18 160,000 payable Accrued liabilities as of December 31, 2018 were as follows: Accrued payroll 48,000 Accrued interest payable 26,667 160,000 Dividends payable Accrued royalties payable 39,000 The Accrued payroll, Accrued interest payable, and Accrued royalties payable accounts were reversed on January 1, 2019. Required: Prepare adjusting entries as of December 31, 2018. What is the amount of unrecorded liability as at December 31, 2018?