1 Question 1: Journal Entries and Adjusting Entries (27 marks) Requin Recore Carlos Nora graduated NAIT's culinary program and December. In January he started Sour Dough Demo Corp. that sells sourdough loaves and offers virtual online bread making lessons in for students to learn to 3 bake. The following are the transactions for the month of January his first month of operations. 4 below. Resp adjusti Gener Date 5 Transaction 9 1-Jan Sour Dough Demo Corp. took out a loan from the bank for $100,000. The loan requires principal repayments of $5,000 at the end of each month and 5% interest. 7 8 9 1-Jan Sour Dough Demo Corp. issued 6,000 common shares for $60,000 cash 10 11 2 3 5 1-Jan 1.In Sour Dough Demo Corp purchased 3 mixers and 3 industrial ovens for $62,000 cash. Sour Dough Demo Corp's accountant has determined that the baking equipment will all have a useful life of eight years and a residual value of $10,000. Sour Dough Demo Corp paid $8,400 for an insurance policy on the new baking equipment for the period Januar 2071 to December 11 223 The entire halance should he recorded se on scent and adineted at month A Cover Sheet Question 1 Journal Entries Question 1 Bonus Question 2 Income Statement Question 3 Closing Entries Que Calculation Mode: Automatic Workbook Statistics A29 Ursa Disabled Links to external workbooks are not supports and have been ded f1/30/2021 14 15 1-Jan Sour Dough Demo Corp paid $8,400 for an insurance policy on the new baking equipment for the period January 1, 2021, to December 31, 2022. The entire balance should be recorded as an asset and adjusted at month 1/1/20 16 end. 17 1/5/20 5-Jan Sour Dough Demo Corp purchased inventory on credit at a cost of $9,000. 9 O 1 6-Jan After a large social media campaign Sour Dough Demo Corp had 20 students pre-pay for vitual baking lessons January 15th and February 15th. Cash collected for the future services was $6,000. 1/6/20 2 1/18/20 18-Jan Sour Dough Demo Corp sold 250 loaves of sourdough for $5,500 cash, the cost of the inventory used in the sale was $1,800. 30-Jan Sour Dough Demo Corp paid for the inventory purchased on January 5th. 1/30/20 43 30-Jan Sour Dough Demo Corp paid for the inventory purchased on January 5th. 1/30/20 Adjusting items: 1/31/2 31-Jan Made the necessary month-end adjusting entry related to the depreciation of the baking equipment. 31-Jan Made the necessary month-end adjusting entry related to the insurance policy. 1/31/2 31-Jan Completed the January 15th lesson paid for on January 6th. The lessons completed was half the original deposit. 1/31/2