28.700 2.000 41.000 11,000 412.600 15 C Account cele Supplies Pent Property Plant and Equipment Accumulated Depreciation Accounts Payable Salaries Payabile Los Tenn Debt Share Capital Retained Emin Revenues 5 5 S $ 5 210 16.500 3.00 170200 300.000 1960 214.000 COGS Sale per Admin & Co entfuper 168000 23.500 14.000 SOO Depreciation 17.00 The following events biok place during the mouth of September 2020 1 - The company paid all outstanding salaries payable to their employees 2- The company received 544.000 as an advanced payment for two parages to be built and installed on a residential property. Clarence Group started to build the shed and the installation is scheduled for October 19 2020 3- The company used 65.000 worth of supplies during the month of September. The purchasing manager also purchased 28.500 worth of supplies 4 - The total salaries expense for the employces for the month of September was 5.200. The president of the company also provides you with the following information for Clarence Group: 5. The company's debt carries an interest rate of 23% per year. The meest is payable on a quarterly basis en February 26, May 31". August 31. November 30 6- The prepaid expense account September 15, 2000, presented a prepaid asset for 3 mesefret 7-Due to the timing of the payroll, S1,200 of the wages for the month have not been paid asut September 31r. 2020 Required: Prepare the journal entries for the month of September to account for the events listed above as well as any adjusting entries that may be needed based on the additional information provided by the president of the company marks available) NOTE: Omic explanations. Use the table previded in the Ward document when answering this part of the question. (Please put your answer in the Word document provided) Required: b) When you look at item 16 from the problem above: 6- The proped expense account on September 1, 2020. represented a prepared asset for 3 monks of rent. Discuss how this item would be treated differently the company adopted cash accounting instead of accrul accounting Also, discuss why you believe that the standard settes for ASPEnd IFRS require companies to use Accrual accounting instead of cash accounting to report their netice. Be sure to your respong the context of the rent example (7marks available) Clarence Group is a company that manufactures sheds and small garages for residential houses. Their trial balance on September 1", 2020 is as follows: Balance - Credit $ $ $ $ $ Balance - Debit 28,700 8,000 43,000 11,000 412,600 Account Cash Accounts Receivable Supplies Prepaid Rent Property Plant and Equipment Accumulated Depreciation Accounts Payable Salaries Payable Long-Term Debt Share Capital Retained Earnings Revenues COGS Salaries Expense Administration & Selling Costs Rent Expense Interest Expense Depreciation $ $ $ $ $ $ $ 71,800 16,900 3,700 170,200 100,000 156,860 214,000 $ $ $ $ $ $ 165,000 23,500 14,000 8,500 1,960 17,200 The following events took place during the month of September 2020: 1 - The company paid all outstanding salaries payable to their employees. 2 - The company received $44,000 as an advanced payment for two garages to be built and installed on a residential property. Clarence Group started to build the shed and the installation is scheduled for October 15th, 2020. 3 - The company used $65,000 worth of supplies during the month of September. The purchasing manager als purchased $28,500 worth of supplies. 4 - The total salaries expense for the employees for the month of September was $8,200. The president of the company also provides you with the following information about Clarence Group: 5 - The company's debt carries an interest rate of 2.3% per year. The interest is payable on a quarterly basis on February 28th, May 31s, August 31st, November 30th. 6- The prepaid expense account, on September 1st, 2020, represented a prepaid asset for 3 months of rent. 7- Due to the timing of the payroll, $1,400 of the wages for the month have not been paid as at September 30th, 2020. Required: a) Prepare the journal entries for the month of September to account for the events listed above as well as any adjusting entries that may be needed based on the additional information provided by the president o the company. (8 marks available) NOTE: Omit explanations. Use the table provided in the Word document when answering this part of the question. (Please put your answer in the Word document provided) Required: b) When you look at item #6 from the problem above: 6- The prepaid expense account, on September 1", 2020, represented a prepaid asset for 3 months of rent. Discuss how this item would be treated differently if the company adopted cash accounting instead of accrual accounting. Also, discuss why you believe that the standard setters for ASPE and IFRS require companies to u Accrual accounting instead of cash accounting to report their net income. Be sure to frame your response using the context of the rent example. (7 marks available) (Please put your answer in the Word document provided) 28.700 2.000 41.000 11,000 412.600 15 C Account cele Supplies Pent Property Plant and Equipment Accumulated Depreciation Accounts Payable Salaries Payabile Los Tenn Debt Share Capital Retained Emin Revenues 5 5 S $ 5 210 16.500 3.00 170200 300.000 1960 214.000 COGS Sale per Admin & Co entfuper 168000 23.500 14.000 SOO Depreciation 17.00 The following events biok place during the mouth of September 2020 1 - The company paid all outstanding salaries payable to their employees 2- The company received 544.000 as an advanced payment for two parages to be built and installed on a residential property. Clarence Group started to build the shed and the installation is scheduled for October 19 2020 3- The company used 65.000 worth of supplies during the month of September. The purchasing manager also purchased 28.500 worth of supplies 4 - The total salaries expense for the employces for the month of September was 5.200. The president of the company also provides you with the following information for Clarence Group: 5. The company's debt carries an interest rate of 23% per year. The meest is payable on a quarterly basis en February 26, May 31". August 31. November 30 6- The prepaid expense account September 15, 2000, presented a prepaid asset for 3 mesefret 7-Due to the timing of the payroll, S1,200 of the wages for the month have not been paid asut September 31r. 2020 Required: Prepare the journal entries for the month of September to account for the events listed above as well as any adjusting entries that may be needed based on the additional information provided by the president of the company marks available) NOTE: Omic explanations. Use the table previded in the Ward document when answering this part of the question. (Please put your answer in the Word document provided) Required: b) When you look at item 16 from the problem above: 6- The proped expense account on September 1, 2020. represented a prepared asset for 3 monks of rent. Discuss how this item would be treated differently the company adopted cash accounting instead of accrul accounting Also, discuss why you believe that the standard settes for ASPEnd IFRS require companies to use Accrual accounting instead of cash accounting to report their netice. Be sure to your respong the context of the rent example (7marks available) Clarence Group is a company that manufactures sheds and small garages for residential houses. Their trial balance on September 1", 2020 is as follows: Balance - Credit $ $ $ $ $ Balance - Debit 28,700 8,000 43,000 11,000 412,600 Account Cash Accounts Receivable Supplies Prepaid Rent Property Plant and Equipment Accumulated Depreciation Accounts Payable Salaries Payable Long-Term Debt Share Capital Retained Earnings Revenues COGS Salaries Expense Administration & Selling Costs Rent Expense Interest Expense Depreciation $ $ $ $ $ $ $ 71,800 16,900 3,700 170,200 100,000 156,860 214,000 $ $ $ $ $ $ 165,000 23,500 14,000 8,500 1,960 17,200 The following events took place during the month of September 2020: 1 - The company paid all outstanding salaries payable to their employees. 2 - The company received $44,000 as an advanced payment for two garages to be built and installed on a residential property. Clarence Group started to build the shed and the installation is scheduled for October 15th, 2020. 3 - The company used $65,000 worth of supplies during the month of September. The purchasing manager als purchased $28,500 worth of supplies. 4 - The total salaries expense for the employees for the month of September was $8,200. The president of the company also provides you with the following information about Clarence Group: 5 - The company's debt carries an interest rate of 2.3% per year. The interest is payable on a quarterly basis on February 28th, May 31s, August 31st, November 30th. 6- The prepaid expense account, on September 1st, 2020, represented a prepaid asset for 3 months of rent. 7- Due to the timing of the payroll, $1,400 of the wages for the month have not been paid as at September 30th, 2020. Required: a) Prepare the journal entries for the month of September to account for the events listed above as well as any adjusting entries that may be needed based on the additional information provided by the president o the company. (8 marks available) NOTE: Omit explanations. Use the table provided in the Word document when answering this part of the question. (Please put your answer in the Word document provided) Required: b) When you look at item #6 from the problem above: 6- The prepaid expense account, on September 1", 2020, represented a prepaid asset for 3 months of rent. Discuss how this item would be treated differently if the company adopted cash accounting instead of accrual accounting. Also, discuss why you believe that the standard setters for ASPE and IFRS require companies to u Accrual accounting instead of cash accounting to report their net income. Be sure to frame your response using the context of the rent example. (7 marks available) (Please put your answer in the Word document provided)