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habebe AaBb AaBbCcDc ABCD AaBbccc ADD ABCD daBoCcbe ... Emphasis Heading Normal Strong Subtitle Title 1 No Spac... Subtle Em... agraph Styles The Unadjusted Trial Balance columns of the partial worksheet which follows the exam includes the activity for 2020 but does not include any adjusting entries. The following information is given to you for the purpose of making year end adjusting entries The tax rate for the current and prior periods is 30% You may need to add accounts to the worksheet, space is provided for that purpose. Add any new accounts in the approximately correct location. Please number your worksheet adjustments to correspond with the information below. Operating expenses such as insurance, advertising wages and maintenance are included in a single "operating expense" account. Here is the adjustment information: 1. Prepaid expenses include a one-year insurance contract in the amount of $1,800 paid in July of 2020. It covers the period August 1, 2020 to July 31, 2021 2. A computer repair for $2,000 was made in December 2019, but the bill was not received until February of 2020 at which time it was recorded as an expense. 3. The equipment was purchased on Jan 1, 2018 and is depreciated on a straight-line basis over 10 years with a $15,000 salvage value. 4. Bad debts expense was recorded each month as a percent of sales and several accounts were written off during the year. A year end aging schedule requires an allowance of $4,000 5. You received product that was shipped to you in December of 2020. It was purchased on credit The manufacturer has given you a price reduction of $500 due to surface blemishes. The bill has not yet been paid 6. The ending inventory is valued at $22,000. Prepare the cost of goods sold account 7. The Accounts Payable includes a bill for 5,000 Euros that was recorded as a purchase when the cost of a Euro was $1.35. The bill remains unpaid at the end of the year. On Dec 31, 2020, a Euro can be purchased for $1.42 8. Dividends in the amount of $10,000 were declared on Dec 31, 2020 but will not be paid until January 2021. No entry has been recorded Required: Complete the attached worksheet. Enter the adjustments and key them to agree with the information number. Add any accounts you need in the appropriate location. Calculate and enter the balances for the adjusted trial balance Complete the income statement and retained earnings Make no adjustments directly to beginning retained earnings, use nominal accounts for any adjustments to retained earnings. *3 le Page Layout D Rout Art La Horre X. La Coy WP Dipoane Gene + Conde De IU My Come A Vi G H 1 Version 1 Adusbed B Dec 31, 2020 De Income statement 2020 D: Remed E Dec 21, 2020 Di Cash Accounts receivable 1 Allowance for bad debes mentory 9. Prepaid Expenses 10 Eupert 1 Accumulated deprecation Accounts payat Income tax payable 11 15 Common stock 16 Retained earnings. 11/19 17 B No Palace Red Unadjusted TB Armor Dec 31, 2020 De CI Us 79860 00.000 2.000 30 500 13.200 215,000 40 000 42000 4.000 20000 100.000 Saison 4AD 300 250.000 4000 3.000 103000 21 22 3 Puchares 24 25 Freight in 25 Purchased 27 Operating expenses 20 25 Fieto 20 Depreciation Badeb espone Exchange gan 33 Provision for tax Totab 35 35 TE 13,000 130 777000 777900 WS Tebeth DELL