Accounting Problem
Instructions
Refer to Journal Enteries Part 1-4. (all journal enteries are for the year ended December 31, 2020). Using that information, complete the Adjustments and Adjusted Trial Balance ( split into Adjusted Trial Balance Part 1 and Adjusted Trial Balance Part 2.png
Journal Enteries
Trial Balance Unadjusted Trial Balance Adjusted At December 31, 2019 At December 31, 2020 Adjustments Trial Balance Debit Credit Debit Credit Debit Credit Debit Credit Cash & Equivalents 98,641 1,191,277 FV-NI Investments 400,650 Accounts Receivable - Trade 2,069,111 1,908,886 Accounts Receivable - Projects 1,155,000 Other Accounts Receivable Interest Receivable Allowance for Doubtful Accounts 63,254 63,254 Inventory 474,789 506,900 Inventory on Consignment 141,400 Prepaid Insurance 120,000 240,000 FV-OCI Investments 106,000 Contract Asset/Liability 157,699 Land 320,000 320,000 Building 3,058,199 3,058,199 Building - Accumulated Depreciation 78,721 78,721 Equipment 389,105 406,905 Equipment - Accumulated Depreciation 38,292 38,292 Intangible Assets 161,750 Intangible Assets - Accumulated Amortization Goodwill 675,000 675,000 Accumulated Impairment Loss - Goodwill Accounts Payable 525,000 1,077,205 Deferred Tax Liability HST Payable 19,100 159,800 Interest Payable 100,000 Dividends Payable Income Tax Payable Wages Payable 45,000 Notes Payable 250,000 2,500,000 4,000,000 Common Stock 1,908,199 1,908,199 Retained Earnings 727,144 1,857,279 Revaluation Surplus - OCITrial Balance Unadjusted Trial Balance Adjusted At December 31, 2019 At December 31, 2020 Adjustments Trial Balance Debit Credit Debit Credit Debit Credit Debit Credit Revenue from Long-term Contract (2019) 3,206,449 Revenue from Long-term Contract - Project #1 Revenue from Long-term Contract - Project #2 Revenue from Consignments Sales Revenue - Equipment 5,855,690 6,952,200 Dividend Income 13,500 Interest Income 350 Gain/ (Loss) on sale of truck Investment Income or Loss Unrealized Gain or Loss - OCI Cost of Goods Sold 3,717,400 4,413,200 Construction Expenses (2019) 2,360,100 Construction Expenses - Project #1 Construction Expenses - Project #2 055 on Impairment Equipment Rental (other expenses) 525,000 374,998 Equipment Repairs (other expenses) 96,400 125,000 Wages 659,000 708,880 Payroll Tax Expense 82,375 88,610 Interest Expense 68,750 Utilities 52,000 48,000 ncome tax expense Insurance Expense 160,000 120,000 Bad Debt Expense 23,056 Commission Expense Advertising Expense 4,500 Administration Expenses 90,095 90,095 Amortization Expense (other expense) Depreciation Expense (other expenses) 93,67831-Dec b Bad Debt Expense 23,696 Allowance for Doubtful Accounts 23,696 to record bad debts expense at year-end 31-Dec b allowance for doubtful accounts 12,036 Accounts Recievable 12,036 To write off the outstanding balance of Cooper Gallery 31-Decd Insurance Expense 40,000 Prepaid Insurance 40,000 31-Dec e Cost of Goods Sold 11,520 Inventory 11,520 31-Dec f Accounts Recievable 146,372 Advertising Expense 3,182 Commision Expense 9,546 DOGS 124,600 Inventory on Consignment 124,600 Revenue from consignment sales 159,100 31-Dec g |Depreciation Expense 76,455 Equipment - Accumulated Depreciation 76,455 to record 2020 depreciation on equipment 31-Dec g Depreciation Expense 50.886.50 Building - Accumulated Depreciation 60,886.50 to record 2020 depreciation on buildingDATE ACCOUNTS Debit Credit 31-Dec a Interest Recievable 583 Interest Revenue 583 31-Dec c |FV-NI Investments 28,600 Investment Income or Loss 28,600 31-Dec j Cash 112,500 FV- OCI Investment 112,500 to record the sale 31-Dec j Unrealized Gain or Loss - OCI 6,500 Retained Earnings 6,500 to record actual gain/loss 31-Dec j FV - OCI Investment 6,500 Unrealized Gain or Loss 6,500 to adjust to fair value 31-Dec k Interest Expense 110,000 Interest Payable 110,000 to record interest accured at December 31, 2020 31-Dec L Interest Expense 625 Interest Payable 625 31-Dec H Vencile (new) 12,000 Accumulated depreciation 7,150 Vehicle (old) 15,600 Cash 3,000 Gain on Trade 55031-Dec i Accumulated Depreciation 7,188 Buildings 7,188 to record depreciation incurred during 2020 Buildings 3,188 Revaluation Surplus (OCI) 3,188 31-Dec M Contract Asset/Lliability 2,074,500 Cash 2,074,500 to record costs incurred during the period 31-Dec M Accounts Recievable 2,000,000 Contract Asset / Liability 2,000,000 to record progress billings during the year 31-Dec M Cash 1,245,000 Accounts Recievable 1,245,000 to record cash collections during the year 31-Dec M Construction Expenses - Project 1 2,074,500 Contract Asset/Liability 1,307,607 Construction Revenue 3,382,107 31-Dec M |Contract Asset/Lliability 1,583,199 Cash 1,583,199 to record costs incurred during the period Accounts Recievable 1,500,000 Contract Asset / Liability 1,500,000 to record progress billings during the yearDATE ACCOUNTS Debit Credit 31-Dec Cash 1,100,000 Accounts Recievable 1,100,000 to record cash collections during the year 31-Dec M Construction Expenses - Project 2 1,583,199 Contract Asset/Liability 532,751 Construction Revenue 2,115,950 31-Dec n Administration Expenses Wages Payable 10,906 31-Dec 0 Loss on Impairment Goodwill 73,000 to record impairement on Goodwill 31-Dec q Retained Earnings Dividends Payable 175,000.00 to record declaration of dividends 31-Dec p Amortization Expense (other expense) 24,342 Accumulated Amortization - Patent 11,667 Accumulated Amortization - Trademark 12,675
