Accounts payable 470,000 Accounts receivable 2,900,000 Accrued liabilities 778,000 Accumulated depreciation-plant and 60,000 equipment Advertising expense 820,000 Allowance for doubtful accounts 64,000 Bad debt expense 40,000 Bonds payable 2,600,000 Cash 6,800,000 Common shares, 25,000 no-par shares issued 7,000,000 Cost of goods sold 1,540,000 Goodwill 5,800,000 Intangible assets 1,560,000 540,000 Interest expense Inventory Land Office expense Office supplies Plant and equipment 940,000 6,680,000 1,240,000 14,000 514,000 Prepaid insurance 240,000 Retained earnings 13,656,000 Salaries and wages expense Sales 3,400,000 8,400,000 The Controller has provided the following information for year-end: 1. Gould uses the percentage-of-receivables method to calculate the bad debt provision each year. Gould has estimated this allowance should be $80,000 at the end of the year (at December 31, 2021). HINT: An allowance for doubtful accounts is a contra asset account on the balance sheet representing managements' estimates of uncollectible accounts. An adjustment to the allowance account on the balance sheet requires an offsetting adjustment to the bad debt expense account on the income statement. 2. During the last quarter of 2021, an additional 1,000 shares were issued for cash at $400 per share. The accounting for this entry was missed so Gould needs to record this transaction. 3. The prepaid insurance account relates to an amount paid for a 12-month fire insurance policy. The policy was paid on August 1, 2021. 4. A year end count of office supplies was completed. Office supplies on hand are $11,200. 5. A dividend of $1.00 per share was declared on December 15. This has not yet been recorded. (Gould records dividends declared with a debit to a dividends account. This account is closed at year end to retained earnings). Payment is anticipated 60 days following declaration of the dividends. 6. The plant and equipment were acquired on January 1, 2018 and were being amortized on a straight-line basis over 20 years with a residual value of $114,000. As of January 1, 2021, Gould revised the estimated residual value of the building and equipment to $140,000 and the remaining useful life to 10 years (total useful life of 13 years, with 3 years already depreciated). Depreciation has not yet been recorded for 2021. 7. Gould paid $696,000 for advertising in magazines for the period March 1, 2021 to March 1, 2022. The full amount was recorded as advertising expense. 8. Employees earned $44,000 during December that have not yet been paid or recorded. This amount is expected to be paid January 5, 2022. 9. Gould's plan for expansion to increase the number of boutiques in the year by 200 stores, was financed August 1, 2021, with the issuance of 11% par value bonds in the amount of $1,200,000, maturing on July 31, 2023.. The original amount financed has been correctly recorded. Interest was paid and recorded on April 1 and October 1. 10. Gould received $200,000 from a customer midway through the 2021 year and is required to deliver goods to the customer by or on March 31, 2022. The entry for the deposit was recorded as Sales. 11. Gould plans to produce a film called 'Planet Ocean', aimed at raising awareness of oceanic health. On April 1, 2021, Gould paid an amount of $100,000 to photographer Yann Bertand for his services to be provided in 2022. The transactional entry was recorded as a debit to Land.