Acct 210 F21 Assignment 1(1).pdf (page 1 of 21 Search Highlight Rotate Markup Search You are the accountant with Udder Delights Inc. (UD) which is a new company that sells vegan cheese products. The business is owned and operated by Humphry Bovine. Humphry has been so busy that he hasn't had any time to complete his Financial Statements as of and for the 11 months ended November 30, 2021. Humphry's bank manager has threatened to cancel Udder Delight's bank loan (due approximately two years from now) If he does not receive an Income Statement showing the company's gross profit and net income by next week. Humphry started to make adjustments and corrections but simply ran out of time. He assembled the attached worksheet and handed you the following information he thought you might need. (a) No depreciation has been recorded on the equipment. The equipment has a useful life of 10 years at which time it is estimated to have a resale value of $700. Udder will record an entire year of depreciation in the first year (b) Udder became a GST registrant during the year. As food products are PST and GST exempt neither tax is charged to their customers. After registering, Udder purchased equipment for $3,570 + PST $250+ GST $180, for a total of $4,000. Equipment was debited for $4,000. Udder wants you to confirm that the accounting was correct and if not, correct it. (c) Udder Delights recently signed an agreement with the "Charley the Cheese" Store to supply them with Ticklemore and Wookey Hole vegan cheese. The contract is worth $50,000 and deliveries will commence in February 2022. Udder Delight's received and cashed a $7,500 cheque from the store in November 2021 in respect of this contract. The cash receipt was recorded as part of sales revenue. 1 (d) The rent is for two years in total starting January 1, 2021, with a total cost of $16,667 + GST $17,500. The rent was fully expensed at the time of purchase. le) The bank loan was obtained January 1, 2021, at an annual rate of 6%, with the principal due at maturity in three years. The last interest payment made was on August 31, 2021 to the insurance policy is for the 12 months ending January 31, 2022. There is no GST or PST on the insurance Final campai Assignments par & Geek W For the 11 months onded November 30, 2021 3 5 Account Name 5 Cash 7 Accounts Receivable 8 GST Receivable 9 Inventory Lo Prepaids 11 Equipment 12 Accumulated Depreciation 13 Accounts Payable 14 Accrued Liabilities 15 GST Payable 16 Uneamed Revenue 17 Bank Loan 18 Share Capital 19 Retained Eamings 20 Sales Revenue 21 Cost of Goods Sold 22 Salaries Expense 23 Rent Expense 24 Depreciation Expense 25 Miscellaneous Expense 26 Insurance Expense 27 Interest Expense 28 Totals 29 30 31 32 33 34 35 36 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Helpful hic Entries in ("must be linked to Sheet B-Adjusting Entries) (must be crossed added using Excel Debit Credit Debit Credit Debit Credit 7,000 7,000 20,000 20,000 0 39,000 39,000 0 93.000 8.461 84,539 0 15,000 15000 0 0 0 100.000 100000 17.000 17000 0 0 149,000 149000 35,000 35,000 48,000 48,000 17.500 17,500 8461 8.461 5,500 5,500 12,000 12.000 4,000 4,000 281,000 281,000 8,461 8.461 281,000 281,000