Adjusted Trial Balance Problems and Solutions  The following are comments that need to be taken into account when solving the project: 1. Kastalaloft ehf. have high expectations that the company's operations are taking off. The company therefore went into a share offering in the year 2021. The company sold shares with a nominal value of ISK 500,000. at a price of 4. The company's bookkeeper was not sure how to transfer the share capital increase in question and transferred it to a debit to a bank account and credit to a new accounting key among income which he explained as "Share capital income" . 2. Kastalaloft ehf. has used a closed fund (petty cash) to pay various incidental small expenses. On December 31, 2021, it was counted in the fund, there were 21,000 ISK in the box. and a note for the purchase of stamps and stationery in the amount of ISK 2,000. No explanation has been found that the fund seems to be missing ISK 2,000. 3. A new managing director took office on 1 December 2021. A termination of employment was agreed with the previous managing director and a retirement agreement was made with him. The agreement is such that Kastalaloft ehf. Pay him a salary for 3 months, ISK 1,525,000. in a month. The first payment will take place on January 1, 2022. Wage-related expenses are estimated at 15% . 4. During the creditors' reconciliations, it was revealed that an invoice from the consulting company Lookgood ehf. is not entered in the company's accounts. The invoice is for services in November and December in the year 2021 and is due on January 10, 2022. The amount of the invoice is ISK. 350,000.

5. Kastalaloft ehf. rent out part of the property. The tenant paid on April 1, 2021 ISK. 4,200,000 for rent for the next 12 months. The payment was booked debit bank and credit rental income.

6. Prepaid expenses are for the insurance for the year 2021 which were paid on 31.12.2020

B D E F G H 1 K K 0 Kredit 1 Vinnubla fyrir Kastalaloft ehf. - 31.12.2021 2 14.587.720 14.587.720 3 4 Heiti reiknings Debet Kredit 5 unadjusted trial balance 31/12 6 7 product sales 56.450.450 8 sold service 14.162.900 9 Rental income 4.200.000 10 Share capital income 2.000.000 Debet 0,000 Corrections and final entries Debet Kredit Income statement Debet Kredit Balance sheet 11 1.250.000 1.635.000 39.522.130 18.950.000 2.842.500 746.000 27.000 3.000.000 11 income from the sale of machinery 12 Interest income, bank 13 Purchase of goods / Cost of goods sold 14 Salary 15 Wage-related expenses 16 Market costs 17 Other operating expenses 18 19 Property maintenance 20 21 22 23 24 25 26 27 Interest expenses 28 29 30 Closed cash (petty cash) 31 Bank account 32 Prepaid expenses 33 Trade receivables 34 Impairment account of trade receivables 35 36 37 38 Inventories 39 Office space 40 Aggregate depreciation of office space 41 Machine 1 23.000 25.000 1.970.130 350.000 6.302.000 240.000 2.550.000 44.000.000 6.930.000 1.850.000 42 Aggregate depreciation of Machinery 43 Accounts payable 416.250 1.890.000 500.000 298.000 570.000 13 880.000 5.000.000 44 Accepted bills 45 Unpaid costs 46 Unpaid salary-related expenses 47 48 49 50 Long-term loan 1 (DKK 40,000) 51 52 Common stock 53 54 Retained earnings 55 56 57 58 59 60 61 62 63 64 65 25.735.160 122.157.760 122.157.760 0 0 B D E F G H 1 K K 0 Kredit 1 Vinnubla fyrir Kastalaloft ehf. - 31.12.2021 2 14.587.720 14.587.720 3 4 Heiti reiknings Debet Kredit 5 unadjusted trial balance 31/12 6 7 product sales 56.450.450 8 sold service 14.162.900 9 Rental income 4.200.000 10 Share capital income 2.000.000 Debet 0,000 Corrections and final entries Debet Kredit Income statement Debet Kredit Balance sheet 11 1.250.000 1.635.000 39.522.130 18.950.000 2.842.500 746.000 27.000 3.000.000 11 income from the sale of machinery 12 Interest income, bank 13 Purchase of goods / Cost of goods sold 14 Salary 15 Wage-related expenses 16 Market costs 17 Other operating expenses 18 19 Property maintenance 20 21 22 23 24 25 26 27 Interest expenses 28 29 30 Closed cash (petty cash) 31 Bank account 32 Prepaid expenses 33 Trade receivables 34 Impairment account of trade receivables 35 36 37 38 Inventories 39 Office space 40 Aggregate depreciation of office space 41 Machine 1 23.000 25.000 1.970.130 350.000 6.302.000 240.000 2.550.000 44.000.000 6.930.000 1.850.000 42 Aggregate depreciation of Machinery 43 Accounts payable 416.250 1.890.000 500.000 298.000 570.000 13 880.000 5.000.000 44 Accepted bills 45 Unpaid costs 46 Unpaid salary-related expenses 47 48 49 50 Long-term loan 1 (DKK 40,000) 51 52 Common stock 53 54 Retained earnings 55 56 57 58 59 60 61 62 63 64 65 25.735.160 122.157.760 122.157.760 0 0