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Greenchic Company ("Greenchid) is nie sond hand shop that matches sellers and buyers of fashion good. The Company charges beste byens on the ansactie peices Fors Eamed and receives payment method the Company is website to com Advertising Rexto The company is my and progres dessing entries annually on 31 December. Bei is the one and 31 December 2013 De 5 211 C s 06723 1.720 7.500 15 $10.00 45200 Cash Accounts Receivable Citrice Supplies Poradna % 2-year Note Receivable Idee Deer 3002 Fixtures Machine Accumulated De Machine -year Note Payabled on 31 December 2013 Accounts Payable lacate Taxes Payable Interest Payable Share Capitale 52 persuare) Renda Forsamed Advertising Review Office Supplies Expense Depreciation Fee Machine Salaries Expense Expen Interest Intrance Expen Kent Lixpense Income Taxes TOTAL 00 WOON 45227 17.500 900 000 35 872 500 83.500 2910 18.00 12000 2200 37.500 37.500 LI? 1,960,812 Indomiting this c) Income taxes expense for the year and $55.000 Thement is one in March 2002 Machine is deprecated in the line chat or 2 years with real value. The lastusting entry was made the Page 2 MILIO 2013 S1 TV Total amount of transactie in December 5100.000. The fees camadas collected and needed (4) There is an accrued paidat de December the amount of 535,000 (5) Office supplies clande 31 December 2012152.000 (9) On 30 December 2001, Gronchic signed a contact with Company for them to atvertise in Greenchic's website from 1 to Fear0 Total vertining fee is $200,000 and Blue Company will pay this only In November Greenchicked her 2,000.00 per le but no recoed wa made On 31 December Giesenchie declared and paid divided at $2.1 per all the bed shares but no entry was made c) Greenchi bought a thinnelan 1 Osober 2012 (10) On 1 may 2021. Grochicone 515.00 Company by a receivable 6% al interest rate. The Company love the principal and all score interests the maturity date in 2022. No adjusting trend all the cred interest of (11) On 1 January 2021, Gronchic howed by a year note payable at inmal interest rate. Interest waspadaly 30 31 Desember. The first interest payment was made and collectie de ince October 2021. On December, the Company maleta patut this was accorded Required (a) Prepare the necessary adjusting entries on 31 December 2021. Explanations and workings are NOT required. Use the account titles given in the Trial Balance or create new accounts where appropriate. If any event does not require adjustment,stare "No entry and No explanation is required (46 mars (b) Prepare closing entries to cliente the books of Geocachic Company as at 31 December 2021 (30 marks) Page 3 EM2101202122 S Tako bere To Version Onestion Part 1 024 marks) Refer to the first paragraph of Question Part I on the background information of Greenchie Company. Assume during 2021, the Company recorded the following entries crroneously (1) Recond showed a client owed Greenchie $500 for services provided previomly. Cireenchic received this amount in May and then Dr. Cash SSCO Ct. Accounts Payable $500 (2) In Jamry Greenchic recorded purchase of a new machine at $12,000. Estimated useful life is two years and the Company is straight-line depreciation. No one used the machine in the first ten months, but since 1 November it was used every day by the staff. Assume Greenchic had not updated depreciation expense since onuary. On 31 December, it Dr. Depreciation expertise $1,000 Cr. Accumulated Depreciation $1.000 Total transaction price for April was $150,000, the fees camad was accrued and recorded in the same month. When Greenchie received payment in May, it Dr. Cash $12.000 Cr. Fees Famed $12.000 (4) For the year 2021, Greenchie declared and reconded a total dividend of $110,000. When recording closing entries, it Dr. Income Summary $110,000 Cr Dividend $110.000 Required Identify the effects of the joumal entries made in (l) to (4) above case by case on each of the six clements of the financial statements per column headings of the table below. Use the symbols for everstute. "U" for understate and "NE" sve no effect. Ne dollar amount is required Copy the folkwing table to answer this question Income Same Statement of Financial Position Revenue Expense Profit Assets Liabilities Equity 2 3 4 (24 marks Greenchic Company ("Greenchic") is an on-line second hand shop that matches sellers and buyers of fashion goods. The Company charges both sellers and buyers 4% on the transaction price as Fees Eamed and receives payment next month. Besides, the Company uses its website to earn Advertising Revenue. The company adjusts its accounts monthly and prepares closing entries annually on 31 December. Below is the unadjusted trial balance dated 31 December 2021: Cr $ Dr s 211,167 106,725 3,720 7,500 15,000 510,000 432,000 Cash Accounts Receivable Office Supplies Prepaid Insurance 6% 2-year Note Receivable (due on 31 December 2022) Fixtures Machine Accumulated Depreciation: Machine 4% 1-year Note Payable (due on 31 December, 2021) Accounts Payable Income Taxes Payable Interest Payable Share Capital Issued (@$2 per share) Retained Earnings Fees Earned Advertising Revenue Office Supplies Expense Depreciation Expense: Machine Salaries Expense Utilities Expense Interest Expense Insurance Expense Rent Expense Income Taxes Expense TOTAL 130,500 90,000 45,237 37.500 900 600,000 96,675 877,500 82,500 29,250 18,000 195,750 12,000 2,700 37,500 342,000 37,500 1,960,812 1,960,812 Information on adjusting entries: (1) Income taxes expense for the year amounted to $55,000. The amount is due in March 2022. (2) Machine is depreciated using straight line method over 20 years with no residual value. The last adjusting entry was made on 31 October, 2021. (3) Total amount of transaction price in December was $100,000. The fees earned is uncollected and unrecorded (4) There is an accrued, unpaid and unrecorded salaries for December in the amount of $35,000. (5) Office supplies on hand on 31 December 2021 were $2,020. (6) On 30 December 2021, Greenchic signed a contract with Blue Company for them to advertise in Greenchic's website from 1 to 28 February 2022. Total advertising fee is $200,000 and Blue Company will pay this amount on 1 January 2022. (7) In November Greenchic issued another 30,000 shares at $2.00 per share but no record was made. (8) On 31 December Greenchic declared and paid a dividend of $0.1 per all the issued shares but no entry was made. (9) Greenchic bought a 3-month insurance plan on 1 October 2021. (10) On 1 January 2021, Greenchic lent out $15,000 to BB Company by a 2-years note receivable at 6% annual interest rate. The Company will receive the principal and all accrued interests on the maturity date in 2022. No adjusting entries were done on all the accrued interest so far. (11) On 1 January 2021, Greenchic borrowed $90,000 by signing a 1-year note payable at 4% annual interest rate. Interest was paid half-yearly on 30 June and 31 December. The first interest payment was made and recorded. No adjusting entries were done since 1 October 2021. On 31 December, the Company made full payment but this was unrecorded. Required (a) Prepare the necessary adjusting entries on 31 December 2021. Explanations and workings are NOT required. Use the account titles given in the Trial Balance or create new accounts where appropriate. If any event does not require adjustment, state "No entry" and No explanation is required. (46 marks) (b) Prepare closing entries to close the books of Greenchic Company as at 31 December 2021. (30 marks) Refer to the first paragraph of Question 1 Part I on the background information of Greenchic Company. Assume during 2021, the Company recorded the following entries erroneously: (1) Record showed a client owed Greenchic $500 for services provided previously. Greenchie received this amount in May and then Dr. Cash $500 Cr. Accounts Payable $500. (2) In January Greenchic recorded purchase of a new machine at $12,000. Estimated useful life is two years and the Company uses straight-line depreciation. No one used the machine in the first ten months, but since 1 November it was used every day by the staff. Assume Greenchic had not updated depreciation expense since 1 January. On 31 December, it Dr. Depreciation expense $1,000 Cr. Accumulated Depreciation $1,000 (3) Total transaction price for April was $150,000, the fees eamed was accrued and recorded in the same month. When Greenchic received payment in May, it Dr. Cash $12,000 Cr. Fees Eamed $12,000. (4) For the year 2021, Greenchic declared and recorded a total dividend of $110,000. When recording closing entries, it Dr. Income Summary $110,000 Cr. Dividend $110,000 Required Identify the effects of the journal entries made in (1) to (4) above case by case on each of the six elements of the financial statements per column headings of the table below. Use the symbols O for overstate, U for understate and "NE" for no effect. No dollar amount is required. Copy the following table to answer this question. Income Statement Statement of Financial Position Revenue Expense Profit Assets Liabilities Equity 1 2 3 4 (24 marks)