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Version 1 for Section 1 NATTIE CORPORATION UNADJUSTED TRIAL BALANCE DECEMBER 31, 2020 ACCOUNTS DEBIT CREDIT 36,868 30,300 425,755 8400 402,912 30,000 500.000 280,000 120,000 CASH FV.NI Short Term INVESTMENTS ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS INVENTORY NOTES RECEIVABLE OFFICE BUILDING ACCUMULATED DEPRECIATION (OFFICE BUILDING) OFFICE EQUIPMENT ACCUMULATED DEPRECIATION (OFFICE EQUIPMENT) ACCOUNTS PAYABLE DIVIDENDS PAYABLE NOTES PAYABLE PREFERRED STOCK 30,000 OUTSTANDING ON DECEMBER 31, 2020 COMMON STOCK 100,000 ISSUED and OUTSTANDING ON DEC 31, 2020 RETAINED EARNINGS SALES REVENUE SALES DISCOUNTS SALES RETURNS AND ALLOWANCES PURCHASES PURCHASES DISCOUNTS TRANSPORTATION - IN SALARIES EXPENSE RENT EXPENSE INSURANCE EXPENSE SUPPLIES EXPENSE GAIN ON SALE OF ASSETS OF DISCONTINUED ACTIVITY ADVERTISING EXPENSE OPERATING LOSS ON DISCONTINUED OPERATIONS TELEPHONE EXPENSE CASH DIVIDENDS DECLARED Preferred Dividends CASH DIVIDENDS DECLARED.Common Dividends TOTAL 0 205 258 7328 60,000 100,000 185,000 200,023 3,590,524 20,571 51,259 2.600.824 35,678 25,235 320,623 40,955 16,456 25,673 13.650 18.860 21.908 28,540 29,732 20.000 4,766,461 4,766,461 NOTE: All revenue expense, gain and loss figures above are before tax. This company uses a Periodic Inventory system. ADDITIONAL INFORMATION 1 There was a customer that has gone bankrupt in 2020 and will not pay his S4580 account. The write off has not been recorded yot Also, NATTIE Corp uses the allowance method to record Bad Debts based on an estimate of 5% of the Ending Accounts Receivable, 2 The Office Building is depreciated using the declining balance method at a rate of 4% of NET BOOK VALUE per year, 3. The Office Equipment is depreciated straight line and has a residual value of $6,000. It was purchased on May 1, 2020 and it is estimated to have a useful life of 5 years. 4 on December 1, 2020, a customer signed a 5% note receivable for $30,000 due in 90 days. 5.FV-NI Short term investments have a fair market value of $32,300 on December 31, 2020. Investments need to be recorded at fair market value at year end and any gain or loss is recorded on the Income Statement 6. The insurance expense includes Policy A, cost of $12,700, three year term paid in advance on April 1, 2020 AND Policy B, cost of 53/756, two year term paid in advance on June 1, 2020 7. The company performed a year end physical count of its inventory as at December 31, 2020 The amount of inventory on hand at December 31, 2020 amounted to $415700 Inventory is maintained on a PERIODIC basis. Therefore the year end inventory adjustment is required 8. A one year 6% note payable of $60,000 was signed on August 31, 2020 REQUIRED Prepare the Adjusting Journal Entries required for the 2020 fiscal year at December 31, 2020