Busi 3325 Assignment Two Question One The trial balance of Santos Corporation is below. The following information is relevant to the preparation of adjusting entries needed to both properly match revenues and expenses for the period and reflect the proper balances in the accounts Instructions As the accountant for Santos, you are to prepare adjusting entries based on the following data, Carefully key your adjustments and label all items. (Due to time constraints, an adjusted trial balance is not required.) Round all calculations to the nearest dollar 1. On November 1, 2017, the company received $10,200 rent from its lease for a 12-month lease beginning on that date. This was credited to rent revenue. 2. The company estimates that 7% of its accou nts receivable on December 31, 2017, will be uncollectable. On December 28, 2017, the bookkeeper incorrectly credited sales revenue for a receipt of $1,000 on account. This error has not been corrected on December 31. 3. After a physical count inventory on hand at December 31, 2017, was $77,000 4. Prepaid insurance contains the premium costs of two policies: Policy A cost $1,320, two- year term, taken out on April 1, 2017; Policy B cost $1,620,three-year term, taken out on September 1, 2017 The regular rate of depreciation is 10% of cost per year. Acquisitions and retirements during a year are depreciated at half this rate. On December 31, 2016 the balance in the equipment account was $90,000 On April 1, 2017, the company issued at par value 50 $1,000, 11% bonds maturing April 1, 2020. Interest is paid on April 1 and October1 5. There were no retirements during the year. 6. 7 on August 1, 2017, the company purchased atpar value 18 $1,000 12%bonds, maturing 8. On May 30, 2017, the company rented a warehouse for $1,100 per month and debited 9. The company's FV-NI investment consists of shares with total market value of $9,400 as at 10. The FV-OCI investment is an investment of 500 shares, with current market value of $25 July 31, 2019. Interest is paid on July 31 and January 31. prepaid rent for an advance payment of $13,200. December 31, 2017 per share as at December 31, 2017 Santos Corporation Trial Balance Year ended December 31, 2017 DR CR 10,850 Cash Accounts Receivable56,500 Allow. for D. A FV-NI Investments Inventory Prepaid insurance Prepaid rent FV-OCI investments14,000 Bond investment at amort-ized cost 18,000 750 8,600 58,000 2,940 13,200