c. Prepaid Insurance The prepaid amount on the trial balance consists of a payment made to State Farm Insurance on October 1, 2020. The policy lasts 18 months. d. Inventory - LCM The company has the policy of stating all inventory on hand at the lower of cost and net realizable value. The company uses the direct method for any adjustments to inventory. NOTE - on the income statement use "Cost of Goods Sold" from the trial balance - do not calculate the cost of goods sold. In the excel spreadsheet, see the tab "Inventory Detail" to perform any necessary calculations. e. Record Depreciation on assets Depreciate the fixed assets according to the schedule. Depreciation is calculated on an annual basis. In the excel spreadsheet, see the tab "Fixed Asset Details" to perform any necessary calculations Accumulated Depreciation Acquisition Useful Depreciation Expense Accumulated Depreciation Adjustments Date Life (Yrs) Cost to 12/31/19 2020 to 12/31/20 to 12/31/20 NBV 200,000.00 05/31/19 - 09/01/18 09/01/18 0 400,000.00 40,000.00 640,000.00 1 2 09/01/18 40 4,110,000.00 137,000.00 8 05/01/20 40 2,190,000.00 4 6,300,000.00 137,000.00 5 6 7 02/01/18 4 59,850.00 28,678.13 B 09/01/18 10 94,200.00 12,560.00 03/01/19 4 77,200.00 16,083.33 05/31/19 6 37,500.00 3,645.83 1 07/31/19 6 441,000.00 30,625.00 2 08/01/20 10 50,730.00 8 12/01/20 10 24,600.00 412/31/20 10 5 785,080.00 91,592.29 5 7 $ 7,725,080.00 $ 228,592.29 8 Item # Description Cost Selling Price Selling costs 7% 14566SA X205 30 HP Machine 145669A X205 30 HP Machine 27,000.00 63,250.00 4,427.50 27,000.00 63,250.00 4,427.50 147502A X205 30 HP Machine 27,000.00 63,250.00 4,427.50 147503A X205 30 HP Machine 27,000.00 63,250.00 4,427.50 147504A X205 30 HP Machine 27,000.00 63,250.00 4,427.50 0 360010X G350 60 HP Machine 71,800.00 95,800.00 6,706.00 1 360011X G350 60 HP Machine 71,800.00 95,800.00 6,706.00 2 360012X G350 60 HP Machine B 360013X G350 60 HP Machine 4 598750W L500 100HP Machine 5 598751W L500 100HP Machine 6 598752W L500 100HP Machine 7 71,800.00 95,800.00 6,706.00 71,800.00 95,800.00 6,706.00 197,200.00 206,000.00 14,420.00 197,200.00 206,000.00 14,420.00 197,200.00 206,000.00 14,420.00 1,013,800.00 B Trial Balance At December 31, 2020 Debit Credit Cash & Equivalents FV-NI Investments 1,664,544 801,300 Accounts Receivable - Trade 4,375,772 Accounts Receivable - Projects 1,510,000 Allowance for Doubtful Accounts (Trade) 126,508 Inventory 1,013,800 Prepaid Insurance 480,000 FV-OCI Investments 212,000 Contract Asset/Liability 121,880 Land 640,000 Building 6,300,000 - Building Accumulated Depreciation 137,000 Equipment 785,080 Equipment - Accumulated Depreciation 91,592 Intangible Assets (net) 323,500 Goodwill 1,350,000 Accounts Payable 956,000 Deferred Tax Liability 204,000 196,000 HST Payable Interest Payable Dividends Payable Wages Payable Notes Payable Bank Loan Common Stock Retained Earnings Revenue from Long-term Contract Revenue from long-term Contract - Project #1 500,000 8,000,000 4,000,000 3,376,862 Sales Revenue - Equipment Dividend Income Interest Income Gain on sale of truck Investment Income or Loss Unrealized Gain or Loss - OCI Cost of Goods Sold Construction Expenses Construction Expenses - Project #1 8,826,400 13,724,150 65,000 Equipment Rental (other expenses) Equipment Repairs (other expenses) Wages Payroll Tax Expense Interest Expense Utilities Insurance Expense Bad Debt Expense Commission Expense Advertising Expense Amortization Expense Depreciation Expense TOTALS Net Income (Loss) TOTAL 994,188 204,868 1,417,760 177,220 20,000 126,000 32,800 $ 31,377,112 $ 31,377,112 0 REQUIRED: 1. See the excel spreadsheet - all information should be recorded using the excel template. Update tabs in excel as needed - SHOW ALL WORK. 2. Prepare journal entries for the above transactions. 3. Post transactions to the worksheet and complete the worksheet