Chapter 11 Problem 1130 LO 1112 You are engaged to perform an audit of the Giordani Corporation for the year ended December 31, 2021, You have decided to perform the following cutoff test for payables and accruals. Select all items greater than $25,000 for two business days before and after yearend from the purchases journal and ensure that all transactions are recorded in the proper period. During your firm's observation of Glordani's physical inventory you obtained the following cutoff information: the last recelving report number in 2021 was 49745 . Your audit work identified the following items for further investigation: Required: For each of the six items provided in the table above, consider whether there is evidence of proper cutolf of payables and accruais (ie, the transaction is recorded in the proper period). If the item is not properly recorded, prepare the necessary odjusting entries at December 31, 2021. Note: if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet (2) 3 4. 5 6 Record the purchase of chemicals for manufacturing process for $29,875 received before December 31,2021 recorded in the purchases journal on 12/30. Note: Enter debits before credits. Journal entry worksheet (4) 6 Record the payment of $45,000 for consulting services for the three-month period beginning December 1,2021 . The entire amount was charged to consulting expenses. Note: Enter debits belore credits. Journal entry worksheet 1 6 Record the $205,000 raw materials used in the manufacturing process received before December 31,2021 recorded in purchases journal on 12/31. Note: Enter debits before credits. Journal entry worksheet Record the purchase of a new forklift for $75,985 received in 2022 recorded in purchases journal on 1/01. Note: Enter debits before credits. Journal entry worksheet (1) 2 Record the $42,000 paper products used in manufacturing process recelved in December 2021 recorded in purchases journal on 1/02. Note: Enter debits before credits. Journal entry worksheet Record the $32,450 telephone bill for the month of December, 2021. Note; Enter debits before credits