File Tools View Document2 - Word - X A/C Name Trial Balance DR CR Cash 2,600,000 Accounts receivable 7,000,000 Alowance for bad debt 625,500 Other debtors Merchandise Inventory 7,210,000 Store Supplies 2.580.800 Prepaid Insurance 3.640.000 Prepaid rent 3.500.000 Furniture & Equipment 14.000.000 Accumulated deprecation-Furniture and equipment 5.520.000 Motor Car 4.200.0 00 Accumulated depreciation- Motor Car 3.098.995 Accounts payable 1.800.000 Salary payable Interest payable Unearned Sales revenue 3.000.000 Note Payable, long term 7.500.000 Patty Patterson, Capital 14.500.000 Withdrawals 110.000 Sales revenue 36.107.915 Sales discount 1.010.100 Sales returns and allowances 1.201,010 Cost of goods sold 10.500.500 Salaries expense 10.000.000 Insurance Expense Utilities Expense 1.100.000 Rent Expense 3,500,000 Depreciation Expense - Furniture and Equipment Depreciation Expense - Motor Car Store Supplies Expense Gain/loss on Disposal of Fixed Asset Bad-Debt Expense Interest Expense 72,152,410 72,152,410 Screen 4 of 13 + 170% P3 0 m XI 8:44 PM 26 C Cloudy 11/2/2022File Tools View Document2 - Word - X The following additional information is available December 31, 2021: 1) Store Supplies on hand on December 31, 2021, amounted to $1,580,000. 2) Insurance of $3,640,000 was paid on January 1, 2021, for the 13-months to January 31, 2022 3) Prepaid rent expired December 31, 2021, amounted to $2,500,000 4) The furniture and equipment have an estimated useful life of 10 years and is being depreciated on the straight- line method down to a residual value of $200,000. 5) The Motor Car cost relates to two Yama cars purchased for $2, 100,000 each by the company on January 1, 2015. The double-declining balance method of depreciation is used to compute the car's depreciation charges Screen 5 of 13 + 170% O Eli P3 WE 8:45 PM 26*C Cloudy 11/2/2022D ocu merit}. - Word and their expected useful life is 10 years or 100,000 miles. In 2015, 10,000 miles were driven, 16,500 in 2016, 12,600 in 2017, 16,000 in 2018, 16,500 in 2019, 14,800 in 2020 and 16,800 in 2021. The residual value on both car is $241,592 each. On September 1, 2021, the company sold one of the cars to ZM Company for $640,000 on credit. Round off answers to the nearest dollar. 6) Salaries earned by employees and not yet paid amounted to $245,000 on Dec 31, 2021. 7) Accrued interest expense as of December 31, 2021, $155,000. 8) On Dec 31, 2021, $1,400,000 of the previously unearned sales revenue had been earned. 9) The aging of the Accounts Receivable schedule on Dec 31, 2021, indicated that the Allowance for Bad Debts should be $700,000 SUEEHEUHS E E - I + 170% 3:45 PM . 26"C Cloudy :11 \"mam EB File Tools View Document2 - Word X 10) A physical count of inventory was done on December 31, 2021, after making all the other adjustments and this revealed that there was $7,300,000 worth of inventory on hand at this point. Other data: 1 1) The business is expected to make principal payments totalling $1,980,000 towards the loan during the fiscal year to December 31,2022. Required: a) Prepare the necessary adjusting journal entries on Dec 31, 2021. [Narrations are not required] Screen 7 of 13 + 170% P3 0 m 8:47 PM 26*C Cloudy 11/2/2022File Tools View Document2 - Word - X b) Prepare the Adjusted Trial balance for the period ending December 31, 2021. c) Using the Adjusted trial balance, generate the statements requested by Belvidere Pharmaceutical E -Town Division, i.e. " A Multiple-step income statement & a Statement of owner's equity for the year ended December 31, 2021 " A Classified balance sheet, in report format, at December 31, 2021. Screen 8 of 13 + 170% Eli P3 0 m X ] 8:47 PM 26"C Cloudy ~ 9 3 7 () 11/2/2022