Hi, I need help with the adjusting entries, please. I already did them but I'm not sure if I didn't make any mistake at all.

You are working on the preparation and analysis of the nancial statements of Little Rock Ltd. a small privately owned company for the year ended October 31. 2019. Little Rock is a wholesale oornpany that purchases a wide variety of organic beers from small and local breweries in Canada. the US and Eastern Europe and distributes them to bars. restaurants. clubs and liquor stores in Alberta. Little Rock was started by siblings Richard. Paul and Tom Conneit in Alberta in 2010 and they own 90% of the common shares. shared equally. The remaining 10% is owned by their retired father. Sean. who does not participate in the day today running of the business. Since its founding. the company has negotiated sales contracts with the major retail liquor and restaurant chains in Alberta. Sales have increased steadily each year and the company appears quite protable. On November 1. 2018. the company expanded its operations by acquiring a stateoi-the-art distribution warehouse in Lelhbridge for $2 million. Up to then they rented a small warehouse in Medicine Hat. The expansion was nanced in part by issuing a bond with par value of 51.000000 with 10 year maturity to private investors at a 7% coupon interest rate. The investors had an expected a return of 9% for this business. Semi-annual interest payments are made on May 1 and November 1 each year. Aiso. on November 1. 2018, an additional $600,000 loan at 4% interest was borrowed over 10 years from Atlantic Bank. Annual xed principal plus interest payments are to be made on November 1 com year. The bank may demand repayment of the loan at any time. In May 2019. the owners hired a new sales manager. Roger MacEdwards. to spearhead a sales drive into British Columbia. As of October 31. 2019 he has been successful in adding $950,000 to the company sales revenue in the 2019 scal year. His budget target was 5540.000 for the six months to October 311 2019. Roger is rewarded by monthly cash salary and a bonus of 10% of total sales, paid every three months. He was paid $30000 in August 2019 for his first three months sales. In October 2019. the father. Sean. decided to retire from the business. He stated that he would not sell his shares to any outsider and wanted them re-purcnased and cancelled by the company. 0n the15th of October 2019 he was paid 590.000 for his shares. This was recorded as: DR Common shares receivable -Dad 390.000 CR Cash 390.000 EXHIBIT 1 Additional information for adjusting and correcting entries and the nancial statements: 1 . 5374 9. The inventory count on October 31. 2019 included $1 CLOUD of bottled beers that were passed their expiry date and not saleable. This inventory is included in the inventory reported on the unadjusted trial balance and no adjustment was made in the accounts. The company received $35.00U of organic beer on November 4. sets. that had been shipped by the supplier October as. 2019. FOB destination. This inventory is included in the inventory reported on the unadjusted trial balance as the bookkeeper had received an invoice on October 29 and recorded it immediately. On June 1. 242119 the company renewed its annual insurance policy for $15tld. The full amount was paid and expensed on that date. During the year the company sold old ofce and storage equipment from the rented warehouse with an original cost of $i'ti. DUO. This was the only sale of property. plant 8; equipment during the year and it was recorded correctly. The depreciation for 2o1s has been calculated correctly and' is as follows: Buildings $80.1'JOU llilll'arehouse equipment - $25.00D Ofce and selling equipment $1 3.5013 The balance on the October 31. 2019 bank statement was MEETS overdraft. Included in the statement are the following items that have not yet been recorded in the cash account: a. An NSF customer returned cheque for s1.soo. plus a $50 admin fee. b. a debit memo of $T2 for bank service charges and overdraft fees. c. Ari EFT deposit of $3.150 was received from Rocket Restaurants Ltd. Deposits of $5. were made into the ba nk account on October 30 but it did not appear on the October 31 bank statement. Alter comparing the cheques recorded in the books with the cheques listed in the bank statement. it was determined that cheques for 5 12.541 were still outstanding. It is estimated that 3% of the accounts receivable may not be collected. A common share dividend of $3 per share was declared on October 10, 2019 for shares held on November 1111. 2d19. Dividends will be paid on November 15. sale. The company s tax rate is 15%. 1t]. Little Rock prepares annual adjusting entries and does not use reversing entries. All sales and purchases are made on account. abomilw birdh'ojol co. essence a was\" \"=0 Page | s docs.google.com C LacusCurtius . Allen's Star N... ACCT 3220 Winter 2020 CS... Homework Help - Q&A from... Course List ~ Lyryx Learning... Introduction to Financial Acc... bad debt expense journal en... how to screen shot macbok... ACCT 3220 Winter 2020 CSL Unadjusted Trial Balance .XLSX + EE Share C File Edit View Insert Format Data Tools Help All changes saved in Drive 100% * $ % .0_ .00 123 Arial 11 . BISA . 3 fx G H K M N 0 P Q R S 1 Adjusting Journal Entries 2 3 Date Accounts Debit Credit 4 1 31-Oct Cost of Goods Sold 10,000 5 Inventory 10,000 6 tion, To adjust inventory for expired inventory 2 31-Oct Accounts Payable 35,000 Inventory 35,000 9 To adjust inventory 10 3 31-Oct Prepaid Insurance 8,750 11 Insurance Expense 8,750 12 charge - $720 To adjust for Unexpired Insurance 13 4 31-Oct Depreciation Expense 118,500 14 Merchandise Inventory 80,000 15 Accumulated Depreciation -Warehouse Equipment 25.000 16 Accumulated Depreciation -Office and Selling Equipment 13,500 17 To record Depreciation 18 5 31-Oct-20 Accounts Receivable 1,500 19 Cash 1,500 20 To record NSF Cheque returned 21 6 31-Oct-20 Office & Administrative Expense (720+50) 770 22 Cash 770 23 To record bank charges and fees 24 7 31-Oct-19 Cash 3,150 25 Accounts Receivable 3, 150 26 To record the cash received by EFT 27 8 31-Oct-19 Bad Debt Expense (Sales&W.H Expense) 17,051 28 Allowance for uncollectible accounts 17,051 29 To record Allowance for uncollectible accounts 30 9 31-Oct-19 Dividends 150,000 31 Dividends Payable $3 x 50,000 150,000 32 To record Dividends Pavahle + student worksheet 2018 FS 1 Journal Entries Bank Reconciliation Statement Financial Statements + Exploredocs.google.com C LacusCurtius . Allen's Star N... ACCT 3220 Winter 2020 CS... Homework Help - Q&A from... Course List ~ Lyryx Learning... Introduction to Financial Acc... bad debt expense journal en... how to screen shot macbok... ACCT 3220 Winter 2020 CSL Unadjusted Trial Balance .XLSX * + EE Share C File Edit View Insert Format Data Tools Help All changes saved in Drive 100% * $ % .0_ .00 123 Arial 11 . B IS A Q B 3 = I HVV C + Y - E - 8 1 1 fx F G H M N 0 P Q R 27 8 31-Oct-19 Bad Debt Expense (Sales&W.H Expense) 17,051 28 Allowance for uncollectible accounts 17,051 29 To record Allowance for uncollectible accounts 30 9 31-Oct-19 Dividends 150,000 31 Dividends Payable $3 x 50,000 150,000 32 To record Dividends Payable 33 10 31-Oct-19 Interest Expense 39, 146 34 Discount on Bond Payable 4,146 35 Interest Payable 35,000 36 To accrue Interest Payable on the Bond 37 11 31-Oct-19 Interest Expense 32,000 38 Interest Payable 800,000 x 4% 32,000 39 To accrue Interest Payable on the Note 40 41 42 43 44 45 46 47 48 58 + student worksheet 2018 FS 1 Journal Entries Bank Reconciliation Statement Financial Statements 1 + Explore