How to adjust the trial balance? Please explain on how to adjust in the adjustment column

Hawk Machinery Corp Trial Balance 31/12/19 Unadjusted Adjustments Adjusted DR CR ref DR CR ref DR CR Checking account 158,985 B-1 158,985 Accounts Receivable 61,159 51,159 Allowance for uncollectible accounts B,279 8,279 Note Receivable 11,100 11,100 Interest receivable Inventory 342,173 E-1 2843 E-1 339,330 Prepaid Insurance 2,215 2,215 Federal tax deposits (income) 66,000 66,000 US Treasury bills (0-60 days] 48,000 48,000 Investments, available for sale 78,742 78,742 Fair value adjustment, investments 1,758 1,758 Investments in bonds 20,842 20,842 Bond premium Land 40,500 40,500 Buildings 670,500 670,500 Machinery & Equipment 434,892 434,892 Furniture & Fixtures 30,629 30,629 Vehicles 45,264 45,264 Accumulated depreciation 326,404 326,404 Sinking Fund (remediaton) 50,255 50,255 Goodwill 22,165 22,165 Cash surrender value - officer life insurance 23,150 23,150 Accounts payable 36,075 36,075 Note payable 75,000 75,000 Interest payable Accrued payroll payable 48,950 48,950 Accrued benefits payable 6,745 6,745 Accrued taxes, state & local 1,140 1,140 Deferred tax liability 54,030 54,030Accrued property tax 7,971 7,971 Mortgage payable 502,289 502,289 Sustainability liability 50,000 50,000 Preferred Stock, $100 par, 5%% 50,000 50,000 Common stock, 235,000 235,000 Retained earnings 99,742 99,742 Treasury stock 2,544 2,544 Common stock dividends 16,000 16,000 Preferred stock dividends 2,500 2,500 Sales 2,222,295 2,222,295 Sales returns & allowances 36,395 36,395 Cost of goods sold E-1 403630 Purchases 422,133 E-1 422133 Purchase discounts & allowances 21,346 E-1 21346 42,692 Factory wages 149,613 149,613 Overhead allocation - COGS 424,441 424,441 Depreciation 52,713 52,713 Advertising 25,815 25,815 Bad debt expense 3,923 3,923 Officer life insurance expense 2,573 2,573 Office salaries 82,392 82,392 Sales compensation 91,703 91,703 Officer's compensation 126,000 126,000 Retirement benefits 10,000 10,000 Utilities 9,720 9,720 Warranty expense 8,252 8,252 Office supplies and expense 5,115 5,115 Bond amortization expense 9,717 9,717 Interest expense 21,627 21,627 Legal & accounting expense 12,500 12,500 Travel expense 6,850 6,850 Health care benefits 20,700 20,700 State & local tax expense 12,540 12,540 Federal income tax 60,064 60,064 Property tax expense 8,000 8,000Property tax expense 8,000 8,000 Payroll tax expense 25,491 25,491 Environmental remediation expense Interest income 12,409 12,409 Dividend income 5,210 5,210 Storage fees earned 18,000 18,000 Scrap fees earned 411 411 Unrealized gain on securities 1,758 1,758 Gain on sale of equipment 17,288 17,288 3,757,650 3,800,342 424,976 424,976 3,375,366 3,778,996 NET INCOME 670,440 1,028,535\fA B C D E F G H 1 Hawk Machinery Corp 2 Accounts receivable 3 31/12/19 4 5 A review of sales contracts showed the following: 7 Rocky Mountain's contract in the amount of $25,000 called for five batch deliveries 8 over the course of the 5-month contract. The contract date was 10/1/2019 and 9 deliveries were made on November 1, December 1, and December 31. The full contract amount was initially recorded as sales revenue. Payment is due when goods 10 are received. 11 12 13 14A C D E E G 1 Hawk Machinery Corp 2 Allowance for uncollectible accounts 3 31/12/19 4 5 A summary of the AR Aging summary appears below (before adjustments from the contract review): 6 Day's 0-30 31-90 91-120 over 120 8 Total, unadjusted 43,000 9,800 6,000 2,359 9 Estimated uncollectible 3% 15% 40% 100% 10 11 12 The company uses the percent of sales method during the monthly financial reporting and 13 switches to the aging of receivables method at year end. 14 15 16 17A B C D E 1 Hawk Machinery Corp 2 Note receivable 3 31/12/19 4 5 6 On October 1, a customer converted an account balance into a 7 note. Hawk Machinery Corp. charges 8% on open balances. The 8 note is due January 2, 2020. 9 10 11 12 13 14A B C D E F G Hawk Machinery Corp 2 Trial Balance 13 31/12/19 4 5 Hawk hired an inventory service company to count the inventory in the warehouse. The physical count reported was $339,330. 10 11 Actual balance 339330 12 Book balance 342173 13 Adjustment -2843 14 15 Cost of good sold A1 2843 16 Inventory 2843 17 18 Beg. Inventory A1 342173 19 Purchase A1 422133 20 P Disc & Allowance Al -21346 21 Goods Available 742960 22 Ending Inventory 339330 A1 23 COGS 403630 24 25 26A B C D 1 Hawk Machinery Corp 2 Trial Balance 3 31/12/19 4 5 The following information was collected from the Investments file: 6 7 The 12/31/2019 market value of investments held as available for sale: $104,650. 9 Hawk purchased a $20,000 5-year bond paying 7% annually on the open market on 10 July 1, 2019 when the market price for similar bonds was 6%. The bookkeeper 11 recorded the bond at purchase price. 12 13 14 15 16 17 18 19H K L 1 Hawk Machinery Corp 2 Plant, Property & Equipment 3 31/12/19 4 5 6 7 8 In mid-December, the company switched to a delivery service and sold the truck. The 9 bookkeeper recorded the sales price as gain on sale of equipment. 10 11 12 13 14 15 16 17 18 19 20 On 3/1/2019 the company bought an additional piece of equipment for $134,892. The 21 company uses straight-line depreciaiton, a 10-year life, and 20% salvage value. 22 23A B C D E F G H Hawk Machinery Corp 2 Trial Balance 3 31/12/19 4 Depreciable Depreciation 2018 2019 5 Method Life Cost Salvage Basis Expense Balance COGS Balance 7 8 Machinery 15/07/16 SL 10 300,000 60,000 240,000 24,000 58,000 9 Factory Bidg 15/07/16 SL 39 420,500 105,125 315,375 8,087 10 19,542 11 COGS Depreciation 720,500 165,125 32,087 77,542 12 13 General & Admin 14 15 Office Building 15/06/16 SL 39 250,000 62,500 187,500 4,808 16 Office F&F 12,019 15/06/16 SL 7 30,629 30,629 17 4,376 Truck 10,939 01/07/16 SL 5 45,264 9,053 36,211 7,242 18 18,106 19 Total Gen & Admin 325,893 16,426 196,149 20 21 Total PP&E 1,046,393 48,512 22 23A L D E 1 Hawk Machinery Corp 2 Notes payable 3 31/12/19 4 5 On May 1, 2019 the company borrowed $75,000 during their bank's 6 promotion period at a rate of 2.5% and invested the money in their stock 7 portfolio. 8 9 10 11 12 13 14 15 16 The company refinanced its mortgage note (balance and refi fees = 17 $535,000) on the building on January 2, 2019 at 3.4% for 25 years . 18 Create an amortization schedule to prove balance and interest expense: 19 The first payment on the new note was due 2/1/2019. 20 21A C D E 1 Hawk Machinery Corp 2 Deferred Tax Liability 3 31/12/19 4 5 The corporation took advantage of Section 179 expensing in 2016 and completely 6 depreciated the equipment and furniture/fixtures. Calculate the required balance in the 7 DTL for 2016 and 2019 purchases. Assume the machinery bought in 2019 will also be 8 expensed (fully written off) under the tax rules. 9 10 11 12 13 2016 2017 2018 2019 14 Tax depreciation 375,893 15 Book depreciation 21,582 48,512 48,512 16 Difference 354,311 (48,512) (48,512) 17 Tax rate 0.35 0.21 0.21 18 DTL 101 Hawk Machinery Corp 2 Environmental Remediation 3 31f12f19 q 5 6 When the company purchased the land and built the corporate oomplex, they entered into an agreement with the local 7' government to create a sustainable environment on the grounds. The local government gave the corporation 5 years to get 3 started and the corporation estimated the project would cost $100,000. The corporation is using the straight-line method to 9 accrue the expense and related liability and is funding the project in a separate cash account (sinking fund]. Book this year's 10 expense. 11 12 13 14 'I I: A B C D E UNH Hawk Machinery Corp Income tax 31/12/19 Income per book Permanent differences 9 10 11 12 13 Temporary differences 14 15 16 17 Taxable income 18 Tax rate 19 Income tax 20 21