JOURNAL ENTRIES ARE REQUIRED FOR THE FOLLOWING INFORMATION. NO INFORMATION IS MISSING

n Final Adj- Unadjusted Adjusted 12/31/2019 12/31/2020Ref DR Rel CR 2/31/2020 Cash 580,000 724,000 Investment in trading securities 64.000 64.000 Accounts receivable 138,000 35,000 Allow ance for doubtful accounts (2,000) (2,000) Interest receivable Inventory 60,000 40,000 Current portion of notes receivable Prepaid expenses 4,000 3,000 Allow ance for change in fair value of securities Term portion of note receivable Investment in OFE Corp Machine A 72,000 72,000 Machine B 68,000 68,000 Building 676,000 676,000 Other depreciable assets 992,000 992,000 Machine D 92,000 92,000 Outdoor rigging 288,000 288,000 Electronic Equipment E (related to outdoor rigging vent. 92.000 92.000 Accumulated depreciation (1,300,000) (1,300,000) Patent Goodwill -- OFE Corp. 128,000 128,000 Accounts payable (1,020,000) (320,000) Takes payable (36,000) (36,000) Accrued expenses (4,000) (32,000) Preferred dividends payable Pension liability Bonds payable. 6%, due 2034 (360,000) (360,000) suspense 1,084,000 Preferred non-cumulative. 6X, $500 par, 3616 shares . (1,808,000) (1,808,000) Common stock, $10 par. 9,000 shares outstanding (360,000) (360,000) Paid in capital in excess of par, common (272,000) (272,000) Accumulated other comprehensive incomeTreasury stock Retained earnings 1,908,000 1,908,000 Sales (5.428,000) Cost of goods sold 3,170,000 Selling, general and administrative expense 482.000 Interest income Interest expense - Depreciation expense Federal income tax expense Tax expense or benefit re: discontnued sale - Tax expense or benefit re: discontnued operation - Results from discontinued operations--disposition Results from discontinued operations--operation Extraordinary gains or losses Balances at 12131/18 are needed for the cash flow worksheet. Balances at 12/31/19 are the ending balances for 2013 before your adjustments. Get your trial balance worksheet 2018 beginning balances from the 2018 column above. You can add accounts as needed.Trading Securities The company invests in trading securities. Year end market prices were : Security Price per shacr Shares Security )i 4 4,000 Security Y '1' 2,000 Security Z 16 1,300 HAL 29 1,000 The company held 4,000 shares ofX, 2,000 shares on and 1,300 shares on at 12"31.'20. The company owns 1,000 shares ofHAL Corp, which are also trading securities {used to be held for sale). At the end of 2020, HAL was priced at 529 per share. Possible Impairment .TKL, Inc. owns DFE Co, which they bought for $463,000 several years ago. It is fully consolidated and the correct consolidation entries have already been recorded in the JKL, Inc. trial balance. Due to changing technology, J'KL, Inc. determined to examine the investment to see if it was impaired. The idenliable assets originally appraised at $329,000. The new appraisal, at December 31, 2020, puts the total fair satue for DEF at $333,000, with identiable assets at $310,000. Recluse needed .TKL, Inc. has an amount of $1,084,000 in a suspense account on its trial balance. The details of this amount are as follows (if you end up with a 51,000 rounding error, put the difference to lawsuit defense: Legal 35 administrative cost ofobtaining patent 194,000 lCost ofdeveloproent ofproduct patented 381,000 0051213deme of2020 law suit challenging the patent 309,000 Extension Total 16,000 14,000 24,000 29,000 33,000 PPEE Dn June 30. 2020. JKL. Inc. sold plant equipment [asset D] For $?3.000. The equipment was purchased January 1. 201? For 3?.000. dKL. Inc. used the 200K declining balance method For this asset. oI.Ier an estimated useFuI IiFe oF T" years. with saluage I.Ia|ue set at $13.000. Payment receixed included $10.000 cash and the buyer's note For the balance. The note requires equal annual principal payments oI.Ier 5 years From date. together with interest at 3%. Additionally. depreciation expense For 2020 oF $10?.000. related to other depreciable assets Dther than any assets discussed aboue. the company has plant and equipment with cost. acquisition dates. etc.. as shown: Acquired LiFe Cost Salvage 1111201? Machine P. 5 years F3000 10% 11112013 Machine E! T" years ?.000 None 11112011 Building 35 years ?2?.000 None All are depreciated by the straight line method. 2020 depreciation has not been recorded. On 01-01-20. the company changed its estimate For the life oF Machine E1 to 10 years From F years. Bad Debts The company Feels that bad debt expense needs to be recorded. They will use the balance sheetlaging oF AlFt method. The calculated ending balance For the allowance account is Capitalization: a. dKL. Inc. began 2020 with 33.300 shares of $10 par common stock that were initially issued For $1?.50 per share. These shares haue been recorded. issued and outstanding and the dividend was declared during 2013. payable January 15 2021. to holders oF record December 31. 2020. These shares [but not the diI.Iidend associated with the shares] have already been recorded. c. Dn May 1. 2020. the company sold an additional ?50 bonds with warrants attached. The bonds. which mature in 2035. had a Face I.Ia|ue of $1.000 each. with 5% annual rate interest coupon interest due June 1 and December 1. Each bond carries 5 warrants to buy one share of the common stock of the company at $35.00 per share one warrant +$35 buys one share.] The bonds were sold to a priI.Iate inuestor at 102. plus accrued interest. Ely comparison to other similar securities. the company has determined that the day aFter the sale the fair value oF the bonds without the warrants was 33. and that the warrants would be expected to trade at $3.00. [In December 31. 2020. F50 warrants [with the appropriate amount of cash] were tendered to the company in exchange For common stock. The average price oF the common $22.50 per share. Performance In: incentive compensation. a. JKL. Inc. has adopted performance based compensation for the President and for the Executive 'I.I'ice President for IZIperations.The president receives 1.5%: of the after-tax. after- bonus profit. and the E'v'PIZI receives 1.01:. The bonuses for 2013 were appropriately accrued at year end 2013. and were paid January 15. 2020 [accruals were reversed] b. The company adopted a stoclt based incentive compensation plan. effective January 01. 2020. Under the plan. the PresidentlEEIZI was granted 25.000 share options on JKL. |nc.'s common stoclt. The E'v'P Operations and the EFIZI each received 20.000 share options. The options strike price is $31 per share. The company uses the US Treasury yield on the 10-year Treasury Elill as an approximation of the rislt Free rate. The intrinsic value of the stoclt options are $0.32. These options vest ratably per year over a three year period. Leases a. The company began leasing its main offices for $3.500 per month on Jan 1. 2020. En its face. the lease expires December 31. 2023. but there is an option to extend for an additional 5 years at $4.500 per month. The space was built out by the lessor. to suit the lessee. prior to occupancy. and there have been no significant improvements to the space since. The company also rents its electronics parts storage warehouse for $1.000 per month. That lease was signed -1-lll2020 and expires 1213112021; it has an automatic rent escalation of 10:: per year for every year in which the Consumer Price Index increases. No rent payments for 2020 have been recorded. Note: this is space rented for the company to occupy. not space b. [In July. 01. 2020. leased a new stamping press. The fair value of the equipment is $355.553. The lease calls for 120 monthly payments of $3.000. JKL. |nc.'s marginal borrowing rate is higher than the 0.1% rate implicit in the lease. The estimated useful life of the equipment is eight years. The lease does not transfer title to lessee and does not contain any