Prepare a statement of financial position for the year. (List current assets in order of liquidity. List Property, plant and equipment in order of land, building and equipment.)

Credit $21.920 Ayayai INC. Trial Balance December 31, 2021 Debit Cash $31,620 Accounts receivable 31,500 Inventory 28,400 Supplies 2,600 Prepaid insurance 3,000 Land 28,000 Buildings 137,000 Accumulated depreciation-buildings Equipment 43.000 Accumulated depreciation-equipment Accounts payable Deferred revenue Bank loan payable Common shares Retained earnings Dividends declared 2,000 Sales Cost of goods sold 172,800 Salaries expense 32,100 Utilities expense 4,800 Interest expense 8,300 Income tax expense 6,000 $531,120 17,200 32,800 3,600 146,600 11,800 30,700 266,500 $531,120 Additional information and adjustment data: in fin 3. A 12-month insurance policy was purchased and was effective February 1, 2021. There was $737 of supplies on hand on December 31. Depreciation expense for the year is $5,480 for the buildings and $4,300 for the equipment Salaries of $737 are accrued and unpaid at December 31. Accrued interest expense at December 31 is $664. There was deferred revenue of $1,054 that still needed to be deferred as at December 31. The balance had been earned. Of the deferred revenue that had been earned, the cost of goods sold was $2,000. Of the bank loan payable, $9,840 is payable next year. Income tax of $500 is due and unpaid. 6. 7. 8. 9. A physical count of inventory indicates $25,708 on hand at December 31. Common shares of $2,890 were issued during the year. 10. (a) Your answer is correct. Record the required adjusting entries, assuming the company adjusts its accounts annually. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit 2750 Date Account Titles and Explanation Dec. Insurance Expense 31 Prepaid Insurance (Insurance expense recorded) Supplies Expense 2750 31 1863 1863 Supplies (Suppllies expenses recorded) Depreciation Expense 31 9780 5480 4300 Accumulated Depreciation-Buildings Accumulated Depreciation - Equipment (Depreciation expense for the year recorded) Salaries Expense 31 737 737 Salaries Payable (Salaries expense recorded) Interest Expense 31 664 664 Interest Payable (Interest expense recorded) 31 Deferred Revenue 2546 2546 Sales (Deferred revenue recorded) Cost of Goods Sold 2000 2000 31 500 Inventory (Cost of goods sold recorded) Income Tax Expense Income Tax Payable (Income tax expense recorded) Cost of Goods Sold 500 31 692 692 Inventory (Adjust inventory balance) eTextbook and Media List of Accounts Attempts: 5 of 15 used (b) Your answer is correct. Post the adjusting entries. (Post entries in the order of journal entries presented in the previous part.) Cash Dec. 31 31620 Dec 31 Bal. 31620 Accounts Receivable Dec. 31 31500 Dec 31 Bal. 31500 Inventory Dec. 31 28400 Dec. 31 692 Dec 31 Bal. 25708 Dec 31 2000 > Dec 31 692 Salaries Expense Dec. 31 32100 Dec. 31 737 Dec 31 Bal. 32837 Depreciation Expense Dec 31 9780 Dec 31 Bal. 9780 Utilities Expense Dec 31 4800 Dec 31 Bal. 4800 Insurance Expense Dec 31 2750 Dec. 31 Bal. 2750 Supplies Expense Dec 31 1863 Dec 31 Bal. 1863 Interest Expense Dec 31 8300 AYAYAI INC. Statement of Changes in Equity For the Year Ended December 31, 2021 Common Shares Retained Earnings 8910 $ 30700 Total Equity Balance, January 1 $ Issued common shares 2890 Net income 26060 Dividends declared -2000 i -20 Balance, December 31 $ 11800 $ 54760 $ Liabilities and Shareholders' Equity $ $