question 1

14 The UNADJUSTED trial baiance for Day, Ine, as at December 31,2022 , is presented below: Page 15: 15 Page 16: 16 Page 17: 17 Page 18: 18 age 19 Required: For each of the pieces of additional information below, prepare in the space provided any Required: For each of the pieces of additional information below, prepare in the space provided any adjusting journal entry necessary to bring the accounts up to date as at December 31, 2022, the fiscal year-end of Day, Inc. Please use the letters a to f to clearly label your journal entries. a. A one-year property insurance policy that was renewed and paid on March 1. 2022 for $36,000, and the entire payment was debited to Prepaid Insurance. No entry to the account has been made since the renewal of the insurance policy ( 3 . points). b. The building has an estimated useful life of 30 years. Day Inc. expects that the residual value of the building at the end of its useful life will be $10,000. Depreciation Expense has not yet been recorded for the current year ( 3 points). c. The Note Payable is for a loan of $200,000 negotiated with the Bank of Montreal in 2019. Day Inc. pays annual interest of 7.5% and interest is payable on March 1 and September 1 each year. No entry has been made to adjust the balance of Interest Expense since September 1,2022 ( 3 points). d. On December 31, 2022, Day Inc. discovered that the unadjusted balance of Sales Revenue included $56,000 of customer pre-payments for Merchandise Inventory to be shipped on January 13,2023 (2 points). e. In order to accommodate employees during its office building renovation, Day Inc. paid $12,000 to rent a temporarily office location from December 1,2022 till January 31, 2023. The entire payment of $12,000 was made on November 30,2022 and debited to Rent Expense (3 points). f. Based on preliminary computations, the firm estimates that Income Tax Expense for the year will be $110,000 (2 points). g. All purchases of supplies are charged (debited) to Supplies Expenses. The balance in Supplies Inventory represents supplies on hand at the beginning of he year. A physical count on December 31,2022, indicated supplies currently on hand of $6,300(3 points)