Question 1 (30 points) Ludwig Inc. is just finishing another year of operations. The company's unadjusted trial balance at April 30, 2014 is shown below. The following additional information is available at April 30 for the year just ended : a. The Building was purchased in a previous year and will be sold for $11,500 after being used for ten years. b. The estimated yearly depreciation on the furniture is $600. c. $1,200 of the advertising paid for in advance has been published by the newspaper. d. Of the rent paid to Ludwig Inc. in advance, $2,000 has not yet been earned. e. $3,900 of property taxes have accrued and are unrecorded. f. Consulting work performed but unrecorded at the end of the year totalled $10,000. g. $430 of interest has accrued on a note receivable and is unrecorded. h. A review of the unadjusted balance in the supplies account shows a balance on hand at the a end of the year of $4,350. Use this information to prepare adjusting entries at April 30, 2014, based on the above. Enter the adjustment letter as the description. The dates must be entered in the format dd/mmm (ie. 15/Jan). General Journal Account/Explanation Page GJ8 F Debit Credit Date + = Ludwig Inc. Unadjusted Trial Balance April 30, 2014 Debit Credit Accounts Payable 1,500 Accounts Receivable 0 Accumulated Depreciation, Building 9,450 Accumulated Depreciation, Furniture 11,800 Advertising Expense 9,800 Building 43,000 Share Capital 158,500 Cash 100,750 + g. $430 of interest has accrued on a note receivable and is unrecorded. h. A review of the unadjusted balance in the supplies account shows a balance on hand at the end of the year of $4,350. Use this information to prepare adjusting entries at April 30, 2014, based on the above. Enter the adjustment letter as the description. The dates must be entered in the format dd/mmm (ie. 15/Jan). General Journal Account/Explanation Page GJE F Debit Credit Date Ludwig Inc. Unadjusted Trial Balance April 30, 2014 Debit Credit Accounts Payable 1,500 Accounts Receivable 0 Accumulated Depreciation, Building 9,450 Accumulated Depreciation, Furniture 11,800 Advertising Expense 9,800 Building. 43,000 Share Capital 158,500 Cash 100,750 Consulting Revenue Earned 3,200 Depreciation Expense, Building 0 Depreciation Expense, Furniture 0 Equipment 1,500 Furniture 30,400 Interest Earned 2,400 Interest Receivable 0 Notes Receivable 14,000 Prepaid Advertising, 3,500 Property Taxes Expense 13,500 Property Taxes Payable 0 Rent Earned 10,600 Retained Earnings 27,000 Supplies 4,700 Supplies Expense 5,800 Unearned Rent 2,500 Totals 226,950 226,950 + -1 +