Question 1 [60 points]

Courtland Corp. completed all of its June 30, 2015, adjustments in preparation for preparing its financial statements, which resulted in the following adjusted trial balance.

Adjusted Trial Balance Accounts payable$5,300 Accounts receivable9,300 Accumulated depreciation, building36,000 Accumulated depreciation, equipment17,300 Accumulated depreciation, furniture9,200 Allowance for doubtful accounts390 Building63,000 Cash5,000 Equipment39,000 Expenses, including cost of goods sold345,000 Furniture23,000 Share capital29,400 Land46,000 Merchandise inventory16,100 Long-term notes payable38,000 Retained earnings42,000 Sales365,210 Unearned revenue3,600 1) All accounts have normal balances. 2) $11,700 of the note payable balance is due by June 30, 2016. The final task in the year-end process was to assess the assets for impairment, which resulted in the following schedule. Asset Recoverable ValueLand$47,100Building28,100Equipment18,700Furniture16,900

a) Prepare the entry (entries) to record any impairment losses at June 30, 2015. Assume the company recorded no impairment losses in previous years. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'. General Journal PageGJ1 Date Account/Explanation F Debit Credit Effect On Balance Sheet b) Prepare a classified balance sheet at June 30, 2015. (select one)Balance Sheet(select one)