Question 3 (41 marks; 72minutes): Preparation of adjusting entries, nancial statements, and selected calculations. Xavier Ltd. sells widgets. Xavier's inexperienced bookkeeper has supplied you with the following list of accounts and their unadjusted balances as at October 31, 2012 -- the company's scal yearend. Each account has a "normal" debit or credit balance, as the term is dened in the textbook. Accumulated depreciation building ............ $121,875 Accumulated depreciation equipment ......... 43,500 Allowance for doubtful accounts .................. 14,000 Building, at cost ..................................... 700,000 Cash .................................................... 90,000 Common shares (20,000 shares outstanding).... 600,000 Cost of goods sold .................................. 980,000 Deferred rent revenue .............................. 8,400 Equipment, at cost .................................. 150,000 General and administrative expenses ............ 424,000 Interest expense ..................................... 20,000 Land, at cost ........................................ 460,000 Merchandise inventory ............................. 33,375 Note payable, due December 1, 2013 ............ 400,000 Prepaid insurance ................................... 21,000 Retained earnings, October 31, 2011 ............. 120,000 Sales revenue ........................................ 2,000,000 Sales returns and allowances ...................... 20,000 Selling expenses ..................................... 130,000 Trade receivables .................................... 302.000