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Question 4 [30 points] Southgate Inc. is just finishing another year of operations. The company's unadjusted trial balance at April 30, 2014 is shown below.

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Question 4 [30 points] Southgate 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 yearly depreciation on the furniture is $150 b. $250 of the rent paid to Southgate Inc. in advance has been eamed c. The Building was purchased in a previous year and will be sold for $15.750 after being used for ten years d. Interest of $1,130 has accrued on a bank loan and is unrecorded. e. $1,100 of the television advertising paid for in advance has been used f. Consulting work performed but unrecorded at the end of the year totalled $10.000 g. Interest of $270 on notes receivable is unrecorded and unpaid. h. Property taxes of $8,500 have accrued but are unrecorded 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 (e. 15/Jan). General Journal Account Explanation Page Gud F Debit Credit Credit 400 15,850 14,800 Southgate Inc. Unadjusted Trial Balance April 30, 2014 Debit Accounts Payable Accounts Receivable Accumulated Depreciation, Building Accumulated Depreciation, Furniture Advertising Expense 2,900 Building 95,000 Share Capital Cash 129,250 Consulting Revenue Earned Depreciation Expense, Building Depreciation Expense, Furniture Furniture Interest Eamed Interest Expense 3.900 Interest Payable Interest Receivable Notes Receivable 14,500 Prepaid Advertising 1,800 Property Taxes Expense 1,300 Use this information to prepare adjusting entries at April 30, 2014, based on the above. Enter the adjustment letter as the description. The dates m dd/mmm (ie. 15/Jan). Date General Journal Account/Explanation Page Gja F Debit Credit Southgate Inc. Unadjusted Trial Balance April 30, 2014 Debit Credit Accounts Payable 400 Accounts Receivable 0 Accumulated Depreciation, Building 15,850 Accumulated Depreciation, Furniture 14,800 Advertising Expense 2,900 Building 95,000 Share Capital 178,800 Cash - 129.250 Consulting Revenue Earned 9,500 Depreciation Expense, Building Depreciation Expense, Furniture_ Furniture 40.700 Interest Earned_ 14,200 Interest Expense 3,900 Interest Payable Interest Receivable Notes Receivable 14,500 Prepaid Advertising 1,800 Property Taxes Expense 1,300 Property Taxes Payable Rent Eamed 13,700 Retained Earnings. 28,000 Short-Term Notes Payable Supplies 400 Uneamed Rent 3,000 Totals 289,750 289,750 + 11,500

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