Question 6 [60 points]

Barton Corporation completed all of its May 31, 2015, adjustments in preparation for preparing its financial statements, which resulted in the following adjusted trial balance.

Question 6 [60 points] Barton Corporation completed all of its May 31, 2015, adjustments in preparation for preparing its financial statements, which resulted in the following adjusted trial balance. Adjusted Trial Balance a) Prepare the entry (entries) to record any impairment losses at May 31, 2015. Assume the company recorded no Accounts payable impairment losses in previous years. Enter an appropriate description when entering the transactions in the journal. $5,200 Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). For each journal entry, indicate how Accounts receivable 8,800 each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For Accumulated depreciation, building. 38,000 example, if an account decreases equity, choose '-Equity'. Accumulated depreciation, equipment 16,800 General Journal Page Gj1 Effect On Accumulated depreciation, furniture 9,200 Date Account/Explanation F Debit Credit Balance Sheet Allowance for doubtful accounts 370 Building 63,000 Cash 5,000 Equipment 42,000 Expenses, including cost of goods sold 343,000 b) Prepare a classified balance sheet at May 31, 2015. 26,000 Share capital 28,400 (select one) Land 46.000 Balance Sheet Merchandise inventory 16,300 (select one) Long-term notes payable 38,000 Retained earnings 40,000 Sales 370,540 Unearned revenue 3,590 Furniture, 1) All accounts have normal balances. 2) $12,200 of the note payable balance is due by May 31, 2016 The final task in the year-end process was to assess the assets for impairment, which resulted in the following schedule. Asset Recoverable Value Land $49,100 Building 27,100 Equipment 22.200 Furniture 19,900 Saved