Question #8- Worksheet (20 marks) You have accepted a part time job as an accountant with Star Electronics. The business is owned and operated by Russell Cruise. Russell has been so busy dealing with the after- Christmas sales that he hasn't had any time to complete Star's Financial Statements for the year ended December 31, 2012. Russell's bank manager has threatened to cancel Star's bank loan if the Bank does not receive the financial statements soon. The Loan Agreement from the Bank requires Star Electronics to make $15,000 annual payments each January 31 Russell started to make adjustments and corrections but simply ran out of time. He assembled the attached worksheet on page 16 and advised you the following information he thought you might require. Russell knew that you were in the process of completing your first accounting course at BCIT, and therefore knew you would be up for the task The vehicle was purchased on March 23, 2012 at a cost of $50,000. Russell expects the company to use the vehicle for 5 years at which time the scrap value is estimated to be $5,000. a. The land was purchased on April 1, 2012. Russell expects the company to own the property for 20 years. b. c: An inventory count indicated $61,000 of inventory at December 31, 2012 Star Electronics recently signed an agreement with BCIT to supply them with audio visual equipment. The contract is worth $200,000 and the equipment will be supplied in April of 2013. During December 2012, Star Electronics recorded the receipt of a $50,000 cheque from BCIT in respect of this contract. d. e. The $3,000 annual insurance policy was paid and commenced coverage on May 1, 2012 f. On June 1, 2012 Star Electronics lent a long-time employee $15,000. The employee signed a promissory note agreeing to repay the amount on January 1, 2014. The annual interest of $1,500 is to be received every May 31 g. A letter from the landlord indicated that the $3,000 rent for December 2012 was still outstanding. Required: 1) Complete the attached worksheet. To save time, the adjusted trial balance columns have been omitted. Do not add the adjusted trial balance columns as the problem can be completed without this information. You do not have to write out the journal entries ceparately but you must reference each adjustment or correction on the attached worksheet. (20 marks) 16 Fall 2018 Ques-B Ser Electrones Year Ended Decembr 31, 30135 Unadiusted Trial Dalance Credn Atjstments Iname Setement Debite Account Name Debn Geedn Detit Grean Cash Accounts teceivable Notes Receivable trventory Vehicles Land Accounts Payable- Bank Loan Russell Cruise, capital Russell Cruise, Withdrawals Sales Revenue Sales Returns and Allowances 17.000 20.000 15.000 65.000 50,000 100,000 15.000 100.000 60,000 7,000 331,000- 3,000 Cost of Goods Sold 162,000 Freight Out Advertising Expense Salary Expense Rent Expense Insurance Expense Interest Expense 2,000 5.000 20.000 33,000 3,000 4,000 506,000 506,000 Totals Fall 2018