Questions :

1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2023. Please round all final numbers to the nearest dollar. Do not round during calculations. Ensure your spelling is accurate. Do not

use abbreviations for your accounts. Explanations are not required.

2) Prepare an adjusted trial balance as at May 31, 2023.

3) Prepare the multi-step Income Statement for the month of May 2023. Ignore income taxes. Do not use abbreviations for your accounts.

4) Prepare a classified Balance Sheet at at May 31, 2023. Do

not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question.

5) Assume Scarlet Witch Corporation overstated its ending inventory by $1200. How does this affect cost of goods sold, gross profit, and net income in the year

it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Enter the amount of the over/understatement (if any) in the designated spots.

6) Assume that Scarlet Witch Corporation used the LCNRV to report inventory on the balance sheet. The RV of $660 is less than the FIFO cost. Prepare the

journal entry. Do not use abbreviations for your accounts

A reminder to only use the accounts given in the question. Explanations are not required.

Scarlet Witch Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1,2023 , the following were the account balances of Scarlet Witch Corporation: During May 2023, the following transactions took place: May 1: Bought 240 desktop printers for $204 each on account. May 1: Bought a van, paying $12600 cash as a down payment and signed a 7 month $43200,6% note payable for the balance. The company paid $540 to have its company logo printed on the side of the van. The residual value is $9000. The old van was sold for $10800; it cost $38400 and acculumated depreciation up to the date of disposal was $36000. May 10: Sold 192 printers to Nebula Inc. on account. May 12: Oscorp agreed to sign a 60 -day note receivable to replace a $1800 accounts receivable due that day. The interest rate on the note is 7.2%. May 20: Sold 14 printers to Spiderman Inc. using a VISA card to pay for the transaction. A 4.2% service fee is charged by VISA. May 22: Sold 102 printers to Clint Barton Public School on account. May 24: Returned for credit 2 damaged printers from Nebula Inc., costing $204 each. May 28: Received payment in full from Nebula Inc. for the balance owing. May 28: Wrote off as uncollectable $4200 of accounts receivable. May 29: Paid accounts payable, $13800. May 30: Recovered an accounts receivable that was written off in April, \$1200. May 31: Paid operating expenses totalling $54600. May 31: Recorded depreciation on the van and the furniture \& fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 8 years. The furniture \& fixtures are depreciated using the straight-line method over 7 years. There is no residual value on the furniture and fixtures. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Other Information: 1) The selling price for each of the printers is $660. 2) Scarlet Witch Corporation uses the FIFO method under the perpetual inventory system to account for inventory. 3) In the past, Scarlet Witch Corporation has used the following accounts on their financial statements: Bad Debt Expense, Cost of Goods Sold, Credit Card Fee, Depreciation Expense, Gain on Sale, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable, Notes Receivable, Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period