The unadjusted trial balance of Blue Spruce Corp., a private company following ASPE, at December 31, 2020 is as follows: Credit Debit $11.900 59,100 $745 8,300 56,400 2,856 11,748 14,200 19,000 10.200 110,000 Cash Accounts receivable Allowance for doubtful accounts FV-Nl investments Inventory Prepaid insurance Prepaid rent FV-OCI investments Bond investment at amortized cost Land Equipment Accumulated depreciation-equipment Accounts payable Bonds payable Common shares Retained earnings Sales revenue Rent revenue Purchases Purchase discounts Freight out Freight in Salaries and wages expense Interest expense Miscellaneous expense 16,900 8,500 60,000 104,400 100,794 224.800 9,600 174,500 2,300 9.150 3,550 30,000 6,300 835 $528,039 $528,039 Additional information: 1. 2. 3. 4. 5. On November 1, 2020, Blue received $9,600 rent from its lessee for a 12-month lease beginning on that date. This was credited to Rent Revenue. Blue estimates that 6% of the Accounts Receivable balances on December 31, 2020, will be uncollectible. On December 28, 2020, the bookkeeper incorrectly credited Sales Revenue for a receipt of $1,100 on account. This error had not yet been corrected on December 31. After a physical count, inventory on hand at December 31, 2020, was $82,000. (Use "Inventory" account for closing out the beginning inventory amount and recording the ending inventory amount.) Prepaid insurance contains the premium costs of two policies: Policy A. cost of $1,200, two-year term, taken out on April 1,2020; Policy B, cost of $1,656, three-year term, taken out on September 1, 2020. The regular rate of depreciation is 10% of cost per year. Acquisitions and retirements during a year are depreciated at half this rate. There were no retirements during the year. On December 31, 2019, the balance of Equipment was $92,000. On April 1, 2020, Blue issued at par value 60 $1,000, 12% bonds maturing on April 1, 2024. Interest is paid on April 1 and October 1. On August 1, 2020, Blue purchased at par value 19 $1,000, 12% Larkspur, Inc bonds, maturing on July 31, 2022. Interest is paid on July 31 and January 31. On May 30, 2020, Blue rented a warehouse for $979 per month and debited Prepaid Rent for an advance payment of $11,748 Blue's FV-NI investments consist of shares with total market value of $9,300 as at December 31, 2020. The FV-OCI investment is an investment of 455 shares in Yop Inc., with current market value of $20 per share as of December 31, 2020 6. 7. 8. 9. 10. No. Account Titles and Explanation Debit Credit 1. 2. (To correct incorrect entry.) (To record bad debt expense.) 3. 4. 5. 6. 7. 8. 9. 10