The unadjusted trial balance of Blue Spruce Corp., a private company following ASPE, at Credit Cash Debit $11,800 58,450 $705 8,800 59,500 2,904 12,396 14,650 17,000 11,600 101,500 Accounts receivable Allowance for doubtful accounts FV-NI 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 15,700 7,500 60,000 104,900 93.760 223,200 9.960 171.500 2,250 9,400 3,150 27,500 7.000 825 $517,975 $517.975 Question 1 of 2 - / 10 $517,975 $517,975 Additional information: 1. On November 1, 2020, Blue received $9,960 rent from its lessee for a 12-month lease beginning on that date. This was credited to Rent Revenue. 2. Blue estimates that 8% 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 $1.150 on account. This error had not yet been corrected on December 31. 3. After a physical count, inventory on hand at December 31, 2020, was $80,000. (Use "Inventory" account for closing out the beginning inventory amount and recording the ending inventory amount.) 4. Prepaid insurance contains the premium costs of two policies: Policy A, cost of $1,248, two-year term, taken out on April 1, 2020: Policy B, cost of $1.656, three-year term, taken out on September 1, 2020. 5. 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. 7 On August 1, 2020. Blue purchased at par value 17 $1,000, 12% Larkspur, Inc. bonds, maturing on July 31, 2022. Interest is paid on July 31 and January 31. N. 8. On May 30, 2020, Blue rented a warehouse for $1,033 per month and debited Prepaid Rent for an advance payment of $12,396. 9. Blue's FV-Nl investments consist of shares with total market value of $9.400 as at December 31, 2020. 10 The FV-OCI investment is an investment of 460 shares in Yop Inc. with current market value of $20 per share as of December 31, 2020. 6. Prepare the year-end adjusting and correcting entries for December 31, 2020, using the information given. Record the adjusting entry for inventory using a Cost of Goods Sold account. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit -11 Prepare the year-end adjusting and correcting entries for December 31, 2020, using the information given. Record the adjusting entry for inventory using a Cost of Goods Sold account. (Credit account titles are automatically indented when amount entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit 1. Credit 2. (To correct incorrect entry.) I (To record bad debt expense.) 3. Question 1 of 2 Question Part Score Indicate which of the adjusting entries could be reversed. Journal Entry 1 Journal Entry 2 Journal Entry 3 Journal Entry 4 v Journal Entry 5 Journal Entry 6 Journal Entry 7 Journal Entry 8 Journal Entry 9 Journal Entry 10 e Textbook and Media List of Accounts Question Part Score Sve for Late Attempts: 0 of 2 used Submit Answ The unadjusted trial balance of Blue Spruce Corp., a private company following ASPE, at Credit Cash Debit $11,800 58,450 $705 8,800 59,500 2,904 12,396 14,650 17,000 11,600 101,500 Accounts receivable Allowance for doubtful accounts FV-NI 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 15,700 7,500 60,000 104,900 93.760 223,200 9.960 171.500 2,250 9,400 3,150 27,500 7.000 825 $517,975 $517.975 Question 1 of 2 - / 10 $517,975 $517,975 Additional information: 1. On November 1, 2020, Blue received $9,960 rent from its lessee for a 12-month lease beginning on that date. This was credited to Rent Revenue. 2. Blue estimates that 8% 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 $1.150 on account. This error had not yet been corrected on December 31. 3. After a physical count, inventory on hand at December 31, 2020, was $80,000. (Use "Inventory" account for closing out the beginning inventory amount and recording the ending inventory amount.) 4. Prepaid insurance contains the premium costs of two policies: Policy A, cost of $1,248, two-year term, taken out on April 1, 2020: Policy B, cost of $1.656, three-year term, taken out on September 1, 2020. 5. 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. 7 On August 1, 2020. Blue purchased at par value 17 $1,000, 12% Larkspur, Inc. bonds, maturing on July 31, 2022. Interest is paid on July 31 and January 31. N. 8. On May 30, 2020, Blue rented a warehouse for $1,033 per month and debited Prepaid Rent for an advance payment of $12,396. 9. Blue's FV-Nl investments consist of shares with total market value of $9.400 as at December 31, 2020. 10 The FV-OCI investment is an investment of 460 shares in Yop Inc. with current market value of $20 per share as of December 31, 2020. 6. Prepare the year-end adjusting and correcting entries for December 31, 2020, using the information given. Record the adjusting entry for inventory using a Cost of Goods Sold account. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit -11 Prepare the year-end adjusting and correcting entries for December 31, 2020, using the information given. Record the adjusting entry for inventory using a Cost of Goods Sold account. (Credit account titles are automatically indented when amount entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit 1. Credit 2. (To correct incorrect entry.) I (To record bad debt expense.) 3. Question 1 of 2 Question Part Score Indicate which of the adjusting entries could be reversed. Journal Entry 1 Journal Entry 2 Journal Entry 3 Journal Entry 4 v Journal Entry 5 Journal Entry 6 Journal Entry 7 Journal Entry 8 Journal Entry 9 Journal Entry 10 e Textbook and Media List of Accounts Question Part Score Sve for Late Attempts: 0 of 2 used Submit Answ