The unadjusted trial balance of Metlock Inc., a private company following ASPE, at December 31, 2023, is as follows: Debit Credit Cash $17,660 Accounts receivable 102,200 Allowance for doubtful accounts $3,480 Inventory 60,700 Prepaid insurance 4,696 Bond investment at amortized cost 48,000 Land 29,100 Buildings 150,195 Accumulated depreciation-buildings 16,146 Equipment 32,880 Accumulated depreciation-equipment 5,480 Goodwill 16,850 Accounts payable 101.200 Bonds payable (20-year,8%) 174,000 Common shares 119.400 Retained earnings 45,600 Sales revenue 184,500 Retained earnings Sales revenue Rent revenue 45,600 184,500 11,175 Rent expense 22,950 Supplies expense 10,700 Purchases 98,700 Purchase discounts 800 Salaries and wages expense 54,600 Interest expense 12,550 $661,781 $661,781 Additional information: 1. 2. 3. 4. 5. 6. 7. Actual rent costs amounted to $1,530 per month. The company has already paid for rent for the first quarter of 2024. The building was purchased and occupied on January 1, 2021, with an estimated useful life of 15 years, and residual value of $29.100. (The company uses straight-line depreciation.) Prepaid Insurance contains the premium costs of several policies, including Policy A, cost of $2,644, one-year term, taken out on April 1, 2023; and Policy B, cost of $2.052, three-year term, taken out on September 1, 2023. A portion of Metlock's building has been converted into a snack bar that has been rented to the Sarasota Corp. since July 1. 2022, at a rate of $7.450 per year payable each July 1 in advance. One of the company's customers declared bankruptcy on December 30, 2023. It is now certain that the $2,200 the customer owes will never be collected. This fact has not been recorded. In addition, Metlock estimates that 3% of the Accounts Receivable balance on December 31, 2023, will become uncollectible. An advance of $600 to a salesperson on December 31, 2023, was charged to Salaries and Wages Expense. On November 1, 2021, Metlock issued 174 $1,000 bonds at par value. Interest is paid semi-annually on April 30 and October 31. 6. An advance of $600 to a salesperson on December 31, 2023, was charged to Salaries and Wages Expense. 7. 8. 9. 10. 10 On November 1, 2021, Metlock issued 174 $1,000 bonds at par value. Interest is paid semi-annually on April 30 and October 31. The equipment was purchased on January 1, 2021, with an estimated useful life of 10 years, and no residual value. (The company uses straight-line depreciation.) On August 1, 2023, Metlock purchased at par value 40 $1,200, 7% bonds maturing on July 31, 2025. Interest is paid on July 31 and January 31. The Inventory on hand at December 31, 2023, was $89,800 after a physical inventory count. (a) Prepare adjusting and correcting entries for December 31, 2023, using the information given. Record the adjusting entry for Inventory using a Cost of Goods Sold account. (List all debit entries before credit entries. 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 O for the amounts) No. Account Titles and Explanation Debit Credit 1. 3.