The unadjusted trial balance of Pronghorn Ltd., a public company following IFRS, at December 31, 2023, is as follows: Debit Credit Cash $10,750 Accounts receivable 58,300 Allowance for doubtful accounts. $745 FV-NI investments 8.300 Inventory 57,400 Prepaid insurance 2.976 Prepaid rent 11.200 FV-OCI investments 14,750 Bond investment at amortized cost 18,000 Land 10,400 Equipment 102.500 Accumulated depreciation-equipment 17.600) Accumulated depreciation-equipment 17,600 Accounts payable 8,200 60,000 Bonds payable Common shares Retained earnings Sales revenue 101,100 86,676 220,900 Rent revenue 10,260 Purchases 168,500 Purchase discounts 2,800 Freight out 8,550 Freight in 3,450 Salaries and wages expense 27,000 Interest expense 5,400 Miscellaneous expense 805 $508,281 $508,281 Additional information: 1. 2. 3. 4. 5. 6. 7. 8. 9. On November 1, 2023, Pronghorn received $10,260 rent from its lessee for a 12-month lease beginning on that date. This was credited to Rent Revenue. Pronghorn estimates that 6% of the final Accounts Receivable balance on December 31, 2023, will be uncollectible. On December 28, 2023, the bookkeeper incorrectly credited Sales Revenue for a receipt of $1,000 on account. This error had not yet been corrected on December 31. After a physical count, inventory on hand at December 31, 2023, was $80,000. Prepaid insurance contains the premium costs of two policies: Policy A, cost of $1,320, two-year term, taken out on April 1. 2023; Policy B, cost of $1,656, three-year term, taken out on September 1, 2023. 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, 2022, the balance of Equipment was $89,500. On April 1, 2023, Pronghorn issued at par value 60 $1,000, 10% bonds maturing on April 1, 2024. Interest is paid on April 1 and October 1 On August 1, 2023, Pronghorn purchased at par value 18 $1,000, 10 % Larkspur, Inc. bonds, maturing on July 31,2025. Interest is paid on July 31 and January 31. On May 30, 2023, Pronghorn rented a warehouse for $1,030 per month and debited Prepaid Rent for an advance payment of $12,360. Pronghorn's FV-Nl investments consist of shares with total market value of $9.280 as at December 31, 2023. 10. The FV-OCI investment is an investment of 470 shares in Yop Inc., with current market value of $20 per share as at December 31, 2023. (a) Prepare the year-end 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. 2.