The unadjusted trial balance of Riverbed Ltd., a public company following IFRS, at December 31, 2023, is as follows: Debit Credit Cash $10,000 Accounts receivable 55,850 Allowance for doubtful accounts $720 FV-NI investments 8,450 Inventory 56,400 Prepaid insurance 2.892 Prepaid rent 11,850 FV-OCI investments 14,500. Bond investment at amortized cost 15,000 Land 11.800. Equipment 109,500 Accumulated depreciation-equipment 17,200 Accounts payable 8,900 Equipment Accumulated depreciation-equipment Accounts payable Bonds payable Common shares Retained earnings Sales revenue 109,500 17,200 8,900 60,000 104,600 86,387 221,700 Rent revenue 9,900 Purchases. 167,500 Purchase discounts 2,950 Freight out 9,000 Freight in 3,150 Salaries and wages expense 30,000 Interest expense 5,600 Miscellaneous expense 865 $512,357 $512,357 Additional information: 1. 2. 3. 4. 5. 6. 7. 8. On November 1, 2023, Riverbed received $9,900 rent from its lessee for a 12-month lease beginning on that date. This was credited to Rent Revenue. Riverbed 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 $1,150 on account. This error had not yet been corrected on December 31. After a physical count, inventory on hand at December 31, 2023, was $80,500. Prepaid insurance contains the premium costs of two policies: Policy A, cost of $1,344, two-year term, taken out on April 1, 2023; Policy B, cost of $1,548, 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 $85,500. On April 1, 2023, Riverbed 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, 2023, Riverbed purchased at par value 15 $1,000, 12% Marin Inc. bonds, maturing on July 31, 2025. Interest is paid on July 31 and January 31. On May 30, 2023, Riverbed rented a warehouse for $1,190 per month and debited Prepaid Rent for an advance payment of $14,280 9. Riverbed's FV-NI investments consist of shares with total market value of $9,270 as at December 31, 2023. 9. Riverbed's FV-NI investments consist of shares with total market value of $9.270 as at December 31, 2023. 10. The FV-OCI investment is an investment of 485 shares in Yop Inc., with current market value of $25 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 1. Unearned Rent Revenue Rent Revenue 2. Sales Revenue Accounts Receivable (To correct incorrect entry.) Debit 990 Credit 990 1150 1150