The unadjusted trial balance of Teal Mountain Inc., a private company following ASPE, at December 31, 2020, is as follows: Debit Credit Cash $17,490 Accounts receivable 106,900 Allowance for doubtful accounts $3,580 Inventory 61,300 Prepaid insurance 4,712 Bond investment at amortized cost 55,020 Land 30,600 Buildings 159,000 Accumulated depreciationbuildings 25,600 Equipment 33,600 Accumulated depreciationequipment 6,?20 Goodwill 16,250 Accounts payable 100,100 Bonds payable (20-year, 6%] 162,000 Common shares 119,100 Retained earnings 50,84? Sales revenue 199,000 Rent revenue 10,2?5 Rent expense 20,400 Supplies expense 10,000 Purchases 98,100 Purchase discounts 950 Salaries and wages expense 51,400 Interest expense 12,600 $6?8,1?2 $6?8,1?2 Additional information: 10. Actual rent costs amounted to $1,360 per month. The company has already paid for rent for the rst quarter of 2021. The building was purchased and occupied on January 1, 2018, with an estimated useful life of 10 years, and residual value of $31,800. (The company uses straightline depreciation.) Prepaid insurance contains the premium costs of several policies, including Policy A, cost of $2,624, oneyear term, taken out on April 1, 2020: and Policy B, cost of $2,088. \"dwree-year term. taken out on September 1, 2020. A portion of Teal Mountain 's building has been converted into a snack bar that has been rented to the Monty Corp. since July 1, 2019, at a rate of $6,850 per year payable each July 1 in advance. One of the company's customers declared bankruptcy on December 30, 2020. It is now certain that the $2,900 the customer owes will never be collected. This fact has not been recorded. In addition, Teal Mountain estimates that 5% of the Accounts Receivable balance on December 31, 2020, will become uncollec'dble. An advance of $620 to a salesperson on December 31, 2020, was charged to Salaries and Wages Expense. On November 1, 2018, Teal Mountain issued 162 $1,000 bonds at par value. Interest is paid semiannually on April 30 and October 31. The equipment was purchased on January 1, 2018, with an estimated useful life of 10 years, and no residual value. {The company uses straightline depreciation.) On August 1. 2020, Teal Mountain purchased at par value 42 $1,310. 8% bonds maturing on July 31, 2022. Interest is paid on July 31 and January 31. The inventory on hand at December 31, 2020, was $90,200 after a physical inventory count. (Use "Inventory" account for closing out the beginning inventory amount and recording the ending inventory amount.)
