Toronado Ltd. reported the following items in its unadjusted trial balance as of 31 December 20x4 for the 20x4 fiscal year. This trial balance is listed in alphabetical order. Note that this is a partial trial balance and does not include all accounts. Accounts have normal (debit or credit) balances. Adminiatration expense Accounts payable Accounts receivable 236,100 77,200 100,200 2,400 31,400 27,300 Allowance for doubtful accounts credit) Cash dividends declared Freight-out (delivery to customers) Gain on sale of automobile 1,B00 39,360 27,500 75,400 Insurance expense Intereat expense Loans receivable, 8 Merchandiae inventory, 1 January 89, B00 502,400 563,100 121,700 42,500 1,894,000 34,400 46,300 Notes payable, 6 Purchases Salaries and employee benefits Sales returns and allowances Sales revenues Selling expense Supplies expense Supplies inventory 1,000 568,700 32,400 65,B00 Retained earninga, 1 January Unearned revenue Utilities expense Other information The tax rate is 30 % , but no tax has yet been recorded. Closing merchandise inventory is $76,900. Closing supplies inventory is $1,700. The insurance expense represents a payment made on 1 May for a 24-month fire insurance policy. Customers owe $53,400 for goods delivered on 31 December; this amount has not yet been recorded. All sales are on account, except those that are prepaid. Unearned revenue represents all customer deposits received during the year. Of this amount, 60% is still unearned at the end of the yea Bad debt expense is to be recognized as 1% of total sales Interest on the note payable was last paid and recorded on 31 October The company owes $3,600 in utilities Interest on the loan receivable has not been paid or recorded all year . Required: 1. Prepare journal entries to reflect the required adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round "Bad debt expense" and "Income tax expense" to the nearest $100.) No Transaction General Journal Debit Credit 576,000 1 Cost of goods sold a X Inventory 576,000 X 700 2 Supplies inventory b. 700 Supplies expense 13,120x Prepaid insurance 3 C. 13,120x Insurance expense 53,400 4 Accounts receivable Sales 53,400 12,960 5 Uneamed revenue Sales 12,960 16,779x 6 f. Bad debt expense 16,779x Allowance for doubtful accounts 2,644X 7 Interest expense 9 Interest payable 2,644X 3,600 h. Utilities expense 3,6000 Accrued accounts payable Interest receivable 6,032 9 i. 6,032 Interest revenue 232,545X 10 Income tax expense 232,545x Income tax payable Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 2. Prepare an SCI based on the adjusted balances. (Do not round your intermediate calculations.) TORONADO Ltd. Statement of Comprehensive Income For Year Ended 31 December 20X4 $ 1,960,3600 Sales revenue Less: Sales retuns and allowances 42,500 $1,917,860 6,032 1,800 Interest revenue Gain on sale of auto $1,925,692 Total revenue Expenses Freight out 27,300 13,120 Insurance 121,700 45,600 16,779X 69,400 236,100 30,144 X) Salaries and benefits Supplies Bad debts Utilities expense Administrative expenses Interest expense 34,400 Selling expenses 576,000 Cost of goods sold $1,170,543 Earnings before income tax 755,149 232,545X $ 522,604 Income tax Earnings and comprehensive income Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Toronado Ltd. reported the following items in its unadjusted trial balance as of 31 December 20x4 for the 20x4 fiscal year. This trial balance is listed in alphabetical order. Note that this is a partial trial balance and does not include all accounts. Accounts have normal (debit or credit) balances. Adminiatration expense Accounts payable Accounts receivable 236,100 77,200 100,200 2,400 31,400 27,300 Allowance for doubtful accounts credit) Cash dividends declared Freight-out (delivery to customers) Gain on sale of automobile 1,B00 39,360 27,500 75,400 Insurance expense Intereat expense Loans receivable, 8 Merchandiae inventory, 1 January 89, B00 502,400 563,100 121,700 42,500 1,894,000 34,400 46,300 Notes payable, 6 Purchases Salaries and employee benefits Sales returns and allowances Sales revenues Selling expense Supplies expense Supplies inventory 1,000 568,700 32,400 65,B00 Retained earninga, 1 January Unearned revenue Utilities expense Other information The tax rate is 30 % , but no tax has yet been recorded. Closing merchandise inventory is $76,900. Closing supplies inventory is $1,700. The insurance expense represents a payment made on 1 May for a 24-month fire insurance policy. Customers owe $53,400 for goods delivered on 31 December; this amount has not yet been recorded. All sales are on account, except those that are prepaid. Unearned revenue represents all customer deposits received during the year. Of this amount, 60% is still unearned at the end of the yea Bad debt expense is to be recognized as 1% of total sales Interest on the note payable was last paid and recorded on 31 October The company owes $3,600 in utilities Interest on the loan receivable has not been paid or recorded all year . Required: 1. Prepare journal entries to reflect the required adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round "Bad debt expense" and "Income tax expense" to the nearest $100.) No Transaction General Journal Debit Credit 576,000 1 Cost of goods sold a X Inventory 576,000 X 700 2 Supplies inventory b. 700 Supplies expense 13,120x Prepaid insurance 3 C. 13,120x Insurance expense 53,400 4 Accounts receivable Sales 53,400 12,960 5 Uneamed revenue Sales 12,960 16,779x 6 f. Bad debt expense 16,779x Allowance for doubtful accounts 2,644X 7 Interest expense 9 Interest payable 2,644X 3,600 h. Utilities expense 3,6000 Accrued accounts payable Interest receivable 6,032 9 i. 6,032 Interest revenue 232,545X 10 Income tax expense 232,545x Income tax payable Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 2. Prepare an SCI based on the adjusted balances. (Do not round your intermediate calculations.) TORONADO Ltd. Statement of Comprehensive Income For Year Ended 31 December 20X4 $ 1,960,3600 Sales revenue Less: Sales retuns and allowances 42,500 $1,917,860 6,032 1,800 Interest revenue Gain on sale of auto $1,925,692 Total revenue Expenses Freight out 27,300 13,120 Insurance 121,700 45,600 16,779X 69,400 236,100 30,144 X) Salaries and benefits Supplies Bad debts Utilities expense Administrative expenses Interest expense 34,400 Selling expenses 576,000 Cost of goods sold $1,170,543 Earnings before income tax 755,149 232,545X $ 522,604 Income tax Earnings and comprehensive income Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted