Transcribed image text: c. Prepaid Insurance The prepaid amount on the trial balance consists of a payment made to State Farm Insurance on October 1, 2020. The policy lasts 18 months. d. Inventory - LCM The company has the policy of stating all inventory on hand at the lower of cost and net realizable value. The company uses the direct method for any adjustments to inventory. NOTE - on the income statement use "Cost of Goods Sold from the trial balance - do not calculate the cost of goods sold. In the excel spreadsheet, see the tab "Inventory Detail to perform any necessary calculations. e. Record Depreciation on assets Depreciate the fixed assets according to the schedule. Depreciation is calculated on an annual basis. In the excel spreadsheet, see the tab "Fixed Asset Details" to perform any necessary calculations Useful Acquisition Date Accumulated Depreciation to 12/31/19 Depreciation Expense 2020 Accumulated Depreciation to 12/31/20 Life (Yrs) Adjustments to 12/31/20 Cost NBV 05/31/19 09/01/18 09/01/18 200,000.00 400,000.00 40,000.00 640,000.00 1 2 09/01/18 05/01/20 40 137,000.00 40 4,110,000.00 2,190,000.00 6,300,000.00 4 137,000.00 5 4 10 5 7 02/01/18 3 09/01/18 9 03/01/19 05/31/19 1 07/31/19 08/01/20 B 12/01/20 4 12/31/20 59,850.00 94,200.00 77,200.00 37,500.00 441,000.00 50,730.00 24,600.00 28,678.13 12,560.00 16,083.33 3,645.83 30,625.00 6 6 10 10 10 785,080.00 91,592.29 5 7 3 $ 7,725,080.00 $ 228,592.29 Item # Description Cost Selling Price 14566SA X205 30 HP Machine 145669A X205 30 HP Machine 147502A X205 30 HP Machine 147503A X205 30 HP Machine 147504A X205 30 HP Machine 360010X G350 60 HP Machine 1360011X G350 60 HP Machine 2360012X G350 60 HP Machine 3360013X G350 60 HP Machine +598750W 1500 100HP Machine 5598751W 1500 100HP Machine 6598752W L500 100HP Machine 7 3 27,000.00 27,000.00 27,000.00 27,000.00 27,000.00 71,800.00 71,800.00 71,800.00 71,800.00 197,200.00 197,200.00 197,200.00 1,013,800.00 63,250.00 63,250.00 63,250.00 63,250.00 63,250.00 95,800.00 95,800.00 95,800.00 95,800.00 206,000.00 206,000.00 206,000.00 Selling costs 7% 4,427.50 4,427.50 4,427.50 4,427.50 4,427.50 6,706.00 6,706.00 6,706.00 6,706.00 14,420.00 14,420.00 14,420.00 Cash & Equivalents FV-NI Investments Accounts Receivable - Trade Accounts Receivable - Projects Allowance for Doubtful Accounts (Trade) Inventory Prepaid Insurance FV-OCI Investments Contract Asset/Liability Land Building Building - Accumulated Depreciation Equipment Equipment - Accumulated Depreciation Intangible Assets (net) Goodwill Accounts Payable Deferred Tax Liability HST Payable Interest Payable Dividends Payable Wages Payable Notes Payable Bank Loan Common Stock Retained Earnings Revenue from Long-term Contract Revenue from long-term Contract - Proiect #1 Trial Balance At December 31, 2020 Debit Credit 1,664,544 801,300 4,375,772 1,510,000 126,508 1,013,800 480,000 212,000 121,880 640,000 6,300,000 137,000 785,080 91,592 323,500 1,350,000 956,000 204,000 196,000 500,000 8,000,000 4,000,000 3,376,862 13,724,150 65,000 8,826,400 Sales Revenue - Equipment Dividend Income Interest Income Gain on sale of truck Investment Income or Loss Unrealized Gain or Loss - OCI Cost of Goods Sold Construction Expenses Construction Expenses - Project #1 Equipment Rental (other expenses) Equipment Repairs (other expenses) Wages Payroll Tax Expense Interest Expense Utilities Insurance Expense Bad Debt Expense Commission Expense Advertising Expense Amortization Expense Depreciation Expense 994,188 204,868 1,417,760 177,220 20,000 126,000 32,800 TOTALS $ 31,377,112 $ 31,377,112 0 Net Income (Loss) TOTAL REQUIRED: 1. See the excel spreadsheet - all information should be recorded using the excel template. Update tabs in excel as needed - SHOW ALL WORK. 2. Prepare journal entries for the above transactions. 3. Post transactions to the worksheet and complete the worksheet