X-cell Inc. completed all of its June 30, 2015, adjustments in preparation for preparing its financial statements, which resulted in the following adjusted trial balance. Adjusted Trial Balance a) Prepare the entry (entries) to record any impairment losses at June 30, 2015. Assume the company recorded no impairment losses in previous years. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). For each journal Accounts payable $5,000 entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases Accounts receivable 9,000 equity, choose '-Equity'. Accumulated depreciation, building 33,000 Accumulated depreciation, equipment General Journal Effect On 16,800 Page Gj1 Date Account/Explanation F Debit Credit Accumulated depreciation, furniture 9,800 Balance Sheet Allowance for doubtful accounts 400 Building 59,000 Cash 5,020 Equipment 42,000 Expenses, including cost of goods sold 344,000 b) Prepare a classified balance sheet at June 30, 2015. Furniture 25,000 (select one) Share capital 29,400 Balance Sheet Land 49,000 (select one) Merchandise inventory. 15,700 Long-term notes payable 36,000 Retained earnings 42,000 Sales 372.710 Unearned revenue 3,610 1) All accounts have normal balances. 2) $12,100 of the note payable balance is due by June 30, 2016. The final task in the year-end process was to assess the assets for impairment, which resulted in the following schedule. Asset Recoverable Value Land $51,100 Building 29,100 Equipment 23,200 Furniture 17,300 X-cell Inc. completed all of its June 30, 2015, adjustments in preparation for preparing its financial statements, which resulted in the following adjusted trial balance. Adjusted Trial Balance a) Prepare the entry (entries) to record any impairment losses at June 30, 2015. Assume the company recorded no impairment losses in previous years. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). For each journal Accounts payable $5,000 entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases Accounts receivable 9,000 equity, choose '-Equity'. Accumulated depreciation, building 33,000 Accumulated depreciation, equipment General Journal Effect On 16,800 Page Gj1 Date Account/Explanation F Debit Credit Accumulated depreciation, furniture 9,800 Balance Sheet Allowance for doubtful accounts 400 Building 59,000 Cash 5,020 Equipment 42,000 Expenses, including cost of goods sold 344,000 b) Prepare a classified balance sheet at June 30, 2015. Furniture 25,000 (select one) Share capital 29,400 Balance Sheet Land 49,000 (select one) Merchandise inventory. 15,700 Long-term notes payable 36,000 Retained earnings 42,000 Sales 372.710 Unearned revenue 3,610 1) All accounts have normal balances. 2) $12,100 of the note payable balance is due by June 30, 2016. The final task in the year-end process was to assess the assets for impairment, which resulted in the following schedule. Asset Recoverable Value Land $51,100 Building 29,100 Equipment 23,200 Furniture 17,300