Autumn Inc (AI) is a private organization based in the Durham Region that prepares seasonal décor. Autumn Inc has been rapidly expanding in recent years as homeowners have outsourced this type of service. AI has a large warehouse to store their inventory. The controller has provided you with the following unadjusted trial balance for the 12-months ended February 28, 2022. The owners of the company are interested in seeing the results. All amounts are in Canadian Dollars. Debits Credits Cash 12,436 - Accounts Receivable 47,312 - Allowance for Doubtful Accounts - 3,848 Inventory, Finished Goods 194,367 - Prepaid Insurance 18,000 - Supplies 4,227 - Plant & equipment 1,192,129 - Accumulated amortization, PP&E - 479,265 Accounts payable - 98,065 Income tax payable - 2,310 Long term debt - 245,000 Share capital, common shares - 40,000 Retained Earnings, Opening - 394,419 Revenue - 1,082,918 Cost of Goods Sold 613,459 - General and Admin 48,394 - Other expenses 110,477 - Salaries & wages 105,024 - Total 2,345,825 2,345,825 The Controller has provided the following information regarding transactions and adjustments during the period (assume these adjustments have NOT been recorded, unless otherwise specified): A review of invoices in March 2022 showed that utilities of $5,000 were not recorded by the bookkeeper A count of office supplies completed on February 28 showed office supplies on hand was $1,200 On February 25, the company learned that one of their customers went out of business and they will not be able to collect the $1,500 that the customer owed them. The company reviewed their receivables and estimated that they will not be able to collect 8 % of their (unadjusted) ending receivables. The company declared a cash dividend of $12,000 on February 25, 2022. $3,000 of the dividend was paid on February 25, and the remainder is payable in April 2022. Salaried employees are paid on the 1st Monday of every month. The pay period runs from Monday – Friday, and the employees do not work weekends. The payroll amount on Monday March 5, 2022 totalled $40,200. The company obtained a 6%, $35,000 bank loan on September 1, 2021. The bank loan was included in the “long term debt”. Interest on this new loan has not been recorded. The loan and interest payments are due September 1, 2022. The prepaid insurance relates to a 1-year general fire insurance policy that will expire on December 1, 2022. The full amount paid and recorded on December 1, 2021 was $18,000. Insurance is included in “General & Admin”. The ending inventory count showed that the company had $189,500 units on hand. The income tax rate for AI is 25%. Required: Prepare an Adjusted Trial Balance at February 28, 2022. Be sure to prepare the trial balance in a logical manner by element.

Autumn Inc (AI) is a private organization based in the Durham Region that prepares seasonal décor. Autumn Inc has been rapidly expanding in recent years as homeowners have outsourced this type of service. AI has a large warehouse to store their inventory. The controller has provided you with the following unadjusted trial balance for the 12-months ended February 28, 2022. The owners of the company are interested in seeing the results. All amounts are in Canadian Dollars. Debits Credits Cash 12,436 - Accounts Receivable 47,312 - Allowance for Doubtful Accounts - 3,848 Inventory, Finished Goods 194,367 - Prepaid Insurance 18,000 - Supplies 4,227 - Plant & equipment 1,192,129 - Accumulated amortization, PP&E - 479,265 Accounts payable - 98,065 Income tax payable - 2,310 Long term debt - 245,000 Share capital, common shares - 40,000 Retained Earnings, Opening - 394,419 Revenue - 1,082,918 Cost of Goods Sold 613,459 - General and Admin 48,394 - Other expenses 110,477 - Salaries & wages 105,024 - Total 2,345,825 2,345,825 The Controller has provided the following information regarding transactions and adjustments during the period (assume these adjustments have NOT been recorded, unless otherwise specified): A review of invoices in March 2022 showed that utilities of $5,000 were not recorded by the bookkeeper A count of office supplies completed on February 28 showed office supplies on hand was $1,200 On February 25, the company learned that one of their customers went out of business and they will not be able to collect the $1,500 that the customer owed them. The company reviewed their receivables and estimated that they will not be able to collect 8 % of their (unadjusted) ending receivables. The company declared a cash dividend of $12,000 on February 25, 2022. $3,000 of the dividend was paid on February 25, and the remainder is payable in April 2022. Salaried employees are paid on the 1st Monday of every month. The pay period runs from Monday – Friday, and the employees do not work weekends. The payroll amount on Monday March 5, 2022 totalled $40,200. The company obtained a 6%, $35,000 bank loan on September 1, 2021. The bank loan was included in the “long term debt”. Interest on this new loan has not been recorded. The loan and interest payments are due September 1, 2022. The prepaid insurance relates to a 1-year general fire insurance policy that will expire on December 1, 2022. The full amount paid and recorded on December 1, 2021 was $18,000. Insurance is included in “General & Admin”. The ending inventory count showed that the company had $189,500 units on hand. The income tax rate for AI is 25%. Required: Prepare an Adjusted Trial Balance at February 28, 2022. Be sure to prepare the trial balance in a logical manner by element.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1EB: Ella Maksimov is CEO of her own marketing firm. The firm recently moved from a strip mall in the...

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Question

	Debits	Credits
Cash	12,436	-
Accounts Receivable	47,312	-
Allowance for Doubtful Accounts	-	3,848
Inventory, Finished Goods	194,367	-
Prepaid Insurance	18,000	-
Supplies	4,227	-
Plant & equipment	1,192,129	-
Accumulated amortization, PP&E	-	479,265
Accounts payable	-	98,065
Income tax payable	-	2,310
Long term debt	-	245,000
Share capital, common shares	-	40,000
Retained Earnings, Opening	-	394,419
Revenue	-	1,082,918
Cost of Goods Sold	613,459	-
General and Admin	48,394	-
Other expenses	110,477	-
Salaries & wages	105,024	-
Total	2,345,825	2,345,825

The Controller has provided the following information regarding transactions and adjustments during the period (assume these adjustments have NOT been recorded, unless otherwise specified):

A review of invoices in March 2022 showed that utilities of $5,000 were not recorded by the bookkeeper
A count of office supplies completed on February 28 showed office supplies on hand was $1,200
On February 25, the company learned that one of their customers went out of business and they will not be able to collect the $1,500 that the customer owed them.
The company reviewed their receivables and estimated that they will not be able to collect 8 % of their (unadjusted) ending receivables.
The company declared a cash dividend of $12,000 on February 25, 2022. $3,000 of the dividend was paid on February 25, and the remainder is payable in April 2022.
Salaried employees are paid on the 1^st Monday of every month. The pay period runs from Monday – Friday, and the employees do not work weekends. The payroll amount on Monday March 5, 2022 totalled $40,200.
The company obtained a 6%, $35,000 bank loan on September 1, 2021. The bank loan was included in the “long term debt”. Interest on this new loan has not been recorded. The loan and interest payments are due September 1, 2022.
The prepaid insurance relates to a 1-year general fire insurance policy that will expire on December 1, 2022. The full amount paid and recorded on December 1, 2021 was $18,000. Insurance is included in “General & Admin”.
The ending inventory count showed that the company had $189,500 units on hand.
The income tax rate for AI is 25%.

Required:

Prepare an Adjusted Trial Balance at February 28, 2022. Be sure to prepare the trial balance in a logical manner by element.

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