The following trial balance was extracted from the books of Movies To The Max Ltd atDecember 31, the end of the company's financial year. The company is owned by SamuelMaximo and is in the business of buying and selling movies on tapes.Trial Balance as at July 31, 2021Trial BalanceA/C NameDRCRCashAccounts receivableAllowance for bad debtMerchandise InventoryStore SuppliesPrepaid Rent|Computer and Equipment|Accumulated depreciation -Computer and EquipmentDelivery Truck|Accumulated depreciation - Delivery Truck|Accounts payableWages payableUnearned Sales revenue750,000290,50025,000167,050120,000510,0001,200,0001,900,000150,000400,000150,000Notes Payable, Long TermSamuel Maximo, CapitalSamuel Maximo, Withdrawals1,000,0002,500,000105,000Sales revenue2,833,580Sales discount73,250Sales returns and allowancesCost of goods sokdWages ExpenseRent ExpenseDepreciation Expense - Computer and EquipmentDepreciation Expense -Delivery TruckStore Supplies Expense|Utilities ExpenseBad Debt ExpenseInterest ExpenseTotal52,100495,000325,125680,00065,000220,000105,5557,058,5807,058,580The following additional information is available at July 31, 2021:(i)Insurance of $510,000 was paid on April 1, 2021, for six (6) -months to February2022.(ii)The computer and equipment were purchased on December 1, 2020 and have anestimated useful life of 10 years. This asset is depreciated on the double-decliningdepreciation method down to a residual value of $100,000. (iii)The company has two deliver trucks and uses the units of production method tocompute the depreciation charges. One of the trucks was purchased for $800,000 onAugust 1, 2018, and is recognized as truck A. The other which is recognized as truckB was purchased for $1,100,000 on October 1, 2020. The expected useful life ofboth truck is ten (10) years or 120,000 miles. And the residual value on both trucks is$200,000. In the 2018/2019 financial year truck A drove 12,000 miles, 18,000 milesin 2019/2020, and 21,000 miles in 2020/2021. Truck B drove 8,000 miles in2020/2021.(iv)Wages earned by employees NOT yet paid amounted to 23,050 at July 31, 2021.(v)A physical count of inventory at July 31, 2021 reveals $165,070 worth of inventoryon hand.(vi)At July 31, 2021 $105,000 of the previously unearned sales revenue had beenearned.(vii)The aging of the Accounts Receivable schedule at July 31, 2021 indicated that theestimated uncollectible on account receivable should be $29,050.REQUIRED: (A-F)а)Prepare the necessary adjusting journal entries on July 31, 2021. [Narrations are notrequired]b)Prepare Columbus Ltd multiple-step income statement for the year ended July 31, 2021.c)Prepare Columbus Ltd statement of owner's equity for the year ended July 31, 2021.d)Prepare Columbus Ltd classified balance sheet at July 31, 2021.e)Prepare the closing entriesf)Prepare the post-closing trial balance

Name: The following trial balance was extracted from the books of Movies To
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: The following trial balance was extracted from the books of Movies To The Max Ltd atDecember 31, the end of the company's financial year. The company is owned by SamuelMaximo and is in the business of buying and selling movies on tapes.Trial Balance