QUESTION 1 Intelligent Toys, Inc Unadjusted Trial Balance As at 31 March 2022 Dr $ Cr...

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QUESTION 1 Intelligent Toys, Inc Unadjusted Trial Balance As at 31 March 2022 Dr $ Cr $ Accounts Payable 143,900 Accounts Receivable 271,160 Accumulated Depreciation - Building 496,800 Allowance for Doubtful Accounts 5,260 Bad Debt Expense Building 6,480,000 Cash 1,207,278 Depreciation Expense - Building Depreciation Expense - Equipment Dividends Payable Freight-in Freight-out 335,200 400 500 Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Long-term Investment Gain/ Loss on Disposal Merchandise Inventory Miscellaneous Expense Notes Payable 2,500,000 6,128 650,000 150,000 Ordinary Share Dividends Distributable Prepaid Insurance 12,000 Purchase Discounts Purchase Returns and Allowances 3,718 1,200 Purchases 193,000 Retained Earnings 112,348 Salaries Expense 37,800 Salaries Payable Sales Returns and Allowances 980 Sales Revenue 446,960 Share Capital - Ordinary 4,400,000 Share Capital - Preference 4,000,000 Share Premium - Ordinary 1,000,000 Share Premium - Preference 200,000 Share Premium - Treasury Supplies 10,140 Supplies Expense Treasury Shares 46,000 Unearned Rent Revenue 120,000 Utilities Expense XXXXXXXX XXXXXXXX The following information is available on 31 March 2022 for preparation of adjusting entries: (a) Electricity incurred for the month amounted to $5,600. (b) All employees worked for the whole month of March. The employees have a total salary of $27,000 for a five-day work week. (c) All employees work a five-day week and are paid every four weeks on the following Thursday, based on the number of days they have worked in the last four weeks. Last payment day is on 10 March 2022 (Thursday). ITI paid $108,000 ($27,000 x 4) for salary up to 9 March 2022 (Wednesday). Employees are entitled to full pay on public holidays but not on Saturday and Sunday. Building is recorded at historical cost and their estimated useful lives are 25 years. No residual value is expected for the building. The building was acquired on 1 April 2020. The company uses straight- line method for all buildings. (d) The prepaid insurance was paid in January 2022 covering a 12-month general insurance from 1 January 2022 to 31 December 2022. (e) Physical count showed that $4,200 of supplies remained on hand. (f) Allowance for bad debt is estimated based on 15% of the closing accounts receivable balance due to dramatical down turn of the economy. (g) Recognize interest expense for the month. (Information of the notes payable: On 13 March 2022, ITI purchased $150,000 inventory by signing a 90-day, 10% notes payable.) Intelligent Toys, Inc ("ITI") is a well establish toys trading company which adopts the periodic system. ITI prepares its financial statements on a monthly basis. Required: Journalize the adjusting entries for the information (a) to (g) for the month of March at 31 March 2020. Leave the space blank if no entry is required. All the accounts in the chart of accounts are listed in the Unadjusted Trial Balance provided. No Explanation is required. Please copy and paste the account names from the provided Unadjusted Trial Balance. Input numerals for amount only, no "," or "$" sign are needed, eg, five thousand should be input as 5000. QUESTION 1 Intelligent Toys, Inc Unadjusted Trial Balance As at 31 March 2022 Dr $ Cr $ Accounts Payable 143,900 Accounts Receivable 271,160 Accumulated Depreciation - Building 496,800 Allowance for Doubtful Accounts 5,260 Bad Debt Expense Building 6,480,000 Cash 1,207,278 Depreciation Expense - Building Depreciation Expense - Equipment Dividends Payable Freight-in Freight-out 335,200 400 500 Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Long-term Investment Gain/ Loss on Disposal Merchandise Inventory Miscellaneous Expense Notes Payable 2,500,000 6,128 650,000 150,000 Ordinary Share Dividends Distributable Prepaid Insurance 12,000 Purchase Discounts Purchase Returns and Allowances 3,718 1,200 Purchases 193,000 Retained Earnings 112,348 Salaries Expense 37,800 Salaries Payable Sales Returns and Allowances 980 Sales Revenue 446,960 Share Capital - Ordinary 4,400,000 Share Capital - Preference 4,000,000 Share Premium - Ordinary 1,000,000 Share Premium - Preference 200,000 Share Premium - Treasury Supplies 10,140 Supplies Expense Treasury Shares 46,000 Unearned Rent Revenue 120,000 Utilities Expense XXXXXXXX XXXXXXXX The following information is available on 31 March 2022 for preparation of adjusting entries: (a) Electricity incurred for the month amounted to $5,600. (b) All employees worked for the whole month of March. The employees have a total salary of $27,000 for a five-day work week. (c) All employees work a five-day week and are paid every four weeks on the following Thursday, based on the number of days they have worked in the last four weeks. Last payment day is on 10 March 2022 (Thursday). ITI paid $108,000 ($27,000 x 4) for salary up to 9 March 2022 (Wednesday). Employees are entitled to full pay on public holidays but not on Saturday and Sunday. Building is recorded at historical cost and their estimated useful lives are 25 years. No residual value is expected for the building. The building was acquired on 1 April 2020. The company uses straight- line method for all buildings. (d) The prepaid insurance was paid in January 2022 covering a 12-month general insurance from 1 January 2022 to 31 December 2022. (e) Physical count showed that $4,200 of supplies remained on hand. (f) Allowance for bad debt is estimated based on 15% of the closing accounts receivable balance due to dramatical down turn of the economy. (g) Recognize interest expense for the month. (Information of the notes payable: On 13 March 2022, ITI purchased $150,000 inventory by signing a 90-day, 10% notes payable.) Intelligent Toys, Inc ("ITI") is a well establish toys trading company which adopts the periodic system. ITI prepares its financial statements on a monthly basis. Required: Journalize the adjusting entries for the information (a) to (g) for the month of March at 31 March 2020. Leave the space blank if no entry is required. All the accounts in the chart of accounts are listed in the Unadjusted Trial Balance provided. No Explanation is required. Please copy and paste the account names from the provided Unadjusted Trial Balance. Input numerals for amount only, no "," or "$" sign are needed, eg, five thousand should be input as 5000.

Answer rating: 100% (QA)

Adjusting Entries for Intelligent Toys Inc Date March 31 2022 Unadjusted Trial Balance Account Debit Credit Accounts Receivable 143800 Accumulated Dep... View the full answer