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Subtitle ragraph X 21 | Emphasis Heading 1 Normal Strong Title No Spac.. Subtle En Styles The Unadjusted Trial Balance columns of the partial worksheet which follows the exam includes the activity for 2020 but does not include any adjusting entries. The following information is given to you for the purpose of making year end adjusting entries. The tax rate for the current and prior periods is 30% You may need to add accounts to the worksheet, space is provided for that purpose. Add any new accounts in the approximately correct location. Please number your worksheet adjustments to correspond with the information below. Operating expenses such as insurance, advertising wages and maintenance are included in a single "operating expense" account. Here is the adjustment information: 1. Prepaid expenses include a one-year insurance contract in the amount of $1,800 paid in July of 2020. It covers the period August 1, 2020 to July 31, 2021. 2. A computer repair for $2,000 was made in December 2019, but the bill was not received until February of 2020 at which time it was recorded as an expense, 3. The equipment was purchased on Jan. 1. 2018 and is depreciated on a straight-line basis over 10 years with a $15,000 salvage value. 4. Bad debts expense was recorded each month as a percent of sales and several accounts were written off during the year. A year end aging schedule requires an allowance of $4,000 5. You received product that was shipped to you in December of 2020. It was purchased on credit The manufacturer has given you a price reduction of $500 due to surface blemishes. The bill has not yet been paid 6. The ending inventory is valued at $22,000. Prepare the cost of goods sold account 7. The Accounts Payable includes a bill for 5,000 Euros that was recorded as a purchase when the cost of a Euro was $135. The bill remains unpaid at the end of the year. On Dec 31, 2020, a Euro can be purchased for $1.42. 8. Dividends in the amount of $10,000 were declared on Dec 31, 2020 but will not be paid until January 2021. No entry has been recorded Required: Complete the attached worksheet. Enter the adjustments and key them to agree with the information number Add any accounts you need in the appropriate location Calculate and enter the balances for the adjusted trial balance. Complete the income statement and retained earnings Make no adjustments directly to beginning retained earings, use nominal accounts for any adjustments to retained earnings 20 Conde-bro Poda Page Lay Her derita X - C D G VI c Rusetts Voroni Add To Dec 31, 2020 De Income statement 2020 Di CI Red Earring Dec 31 2000 D Accutecevable Allowance for bad det Bilbo 9 Prepad penges 10 Equmer Accumulated depreciation Accoussay Income tax payat 14 15 Commons 16 Retained IT nadsted TH Des 312020 DI 79.860 80.000 2.800 36.500 13.20 215.000 40.000 12.000 4,000 20.000 180.000 490 300 20 Coach 20 To Purch 4000 25 Freight in Purchase returns 27 Operating 3000 103000 5000 4,90 freight | Prioutermala 1 bad deblesport chango guns Prowon olar 1 Tot TE 300/900 Wes Then Type testo DELL