12258 M 4? C) Done Assignment #1 - Winter 2023 2 T Name of each student in group 1 2 3 Adjusting entries Account 4 5 7 -- 60 Common shares 110 Retained earnings 212 5 5 O 140 68 268 872 12258 M 4? C) Done Assignment #1 - Winter 2023 2 T Sheet1 Sheet2 Sheet3[ Name of each student in group 1 2 3 Adjusting entries Account 4 5 7 -- 60 Common shares 110 Retained earnings 212 5 5 O 140 68 268 872 12:58 Done Assignment #1 - Winter 2023 2 Sheet1 Sheet2 Sheet3 Name of each student in group W N Adjusting entries Amount Amount You may need to add rows were applicable Account Dr. Cr. Rowe Inc. Trial balance Adjustments Adjusted trial balan Dr. Cr. Cash 125 Accounts receivable Allowance for doubtful accounts Inventory Prepaid insurance Supplies Land Building 120 Accumulated depreciation Tradename Accounts payable Wages payable Unearned revenue Common shares Retained earnings Sales revenue Cost of goods sold Wages expense Insurance expense Depreciation expense total 2709 2455 iii. Discontinued Operations Revenue recognition Criteria Supporting fact\fComplete your assignment in the excel spreadsheet provided. Prepare any necessary journal entries and adjusting entries for December 31st, 2022. Show your calculations. (18 marks) Figure out what opening retained earnings is assuming there are no errors in the trial balance. Put your adjustments in the adjustment columns and then prepare an adjusted trial balance (6 marks) iii. If the company decided to dispose of their Montreal division and this meet the criteria for a discontinued operation. The revenue for the division was $110 and expenses for the division were $124. The equipment had a cost of $20 and accumulated depreciation of $5. The company estimates that they can sell the equipment for $11 less $2 in auction costs. Prepare the discontinued operations section of the income statement. Assume the tax rate is 25%. (4 marks) I iv . Assume that the company sold 10 gift cards to customers for $20 each in December. The customers pay cash in December. The customers use the 6 gifts cards in January and the 4 gift cards in February. Explain when revenue should be recognized. Be sure to use GAAP to support your answer. (8 marks) Peer evaluation (4 marks) FOCUS BE Search 2 2 2 3 5 W X hp 44 DPI PYClipboard Font Alignment Undo Number E X V fx 1 =B1:G64 W N Adjusting entries Amount Amount You may need to add row Account Dr. Cr. 10 11 17 ad 19 20 21 22 23 6 24 25 Sheet1 Sheet2 Sheet3 Ready UX Accessibility. Investigate Mostly clear O Search hpH Rowe Inc . Trial balance Adjustments Dr. Adjusted trial balance Cr. Dr. Cr. 32 Cash Dr. Cr. 125 Accounts receivable 400 34 Allowance for doubtful accounts 15 35 Inventory 210 36 Prepaid insurance 60 37 Supplies 16 38 Land 100 39 Building 120 40 Accumulated depreciation 20 41 Tradename 81 42 Accounts payable 250 43 Wages payable 44 Unearned revenue 60 45 Common shares 110 46 Retained earnings 47 Sales revenue 2000 48 Cost of goods sold 140 49 Wages expense 1530 50 Insurance expense 51 Depreciation expense total 2709 2455 Sheet1 Sheet2 Sheet3 Ready 5 Accessibility Investigate L X OPC Q Search Mostly Gear hpPaste 17 Cell Styles ~ Alignment Number Styles Undo Clipboard Font E : XV fx B C D E A 50 51 DE B1:G64 2455 52 total 2709 53 54 ili Discontinued Operations 55 56 57 58 59 iv. Revenue recognition 60 Criteria Supporting fact 61 + 62 63 64 65 66 Sheet1 Sheet2 Sheet3 Ready 1X Accessibility: Investigate Q Search Mostly clear hp 17 144 hap 4 E C 10 R GPaste Undo Clipboard Font Alignment Number F12 5 Adjusting entries Account Dr. Cr. 10 12 13 3 17 4 19 20 5 22 23 6 24 25 26 27 28 Sheet1 Sheet2 Sheet3 Ready % Accessibility: Investigate Search Mostly clear 164 8 4 1. 60 39 40 42 44 45 Common shares 110 46 Retained earnings 212 47 550 48 140 68 268 872 60 Sheet1 Sheet2 Sheet3 Ready 7% Accessibility: Investigate Most hiclear O search a hp 10 53 Adjusting entries Account Dr. Cr. Un Sheet1 Sheet2 Sheet3 Ready 7% Accessibility: Investigate Mostly clear Q Search1 v XV fx 60 Common shares 110 Retained earnings 212 550 140 68 268 372 54 55 Sheet1 Sheet2 Sheet3 Ready 52 Accessibility: Investigate OFC Q Search Mostly clear