Answer the following question:

Presented below are selected information from James Corporation, a Canadian public company, for December 31, 2021:

Cash collections on sales $1,480,000

Retained earnings, January 1, 2021 820,000

Sales revenue 1,900,000

Accounts receivable 540,000

Selling and administrative expenses 225,400

Loss on sale of short-term investments 82,000

Cash dividends declared on common shares 34,000

Bank loan payable 1,860,000

Cost of goods sold 1,100,000

Rental revenue 320,500

Sales and marketing expenses 130,000

Interest expense 102,000

Gain on disposal of equipment 100,000

Merchandise inventory 460,000

Loss on write-down of inventory 25,000

Gain on revaluation surplus 220,000

Tax on continuing operations 131,220

The following additional information was also available:

A. The company estimates that bad debt expense is 9% of outstanding accounts receivable. The current balance in the Allowance for doubtful accounts is a credit of $14,000. The Bad Debt Expense account has a balance of zero and is included in "Selling and Administrative Expenses".

B. A customer paid $54,000 of rent in advance on October 1, 2021. The contract was for 1 year, starting October 1, 2021. The accountant recorded the advance payment as a credit to Rental revenue on the date it was received.

C. The bank loan payable has a 6% interest rate. Interest is payable at the beginning of each month.

D. In 2020 the accountant recorded $40,000 depreciation on the sales and marketing equipment twice in error. The error was discovered by the accountant at the end of 2021.

E. On September 1, 2021, James Corporation sold one of its segments to Studio Industries for a gain (pre-tax) of $550,000. During the period January 1 to August 31, the discontinued segment incurred an operating loss (pre-tax) of $480,000. These amounts are not included in any of the numbers shown above.

F. The company has a 20% tax rate and 40,000 common shares are outstanding during the year. The company records adjusting entries annually.

a) Provide the appropriate adjusting entries for Items A through F. Show calculations.

b) Prepare, in good form, a combined multiple step statement of comprehensive income for 2021. (Not all of the accounts listed are required. Remember to update the balances for your adjusting entries)