HRER TE VERSION BACK Tou have been assigned to examine the financial statements of Picard Corporation for the year ended December 31, 2020, as prepared following IFRS. Picard uses a periodic Inventory system. You discover the following situations: NENT 1. The physical Inventory count on December 31, 2019, improperly exduded merchandise casting $27,900 that had been temporarily stored in a public warehouse 2. The physical Inventory count on December 31, 2020, Improperly included merchandise with a cost of $15,650 that had been recorded as a sale on December 27, 2020, and was being held for the customer to pick up on January 4, 2021 A collection of $7,600 on account from a customer received on December 31, 2020, was not recorded in 2020. 4. Deprecation of $4,650 for 2020 on delivery trucks was not recorded In 2020, the company received $4,250 on Equipment account sale of fully depreciated equipment that originally cost 126,600. The company credited the proceeds from the sale to the Durino November 2020, a competitor company filed a patent Infringement out against card, claiming damages of $639,000. Picard's legal counsel has indicated that an unfavourable verdict is probable and a reasonable estimate of the courts award to the competitor 9461,000. Picard has not reflected or discosed this situation in the Financial statements 7. A large piece of equipment was purchased on January 3, 2020 for $42.000 and was charged in error to Repairs and Maintenance Expense. The equipment is estimated to have a service te of eight years and no residual value Picard normally uses the straight line depredation method for this type of equipment 3 Picard has a portfolio of temporary trading Investments reported a fair value. No dusting entry has been made wet in 2020, Information on carrying amount and fair valve is as follows: Carrying Amount Fair Value Dec 31, 2019 $106,000 $100,000 Dec. 31. 2020 $105,000 582,700 9 At December 31, 2020, an analysis of payroll information showed accrued sales of $12,000. The Salaries and Wages Payable account had balance of $17.500 at December 31, 2020, which was unchanged from its balance at December 31, 2019. 10. An $21.000 insurance premium paid on July 1, 2019, for a policy that reson June 24, 3022 www charged to insurance expense 11. A trademark was acquired at the beginning of 2019 for $36,600. Through an oversight amortization has been recorded since its acquisition. Picard expected the trademark to benefit the company for a total of approadmately 12 years with a residual valce. Assume that the trial balance has been prepared, the ending inventory as not yet been recorded, and the books have not been closed for 2020. Assuming also that all amounts are material prepare journal entries showing the adjustments that are required. anore Income tax considerations. It account title are sufuatically indented when the HRER TE VERSION BACK Tou have been assigned to examine the financial statements of Picard Corporation for the year ended December 31, 2020, as prepared following IFRS. Picard uses a periodic Inventory system. You discover the following situations: NENT 1. The physical Inventory count on December 31, 2019, improperly exduded merchandise casting $27,900 that had been temporarily stored in a public warehouse 2. The physical Inventory count on December 31, 2020, Improperly included merchandise with a cost of $15,650 that had been recorded as a sale on December 27, 2020, and was being held for the customer to pick up on January 4, 2021 A collection of $7,600 on account from a customer received on December 31, 2020, was not recorded in 2020. 4. Deprecation of $4,650 for 2020 on delivery trucks was not recorded In 2020, the company received $4,250 on Equipment account sale of fully depreciated equipment that originally cost 126,600. The company credited the proceeds from the sale to the Durino November 2020, a competitor company filed a patent Infringement out against card, claiming damages of $639,000. Picard's legal counsel has indicated that an unfavourable verdict is probable and a reasonable estimate of the courts award to the competitor 9461,000. Picard has not reflected or discosed this situation in the Financial statements 7. A large piece of equipment was purchased on January 3, 2020 for $42.000 and was charged in error to Repairs and Maintenance Expense. The equipment is estimated to have a service te of eight years and no residual value Picard normally uses the straight line depredation method for this type of equipment 3 Picard has a portfolio of temporary trading Investments reported a fair value. No dusting entry has been made wet in 2020, Information on carrying amount and fair valve is as follows: Carrying Amount Fair Value Dec 31, 2019 $106,000 $100,000 Dec. 31. 2020 $105,000 582,700 9 At December 31, 2020, an analysis of payroll information showed accrued sales of $12,000. The Salaries and Wages Payable account had balance of $17.500 at December 31, 2020, which was unchanged from its balance at December 31, 2019. 10. An $21.000 insurance premium paid on July 1, 2019, for a policy that reson June 24, 3022 www charged to insurance expense 11. A trademark was acquired at the beginning of 2019 for $36,600. Through an oversight amortization has been recorded since its acquisition. Picard expected the trademark to benefit the company for a total of approadmately 12 years with a residual valce. Assume that the trial balance has been prepared, the ending inventory as not yet been recorded, and the books have not been closed for 2020. Assuming also that all amounts are material prepare journal entries showing the adjustments that are required. anore Income tax considerations. It account title are sufuatically indented when the