Prepare a Journal Entry.

(This is my second time to post this question, nd i got wrong answer from the first one, please answer it correctly to make our payment in this website worth)

a. Calculate bad debt

On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance. Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be: 0-30 days 1% 31 60 days 5% 61 90 days 7.5% 91 120 days 10% Over 120 days 15%

b. FV-NI Investments

On December 31, 2020; the fair value of the short-term investments were: Redemption Corp $12.63 per share ALM Corp $23.98 per share

c. Prepaid Insurance

The prepaid amount on the trial balance consists of a payment made to State Farm Insurance on October 1, 2020. The policy lasts 18 months.

d. Inventory LCM

The company has the policy of stating all inventory on hand at the lower of cost and net realizable value. The company uses the direct method for any adjustments to inventory. NOTE on the income statement use Cost of Goods Sold from the trial balance - do not calculate the cost of goods sold. In the excel spreadsheet, see the tab Inventory Detail to perform any necessary calculations.

e. Record Depreciation on assets

Depreciate the fixed assets according to the schedule. Depreciation is calculated on an annual basis.

f. Trade a vehicle

On December 31, 2020 (after depreciation was recorded); the company traded the Toro lawn mower which was acquired on February 1, 2018 (asset #2018-02) for a 2012 Ford F150. In addition to the trade, the company paid $6,000 cash for the new truck. The fair value of the Toro lawn mower on this date was $18,000. Assume that this transaction HAS commercial substance. Once this new asset is purchased, do not depreciate it since it was purchased on the last day of the year.

g. Investments FV-OCI

On December 31, 2020, the fair value per share of Hub Cap Company was $11.25 per share. Aylmer decided to sell its shares in Hub Cap Company at that time (sale was not recorded on the trial balance). Hint: after you record the sale, be sure to close the gain or loss on sale to retained earnings similar to how the sale was accounted for in TR11-7 in class.

h. Bank Loan

The loan for $8,000,000 was borrowed on January 1, 2020. Interest on the bank loan is 2.75% annually. Interest has to be paid every January 2, so the first interest payment is due January 2, 2021. No principal payments were made during the year. Of the bank loan, $2,000,000 is due June 30, 2021, with the remainder due June 30, 2026.

i. Notes Payable This is a short-term note. The company borrowed money from JRT Investments on October 31, 2020, for 3 months. The principle, along with interest is to be repaid on January 31, 2021. The interest rate is 1.5%.

j. Long-term contracts

The company uses the percentage of completion method for recording long-term contracts. The company has two long-term contracts with details below provided for one of the projects.

Project 1- Downtown Hotel & Shopping Centre

Contract price is $20,000,000.

The expected completion date is 2022

k. Accrue wages

Employees work Monday to Friday and employees are paid weekly. December 31, 2020, is a Thursday. Assume that hourly employees work 8 hours per day and that there are 52 weeks a year for salaried employees.

L. Intangible Assets

Amortize the intangibles according to the schedule. Amortization is recorded on an annual basis. In the excel spreadsheet, see the tab Intangible Assets to perform any necessary calculations

m. Dividends

On December 31, 2020, a dividend of $0.70 was declared to shareholders of record on January 10, 2021, to be paid on January 29, 2021.

n. Taxes To be ignored for this.