Question 4 L019 (10 marks) Envirocan Resources prepares adjusting entries monthly. In reviewing the accounts on March 31, Envirocan Resources discovered Interest of $1,050 had accrued on the note payable as at March 31. Unpaid and unrecorded salaries at March 31 totalled $32,850. The March telephone bill for $4.40 is unpaid and unrecorded at March 31. Envirocan normally pays rent in threemonth installments. At March 31, rent of $4,200 per month had not been paid for February, March, or April. Rent of $4,200 was correctly accrued at the end of February. P-F'P'E\" e. Envirocan pays commissions to the technicians at the rate of 4% of services performed. During March, total services performed were $410,000. Commissions are unrecorded and unpaid at March 31. Using the information provided above, prepare the monthly adiusting journal entries at March 31. Question 5 LO19 (8 marks) In reviewing the accounts on March 31 for the year just ended, DigiTech discovered the following: a. DigiTech owns the building that it occupies. Part of the building is rented to E-Quip Company for $4,150 per month. E-Quip had not paid the March rent as at March 31. b. Services performed but unrecorded at March 31 totalled $8,400. C. Interest for the month of March had accrued on a note receivable in the amount of $640. d. On February 1, DigiTech signed a $34,500 six-month contract to perform services for a client. DigiTech has been providing the services but as of March 31 no cash had been received. Using the information provided above, prepare the annual adjusting journal entries at March 31.Question 7 LO26 (12 marks) You are the accountant at Indigo. Refer to the image on the right for Indigo's Consolidated Balance Sheet as at Consolidated Balance Sheets March 29, 2014. Your manager has assigned you to calculate the current ratio, quick ratio, and debt to equity ratios for 2013 and 2014. As at As a March 30. April 1, As at 2013 2012 Round your answer to two decimal places. March 29, restated (thousands of Canadian dollar) 2014 (notes 4 and 22) (notes 4 and 27) ASSETS Current Cash and cash equivalents (note 6) 157.578 210.562 206,718 Accounts receivable 2014 5.582 7,126 12,810 2013 Inventories (note ? 218,979 216,533 229.199 Current Ratio Prepaid expenses 5,184 4,153 3.692 Total current assets 387.323 438,374 452,419 Property, plant and equipment inche & 58,476 58,903 66,928 Intangible assets (note 90 21.587 22,164 22,810 Equity investment (note 20) 598 968 961 Quick Ratio Deferred tax assets (note 100 44,604 48,731 48,633 Total assets 512,588 569,140 591,751 LIABILITIES AND EQUITY Current Debt to equity ratio Accounts payable and accrued liabilities (note 190 136,428 150,177 173,416 Unredeemed gift card liability (note 19) 46,827 $7.169 42,711 Provisions (note 11) 928 2.168 232 Deferred revenue 12,860 13,733 11,234 Income taxes payable 65 Current portion of long-term debt inobes 12 and 18) 584 1,060 Total current liabilities 197,627 214,031 228,718 Long-term accrued liabilities (note 19) 2.896 4.004 5,800 Long-term provisions (note 11) 164 460 Long-term debt inotes 12 and 18) 227 705 1,141 Total liabilities 200,914 218,818 236,119 Equity Share capital (note 13) 203,812 203,805 203,373 Contributed surplus (note 14) 8,820 8,128 7,039 Retained earnings 99.042 138,389 145,220 Total equity 311,674 350,322 355,632 Total liabilities and equity 512,588 569,140 591,751 See accompanying notes On behalf of the Board: Cleather Rusman Heather Reisman Michael Kirby Director Director