Your friends in ACCT 621 recently won the BC Children's Lottery and are planning to sell their business and move to Hawaii. They own the Vancouver Brewery Inc. that offers craft beer to the local clients in Vancouver. They have provided you with the following trial balance for the year ended, October 31, 2021. This is also their company's year-end.

Required:

They have asked you to review the above unadjusted trial balance and the additional information to prepare adjusting journal entries. These entries must be in accordance with the Generally Accepted Accounting Principles. Place your response together with supporting calculations on the next page. Explanations are not required.

1. The computer equipment is in excellent shape. It was purchased on July 1, 2020 and is expected to have a useful life of 4 years at which time it is expected to be sold for $4,000.

2. On February 1, 2021, they received and recorded in Revenue Earned a $20,000 cash advance. The payment covers an eight-month period starting June 1, 2021.

3. Each of Company's employees is paid $1,500 every two weeks - i.e.10 days of work. The six employees did not receive a pay cheque for the last six days of October 2021, as the bookkeeper was ill. The amounts were recorded and paid upon her return on November 4, 2021.

4. The Company's sales invoices for the last two weeks of October 2021 have not been prepared nor recorded. You estimate that $14,500 of services rendered during that period has not been recorded or billed to customers.

5. An inventory count completed at October 31, 2021 revealed inventory of $43,700.

6. On January 1, 2021 they purchased a two-year liability insurance policy for $4,800.

7. A letter from the brewery's landlord dated October 25, 2021 demands a total of $18,000 to be paid to cover the rent for the months of September to November 2021 inclusive. The monthly rent expense has been constant for the past three years.

8. Supplies on hand at October 31, 2021 are estimated at $3,000.