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The problem to be resolved: The following trial balance was extracted from the books of Movies To The Max Ltd at July 31, the end of the company's financial year

Accounting

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The problem to be resolved:

The following trial balance was extracted from the books of Movies To The Max Ltd at July 31, the end of the company's financial year. The company is owned by Samuel Maximo and is in the business of buying and selling movies on tapes.

Trial Balance as at July 31, 2021

 

 

The following additional information is available at July 31, 2021:

1. Insurance of $510,000 was paid on April 1, 2021, for six (6) -months to February 2022.
2. The computer and equipment were purchased on December 1, 2020 and have an estimated useful life of 10 years. This asset is depreciated on the double-declining depreciation method down to a residual value of $100,000.
3. The company has two deliver trucks and uses the units of production method to compute the depreciation charges. One of the trucks was purchased for $800,000 on August 1, 2018, and is recognized as truck A. The other which is recognized as truck B was purchased for $1,100,000 on October 1, 2020. The expected useful life of both truck is ten (10) years or 120,000 miles. And the residual value on both trucks is $200,000. In the 2018/2019 financial year truck A drove 12,000 miles, 18,000 miles in 2019/2020, and 21,000 miles in 2020/2021. Truck B drove 8,000 miles in 2020/2021. 
4. Wages earned by employees NOT yet paid amounted to 23,050 at July 31, 2021.
5. A physical count of inventory at July 31, 2021 reveals $165,070 worth of inventory on hand.
6. At July 31, 2021 $105,000 of the previously unearned sales revenue had been earned.
7. The aging of the Accounts Receivable schedule at July 31, 2021 indicated that the estimated uncollectible on account receivable should be $29,050.

REQUIRED: (A-F)

1. Prepare the necessary adjusting journal entries on July 31, 2021. [Narrations are not required] 
2. Prepare Columbus Ltd multiple-step income statement for the year ended July 31, 2021. 
3. Prepare Columbus Ltd statement of owner's equity for the year ended July 31, 2021. 
4. Prepare Columbus Ltd classified balance sheet at July 31, 2021.