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1.Use the following adjustment information to complete the Adjustments columns of the work sheet. a. Depreciation on equipment. $14 b. Accrued salaries, $17 c. The $23 of unearned revenue has been earned d. Supplies available at December 31, $70 e. Expired insurance, $26 3. Extend the balances in the Adjusted Trial Balance columns of the work sheet to the proper financial statement columns. Compute totals for those columns including net income. WESTCOTT COMPANY Partial Work Sheet For the year ended December 31 Adjusted Adjustments Trial Balance Unadjusted Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. $ 76 $ 76 45 90 $ 90 Account Title Cash Accounts receivable Supplies Prepaid insurance Equipment Accum. depreciation Equip Accounts payable Salaries payable 40 61 $ 37 17
Unadjusted Trial Balance For the year ended December 31 Adjustments Adjusted Trial Balance Dr. Cr. Dr. 76 Income Statement Balance sheet Account Title Dr. Cr Cash $ 76 45 90 90 40 61 $ 37 17 23 76 54 Accounts receivable Supplies Prepaid insurance Equipment Accum depreciation Equip Accounts payable Salaries payable Uneamed revenue Common stock Retained camings Dividends Revenue Depreciation expense Equip Salaries expense Insurance expense Supplies expense Utilities expense Totals Net income Totals 28 29 23 05 3925 90S $ 763 0 0 0 0 $ $ 05.

2. Required information {The following information applies to the questions displayed below. The cash records and bank statement for the month of July for Glover Incorporated are shown below. SLOVER INCORPORATED Dash Account Records Culy 1, 2021, to July 31, 2021 Tah BC Cash BA July 1, 2021 $7,390 Jash + Receipte $3,690 July 31, 2021 $5,000 Date 7/9 7/21 7/31 Cash Receipts Dese. 3ales Sa.es Salaa Amount $2,630 3, 210 2,790 Cash - Disbursements $10,140 cesh Disbursements Date Check! 7/7 5.21 Rent 532 Salaries 7/19 333 Equipment 7/33 utilities 7/30 535 Adymeting Rount 1,570 2,030 0,200 534 970 1,370 $10, 140 $8,630 Member FDIC 2252390431 July 31, 3021 D.O. Box 123878 FIDELITY UNION Gotebo, OK 73041 You Can Bank On U (580) 377-ORIE Account Ho_der: s over Incorporated Account Numbexi 519 Main Street Gotebo, OK 73041 Statement Date: withdrawals and Beginning balance Deposits and Credits Debita July 1, 2021 NO. Total NO. Total SO, 050 3 $5,097 7 $ 9,957 Deposits and Credits withdrawal and Debits Amount Duta No. Ancunt Dec. 7/10 $2,630 DED 7/2 330 $ EED CHE 7/23 3,310 DEP 7/10 531 1,570 CHR 7/31 57 INT 7/14 2,030 7/18 470 NSE 7/22 533 4,500 CHE 7/26 570 EET 7/30 57 ΞΕ Ending balance July 31, 2021 $ 3,990 Daily balance Dete Amount 7/2 $7,390 7/10 8,450 7/14 7/18 2,950 7/22 7/26 3,990 7/30 3,933 7/21 $3,990 532 4,560 $5,097 $9,957 Desc. DEP Customer deposit NOTE Note collected EFT Electronic tunda transice INT Interest earned CHR Customer check SP Services NSP Nonsufficient funds Additional information: a. The difference in the beginning balances in the company's records and the bank statement relates to check $530, which is outstanding as of June 30, 2021 b. Check 4533 is correctly processed by the bank c. The EFT on July 26 relates to the purchase of office supplies 2. Record the necessary cash adjustments. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction ist Journal entry worksheet.

3.There is one problem in this section and you are required to answer ALL questions in the examination booklet. (33 marks; 33% total) - 40 minutes Remy Ltd manufactures specialised machinery for both sale and lease. On 1 July 2020, Remy Ltd leased a machine to Martin Ltd. The machine cost Remy Ltd $28,000 to manufacture and its fair value on 1 July 2020 is considered to be $37,276. Remy Ltd incurred $1,000 in initial direct costs to prepare the lease contract. The terms of the lease are as follows: The lease term is for 3 years, starting on 1 July 2020 Estimated useful life of the machine (zero scrap value) Annual lease payment, payable on 30 June each year $14,000 Estimated residual value of crane at end of lease term $8,000 Residual value guaranteed by Martin Ltd $3,000 Interest rate implicit in the lease 8% The annual lease payment includes an amount of $2,000 to cover annual maintenance and insurance costs. The lease is non-cancellable. Remy Ltd classifies the lease as a finance lease. Remy Ltd is considered to be a manufacturer/dealer under AASB 16. Assume straight-line depreciation for all calculations. NB: Round all your answers to the nearest dollar amount. REQUIRED (a) What is the definition of a finance lease? (1 mark) (b) Provide three reasons or indicators that support Remy Ltd.'s (lessor) classification of the lease as a finance lease. (1.5 marks) (e) Should Martin Ltd (lessee) classify the lease as a finance lease or as an operating lease? Justify your answer. (1 mark) (d) Prove that the interest rate implicit in the lease is 8% (1.5 marks) (e) Determine the lease receivable for Remy Ltd (lessor) at the inception of the lease at 1 July 2020. (1 marks) (1) Prepare the journal entries in the records of Remy Ltd (lessor) to account for the lease at 1 July 2020. (5 marks) (8) Determine the lease liability for Martin Ltd (lessee) at the inception of the lease. (1 marks) (h) Prepare the lease schedule for Martin Ltd (lessee): i.e., the table showing the interest and principle components of the lease payments. (4 marks) () Prepare the journal entries in the records of the Martin Ltd (lessee) to account for the lease for years ended 30 June 2021 and 30 June 2023. (17 marks) Semester 1 - Mid-Semester, 2019 BUSN2015_Semester 1 Company Accounting Page 9 of 14