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*Application Problem 3-9A The trial balance for Cozy Fireplaces Inc. for December 31, 2020, follows:
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*Application Problem 3-9A The trial balance for Cozy Fireplaces Inc. for December 31, 2020, follows: Cash \$ 88,600
Accounts receivable 37,700
Inventory 94,200
Supplies 5,100
Prepaid rent 46,000
Land 80,300
Building 149,000
Accumulated depreciation, building \$19,350
Accounts payable 21,400
Wages payable 0
Interest payable 0
Income tax payable 0
Unearned revenue 12,400
Bank loan payable 40,000
Common shares 151,000
Retained earnings 22,150
Sales revenue 835,000
Cost of goods sold 484,600
Wages expense 95,700
Rent expense 0
Supplies expense 0
Depreciation expense 0
Interest expense 0
Miscellaneous expenses 14,100
Income tax expense 0
Dividends declared 6,000 Totals \$1,101,300 \$1,101,300
Additional information for adjusting entries: 1. The deposits from customers were for future deliveries. A5 at December 31, three-quarters of these goods had been delivered.
2. There Is \$2,000 In wages owed at year end. 3. Rent is paid in advance on the last day of each month. There was a balance of \$3,000 in the Prepaid Rent account on January 1, 2020. At the end of January, \$3,000 was paid for the February rent and was debited to the
Prepaid Rent account. All the rent payments during the year were treated the same way. The rent for July to December increased to \$4,000 per month. (Hint: Determine the amount of rent expense for 2020, as well as the
correct amount that has been prepaid for 2021, and make an adjustment that will bring both these accounts to the correct balances.) . A count of the supplies at year end revealed that \$500 of supplies were still on hand.
. The building Is belng depreciated over 20 years with a residual value of \$20,000.
. The bank loan was taken out on April 1, 2020. The ﬁrst interest payment is due on April 1, 2021. The interest rate is 9%. . Income tax for the year should be calculated using a tax rate of 30%. (Hint: After you ﬁnish the other adjusting entries, you will have to determine the income before income tax and then calculate the tax as 30% of this
amount.) \Iaxu-I-h Prepare the adjusting entries for the year 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select &quot;No Entry&quot; for the account
titles and enter 0 for the amounts.)

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