5. XPac Sporting Goods Co. operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 2020, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:

Edge Co., a toy manufacturer, is in the process of preparing its financial statements for the year ended December 31, Year 8. Edge expects to issue its Year 8 financial statements on March 1, Year 9. For each item, two responses are required. Select from the option lists provided the appropriate adjustment amount, if any, and whether additional disclosure is required, either on the face of or in the notes for each financial statement below. Each choice may be used once, more than once, or not at all. If no adjustment is necessary, select "No entry required" in the Adjusted amount column and continue to the Additional disclosure required column. Show Transcribed Text 5. On January 30, Year 9, Edge issued $10 million bonds at a premium of $500,000. 6. On February 4, Year 8, the IRS assessed Edge an additional $400,000 for the Year 4 tax year. Edge's tax attorneys and tax accountants have stated that it is likely that the IRS will agree to a $100,000 settlement. C !!!!

INSTRUCTIONS: (1) Complete the adjustments section of the worksheet [WS]. Use the following information regarding unadjusted items. (a) On September 30, the firm received its utilities bill for the month of September amounting to P14,300. This remains to be unpaid at month-end. Record an adjustment for the utilities for the month of September. Accrued Expense (b) On September 21, the firm received a 6% 90-day note for money lent to Ling Ying Wei amounting to P400,000. The remainder of the amount pertains to a 12-month 9% promissory note received on May 1, 2021. Record an adjustment for the accrued interest from both notes for the month of September. Accrued Income (c) On September 30, an inventory of Warehouse Supplies and Office Supplies showed that items costing P127,000 and P12,000 were on hand respectively. Record an adjustment for the supplies used in September. Prepaid Expense (d) On July 1, 2021, the firm purchased a six-month insurance policy for P232,000. Record an…

Under accrual basis accounting, expenses are recognized when incurred. The following transactions occurred in January:a. American Express paid its salespersons $3,500 in commissions related to December sales offinancial advisory services. Answer from American Express’s standpoint.b. On January 31, American Express determined that it will pay its salespersons $4,200 in commissions related to January sales. The payment will be made in early February. Answer fromAmerican Express’s standpoint.c. The city of Omaha hired Waste Management, Inc., to provide trash collection servicesbeginning January 1. The city paid $12 million for the entire year. Answer from the city’sstandpoint.d. The University of Florida paid $10,000 in advance for refundable airline tickets to fly thebaseball team to a tournament in California. The first game will be played in March. Answerfrom the university’s standpoint.e. A Houston Community College employee worked eight hours, at $15 per hour, on January 31;payday is…