0 years, $10,000 residual value Schedule Cost /112018 12/31/2020 ctor may require this to be Reference cialty A Sales Revenue Cash Accounts Payable a new 260,000 Bal. 2,110,000 Bal. Bal. 406,367 1.200 1,940 () 405,627 260,000 Bal 2,110,000 Bal. Interest Revenue Petty Cash Interest Payable 12,000 Bal. 1,200 (z) 13,200 Bal. Bal 250 0 Bal al 250 Note Payable Cost of Goods Sold Accounts Receivable 600,000 Bal. Bal. 280,000 Bal.911,000 600,000 Bal. Bal 280,000 Bal 911,000 Allowance for Bad Debts Backer, Capital Franchise Fee Expense 530,000 Bal. Bal 211,000 Bal. 530,000 Bal. Bal.211,000 Salaries Expense Merchandise Inventory Bal 99,000 Backer, Withdrawals Bal. 3,000 Bal. 120,000 Print Done Clear All rk-Ja. 1 of 1 (1 complete) Reference Backer, Withdrawals Salaries Expense Merchandise Inventory Bal. 99,000 Bal. 3,000 Bal 120,000 Bal al. 120,000 Bal 99,000 3,000 Utilities Expense Office Supplies Bal. 13,000 Bal. 1,226 Bal. 1,226 Bal 13,000 Prepaid Insurance Insuranae Expense Bal 3.200 Bal. Bal 3.200 Interest Receivable Supplies Expense Bal Bal. Notes Receivable Bad Debts Expense Bal. 300,000 Bal Bal. 300.000 PrintDone Clear All rmay require this to be | 1011(1 complete) Referenoe Notes Receivable Bad Debts Expense Bal. 300,000 Bal Bal. 300,000 Bank Expense Land 1,940 Bal 80,000 Bal. 1,940 Bal. 80,000 Credit Card Expense Bal 1,950 Building Bal. 850,000 Bal. 1,950 Bal. 850,000 Depr. Expense-Building Accum. Depr-Building Bal 0 Bal Depr. Expense-Store Fixtures Store Fixtures Bal. Bal. 120,000 Depr. Expense-Office Equipment Print Done Clear A r may require this to be | |or 1 (1 complete) Referenoe Store Fixtures Bal. 120,000 Depr. Expense-Office Equipment Bal 120,000 Bal Accum. Depr-Store Fixtures Amortization Expense- Franchise 0 Bal Bal Office Equipment Bal. 60,000 Interest Expense Bal. 60,000 Bal. Accum. Depr-Office Equipment Cash Short and Over Bal. 0 Bal. Bal Franchise Bal. 52,000 Bal 5200 Print Done Clear All k-Ja may require this to be 1 or 1 (1 complete) More Into b. Paid $52,000 cash for a SAC Franchise c. Paid S330,000 cash and issued a S600 ,000, 10-year, 6% notes payable for land with an existing building. The assets had the following market values: Land, $80,000; Building $850,000 d. Paid $120,000 for store fixtures e. Paid $60,000 for office equipment. f. Paid $1,100 for office supplies. g. Paid $3,200 for a two-year insurance policy h. Purchased appliances from SAC (merchandise inventory) on account for $410,000. i. Established a petty cash fund for $250. j. Sold appliances on account to NOP Contractors for $225,000, terms n/30 (cost, $90,000) k. Sold appliances to Allen Contracting for $160.000 (cost $69.000), receiving a 6-month, | L Recorded credit card sales of S65 000 (cost, S29.000), net of processor fee of 3%. 15% note. m. Received payment in full from NOP Contractors n. Purchased appliances from SAC on account for $600,000 o. Made payment on account to SAC, $290,000 P. Sold appliances for cash to CB Home Builders for $400,000 (cost $195,000) q. Received payment in full on the maturity date from Allen Contracting for the note r. Sold appliances to Neard Contracting for $300.,000 (cost $144000), receiving a 9-month, 15% note s. Made payment on account to SAC, $460.000 t. Sold appliances on account to various businesses for $960,000, terms n/30 (cost, $384.000) u.Collected $680.000 cash on account v. Paid cash for expenses Salaries, $120,000 Utilities. $13,000 w. Replenished the petty cash fund when the fund had $117 in cash and petty cash tickets for $126 for office supplies .Backer withdrew $3,000 y, Paid the franchise fee to SAC of 10% of total sales of S2 110.000 Done 1o11 (1 complete) Requirements 4. In preparation for preparing the adjusting entries, complete depreciation schedules for the first five years for the depreciable plant assets, assurming the assets were purchased on January 2, 2018: a. Building, straight-line, 30 years, $10,000 residual value b. Store Fixtures, straight-line, 15 years, no residual value c. Office Equipment, double-declining-balance, 5 years, $6,000 residual value. 5. Record adjusting entries for the year ended December 31, 2018 a. One year of the prepaid insurance has expired b. Management estimates that 10% of Accounts Receivable will be c. An inventory of office supplies indicates $1,076 of supplies have been d. Calculate the interest eamed on the outstanding Neard Contracting note receivable Assume the note was received on October 31. Round to the nearest dollar e. Record depreciation expense for the year f. Record amortization expense for the year on the franchise, which has a 10-year life g. Calculate the interest owed on the note payable. Assume the note was issued on January 1 6. Post adjusting entries and prepare an adjusted trial balance. 7. Prepar e a multi-step income statement and statement of owner's equity for the year ended December 31, 2018. Prepare a classified balance sheet as of December 31, 2018. Assume Interest Receivable is a current asset and Interest Payable is a current liability. Evaluate the company's success for the first year of operations by calculating the following ratios. Round to two decimal places. Comment on the results a. Liquidity 8. i. Current ratio li. Acid-test ratio ili. Cash ratio b. Efficiency i. Accounts receivable turnover li. Day's sales in receivables ii. Asset turnover iv. Rate of return on total assets Print Done mework-Ja