1 Following are the events for Appliance Fixation during 2021. 3 a) Jan. 4, 2021 - Appliance Fixation paid the salaries payable from 2020. b) Jan. 6, 2021 - Appliance Fixation purchased 40 appliances for later sale at a cost of $16,450. The appliances were purchased on account with the terms 1/10,n/30. c) Jan. 8, 2021 - The company paid $1,170 cash for supplies to be used by the business. d) Jan. 12, 2021 - The company acquired an additional $65,000 cash from the issue of common stock. e) Jan. 15, 2021 - Appliance Fixation decided to pay $5,000 of its accounts payable balance from event (b) before the discount period expired, so Appliance Fixation first applied the discount to the $5,000 amount so it could reduce its accounts payable balance (note: the actual payment is described in event (f) below). After applying this discount, Appliance Fixation's inventory cost was $410 for each item. f) Jan. 15, 2021 - Appliance Fixation paid cash to settle parts of its accounts payable balance as described in event (e). g) Feb. 9, 2021 - The company provided $46,800 of appliance repair services. The services were billed to the customers. h) Feb. 12, 2021 - The company sold 25 appliances for a total price of $23,400. Sales of $16,900 were on account, while $6,500 were cash sales. i) Feb. 12, 2021 - The cost to Appliance Fixation of each product sold in event (h) was $410. j) Feb. 25, 2021 - The company paid the workers a total of $10,920 in salaries. k) Feb. 26, 2021 - Paid cash to settle additional accounts payable in the amount of $2,140. The payment was made after the discount period expired. I) Mar. 1, 2021 - Appliance Fixation rented a business van, paying $6,240 in advance for a one year rental. m) Mar. 18, 2021 - Collected $49,400 of accounts receivable. n) Apr. 20, 2021 - Appliance Fixation performed $18,200 worth of appliance repair services for a local college; $15,600 was on account and $2,600 was for cash. o) May. 1, 2021 - Paid $9,360 for one year's rent on office space in advance. p) May. 5, 2021 - Appliance Fixation purchased, and paid cash, for 10 appliances for later sale at a 18 cost of $414 each. q) May. 21, 2021 - The company paid accounts payable of $1,870, but not within the discount period (the company uses the gross method). r) Jun. 1, 2021 - Appliance Fixation rented a larger building; paid $8,580 for 12 months' rent in advance. 5) Jun. 8, 2021 - Appliance Fixation purchased, and paid cash, for 5 appliances for later sale at a cost of $415 each. t) Jun. 9, 2021 - Appliance Fixation purchased 5 appliances for later sale at a cost of $420 each. The 22 purchase was on account. u) Jun. 16,2021 - The company sold 27 appliances for a total price of $36,400. Sales of $26,000 were 23 on account, while $10,400 were cash sales. v) Jun. 16, 2021 - Record the cost of goods sold related to the sale from event (u) using the perpetual 24 FIFO method. w) Jul. 1, 2021 - Paid employees a total of $14,300 cash for salaries employees earned during the current period. x) Jul. 15, 2021 - Made a full refund to a dissatisfied customer who returned an appliance. The sale had been a cash sale for $850 with a cost of $415. Record the revenue part of the event. y) Jul. 15, 2021 - Made a full refund to a dissatisfied customer who returned a appliance. The sale had been a cash sale for $850 with a cost of $415. Record the cost part of the event. z) Aug. 20, 2021 - Provided $41,600 of appliance repair services during the year. The services were billed to the customers. aa) Sep. 30, 2021 - Recognized $1,040 of service revenue earned during the first nine months of the year; it had been collected in the prior year. bb) Oct. 1, 2021 - Sold a contract for additional future appliance repair services worth $520 for one year's service, starting immediately. The customers paid cash for the full amount. cc) Nov. 8, 2021 - Paid an additional $7,150 to settle some accounts payable; the payment was made after the discount period expired. dd) Nov. 17, 2021 - Collected $66,300 of accounts receivable. ee) Dec. 28, 2021 - Paid $5,430 of utilities expense for the year. ff) Dec. 29, 2021 - Paid a cash dividend of $15,600 to the shareholders. gg) Dec. 29, 2021 - Paid $3,640 of advertising expense during the year. hh) Dec. 30, 2021 - Paid $16,210 of other operating expense for the year. ii) Dec. 31, 2021 - There was $820 of supplies on hand at the end of the year. jj) Dec. 31, 2021 - Recognized revenue for the current year earned from event (bb). kk) Dec. 31, 2021 - Accrued salaries at December 31 were $1,560. II) Dec. 31, 2021 - Recognized the expired rent from the prior year, van [event (I)), office space (event 4U(0)), and the building (event (r)] for the year. 4 Note: the following row contsing Excel SUM(j formulaz ... When all your entrieg are correct, they should match the "Ending Balsnces" sbove. 46 0[5,200= [0] (0) (0)(0) (0)] (0) (0) Appliance Fixation, Inc. went into business as a corporation in early 2018 . For the first few years, the company provided appliance repair services only (no merchandise). During 2021, the company began selling appliances, and decided to use the A B C Use the worksheet below to prepare the Adjusted Trial Balance for Appliance 1 Fixation. Appliance Fixation, Inc. Adjusted Trial Balance as of December 31,2021 Account Debit Credit 8 Cash 9 Accounts receivable 10 Supplies 11 Prepaid rent 12 Inventory 13 Land 14 Accounts payable 15 Salaries payable 16 Unearned revenue Common stock Retained earnings Dividends declared Service revenue Product sales Cost of goods sold Supplies expense Salaries expense Rent expense Utilities expense Advertising expense 28 Other operating expenses 29 TOTALS \begin{tabular}{|l|l|l|} \hline 1 & Use the worksheets below to prepare the 2021 finand \\ \hline 3 & \multicolumn{1}{|c|}{ Appliance Fixation, Inc. } \\ \hline & \multicolumn{1}{|c|}{ Income Statement } \\ \hline & For the Year Ended December 31,2021 \\ \hline 6 & Service revenue & \\ \hline 7 & Product sales, net & \\ \hline & Cost of Goods & \\ \hline 9 & Gross Margin & \\ \hline 10 & Supplies expense & \\ 11 & Salaries expense & \\ 12 & Rent expense & \\ 13 & Utilities expense & \\ \hline 14 & Advertising expense & \\ \hline 15 & Other operating expenses & \\ \hline 16 & Net Income & \\ \hline 17 & & \\ \hline 18 & & \\ \hline 19 & Statement of Changes in Stockholders' Equity \\ \hline 20 & For the Year Ended December 31, 2021 \\ \hline 21 & Beginning common stock & \\ \hline 22 & Plus: Common stock issued & \\ \hline 23 & Ending Common Stock & \\ \hline 24 & Beginning retained earnings & \\ \hline 25 & Plus: Net Income & \\ \hline 27 & Less: Dividends & \\ \hline Ending Retained Earnings & \\ \hline & TOTAL STOCKHOLDERS' EQuITY & \\ \hline \end{tabular} 29 30 31 32 33 34 35 36 37 38 39 1 Following are the events for Appliance Fixation during 2021. 3 a) Jan. 4, 2021 - Appliance Fixation paid the salaries payable from 2020. b) Jan. 6, 2021 - Appliance Fixation purchased 40 appliances for later sale at a cost of $16,450. The appliances were purchased on account with the terms 1/10,n/30. c) Jan. 8, 2021 - The company paid $1,170 cash for supplies to be used by the business. d) Jan. 12, 2021 - The company acquired an additional $65,000 cash from the issue of common stock. e) Jan. 15, 2021 - Appliance Fixation decided to pay $5,000 of its accounts payable balance from event (b) before the discount period expired, so Appliance Fixation first applied the discount to the $5,000 amount so it could reduce its accounts payable balance (note: the actual payment is described in event (f) below). After applying this discount, Appliance Fixation's inventory cost was $410 for each item. f) Jan. 15, 2021 - Appliance Fixation paid cash to settle parts of its accounts payable balance as described in event (e). g) Feb. 9, 2021 - The company provided $46,800 of appliance repair services. The services were billed to the customers. h) Feb. 12, 2021 - The company sold 25 appliances for a total price of $23,400. Sales of $16,900 were on account, while $6,500 were cash sales. i) Feb. 12, 2021 - The cost to Appliance Fixation of each product sold in event (h) was $410. j) Feb. 25, 2021 - The company paid the workers a total of $10,920 in salaries. k) Feb. 26, 2021 - Paid cash to settle additional accounts payable in the amount of $2,140. The payment was made after the discount period expired. I) Mar. 1, 2021 - Appliance Fixation rented a business van, paying $6,240 in advance for a one year rental. m) Mar. 18, 2021 - Collected $49,400 of accounts receivable. n) Apr. 20, 2021 - Appliance Fixation performed $18,200 worth of appliance repair services for a local college; $15,600 was on account and $2,600 was for cash. o) May. 1, 2021 - Paid $9,360 for one year's rent on office space in advance. p) May. 5, 2021 - Appliance Fixation purchased, and paid cash, for 10 appliances for later sale at a 18 cost of $414 each. q) May. 21, 2021 - The company paid accounts payable of $1,870, but not within the discount period (the company uses the gross method). r) Jun. 1, 2021 - Appliance Fixation rented a larger building; paid $8,580 for 12 months' rent in advance. 5) Jun. 8, 2021 - Appliance Fixation purchased, and paid cash, for 5 appliances for later sale at a cost of $415 each. t) Jun. 9, 2021 - Appliance Fixation purchased 5 appliances for later sale at a cost of $420 each. The 22 purchase was on account. u) Jun. 16,2021 - The company sold 27 appliances for a total price of $36,400. Sales of $26,000 were 23 on account, while $10,400 were cash sales. v) Jun. 16, 2021 - Record the cost of goods sold related to the sale from event (u) using the perpetual 24 FIFO method. w) Jul. 1, 2021 - Paid employees a total of $14,300 cash for salaries employees earned during the current period. x) Jul. 15, 2021 - Made a full refund to a dissatisfied customer who returned an appliance. The sale had been a cash sale for $850 with a cost of $415. Record the revenue part of the event. y) Jul. 15, 2021 - Made a full refund to a dissatisfied customer who returned a appliance. The sale had been a cash sale for $850 with a cost of $415. Record the cost part of the event. z) Aug. 20, 2021 - Provided $41,600 of appliance repair services during the year. The services were billed to the customers. aa) Sep. 30, 2021 - Recognized $1,040 of service revenue earned during the first nine months of the year; it had been collected in the prior year. bb) Oct. 1, 2021 - Sold a contract for additional future appliance repair services worth $520 for one year's service, starting immediately. The customers paid cash for the full amount. cc) Nov. 8, 2021 - Paid an additional $7,150 to settle some accounts payable; the payment was made after the discount period expired. dd) Nov. 17, 2021 - Collected $66,300 of accounts receivable. ee) Dec. 28, 2021 - Paid $5,430 of utilities expense for the year. ff) Dec. 29, 2021 - Paid a cash dividend of $15,600 to the shareholders. gg) Dec. 29, 2021 - Paid $3,640 of advertising expense during the year. hh) Dec. 30, 2021 - Paid $16,210 of other operating expense for the year. ii) Dec. 31, 2021 - There was $820 of supplies on hand at the end of the year. jj) Dec. 31, 2021 - Recognized revenue for the current year earned from event (bb). kk) Dec. 31, 2021 - Accrued salaries at December 31 were $1,560. II) Dec. 31, 2021 - Recognized the expired rent from the prior year, van [event (I)), office space (event 4U(0)), and the building (event (r)] for the year. 4 Note: the following row contsing Excel SUM(j formulaz ... When all your entrieg are correct, they should match the "Ending Balsnces" sbove. 46 0[5,200= [0] (0) (0)(0) (0)] (0) (0) Appliance Fixation, Inc. went into business as a corporation in early 2018 . For the first few years, the company provided appliance repair services only (no merchandise). During 2021, the company began selling appliances, and decided to use the A B C Use the worksheet below to prepare the Adjusted Trial Balance for Appliance 1 Fixation. Appliance Fixation, Inc. Adjusted Trial Balance as of December 31,2021 Account Debit Credit 8 Cash 9 Accounts receivable 10 Supplies 11 Prepaid rent 12 Inventory 13 Land 14 Accounts payable 15 Salaries payable 16 Unearned revenue Common stock Retained earnings Dividends declared Service revenue Product sales Cost of goods sold Supplies expense Salaries expense Rent expense Utilities expense Advertising expense 28 Other operating expenses 29 TOTALS \begin{tabular}{|l|l|l|} \hline 1 & Use the worksheets below to prepare the 2021 finand \\ \hline 3 & \multicolumn{1}{|c|}{ Appliance Fixation, Inc. } \\ \hline & \multicolumn{1}{|c|}{ Income Statement } \\ \hline & For the Year Ended December 31,2021 \\ \hline 6 & Service revenue & \\ \hline 7 & Product sales, net & \\ \hline & Cost of Goods & \\ \hline 9 & Gross Margin & \\ \hline 10 & Supplies expense & \\ 11 & Salaries expense & \\ 12 & Rent expense & \\ 13 & Utilities expense & \\ \hline 14 & Advertising expense & \\ \hline 15 & Other operating expenses & \\ \hline 16 & Net Income & \\ \hline 17 & & \\ \hline 18 & & \\ \hline 19 & Statement of Changes in Stockholders' Equity \\ \hline 20 & For the Year Ended December 31, 2021 \\ \hline 21 & Beginning common stock & \\ \hline 22 & Plus: Common stock issued & \\ \hline 23 & Ending Common Stock & \\ \hline 24 & Beginning retained earnings & \\ \hline 25 & Plus: Net Income & \\ \hline 27 & Less: Dividends & \\ \hline Ending Retained Earnings & \\ \hline & TOTAL STOCKHOLDERS' EQuITY & \\ \hline \end{tabular} 29 30 31 32 33 34 35 36 37 38 39