1. Prepare journal entries for the January 2018 transactions for Wallace Corporation described in the transaction worksheet. Enter them in the general Journal I have provided. Use the accounts listed in the General Ledger. Add new accounts if you think they are necessary. For this assighment you can ignore income taxes. 2. Post the journal entries to the t-accounts in the General Ledger worksheet. Post the journal entries by referencing your journal entries (don't input the numbers again). All your work from this step forward should involve referencing cells rather than inputting numbers. The January 1, 2018 balances are provided. Wallace Corporation has a calendar fiscal year and prepares monthly financial statements. 3. Calculate end-of-month account balances in the General Ledger tab using Excel (use an Excel formula; don't type in the balance) 4. Fill in the Unadjusted Trial Balance columns on your worksheet and check to see that the total of the debit balances equals the total of the credit balances. If it does not go back and check your work in parts 1, 2, and 3. 5. Using the information in the Supplies, Prepaid Insurance, Wages Payable, Unearned Revenue, Interest and Equipment tabs calculate what you think the 1/31/2018 balances should be for each of these accounts. Show in these tabs how you are coming up with each of these balances. Make sure that you are calculating the 1/31/2018 balances of the above balance sheet accounts and not the related 1/2018 revenue or expense accounts. Highlight the 1/31/2018 balance you calculate. 6. Prepare 1/31/2018 Adjusting Journal Entries and enter them in your general Journal below your January transaction journal entries (enter amounts using cell references to where you calculated them - do not hard-key the umbers). 7. Post your adjustments to your worksheet (and add new accounts, as needed) and calculate an Adjusted Trial Balance. Don't post your adjustments to the General Ledger. 8. Verify that the 1/31/2018 balances you came up with in part 5 above agree with the balances in your adjusted trial balance. If they do not agree correct your adjustment in part 5 above. 9. (Optional) Fill in the income statement and balance sheet columns on the trial balance worksheet. Note that the income statement and balance sheet columns in the worksheet are not an income statement or a balance sheet. 10. Prepare an Income Statement and Statement of Retained Earnings for the month of January and a Balance Sheet as of January 31. Use additional Excel worksheets for these statements. Follow my financial statement formatting rules and refer to financial statement examples in the book. 11. The only numbers that should be hard-keyed in this entire document are in the Journal Entries and calculations in the Supplies, Prepaid Insurance, Wages Payable, Uneamed Revenue, Interest and Equipment tabs. All other amounts should be derived from cell references and formulas. 12. Submit your spreadsheet through Blackboard. # Date Transaction 1 2-Jan Stockholders invest an additional $18,000 in the business 2-Jan Borrowed $10,000 from the bank. The principal repayment is due in 3 years and interest 2 payments are due at the end of each year. 3 2-Jan Purchased equipment for $9,000 on account. 4 3-Jan Purchased supplies on account (did not pay cash) $800 5 7-Jan Paid office rent of $600 for the month 6 11-Jan Completed a consulting assignment and billed ABC Co. $1,700 for services rendered 7 12-Jan Received $3,100 cash advance from Anthony Inc. on future consulting services 8 17-Jan Completed a consulting assignment and received $2,400 for the services performed 9 21-Jan Paid for insurance coverage for the year (January through December) $1,800 10 25-Jan Received $1,000 from ABC Co. (see transaction #6) 11 26-Jan Paid secretary $2,000 for four weeks from 1/2/2018 - 1/27/2018. 12 31-Jan Declared and paid a dividend to stockholders of $400 General Journal CR Date 2-Jan DR 18,000 18,000 2-Jan 10,000 10,000 2-Jan 9,000 9,000 3-Jan 800 800 7-Jan 600 600 11-Jan 1,700 Account name Cash Capital Stock Cash Accounts Payable Equipment Accounts Payable Supplies Accounts Payable Rent Expense Cash Accounts Receivable Unearned Service Revenue Cash Unearned Service Revenue Cash Service Revenue Prepaid Insurance Cash Cash Accounts Receivable Salaries and Wages Exoense Cash Dividends Cash 1,700 12-Jan 3,100 3,100 17-Jan 2,400 2,400 21-Jan 1,800 1,800 25-Jan 1,000 1,000 26-Jan 2,000 2,000 31-Jan 400 400 General Ledger beginning balance Accounts receivable 1,700 1,000 Cash 11,100 18,000 10,000 Supplies 170 800 Prepaid insurance 1,800 Equipment 9,000 600 3,100 2,400 1,800 1,000 2,000 400 45,600 4,800 40,800 Accounts payable 400 10,000 9,000 1,700 1,000 700 Wages payable 970 0 970 Unearned revenue 1,800 0 1,800 Notes Payable 9,000 9,000 Capital stock 8,200 18,000 800 0 20,200 20,200 Retained earnings 2,670 0 26,200 26,200 Supplies expense Consulting revenue Salary expense Rent expense Insurance expense Dividends Unadjusted Trial Balance DR CR Adjustments DR CR Adjusted Trial Balance DR CR Income Statement DR CR Balance Sheet DR CR Cash Accounts receivable Supplies Prepaid insurance Equipment Accounts payable Wages payable Unearned revenue Notes payable Capital stock Retained earnings Consulting revenue Salary expense Rent expense Supplies expense Insurance expense Dividends Total Supplies on hand as of 1/31/2018 Quantity Supply item # 1 2 3 4 7 16 9 23 Unit price 2.00 1.50 3.00 1.00 There should be 11 months of prepaid insurance coverage still left as of 1/31/2018 The secretary for Wallace Corporation gets paid $100 per day. She works five days a week (Monday through Friday). She gets 2018 JANUARY NOTES: Sunday Monday Tuesday Wednesday Thursday Friday Saturday paid the last Friday of the month for days up to and including that day. So she was paid for 20 days on Friday January 26. She will get paid next on Friday February 23, 2018. www.freshcalendars.com 1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 22 23 24 25 26 27 February 2018 SU M TU w TH F SA 1 2 3 21 4 5 6 7 8 9 10 11 12 14 15 16 17 13 20 18 19 21 22 23 24 28 29 30 31 25 26 27 28 Status of $3,100 contract with Anthony Inc. as of 1/31/2018 % of work not completed as of 1/31/2018 20.00% % of work completed as of 1/31/2018 80.00% Anthony Inc. contract $ 3,100 The Note Payable has an interest rate of 9%. The Equipment has a salvage value of $1,500 and expected useful life of 5 years