1. Un-Adjusted Trail Balance- Posted first page

2. Adjusted Trail Balance-I have posted what I have done on it but not for sure it is correct. I know that #6 isn't complete.

3. Income Statement-I posted what I have on the Income Statement. I know it's not fully correct. Can you adjust accordingly.

4. I posted Retained Earning however it isn't fully correct. Beginning Balance for Retained Earnings is $0.

5. Balance Sheet, Closing Entries-I posted both sheets just for the lay out. Please complete accordingly.

6. Adjusted Journal Entries-I posted the entries that I have. I know #6 isn't complete. Please check for accuracy and edit accordingly.

(Some Information may be the same, I couldn't delete it without deleting other crucial Information.)

ABC Corporation Unadjusted Trial Balance December 31, 2016 Debit Credit Cash 759.444 Accounts receivable 442.120 Allowance for doubtful accounts Inventory Allowance to Reduce Inventory to NRV Purchases 247.000 6.750 Prepaid insurance Land 88,000 37,500 Building Accumulated depreciation: building 1.150 21,600 Equipment Accumulated depreciation: equipment 9.000 Patent 50,000 Accounts payable 88,851 Notes payable 40,000 Income taxes payable 99.000 Unearned rent revenue 13,500 Bonds Payable 700,000 Premium on Bonds Payable 56,774 125,000 Common stock PIC In Excess of Par-Common Stock 40,000 Retained earnings Treasury stock 20,000 Dividends 28.000 Sales Revenue 790,000 Advertising expense 9,240 Wages expense 62.150 Office expense 28,500 Depreciation expense 10.150 Utilities expense 33,571 Insurance expense 20.250 Income taxes expense 99,000 1.963.275 1.963,275 40,000 The entry made on November 30 to record the borrowing was: Dr Cash 40,000 C: Notes payable On February 28, 2017 ABC must pay the bank the amount borrowed plus interest. Assume the beginning balance for Notes Payable is correct. Interest through 12/31/16 must be accrued on the $40,000 note. 6 ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete physical inventory at year-end. A physical count was taken on December 31, 2016, and the inventory on-hand at that time totaled $100,000, which reflects historical cost. Record the adjusting entry for properly recognizing 2016 Cost of Goods Sold. Hint: This was the first year of operations, so beginning inventory balance is zero. Additionally, ABC adheres to GAAP by recording ending inventory at the lower of cost and net realizable value at a total inventory level. A review of inventory data further indicated that the current retail sales value of the ending inventory is $90,000 and estimated costs of completion and shipping is 8% of retail. Be sure to make an additional adjustment, if necessary, to properly value ending inventory using the Loss and Allowance methodology. For Income Statement presentation purposes, be sure to use the Loss Method for accounting for adjustments of inventory to market value. 7 It would be unusual for a company to have an asset impairment in Year 1, but for the sake of this example, ABC determined that their intangible asset might be impaired on December 31, 2016. Record the impairment adjustment, if any. The expected future undiscounted net cash flows for this intangible asset totals $48,000, and the fair value of the asset is $45,000. 8 On 7/1/16, ABC purchased 4,000 shares of its own stock from existing stockholders as treasury stock. The cost of the treasury stock was $5 per share, or $20,000 in total. The effects of this transaction are already shown in the unadjusted trial balance. On 12/31/16, ABC reissued 2,000 shares of the treasury stock at $8 per share. Record the joumal entry required for the reissuance of the treasury stock. To refresh your memory, treasury stock is usually accounted for at cost. When treasury stock is reissued for more than its cost, a separate Paid-in Capital-Treasury Stock account should be used to account for the excess proceeds over cost. (See your Principles of Accounting textbook or Chapter 18 of your Intermediate Accounting textbook for a review.) On 12/31/16, ABC issued 10,000 shares of $1 par value common stock at the closing market price of $10 per share. Prepare ABC's journal entry to reflect the issuance of the stock on 12/31/16. To refresh your memory, a Paid-in Capital in Excess of Par account should be used to account for excess proceeds over par value in a stock issuance transaction. (See your Principles of Accounting textbook or Chapter 18 of your Intermediate Accounting textbook for a review.) 10 On 7/1/16, ABC sold 10% bonds having a maturity value of $700,000 for $756,773.50, resulting in an effective yield of 8%. The bonds are dated 7/1/16, and mature 7/1/21. Interest is payable semiannually on July 1 and January 1. ABC uses the effective interest method of amortization for bond premium or discount. Record the adjusting entry for the accrual of interest and the related amortization on 12/31/16. Hint Develop an abbreviated amortization schedule to accurately determine the interest expense. 11 ABC Corporation prepares an aging schedule on 12/31/16 that estimates total uncollectible accounts at $75,000. Assuming that the allowance method is used, prepare the entry to record bad debt expense for the calendar year. Do this final adjusting entry after preparing the Income Statement through the line "Income Before Income Taxes": Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date. ABC's income tax rate is 35%. The entire year's income tax expense was estimated at the beginning of 2016 to be $108,000, so January through November income tax expense recognized amounts to $99,000 (11/12 months). Since we are assuming estimates are not made during the year, the balance in Income taxes payable represents income tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities. Based on the income before income taxes figure from the income statement, calculate and record December's income tax expense adjustment so that the entire year's tax expense is correct (.e. the difference between total income tax expense and the amount already accrued through November). I NEED ADJUSTED TRAIL BALANCE, INCOME STATEMENT, STATEMENT OF RETAINED EARNINGS, BALANCE SHEET, CLOSING, ENTRIES, POST TO T-ACCOUNTS, POST CLOSING TRAIL BALANCE. I HAVE 16 QUESTIONS LEFT SO TAKE AS MANY AS YOU NEED. THANK YOU ABC Corporation Income Statement For the Year Ended December 31, 2016 Revenue Cost of Goods Sold $790,000 $147.000 $643,000 Gross Margin $643, Operating Expense Advertising Expense Loss on reduction of inventory to NRV Depreciation Expense Insurance Expense Office Expense Utilities Expense Wage Expense Bad Debt Total Operating Expense $9,240 $0 $11,165 $22,500 $28,500 $33,571 $67,150 $75.000 $247,126 $247, Operating Income $395, Other Income/expense Rent Revenue Interest Expense Loss on Impairment Income before Taxes Income Tax Expense Net Income $4,500 $30,571 $5,000 $364, $99.0 $265, Adjusting Journal Entries Account Titles Debits Credits Insurance Expense 2,250 Prepaid Insurance 2,250 Depreciation Expense 1,015 Accumulated Deprication-Building Accumulated Deprication-Equipment Unearned Rent Revenue 4,500 Rent Revenue 4,500 Wage Expense 5,000 Wages Payable 5,000 Interest Expense 300 Interest Payable 300 Inventory 100,000 Cost of Goods Sold 147,000 Purchases 247,000 Loss on Impairment 5,000 Patent 5,000 Cash 16,000 Stock 10,000 Capital 6,000 On March 1, 2016, ABC purchased a one-year liability insurance policy for $27,000. Upon purchase, the following journal entry was made: Dr Prepaid insurance 27,000 Cr Cash 27,000 The expired portion of insurance must be recorded as of 12/31/16. Notice that the expired portion from March through November has been recorded already Make sure that the Prepaid Insurance balance after the adjusting entry is correct. Depreciation expense must be recorded for the month of December. The building was purchased on February 1, 2016 for $37,500 with a remaining useful life of 25 years and a salvage value of $3,000. The method of depreciation for the building is straight-line. The equipment was purchased on February 1, 2016 for $21,600 with a remaining useful life of 4 years and a salvage value of $1,800. The method of depreciation for the equipment is double-declining balance. Depreciation has been recorded for the building and equipment for months February through November. On December 1, 2016, XYZ Co. agreed to rent space in ABC's building for $4,500 per month and XYZ paid ABC on December 1 in advance for the first three months' rent. The entry made on December 1 was as follows: Dr Cash 13,500 Cr Unearned rent revenue 13,500 The unearned revenue account must be adjusted to reflect the amount earned as of 12/31/16 Per timecards, from the last payroll date through December 31, 2016, ABC's employees have worked a total of 200 hours. Including payroll taxes, ABC's wage expense averages about $25 per hour. The next payroll date is January 5, 2017. The liability for wages payable must be recorded as of 12/31/16. On November 30, 2016, ABC borrowed $40,000 from American National Bank by issuing an interest-bearing note payable. This loan is to be repaid in three months on February 28, 2017), along with interest computed at an annual rate of 9%. The entry made on November 30 to record the borrowing was: Dr Cash 40,000 On 12/31/16, ABC issued 10,000 shares of $1 par value common stock at the closing market price of $10 per share. Prepare ABC's journal entry to reflect the issuance of the stock on 12/31/16. To refresh your memory, a Paid-in Capital in Excess of Par account should be used to account for excess proceeds over par value in a stock issuance transaction. On 7/1/16, ABC sold 10% bonds having a maturity value of $700,000 for $756,773.50, resulting in an effective yield of 8%. The bonds are dated 7/1/16, and mature 7/1/21. Interest is payable semiannually on July 1 and January 1. ABC uses the effective interest method of amortization for bond premium or discount. Record the adjusting entry for the accrual of interest and the related amortization on 12/31/16. Hint: Develop an abbreviated amortization schedule to accurately determine the interest expense. ABC Corporation prepares an aging schedule on 12/31/16 that estimates total uncollectible accounts at $75,000. Assuming that the allowance method is used, prepare the entry to record bad debt expense for the calendar year. Do this final adjusting entry after preparing the Income Statement through the line "Income Before Income Taxes": Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date. ABC's income tax rate is 35%. The entire year's income tax expense was estimated at the beginning of 2016 to be $108,000, so January through November income tax expense recognized amounts to $99,000 (11/12 months). Since we are assuming estimates are not made during the year, the balance in Income taxes payable represents income tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities. Based on the income before income taxes figure from the income statement, calculate and record December's income tax expense adjustment so that the entire year's tax expense is correct ABC Corporation Unadjusted Trial Balance December 31, 2016 Debit Credit Cash 759.444 Accounts receivable 442.120 Allowance for doubtful accounts Inventory Allowance to Reduce Inventory to NRV Purchases 247.000 6.750 Prepaid insurance Land 88,000 37,500 Building Accumulated depreciation: building 1.150 21,600 Equipment Accumulated depreciation: equipment 9.000 Patent 50,000 Accounts payable 88,851 Notes payable 40,000 Income taxes payable 99.000 Unearned rent revenue 13,500 Bonds Payable 700,000 Premium on Bonds Payable 56,774 125,000 Common stock PIC In Excess of Par-Common Stock 40,000 Retained earnings Treasury stock 20,000 Dividends 28.000 Sales Revenue 790,000 Advertising expense 9,240 Wages expense 62.150 Office expense 28,500 Depreciation expense 10.150 Utilities expense 33,571 Insurance expense 20.250 Income taxes expense 99,000 1.963.275 1.963,275 40,000 The entry made on November 30 to record the borrowing was: Dr Cash 40,000 C: Notes payable On February 28, 2017 ABC must pay the bank the amount borrowed plus interest. Assume the beginning balance for Notes Payable is correct. Interest through 12/31/16 must be accrued on the $40,000 note. 6 ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete physical inventory at year-end. A physical count was taken on December 31, 2016, and the inventory on-hand at that time totaled $100,000, which reflects historical cost. Record the adjusting entry for properly recognizing 2016 Cost of Goods Sold. Hint: This was the first year of operations, so beginning inventory balance is zero. Additionally, ABC adheres to GAAP by recording ending inventory at the lower of cost and net realizable value at a total inventory level. A review of inventory data further indicated that the current retail sales value of the ending inventory is $90,000 and estimated costs of completion and shipping is 8% of retail. Be sure to make an additional adjustment, if necessary, to properly value ending inventory using the Loss and Allowance methodology. For Income Statement presentation purposes, be sure to use the Loss Method for accounting for adjustments of inventory to market value. 7 It would be unusual for a company to have an asset impairment in Year 1, but for the sake of this example, ABC determined that their intangible asset might be impaired on December 31, 2016. Record the impairment adjustment, if any. The expected future undiscounted net cash flows for this intangible asset totals $48,000, and the fair value of the asset is $45,000. 8 On 7/1/16, ABC purchased 4,000 shares of its own stock from existing stockholders as treasury stock. The cost of the treasury stock was $5 per share, or $20,000 in total. The effects of this transaction are already shown in the unadjusted trial balance. On 12/31/16, ABC reissued 2,000 shares of the treasury stock at $8 per share. Record the joumal entry required for the reissuance of the treasury stock. To refresh your memory, treasury stock is usually accounted for at cost. When treasury stock is reissued for more than its cost, a separate Paid-in Capital-Treasury Stock account should be used to account for the excess proceeds over cost. (See your Principles of Accounting textbook or Chapter 18 of your Intermediate Accounting textbook for a review.) On 12/31/16, ABC issued 10,000 shares of $1 par value common stock at the closing market price of $10 per share. Prepare ABC's journal entry to reflect the issuance of the stock on 12/31/16. To refresh your memory, a Paid-in Capital in Excess of Par account should be used to account for excess proceeds over par value in a stock issuance transaction. (See your Principles of Accounting textbook or Chapter 18 of your Intermediate Accounting textbook for a review.) 10 On 7/1/16, ABC sold 10% bonds having a maturity value of $700,000 for $756,773.50, resulting in an effective yield of 8%. The bonds are dated 7/1/16, and mature 7/1/21. Interest is payable semiannually on July 1 and January 1. ABC uses the effective interest method of amortization for bond premium or discount. Record the adjusting entry for the accrual of interest and the related amortization on 12/31/16. Hint Develop an abbreviated amortization schedule to accurately determine the interest expense. 11 ABC Corporation prepares an aging schedule on 12/31/16 that estimates total uncollectible accounts at $75,000. Assuming that the allowance method is used, prepare the entry to record bad debt expense for the calendar year. Do this final adjusting entry after preparing the Income Statement through the line "Income Before Income Taxes": Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date. ABC's income tax rate is 35%. The entire year's income tax expense was estimated at the beginning of 2016 to be $108,000, so January through November income tax expense recognized amounts to $99,000 (11/12 months). Since we are assuming estimates are not made during the year, the balance in Income taxes payable represents income tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities. Based on the income before income taxes figure from the income statement, calculate and record December's income tax expense adjustment so that the entire year's tax expense is correct (.e. the difference between total income tax expense and the amount already accrued through November). I NEED ADJUSTED TRAIL BALANCE, INCOME STATEMENT, STATEMENT OF RETAINED EARNINGS, BALANCE SHEET, CLOSING, ENTRIES, POST TO T-ACCOUNTS, POST CLOSING TRAIL BALANCE. I HAVE 16 QUESTIONS LEFT SO TAKE AS MANY AS YOU NEED. THANK YOU ABC Corporation Income Statement For the Year Ended December 31, 2016 Revenue Cost of Goods Sold $790,000 $147.000 $643,000 Gross Margin $643, Operating Expense Advertising Expense Loss on reduction of inventory to NRV Depreciation Expense Insurance Expense Office Expense Utilities Expense Wage Expense Bad Debt Total Operating Expense $9,240 $0 $11,165 $22,500 $28,500 $33,571 $67,150 $75.000 $247,126 $247, Operating Income $395, Other Income/expense Rent Revenue Interest Expense Loss on Impairment Income before Taxes Income Tax Expense Net Income $4,500 $30,571 $5,000 $364, $99.0 $265, Adjusting Journal Entries Account Titles Debits Credits Insurance Expense 2,250 Prepaid Insurance 2,250 Depreciation Expense 1,015 Accumulated Deprication-Building Accumulated Deprication-Equipment Unearned Rent Revenue 4,500 Rent Revenue 4,500 Wage Expense 5,000 Wages Payable 5,000 Interest Expense 300 Interest Payable 300 Inventory 100,000 Cost of Goods Sold 147,000 Purchases 247,000 Loss on Impairment 5,000 Patent 5,000 Cash 16,000 Stock 10,000 Capital 6,000 On March 1, 2016, ABC purchased a one-year liability insurance policy for $27,000. Upon purchase, the following journal entry was made: Dr Prepaid insurance 27,000 Cr Cash 27,000 The expired portion of insurance must be recorded as of 12/31/16. Notice that the expired portion from March through November has been recorded already Make sure that the Prepaid Insurance balance after the adjusting entry is correct. Depreciation expense must be recorded for the month of December. The building was purchased on February 1, 2016 for $37,500 with a remaining useful life of 25 years and a salvage value of $3,000. The method of depreciation for the building is straight-line. The equipment was purchased on February 1, 2016 for $21,600 with a remaining useful life of 4 years and a salvage value of $1,800. The method of depreciation for the equipment is double-declining balance. Depreciation has been recorded for the building and equipment for months February through November. On December 1, 2016, XYZ Co. agreed to rent space in ABC's building for $4,500 per month and XYZ paid ABC on December 1 in advance for the first three months' rent. The entry made on December 1 was as follows: Dr Cash 13,500 Cr Unearned rent revenue 13,500 The unearned revenue account must be adjusted to reflect the amount earned as of 12/31/16 Per timecards, from the last payroll date through December 31, 2016, ABC's employees have worked a total of 200 hours. Including payroll taxes, ABC's wage expense averages about $25 per hour. The next payroll date is January 5, 2017. The liability for wages payable must be recorded as of 12/31/16. On November 30, 2016, ABC borrowed $40,000 from American National Bank by issuing an interest-bearing note payable. This loan is to be repaid in three months on February 28, 2017), along with interest computed at an annual rate of 9%. The entry made on November 30 to record the borrowing was: Dr Cash 40,000 On 12/31/16, ABC issued 10,000 shares of $1 par value common stock at the closing market price of $10 per share. Prepare ABC's journal entry to reflect the issuance of the stock on 12/31/16. To refresh your memory, a Paid-in Capital in Excess of Par account should be used to account for excess proceeds over par value in a stock issuance transaction. On 7/1/16, ABC sold 10% bonds having a maturity value of $700,000 for $756,773.50, resulting in an effective yield of 8%. The bonds are dated 7/1/16, and mature 7/1/21. Interest is payable semiannually on July 1 and January 1. ABC uses the effective interest method of amortization for bond premium or discount. Record the adjusting entry for the accrual of interest and the related amortization on 12/31/16. Hint: Develop an abbreviated amortization schedule to accurately determine the interest expense. ABC Corporation prepares an aging schedule on 12/31/16 that estimates total uncollectible accounts at $75,000. Assuming that the allowance method is used, prepare the entry to record bad debt expense for the calendar year. Do this final adjusting entry after preparing the Income Statement through the line "Income Before Income Taxes": Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date. ABC's income tax rate is 35%. The entire year's income tax expense was estimated at the beginning of 2016 to be $108,000, so January through November income tax expense recognized amounts to $99,000 (11/12 months). Since we are assuming estimates are not made during the year, the balance in Income taxes payable represents income tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities. Based on the income before income taxes figure from the income statement, calculate and record December's income tax expense adjustment so that the entire year's tax expense is correct