1. Wages earned by employees during December and to be paid in January are $33,875; associated payroll taxes on these wages are $2,710.

2.On July 1, a client paid CMC $205,720 in advance for a year of consulting services.

3.You discover that a product sale was made and recorded in December for $128,600; the product had not yet been shipped. The cost of the product was $68,742.

4.Bad debt expense has been calculated to be $17,508 but has not yet been recorded.

5.The Prepaid Expense account has a balance of $22,774. This balance includes $11,200 for a two-year insurance policy purchased on January 1, 2014.

6.Depreciation expense for the year is $82,620.

7.Interest expense accrued on its long-term liabilities is $7,765.

8.On December 15, CMCdeclareda dividend of $110,000, to be paid on January 15, 2015.

9.Income tax expense is $201,109

.After making the adjusting entries in (b), make the appropriate closing entries on the spreadsheet in columns K-M.

Im not sure if I've done the right thing?

General Ledger Account Name Balance Sheet Accounts Cash and cash equivalents Accounts Receivable Unadj. Balance 12/31/14 Debit Credit 72,337 910,680 Allowance for doubtful accounts Inventory 12/31/14 Adjusting J/Es Debit JE# Credit 0.00 84,962 1,272,160 4 17,508 0 0 893,172 3 0 1,340,902 5 0 68,742 Adjusted Balance 12/31/14 Debit Credit 72,337 84,962 Prepaid expenses 22,774 5,600 17,174 Other Current Assets 16,063 0 0 16,063 Building 874,418 0 0 874,418 Equipment and furniture 336,983 0 0 336,983 Land 348,791 0 348,791 Accum Depr 0 656,465 0 6 18,120 674,585 Investments 140,186 0 0 140,186 Goodwill 397,740 0 0 397,740 Other intangible assets 253,900 0 0 253,900 0 0 1,169,343 Accounts Payable 1,169,343 Dividends payable Interest payable Unearned revenue Wages payable Payroll taxes payable 0 8 110,000 110,000 5,100 0 7 7,765 12,865 205,720 102,860 81,350 0 2 3 1 128,600 33,875 8,850 0 1 2,710 11,560 0 9 201,109 201,109 Income tax payable 231,460 115,225 Long term liabilities 588,500 0 0 588,500 Common Stock 920,000 0 0 920,000 105,000 0 0 0 0 0 0 Paid-in capital common stock Treasury Stock 400,000 Retained Earnings 539,069 Dividends 110,000 Net Income (Loss) 8 0 105,000 400,000 539,069 110,000 681,673 5,046,032 5,046,032 12/31/14 Closing J/Es Debit JE# Credit 437,988 5,201,666 5,201,666 437,988 Income Statement Accounts Gross product sales revenue 9,293,346 128,600 3 0 9,164,746 9,164,746 Service revenue 1,158,785 0 2 102,860 1,261,645 1,261,645 Product sales returns 162,400 0 0 162,400 162,400 Product sales discounts 269,662 0 0 269,662 269,662 68,742 5,315,848 5,315,848 0 570,811 570,811 Product cost of goods sold 5,384,590 0 Service cost of goods sold 570,811 0 3 Advertising 163,870 0 0 163,870 163,870 0 17,508 4 0 17,508 17,508 Depreciation and amortization 64,500 18,120 6 0 82,620 82,620 Dues and subscriptions 21,470 0 0 21,470 21,470 150,781 0 0 150,781 150,781 0 0 0 0 . Bad debt expense Equipment expense Gain/loss on disposal Income tax expense 0 201,109 9 0 201,109 201,109 Insurance 80,144 5,600 5 0 85,744 85,744 Interest expense 45,200 7,765 7 0 52,965 52,965 Investment income Legal and accounting fees Miscellaneous 0 0 106,650 13,230 0 0 13,230 13,230 106,650 106,650 9,048 0 0 9,048 9,048 Office expense 220,114 0 0 220,114 220,114 Payroll taxes 136,975 2,710 0 139,685 139,685 Property taxes 104,570 0 0 104,570 104,570 Repair and maintenance 1 42,028 0 0 42,028 42,028 470,680 0 0 470,680 470,680 Telephone 20,085 0 0 20,085 20,085 Travel and entertainment 38,391 0 0 38,391 38,391 Research and development Utilities 47,049 0 Wages Expense 964,670 33,875 Wages - Officers 710,000 Net (Income) Loss 0 47,049 47,049 0 998,545 998,545 0 710,000 (681,673) 9,783,688 difference 0 1 9,783,688 710,000 (437,988) 696,889 0.00 696,889 10,001,633 10,001,633 10,439,621 10,001,633 437,988.00 CM Corporation Balance Sheet December 31, 2014 Assets Current assets Cash and cash equivalents Accounts receivable Allowance for doubtful accounts Inventory Prepaid expenses Other current assets Total current assets Property, plant and equipment Accumulated depreciation Net fixed assets Other Assets Investments Goodwill Other intangible assets December 31, 2013 % $72,337 893,172 (84,962) 1,340,902 17,174 16,063 $120,670 576,454 (84,975) 847,460 18,841 4,612 2,254,686 0.57 1,560,192 (674,585) 1,483,062 0.65 1,100,105 (591,965) 885,607 0.23 140,186 397,740 253,900 Total assets % 508,140 0.22 100,150 87,740 108,700 791,826 0.20 296,590 0.13 $3,932,119 1.00 $2,287,792 1.00 Liabilities and Stockholders' Equity Current liabilities Accounts payable $1,169,343 Dividends payable 110,000 Unearned revenue 231,460 Interest payable 12,865 * Wages payable 115,225 * Payroll taxes payable 11,560 * Income taxes payable 201,109 * Total current liabilities 1,851,562 *these accounts could be combined as one line called accrued liabilities Long-term liabilities 588,500 $315,395 48,000 73,500 6,500 112,920 9,033 279,850 0.47 845,198 0.37 0.15 278,525 0.12 Stockholders' equity Contributed capital Common stock, $2 par value (4,000,000 shares authorized),460,000 shares issued of which 440,000 shares are outstanding 920,000 Paid-in capital common stock 105,000 Total contributed capital 1,025,000 Accumulated other comprehensive income Retained earnings Less common stock in treasury, at cost Total stockholders' equity 920,000 105,000 1,025,000 0 867,057 0 539,069 (400,000) Total liabilities and stockholders' equity (400,000) 1,492,057 0.38 1,164,069 0.51 $3,932,119 1.00 $2,287,792 1.00 CM Corporation Income Statement For the Years Ended December 31, 2014 Revenue Net product sales revenue Service revenue Total revenue Cost of goods sold Products Services Total cost of goods sold Gross profit Operating expenses Advertising Bad debt expense Depreciation and amortization Dues and subscriptions Equipment expenses Insurance Legal and accounting fees Miscellaneous Office expense Payroll taxes Property taxes Repair and maintenance Research and development Telephone Travel and entertainment Utilities Wages - Employees Wages - Officers Total operating expenses $8,732,684 1,261,645 Income (loss) before income taxes Income tax (expense) benefit Net income (loss) December 31, 2013 % $8,984,852 975,860 $9,994,329 5,315,848 570,811 $9,960,712 5,356,018 445,637 5,886,659 4,107,670 0.41 5,801,655 4,159,057 0.42 3,428,838 0.34 3,030,626 0.30 678,832 0.07 1,128,431 0.11 163,870 17,508 82,620 21,470 150,781 85,744 106,650 9,048 220,114 139,685 104,570 42,028 470,680 20,085 38,391 47,049 998,545 710,000 Income (loss) from operations Other income and (expense) Interest expense Gain (loss) on disposal of assets Investment income Total other income (expense) % 123,869 28,640 125,500 19,730 64,781 90,144 87,650 12,010 214,138 131,170 93,400 37,543 278,000 21,085 60,402 37,876 954,688 650,000 (52,965) 0 13,230 (27,800) (26,950) 9,230 (39,735) (45,520) 639,097 (201,109) 1,082,911 (379,019) $437,988 0.04 $703,892 0.07 CM Corporation Statement of Retained Earnings For the Years Ended December 31, 2014 December 31, 2013 Beginning balance $539,069 ($116,823) Net income (loss) 437,988 703,892 Dividends (110,000) (48,000) Ending balance $867,057 $539,069 CM Corporation Statement of Cash Flows ( Indirect Method ) For the Years Ended December 31, 2014 Cash flows from operating activities Net income (loss) Adjustments to reconcile net income to Net cash provided from operating activities Depreciation and amortization Net (gain) loss on assets (Increase) decrease in accounts receivable Increase (decrease) in allowance for doubtful accounts (Increase) decrease in inventory (Increase) decrease in prepaid expenses (Increase) decrease in other current assets Increase (decrease) in accounts payable Increase (decrease) in unearned revenue Increase (decrease) in interest payable Increase (decrease) in wages and payroll taxes payable Increase (decrease) in income taxes payable December 31, 2013 $437,988 $703,892 82,620 0 (316,718) (13) (493,442) 1,667 (11,451) 853,948 157,960 6,365 4,832 (78,741) 125,500 26,950 (188,643) (7,564) (125,360) (14,650) 4,612 263,400 46,820 3,456 (5,478) (278,950) Total adjustments 207,027 (149,907) Net cash (used) provided by operating activities 645,015 553,985 Cash flows from investing activities (Purchase) of fixed assets (Purchase) of intangibles (Purchase) of investments Net cash (used) provided by investing activities (460,087) (455,200) (40,036) (955,323) (274,300) 0 (12,650) (286,950) Cash flows from financing activities Proceeds from long-term liabilities Dividends paid Net cash (used) provided by financing activities 309,975 (48,000) 261,975 0 (32,000) (32,000) Net increase (decrease) in cash and cash equivalents (48,333) 235,035 Cash and cash equivalents at beginning of period 120,670 (114,365) Cash and cash equivalents at end of period $72,337 $120,670