2 3 1 1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below: A physical count of inventory revealed $441,020.00 of inventory A physical count of supplies revealed $7232.00 of supplies 4 Depreciation for the year was $24,005 5 The balance in prepaid rent represents an amount paid Dec. 1st for one year 6 7 Even though the notes receivable aren't due until April 30 2021 they will include 8% interest. The Dec. 31 balance represents a 6 month note originating on Nov. 1st 2020. Dec. 31st is a Thursday and $11,000 of salaries for a five day workweek are paid every Friday. 8 2. On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2020 9 10 11 Additional information needed for cash flow statement (not adjusting entries): Furniture was bought for cash and equipment was bought on credit. No assets were sold. Cash dividends of $50,000 were paid during the year. Use the indirect method for creating the Statement of Cash Flows assets liabilities retained earnings 13 12 3. Answer these questions: a. How would the financial statements be different if (each of these scenerios are independent): 14 15 We had missed counting incoming inventory of $1,700 16 17 We had forgotten to count supplies 18 19 20 21 22 23 We had forgotten to record depreciation The bookkeeper had thought the $40,000 we received 12-1 was for past services instead of services to be performed in January The bookkeper wasn't aware that the note payable includes 8% interest to be paid at maturity (calculated on the average balance) (record the amount the assets, liabilities, and retained earnings would change and indicate the direction of change with a + or - so that a poitive number would indicate it is too high by that amount and a negative number indicates it is too low by that amount.) b. How would the financial statements be different if all of these scenerios happened in 2020? 24 25 26