5. Prepare a multi-step income statement on the IS worksheet. The income statement should be in good form (proper titles, etc., use examples from your book for guidance) and properly formatted. All cells containing numbers should be formula-driven, not manually entered numbers. The income statement should be linked to the adjusted numbers on the worksheet. Here is what I have:
1. On the "AJE worksheet, prepare the adjusting journal entries in good form for the following items. Identify each entry by letter in Column B. Round all answers to the nearest dollar. You may omit explanations. Leave a blank row between each journal entry. All the accounts you need are given on the worksheet. Use only these accounts, written exactly as presented on the worksheet. (Hint: use cell references.) Prepare journal entries and financial statements for the year ended December 31, 2019. No adjusting entries have been made since December 31, 2018 a. Grizzlies, Inc. borrowed money by issuing a nine-month, $12,000, 8.0% note on October 1, 2019 with interest and principal to be paid on maturity. b. On November 1, 2019, Grizzlies, Inc. rented storage space at a cost of $800 per month. On that date Grizzlies, Inc. recorded Prepaid Rent for five months' rent paid in advance. C. Grizzlies, Inc. recorded the purchase of $4,400 of shop supplies during the year by increasing the Shop Supplies account. A physical count of the shop supplies on December 31, 2019, shows $3,300 in shop supplies on hand d. Store supplies totaling $15,200 were purchased during the year and were immediately recorded as an expense. A physical count of the store supplies on hand December 31, 2019, indicates a balance of $2,500. e. On April 1, 2019, Grizzlies, Inc. purchased a 24-month insurance policy for $12,800. f. On July 1, 2019, Grizzlies, Inc. collected $16,000 for consulting services to be performed from July 1, 2019 to February 28, 2020. The company credited the Unearned Consulting Revenue account when paid. g. Grizzlies, Inc. rented idle office space to Squirrels, Inc. on February 1, 2019, at a rate of $1,200 per month. On this date Grizzlies, Inc. credited Unearned Rent Revenue for one year of rent received in advance. h. Grizzlies, Inc. is open five days a week and has a daily payroll of $4,400. Employees are paid every Friday. Assume December 31 is a Wednesday. The payroll is allocated as follows: 25% of the payroll relates to office employees, and the balance relates to sales employees. i. Depreciation for store equipment has been calculated to be $1,200 per month. j. Depreciation for office equipment has been calculated to be $800 per month. Activate Wi k. Utilities expenses of $1,100 were incurred, but not yet recorded Utilities expense is allocated as follows: Go to Settings t 10% relates to the office and the balance relates to the store. Grizzlies, Inc. Adjusting Journal Entries For the Year Ended December 31, 2019 Account Title Dr. Interest Expense 240 Interest Payable Item Cr. a. 240 b. 1,600 Rent Expense Prepaid Rent 1,600 C. 1,100 Shop Supplies Expense Shop Supplies 1,100 d. 2,500 Store Supplies Expense Store Supplies 2,500 e. 4,800 Insurance Expense Prepaid Insurance 4,800 f. 12,000 Unearned Consulting Revenue Consulting Revenue 12,000 g. 14,400 Unearned Rent Revenue Rent Revenue 14,400 h. Office Salaries Expense Sales Salaries Expense Salaries Payable 3,300 9,900 13,200 i. 14,400 Depreciation Expense - Store Equipment Accumulated Depreciation - Store Equipment 14,400 j. 9,600 Depreciation Expense - Office Equipment Accumulated Depreciation - Office Equipment 9,600 k. Utilities Expense-Office Utilities Expense-Store Utilities Payable 110 990 1,100 Income Stmt Dr. Cr. Balance Sheet Dr. Cr. 1,100 Grizzlies, Inc. Worksheet For the Year Ended December 31, 2019 Unadjusted Adjusted Account Title Trial Balance Adjustments Trial Balance Dr. Cr. Dr. Cr. Dr. Cr. Cash 36.000 Accounts Receivable 277,000 Inventory 242,500 Prepaid Insurance 12,800 4.800 Prepaid Rent 4,000 1,600 Store Supplies 300 2.500 Shop Supplies 4.400 1,100 Store Equipment 120.000 Accumulated Depreciation - Store Equipment 12,000 14,400 Office Equipment 32,000 Accumulated Depreciation - Office Equipment 2,400 9.600 Accounts Payable 49,000 Salaries Payable 13,200 Interest Payable 240 Utilities Payable Uneamed Consulting Revenue 16,000 12,000 Uneamed Rent Revenue 14.400 14,400 Note Payable 12.000 Common Stock 300.000 Retained Earnings 189 350 Dividends 13,200 Sales Revenue 1,581,800 Consulting Revenue 12.000 Rent Revenue 14.400 Interest Revenue Cost of Goods Sold 975.000 Sales Salaries Expense 275,000 9.900 Office Salaries Expense 150,000 3,300 Miscellaneous Administrative Expense 5,650 Miscellaneous Selling Expense 13,900 Depreciation Expense - Store Equipment 14.400 Depreciation Expense - Office Equipment 9.600 Store Supplies Expense 15,200 2.500 Shop Supplies Expense 1,100 Rent Expense 1,600 Insurance Expense 4.800 Interest Expense 240 Utilities Expense-Store 990 Utilities Expense-Office 110 2,176,950 2,176,950 74,940 74,940 2,215,490 2,215,490 73,440 73,440 Net Income | Activate Windows Go to Settings te Adjusting JE Column Totals 73,440 Adjusted Trial Balance Column Totals 2,215,490 Gross Profit 606,800 Net Income 128,410 Ending Balance in Retained Earnings 304,560 Total Assets on Balance Sheet 685,300 Ending Balance in Income Summary -0- 1. On the "AJE worksheet, prepare the adjusting journal entries in good form for the following items. Identify each entry by letter in Column B. Round all answers to the nearest dollar. You may omit explanations. Leave a blank row between each journal entry. All the accounts you need are given on the worksheet. Use only these accounts, written exactly as presented on the worksheet. (Hint: use cell references.) Prepare journal entries and financial statements for the year ended December 31, 2019. No adjusting entries have been made since December 31, 2018 a. Grizzlies, Inc. borrowed money by issuing a nine-month, $12,000, 8.0% note on October 1, 2019 with interest and principal to be paid on maturity. b. On November 1, 2019, Grizzlies, Inc. rented storage space at a cost of $800 per month. On that date Grizzlies, Inc. recorded Prepaid Rent for five months' rent paid in advance. C. Grizzlies, Inc. recorded the purchase of $4,400 of shop supplies during the year by increasing the Shop Supplies account. A physical count of the shop supplies on December 31, 2019, shows $3,300 in shop supplies on hand d. Store supplies totaling $15,200 were purchased during the year and were immediately recorded as an expense. A physical count of the store supplies on hand December 31, 2019, indicates a balance of $2,500. e. On April 1, 2019, Grizzlies, Inc. purchased a 24-month insurance policy for $12,800. f. On July 1, 2019, Grizzlies, Inc. collected $16,000 for consulting services to be performed from July 1, 2019 to February 28, 2020. The company credited the Unearned Consulting Revenue account when paid. g. Grizzlies, Inc. rented idle office space to Squirrels, Inc. on February 1, 2019, at a rate of $1,200 per month. On this date Grizzlies, Inc. credited Unearned Rent Revenue for one year of rent received in advance. h. Grizzlies, Inc. is open five days a week and has a daily payroll of $4,400. Employees are paid every Friday. Assume December 31 is a Wednesday. The payroll is allocated as follows: 25% of the payroll relates to office employees, and the balance relates to sales employees. i. Depreciation for store equipment has been calculated to be $1,200 per month. j. Depreciation for office equipment has been calculated to be $800 per month. Activate Wi k. Utilities expenses of $1,100 were incurred, but not yet recorded Utilities expense is allocated as follows: Go to Settings t 10% relates to the office and the balance relates to the store. Grizzlies, Inc. Adjusting Journal Entries For the Year Ended December 31, 2019 Account Title Dr. Interest Expense 240 Interest Payable Item Cr. a. 240 b. 1,600 Rent Expense Prepaid Rent 1,600 C. 1,100 Shop Supplies Expense Shop Supplies 1,100 d. 2,500 Store Supplies Expense Store Supplies 2,500 e. 4,800 Insurance Expense Prepaid Insurance 4,800 f. 12,000 Unearned Consulting Revenue Consulting Revenue 12,000 g. 14,400 Unearned Rent Revenue Rent Revenue 14,400 h. Office Salaries Expense Sales Salaries Expense Salaries Payable 3,300 9,900 13,200 i. 14,400 Depreciation Expense - Store Equipment Accumulated Depreciation - Store Equipment 14,400 j. 9,600 Depreciation Expense - Office Equipment Accumulated Depreciation - Office Equipment 9,600 k. Utilities Expense-Office Utilities Expense-Store Utilities Payable 110 990 1,100 Income Stmt Dr. Cr. Balance Sheet Dr. Cr. 1,100 Grizzlies, Inc. Worksheet For the Year Ended December 31, 2019 Unadjusted Adjusted Account Title Trial Balance Adjustments Trial Balance Dr. Cr. Dr. Cr. Dr. Cr. Cash 36.000 Accounts Receivable 277,000 Inventory 242,500 Prepaid Insurance 12,800 4.800 Prepaid Rent 4,000 1,600 Store Supplies 300 2.500 Shop Supplies 4.400 1,100 Store Equipment 120.000 Accumulated Depreciation - Store Equipment 12,000 14,400 Office Equipment 32,000 Accumulated Depreciation - Office Equipment 2,400 9.600 Accounts Payable 49,000 Salaries Payable 13,200 Interest Payable 240 Utilities Payable Uneamed Consulting Revenue 16,000 12,000 Uneamed Rent Revenue 14.400 14,400 Note Payable 12.000 Common Stock 300.000 Retained Earnings 189 350 Dividends 13,200 Sales Revenue 1,581,800 Consulting Revenue 12.000 Rent Revenue 14.400 Interest Revenue Cost of Goods Sold 975.000 Sales Salaries Expense 275,000 9.900 Office Salaries Expense 150,000 3,300 Miscellaneous Administrative Expense 5,650 Miscellaneous Selling Expense 13,900 Depreciation Expense - Store Equipment 14.400 Depreciation Expense - Office Equipment 9.600 Store Supplies Expense 15,200 2.500 Shop Supplies Expense 1,100 Rent Expense 1,600 Insurance Expense 4.800 Interest Expense 240 Utilities Expense-Store 990 Utilities Expense-Office 110 2,176,950 2,176,950 74,940 74,940 2,215,490 2,215,490 73,440 73,440 Net Income | Activate Windows Go to Settings te Adjusting JE Column Totals 73,440 Adjusted Trial Balance Column Totals 2,215,490 Gross Profit 606,800 Net Income 128,410 Ending Balance in Retained Earnings 304,560 Total Assets on Balance Sheet 685,300 Ending Balance in Income Summary -0
