A. Perform calculations and record solutions as instructed for each item on the appropriate TAB. Prepare all appropriate additional adjusting entries in general journal form. Post the entries to the worksheet and extend the amounts to the remaining columns.

B. Prepare the adjusted trial balance that reflects your adjusting entries.

C. Prepare Income Statement and Comprehensive Income Statement

1.In 2019 Co determined that a $350 receivable from Cici was not collectible and wrote it if off using the allowance method in 2019.On Dec 31, 2020, Co received a check from Cici for $200 in partial payment of this previously written off account.(Record collection of previously written off receivable )

2.Co borrowed $500,000 at 4% on 8/1/20 from BBC specifically for the purpose of constructing the new warehosue.The loan was recorded on 8/1 but no interest has been accrued.Please accrue the interest appropriately on this loan as well as the notes in #3 and 4.Prior to recording the interest make sure to take into consideration the facts in #6 below regarding cosntruction of the new storage warehouse. You may round 2-5 to the nearest whole dollar. Items 2-6 may be done as one entry and labeled 2-6 on adj entry sheet.

3. On February 29, Co signed a $100,000, 5 year, 6% note payable to BB&T.No interest was accrued on this note yet in 2020.

4.On September 1, 2020, Co signed a 1 year $150,000, non-interest-bearing note, Co received $144,000 cash for the note on Sept 1.No interest was accrued on this note yet in 2020.

5.Co has a note payable to BB&T for $50,000 at an annual interest rate of 3%.The five-year note is dated 4/30/19 and pays interest annually every 4/30.The interest on this note subsequent to 4/30 has not yet been accrued and must be used in the interest capitalization calculation along with other specific and non-specific debt.

6.Co made the following cash disbursements for the new warehouse construction in 2020.On 8/1/20 $100,000; on 9/30/20 $165,000; on 11/1/20 $80,000.For this and the above problem, you must firstl calculate weighted average accumulated expenditures from the disbursement, then calculate actual and avoidable interest, the lesser of the two can be capitalized to the new warehouse account:Warehouse in progress.Construction on the warehouse was started on 7/1/20.

7.An analysis completed by the controller's office, using the balance sheet(A/R) approach, indicates that 3% of total accounts receivable is uncollectible. No accounts were written off during the year.

8.Co uses a FIFO perpetual inventory system.However, additional inventory of bags of dog food was discovered in a delivery van after the final inventory counts and adjustements.Using information on TAB 4; calculate the value of the dog food inventory using PERPETUAL FIFO, LIFO and Avg Cost.Put your work and answers where indicated on the Tab 4.Prior to the discovery of the dog food in the van, only one bag (cost of $4.45) of this brand of dog food was reported in ending inventory.Based on your calculation of the amount and cost of the dog food using PERPETUAL FIFO, prepare the adjusting entry to add the cost of the additional bags of inventory discovered to Inventory and subtract from COGS.

9.Co owns a forklift for moving freight that was purchased in 2016 for $9,300. The forklift is being depreciated using a straight line over a 10-year useful life and has a $2,100 salvage value.This depreciation for the forklift was already recorded in 2020, however, analysis indicates the undiscounted future cash flows the forklift will provide are $6,000 and its fair value is estimated to be $5,800.Determine if the forklift is impaired and if so, record the appropriate impairment as an adjusting entry.Co estimates the new salvage value of the forklift to be $1,200 and that the forklift will last for 4 more years (i.e. it will last until the end of 2024).Compute the newannual depreciation, but do not record it, list the new annual depreciation on the line to the right.Put new annual depreciation expense here

10.Co bought a delivery van on March 1, 2020 for $18,500.Co's controller wants to see how much depreciation is using each of the following methods:Straight-line, double declining balance, and units of production and record the one that is the HIGHEST for 2020.The van has a 10 year useful life and $1,500 salvage value, it is expected to last 200,000 miles and was driven 28,000 miles 2020.Put you calculations and solutions for each method on Tab 5.Use partial periods depreciation, not full years

11.The tax rate is 30% which affects all items of income and expense at the same rate.Hint: you must determine income before taxes to calculate income tax expense. (Round total income tax expense to nearest whole dollar)

12.The 30% tax rate applies to "other comprehensive income" items as well as income statement items.

Pets in a JAR Year-End Worksheet December 31, 2019 PARTIALLY adjusted Trial Balance Adjusting Entries Adjusted Trial Balance Account Titles Dr Cr Dr. Cr. Or Cr Sh 344,239 344,239 upplies 18,450 18,450 counts Receivable 120,462 120,462 lowance for Doubtful Accounts 2,100 2,100 ventory 125,281 125,281 repaid Insurance 2,400 2,400 vestment in marketable securities ,850 ,850 and 78,000 78,000 uilding - Retail space 248,500 48,500 cumulated Depreciation-BI 36,975 36,975 quipment (forklift) 9,300 9,300 cumulated Depreciation-Equip (forklift) 2,520 2,520 elivery Van 8,500 18,500 ccumulated Depreciation - Van areshouse in progress (construction) 345,000 345,000 ccounts Payable 32,370 32,370 ayroll Taxes Payable 3,497 3,497 les Tax Payable 8,488 8,488 terest Payable laries and Wages Payable 5,612 5,612 ote Payable 50,000 50,000 earned Revenue ome Tax Payable IT Construction loan, 8/1/20 @ 4% 500,000 500,000 A Note Payable, 2/29/20 @ 6% 100,000 100,000 on-interest Note Payable, 9/1/20 150,000 150,000 scount on Non-interest Note Payable, 9/1/20 6,000 6,000 ommon Stock, $1 par 100,000 100,000 tained Earning 142,617 142,617 vidends les Revenue 1,104,411 1,104,411 st of Goods Sold 455,985 455,985 laries and Wages expense 422,793 422,793 dvertising expense 9,500 9,500 epreciation expense 9,420 9,420 isc. expense pplies expense 5,865 6,865 ility expense 2,668 2,668 pairment loss terest Expense 667 667 ad debt expense surance expense 2,250 2,250 realized gain/loss on AFS security 540 540 come tax expense come Summary Totals 2,239,130 2,239,130 2,239,130 2,239,130Weighted Average Accumulated Expenditures Date of Exp Amt X Weight* Weighted Exp TOTAL WAAE $ *# of months outstanding during interest capitalization period / 12 Avoidable Interest 11 WAAE x specific loan interest rate 12 Total WAAE Spec debt int rate Avoidable int 13 14 5 Actual Interest 16 Regular loan or note Interest = F X 17 Face Rate Time* R XT 18 19 20 IN TOTAL $ A *Mos of year note or loan is o/s in 2020 / 12 24 25 Non-interest bearing note Interest (Disc x 26 Discount Mos o/s in 2020 Total mos of note Mos/total mos #DIV/O! B 29 TOTAL ACTUAL INTEREST (A + B) #DIV/O! 1 ACTUAL INTEREST MUST BE ACCRUED FOR ALL O/S DEBT. THE LESSER OF ACTUAL OR AVOIDABLE GETS CHARGED TO THE ASSET INSTEAD OF INTEREST EXPENSE. 33 $4 So if avoidable is less than actual your entry will look like this: 35 Debit Credit 36 Int Exp Total actual - avoidable Whouse in prog Avoidable 38 Int Payable Total actual 39Sales and Purchase Schedule of Happy Pet Dog Food 20 lb bags in 2020 Cost of Goods Date Description Units Unit Cost Total Cost Units Sold Sales Price Total Sale ANSWERS Sold Ending Inventory Gross Profit 1/1/20 Beg Inventory 10 $ 4.00 $ 40.00 FIFO 1/31/20 Sale 2 8.00 $ 16.00 LIFO 2/29/20 Sale 6 8.20 49.20 Avg Cost 3/31/20 Purchase 10 4.50 45.00 *These answers should be in dollars 4/30/20 Sale 7 8.20 $ 57.40 6/30/20 Purchase 10 4.55 45.50 8/31/20 Sale 11 8.25 $ 90.75 9/3/20 Purchase 10 4.40 44.00 10/15/20 Sale 5 8.25 41.25 11/30/20 Purchase 10 4.45 44.50 12/31/20 Sale 15 8.25 $ 123.75 TOTALS 50 $ 219.00 46 378.35 All work can be done in any available space on this worksheet 9 0 6 00see video and extra example problem of St Life, DDD, and Uop depreciation posted in Asulearn To help 2 Van Derpeciation 2020 Deprec 3 Purchase Date 3/1/20 ANSWERS Expense 4 Purchase Price S 18,500 Straight line 5 Est life 10 years DDBalance 6 Est life 200,000 miles Units of Prod 7 Salvage Value 1,500 8 Driven in 2020 28,000 miles 9 10 All work can be done in any available space on this worksheet. 11 12 13 14 15 16Adjusting entries Credit Supporting Caluculations No. Account titles: Debit 14 D w 25 27 28 29 30 31 32 33 34 35 36 37 38Income Statement For the Year Ended December 31, 20201CHECK FIGURES: Net Income 116,329 Comp Income 116,869 Total Assests 1,269,873