a) Using the T-Accounts provided below enter the opening balances for each account (b) Journalize the transactions for the month. Post the transactions and update the balances in the T-accounts. (c) Prepare an unadjusted trial balance at year end. (d) Record the adjustments required at the year end. Post the adjusting entries in the T Accounts created and update the account balances as required. (e) Prepare an adjusted trial balance at year end. (f) Prepare a multiple-step income statement, statement of owners equity, and classified balance sheet. Answer the following Questions 1. When should adjusting entries be recorded? 2. Why does the accounting cycle include trial balances 3. Calculate the gross profit margin and the current ratio for your business?

T Accounts for Answers A-B D

Cash

Accounts Receivable

Prepaid Insurance

Supplies

Merchandise Inventory

Land

Accumulated Depreciation

Accounts Payable

Unearned Revenue

Notes Payable

Interest Payable

Mortgage Payable

Owners Capital

Owners Drawings

Sales

Rent Revenue

Sales Returns and Allowances

Sales Discounts

Cost of Goods Sold

Salaries Expense

Rent Expense

Part B: Journal Entries:

Part C-

Unadjusted Trial Balance

Unadjusted Trial Balance

Part D- Adjusting Entries

Part D-

Adjusted Trial Balance

Unadjusted Trial Balance

Financial Statements:

Responses: 1. When are adjusting entries needed?

2. Why does the accounting cycle include trial balances? What do trial balances prove?

3. What is the Current ratio and Gross Profit Margin for the business?

The Daisy Flower Shop, owned by D. James, sells flowers. The shop has a March 31, 2020 fiscal year end, uses a perpetual inventory system. On March 1, 2020, the company's trial balance reported the following: Cash Merchandise inventory Supplies Sales Returns and Allowances Sales discounts Land Equipment Accumulated depreciation equipment Accounts payable Interest Payable Unearned revenue Notes payable-Due Dec. 2020 Mortgage Payable-Due 2025 $21,385 64,125 3,750 42,800 13,800 180.000 70.800 13,275 65,450 6,070 4,680 42,000 200,000 D. James, capital D. James, drawings Sales Rent revenue Cost of goods sold Advertising expense Salaries expense Rent expense Insurance expense Interest expense Accounts Receivable Prepaid Supplies $58,400 52,800 474,080 1,200 301,010 2,270 68,200 18,150 4,140 1,925 18,200 1.800 Transaction for the Month During the last month of the fiscal year, the company had the following transactions: 1. Paid $1500 for rent for the month 2. Borrowed $5,000 cash signing a 6 month Note Payable with 4.5% interest to be paid at the note's maturity 3. Purchased supplies on account for $345. 4. Hired a new employee to be paid $1,600 per week. 5. Collected $3,000 of the accounts receivable 6. Owner withdrew $4,800 cash Adiustment and additional data: 1. A count of supplies on March 31 shows $750 on hand. 2. The Equipment has an estimated 5-year useful life. 3. Of the mortgage payable, $60,000 must be paid on September 30 each year 4. An analysis of the Unearned Revenue account shows that 25% has been earned by March 31. 5. On March 31, services of $25,000 were provided but not recorded at year end. 6. The mortgage payable has a 6% interest rate. Interest is paid on the first day of each month for the previous month's interest. 7. Employees earned $350 per day. On March 31, 2020, 6 employees were unpaid for 4 days. 8. A 12-month insurance policy was purchase February 1, 2020 for $1,800 9. The telephone bill for the month was for $550, and at the end of the month it was not recorded or paid