ACC 101 Comprehensive Problem 2 3 Angel Corporation's trial balance at December 31, 2018 is presented on the next tab. 4 All 2018 tilansactions have been recorded except for the items listed below the trial balance. 5 6 REQUIRED (Ignore income taxes) Prepare journal entries for the transactions listed on the next tab. Prepare a 2018 adjusted trial balance, reflecting the unrecorded transactions. Prepare a 2018 multiple step income statement. Prepare a statement of retained earnings for the year ending December 31, 2018. Prepare a December 31, 2018 classified balance sheet. 7 (a) 9 ) 10 (d) HNR. Angel Corporation Trial Balance December 31, 2018 coonWN- Credit Cash Debit 126,950.00 82,000.00 1,200.00 36,500.00 129,500.00 180,000.00 34,000.00 125,000.00 14,400.00 38,075.00 16,000.00 45,000.00 v 17,391.00 4,067.25 37,125.00 1,375.00 2 7 Accounts Receivable 8 Allowance for Doubtful Accounts 9 Inventory 10 Land 11 Buildings 12 Accumulated Depreciation - Buildings 13 Equipment 14 Accumulated Depreciation - Equipment 15 Accounts Payable 16 Dividends Payable 17 Unearned Rent Revenue 18 Notes Payable 19 Interest Payable 20 FICA SS Payable 21 FICA Medicare Payable 22 Federal Income Tax Payable 23 Union Dues Payable 24 Salaries Payable 25 Bonds Payable (10%) 26 Common Stock ($10 par) 27 Paid-In Capital in Excess of Par - Common Stock 28 Preferred Stock ($20 par) 29 Paid-in Capital in Excess of Par-Preferred Stock 30 Retained Earnings 31 Treasury Stock 32 Sales Revenue 33 Rent Revenue 34 Bad Debts Expense 35 Interest Expense 36 Cost of Goods Sold 37 Depreciation Expense 38 Other Operating Expenses 39 Payroll Tax Expense 40 Sales Salaries Expense Total t v V V v 125,000.00 30,000.00 6,000.00 75,050.00 P 8 664,526.75 1 311.297.00 117.963.00 41 1,109210.00 $ 1,109,210.00 Data & instructions Angel TB Journal Adj. Trial Balance Income S 49 43 44 Unrecorded transactions: 45 Sept. 1 Angel issued 8,145 shares of $10 par value common stock for $283,000. 46 Oct. 1 Angel purchased 1,952 shares of its own stock for $48 per share. 47 Nov 30 Angel issued 1,783 shares of $20 par, 6% preferred stock for $81,451. 48 Dec. 15 Angel declared a $1.75 per share dividend on the outstanding common stock, payable on January 15, 2019 50 Dec. 31 Angel estimates that uncollectible accounts receivable at year end is $5,000. 51 Dec. 31 The building is being depreciated using the straight line method over 20 years. The salvage 52 value is $15,000. Record the annual depreciation 53 Dec 31 The equipment is being depreciated using the units of production method over 10 years or 54 75,000 hours. The salvage value is $5,000. The equipment was used 7,400 hours this year 55 Dec. 31 The unearned rent represents receipt of 4 months' rent in advance (November 1, 2018 through February 28, 2019). Prepare the December adjusting entry. 57 Dec 31 Angel employs 6 salespeople, each of whom earn $4.125 per month and have been employed since January 1, FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee. and FICA Medicare taxes are 1.45% of gross pay. Prepare the employer's entry to record December 60 employee payroll expenses, including federal income tax withheld of $3.240 and union dues of $120. 61 Dec. 31 Prepare the employer's payroll tax expense for December. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7.000 paid to each employee 63 Dec. 31 Angel borrowed $45.000 from First State Bank on October 8, 2018. The note is due on February 64 3.2019 (120 days) and the bank is charging 8% interest Record the accrued interest at year-end Data & instructions Angel TB Journal Ad Trial Balance income me 58 59