ACC 101 Comprehensive Problem 2 Angel Corporation's trial balance at December 31, 2018 is presented on the next tab. All 2018 transactions have been recorded except for the items listed below the trial balance. (a) REQUIRED (Ignore income taxes) Prepare journal entries for the transactions listed on the next tab. (b) Prepare a 2018 adjusted trial balance, reflecting the unrecorded transactions (c) Prepare a 2018 multiple step income statement. Ch.5 Prepare a statement of retained earnings for the year ending December 31, 2018 Prepare a December 31, 2018 classified balance sheet. Angel Corporation Trial Balance December 31, 2018 Debit Credit 126,050.00 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 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Land Buildings Accumulated Depreciation Buildings Equipment Accumulated Depreciation Equipment Accounts Payable Dividends Payable Unearned Rent Revenue Notes Payable Interest Payable FICA SS Payable FICA Medicare Payable Federal Income Tax Payable Union Dues Payable Salaries Payable Bonds Payable (10%) Common Stock ($10 par) Paid-in Capital in Excess of Par - Common Stock Preferred Stock ($20 par) Paid-in Capital in Excess of Par - Preferred Stock Retained Earnings Treasury Stock Sales Revenue Rent Revenue Bad Debts Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Payroll Tax Expense Sales Salaries Expense Total 17,391 00 4,067.25 37.125 00 1,375.00 125,000.00 30,000.00 6.000.00 75.050.00 664.526.75 311,297.00 117,963.00 $ 1,109 210.00 3 1.109 210.00 Ch.13 Unrecorded transactions Sept 1 Angel issued 8.145 shares of $10 par value common stock for $283,000. Oct 1 Angel purchased 1,952 shares of its own stock for $48 per share. Nov. 30 Angal issued 1,783 shares of $20 par, 6% preferred stock for $81,451. Dec. 15 Angel declared a $1.75 per share dividend on the outstanding common stock, payable on January 15, 2019. Dec 31 Angel estimates that uncollectible accounts receivable at year and is $5,000 Dec 31 The building is being depreciated using the straight line method over 20 years. The salvage value is $15,000. Record the annual depreciation Dec. 31 The equipment is being depreciated using the units of production method over 10 years or 75,000 hours. The salvage value is $5,000. The equipment was used 7,400 hours this year. 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 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 employee payroll expenses, including federal income tax withheld of $3,240 and union dues of $120. 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. Dec. 31 Angel borrowed $45.000 from First State Bank on October 8, 2018. The note is due on February 3.2010 (120 days) and the bank is charging 8% interest Record the accrued interest at your end
