ACC 120 Final Exam During the first month of operations, the following transactions were completed by ABC Corporation: Dec 1 Issued 25,000 shares of $3 par common stock for cash of $22 per share. ABC Company pays cash for Land and a building to be used in operations. The Dec 3 land cost $90,000 and the building cost $80,000. Dec 4 Purchased $8,000 of store fixtures on account. Purchased merchandise inventory from XYZ Company for $118,000, terms n/com, Dec 5 FOB destination. ABC sold $50,000 of merchandise on account, 2/10, n/30, FOB shipping point. The Dec 6 cost of merchandise sold was $20,000. Dec 9 Paid adverting costs of $18,000 to promote new business. Purchased merchandise inventory from QRS Company for $85,000, terms n/30, Dec 10 FOB destination. Dec 11 Purchased 400 shares of treasury stock for $15 per share. Dec 12 ABC's Board of Directors declared a $38,000 cash dividend. Dec 13 Paid $750 for utilities. Dec 15 Paid cash dividends to common shareholders. Dec 16 Received payment for merchandise sold on Dec. 6th.Dec 23 Dec 24 Dec 31 ABC sold $75,000 of merchandise on account, 2l10, nl30, FOB shipping point. The cost of merchandise sold was $35,000. Sold 250 shares of treasury stock for $20 per share. Paid balance owed to XYZ Company for purchases on Dec 5. At the end of December, the following adjustment data were assembled. After a physical count of inventory, it was determined that $147,200 of inventory exists at December 31. Based on an analysis of NR, ABC Company anticipates 3% of NR to be uncollectible. Buildings are depreciated using the straight line method with no salvage value for 30 years. Round to the nearest dollar. Store Fixtures are depreciated using the straight-line method with no salvage value for 5 years. Round to the nearest dollar. Directions: Journalize the routine transactions above on the Journal-December tab. Journalize the adjusting entries above on the Journal-December tab (below the routine entries). Use the Adjusted Trial Balance provided to prepare nancial statments for ABC Corporation. You are only responsible for preparing the Income Statement, Statement of Retained Earnings, and classified Balance Sheet. These should be completed on the Financial Statements tab. You should complete your nal project in this Excel workbook using the following tabs: Journal- December and Financial Statements. You may use another spreadsheet program as long as Excel can open the le. ABC Corporation is a retail company that begins operations on December 1, 20xx, which is incorporated in the state of NC. The ABC Corporation is authorized to issue 100,000 shares of $3 par common stock. The company uses a perpetual inventory system. The following is a chart of accounts for ABC Corporation. As a new business, all beginning balances are $0. 210 Accounts Payable 113 Accounts Receivable 131 Accumulated Depreciation - Building 141 Accumulated Depreciation - Store Fixtures 520 Advertising Expense 114 Allowance for Doubtful Accounts 531 Bad Debt Expense 130 Building 110 Cash 330 Cash Dividends 230 Cash Dividends Payable 310 Common Stock, $3 Par Value 510 Cost of Merchandise Sold 522 Depreciation Expense - Building 525 Depreciation Expense - Store Fixtures 120 Land 115 Merchandise Inventory 312 Paid-in Capital - Treasury Stock 311 Paid-in Capital in Excess of Par - Common Stock 320 Retained Earnings 410 Sales 140 Store Fixtures 340 Treasury Stock 530 Utilities ExpenseName ABC Corporation General Journal GENERAL JOURNAL Date Account Titles and Explanation P. R. Debit CreditABC Corporation Unadjusted Trial Balance December 31, 20xx Debit Credit Cash EA 253,250 Accounts Receivable $ 73,500 Allowance for Doubtful Accounts $ Merchandise Inventory $ 148,000 Land $ 90,000 Building $ 80,000 Accumulated Depreciation - Building $ Store Fixtures $ 8,000 Accumulated Depreciation - Store Fixtures $ Accounts Payable $ 93,000 Cash Dividends Payable $ Common Stock, $3 Par Value $ 75,000 Paid-in Capital in Excess of Par - Common Stock $ 475,000 Paid-in Capital - Treasury Stock $ 1,250 Retained Earnings $ Cash Dividends LEA 38,000 Treasury Stock $ 2,250 Sales $ 122,500 Cost of Merchandise Sold $ 65,000 Advertising Expense $ 18,000 Depreciation Expense - Building $ Depreciation Expense - Store Fixtures $ Utilities Expense $ 750 Bad Debt Expense $ $ 766,750 $ 766,750ABC Corporation Adjusted Trial Balance December 31, 20xx Debits Credits Cash 253,250 Accounts Receivable $ 73,500 Allowance for Doubtful Accounts $ 2,205 Merchandise Inventory $ 147,200 Land $ 90,000 cAl Building 80,000 Accumulated Depreciation - Building $ 222 Store Fixtures $ 8,000 Accumulated Depreciation - Store Fixtures 133 Accounts Payable 93,000 Cash Dividends Payable Common Stock, $3 Par Value 75,000 Paid-in Cabital in Excess of Par - Common Stock 475,000 Paid-in Capital - Treasury Stock 1,250 Retained Earnings Cash Dividends 38,000 CA CA Treasury Stock 2.250 Sales $ 122,500 Cost of Merchandise Sold 55,800 Advertising Expense 18,000 Depreciation Expense - Building 222 Depreciation Expense - Store Fixtures 133 Utilities Expense 750 Bad Debt Expense 2,205 $ 769,311 $ 769,311Name ABC Corporation Financial Statements ABC Corporation Income Statement For the month ended December 31, 20xx ABC Corporation Statement of Retained Earnings For the month ended December 31, 20xxABC Corporation Balance Sheet December 31, 20xx