Dresser Company sells one product. This project summarizes the accounting cycle for 2020 for Dresser Company. Please complete the following requirements, recording your answers in the project’s Excel file.

1. The financial statements for year ended December 31, 2019 are presented in the first worksheet of the Excel data file for this project. Post these beginning balances to the T-accounts in the third worksheet in the file.

2. Prepare the journal entries presented on the next page of this document in the second worksheet of the Excel file.

3. Post the journal entries to the T-accounts in the third worksheet.

4. Prepare an unadjusted trial balance as of Dec. 31, 2020 in the fourth worksheet based on the balances in the T-accounts in the third worksheet.

5. Prepare the adjusting journal entries presented on the next page of this document in the second worksheet.

6. Post the adjusting journal entries to the T-accounts in the third worksheet. Record these adjusting journal entries in the fourth worksheet as well.

7. Prepare an adjusted trial balance as of Dec. 31, 2020 in the fourth worksheet.

8. Complete the rest of the accounting worksheet for the income statement and balance sheet in the fourth worksheet in the Excel file.

9. Prepare a multiple-step income statement in the fifth worksheet in the Excel file. Income tax expense is 30%. No earnings per share calculations required.

10. Prepare the journal entry to record income taxes in the second worksheet and post the amounts to the T-accounts in the third worksheet.

11. Prepare a statement of Retained Earnings in the sixth worksheet.

12. Prepare a classified balance sheet in the seventh worksheet.

13. Prepare the closing entries as of Dec. 31, 2020 in the second worksheet.

14. Post the closing entries to the T-accounts in the third worksheet.

15. Prepare a post-closing trial balance in the eighth worksheet.

Additional information:

1. All sales, sales returns, purchases, and purchase returns of inventory are on account unless stated otherwise.
2. Inventory is accounted for using the perpetual inventory method and FIFO.
3. All salary and wages are considered selling expenses.
4. Dresser does not offer sales discounts to its customers and does not take advantage of any purchase discounts offered by its suppliers.

Journal Entries:

1. Dresser paid the interest due on the Bonds Payable on January 1.
2. Dresser paid $950 of salaries and wages, which includes the amount accrued as of December 31, 2019.
3. Dresser sold 4,000 units of inventory for $15.00 each.
4. Dresser purchased supplies on account for $1,300.
5. Dresser purchased 2,000 units of inventory for $1.60 each.
6. Dresser sold 2,600 units of inventory for $16.00 each.
7. Dresser wrote off as uncollectible the accounts of Barker Corporation ($2,200) and Elm Company ($3,400).
8. Dresser paid the interest due on the Bonds Payable on July 1.
9. Dresser purchased 2,500 units of inventory for $1.62 each.
10. Dresser collected $1,400 from Elm Company, part of the balance previously written off.
11. Dresser paid salaries and wages of $72,000.
12. Dresser paid $6,600 for insurance coverage from May 1, 2020 thru April 30, 2021.
13. Dresser sold 3,500 units of inventory for $16.50 each.
14. Dresser collected $87,800 from customers on account.
15. Dresser purchased 3,800 units of inventory for $1.65 each.
16. Dresser paid $10,300 on accounts payable.
17. Dresser sold 500 units of inventory for $15.50 each as a cash sale.
18. Dresser paid $1,600 selling expenses and $3,850 administrative expenses.
19. Dresser declared and paid $6,000 in dividends to its stockholders.
20. Dresser accepted a $55,000, 6%, 3 year note receivable from a trusted customer for 3,000 units of inventory on October 1. The market rate of interest on Oct. 1 was 5%. Interest is received semiannually on April 1 and Oct. 1

Adjusting Journal Entries:

1. Prepaid insurance expires evenly each month.
2. A count of supplies at year end revealed $480 of supplies on hand.
3. Interest is recorded on the long-term note receivable.
4. Interest is recorded on the Bonds Payable.
5. Depreciation on the equipment is calculated using the sum-of-years-digits method. The salvage value is $2,000, life is 10 years, and 4 years are depreciated as of Dec. 31, 2019.
6. Depreciation on the building is calculated using the straight-line method. The salvage value is $10,000, life is 30 years, and 10 years are depreciated as of Dec. 31, 2019.
7. Salaries and wages payable at year end amounted to $800.
8. Dresser performed an aging analysis of its year end Accounts Receivable as follows:

		0-30 days	31-60 days	days	> 90 days
A/R Balance %	$ (balance)	60%	20%	10%	10%
% Uncollectible		10%	30%	50%	70%

9. Income tax is recorded at $25,916.

Check figures:

Cash ending balance	$ 3,950	Total Unadjusted Trial Balance	$ 423,725
Inventory ending balance	$ 3,795	Total Adjustment columns on Worksheet	$ 63,300
Interest receivable balance	$ 825	Income before income tax	$ 86,488
Accounts receivable balance	$ 81,670	Total Current Assets	$ 73,319
Retained earnings balance	$ 68,067	Total Current Liabilities	$ 41,466