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AccountingRequired:Suzanne Johnson has just provided you with the attached beginning balances for 2017. Assume this trial balance has been correctly prepared. Plush's year end is
AccountingRequired:Suzanne Johnson has just provided you with the attached beginning balances for 2017. Assume this trial balance has been correctly prepared. Plush's year end is December 31st.(A) Using the Excel General Journal spreadsheet in this file, record the 2017 transactions listed below AND the necessary year end adjusting journal entries. Label the transactions in numeric sequence corresponding to the numbers below. Each of the transactions below requires a journal entry. Note that there is a debit and credit control total at the top of the general journal so that you can check after each entry to see if you are in balance.1. Issued an additional 10,000 shares of common stock on January 2. The stock was sold for $80,000, which equals the par value of the stock.2. Purchased store equipment for $10,000 cash on January 3.3. Provided services for cash of $35,000 on February 5.4. Provided services on credit for $90,000 on February 10.5. Received bill and paid utilities of $15,000 on February 15.6. Paid sales salaries of $30,000 on March 1.7. Incurred legal fees of $6,000 on April 10, but did not pay for these services.8. Declared and paid dividends to stockholders of $2,000 on April 30.9. Collected $25,000 for services to be provided over the coming year on June 30.10. Paid $72,000 for a three-year insurance policy on July 10 with coverage beginning on August 1.11. Paid $1,000 for a three-week equipment rental on September 10.12. Collected $10,000 from the February 10 transaction on October 20.13. Paid $1,000 of the amount owed for legal fees incurred on April 10 on November 18.14. Sold land with cost of $100,000 for $120,000 cash on December 1.Suzanne also provided you the following information that she thought may be helpful in preparing the year-end financial statements.15. As of December 31, Plush has not recorded any insurance expense for the year. The only insurance policy it owns is the one purchased in #10 above.16. Plush depreciates its store equipment at a rate of $8,000 per year. Depreciation expense has not been recorded as of December 31.17. For the fees collected on June 30 (#9 above), Plush estimated that 30% of the service fees collected in advance had been earned by the end of the year.18. Plush received a timesheet from a field technician indicating that services amounting to $35,000 had been provided that need to be billed to customers and recorded.19. Plush incurs salaries of $4,000 at the end of the year. The next payroll date is January 2 of the following year. (Ignore payroll taxes and withholdings)(B) "Post" the journal entries from the General Journal to the Excel spreadsheet of T-accounts in this file. All necessary T-accounts have been provided. This should be completed through the use of Excel formulas rather than retyping the numbers in your T-accounts. Please also place the number of each transaction next to each journal entry (see transaction '1' in the Excel T-Account sheet for an example). TIP: Set up your spreadsheet to have debit and credit control totals so that you can check after each entry to see if you are in balance.(C) In Excel, prepare a balance sheet as of 12/31/17 and a SINGLE-STEP income statement for the year ended 12/31/17. This should be completed through the use of Excel formulas rather than retyping the ending balances from your T-accounts in the financial statements. Note that you do not need to record closing entries to the General Journal, just use the T-account balances to create your balance sheet and income statement. You do NOT need to prepare a Statement of Shareholders' Equity or Statement of Cash Flows. Income taxes should be ignored.Trial Balance 1-1-17General Ledger Account Name Unadjusted T/B 1/1/17Debit CreditCash 38,000Accounts Receivable 30,000Prepaid Insurance 0Store Equipment 70,000Accum Depreciation 0Land 100,000Accounts Payable 8,000Dividends Payable 0Unearned Service Revenue 0Salaries Payable 0Notes Payable 30,000Common Stock 60,000Retained Earnings 140,000DividendsService RevenueGain on Sale of Land 0Rental ExpenseBad Debt ExpenseDepreciation ExpenseInsurance ExpenseLegal Fees ExpenseUtilities ExpenseSalaries ExpenseTotal 238,000 238,000 0.00GenJournalPlush Service CorporationGeneral JournalSet up control totals here# Date Transaction Debit Credit1 1/2/17 Cash 80,000Common Stock 80,000To record issuance of common stock.T-AccountsPlush Services Corporation NAME:Cash Accounts Receivable Prepaid Insurancebeg 38,0001 80,000end 118,000Equipment Accum Depreciation LandAccounts Payable Unearned Services Rev Salaries PayableNotes Payable Common Stock Retained Earnings60,000 beg80,000 1140,000 endDividends Service Revenue Gain on Sale of LandSalaries Expense Legal Fees Expense Rental ExpenseInsurance Expense Depreciation Expense Utilities ExpenseIncome StmtStudent Name:Section:Total ExpensesNet IncomeBalance SheetStudent Name:Section:Total AssetsLiabilities and Stockholders' EquityCurrent LiabilitiesTotal Current LiabilitiesTotal LiabilitiesStockholders' EquityTotal Stockholders' EquityTotal Liabilities and Stockholders' Equity
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