After nearly destroying the city of Springfield USA because of many near nuclear melt downs caused by Homer Simpson, Mr. Burns decided to go into selling cookies.On January 2, 2020, Mr. Burn continued his Good Old Fashion Cookies Empire.The company is still a merchandise company and still uses a perpetual inventory system.

1.Prepare all the journal entries on a document. (To be turned in separately)

2.Post all journal entries to the worksheet

3.Post all adjusting journal entries to the worksheet

4.In good form, produce a multi step Income Statement, Statement of Retained

Earnings, Balance Sheet, and Statement of Cash Flow

Instructions:

1. Post the journal entry amounts in columns G and I, post adjusting journal entry amounts in columns O and Q, and post the closing entry amounts in columns W and Y.
2. Do not touch the columns with the account balances for they are formula driven.You will not have to calculate anything!
3. For tracking purposes post the journal entries as they appear.The regular transaction numbers will be posted in columns F and H.The adjusting transaction numbers will be posted in columns N and P.The closing transaction numbers will be posted in columns V and X.Regular transactions will have just the number (1, 2, 3, ect).Adjusting transactions will have A in front of the number (A1, A2, A3, ect).Closing transactions will have C in front of the number (C1, C2, C3).
4. For the statements: use only the cells marked in yellow to put in numbers.The totals will calculate for you.You will not be required to do any formatting.

Misc Information:Mr. Burns sold off all of his fixed assets from the nuclear power plant.Also, there was an adjustment to the allowance for uncollectible account during your brief respite.Mr.Smithers performed the necessary entries to get the books up to date; this included the reduction of the mortgage payable. However, you will calculate interest expense, bad debt expense, and depreciation expense.These amounts will not be given to you.Good luck and time manage appropriately. ***For any note/mortgage payable, you find interest expense the same way you find interest revenue. ***

Adjusting Entries:

At December 31, 2020, Mr. Burns Good Old Fashion Cookies made the following adjusting entries.

A1.Mr. Burns recorded the depreciation for the fixed assets.The truck had 50,000 miles at December 31 and has an expected life of 3 years. Round to the nearest dollar.The other assets used double-declining balance. Use one entry for expense portion.

A2.75% of Mr. Burns Prepaid Rent Expired, 50% of Prepaid Ins Expired

A3. After Physical Inventory Conducted:Balance in plant supplies at year end: $900.Balance in office supplies at year end: $20,000

A4.Income Taxes accrued $70,000.This is to be paid March 15, 2021

A5.Office Salaries accrued $20,000.Wages accrued $15,000

A6.Mr. Burns uses the balance sheet approach to estimate how money he will lose in uncollectible accounts.Since the city of Springfield is in a serve recession, Mr. Smithers estimated for Mr. Burns that 8% of this year ending accounts receivable will be uncollectible.

A7. Two months of the patent have expired.

A8.Mr. Smithers discovered a sale on account earned by not yet recorded, $60,000.Since this amount was discovered after the estimate for uncollectible account, this amount WILL not be included in adjusting entry A6.There were no discount terms

A9.70% of the unearned sales revenue was earned in 2020

A10 Physical Inventory count results $448,000.The amount is considered immaterial and can be adjusted to Cost of Goods Sold

Closing Entries:

C1.Close Revenues & Expenses directly to Retained Earnings

C2.Close Cash Dividends to Retained Earnings