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.

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. ***

Check Figures:

Unadjusted Net Loss: ($9,737)

Adjusted Net Loss: ($360,991)

Journal Entries:

19.June 2:Mr. Burns issued a 2:1 Stock Split

20.June 3:Mr. Burns bought back an additional 200,000 shares of Treasury Stock at $.50 per share

21. June 21: The following expenses accrued and are to be paid in a later month:Pension Expense $60,000, Health Insurance Expense $50,000, and Professional Fees $10,000.

22.July 1.Mr. Burns issued $600,000, 10 years (semi annual payments) coupon rate of 10%, market rate of 12%.Mr. Smithers gave this bond the code name Bond #1

23.July 1.Mr. Burns issued $500,000 bond (Bond #2) 10 years (semi-annual payments) coupon rate of 12%, market rate of 10%.

24. September 8: Mr. Burns paid the expenses accrued on June 21. The accrued expenses were paid with one check transaction.

25.October 1: The Grocery Store paid the principle of the note and the interest.

26 October 15:Mr. Burns wrote off the amount sitting in allowance for doubtful account because Abe Simpson refused to pay for the cookies he bought in 2019.Mr. Burns used $50,000 of personal funds to hire a hit squad to go after Abe Simpson.

27.November 1:After being advised by legal counsel and Mr. Smithers that killing off competition was considered murder, Mr. Burns decided to get a patent to keep from his secrets from being used by his rivals. He paid $200,000 for his patent which will be amortized for 15 years.

28.December 1:Mr. Burns bought Cookie Dough and paid for the amount up front to get a bulk discount.The amount paid is $400,000

29.December 8:Mr. Burns bought office supplies on account from Staples for $50,000.

30.December 9 Mr.Burns sold $400,000 of cookies on account to Shelbyville.The cost of sales was $200,000

31. December 25: Mr. Burns paid a cash dividend after being visited by the three ghosts of Christmas to the Shareholder $400,000

32. December 31: Mr. Burns made interest payment on Bond #1.Use effective interest method.The payments are considered to be ordinary annuities

33.December 31:Mr. Burns made interest payment on Bond #2 Use effective interest method.The payments are considered to be ordinary annuities