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.

2. Prepare all journal entries to the worksheet

3. Prepare 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

Misc Information: Mr. Burns sold off all 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

Check Figures:

Unadjusted Net Loss: ($9,737)

Adjusted Net Loss: ($360,991)

Journal Entries:

1. January 2: After returning from exile, Mr. Burns invested $600,000 of personal funds directly in the business (retained earnings) to strengthen his grip on the cookie market. No common stock ownership was given.

2. January 3: In order to keep the IRS off his trail, Mr. Burns transferred money from his personal account into a Cayman Island secret account for $1,000,000.

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

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

I can't devide these problems as it won't make sence. If it can't be solved all than please do adjusted entrees and closing entries.

This is the spreadsheet that I supposed to work with.

I had no chance to review with professor this project due to the Corona virus and now she's not responding on email.

Please help

Thank you