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Alfredo Company sells several types of pasta and sauce to grocery chains. The company's reporting year-end is December 31 . The Information necessary to prepare
Alfredo Company sells several types of pasta and sauce to grocery chains. The company's reporting year-end is December 31 . The Information necessary to prepare the year-end adjusting entries appears below. 1. Office equipment is depreciated at a rate of 10% per year. 4. On March 1,2022, the company lent a supplier $20,000 and a note was signed requiring principal and interest at 5% to be paid February 28,2023 . 5. On April 1, 2022 the company paid an insurance company $7,000 for a one-year fire insurance policy. 6. $600 of supplies remained on hand at December 31, 2022. 7. The company received $3,000 from a customer in December for 1,500 pounds of spaghetti to be delivered in January 2023 . 8. Management estimates that 5% of receivables will become uncollectible. 9. In March, 2022, the company invested $120,000 in stock of a start-up company. As of December 31,2022 , the investment's fair value is $170,000 The company's stock consists of 60,000 shares of no par value stock. This is the maximum amount of shares authorized. The income tax rate is 21%. Required: a. Using the information provided, prepare a 10-column worksheet for Alfredo's for the year ended December 31, 2022. b. Prepare a separate worksheet showing your adjusting entries in good form. c. Prepare a multiple step income statement, statement of retained earnings and a classified balance sheet. A statement of cash flow is not required
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