Answer questions included in attached file and use proper formatting.

The goal of this graded project is to create the following financial statements for Ice Cream Systems (ICS): Balance sheet Income statement Post-closing trial balance The financial statements must be created in one Word document (.doc or .docx file). Alternatively, an Excel workbook may be used (.xls or .xlsx file). A Rich Text Format (.rtf file) may be used by Mac users. The Word, Excel, or Rich Text Format file will be uploaded for grading. The following financial statements are provided for ICS: 1. Chart of Accounts 2. Post-Closing Trial Balance 3. Schedule of Accounts Receivable 4. Schedule of Accounts Payable 5. Schedule of Employer Payroll Taxes Allocation 6. Format for the Income Statement 7. Format for the Balance Sheet 8. Job Cost Record Chart of Accounts Assets (1000-1999) Account Number Account Title 1100 Cash 1200 Accounts Receivable 1300 Direct Materials 1350 Indirect Materials and Factory Supplies 1400 Work in Process 1500 Finished Goods 1600 Prepaid Advertising 1650 Prepaid Insurance 1700 Office Supplies 1800 Factory Equipment 1800.1 Accumulated DepreciationFactory Equipment 1850 Office Equipment 1850.1 Accumulated DepreciationOffice Equipment Liabilities (2000-2999) 2100 Accounts Payable 2200 Salaries Payable 2300 Federal Withholding Tax (FWT) Payable 2325 FICA Tax Payable 2350 FUTA Tax Payable 2375 SUTA Tax Payable 2500 Unearned Revenue Owner's Equity (3000-3999) 3100 Common Stock ($10 Par) 3150 Paid-In Capital in Excess of ParCommon Stock 3700 Retained Earnings 3900 Income Summary Revenues (4000-4999) 4100 Sales 4200 Sales Discounts Expenses (5000-5999) 5100 Cost of Goods Sold 5150 Factory Overhead 5200 Sales Salaries Expense 5225 Officers' Salaries Expense 5250 Office Salaries Expense 5300 Rent Expense 5350 Advertising Expense 5400 Utilities Expense 5450 Office Supplies Expense 5500 Postage Expense 5550 Telephone Expense 5575 Insurance Expense 5600 Depreciation Expense 5700 Payroll Tax Expense 5800 Bad Debt Expense 5900 Miscellaneous Expense Trial Balance January 1, 20 ACCOUNT NO. DESCRIPTION DEBIT CREDIT 1100 Cash $117,964.23 1200 Accounts Receivable 51,484.00 1300 Direct Materials 64,350.00 1350 Indirect Materials & Factory Supplies 18,772.00 1400 Work in Process 142,695.00 1500 Finished Goods 27,696.00 1600 Prepaid Advertising 1650 Prepaid Insurance 1700 Office Supplies 342.25 1800 Factory Equipment 246,857.00 1800.1 Accumulated Depreciation Factory Equipment 99,653.35 1850 Office Equipment 38,567.00 1850.1 Accumulated Depreciation Office Equipment 18,845.66 2100 Accounts Payable 9,814.00 2200 Salaries Payable 2300 FWT Payable 1,613.11 2325 FICA Tax Payable 822.68 2350 FUTA Tax Payable 1,032.39 2375 SUTA Tax Payable 1,871.20 2500 Unearned Revenue 3100 Common Stock ($10 Par) 350,000.00 3150 Paid-In Capital in Excess of ParCommon 32,500.00 3700 Retained Earnings 192,575.09 TOTALS $708,727.48 $708,727.48 ICE CREAM SYSTEMS Schedule of Accounts Receivable January 1, 20 Name Balance Horsfield Happy Ice Cream $17,345.00 Messina Missions 9,458.00 Ashman Alcove Designs 24,681.00 Day Dreamer's Ice Cream 0.00 Total Accounts Receivable $51,484.00 ICE CREAM SYSTEMS Schedule of Accounts Payable January 1, 20 Name Balance O-Ring Enterprises $6,941.00 Smith Synthetics 0.00 Rockaway Metal 2,873.00 OfficeMax 0.00 Total Accounts Payable $9,814.00 ICE CREAM SYSTEMS Schedule of Employer Payroll Tax Allocation January 31, 20 Employer Payroll Taxes Job Wages FWT (15%) FICA (7.65%) FUTA (0.8%) SUTA (1.45%) Total Employer Taxes Net Pay Direct Labor Totals Sales Salaries Officers' Salaries Office Salaries EXAMPLE COMPANY Income Statement For the Period Ending January 31, 20XX Operating Revenue Sales $ XXXXX.XX Less: Sales Discounts XXX.XX Total Operating Revenue $ XXXXX.XX Cost COGSCost of Goods Sold XXXXX.XX Total Cost XXXXX.XX Gross Profit XXXXX.XX Operating Expenses Sales Salaries Expense XXXXX.XX Officers' Salaries Expense XXXXX.XX Office Salaries Expense XXXXX.XX Rent Expense XXXXX.XX Advertising Expense XXXXX.XX Utilities Expense XXXXX.XX Office Supplies Expense XXXXX.XX Postage Expense XXXXX.XX Telephone Expense XXXXX.XX Insurance Expense XXXXX.XX Depreciation Expense XXXXX.XX Payroll Tax Expense XXXXX.XX Bad Debt Expense XXXXX.XX Miscellaneous Expense XXXXX.XX Total Operating Expenses XXXXX.XX Net Profit/(Loss) $XXXXX EXAMPLE COMPANY Balance Sheet As of January 31, 20 ASSETS Current Assets Cash $XXXXX.XX Accounts Receivable XXXX.XX Direct Materials XXXX.XX Indirect Materials and Factory Supplies XXXX.XX Work In Process XXXX.XX Finished Goods XXXX.XX Prepaid Advertising XXXX.XX Prepaid Insurance XXXX.XX Office Supplies XXXX.XX Total Current Assets $XXXXX.XX Property, Plant & Equipment Factory Equipment $XXXXX.XX Less: Accumulated Depreciation Factory Equipment XXXXX.XX XXXXX.X Less: Accumulated Depreciation Factory Equipment XXXXX.XX XXXXX.XX Office Equipment XXXX.XX Less Accumulated Depreciation Office Equipment XXXX.XX XXXX.XX Total Property Plant & Equipment XXXXX.XX TOTAL ASSETS $XXXXX.XX LIABILITIES Accounts Payable $XXXX.XX Salaries Payable XXXX.XX FWT Payable XXXX.XX FICA Tax Payable XXXX.XX FUTA Tax Payable XXXX.XX SUTA Tax Payable XXXX.XX Unearned Revenue XXXX.XX TOTAL LIABILITIES $XXXXX.XX STOCKHOLDERS' EQUITY Common Stock ($10 Par) $XXXXXX.XX Paid-In Capital in Excess of ParCommon Stock XXXXXX.XX Retained Earnings XXXXXX.XX TOTAL STOCKHOLDERS' EQUITY XXXXXX.XX TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $XXXXXX.XX JOB COST RECORD Job Number: Date Promised: Customer Name: Date Started: Job Description: Date Completed: Date Materials (Direct & Indirect) Labor Factory Overhead Estimate Actual Estimate Actual Date Estimate Actual PROJECT INSTRUCTIONS 1. Set up the General Ledger accounts, Accounts Receivable, and Accounts Payable accounts. Use the following blank forms (make as many copies as necessary). Insert the beginning balances from the Trial Balance and Schedules of Accounts Receivable and Payable DATE- ITEM-POST REF-DEBIT-CREDIT-BALANCE-DEBIT-CREDIT 1.Journalize the following entries for the month of January in the General Journal. Use the following blank forms (make as many copies as necessary). When using the Work in Process account, be sure to post to the appropriate Job Cost Record DATE -ACCOUNTS-POSTREF.-Dr- Cr Narrative of Transactions January 2Paid Mass Media $4,200.00 for prepaid advertising in local newspapers for the next 12 months. January 2Paid Pierce Properties $2,750.00 for January rent. Of this amount, 25% is for office facilities and 75% is for factory facilities. January 2Paid Owen's Insurance $6,000.00 for prepaid insurance for the first quarter of the year. January 3Received a check from Horsfield Happy Ice Cream as partial payment on account in the amount of $5,000.00. January 3Paid Rockaway Metal the balance of $2,873.00 on account. Narrative of Transactions January 2Paid Mass Media $4,200.00 for prepaid advertising in local newspapers for the next 12 months. January 2Paid Pierce Properties $2,750.00 for January rent. Of this amount, 25% is for office facilities and 75% is for factory facilities. January 2Paid Owen's Insurance $6,000.00 for prepaid insurance for the first quarter of the year. January 3Received a check from Horsfield Happy Ice Cream as partial payment on account in the amount of $5,000.00. January 3Paid Rockaway Metal the balance of $2,873.00 on account. January 10Receive a check from Horsfield Happy Ice Cream as partial payment on account in the amount of $5,000.00. January 10Receive a phone bill in the amount of $1,402.22 from Unique Telephone Systems on account. January 15Paid Liberty Bank $2,535.79 for December payroll taxes payable for the amounts of FWT Payable, $1,613.11; FICA Tax Payable, $822.68. January 15Assign Job 76 to Cold Refrigeration for the purchase of a refrigeration system. The start date will be January 16th. The completion date will be no later than February 28th. The estimated direct material is $9,175.00. The estimated indirect material is $1,860.00. The estimated direct labor is $15,600.00. The contract amount is $45,800.00.A deposit of $10,000.00 was provided by Cold Refrigeration in signing the contract. The deposit is unearned revenue. Half of the contract will be billed upon 50% completion with the deposit applied against that billing with the remaining amount due immediately. A quarter of the contract will be billed upon 75% completion of the contract with the amount due immediately. The remaining amount of the contract is to be billed when the job is 100% complete and is payable within 30 days of the billing. January 16Purchased $4,441.00 of factory supplies from Johnston Equipment paid in cash. January 16Purchased $2,965.00 of direct materials from Smith Synthetics on account. January 16Purchased $427.50 of office supplies from OfficeMax on account. January 19Apply from direct materials requisition $2,800.00 of direct materials. Apply from indirect materials requisition $325.00 of indirect materials. Apply from time cards s $7,950.00 of direct labor to Job 74 completing the job.Applied factory overhead is based on 25% of direct labor cost. Transfer the completed job to the COGS account from Direct Material and Indirect Material and Factory Overhead accounts. When making the journal entry for applying direct labor debit COGS for the gross pay and credit FWT Payable and FICA Tax Payable for the appropriate amounts with the net pay going to Salaries Payable. January 20. Paid the electric bill from Susquehanna Electric in the amount of $2,356.21 for the month of December. Allocate 30% to Factory Overhead January 20Paid the FUTA Tax Payable for the previous year. January 20Paid the SUTA Tax Payable for the previous year. January 23Ashman Alcove Designs paid the balance on account. January 27Paid O-Ring Enterprises the balance owed on account. January 27Paid post office $300.00 cash for postage added to postage meter January 28Apply from direct materials requisition $4,600.00 of direct materials. Apply from indirect materials requisition $950.00 of indirect materials. Apply $8,000.00 (from time cards) of direct labor and factory overhead to Job 76 irect materials. Apply $8,000.00 (from time cards) of direct labor and factory overhead to Job 76, completing 50% of the job. Factory overhead is based on 25% of direct labor cost. Transfer the partially completed job from Direct Material and Indirect Material to WIP. When making the journal entry for applying direct labor, debit WIP for the gross pay and credit FWT Payable and FICA Tax Payable for the appropriate amounts with the net pay going to Salaries Payable. Set up the accounts receivable and bill Cold Refrigeration for 50% of the contract on account, applying the initial $10,000.00 deposit against the billing. January 29Received a check from Cold Refrigeration in the amount of $9,976.25 on account. January 31Received the following data for the monthly payroll: Direct labor (already recorded) $19,600.00 Sales commission 5,132.50 Officers' salaries 5,000.00 Office salaries 1,920.00 Record the monthly payroll. Direct labor payroll has already been recorded, as it was incurred in January. Debit other salary expense accounts for the appropriate amounts; credit FWT Payable for 15% of gross pay; credit FICA Tax Payable for 7.65% of gross pay; and credit Salaries Payable for the net pay. Record the payroll taxes imposed on the employer for all personnel for the month of January. (Prepare the \"Schedule of Employer Payroll Taxes Allocation\" using the appropriate tax rates.) January 31Received a check from Messina Missions for the balance on account January 31Received a check from Horsfield Happy Ice Cream for the remaining balance on account. January 31Paid all employee wages earned in January. 3. Post the general journal entries to the General Ledger, the Accounts Receivable Ledger, and the Accounts Payable Ledger. Use the Post Ref. column to ensure that each line item of the journal entries is posted correctly to each general ledger account. Posting from the journal to the ledger is nothing more than rearranging the information; however, focus and concentrate because it's easy to make a mistake. 4. Calculate the balances in the general ledger accounts. Use an Excel spreadsheet or a printing calculator to run the numbers several times. Don't use a hand-held calculator, as it's far too easy to make a mistake using it. 5. Prepare the Schedules of Accounts Receivable and Accounts Payable. 6. Prepare an Unadjusted Trial Balance using the balances from the general ledger accounts. ACCOUNT DEBIT CREDIT 7. Journalize the following adjusting entries in the general journal. Adjusting Entries January 31Expense Prepaid Advertising for the month of January. January 31Expense Prepaid Insurance for the month of January. January 31Office supplies physical inventory as of January 31 is $276.21. January 31Depreciation for the month of January for Factory Equipment is $2,987.12. Depreciation for Office Equipment is $266.99. January 31Close out Factory Overhead of $190.24 to Cost of Goods Sold. 8. Post the adjusting journal entries to their respective ledger accounts, and calculate new balances for those accounts. 9. Prepare an Adjusted Trial Balance using the balances from the general ledger accounts. Use the blank form provided in step six. 10. Prepare an Income Statement following the formats shown in the Example Company Statements using the following blank form as a worksheet: 11. Journalize and post the closing journal entries in the general journal. Jan. 31Prepare closing entries to close revenue and expense accounts to Income Summary, and transfer the net income to Retained Earnings. 12. Post the closing journal entries to the respective ledger accounts, and calculate new balances for those accounts. 13. Prepare a Post-Closing Trial Balance using the balances from the general ledger accounts. Use the blank form that was provided in step six. 14. From the Post-Closing Trial Balance, create the Balance Sheet following the formats shown in the Example Company Statements using the following blank form as a worksheet: Use tables in the Word document if you feel you need them to format the financial statements. Alternatively, you can space and tab in Word to format the statements correctly. Formatting is important; keep in mind that points will be deducted for incorrect capitalization, spelling, underlining, and double underlining