Answer the following questions. Use the information below to create an adjusting trial balance, income statement, closing entries, statement of retained earning, balance sheet, and cash flow statement.

Page 1 of Project - QUESTIONS ON FINANCIAL STATEMENTs: NAME: Complete: reference to TAB: 2points each- SHOW COMPUTATIONS/OR USE FORMULAS IN EXCEL What is the total of all debits in the adjusting journal entries? Debits 2 What is the total of all credits in the closing journal entries? Credits 2 What is the accounting equation? (write out each component, write the formula) What are Total Assets at the end of the year? See the Balance Sheet What are Total Liabilities at the end of the yeat? See tho Balance Shect What is total Stockholders' Equity at the end of the year? See the Balance Sheet What is the beginning balance of Retained Earnings? Sec the Statement of Retained Earnings. What is the net income computed after adjustments are posted? See the Income Statement. What is Retained Earnings computed after adjustments are retained earnings 9 posted, and net income is determined? See the statement of In a classified Balance Sheet, what would Current Assets be at the end of the year? See the Balance Sheet 10 10 In a classified Balance Sheet, what would Current Liabilities be at the end of the year? See the Balance Sheet 11 What is the net realizable value of accounts receivable at the end of the year? See the Balance Sheet. 12 12 What is the amount of gross profit earned during the year? See the Balance Sheet. 13 13 14 What is the net book value of depreciable fixed assets at the end of the year? See the Balance Sheet. 14 What is the historical cost of land if the land was listed for sale on December 4 at $70,000, appraised at the end of the year for $78,000, and the company received an offer for the 15 land of $74,000 on December 28? What is Change in Retained Earnings in the current year? See the statement of retained earnings 16 16 If we prepared a Statement of Cash Flows, what would the total of Cash on the last line be on the Statement of Cash 17 Flows? 18 What is the working capital? 19 What is the current ratio? 17 18 19 There are 24,000 shares outstanding at the end of the year. 20 What is the Earnings Per Share for the year? 20 points AJE Unadjusted Trial Balance Debit Credit Adjustecd Accounts Adjustments Journal Trial Balance Entry #s ebit Credit Debit Credit 2,000 Accounts Receivable Allowance for Doubtful 2,200 500 400 Prepaid Insurance Inventorv 4,500 25,000 30,000 1,400 25,000 30,000 Accumulated Depreciation 15,500 Trademarks 50,000 48,500 Accounts Pavable 5,000 2,000 Wages Payable FICA Taxes Payable FUTA & SUTA Taxes Payable Federal & State Income Taxes Payable Unearned Revenue Common Stock Paid-in Capital Retained Earnings Dividends Service Revenue Cost of Goods Sold 2,247 435 6,500 6,700 24,000 24,000 15,000 36,000 15,000 4,800 14,0 16,900 500 Bad Debt Expense nsurance Expense Supplies Expense Payroll Tax Expense 700 284 Impairment Loss for 1,500 Trademarks Depreciation Expense CONTROL: Debits must equal Credits 13,684 13,684 158,3001 158,300 163,684163,684 INSTRUCTIONS: You may print the entire workbook and complete this project on paper or complete the project in Excel. You can use formulas if you want, etc. (a) Reconstruct the amount of the Adjusting Journal Entries (AJEs), above, assign a number to each AJE, and then prepare the tab "AJEs". On the AJE Tab, give a brief explanation of cach journal entry (Note: Failure to include an explanation for each Journal Entry will result in loss of points) Prepare the following financial statements: Income Statement; Statement of Retained Earnings; Balance Sheet. Use the appropriate format with the Name of the Company, Data and the Name of the Financial Statement on Each workpaper b) Prepare an Income Statement for ABC Consulting c) Prepare the Closing Entries in order to prepare the Balance Sheet in the next step for ABC Consulting d) Prepare a Statement of Retained Earnings for the End of Year. e) Prepare a Balance Sheet for ABC Consulting f) Analyze the Financial Statements and complete the answers on the Tab "Questions 1-20." Failure to answer the questions will result in a zero. g) For 10 pts. Extra Credit, prepare a Cash Flow Statement - you will have to design the format on Credit Reference Account Name/Explanation for AJE: Debit n each jowrnal 10 points 2) Income Summary Bad Debt Expense Rent etc. 3) 4) TOTAL Debits &Credits