b

Francis Company Inc. Unadjusted Trial Balance and Frank Company Inc. Unadjusted Trial Balance

Francis Company, Inc. December 31, 2017 Unadjusted Trial balance 45,000 23,000 1,500 Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Interest Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends Sales Sales Returns & Allowances 84,000 0 5,000 40,000 12,000 16,000 75,000 42,000 14,000 18,000 7,000 65,000 106,000 2,500 3,000 511,000 2,300 Sales Discounts 1,900 Cost of Goods Sold 45,500 Delivery Expense 2,000 Depreciation Expense 16,000 Bad Debt Expense 0 Rent Expense 98,300 Insurance Expense 40,000 Wages Expense 200,000 Supplies Expense 15,500 Interest Revenue Loss on Disposal 0 Interest Expense 6,500 Income Tax Expense 36,000 Total 767,000 ALL CAUC) Urinis VULUIVICII MUSI DE UPLURULU TU UZL 0 767,000 N 2 balance on the previous page and the information provided below. Use only the Part 1a: Prepare adjusting journal entries using the unadjusted trial account names provided on the previous page (do not create any new account 1. On Dec 31, 2017 merchandise was sold on account for $16,500 with a cost of $5,500 names), terms 3/10 net 30. 2. The company received a 6 month, 12% interest note short-term note for the amount listed at the end of the 6 months. Write the adjusting journal entry required for its financial on the unadjusted trial balance on Oct. 1, 2017. All interest and principal will be paid back statements as of Dec. 31, 2017 3. Uncollectable Accounts Receivables of $1,600 need to be written off for the year ended 2017 4. Management estimates that of the remaining accounts receivable balance, $2,000 will be uncollectible. Record the adjustment based on this information. Hint: Use the AFDA balance AFTER the above write off during 2017. Use an AFDA T-account! 5. A piece of equipment was retired on Dec 31, 2017. The equipment originally cost $34,000 and has related A/D of $24,000 as of Jan. 1. 2017. Additional depreciation of $3,000 needs to be recorded on this piece of equipment at Dec 31, 2017. Update the depreciation below (#5). Then record the retirement (#6). 6. Record the retirement of the equipment (from #5) including the gain or loss. ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L 3 Part 1b: Post the adjusting journal entries to t-accounts: journal entry. Write in the unadjusted balance for each of these accounts (from page 1)...the (Specific instructions: Above each T-account, write the account name of each account affected by a journal entries from page 2 onto the corresponding T-accounts and then calculate adjusted unadjusted balance might be a debit, a credit, or zero balance. Now you are ready to post your balances.) - -H 1 ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L Part 1c: Prepare the Adjusted Trial Balance (i.e., use ending balances after the previous journal entries are posted) December 31, 2017 Adjusted Trial balance Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Interest Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Revenue Loss on Disposal Interest Expense Income Tax Expense Total ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L 5 Frank, Inc. December 31, 2017 Adjusted Trial balance Debit Credit 48,000 38,900 2,000 50,000 1,350 5,000 52,000 6,500 16,000 37,000 12,000 28,000 14,000 2,000 55,000 114,000 2,500 Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Interest Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Revenue Loss on Disposal Interest Expense Income Tax Expense Total 2,000 519,500 13,000 3,000 59,500 5,000 19,000 2,600 102,000 25,000 195,000 16,000 1,350 7,000 2,500 44,000 750,350 750,350 Part 2a: Prepare a Multi-step Income Statement Chapter 5. You may not need to use all the lines provided. Note: The two columns (Be sure to include all the necessary headings, totals and subtotals as outlined in below do not represent debit and credit balances like they do on a trial balance. On the Income Statement, use the right column for subtotals and totals.) Inc. Income Statement Year Ended Dec. 31, 2017 ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L Part 2b: Prepare a Statement of Retained Earnings. Inc. Statement of Retained Earnings Year Ended Dec 31, 2017 ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L and totals as outlined in Chapter 2. You may not need to use all of the lines provided. Not The Part 2c: Prepare a Classified Balance Sheet (Be sure to include all the necessary succes two columns below do not represent debit and credit balances like they do on a trial. On the Balance Sheet, use the right column for subtotals and totals.) Inc Balance Sheet As of Dec 31, 2017 ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L