b. Store Fixtures, straight-line, 15 years, no residual value. (Click the icon to view the T-account balances from Requirement 3.) STORE FIXTURES: Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Date Cost Cost Life Expense Depreciation Depreciation Accumulated Book Value 1/1/2024 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 + Cash Bal. 886,451 (z) 1,300 2,490 (z) Bal. 885,261 Accounts Payable 340,000 Bal. 340,000 Bal. Petty Cash Interest Payable Bal. 200 Bal. 200 0 Bal. Sales Revenue 2,055,000 Bal. 2,055,000 Bal. Interest Revenue 7,800 Bal. 1,300 (z) 9,100 Bal. Note Payable Accounts Receivable 600,000 Bal. Cost of Goods Sold Bal. 250,000 Bal. 889,000 600,000 Bal. Bal. 250,000 Bal. 889,000 Allowance for Bad Debts Common Stock Franchise Fee Expense 570,000 Bal. Bal. 41,100 0 Bal. 570,000 Bal. Bal. 41,100 Merchandise Inventory Retained Earnings Bal. 181,000 Bal. 181,000 Salaries Expense Bal. 210,000 0 Bal. Bal. 210,000 Dividends Office Supplies Bal. 10,000 Bal. 639 Utilities Expense Bal. 13,500 Bal. 10,000 Bal. 639 Bal. 13,500 Bal. Prepaid Insurance 3,200 Bal. 3,200 Bal. Insurance Expense Interest Receivable Supplies Expense Bal. Bal. Notes Receivable Bad Debts Expense Bal. 270,000 Bal. Bal. 270,000 Bank Expense Land (z) 2,490 Bal. 140,000 Bal. 2,490 Bal. 140,000 Credit Card Expense Bal. 1,700 Building Bal. 480,000 Bal. 1,700 Bal. 140,000 Credit Card Expense 1,700 Bal. Building Bal. 480,000 Bal. 1,700 Bal. 480,000 Accum. Depr.-Building Store Fixtures Bal. 90,000 Bal. 90,000 0 Bal. Accum. Depr.-Store Fixtures Bal. Depr. Expense-Building Depr. Expense-Store Fixtures Bal. Bal. Depr. Expense-Office Equipment Amortization Expense- Franchise 0 Bal. Bal. 0 Office Equipment Bal. 55,000 Interest Expense Store Fixtures Bal. Bal. 90,000 Bal. 90,000 Accum. Depr.-Store Fixtures Bal. 0 Bal. Bal. Office Equipment Bal. 55,000 Bal. 55,000 Accum. Depr.-Office Equipment Franchise Bal. 51,000 Bal. 51,000 Bal. Depr. Expense-Office Equipment Amortization Expense- Franchise Interest Expense Cash Short and Over 10 Bal. 0 Bal. Bal. 10 4. In preparation for preparing the adjusting entries, complete depreciation schedules for the first five years for the depreciable plant assets, assuming the assets were purchased on January 2, 2024: a. Building, straight-line, 30 years, $60,000 residual value. b. Store Fixtures, straight-line, 15 years, no residual value. c. Office Equipment, double-declining-balance, five years, $7,000 residual value. 5. Record adjusting entries for the year ended December 31, 2024: a. One year of the prepaid insurance has expired. b. Management estimates that 7% of Accounts Receivable will be uncollectible. c. An inventory of office supplies indicates $479 of supplies have been used. d. Calculate the interest earned on the outstanding Geard Contracting note receivable. Assume the note was received on October 31. Round to the nearest dollar. e. Record depreciation expense for the year. f. Record amortization expense for the year on the franchise, which has a 10-year life. g. Calculate the interest owed on the note payable. Assume the note was issued on January 1. 6. Post adjusting entries and prepare an adjusted trial balance. 7. Prepare a multi-step income statement and statement of retained earnings for the year ended December 31, 2024. Prepare a classified balance sheet as of December 31, 2024. Assume Interest Receivable is a current asset and Interest Payable is a current liability. 8. Evaluate the company's success for the first year of operations by calculating the following ratios. Round to two decimal places. Comment on the results. a. Liquidity: b. Efficiency: i. Current ratio ii. Acid-test ratio iii. Cash ratio i. Accounts receivable turnover ii. Day's sales in receivables iii. Asset turnover iv. Rate of return on total assets