Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

B13 6 7 12 AutoSave Off General Information Made On High, Inc. is a purveyor of fine locally-sourced hemp products (well, product. They make

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

B13 6 7 12 AutoSave Off General Information Made On High, Inc. is a purveyor of fine locally-sourced hemp products (well, "product." They make one hemp product] The business started up in January 2010 and has been quite successful ever since. (Prio year financials have been provided as well as an amortization schedule for a long-term note payable) All sales and purchases are on account. A count of the units of finished goods inventory at the end of last year is recorded in the Inventory Worksheet and will need to be rolled forward for the capitalization of manufacturing costs in the current period. The company still believes that 2% of ending Accounts Receivable is a reasonable estimate of its Allowance for Doubtful Accounts balance and the tax rate is 21% Transaction activity for the year has been listed below. Transactions in GREEN have already been recorded in the GL. Transactions in white are yet to be recorded. And finally, past assignments have prompted students for the appropriate Adjusting Journal Entries (AJEs.] Not this time! There are four AJEs necessary, three of which relate to transactions that were recorded for you (the green ones) Record the four necssary AJEs. Finally, using the prior year financial provided, produce a set of four comparative financials. (The company only ever includes two years in their comparative financials.) Presentation is a key component in properly reporting the financial position of the company! 2 / Paid Accounts Payable, Accrued Salaries, and Accrued Taxes owed from last year. 32 Paid $4,200 to renew their annual insurance policy. The new policy is effective beginning February 29. 3 5 On September 1, made scheduled principle and interest payment on the long-term note (see amortization schedule.) Purchases of direct material from local growers amounted to $805,000. You are a little delayed paying several of your suppliers by year end, still owing $210,050. All of the purchased material was used up in production during the year. Direct labor is necessary to make the hemp products by hand. You believe in paying a more livable wage and thus. your workers were paid cash an average of $25 per hour and all told, worked 30,156 hours throughout the year. With their hardwork, they produced 103,682 units of fine hemp products. 5 You note there were many indirect costs needing allocated to inventory for things like utility costs, salaried management, use of the building, you know, overhead. Most of these indirects were paid with cash, but also include some depreciation Looking through all of your documentation and calculations, it looks like indirects include $269,750 of cash paid overhead costs, and $40,250 of allocated depreciation 24 25 26 off. > Sales of hemp goods for the year were $2.542.690 for 110.552 units. Record the entry to match expenses to revenues (matching principle) for the previously recorded sale. (The 10 9 Total cash collections for the year were 2.501,540 11# The company's cash payments for Salaries totaled $100,630 and they still owe those employees $16,420 as of year While shopping in the store early in the year, a customer tripped over some ill-placed merchandise and broke their face. Court proceedings have been occuring ever since. In late November after an important procedural motion, attorneys for the company believe a settlement will be reached with the "alleged victim" based on their experience with similar cases. They estimate a payout around $300,000 next year. #Disposed of some old equipment that was originally purchased for $50,000. The 5-year property had been depreciated for 4 full years assuming a salvage value of $2,000. The company sold the equipment for $1,500. 14 On July 1, Bought back 2,000 common shares for $27 each 17 18 # A.E 19 # A.E 20 # A.E #A.E V Ready File Home Insert Draw Page Layout Formulas Data Review View Automate Help Acrobat Power Pivot PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit. it's safer to stay in Protected View. Enable Editing X fx Disposed of some old equipment that was originally purchased for $50,000. The 5-year property had been depreciated for 4 full years assuming a salvage value of $2,000. The company sold the equipment for $1,500. F GH I K L M N 0 P R S T U V X Y #The company paid $10,000 in estimated tax payments (in addition to the payment in transaction 1 above) during the year. They will pay whatever remaining amount when they file their taxes next spring 16 # Paid cash dividend to common shareholders (outstanding) totalling $50,000. 8P Made On High Work File pk- Protected... #According to your property subsidiary ledger, there was $43,211 of non-manufacturing related Depreciation Expense that needs recorded for year-end > 47F Temps rise Protected.... Saved to this PC Data GL Amort. Inv IS CY BS CY OE CY 4,200 2.542.690 110.552 2.501.540 100,630 16,420 117,050 CF CY 9600 38400 11600 10,000 50.000 43,211 3500 Prepaid Insurance AJE 6207 Interest Expense AJE 1279 ADAMBad Debt AJE Taxes AJE Q Search IS PY BS PY O Search OE PY CF PY I % A Lisa Benton LB Q Comments W 0 X )) Share Z 11:23 AM 10/22/2023 X AA 61% R25 1 2 3 4 5 6 7 3 10 11 22 13 14 15 17 19 20 AutoSave off 82 e . Made On High Work File pk- Protected... Saved to this PC File Home Insert Draw Page Layout Formulas Data Review View Automate Help Acrobat PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit. it's safer to stay in Protected View. vix fx -SUM(R3:R24) 21 22 23 Tran 10 locked Account Cash Beg Bal 134,899 (443,090) (4,200) -~---*^**222******* B Ready 47F (594,950) (753,900) (269,750) 24 25 Totals 315.579 26 180,680 27 Balanced? 2,345,361 28 Balanced? 2,343,361 29 1,500 (54,000) (10,000) (50,000) 2,501.540 (2,501,5400 (100,650) AR 22,800 Temps rise 2,542,690 Data . ADA (456) (1,279) (1.735) 961,776 2,343,361 Assets Inventory 509,085 805,000 (805.000) 509,085 Prepaid Insurance 600 4,200 (4,100) 700 1,381,585 GL Amort. Inv IS CY G Accum PPE Depr 1,668,300 (117,457) (40,250) (50,000) 38,400 BS CY T. 1. TH F 10 (43.211) TH | = 19 10 Accounts Accrued Payable Salaries 381,796 8,377 (381,796) (8,377) OE CY 210,050 1.618.300 (162.518)-510,050 300,000 210,050 (171,746) CF CY H Q Search 16,420 16,420 IS PY (6,611) 6,207 6.207 M BS PY Liabilities Accrued Accrued Note Interest Taxes Payable 6,611 52,917 360,596 (52,917) Search 90,510 Power Pivot N Enable Editing (22,007) 90.510 338.589 O P 141 IM OE PY CF PY Common Stock 10,000 (2,000) 8,000 Owners' Equity APIC-C/S 90,000 (52,000) 38,000 R Retained Earnings 1,307,474 (13,222) (10,000) (50,000) (43,211) (753,900) Cost of Goods Sold-Direct Labor (310,000) Cost of Goods Sold-Overhead 2,542,690 Sales (805,000) Cost of Goods Sold S Description (RevExp/Div) Interest Expense (117,050) Salaries Expense (300,000) Accrued Liability Expense (10,100) Loss on Sale of Equip (4,100) (6,207) Tax Expense OMVIDEND Depreciation Expense Insurance Expense interest Expense (1,279) Bad Debt Expense (90,510) Tax Expense 1.335.585 U V A Lisa Benton LB # D X PComments Z AA 0 X Share X AB ACA 11:25 AM 10/22/2023 57% 1 K28 6 7 8 AutoSave On File Home Insert Draw Page Layout X LG Paste Clipboard 29 30 A N Calibri BI 1 2 Beginning Balance FG 2019 3 4 5 Ready Current Period Production 9 10 Total Available for Sale 11 IX fx B ES 12 Current Period Sales (LIFO) 13 Current Production 14 Previous Production 15 16 17 Ending Balance FG 2019 18 19 Current Period Production 20 21 22 23 24 25 Total Available for Sale 26 U Direct Materials Purchases Direct Labor Incurred Indirect Costs Allocated 47F High pollen 27 Current Period Sales (LIFO) 28 Current Production Previous Production 31 32 Ending Balance FG 2020 33 Font Direct Materials Purchases Direct Labor Incurred Indirect Costs Allocated Data GL Accessibility: Good to go Total COGS: Total COGS: 11 Amort. s Cost A^ A A 341,448 Raw data for Made On High Work.... Upload Pending Formulas Data Review 860,850 805,929 238,748 1,905,527 N == Inv == D Units 20,085 112,090 2,246,975 132,175 102,229 1,737,890 102,229 1,737,890 102,229 509,085 29,946 Alignment F $ / unit IS CY BS CY 17.00 7.68 7.19 2.13 17.00 17.00 17.00 17.00 View F Fy OE CY CF CY Q Search Automate Help General $ % 9 00-0000 Number G IS PY N H BS PY Search Acrobat Power Pivot Conditional Formatting Format as Table Cell Styles I Styles OE PY J CF PY K H L + Insert V Delete Format Cells M WE N AY 0 Sort & Find & Filter Select Editing O P Sensitivity Sensitivity Q Add-ins Add-ins R A Lisa Benton Analyze Data S # T LB Create PDF Create PDF and and share link share via Outlook Comments U Adobe Acrobat V W Share 11:26 AM 10/22/2023 X X 85% X AutoSave On 3 4 5 6 7 8 File Home Insert Draw Page Layout G C28 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Paste 25 26 27 28 $ Clipboard 5 - A 2-C Calibri 11 BIU - 8.8 vix fx B Current Assets Cash Assets Inventory Prepaid Insurance Total Current Assets Total Assets 47F High pollen Accounts Receivable Allowance for Doubtful Accounts Net Accounts Receivable Long-Term Assets Property, Plant, and Equipment Accumulated Depreciation Net Property, Plant, and Equipment Font Data GL Ready Accessibility: Good to go . Raw data for Made On High Work..... Upload Pending Amort. Formulas Data A A A- $ S 5 === 2019 134,899 22,800 (456) 22,344 509,085 600 666,928 1,668,300 (117,457) 1,550,843 2,217,771 Review Alignment Inv IS CY BS CY 2020 H View 23 5 D E As of December 31, Automate Help Acrobat Power Pivot General Conditional Formatting $%9 Format as Table Cell Styles Styles Number Current Liabilities Accounts Payable Accrued Salaries F Accrued Interest Accrued Taxes Total Current Liabilities Total Liabilities Liabilities Long-Term Liabilities Note Payable OE CY CF CY Owners' Equity Common Stock,10,000 shares issued and outstanding, $1 par APIC-Common Stock Q Search Retained Earnings Total Owners Equity Search Total Liabilities & Owners' Equity IS PY BS PY checksum G 2019 OE PY CF PY Insert Delete Format Cells $ 381,796 8,377 6,611 52,917 449,701 360,596 810,297 10,000 90,000 1,307,474 1,407,474 $ 2,217,771 H 2020 A O 2 Sort & Find & Filter Select Editing I Sensitivity Sensitivity Add-ins J 88 @ P Add-ins Analyze Data K A Lisa Benton LB L Comments Share P Create PDF Create PDF and and share link share via Outlook Adobe Acrobat M D B N 0 O P 11:28 AM 10/22/2023 x A 100%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Accounting questions

Question

=+b) Drivers scores on the written part of a driving test.

Answered: 1 week ago