Bogie and Bacall Company
End of Period Worksheet
For the Year Ended December 31, 2016
	Unadjusted				Adjusted
Account Title	Trial Balance		Adjustments		Trial Balance
	DR	CR	DR	CR	DR	CR
Cash	48,800	-
Accounts Receivable	77,450	-
Allowance for Doubtful Accounts		2,000
Interest Receivable	-
Merchandise Inventory	160,500	-
Prepaid Insurance	18,000	-
Prepaid Advertising	48,000
Prepaid Rent	-
Store Supplies	4,250	-
Office Supplies	-	-
Note Receivable	24,000
Store Equipment	175,000	-
Accumulated Depreciation - Store Equipment	-	40,050
Office Equipment	80,000	-
Accumulated Depreciation - Office Equipment	-	-
Accounts Payable	-	85,200
Salaries Payable	-	-
Interest Payable	-	-
Unearned Rent	-	20,000
Unearned Consulting Revenue
Note Payable (payment due 2020)	-	146,000
Common Stock	-	60,000
Retained Earnings	-	110,500
Dividends	35,000	-
Sales Revenues	-	808,950
Consulting Revenue		24,000
Sales Returns and Allowances	11,700	-
Sales Discounts	7,200	-
Cost of Goods Sold	457,200	-
Sales Salaries Expense	94,650	-
Advertising Expense		-
Depreciation Expense - Store Equipment	-	-
Store Supplies Expense	-	-
Miscellaneous Selling Expense	2,600	-
Office Salaries Expense	34,000	-
Rent Expense	10,200	-
Insurance Expense	-	-
Depreciation Expense - Office Equipment	-	-
Office Supplies Expense	6,500	-
Miscellaneous Administrative Expense	1,650	-
Rent Revenue	-	-
Interest Revenue
Interest Expense	-	-
Bad Debt Expense	-	-
	1,296,700	1,296,700

1. On the designated worksheet, prepare in journal entry form the adjusting journal entries for the following items. Letter entries to correspond to the below information and present them in alphabetical order. (Round all numbers to the nearest dollar)

a. On September 1, 2016 a 12-month insurance policy was purchased for $18,000.

b. On July 1, 2016 B&B paid Lorre Advertising $48,000 for two years of advertising services. Equal services are provided in year 1 and year 2.

c. B&B needed some additional storage space so on March 1, 2016 they rented a unit for an annual rate of $10,200. The entire amount was expensed when paid.

d. $4,250 of store supplies were purchased during the year and the asset Store Supplies was increased. $2,750 of these supplies were used during the year.

e. $6,500 of office supplies were purchased during the year and were immediately expensed. A count of the office supplies on hand December 31, 2016, indicates a balance of $1,200.

f. On August 1, 2016, B&B issued a 9-month note receivable to Greenstreet & Co. at an annual interest rate of 5%. Principle and interest will be paid at the end of the 9-months. The note was recorded in Notes Receivable and is the only note outstanding.

g. Depreciation for store equipment is based on the following: Straight line depreciation Store Equipment Assets were held for the entire year; Residual Value = $5,000; Service life is estimated to be 10 years

h. The Office Equipment was purchased January 1, 2016. Depreciation for office equipment is based on the following: Double-Declining Method Office equipment Assets were held for the entire year; Residual Value = $7,000; Service life is estimated to be 4 years

i. Sales salaries of $4,800 and office salaries of $5,500 remained unpaid at 12/31/16.

j. On October 1, 2016, B&B rented a portion of one store to Paul Henreid Co. The contract was for 6 months and B&B required the 6 months of cash upfront on October 1st. The rent is being earned equally over the next 6 months. When cash was received, unearned rent was appropriately recorded. k. The note payable, due 2020, was outstanding the entire year and a 6.5% interest rate exists on the note. Interest and principal are to be paid on maturity. No interest has been recorded for the year.

l. On May 1, 2016, B&B collected $24,000 for consulting services to be performed from May 1, 2016 to February 28, 2017. The company credited the revenue account when the cash was received. m. At 12/31/2016, based on the aging method, B&B determines that uncollectible accounts are $8,250.

2. After the above adjusting entries are entered on the adjustment worksheet (TAB 2), the amounts should be linked to the adjustments column of the worksheet (TAB 1). Your adjustment amounts should be a formula so if you change the debit/credit amount on the adjustments worksheet (TAB 2), the column amount will automatically change. TAB 2 is the only worksheet that has hard coded numbers. Formulas must be implemented in the rest of the workbook when a numerical amount is needed.

3. Complete the adjusted columns by the use of the formula. Think about the best way to do this. Your last two columns should never contain constant numbers but will include formulas only. Maximum points are given for using a correct if statement. Once an if statement has been created, you must be able to drag it from the top of the column, down.

4. Prepare a multiple-step income statement on the proper worksheet. Your Income Statement should be in good form (proper titles, etc., use examples from your book) and well formatted. Do your best designating between selling and administrative expenses. You should use formulas in all cells, not constant numbers. (That means your income statement should be linked to the adjusted numbers on your worksheet.)

5. Prepare a Statement of Retained Earnings on the proper worksheet. Your Statement should be formatted. You should use formulas in all cells, not constant numbers. 6. Prepare a Classified Balance Sheet on the proper worksheet as of 12/31/16. Your Statement should be formatted. You should use formulas in all cells, not constant numbers. 7. On the designated worksheet, prepare in journal entry form the closing entries for B&B at the end of 12/31/16. You should use formulas in all cells, not constant numbers.