Bookkeeping Module Rubric If any parts of this module are not complete, you cannot pass this module. You must complete all parts of this module. Note: Lack of Excel use will results in deductions. You must show reasonable use of Excel functions in order to pass this module. LOAN AMORTIZATION SCHEDULE LOAN AMORTIZATION SCHEDULE 1. Prepare the Journal Entries for 2022 : MKG Solutions Inc. retrofits and sells farm equipment and sorting systems for businesses in Holland Marsh, Ontario. The company offers a 60-day, all equipment and labour warranty - and an extra 90-day, parts-only warranty - on all of its products. Information on the monthly payroll is included below. Waranty expenses are accrued at 2% of sales for each month on the last day of each month unless otherwise stated. Cost of goods sold are always 43% of the net sales. Adjust each time there is a sale through Finished Goods. The company has an outstanding loan that it makes payments on each month. The loan schedule is included in this Excel file. Record appropriate expenses to the prepaid accounts. Add HST to each sale. The company had the following transactions in 2022 : Jan 2 Purchased $15,400 insurance policy for the 2022 year. Jan 7 Remitted the appropriate HST for the month of December to the Receiver General. Jan 15 Purchased $78,000 of raw materials for parts on account, plus HST, terms n30. Jan 15 Record the loan payment. Use the information from the loan schedule. Jan 15 Remit the payroll deductions to the Receiver General for the last quarter. Jan 20 Paid for the following fixed costs with cash: Advertising $2,300, Utilities $1,285, Telephone $236 (all are before HST - you need to add HST to these amounts) Jan 23 Paid the balance of accounts payable from December. Jan 31 Sales for the month totalled $350,000 (not including HST), of which 95% were on credit. The company collects 13% HST on all sales and Collected all of A/R from last month. Jan 31 The company received a deposit of $60,000 on a special order to be fulfilled in February. Jan 31 Pay the monthly payroll for January. Feb 4 Completed repair work for a customer under warranty at a cost of $4,400. Ignore HST. Feb 7 Remitted the appropriate HST for the month of January to the Receiver General. Feb 8 Ordered and paid for $1,500 in supplies (no HST). Feb 10 Purchased $83,000 of raw materials for parts on account, plus HST, terms n30. Feb 13 Paid the balance of accounts payable from January. Feb 15 Record the loan payment. Use the information from the loan schedule. Feb 21 Paid for the following fixed costs with cash: Advertising \$2,500, Utilities \$1,285, Telephone \$236 (all are before HST - add HST to each expense) Feb 26 Fulfilled special order for $60,000 received last month. Total cost amounted to $78,000+HST. The customer will pay the balance next month. The cost of goods sold was 48% of sales for this sale. Feb 28 Sales for the month totalled $325,000 not including HST or the special order. 90% of these sales were on credit. The company estimates its warranty costs at 2% of sales including special order. Collected A/R from January. Feb 28 Pay the monthly payroll for February. Mar 7 Remitted the appropriate HST for the month of February. Mar 15 Record the loan payment. Use the information from the loan schedule. Mar 21 Completed repair work for a customer. The total cost of $4,780 plus HST was not covered by warranty and was billed to the customer. Payment is due in 30 days. Mar 21 Paid for the following fixed costs with cash: Advertising $2,500, Utilities $1,285, Telephone $236 (all are before HST - add HST to each expense) Mar 31 Sales for the month totalled $315,000 not including HST, of which 80% were on credit. The company estimates its warranty costs will increase to 4% of sales. Collected A/R from February. Mar 31 Declared and paid dividend paid to owner in the amount of $12,000. Mar 31 On March 31, the company purchased a machine costing $120,000. The machine will have a useful life of 5 years and residual value of $8,000 and will be depreciated using straight-line method. Mar 31 Collected the A/R from February. Prepare journal entries to record the transactions in the General Journal below. You must provide a short description for each journal entry. If you don't want to use T-accounts because it is too cumbersome, you can choose a different methnd tn calrulate the ending halanres \begin{tabular}{l|l|l} 31 & & \\ 32 & & \\ 33 & & \\ 34 & & \\ 35 & & \\ 36 & & \\ 37 & & \\ 38 & & \\ \hline \end{tabular} Inventory - FG \begin{tabular}{l|l|l} \hline & A & B \\ \hline 64 & & \\ 65 & & \\ 66 & & \\ 67 & & \\ 68 & & \\ 69 & Accounts payable \\ \hline 70 & & \end{tabular} El Payable 79 80 81 82 83 84 85 86 87 88 89 90 Unearned revenue Warranty liability Utilities expense Salaries and Wages Telephone expense Supplies expense Warranty expense Depreciation 111 112 114 \begin{tabular}{c|c|c|} \hline & A & B \\ \hline 1 & 4. Prepare the Adjusting Entries \end{tabular} You will need to review the Journal Entries and Trial Balance and prepare the necessary adjusting entries. Please provide a brief explanation of each journal entry. Adjust to the nearest month. All entries should be made as of March 31,2022. PASTE ADJE here General Journal MKG Solutions Inc. 7. Prepare the month-end Financial Statements in good format. 1) Balance Sheet 2) Income Statement (in alphabetical order) 3) Statement of Retained Earnings Bookkeeping Module Rubric If any parts of this module are not complete, you cannot pass this module. You must complete all parts of this module. Note: Lack of Excel use will results in deductions. You must show reasonable use of Excel functions in order to pass this module. LOAN AMORTIZATION SCHEDULE LOAN AMORTIZATION SCHEDULE 1. Prepare the Journal Entries for 2022 : MKG Solutions Inc. retrofits and sells farm equipment and sorting systems for businesses in Holland Marsh, Ontario. The company offers a 60-day, all equipment and labour warranty - and an extra 90-day, parts-only warranty - on all of its products. Information on the monthly payroll is included below. Waranty expenses are accrued at 2% of sales for each month on the last day of each month unless otherwise stated. Cost of goods sold are always 43% of the net sales. Adjust each time there is a sale through Finished Goods. The company has an outstanding loan that it makes payments on each month. The loan schedule is included in this Excel file. Record appropriate expenses to the prepaid accounts. Add HST to each sale. The company had the following transactions in 2022 : Jan 2 Purchased $15,400 insurance policy for the 2022 year. Jan 7 Remitted the appropriate HST for the month of December to the Receiver General. Jan 15 Purchased $78,000 of raw materials for parts on account, plus HST, terms n30. Jan 15 Record the loan payment. Use the information from the loan schedule. Jan 15 Remit the payroll deductions to the Receiver General for the last quarter. Jan 20 Paid for the following fixed costs with cash: Advertising $2,300, Utilities $1,285, Telephone $236 (all are before HST - you need to add HST to these amounts) Jan 23 Paid the balance of accounts payable from December. Jan 31 Sales for the month totalled $350,000 (not including HST), of which 95% were on credit. The company collects 13% HST on all sales and Collected all of A/R from last month. Jan 31 The company received a deposit of $60,000 on a special order to be fulfilled in February. Jan 31 Pay the monthly payroll for January. Feb 4 Completed repair work for a customer under warranty at a cost of $4,400. Ignore HST. Feb 7 Remitted the appropriate HST for the month of January to the Receiver General. Feb 8 Ordered and paid for $1,500 in supplies (no HST). Feb 10 Purchased $83,000 of raw materials for parts on account, plus HST, terms n30. Feb 13 Paid the balance of accounts payable from January. Feb 15 Record the loan payment. Use the information from the loan schedule. Feb 21 Paid for the following fixed costs with cash: Advertising \$2,500, Utilities \$1,285, Telephone \$236 (all are before HST - add HST to each expense) Feb 26 Fulfilled special order for $60,000 received last month. Total cost amounted to $78,000+HST. The customer will pay the balance next month. The cost of goods sold was 48% of sales for this sale. Feb 28 Sales for the month totalled $325,000 not including HST or the special order. 90% of these sales were on credit. The company estimates its warranty costs at 2% of sales including special order. Collected A/R from January. Feb 28 Pay the monthly payroll for February. Mar 7 Remitted the appropriate HST for the month of February. Mar 15 Record the loan payment. Use the information from the loan schedule. Mar 21 Completed repair work for a customer. The total cost of $4,780 plus HST was not covered by warranty and was billed to the customer. Payment is due in 30 days. Mar 21 Paid for the following fixed costs with cash: Advertising $2,500, Utilities $1,285, Telephone $236 (all are before HST - add HST to each expense) Mar 31 Sales for the month totalled $315,000 not including HST, of which 80% were on credit. The company estimates its warranty costs will increase to 4% of sales. Collected A/R from February. Mar 31 Declared and paid dividend paid to owner in the amount of $12,000. Mar 31 On March 31, the company purchased a machine costing $120,000. The machine will have a useful life of 5 years and residual value of $8,000 and will be depreciated using straight-line method. Mar 31 Collected the A/R from February. Prepare journal entries to record the transactions in the General Journal below. You must provide a short description for each journal entry. If you don't want to use T-accounts because it is too cumbersome, you can choose a different methnd tn calrulate the ending halanres \begin{tabular}{l|l|l} 31 & & \\ 32 & & \\ 33 & & \\ 34 & & \\ 35 & & \\ 36 & & \\ 37 & & \\ 38 & & \\ \hline \end{tabular} Inventory - FG \begin{tabular}{l|l|l} \hline & A & B \\ \hline 64 & & \\ 65 & & \\ 66 & & \\ 67 & & \\ 68 & & \\ 69 & Accounts payable \\ \hline 70 & & \end{tabular} El Payable 79 80 81 82 83 84 85 86 87 88 89 90 Unearned revenue Warranty liability Utilities expense Salaries and Wages Telephone expense Supplies expense Warranty expense Depreciation 111 112 114 \begin{tabular}{c|c|c|} \hline & A & B \\ \hline 1 & 4. Prepare the Adjusting Entries \end{tabular} You will need to review the Journal Entries and Trial Balance and prepare the necessary adjusting entries. Please provide a brief explanation of each journal entry. Adjust to the nearest month. All entries should be made as of March 31,2022. PASTE ADJE here General Journal MKG Solutions Inc. 7. Prepare the month-end Financial Statements in good format. 1) Balance Sheet 2) Income Statement (in alphabetical order) 3) Statement of Retained Earnings