C Dr 162,000 124,000 1,000 50,000 55,000 62,000 75,000 0 32,000 94,000 12,000 0 0 14,000 15,000 Apple Mountain Company Trial Balance 11/30/17 Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Supplies Inventory Equipment Building Accumulated Depreciation Copyright Accounts Payable Dividends Payable Interest Payable Unearned Revenue ST Note Payable LT Mortgage Payable Bonds Payable Premium on Bonds Payable Common Stock - $1.50 par Paid In Capital In Excess of Par-CS Preferred Stock - $5 par Paid In Capital In Excess of Par-PS Treasury Stock Retained Earnings Dividends Sales Revenue Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad Debts Expense Depreciation Expense Wages Expense Rent Expense Insurance Expense Supplies Expense Interest Revenue Interest Expense Gain on Sale of Equipment Income Tax Expense Total 200,000 26,840 105,000 86,000 1,000 50,000 0 3,500 2,000 490,160 7,000 3,000 46,000 5,000 16,000 160,000 98,000 25,000 16,000 1,000 6,500 15,000 46,000 1,052.500 1,052,500 ACCEPTED ON PLAIN PAPER. son Instructions: You must turn in the work performed on the sheets printed with this page. This WILL NOT BE Write the journal entries on the following General Journal page) required for each of the events described below. Write the entries in the order described below (#1 - #8). Use ONLY the accounts listed on the trial balance for your journal entries. post the transactions to individual T-accounts and prepare an adjusted trial balance for your assigned company from page one as of December 31, 2017 . . 1. The company purchased a building December 1, 2017 with a LT Mortgage Payable of $300,000 at 8% interest. (Record the purchase of the building.) 2. The company issued 1,000 shares of Common Stock for $6,000 on December 25, 2017. 3. On December 29, 2017 the company declared a cash dividend of $3.00 per share for common stock on the shares issued and declared (including the additional 1,000 shares issued on December 25") 4. The terms of the LT mortgage payable from #1 above require the company to make monthly installment payments over the term of the loan. Each payment consists of interest on the unpaid balance of the loan and a reduction of loan principal. Record the first monthly payment of $3,800 on the LT Mortgage Payable on December 31, 2017. 5. The company last paid interest on the ST note payable on November 1, 2017. Record the accrued interest expense for the last 2 months of 2017. The annual interest rate is 8%. Round to nearest whole dollar 6. The Bonds Payable and related Premium amounts on the Nov.trial balance relate to the Jan. 1, 2017 issuance of the following bonds: On Jan 1, 2017, the company issued 10%, 10-year bonds when the market rate for similar investments was 8%. The company pays interest each year on January 15. On Dec 31, 2017, use the effective interest method of amortizing the premium on bonds payable to accrue the interest expense for 2017. Round your interest expense calculation to the nearest whole dollar. . The Unearned Revenue amount on the Nov. trial balance relates to amounts that the company previously collected in cash for sales that were to be completed in the future. The company completed some of these sales during December and now owes only $10,000 of that unearned revenue. Record the necessary adjustment for December 31, 2017 On December 31, 2017, the company purchased 50 shares of its own Preferred Stock for Treasury Stock for $11 per share GENERAL JOURNAL DEBIT CREDIT DATE ACCOUNT NAME Use the space below for T-accounts (REQUIRED). (Specific instructions: Prepare T-accounts for each account affected by a journal entry. Write in the unadjusted balance for each of these accounts (from page 1)..the unadjusted balance might be a debit, a credit, or zero balance. Now you are ready to post your journal entries from page 3 onto the corresponding T-accounts and then calculate adjusted balances.) ADJUSTED TRIAL BALANCE 12/31/17 Dr Supplemental Questions 1. What will be the balance in the Mortgage Payable Account at Jan. 31, 2018 after the second monthly payment is made? 2. The Company is about to issue $2,000,000 of 5-year, 12% bonds. Interest will be paid semi- annually. The market interest rate for such securities is 10%. How much can The Company expect to receive from the sale (issuance) of these bonds? Part 2: NOTE: This is a DIFFERENT COMPANY. Using the trial balance below, complete the Multi-Step Income Statement and prepare the Statement of Retained Earnings and Classified Balance Sheet on the pages which follow. To get full credit you must include all critical subtotals. Part 2: Insert Second Trial Balance HERE. Quagmire Company Adjusted Trial Balance December 31, 2017 DEBIT CREDIT Cash 3.900 Accounts Receivable 3,460 Allowance for Doubtful Accounts 670 Short term Note Receivable 800 Interest Receivable 120 Supplies 130 Inventory 2.500 Prepaid Expenses 350 Equipment 12.720 Accumulated Depreciation 2.970 Copyrights 1000 Accounts Payable 670 Interest Payable 20 Unearned Revenue 50 Long Term Note Payable 1,400 Common Stock 3,600 Paid-in-Capital In Excess of Par-CS 800 Retained Earnings (1/1/15) 2,160 Dividends 600 Sales 49,100 Sales Returns & Allowances 40 Sales Discounts 60 Cost of Goods Sold 24,600 Bad debt expense 30 Depreciation Expense 770 Amortization Expense 70 Wages Expense Rent Expense 8,000 500 Office Expense 80 Supplies Expense 100 Selling Expense 800 Interest Expense Interest Revenue 200 Income Tax Expense 150 Totals 760 61.590 61.590 Multi Step Income Statement For the year ended December 31, 2017 (Be sure to include all the necessary headings, totals and subtotals as outlined in Chapter 5. You may not need to use all the lines provided. Note: The two columns 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.) Statement of Retained Earnings For the year ended December 31, 2017 Classified Balance Sheet December 31, 2017 (Be sure to include all the necessary subtotals and totals as outlined in Chapter 2. You may not need to use all of the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Balance Sheet, use the right column for subtotals and totals.)