Can you do $6?
Sparty Corporation has been operating for two years. The December 31, 2020, account balances are: Cash Accounts Receivable Inventory Supplies Equipment Land $230,000 100,000 40,000 25,000 180,000 205,000 Accounts Payable Salaries Payable Notes Payable Contributed Capital Retained Earnings $160,000 60,000 190,000 210,000 160,000 During the year 2021, the company had the below activities. Note that none of these activities should impact the income statement, only the balance sheet; we are assuming for simplicity company had no revenues or expenses during 2021. ccordingly, we are ignoring any interest associated with the Notes Payable. a. Collected $15,000 cash on open accounts receivable from customers. b. Received a $100,000 loan from the bank, payable in four years. C. Bought additional inventory for $6,000 on account. d. Ordered $10,000 of inventory from a supplier to be delivered next month. e. Received $3,000 of supplies that were ordered last month but will not pay the invoice until the end of the year. f. Paid off $40,000 of notes payable. g. Purchased additional equipment costing $20,000; paying $5,000 in cash and signing a promissory note (i.e., a note payable) to pay the balance in two years. h. Issued additional shares of stock, receiving $50,000 in cash from investors. i. Purchased $40,000 of land with cash. j. Paid off $30,000 of salaries owed from the prior year. 2. On a new worksheet titled Question #2, prepare journal entries for each event that is an accounting transaction. For example, for the following event, the journal entry will be as follows: I. Purchased additional buildings for $125,000 by signing a long-term note Credit Event I. Accounts Building (+A) Notes Payable (+L) Debit 125,000 125,000 Note: Do not include this example in your solution. This is for illustrative purposes. Also, recall that your total debits must equal your total credits for all journal entries. 3. On a new worksheet titled Questions #3 and #4, create T-accounts for each account, bringing in the beginning balances from the table you copied and pasted into Excel for #1 abo Be sure you have the balances on the correct side (i.e., debit versus credit) of the account. Note that you should have only one T-account for each account. (For example, you should have one T-account for Cash where all journal entries to the cash account are included). 4. Post the effects of the transactions for 2021 to the T-accounts created in #3. Use the power of Excel to carry over the amounts from your journal entries. For example, in the illustration in #2 above, when you post the $125,000 debit to the Building T- account, you would refer to the cell in the journal entry that contains the 125,000 debit to building on the worksheet titled Question #2. 5. On a new worksheet titled Question #5, prepare a trial balance. Use the power of Excel to refer to cells in your T-accounts to bring over the balances from your T- accounts to the trial balance. Use the Sum function to add up your debit and credit columns to ensure they are equal. 6. On a new worksheet titled Question #6, prepare a balance sheet for the 2021 year- end balances. Use the power of Excel to bring over the appropriate amounts from the trial balance to your balance sheet. Use the Sum function to calculate your totals. Your balance sheet should balance
