CHART OF ACCOUNTS: Cash Accounts Receivable Prepaid Insurance Land Equipment Accumulated Depreciation Vacation Pay Payable Interest Payable Notes Payable Common Dividends Payable Preferred Dividends Payable Bonds Payable Bond Discount Common Stock PIC in Excess of Par - Common Stock Preferred Stock PIC in Excess of Par - Preferred Stock PIC - Treasury Stock Stock Dividend Distributable Retained Earnings Treasury Stock Fees Earned Advertising Expense Commissions Expense Depreciation Expense Insurance Expense Legal & Accounting Expense Medical Insurance Expense Miscellaneous Expense Rent Expense Salary Expense Utilities Expense Vacation Pay Expense Interest Expense

Follow the directions carefully to complete IMPORTANT: You must use the Excel spreadsheet provided for documenting all answers and submitting it for credit. Do not create your own answer sheet or you will not receive any credit for the assignment. Step 2 - Journalize the transactions: Record the transactions for Sharpe Inc. in the general journal provided on the Excel spreadsheet. The journal entries are to include journal entries for transactions throughout the year, adjusting journal entries and closing entries - identify each group of transactions. You must use the journal form sheet provided for you to record the transactions. First, record the journal entries in the order of the accounting cycle, starting with the regular/daily transactions through December 31, 2020. Use only the accounts provided. Please refer to the chart of accounts in the Excel file you saved from my website for a list of accounts. Round all amount to the nearest whole dollar Step 3 - Post the transactions to the T-accounts: Post your journal entries to the T-accounts in the Excel worksheet you saved from my website. Theamounts (in bold) already in the T-accounts are the beginning balances and should be included in your account balances. You do not need to use a posting reference. Do not add any new accounts, since all the accounts you need have already been set up via chart of accounts. The account balance will update with each posting. Do not post the adjustments before preparing the trial balance, but I suggest posting the adjusting and closing journal entries, at the appropriate time. When posting the transactions to the T-accounts, start in the top cell of each T-account for both debits and credits and do not skip any lines. Step 4 - Prepare a Trial Balance: Click on the Trial Balance tab and prepare the Trial Balance. The total of the Trial Balance should be $4,481,028. If your balance does not agree, make any necessary corrections before you proceed. Step 5 - Prepare Adjusting Entries: Record the adjusting entries in the general journal after the journal entries you recorded in step \#2. Skip a line after the last entry and write "Adjusting Entries" in the middle of the account column then journalize the adjusting entries. You do not need an explanation, but skip a line between entries. All the adjusting entries should be dated December 31. Post the adjusting entries to the T-accounts in Excel. Step 6 - Prepare an Adjusted Trial Balance: Click on the Adjusted Trial Balance tab and prepare the Adjusted Trial Balance [after recording and posting the adjusting journal entries to the T-accounts. The total of the Adjusted Trial Balance should be $4,518,321. If your balance does not agree, make any necessary corrections before you proceed. Step 7 - Prepare the Income Statement: Click on the Income Statement tab in the Excel file to prepare the Income Statement using the amounts from the Adjusted Trial Balance. The Income Statement has been formatted using the outlined cells. Entries should only be made in the outlined cells. The exact number of rows needed are outlined so you should not add any rows or columns to the Income Statement. Net Income should be $$672,951. Step 8 - Prepare a Retained Earnings Statement and Balance Sheet: Prepare the Retained Earnings Statement and the Balance Sheet the same way you did the Income Statement using the amounts from the Adjusted Trial Balance. Both statements have been formatted with the exact number of rows needed. Entries should only be made in the outlined cells; do not add any rows or columns. Total Assets should be $$3,108,019. When printing your reports, please format each sheet to print on one page. Each of the following reports (except the Journal) should each be only one page. Turn in the following items (stapled in the order listed below): > Cover Sheet > Journal Entries > Trial Balance > Adjusted Trial Balance > Income Statement > Retained Earnings Statement > Balance Sheet > Post-Closing Trial Balance Step 9 - Prepare and Record Closing Entries: Prepare and record the necessary closing entries for the year ended, December 31,2020 . Identify closing entries by skipping a line after the last adjusting journal entry write "Closing Entries" in the middle of the account column then journalize the closing entries. Post the closing entries to the T-Accounts. Step 10 - Prepare a Post-Closing Trial Balance: Click on the Post-Closing Trial Balance tab in the Excel file to prepare the Post-Closing Trial Balance using the amounts from the Adjusted Trial Balance, adjusted for the closing entries. The Post-Closing Trial Balance has been formatted using the outlined cells. Entries should only be made in the outlined cells. You should not need to add any rows or columns to the Post-Closing Trial Balance. ACCT Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe, Incorporated. The Articles of Incorporation for the corporation authorized 500,000 shares of $2 par common stock, and 100,000 shares of $30 par, 4%, preferred stock. As of January 1,2020, there were 24,000 shares of common stock issued and outstanding and 5,000 shares of preferred stock issued and outstanding. Selected transactions completed by Sharpe Incorporated during the fiscal year-ending December 31, 2020, are as follows: Jan 1 Issued 12,500 shares of $2 par common stock at $22, receiving cash. Jan 1 Issued 5,800 shares of $30 par, 4%, preferred stock at $70 for cash. Feb 1 Purchased equipment for $195,000, paying $15,000 cash and financing the remainder with a 180 -day, 6% note payable. Mar 15 Purchased land for $352,000 by issuing 20,000 shares of common stock. Mar 31 Purchased a two-year insurance policy for $36,600. May 1 Purchased 1,750 shares of the company's own common stock at \$22 per share. May 31 Issued $1,000,000 of 8 -year, 7% bonds with interest payable semiannually. The amount of cash received was $926,896. July 30 Paid the amount due on the note payable signed on February 1. Aug 1 Sold 430 shares of treasury common stock purchased on May 1 for $25 per share. Sept 15 Declared a 2% stock dividend on common stock to be distributed on September 30 to stockholders of record on September 20. The market price per share on September 15 is $25 per share. Sept 30 Distributed the stock dividend declared September 15. Oct 1 Borrowed $40,000 from Second Bank by issuing an 7% note. The note is to be repaid in quarterly payments of principal plus interest totaling $1,860 per quarter. Oct 16 Sold 370 shares of treasury common stock purchased on May 1 for $18 per share. Nov 30 Paid the semiannual interest and amortized the discount on the bonds issued on May 31. Dec 1 Declared a cash dividend at the stated amount to preferred stockholders and .40 per share to common stockholders payable on December 30 to stockholder's of record on December 16. (Hint: don't forget the shares distributed from the stock dividend) Dec 30 Paid the cash dividends declared on December 1. Dec 31 Paid the first quarterly installment of the note issued on October 1. Dec 31 Record revenue for the year of $1,975,000, received $500,000 in cash, the remainder is on account. Dec 31 Record expenses for the year, paid in cash (one compound entry): Adjusting Entries (At December 31, 2020) (1) The employees' accrued vacation pay at the end of the year was $11,880. (2) Record depreciation on the equipment purchased on February 1, using the straight-line method. The equipment has an estimated 9-year useful life and an estimated residual value of $2,760. (3) Record insurance expired on the policy purchased March 31. (4) Record the adjusting entry for the interest accrued and the amortization of the premium on the bonds payable since the last interest payment. (Round the amount to the nearest dollar)