Directions 1 Use this Excel template file (see tabs) to complete the required accounting activities and rename it to begin with your last name (i.e. Doe_Jane ACC 120 Midterm). Note: The Unadjusted Trial Balance and the Adjusted Trial Balance have been completed for you. 2 Journalize the routine transactions described on the Journal Tab. You do not need to complete the PR section for this assignment. Use the Account Names shown on the ATB 3 Use the Unadjusted Trial Balance and adjusting information provided (See Journal tab) to journalize the 7 adjusting entries (a-g.) 4 Use the Adjusted Trial Balance provided to prepare an Income Statement (Multi-Step) appropriate to a merchandising business, a Statement of Owner's Equity, and a report form Balance Sheet. These should be completed on the Financial Statements tab. Notes/Tips: There were no investments by owner during the reporting period. This company prepares an Adjusted Trial Balance and Financial Statements at the end of each month. All adjustments are for the last 30 days. (Effective date Dec 31) Print the Adjusted Trial Balance to help complete the Financial Statements. Print the Unadjusted Trial Balance to help complete the Journal General Journal ABC Company Page 1 Note: There is no correlation between the placement of the financial transactions listed below and their placement in the journal Date Description P.R. Debit Credit During the last month of the year, the following transactions were completed: : Dec 1 Paid rent for December, $7,500. Dec 3 Purchased merchandise from Goat Company for $10,000 under terms 1/15, n/30, FOB Shipping Point Dec 4 Paid $500 cash for freight charges on purchase of Dec 3. Dec 5 Sold merchandise to Beaver company for $22,000 under credit terms 2/10, n/60, FOB Shipping Point. The merchandise had a cost of $5,000. Dec 6 Purchased merchandise from Duck Company for $25,000, under terms n/eom (net/ net end of month). Dec 8 Received $22,400 on account from Warthog Company, no discount. This sale was made in November. Dec 9 After negotiations with Goat Company concerning problems with the merchandise purchased on Dec 3, ABC Company received a credit credit memorandum from Goat Company granting an allowance of $3,000 Dec 10 Paid part-time sales clerk $3,000 which included $2,000 of Sale Salaries Payable on December 1st. (Hint: This entry will require three lines.) : ) Dec 11 Sold merchandise on account to Cow company, terms 2/10, 1/60, FOB destination, $20,000. The merchandise had a cost of $11,000. Dec 12 Paid $750 cash for shipping charges related to the Dec 11 sale to Cow Company. Dec 13 Paid the amount due to Goat Company for the Dec 3 purchase less the allowance granted on Dec 9. Dec 15 Received balance due from Beaver Company for merchandise sold on Dec 5. Dec 16 Cow company returned merchandise from the Dec 11 sale that had cost ABC Company $1,500 and been sold for $6,000. The merchandise was restored to inventory Dec 21 Received amount due from Cow company for the Dec 11 sale less the sale return on Dec 16. Dec 23 Paid advertising expense for ads running the last week of December, $1,750. Dec 24 Paid part-time sales clerk for two weeks' salary: $3,000. Dec 27 Purchased office supplies on account, $900. Dec 31 Paid Duck Company amount due from the Dec 6 purchase. At the end of December, the following adjustment data were assembled. a After a physical count of inventory, it was determined that $127,200 of inventory exists at December 31. b 1% of sales is expected to be refunded. Estimated Cost of Merchandise that will be returned in the next year is $7,500 d Insurance Expired during the year, $2,800. e Office supplies on hand at Dec 31, $1,250. f Depreciation for December is $1,100. g Sales clerk earned $1,500 of unpaid and unrecorded salary as of Dec 31. ABC Company Unadjusted Trial Balance December 31, 20xx Debit Credit 58,050 1,000 30,000 52,430 128,750 500 8,740 2,150 60,150 22,950 65,000 0 3,120 193,870 Cash Petty Cash Notes Receivable Accounts Receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Office Supplies Delivery Equipment Accumulated Depreciation-Delivery Equipment Accounts Payable Salaries Payable Customer Refunds Payable R.W. Miller, Capital R.W. Miller, Drawing Sales Interest Revenue Cost of Merchandise Sold Sales Salaries Expense Rent Expense Delivery Expense Deprecation Expense-Delivery Equipment Advertising Expense Miscellaneous Selling Expense Office Salaries Expense Insurance Expense Office Supplies Expense Miscellaneous Administrative Expense Interest Expense 30,000 1,057,860 1,650 659,070 92,330 62,500 39,510 7,630 13,780 5,090 52,300 15,280 8,700 14,490 2,000 1,344,450 Total 1,344,450 Credit 24,050 65,000 1,500 13,699 193,870 ABC Company Adjusted Trial Balance December 31, 20xx Debit Cash 58,050 Petty Cash 1,000 Notes Receivable 30,000 Accounts Receivable 52,430 Merchandise Inventory 127,200 Estimated Returns Inventory 8,000 Prepaid Insurance 5,940 Office Supplies 1,250 Delivery Equipment 60,150 Accumulated Depreciation-Delivery Equipment Accounts Payable Salaries Payable Customer Refunds Payable R.W. Miller, Capital R.W. Miller, Drawing 30,000 Sales Interest Revenue Cost of Merchandise Sold 653,120 Sales Salaries Expense 93,830 Rent Expense 62,500 Delivery Expense 39,510 Deprecation Expense-Delivery Equipment 8,730 Advertising Expense 13,780 Miscellaneous Selling Expense 5,090 # Office Salaries Expense 52,300 # Insurance Expense 18,080 # Office Supplies Expense 9,600 # Miscellaneous Administrative Expense 14,490 Interest Expense 2,000 Total 1,347,050 * ABC Company considers these items "Selling Expenses." #ABC Company considers these items "Administrative Expenses." 1,047,281 1,650 * * 1,347,050 Note: See Chapter 6 (Exhibits 11,12,14) for proper formatting of Financial Statements DO NOT MODIFY FORMATTING (Multi-Step Income Statement and Report Form Balance Sheet) ABC Company Income Statement ABC Company Balance Sheet Tips: : Assets Liabiles Owner's Equity Assets All Account balances will be reflected on the Financial Statements Ensure you reported the correct balances from the Adjusted Trial Balance Ad Financial Statements require a date. ABC Company Statement of Owner's Equity