Do not round, but use excel to display everything rounded to the nearest whole number. Assume a 30% Tax Rate.

Required: Using Excel, prepare: 1. General journal entries to record the summary transactions and adjusting journal entries. 2. The year-end worksheet, using cell reference links to post the general journal entries and formulas to extend the worksheet. Just put the summarized transactions and the adjusting entries all into the adjustment columns on the worksheet. 3. Financial statements, including a Multi-step Income Statement, a Retained Earnings Statement, and a classified Balance Sheet. Again, use cell reference links and formulas where possible. 4. Submit your Excel spreadsheet(s), for the journal entries, worksheet, and financial statements.

Summarized transactions for 2017:

a. 1. Sold merchandise on credit, $643,588. MSU Candy uses a periodic inventory system. 2. Collected 90% of these current credit sales. 3. Collected 95% of beginning accounts receivable. 4. Wrote off the remaining 5% of beginning accounts receivable.

b. 1. Purchased merchandise on credit, $358,070. MSU Candy uses a periodic inventory system. 2. Paid 85% of these purchases. 3. Paid all of beginning accounts payable.

c. On April 1, 2017, paid $2,430 for a renewal of the insurance policy which will provide coverage for the period 4/1/17 to 4/1/18.

d. Supplies purchased for cash during the year $25,807.

e. On July 1, 2017, received cash consisting of a $3,000 payment of principal on the note receivable plus interest for six months @8.43%.

f. On January 1, 2017, equipment costing $10,000 (with related accumulated depreciation of $3,600) was exchanged for different equipment having a FMV of $7,588. No cash was exchanged and the exchange had commercial substance.

g. Paid $65,880 for salaries and $10,430 for payroll taxes. Both of these amounts include the beginning liabilities for each, respectively.

h. 74.3% of the beginning Unearned Revenue was earned by year-end.

i. Dividends declared in 2016 were paid in January, 2017. Dividends of $6,588 were declared in December, 2017 and will be paid in January, 2018.

Year-end adjusting entries:

aa. MSU Candy estimates that 5% of ending accounts receivable will become uncollectible.

bb. MSU Candys inventory count at 12/31/17 shows $55,880 of merchandise inventory remaining. Make an adjusting journal entry (AJE) to close purchases, adjust Merchandise Inventory to ending balance, and create a Cost of Goods Sold account.

cc. Adjust Prepaid Insurance to reflect insurance expired during the year.

dd. Supplies on hand at year-end totaled $5,588.

ee. Interest on the remaining note receivable was supposed to be received at 12/31/17; however, it did not arrive. Make an AJE to record interest receivable and interest income for second half of the year.

ff. Make adjusting entries to record depreciation expense on the building and equipment. MSU Candy uses SL, 20% SV, 40-year life for the building and DDB, No SV, 10-year life on the equipment.

gg. Unpaid salaries and payroll taxes at year-end were $15,807 and $3,588 respectively.

hh. A bank reconciliation prepared at 12/31/17 showed $10,000 deposits in transit, $7,000 outstanding checks, $643 bank service charges, and $1,588 interest earned.

Optional entries:

ii. 30% tax rate (This exp/payable could just be calculated on IS and BS, but you can journalize it after all other work is done. )

Net Income: $104,858

Ending Retained Earnings: $236,970

Total Assets: $582,374

Here is the post-closing Trial Balance given. I just have no idea where to start on this.. Help is appreciated. Thank you!

Candy Company, Inc. Work Sheet for the Year Ended 12/31/17 2016 PC Trial Balance Adjustments Adjusted Trial Ba. Income Statement Balance Sheet 3 Accounts 4 5 Cash 6 Accts/Rec 7 Allow. for D. Accts. 8 Notes Rec. 9 Merch Inv 10 Prep. Insurance 11 Supplies 12 Land 13 Building 14 AccumDepr-Bldg 15 Equipment 16 AccumDepr-Equip 17 Accts/Pay 18 Salaries Pay 19 Payroll Taxes Pay 20 Unearned Revenue 21 Dividends Pay 22 Com Stk-$10 Par 23 APIC-c/s 24 Retained Earnings 25 Totals Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit 10,000 28,000 2,000 6,000 60,000 8,000 40,000 200,000 16,000 80,000 28,800 13,000 5,000 2,000 3,000 4,000 200,000 20,000 138,700 432,500 432,500