Financial Statement Homework #1 Name Insert Unadjusted Trial Balance HERE: Kristen Company Unadjusted Trial Balance December 31, 2018 Cash 125,000! 30,000 12,000 36,000 100,000 14,000 64,000 Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense 35,000 9,000 18,600 12,500 46,000 35,000 65,700 4,000 586,000 1,800 50,000 6,000 64,000 10,000 190,000 50,000 6,000 45,000 Supplies Expense Interest Expense Income Tax Expense Total 807,800 807,800 Page 1 of 8 Part 1: Prepare adjusting journal entries using the unadjusted trial balance provided to you in Question 1 of the Financial Statement Homework quiz on D2L and the information provided below. The Unadjusted Trial Balance can be downloaded from the D2L quiz by right clicking on the image and saving it to your computer. When preparing the adjusting journal entries, use only the account names provided in the Unadjusted Trial Balance (do not create any new account names and do not abbreviate account names) 1. The prepaid insurance balance reflects a 12-month insurance policy which started on Sept. 1, 2018, and no adjustments were made from Sept. 1 - Dec 31, 2018. Write the adjusting journal entry for Dec. 31, 2018 n Serence exrense 2,0o0 2,ood 2. Additional depreciation expense of $15,000 needs to be recorded for the year ended 2018 Deprecintin Expense Soos AcMulatea Depreciation 3. Wages due to employees of $8,000 need to be recorded at year end. These wages will be paid to employees on January 9, 2019. (next month) Woses Expense 4. The company has completed $12,900 of the amount in unearned revenue as of Dec. 31st Un eoined Rnl even 12,9 ervice Revenue 2,900 5. In Dec. the company provided services worth $8,000 to clients that were not yet billed or recorded by Dec. 31. Record the additional revenue. Service Revenwe 6. On Dec 31st the company completed a physical count of their supplies and determined that only $4,000 of supplies are still on hand. Suppies exrtase Supplies Page 2 of 8 Part 2: Post the adjusting journal entries to t-accounts (Hints on getting started: Above each T-account, write the account name of each account affected by an adjusting journal entry (you may not need to use all of the T accounts). Write in the unadjusted balance for each of these accounts from the Unadjusted Trial Balance provided in question 1 of your D2L quiz (the unadjusted balance might be a debit, a credit, or zero balance). Now you are ready to post your adjusting journal entries from Part 1 to the corresponding T-accounts and calculate adjusted balances Page 3 of 8 Part 3: Prepare the Adjusted Trial Balance (i.e., after the previous 6 journal entries are posted) (Company Name) (Date) Adjusted Trial Balance Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total Part 4: Based on the Adjusted Trial Balance provided in Question 2 of the Financial Statement Homework quiz on D2L, prepare in proper format the Income Statement, the Retained Earnings Statement, and a Classified Balance Sheet (in this order). Include all appropriate headings, dates, titles, subtotals and totals. (You may not use all the lines provided in the statement formats below). The Adjusted Trial Balance can be downloaded from the D2L quiz by right clicking on the image and saving it to your computer. DO NOT USE THE ADJUSTED TRIAL BALANCE CREATED IN PART 3 Insert Adjusted Trial Balance Image HERE Jax Company Adjusted Trial Balance December 31, 2018 Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue 119,500 23,000 11,000 28,000 107,500 20,000 74,000 35,000 7,500 14,400 6,000 55,000 40,000 52,100 Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total 5,000 482,500 12,000 38,000 16,000 50,000 12,000 131,000 12,000 3,500 30,000 692,500 692,500 (Company Name) Income Statement (Date (Company Name) Statement of Retained Earnings (Date) (Be sure to include all the necessary subtotals and totals as outlined in Chapter 2 for a Classified Balance Sheet. 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 Balance Sheet, use the right column for subtotals and totals.) (Company Name) Balance Sheet (Date) Page 7 of8 Part 5: Answer the following questions using the above completed financial statements: What is the dollar amount for Net Income or Net Loss? What is the dollar amount for Ending Retained Earning? What is the dollar amount for Total Current Assets? What is the dollar amount for Total Current Liabilities? What is the dollar amount for Total Stockholders Equity? What is the dollar amount for Total Assets