Financial Statement Homework #1 Name Insert Unadjusted Trial Balance HERE: Everly Company Unadjusted Trial Balance December 31, 2018 Cash 06,000 28,000 7,500 30,000 110,000 15,000 80,000 Inventory Vehicle Wages Payable Long-Term Notes Payable Common Stock Retained Eamings (1/1/2018) 46,000 8,000 17,900 12,500 50,000 46,000 47,600 5,000 Service Revenue Repair Expense Delivery Expense 465,500 12,000 45,000 2,000 48,000 10,000 43,000 14,000 3,00 35,000 Rent Expense Insurance Expense Wages Expense Interest Expense Income Tax Expense Total 693,500 693,500 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 cdlicking 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 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 2. Additional depreciation expense of $15,000 needs to be recorded for the year ended 2018 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) 4. The company has completed $12,900 of the amount in unearned revenue as of Dec. 31 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. 6. On Dec 31* the company completed a physical count of their supplies and determined that only $4,000 of supplies are still on hand Page 2 of 8 Part 2: Post the adjusting journal entries to t-accounts: Hint s 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 ot the 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 joumal 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 Uneamed Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Eamings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense nsurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total Page 4 of 8 Part 4: Based on the Adjusted Trial Balance provided in Question 2 of the Financia Statement Homework quiz on D2L, prepare in proper format the Income st the Retained Eamings Statement, and a Classified Balance Sheet Include all appropriate h all the lines in (in this order). eadings, dates, titles, subtotals and totals. (You may nos i 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: Jepson Company Adjusted Trial Balance December 31, 2018 122,000 30,000 4,000 16,000 110,000 21,000 70 Cash Accounts Receivable Su Prepaid Insurance Inventory Vehicle nt Accumulated Depreciation Accounts Payable Unearned Revenue 45,000 5,000 Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue 45,000 52,000 63,600 5,000 491,900 10,000 Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total 15,000 51,000 18,000 152,000 15,500 2,000 35,000 711,500 711,500 Page 6 of r2 for a (Company Name) Income Statement ance (Date) (Company Name) Statement of Retained Earnings (Date) Page 7 of (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 8 of 8 Page 9 of 8 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? Page 9 of 8