Financial Statement Homework #2 Name___________________

Upload a copy of ALL PAGES of the Financial Statement HW to the D2L dropbox. You must handwrite (not type) the assignment. Insert image of your assigned unadjusted Trial Balance HERE:

Part 1a: Prepare adjusting journal entriesusing the unadjusted trial balance on the previous page and the information provided below. Use only the account names provided on the previous page (do not create any new account names).

1. On Dec. 31, 2017 merchandise was sold on account for $16,500 with a cost of $5,500 terms 3/10 net 30.

2. The company issued a 6 month, 12% interest note short-term note for the amount listed on the unadjusted trial balance on Oct. 1, 2017. All interest and principal will be paid back at the end of the 6 months. Write the adjusting journal entry required for its financial statements as of Dec. 31, 2017.

3. Uncollectable Accounts Receivables of $1,600 need to be written off for the year ended 2017.

4. Management estimates that of the remaining accounts receivable balance, $2,000 will be uncollectible. Record the adjustment based on this information. Hint: Use the AFDA balance AFTER the above write off during 2017. Use an AFDA T-account!

5. A piece of equipment was retired on Dec. 31, 2017. The equipment originally cost $34,000 and has related A/D of $24,000 as of Jan. 1, 2017. Additional depreciation of $3,000 needs to be recorded on this piece of equipment at Dec. 31, 2017. Update the depreciation below (#5). Then record the retirement (#6).

6. Record the retirement of the equipment (from #5) including the gain or loss.

Part 1b: Post the adjusting journal entries to t-accounts:

(Specific instructions: Above each T-account, write the account name of each account affected by a journal entry. Write in the unadjusted balance for each of these accounts (from page 1)the unadjusted balance might be a debit, a credit, or zero balance. Now you are ready to post your journal entries from page 2 onto the corresponding T-accounts and then calculate adjusted balances.)

Part 1c: Prepare the AdjustedTrial Balance (i.e., use ending balances after the previous journal entries are posted)

December 31, 2017

Adjusted Trial balance

Debit Credit

Cash
Accounts Receivable
Allowance for Doubtful Accounts
Short Term Note Receivable
Interest Receivable
Supplies
Prepaid Insurance
Inventory
Vehicle
Equipment
Accumulated Depreciation
Accounts Payable
Unearned Revenue
Wages Payable
Long-Term Notes Payable
Common Stock
Retained Earnings (1/1/2017)
Dividends
Sales
Sales Returns & Allowances
Sales Discounts
Cost of Goods Sold
Delivery Expense
Depreciation Expense
Bad Debt Expense
Rent Expense
Insurance Expense
Wages Expense
Supplies Expense
Interest Revenue
Loss on Disposal
Interest Expense
Income Tax Expense
Total

Insert image of your assigned Adjusted Trial Balance HERE:

Part 2a: Prepare a Multi-stepIncome Statement

(Be sure to include all the necessary headings, totals and subtotals as outlined in Chapter 5. 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 Income Statement, use the right column for subtotals and totals.)

__________, Inc.

Income Statement

Year Ended Dec. 31, 2017

Part 2b: Prepare a Statement of Retained Earnings.

__________, Inc.

Statement of Retained Earnings

Year Ended Dec. 31, 2017

Part 2c: Prepare a ClassifiedBalance Sheet (Be sure to include all the necessary subtotals and totals as outlined in Chapter 2. You may not need to use all of 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.)

__________, Inc.

Balance Sheet

As of Dec. 31, 2017

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Bertha, Indc December 31, 2017 Unadjusted Trial balance 47,000 36,000 Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Interest Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense nsurance Expense Wages Expense Supplies Expense Interest Revenue Loss on Disposal Interest Expense Income Tax Expense Total 1,000 45,000 0 5,000 48,000 12,000 16,000 75,000 42,000 12,000 14,000 2,000 45,000 106,000 2,500 2,000 515,000 7,000 3,000 46,000 5,000 16,000 0 98,000 25,000 195,000 16,000 0 0 6,500 36,000 739,500 739,500