Financial Statement Homework #3 Name_ YOU MUST SUBMIT ALL PAGES OF THIS DOCUMENT Part 1: Insert the Trial Balance HERE Foley Mountain Company Trial Balance 1130/17 112.000 127 000 Accounts Receivable Allowance for Doubul Accounts hort Term Nate Receiva Sugples Invertory Equipment 50.000 65,000 62.000 75.000 320 106.000 12,000 22.000 45,000 125,000 16,840 175,000 86,000 1,000 50,000 Accumulated Depreciation Copyright Accounts Payabile Dividends Payable Interest Payable Unearned Revenue IST NotePayable LT Mortgage Payable Bonds Payable Premium on Bonds Payable Common Stock $1.75 par Paid In Capital In Excess of Parcs Preferred Stock - $5 par Paid In Capital in Excess of Par-P Treasury Stock Retained Earrings Dividends Sales Revenve Sales Returns & Allowances Sales Discounts cost of Goods Sold Bad Det Expense Deprecation Expense Was een Rent Expense seuse Supples wense AR 3,500 10,000 46,000 30.000 26.000 160,000 98,000 25.000 16.000 Galon Sale of Ecuma 1.065.5001 065.500 YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT. Instructions: You must turn in the work performed on the sheets printed with this page. This WILL NOT BE ACCEPTED ON PLAIN PAPER. Write the journal entries (on the following General Journal page) required for each of the events described below. Write the entries in the order described below (1-38). Use ONLY the accounts listed on the trial balance for your journal entries. Post the transactions to individual T-accounts and prepare an adjusted trial balance for your assigned company from page one as of December 31, 2017 1. The company purchased a building December 1, 2017 with a LT Mortgage Payable of $300,000 at 8% Interest. (Record the purchase of the building.) 2. The company issued 1,000 shares of Common Stock for $6,000 on December 25, 2017. 3. On December 29, 2017 the company declared a cash dividend of $3.00 per share for common stock on the shares issued and declared (including the additional 1,000 shares issued on December 25.) 4. The terms of the LT mortgage payable from #1 above require the company to make monthly installment payments over the term of the loan. Each payment consists of interest on the unpaid balance of the loan and a reduction of loan principal. Record the first monthly payment of $3,800 on the LT Mortgage Payable on December 31, 2017 5. The company last paid interest on the ST note payable on November 1, 2017. Record the accrued Interest expense for the last 2 months of 2017. The annual interest rate is 8%. Round to nearest whole dollar 6. The Bonds Payable and related Premium amounts on the Nov. trial balance relate to the Jan 1, 2017 Issuance of the following bonds: On Jan 1, 2017, the company issued 10%, 10-year bonds when the market rate for similar investments was 8%. The company pays interest each year on January 14 On Dec 31, 2017, use the effective interest method of amortizing the premium on bonds payable to accrue the interest expense for 2017. Round your interest expense calculation to the nearest whole dollar. 7. The Unearned Revenue amount on the Nov. trial balance relates to amounts that the company previously collected in cash for sales that were to be completed in the future. The company completed some of these sales during December and now owes only $10,000 of that unearned revenue. Record the necessary adjustment for December 31, 2017 8. On December 31, 2017, the company purchased 50 shares of its own Preferred Stock for Treasury Stock for $11 per share. YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT GENERAL JOURNAL DATE ACCOUNT NAME DEBIT CREDIT YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT Use the space below for T-accounts (REQUIRED). (Specific instructions: Prepare T-accounts for each account affected by a journal entry. Write in the unadjusted balance for each of these accounts (from page 12the unadjusted balance might be a debit, a credit, or zero balance. Now you are ready to post your journal entries from page 3 onto the corresponding T-accounts and then calculate adjusted balances.) YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT ADJUSTED TRIAL BALANCE 12/31/17 YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT Supplemental Questions 1. What will be the balance in the Mortgage Payable Account at Jan. 31, 2018 after the second monthly payment is made? 2. The Company is about to issue $2,000,000 of 5-year, 12% bonds. Interest will be paid semi- annually. The market interest rate for such securities is 10%. How much can The Company expect to receive from the sale (issuance) of these bonds