Financial Statement worksheet (Journal Entries, T-Accounts, Adjusted Trial Balance, Income statement, Retained Earnings, Balance Sheet and following questions)

42.000 Financial Statement Homework #2 Name Gold Inc December 31, 2015 Unadjusted Trial balance Cash 44.000 Accounts Receivable 22.000 Allowance for Doubtful Accounts Short Term Note Receivable 50.000 Interest Receivable Supplies on Hand 5.000 Prepaid Insurance 48,000 Inventory 10.000 Vehicle 16,000 Equipment 75,000 Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2015) Dividends 2,000 Sales Sales Discounts 10,000 Cost of Goods Sold 48,000 Delivery Expense 5,000 Depreciation Expense 16.000 Bad Debt Expense Rent Expense 98.000 Insurance Expense 25,000 Wages Expense 195,000 Supplies Expense 16,000 Interest Revenue Loss on Disposal Interest Expense 6,500 Income Tax Expense 36,000 Total 727,500 14.000 2,000 45,000 106,000 2,500 503,500 727,500 Page 1 of 8 Part 2: Post the ad (Specific instructions: journal entry. Wir Part 1: Prepare adiusting iournal entries using the unadjuster balance on the previous page and the information provided below. Use on account names provided on the previous page (do not create any new accou names). journal es balan 1. On Dec 31, 2015 Gold, Inc. sold merchandise on account for $14,500 with a cost of $450 terms 3/10 net 30. 2. Gold, Inc. loaned Jackson Co. 550.000 (already on the TB) on Oct. 1, 2015 using a 6 month, 10% interest note. All interest and principal will be paid back at the end of the 6 months. Write the adjusting journal entry required by Gold, Inc. for its financial statements as of Dec. 31, 2015 3. Uncollectable Accounts Receivables of $1,400 need to be written off for the year ended 2015. 4. Management estimates that of the remaining accounts receivable balance, $560 will be uncollectible. Record the adjustment based on this information. Hint: Use the AFDA balance AFTER the above write off during 2015. 5. Equipment was retired on Dec 31, 2015. The equipment originally cost $30.000 and has related A/D of $24,000 as of Jan 1, 2015. Additional depreciation of $2,000 needs to be recorded at Dec 31, 2015. Update the depreciation below. (Record the retirement in #6). 6. And record the retirement of the equipment (from #5) including the gain or loss. Page 2 of 8 adjusted trial Use only the account $4,500 Part 2: Post the adjusting journal entries to t-accounts: instructions: Above each T-account, write the account name of each account affected entry. Write in the unadjusted balance for each of these accounts (from page 1) the usted balance might be a debit, a credit, or zero balance. Now you are ready to post your bumal entries from page 2 onto the corresponding T-accounts and then calculate adjusted balances.) Page 3 of 8 balances after Part 3: Prepare the Adiusted Trial Balance (i.e., use ending balances the previous journal entries are posted) Gold, Inc. December 31, 2015 Adjusted Trial balance Debit Credit Part 4: Pres (Be sure to Chapter 5 below do the Ince Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Interest Receivable Supplies on Hand Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2015) Dividends Sales 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 Page 4 of 8 ances after 4: Prepare a Multi-step Income Statement cure 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.) Page 5 of 8 as outlined in Chapter prepare a classified Bol Prepare a Statement of Retained Earnings. below do not represent Sheet, use the right Page 6 of 8 we a Classified Balan assified Balance Sheet (Be sure to include the nece s Chapter 2: You may not need to use all of the lines provided Note: The represent debit and credit balances ke they do on a trial balance. On the use the right column for subtotals and totals.) Page 7 of 8 Part 5: Answer the following questions using the above completed financial statements: What is the Gross Profit? What is Income from Operations? What is Income before for Income Tax? What is Total Current Assets? What is Total Current Liabilities? What is Net PPE? If the company FAILS to record depreciation expense in the adjusting entries: What is the impact to the income statement? What is the impact to the balance sheet? Page 8 of 8