GADI Inc. is a small rental company in the Seattle area. The company purchases land and other long-term assets, then rents those assets out to other companies. They used to also rent houses and apartments, but they have found that business clients default less and tend to return items in better shape than private individuals. GADI Inc.'s accounting staff is usually pretty good at keeping up with transactions, budgeting, and other challenges, but recent trouble in the markets has forced the accounting staff to focus on modeling, internal audits, and investment strategies. So, they have hired you to jump in and finish up the accounting cycle for this year: making the last of the journal entries for the period, posting, creating trial balances, etc. Go through different parts to complete the accounting cycle for the fiscal year ending December 31, 2021.
| GADI Inc. has 22,000,000 shares of $4 par value common stock authorized, with 3,645,750 shares outstanding in 2021. Part 1: Journal Entries -Use only existing accounts. See Part 2 for all the companys existing accounts. Journal entry: | 12/21/21 | Purchased new warehouse for $5,512,000. | | | 12/23/21 | Received $1,867,000 in rent. | | | 12/24/21 | Paid $4,107,000 after losing lawsuit to client, an unusual occurence. | | 12/28/21 | Paid $530,000 in salaries. | | | 12/30/21 | Paid $47,000 for food and other supplies at a marketing event. | | | | | Part 2: All of the transactions have been posted except for the entries you just made. ( see pics for ledger.  
Part 3: 
Part 4 
Part 5 
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Cash $4,586,186 $5,221,881 Land 855.998,720 $10.499.760 $3499.920 Warehouses 8163,621,260 $32.724,252 Accumulated Depreciation $37,122,485 $1.539.965 $13.999.680 $3.849.912 $486,100 $898,310 $2.799.936 $1,566,564 Accounts Receivable 82,799,936 $233.328 $699.984 $1,866,624 $326,659 $2,099.952 $2.799.996 $979.978 $933.312 $279.994 $139.997 $486,100 $279.994 $6,266,257 $486,100 $7.524,828 $486,100 $3.133.128 $486,100 $2,088,752 $486,100 $1,924.956 $486,100 $13.833.974 $7468,766 Loan Pavable $57,165.360 Taxes Payable 83.587.418 $7.524,828 $6,270,690 Notes Payable $19,816,699 $42,015,221 Accounts Payable $8.983,100 $898,310 $1.796,620 $4491.550 $19.762,820 $13.833.974 $7468.766 $18,796,904 $19.978.710 $486,100 $699.984 Interest Payable So $1,283.304 $486,100 $641,652 $3.655.316 $486,100 $5.744,069 Common stock $14.583.000 Additional Paid-In capital $43.749,000 Retained Earnings 841,999.040 $486,100 Dividends 80 $19.978,710 $4.177.504 $486,100 $962478 $6,788445 $1,604.130 $4,699,693 $1.399.968 $2,099.952 Depreciation Expense So $13.999.680 $3.394,222 $8.355,009 Advertising Expense $o $962.478 $1,924.956 $1,283,304 $641,652 $1,604,130 Miscellaneous Selling Expense $o $1.399.968 $2,099.952 $1,166,640 $1,166,640 $139.997 $3476,587 $2,858,268 Net Revenue $o $1,166,640 $2.333,280 $5,833,200 $12,833,040 $2,916,600 $583.320 $3.499.920 $17.441,268 $9.333,120 $291,660 $408.324 $1,691,628 $641,652 Property Tax Expense $o Interest Expense $o $2,858,268 $641,652 Income Tax Expense SO $6,270,690 Gain on Sale of Warehouses SO $1,166,640 Salaries Expense SO $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 Other Losses SO Part 3 - Create a Trial Balance for GADI Inc. using the balances from the ledger (ort-accounts) that you just finished. Keep in mind that the accounts in the trial balance should appear in order: assets, liabilities, equity, revenues, expenses, then gains and losses. Only accounts WITH a balance should be included, with only the final debit or credit balance. Also, make sure you include the totals of each column! If they don't balance, you'll know you need to go back and check your work. GADI Inc. Trial Balance For Year Ended December 31, 2021 Part 4 - Make the necessary adjusting entries to record the following information available at the end of the fiscal period. Please remember that the description accompanying adjusting entries should include sufficient detail that your calculation can be checked by the auditor and duplicated next month. This means that your description should include the actual equation you used to come up with the value used in your journal entry. In making your entries, use ONLY existing accounts. You can see all of the company's existing accounts in the ledger in Part 2. As with the original entries, only the entries that appear in the box below will be graded. Adjusing Entries Part 5 - Create an Adjusted Trial Balance for GADI Inc. that includes the values from your adjusting entries. In updating your account balances from the trial balance you may either directly adjust the accounts from your Trial Balance OR update the accounts in your ledger (ort-accounts). Either way is fine, as long as you highlight and label the adjusted balances in your ledger so that they are separate from the original balances. Please choose the method that makes the most sense to you as you walk through the accounting cycle. GADI Inc. Adjusted Trial Balance For Year Ended December 31, 2021 Cash $4,586,186 $5,221,881 Land 855.998,720 $10.499.760 $3499.920 Warehouses 8163,621,260 $32.724,252 Accumulated Depreciation $37,122,485 $1.539.965 $13.999.680 $3.849.912 $486,100 $898,310 $2.799.936 $1,566,564 Accounts Receivable 82,799,936 $233.328 $699.984 $1,866,624 $326,659 $2,099.952 $2.799.996 $979.978 $933.312 $279.994 $139.997 $486,100 $279.994 $6,266,257 $486,100 $7.524,828 $486,100 $3.133.128 $486,100 $2,088,752 $486,100 $1,924.956 $486,100 $13.833.974 $7468,766 Loan Pavable $57,165.360 Taxes Payable 83.587.418 $7.524,828 $6,270,690 Notes Payable $19,816,699 $42,015,221 Accounts Payable $8.983,100 $898,310 $1.796,620 $4491.550 $19.762,820 $13.833.974 $7468.766 $18,796,904 $19.978.710 $486,100 $699.984 Interest Payable So $1,283.304 $486,100 $641,652 $3.655.316 $486,100 $5.744,069 Common stock $14.583.000 Additional Paid-In capital $43.749,000 Retained Earnings 841,999.040 $486,100 Dividends 80 $19.978,710 $4.177.504 $486,100 $962478 $6,788445 $1,604.130 $4,699,693 $1.399.968 $2,099.952 Depreciation Expense So $13.999.680 $3.394,222 $8.355,009 Advertising Expense $o $962.478 $1,924.956 $1,283,304 $641,652 $1,604,130 Miscellaneous Selling Expense $o $1.399.968 $2,099.952 $1,166,640 $1,166,640 $139.997 $3476,587 $2,858,268 Net Revenue $o $1,166,640 $2.333,280 $5,833,200 $12,833,040 $2,916,600 $583.320 $3.499.920 $17.441,268 $9.333,120 $291,660 $408.324 $1,691,628 $641,652 Property Tax Expense $o Interest Expense $o $2,858,268 $641,652 Income Tax Expense SO $6,270,690 Gain on Sale of Warehouses SO $1,166,640 Salaries Expense SO $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 $486,100 Other Losses SO Part 3 - Create a Trial Balance for GADI Inc. using the balances from the ledger (ort-accounts) that you just finished. Keep in mind that the accounts in the trial balance should appear in order: assets, liabilities, equity, revenues, expenses, then gains and losses. Only accounts WITH a balance should be included, with only the final debit or credit balance. Also, make sure you include the totals of each column! If they don't balance, you'll know you need to go back and check your work. GADI Inc. Trial Balance For Year Ended December 31, 2021 Part 4 - Make the necessary adjusting entries to record the following information available at the end of the fiscal period. Please remember that the description accompanying adjusting entries should include sufficient detail that your calculation can be checked by the auditor and duplicated next month. This means that your description should include the actual equation you used to come up with the value used in your journal entry. In making your entries, use ONLY existing accounts. You can see all of the company's existing accounts in the ledger in Part 2. As with the original entries, only the entries that appear in the box below will be graded. Adjusing Entries Part 5 - Create an Adjusted Trial Balance for GADI Inc. that includes the values from your adjusting entries. In updating your account balances from the trial balance you may either directly adjust the accounts from your Trial Balance OR update the accounts in your ledger (ort-accounts). Either way is fine, as long as you highlight and label the adjusted balances in your ledger so that they are separate from the original balances. Please choose the method that makes the most sense to you as you walk through the accounting cycle. GADI Inc. Adjusted Trial Balance For Year Ended December 31, 2021
