General journal entries to record the summary transactions and adjusting journal

entries.

2. The year-end worksheet, using cell reference links to post the general journal

entries and formulas to extend the worksheet. Just put the summarized transactions and the adjusting entries all into the adjustment columns on the worksheet.

3. Financial statements, including a Multi-step Income Statement, a Retained

Earnings Statement, and a classified Balance Sheet. Again, use cell reference

links and formulas where possible.

4. Submit your Excel spreadsheet(s), for the journal entries, worksheet, and financial statements via Blackboard.

Summarized transactions for 2018:

a. 1. Sold merchandise on credit, $634,525. MSU Candy uses a

periodic inventory system.

2. Collected 90% of these current credit sales.

3. Collected 95% of beginning accounts receivable.

4. Wrote off the remaining 5% of beginning accounts receivable.

b. 1. Purchased merchandise on credit, $363740. MSU Candy uses a

periodic inventory system.

2. Paid 85% of these purchases.

3. Paid all of beginning accounts payable.

Continued on next page.

c. On April 1, 2018, paid $2,340 for a renewal of the insurance policy which will

provide coverage for the period 4/1/18 to 4/1/19.

d. Supplies purchased for cash during the year $26,374.

e. On July 1, 2018, received cash consisting of a $3,000 payment of principal on the

note receivable plus interest for six months @8.34%.

f. On January 1, 2018, equipment costing $10,000 (with related accumulated

depreciation of $3,600) was exchanged for different equipment having a FMV of

$7,525. No cash was exchanged and the exchange had commercial substance.

g. Paid $65250 for salaries and $10,340 for payroll taxes. Both of these amounts

include the beginning liabilities for each, respectively.

h. 73.4% of the beginning Unearned Revenue was earned by year-end.

i. Dividends declared in 2016 were paid in January, 2018. Dividends of $6,525

were declared in December, 2018 and will be paid in January, 2019.

Year-end adjusting entries:

aa. MSU Candy estimates that 5% of ending accounts receivable will become

uncollectible.

bb. MSU Candys inventory count at 12/31/18 shows $55250 of merchandise

inventory remaining. Make an adjusting journal entry (AJE) to close purchases,

adjust Merchandise Inventory to ending balance, and create a Cost of Goods Sold account.

cc. Adjust Prepaid Insurance to reflect insurance expired during the year.

dd. Supplies on hand at year-end totaled $5,525.

ee. Interest on the remaining note receivable was supposed to be received at

12/31/18; however, it did not arrive. Make an AJE to record interest receivable

and interest income for second half of the year.

ff. Make adjusting entries to record depreciation expense on the building and

equipment. MSU Candy uses SL, 20% SV, 40-year life for the building and DDB,

No SV, 10-year life on the equipment.

gg. Unpaid salaries and payroll taxes at year-end were $1,6374 and $3,525

respectively.

hh. A bank reconciliation prepared at 12/31/18 showed $10,000 deposits in transit,

$7,000 outstanding checks, $634 bank service charges, and $1,525 interest

earned.

Optional entries:

ii. 30% tax rate (This exp/payable could just be calculated on IS and BS, but you can journalize it after all other work is done. )

need help with the debits and credits om the adjustments, adjusted trial balance, income statement, and balance sheet