Great Products Inc. Irial Balance For the Year Ended 12/31/19 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Income Statement Debit Credit Trial Balance Debit Credit 850.320.00 6,000.00 18,000.00 22.450.00 14,080.00 2,500.00 1,500.00 950,000.00 300,000.00 800,000.00 260,000.00 8,250.00 6,750.00 9,000.00 0.00 79,000.00 0.00 0.00 Account Numb Account 1000 Cash and Iquivalents 1010 Prepaid Insurance 1020 Raw Materials 1030 Goods in process 1040 Finished Goods 1050 Office Supplies 1060 Goodwill 1070 Building 1080 Accumulated Depreciation-Building 1090 Land 1100 Accounts Receivable 1110 Debt Investments 1120 Equily Investments 1130 Allowance for Doubtful Accounts 1140 Contract Asset 2000 Accounts Payable 2010 Accrued Expenses 2020 Unearned Revenue 2030 Warranty Liability 2040 Long-term Debt 3000 Common Stock 3010 Retained Earnings 3020 Preferred Stock 3030 OCI 4000 Sales Revenue 4010 Services Revenue 4020 Sales Discounts Forfeited 4030 Interest Revenue 5000 Cost of Goods Sold 5010 Supplies Expense 5020 Insurance Expense 5030 Interest Expense 5040 Depreciation Expense 5050 Warranty Expense 5060 Wage Expense 5070 Bad Debl Expense 6000 Gain on Sale of Equipment Total 55,000.00 498,000.00 1,278,500.00 300,650.00 180,950.00 13,750.00 788,820.00 271,900.00 4,000.00 5,000.00 524,000.00 1,200.00 0.00 5,000.00 0.00 0.00 317,920.00 0.00 3,787,970.00 3,400.00 3,787,970.00 0.00 0.00 0.00 0.00 Net Income 0.00 INSERT FORMU 2019 Retained Earning INSERT FORMULA IVALUL check Adjusting Journal Entries Account AJE Debit Credit Great Products Inc. Classified Balance Sheet As of 12/31/19 Assets Current Assets Cash and Equivalents Total Current Assets Noncurrent Assets Property, Plant, and Equipment Liabilities Current Liabilities $ Total Current Liabilities Noncurrent Liabilities $ - Total Noncurrent Liabilities Total Liabilities Shareholder's Equity Intangible Assets Total Noncurrent Assets Total Assets check $ Total Shareholder's Equity $ Total Liabilities and S/H Eq$ - Info set for Great Products Inc. 1. A physical count of supplies at December 31, 2019 shows that $2,000 of supplies are still available. 2. The annual depreciation on the building for the year was $68.000. 3. The final payroll of the year was December 23, 2019. Since then, $8,000 of wages have been incurred. 4. The insurance policy of $6,000 was purchased on January 1, 2019 and lasts for 3 years. 5. On December 20, 2019, Great Products Inc. sold $500 of finished goods to customer 1 at a price of $1000. The terms per the invoice were 2/10, n/30 and Great Products uses the net method for discounts. As of December 31, 2019 customer 1 had still not paid. 6. On December 31, 2019, Great Products Inc. shipped $1000 of finished goods based on customer 2's purchase order priced at $1500 with F.O.B. shipping point. Unfortunately due to the rush at year end, Great Products forgot to send out the invoice with the product. The product's price comes with a built-in 1-year warranty and no additional extended warranty was purchased. Great Products estimates these types of warranties to cost $100 on average per year. (Assume terms will be simply n/30) 7. Great Products Inc. realized that they had significantly overestimated bad debt in 2018 as many of their customers began to pay in 2019 in a timely manner. At the end of 2019, Great Products estimates that they will only need a reserve for bad debt of $5,000. 8. Great Products plans to hold onto their debt investments until maturity on 9/31/2021. The equity investments are public company stocks that represent trading securities. Any interest revenues and expenses(for debt) for 2019 have already been received or paid for at year-end, respectively. (no need for further interest adjustments) Instructions: 1. Based on the fact pattern above, make adjusting entries onto the AJE tab. 2. Fill out the adjustments columns based on the entries. (Demonstrate SUMIF). 3. Create formulas for the adjusted trial balance columns. 4. Isolate the income statement accounts from the adjusted trial balance and calculate Net Income 5. Figure out what retained earnings should be at the end of 2019, assuming that Great Products Inc. does not pay dividends to shareholders. 6. Fill in the classified balance sheet tab based on your information. Please combine inventory into one "Inventory" category. Make sure to place accounts in the correct categories and in the correct order! (they might not be in the correct order in the TB) *Hint: You will use V-Lookup for most and manually calculated RE and inventory Notes: *Checks have been placed in to make sure that debits equal credits and that assets=liab+eq on the balance sheet. If any of these become a nonzero amount and turn red(conditional formatting), please double check to see where the error was made. *When completing the balance sheet, values will be placed in 1 column only unlike the Trial Balance. Make sure to appropriate negative values for contra-accounts. Great Products Inc. Irial Balance For the Year Ended 12/31/19 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Income Statement Debit Credit Trial Balance Debit Credit 850.320.00 6,000.00 18,000.00 22.450.00 14,080.00 2,500.00 1,500.00 950,000.00 300,000.00 800,000.00 260,000.00 8,250.00 6,750.00 9,000.00 0.00 79,000.00 0.00 0.00 Account Numb Account 1000 Cash and Iquivalents 1010 Prepaid Insurance 1020 Raw Materials 1030 Goods in process 1040 Finished Goods 1050 Office Supplies 1060 Goodwill 1070 Building 1080 Accumulated Depreciation-Building 1090 Land 1100 Accounts Receivable 1110 Debt Investments 1120 Equily Investments 1130 Allowance for Doubtful Accounts 1140 Contract Asset 2000 Accounts Payable 2010 Accrued Expenses 2020 Unearned Revenue 2030 Warranty Liability 2040 Long-term Debt 3000 Common Stock 3010 Retained Earnings 3020 Preferred Stock 3030 OCI 4000 Sales Revenue 4010 Services Revenue 4020 Sales Discounts Forfeited 4030 Interest Revenue 5000 Cost of Goods Sold 5010 Supplies Expense 5020 Insurance Expense 5030 Interest Expense 5040 Depreciation Expense 5050 Warranty Expense 5060 Wage Expense 5070 Bad Debl Expense 6000 Gain on Sale of Equipment Total 55,000.00 498,000.00 1,278,500.00 300,650.00 180,950.00 13,750.00 788,820.00 271,900.00 4,000.00 5,000.00 524,000.00 1,200.00 0.00 5,000.00 0.00 0.00 317,920.00 0.00 3,787,970.00 3,400.00 3,787,970.00 0.00 0.00 0.00 0.00 Net Income 0.00 INSERT FORMU 2019 Retained Earning INSERT FORMULA IVALUL check Adjusting Journal Entries Account AJE Debit Credit Great Products Inc. Classified Balance Sheet As of 12/31/19 Assets Current Assets Cash and Equivalents Total Current Assets Noncurrent Assets Property, Plant, and Equipment Liabilities Current Liabilities $ Total Current Liabilities Noncurrent Liabilities $ - Total Noncurrent Liabilities Total Liabilities Shareholder's Equity Intangible Assets Total Noncurrent Assets Total Assets check $ Total Shareholder's Equity $ Total Liabilities and S/H Eq$ - Info set for Great Products Inc. 1. A physical count of supplies at December 31, 2019 shows that $2,000 of supplies are still available. 2. The annual depreciation on the building for the year was $68.000. 3. The final payroll of the year was December 23, 2019. Since then, $8,000 of wages have been incurred. 4. The insurance policy of $6,000 was purchased on January 1, 2019 and lasts for 3 years. 5. On December 20, 2019, Great Products Inc. sold $500 of finished goods to customer 1 at a price of $1000. The terms per the invoice were 2/10, n/30 and Great Products uses the net method for discounts. As of December 31, 2019 customer 1 had still not paid. 6. On December 31, 2019, Great Products Inc. shipped $1000 of finished goods based on customer 2's purchase order priced at $1500 with F.O.B. shipping point. Unfortunately due to the rush at year end, Great Products forgot to send out the invoice with the product. The product's price comes with a built-in 1-year warranty and no additional extended warranty was purchased. Great Products estimates these types of warranties to cost $100 on average per year. (Assume terms will be simply n/30) 7. Great Products Inc. realized that they had significantly overestimated bad debt in 2018 as many of their customers began to pay in 2019 in a timely manner. At the end of 2019, Great Products estimates that they will only need a reserve for bad debt of $5,000. 8. Great Products plans to hold onto their debt investments until maturity on 9/31/2021. The equity investments are public company stocks that represent trading securities. Any interest revenues and expenses(for debt) for 2019 have already been received or paid for at year-end, respectively. (no need for further interest adjustments) Instructions: 1. Based on the fact pattern above, make adjusting entries onto the AJE tab. 2. Fill out the adjustments columns based on the entries. (Demonstrate SUMIF). 3. Create formulas for the adjusted trial balance columns. 4. Isolate the income statement accounts from the adjusted trial balance and calculate Net Income 5. Figure out what retained earnings should be at the end of 2019, assuming that Great Products Inc. does not pay dividends to shareholders. 6. Fill in the classified balance sheet tab based on your information. Please combine inventory into one "Inventory" category. Make sure to place accounts in the correct categories and in the correct order! (they might not be in the correct order in the TB) *Hint: You will use V-Lookup for most and manually calculated RE and inventory Notes: *Checks have been placed in to make sure that debits equal credits and that assets=liab+eq on the balance sheet. If any of these become a nonzero amount and turn red(conditional formatting), please double check to see where the error was made. *When completing the balance sheet, values will be placed in 1 column only unlike the Trial Balance. Make sure to appropriate negative values for contra-accounts