Hello, can you please help me with the following?
BACC 7100 Assignment #2 Journal Entries and Preparation of Income Statement and Balance Sheet The 2018 trial balance for Haskins Corporation is presented below. Account Cash Trading Securities Available-for-Sale Debit 100,000 50,000 50,000 Credit Fair Value Adjustment- AFS Accounts Receivable Receivable from Employee10,000 5,000 75,000 200,000 25,000 10,000 54.000 Assets Held-for-Sale Cash Value of Insurance 16,500 Buildin 96,000 32,000 Land 25,000 275,000 Accounts Payable Interest Payable Salaries Payable Taxes Payable Current Portion of Note Note Payable (noncurrent portion of note) 80,000 15,000 10,000 5,000 40,000 190,000 110,000 300,000 92,500 Common Stock Retained Eamings Other 5,000 Income/Loss $975,000 $896,000 Note: The debits and credits do not equal/balance because the net income earned so far this year, $79,000, has not yet been included in retained eanings. This amount will show up as part of the net income when you prepare the financial statements. 10. December 31st, interest on the lease has accrued. 11. December 31st, interest on the bonds has accrued. 12. The company's products carry a one-year warranty against manufacturer's defects. Warranty costs are expected to be 1% of net sales. 13. At the beginning of 2017, the corporation purchased a piece of equipment for $54,000, salvage value of $9,000, and that had a useful life of 8 years. The bookkeeper used straight-line depreciation for 2017 and 2018. However, in 2018, the bookkeeper failed to deduct the salvage value in computing the depreciation base (an error was made). The journal entry for this year's depreciation has already been made, but a correcting entry is required to fix the mistake. 14. Adjust the Trading securities and AFS securities to their respective fair values. See the portfolio tables below To help you along with this problem, please note the following The Hobokin Company AFS Securities had an unrealized loss of 3,000 reported at the end of 2017 that was aggregated into Accumulated Other Comprehensive Income on the balance sheet. When the Hobokin shares are sold on September 20 2018 (see transaction #3), the unrealized loss has to be reversed, in order to avoid double-counting the loss (unrealized through AOCI and realized through RE) on the balance sheet. Here is the entry to show the reversal: Fair Value Adjustment AFS 3,000 Accumulated Other Comprehensive Income 3,000 Now, you are ready to prepare the 2018 adjusting entry for AFS securities. The one for Trading securities is less complicated.) AFS Securities Portfolio Fair CostValueValue 2018 Fair 2017 Disney Corporation $5,000 $8,000 $10,000 Monster Truck, Inc 25,00020,000 22,000 Hobokin 20,00017,000 $50,000 $45,000 $32,000 Totals Trading Securities Portfolio CostValueValue 2017 2018 GM Comp Shaffer C Totals $15,000 $20,000 $23,000 $50,000 $50,000 $57,000 Instructions: 50 points (1) Joumalize transactions 1-14. The corporation's tax rate is 40%. (2) Remember to include a journal entry for income taxes once you have prepared the income statement. (3) Prepare a multiple-step income statement, statement of retained earnings, and a balance sheet. For maximum credit, please provide any supporting calculations for the amounts presented BACC 7100 Assignment #2 Journal Entries and Preparation of Income Statement and Balance Sheet The 2018 trial balance for Haskins Corporation is presented below. Account Cash Trading Securities Available-for-Sale Debit 100,000 50,000 50,000 Credit Fair Value Adjustment- AFS Accounts Receivable Receivable from Employee10,000 5,000 75,000 200,000 25,000 10,000 54.000 Assets Held-for-Sale Cash Value of Insurance 16,500 Buildin 96,000 32,000 Land 25,000 275,000 Accounts Payable Interest Payable Salaries Payable Taxes Payable Current Portion of Note Note Payable (noncurrent portion of note) 80,000 15,000 10,000 5,000 40,000 190,000 110,000 300,000 92,500 Common Stock Retained Eamings Other 5,000 Income/Loss $975,000 $896,000 Note: The debits and credits do not equal/balance because the net income earned so far this year, $79,000, has not yet been included in retained eanings. This amount will show up as part of the net income when you prepare the financial statements. 10. December 31st, interest on the lease has accrued. 11. December 31st, interest on the bonds has accrued. 12. The company's products carry a one-year warranty against manufacturer's defects. Warranty costs are expected to be 1% of net sales. 13. At the beginning of 2017, the corporation purchased a piece of equipment for $54,000, salvage value of $9,000, and that had a useful life of 8 years. The bookkeeper used straight-line depreciation for 2017 and 2018. However, in 2018, the bookkeeper failed to deduct the salvage value in computing the depreciation base (an error was made). The journal entry for this year's depreciation has already been made, but a correcting entry is required to fix the mistake. 14. Adjust the Trading securities and AFS securities to their respective fair values. See the portfolio tables below To help you along with this problem, please note the following The Hobokin Company AFS Securities had an unrealized loss of 3,000 reported at the end of 2017 that was aggregated into Accumulated Other Comprehensive Income on the balance sheet. When the Hobokin shares are sold on September 20 2018 (see transaction #3), the unrealized loss has to be reversed, in order to avoid double-counting the loss (unrealized through AOCI and realized through RE) on the balance sheet. Here is the entry to show the reversal: Fair Value Adjustment AFS 3,000 Accumulated Other Comprehensive Income 3,000 Now, you are ready to prepare the 2018 adjusting entry for AFS securities. The one for Trading securities is less complicated.) AFS Securities Portfolio Fair CostValueValue 2018 Fair 2017 Disney Corporation $5,000 $8,000 $10,000 Monster Truck, Inc 25,00020,000 22,000 Hobokin 20,00017,000 $50,000 $45,000 $32,000 Totals Trading Securities Portfolio CostValueValue 2017 2018 GM Comp Shaffer C Totals $15,000 $20,000 $23,000 $50,000 $50,000 $57,000 Instructions: 50 points (1) Joumalize transactions 1-14. The corporation's tax rate is 40%. (2) Remember to include a journal entry for income taxes once you have prepared the income statement. (3) Prepare a multiple-step income statement, statement of retained earnings, and a balance sheet. For maximum credit, please provide any supporting calculations for the amounts presented
