Hello,

Please help with the attached homework assignment. Show all your work/calculations.

SUBMISSION INFORMATION Submit the assignment in Excel using one page. The unadjusted pre-closing 12/31/15 account balances for the Mahoney Company are listed below: Net Sales $11,450,000 Net Purchases 9,800,000 Selling Expenses 430,000 Cash 500,000 Machines 6,130,000 Accumulated Depreciation, Machines 2,390,000 Accounts Payable 2,460,000 Retained Earnings 4,186,000 Allowance for Doubtful Accounts 54,000 Building 5,200,000 Accumulated Depreciation, Building 260,000 Common Stock 5,000,000 Accounts Receivable 1,645,000 Depreciation Expense, Machines 1,195,000 Inventory @ 1/1/15 900,000 During your audit, you discover the following five items that have yet to be recorded: 1. No depreciation on the building has been recorded in 2015. Depreciation on the building is based on Double-Declining Balance. It was purchased on 1/1/14 and has an estimated useful life of 40 years. The estimated salvage value is $670,000. 2. Mahoney exchanged a machine for a similar machine on 12/31/15. The original machine cost $3,540,000 and had a book value of $1,990,000. The new machine had a fair value of $1,520,000; Mahoney also received $220,000 in cash. The exchange did not have commercial substance. 3. Mahoney also exchanged its only other machine for a different machine on 12/31/15. The original machine cost $2,590,000 and had a book value of $1,750,000. The fair value was $2,100,000. Mahoney paid cash of $420,000 as well. The exchange had commercial substance. 4. Mahoney uses the Balance Sheet approach to adjust Accounts Receivable to Net Realizable Value. At 12/31/15, uncollectible receivables are estimated to be 5% of Accounts Receivable. 5. Ending Inventory is to be estimated using the Gross Profit Method. The historic Gross Profit percentage is 20%. REQUIREMENT A. Record journal entries for items #1 - #4 above and show supporting computations. In addition, compute ending inventory according to #5 above and show supporting computations. Then make the adjusting/closing journal entry to close Purchases, adjust Inventory, and record CGS. Do not show other closing entries; assume they were made properly. B. Draft the 2015 Condensed Income Statement and the 12/31/15 Balance Sheet. Assume no taxes or EPS