Hi,

Could you help me double check my work and complete the statement of cash flows please? Thank you.

LastName, FirstName Option 2: Portfolio Project: Happy Pets You have decided to open a dog walking company. Happy Pets was incorporated on January 1st, 2019. The business maintains a retail pet store, providing gourmet dog food and treats, and also provides a full range of pet care services, including grooming, dog walking, and boarding. During the year, your company engages in many business transactions. Download the Excel spreadsheet Happy Pets Inc. for your company in the module folder. The spreadsheet includes the following tabs: Units Unit Cost 170 2 5 January 1st February 8th March 1st March 31st April 1st April 10th May 15th May 30th June 1st June 30th 395,000 4,250 3,900 13,480 22,000 1,540 11,020 12,625 964 380 29 July 25th July 31st 100,000 14,522 Common stock is issued in exchange for cash in the amount of ....... The company purchases and pays for 170 units of gourmet dog food at a price of $25 per unit .............. The company pays cash for a one year insurance policy in the amount of Rent on a retail space for 12 months is paid in the amount of ......... Grooming and boarding equipment with a useful life of 2 years is purchased for cash in the amount of ...... Grooming supplies purchased on account in the amount of .............. The company purchases and pays for another 380 units of gourmet dog food at a price of $29 per unit ..... Grooming services are performed on account in the amount of ............... The company pays for advertisements to be run for the next 12 months in the amount of .......... The company issues a 5 year notes payable with their bank for $100,000 and interest at an annual rate of 6%. Interest is due on June 30th each year and the principal will be paid in full at the end of the 5 year period. Dog walking services are performed on account in the amount of ........... 105 units of gourmet dog food are sold for $70 per unit with terms 2/10, n/30. The sale is recorded using the gross method in the amount of (see note c for cost flow assumptions) ........................... Boarding services are provided on account in the amount of ....... The company receives full payment from the customer for the July 31st sale ............................... Pet sitting services are performed on account in the amount of ... Customer payments are received for services previously provided in the amount of ....... 100 units of gourmet dog food are sold for $73 per unit with terms 2/10, n/30. The sale is recorded using the net method in the amount of ...... The company receives payment for half of the October 13th sale Equipment originally purchased on April 1st for $2400 is sold for $2000 cash A bookkeeper is hired to help the company with daily accounting taxes and annual tax preparation The bookkeeper is paid $4,500 for the previous month's services 105 29 August 2nd August 6th September 15th September 29th October 13th 7,350 6,380 7203 4,345 1,350 100 29 7,300 3,650 October 29th November 1st November 15th December 15th 4,500 Additional information: 2. Grooming supplies on hand at the end of the month are as follows ..... b. The year end balance reported at the end of the year for the Allowance for Doubtful Accounts is estimated as 4% of outstanding receivables at the end of the year c. The Company uses a perpetual inventory system and accounts for costs using the First In First Out cost flow assumption. On December 31st, 2 count of ending inventory reveals that there are 345 bags of dog food on hand. d. All revenue is recorded in the "Sales Revenue" account and reported net of cash discounts on the income statement c. The effective interest method is used to amortize bond premiums and discounts f. Adjustments are made at the end of the year for prepaid insurance, rent, advertising, depreciation, and interest expense. g. The bookkeeper is paid a salary of $4,500 on the 15th of every month. h. The company declared dividends of $750 for the year i. Assume selling expenses include advertising and supplies expense. All other expenses, other than depreciation and interest expense, are considered general & administrative. DUIRED: PART A Prepare journal entries for each transaction listed above (with descriptions). Post journal entries to the general ledger accounts. Prepare an unadjusted trial balance. Prepare all necessary adjusting journal entries (with descriptions) and post to the general ledger. Prepare an adjusted trial balance on December 31st. Prepare closing entries, post to the general ledger, and carryforward balances to January 1st of the next year. Prepare the following financial statements on December 31st (ignore income taxes): 2. Income Statement multi step, see Example 5.2 in textbook) b. Statement of Stockholders' Equity c. Balance Sheet (classified) d. Statement of Cash Flows (indirect method) Journal Debit 395.000 Credit Date Accounts 1-Jan Cash Jan Common stock to record issue of common stock) 395.000 4.250 1 8-Feb Inventory 8-Febl Cash to record purchase of dog food) 4 .250 3,900 1-Mar Prepaid Insurance 1-Mar Cash to record purchase of insurance) 3.900 13,480 31-Mar Prepaid Rent 31-Mar Cash (to record payment of rent) 12,480 22.000 1-Apr Grooming and boarding equipment 1-Apr Cash to record purchase of equipment) 22.000 1.540 10-Apr Grooming Supplies 10-Apr Accounts Payable (to recored purchase of supplies on account) 1.540 11.020 15-May Inventory 15-May Cash to record purchase of inventory) 11.020 12.625 30-May Accounts Receivable 30-Mayl Service Revenue to record services performed) 12.625 964 1-Jun Prepaid advertisement 1-Jun Cash to record advertisement for the year) 964 92.015 7.985 30 Jun Cash 30 Jun Discount on bonds payable 30-Jun Bond Payable to record issuance of bond) 100,000 14,555 25-Jul Accounts Receivable 25-Jull Service Revenue to record service performed 14,555 7,350 31-Jul Accounts Receivable 31-Jull Sales to record sale) 7.350 2.625 31-Jul Cost of Goods Sold 31 Jull inventory to record cost of goods sold) 2.625 6,380 2-Aug Accounts Receivable 2-Augl Service Revenue to record services performed) 6.380 6,6171 733 6-Auel Cash 6-Augl Sales Discount 6-Aug Accounts Receivable To record collection) 7,350 6.345 15-Sep Accounts Receivable 15-Sep| Service Revenue to record services performed) 6.345 1.350 29-Sep Cash 29-Sepl Accounts Receivable (to record collection) 1.350 7.300 13-Oct|Accounts Receivable 13-Oct Sale to record sale) 7.300 2.640 13-OctCost of goods sold 13-Oct Inventory to record cost of goods sold) 2.640 3,650 29-OctCash 29-Oct Accounts Receivable to record collection) 3.650 200 1-Nov Depreciation Expense 1-Nov Accumulated Depreciation to record depreciation for sold equip) 200 2.000 700 1-Novi Cash 1-Nov. Accumulated Depreciation 1-Nov Equipment 1-Novl Profit on sale of equipment to record sale of equipment) 2.400 300 4,500 15-Decl Salaries Expense 15-Decl Cash to record salaries payment) 4.500 Adjusting Journal Date Accounts Debit Credit a 616 Grooming and Boarding Expense Grooming and Boarding Supplies to record grooming expense) 616 1 1 b b ,687 Bad Debt Expense Allowance for Doubtful Accounts to record bad debt) 1,687 No entry d No entry 3,681 Interest Expense Discounts on Bonds Pavable Interest Payable (to record interest expense on bonds) 681 3.000 3,250 Insurance Expnse Prepaid Insurance to record insurance expense) 1 3 .250 10.110 Rent Expense Prepaid Rent to record rent expense) 10.110 5621 Advertising Expense Prepaid Advertisement (to record advertising expense) 8171 Depreciation Expense Accumulated Depreciation to record advertising) 817 4.500 Salaries Expense Salaries Payable (to record salaries payable) 4.500 750 h Dividends Dividends Payable to record dividends payable) ASSETS 1-Jan 395,000 8-Feb 4.250 3,900 13.480 22.000 11,020 964 Accounts Receivable 12,625 14,555 7,350 6,380 7.350 30-May 25-Jul 31-Jul 2-Aug 6-Aug 15-Sep 29-Sep 13-Oct 29-Oct 6,345 1- Mar 31-Mar 1- Apr 15-May 1-Jun 30-Jun 6-Aug 29-Sep 29-Oct 1-Nov 15-Dec 1,350 7.300 92,015 6,617 1,350 3,650 2,000 3650 12,350 54,555 Allowance for Doubtful Accounts 4.500 Prepaid Insurance 3,900 Supplies 1,540 1-Mar 10-Apr Prepaid Rent 13,480 31-Mar Inventory 4,250 11,020 8-Feb 15-May 31-Jul 13-Oct 2,625 2640 Prepaid Advertising 964 1.Jun Equipment 22,000 1-Apr 1-Now 2.400 Accumulated Depreciation 700 1-Nov 1-Nov LIABILITIES Accounts Payable Dividends Payable 10-Apr 1.540 Interest Payable Salarics Pavable Notes Payable 30-Jun 100,000 STOCKHOLDERS' EQUITY Retained Earnings Common Stock 395,000 1-Jan Sales 31 - Jul 13-Oct 7.350 7.300 Service Revenue Advertising Expense 30-May 25.Jul 2-Aug 15-Sep 12,625 14,555 6,380 6,345 Insurance Expense Rent Expense 30-Jun 6-Aug Cash Discounts 7,985 733 Supplies Expense 31-Jul 13-Oct Cost of Goods Sold 2,625 2,640 Depreciation Expense 700 1-Nov Bad Debt Expense Salaries Expense 4,500 Interest Expense 15-Dec Gain on Sale of Equipment 1-Nov Dividends HAPPY PETS Trial Balance As of December 31, 2019 Adjusting Debit Credit Adjusted Debit Credit | Unadjusted Debit Credit 440.5181 42,205 1. 42,205 January 1st, 2020 Debit Credit 440,518 42,205 1.687 9241 6501 3,370 1,687 . 1,68711 616|| 3.250 10,11011 562|| 1,540 3,900 924 650 3,370 402 402 9864 10,005 19.000 10,005) 817|| 1,54011 D 3,00011 4.500 T 817| 1,5401 3,000 4.500 100,000 10,0051 19,6001 8171 1,5401 3,000 4,500 100,000 1 7501 395,000 16,417 | 14,650 39,905 8,037 T 750|| Accounts Cash Accounts Receivable Allowance for Doubtful Accounts Supplies Prepaid Insurance Prepaid Rent Prepaid Advertising Inventory Equipment Accumulated Depreciation Accounts Payable Interest Payable Salaries Payable Notes Payable Dividends Payable Common Stock I Retained Earnings Sales Revenue Service Recenue Cash Discounts Cost of Goods Sold Grooming and Boarding Expense Bad Debt Expense Interest Expense T Salaries Expense Advertising Expense Insurance Expense Rent Expense Supplies Expense Depreciation Expense Gain on Sale of Equipment Dividends TOTAL T 100,00011 1. 395,000 18,417|| 14,650|| 39,905| 395,000 18,417 | | 681 1 8,718 5,265 T T 1 | 616 1.6871 3,681 4, 5001 562 3,250 10,110 8,037 5,265 616 1,687 3,681 4.500 562 3,250 1 0,110 4,500 1,517 1 4.500 700 1. nl 8171 n 750 750 25,973 I 25,973|| 551,395 | 569,812||. 562,149 580,566 525,711 525,711 HAPPY PETS Income Statement For the year ended December 31, 2019 Sales revenue (net) Cost of goods sold Gross profit 54,555 (5,265) 49,290 1.178 24,047 1,517 Operating expenses: Selling expenses General & administrative expenses Depreciation expense Total operating expenses Operating Income Other items: Interest expense Gain on sale of equipment Net Income (3,681) 300 19.167 HAPPY PETS Statement of Stockholders' Equity For the Year Ended December 31st, 2019 Common Stock Retained Earnings Total 395,000 Beginning Balance Issuance of Stock Add: Net Income Less: Dividends Ending Balance 19,167 750 18,417 395,000 19,167 (750) 413,417 395.000 Balance Sheet As of December 31st, 2019 440,518 42,205 (1.687) ASSETS Current assets: Cash Accounts receivable Less: Allowance for doubtful accounts Inventory Supplies Prepaid insurance Prepaid rent Prepaid advertising Total current assets 40,518 10,005 924 3,370 402 496.387 19,600 ong term assets: Equipment Less: Accumulated depreciation Total long term assets 18,73 TOTAL ASSETS 515,170 LIABILITIES Current Liabilities: Accounts payable Interest payable Salaries payable Dividends payable Total Current Liabilities 1,540 3,000 4,500 750 9,790 Long Term Liabilities Notes payable Notes Payable Interest Total Liabilities 100,000 18.037) 91,963 101,753 STOCKHOLDERS' EQUITY Common Stock Retained Earnings Total Stockholders' Equity 395,000 18.417 413,417 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 515.170 HAPPY PETS Statement of Cash Flows For the year ended December 31st, 2019 Cash Flows from Operating Activities Net Income Adjustments for noncash effects Depreciation expense Bad debt expense Gain on sale of equipment * Changes in current assets and current liabilities: Increase/Decrease in accounts receivable Increase/Decrease in inventory Increase/Decrease in supplies Increase/Decrease in prepaid insurance Increase/Decrease in prepaid rent Increase/Decrease in prepaid advertising Increase/Decrease in accounts payable Increase/Decrease in interest payable Increase/Decrease in salaries payable Net cash flows for operating activities Cash Flows from Investing Activities Purchase of equipment Proceeds from sale of equipment Net cash flows for investing activities Cash Flows from Financing Activities Issuance of common stock Proceeds from bond issuance Payment of dividends Net cash flows from financing activities Net increase in cash Beginning cash balance, Jan. 1 Ending cash balance, December 31