HOMEWORK #2 Due January 24, 5:00 pm 10 points Sparty Corporation has been operating for two years. The December 31, 2018 account balances are: Accounts Payable Salaries Payable $190,000 Cash $250,000 Accounts Receivable 65,000 45,000 Notes Payable long term Inventory 175,000 29,000 Contributed Capital Retained Earnings Short-term Investments 20,000 220,000 Equipment Land 180,000 210,000 124,000 During the year 2019, the company had the below activities. Note that none of these activities should impact the income statement, only the balance sheet; we are assuming for simplicity that the company did not have any revenues or expenses during 2019. a. Collected $15,000 cash on open accounts receivable from customers. b. Bought additional inventory for $2,000 on account. c. Received a $70,000 loan from the bank, payable in four years. d. Purchased additional short-term investments for $5,000 cash. e. Returned some defective inventory to a supplier for a full cash refund of $1,000. f. Ordered supplies worth $9,000 from Concord Supplies to be delivered next month, Sparty Corporation has been operating for two years. The December 31, 2018 account balances are: Accounts Payable Salaries Payable $190,000 45,000 Cash $250,000 Accounts Receivable 65,000 Notes Payable long term Inventory 29,000 175,000 Contributed Capital Retained Earnings Short-term Investments 220,000 20,000 Equipment Land 180,000 210,000 124,000 During the year 2019, the company had the below activities. Note that none of these activities should impact the income statement, only the balance sheet; we are assuming for simplicity that the company did not have any revenues or expenses during 2019. a. Collected $15,000 cash on open accounts receivable from customers. b. Bought additional inventory for $2,000 on account. c. Received a $70,000 loan from the bank, payable in four years. d. Purchased additional short-term investments for $5,000 cash. e. Returned some defective inventory to a supplier for a full cash refund of $1,000. f. Ordered supplies worth $9,000 from Concord Supplies to be delivered next month. Paid off $25,000 of notes payable a year early. Ignore interest. g. Purchased additional equipment costing $40,000; paying $10,000 in cash and signing a promissory note to pay the balance in three years. Issued 20,000 shares of stock, receiving $100,000 in cash and land valued at $8,000 from investors. Paid off $30,000 of salaries owed from the prior year. h. j. Submit all your answers to D2L in one Excel file with multiple worksheets. 1. Copy and paste the above table with the account balances into an Excel spreadsheet. This will be your first worksheet titled "Question #1." 2. On a new worksheet titled "Question #2", prepare journal entries for each event that is an accounting transaction. For example, for the following event, the journal entry will be as follows: I. Purchased additional buildings for $125,000 by signing a long-term note Event Accounts Debit Credit Building (+A) Notes Payable long term (+L) $125,000 I. $125,000 Note: Do not include this example in your solution. This is just for illustrative purposes. When you are done recording your journal entries sum your columns of debits and credits to make sure they are equal. On a new worksheet titled "Questions #3 and #4", create T-accounts for each account, bringing in the beginning balances from the table you copied and pasted into Excel for #1 above. Be sure you have the balances on the correct side (i.e., debit versus credit) of the account. Note that you should have only one T-account for each account. For example, you should have one T-account for Cash where all journal entries to the cash account are included. 3. 4. Post the effects of the transactions for 2019 to the T-accounts created in #3. See the bottom of page 65 in the textbook for an example of what your T-accounts should look like. 5. On a new worksheet titled Question #5", prepare a trial balance (see page 68 in the textbook). By referring to cells in your T-accounts bring over the balances from your T-accounts to the trial balance. Use the "Sum" function to add up your debit and credit columns to ensure they are equal. 6. On a new worksheet titled "Question #6", prepare a classified balance sheet for the 2019 year-end balances (see page 69 in the textbook). By referring to cells in your trial balance, bring over the appropriate amounts from the trial balance to your balance sheet. Use the "Sum" function to calculate your totals. Your balance sheet should balance