How were the adjusted entries calculated?

899 adjusting entries Date Account Debit Credit 31-Dec depreciation expense $ 13,915 accumulated depreciation buil $ 13,915 to record depreciation expense for building 31-Dec depreciation expense $56,324 accumulated depreciation Equi $ 56,324 to record depreciation expense for equipment 31-Dec depreciation expense $ 7,143 accumulated depreciation Equi $ 7,143 to record depreciation expense for equipment purchased on 7/1 31-Dec supplies expense $ 1,150 supples $ 1,150 to record supplies expense 31-Dec bad debts expense $ 899 allowance for bad debts $ to bring the allowance for bad debts to should be accounts 31-Dec interest expense $ 6,808 interest payable $ 6,808 to accrue interest on foley and northern bank loans 31-Dec interest expense $ 1,500 interest payable $ 1,500 to accrue interest on bank loan for equipment purchased on 7/1 31-Dec insurance expense $ 3,075 prepaid insurance 3,075 to record amortization of prepaid insurance 31-Dec unearned rent $ 2,000 rent income 2,000 to recognize rent income 31-Dec income tax expense $ 46,121 income tax payable $ 46,121 to record income tax expense $ $ Stock Northern bank - 120.000 x interest rate, Interest is paid on ene 30 of each year, principal te Common Stock has a 51 per value. 500,000 shares authorized. 100.000 shares baved and Preferred Stock has a 510 pat value. 106,100,000 shares authorized, there were so share issued of outstanding at 12/31/2022 The following transactions and events occurred in 2023. Date Transaction 1/1 Issued 10.000 share of 51 par common stock to investors at $10 per share 1/1 Paid monthly rent en computer equipment. 5500 1/1 Issued 5.000 share of S10 par 10preferred stock to investasi per share 1/1 The estimated useful life and salvage value for the building that was purchased in 2022 was changed. It is now estimated that the building as a remaining e as of 1/1/2023 of 20 years and a salvage value of $5.000 1/1 Purchased a building and land for $200,000. The building as a 25year expected life and a $10,000 expected salvage value. The land is valued at $80.000 1/10 Purchased $250 of supplies for cash 1/15 Purchased Inventory on account - 500 Running Sneakers for S121 each and 600 Aerobic for $82 each 1/15 Made a payment of $20,000 to pay off several Accounts Payable accounts 1/15 Paid the cash dividend declared in November 2022 1/31 Paid $3,300 for a 1-year Insurance policy effective 2/1/2023-2/31/2004 2/1 RSG repurchased 1,000 shares of its own common stock to be held as treasury stock. The price paid was $12 per share 2/1 Paid the interest on the loan from Foley Bank Remember some of the interest was accrued at 12/31/2022 - your entry should include three accounts 2/2 Paid for inventory purchased on 1/25 2/20 Sold Inventory on account (sold 100 Running Sneakers for $200 and 120 Rerobic Sneakers for $150 terms 2/10.net 30 3/2 Received notice that a customer from 2022 declared bankruptcy and will not be able to pay the remaining balance owed on their bill. $1.000 3/5 Sold Inventory on account sold 200 Running Sneakers for $200 and 70 Aerobic Sneakers for $150 terms 2/10.net 30 3/10 Received payment for the 2/20 transaction 3/12 Received payment for merchandise sold on 3/3 1/15 Paid income taxes owed from the 2022fiscal year 4/2 Sold inventory on account (sold 250 Running Sneakers for $200 and 200 Aerobic Sneakers for $150 terms 2/10.net 30 4/10 Received payment for merchandise sold on 4/2 4/30 Purchased inventory on account - 700 Running Sneakers for 5123 each and 500 Aerobic for $84 each $/1 Sold Inventory on account sold 350 Running Sneakers for $200 and 250 Rerobic Sneakers for $150 terms 2/10, net 30 5/20 Customer from the 5/1 transaction returned inventory (50 Running Sneakers al inventory was still in good working order 5/20 Customer paid their remaining balance from the 5/1 transaction 6/10 Paid for half of the inventory purchase from 4/30 Date 7/8 7/1 7/15 8/2 8/10 9/10 Transaction Made interest payment of equipment note 10 Northern Bank Purchased $50,000 of equipment using a bank loan at interest to be paid in 2 years Interest is due on June 30 of each year. The equipment has a life of 7 years and a 5.000 salvage value Sold inventory on account sold 275 Running Sneakers for $200 and 315 Aerobic Sneakers for $150) terms 2/10, net 30 Purchased $300 of supplies for cash Received of payment from the 7/15 transaction Purchased Inventory on account - 600 Running Sneakers for $1.24 each and 300 Aerobic for $8$ each Made a payment of $100.000 towards our accounts payable balance Purchased $350 of supplies for cash Received $4,200 from a terant for months rent (11/1/2023 4/30/2024 Paid a cash dividend of 5.20 per share on outstanding shares and paid dividends to preferred shareholders Sold Inventory on account sold 600 Running Sneakers for $200 and 510 Aerobic Sneakers for $150 terms 2/10, net 30 Received payments totaling $250.000 from customers for past due Invices 10/1 10/15 11/1 11/17 12/1 12/31 Other Information: At year end $150 worth of supplies are on hand The company uses the % of Receivables method in estimating bad debts: 3% of the ending receivables balance is deemed to be uncollectible Required: Prepare all journal entries to record the information for 2023. Prepare all adjusting journal entries as necessary Prepare an adjusted Trial Balance as of December 31, 2023 Prepare an income statement, statement of retained earnings and a balance sheet as of December 31, 2023 Prepare a cash flow statement, using the indirect method for the year ended December 31, 2023 Close all accounts as necessary and prepare a post-closing Trial Balance Please include a sheet on how you calculated your adjusting Journal entries and inventory Prepare a horizontal analysis of the balance sheet When preparing this analysis only analyze the sum of the main categories (total current assets. total long-term assets, total assets, total current liabilities, total long-term liabilities, total liabilities, total equity, total liabilities and equity) Prepare a vertical analysis for 2023 income statement When preparing this analysis use the following categories: Net Sales, Cost of Goods Sold, Gross Profit, Operating Expenses, Income from Operations Other Expenses and losses, Income before income taxes, Income Tax Expense and Net Income . Compute the following ratios for the company (use 365 days per year and be sure to show all calculations) Gross Profit Margin Debt to assets ratio Net Profit Margin O Current ratio Earnings per Share Inventory Turnover Return on Comm Stockholder's Days in Inventory equity Average receivable turnover Return on Assets Average collection period Based on the following industry standards, comment on the profitability, solvency and liquidity of the company. o Gross Profit Margin 40.00% Net Profit Margin 15.20% o Earnings per Share 80 Return on Comm Stockholder's equity 17.00% . Return on Assets 11.00% Debt to assets ratio .50 o Current ratio 1.50 Inventory Turnover Days in Inventory 91.25 Average receivable turnover 15.00 Average collection period 24.33 NOTE: It is up to you to use the skills you learned in Spreadsheets to complete a report using Excel. Please be sure all cells are referenced and using formulas where applicable. Getting or using a template from another source is considered plagiarism and will result in automatically failing this assignment. 4.00 BSG is a Corporation that sells 2 styles of Sneakers (Running and Aerobic) The company uses the perpetual FIFO method in accounting for its inventory. BSG makes its adjustments at the end of each year All sales and inventory are purchased on account Be sure to round all numbers to the nearest dollar (Do Not Use Cents). The company had the following Post-Closing Trial Balance at 12/31/2022 Account Name Debit Credit Cash 56,254 Accounts Receivable 41,475 Allowance for Bad Debt 1,244 Inventory 92,000 Supplies on Hand 400 Prepaid Insurance 50 Land 75,000 Building 200,000 A/D- Building 4,700 Equipment 230,000 A/D-Equipment 32.867 Accounts Payable 23,200 Income Tax Payble 23,023 Interest Payable 6,808 Unearned Rent 600 Dividend Payable 10,000 Notes Payable 170,000 Common Stock 100,000 APIC-Common Stock 200,000 Retained Earnings 122,737 BSG uses, the 200% double declining balance, Half Year, method to depreciate all 5, 7 & 10-year property BSG uses, the SL, mid-month basis to depreciate all real property Income tax rate is 35% The $230,000 of equipment has an expected life of 7 years and no salvage value The $200,000 building has an expected life of 39 years and no salvage value Inventory at 1/1/23 consists of: o Running Sneakers - 500 units at $120 each Aerobic Sneakers - 400 units at $80 each Notes Payable at December 31, 2022 consisted of: Foley Bank - 50,000,7% interest rate. Interest is paid on Feb 1" of each year, principal to be repaid on 2/1/2026