I am needing someone to look over the "Adjusted Journal entries" I have made and make sure they are correct. My adjusted trial balance is off. I can not seem to find the problem.

Read ALL instructions before getting started! ABC Corporation is a new company that buys and sells office supplies. Business began on January 1, 2014. Given on the first two tabs are ABC's 12/31/14 Unadjusted Trial Balance and a list of needed adjustments. 1. Make all 16 adjustments on the "Adjusting Journal Entries" tab. Remember to include a description under each journal entry. 2. Post the adjustments to the general ledger on the "12-31-14 T-Accounts" tab. You may have to add T-Accounts for new accounts. Link your T-Account entries to your Journal Entries. PLEASE NOTE THAT THE "BB" (BEGINNING BALANCES) FOR THE T-ACCOUNTS REPRESENT THE UNADJUSTED BALANCES AS OF 12/31/14. 3. Once the 12/31/14 T-Accounts are complete, prepare the Adjusted Trial Balance. There may be some accounts with zero dollars, and you may have to insert lines for new accounts (some blank T-Accounts have already been provided for you). Link the Adjusted Trial Balance to your T-Accounts. 4. Use the Adjusted Trial Balance numbers to complete the Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows. For purposes of the Income Statement, prepare using the multiple step format and assume that Rent Revenue, any Unrealized Holding Gains/Losses, Interest Expense, Interest Revenue, and any other Gains/Losses are NOT part of the major central ongoing operations of the company. Link your financial statements to your Adjusted Trial Balance. Use the Income Statement and Balance Sheet to finish the partially completed Statement of Cash Flows. Since this is ABC's first year of operations, several line items on the Statement of Cash Flows have already been supplied to you. If necessary, review financial statement preparation in Chapters 4 and 5 of your textbook for a quick refresher. Plan on using your knowledge gained in completing Chapter 21 to help with the preparation of the Statement of Cash Flows. Additionally, since this is ABC Corporation's first year of operations, the adjusted trial balance for all current assets and liabilities represents the change during the year for Statement of Cash Flows analysis purposes. 5. When the Financial Statements are complete, make the closing entries on the "Closing Entries" tab being mindful of the four closing entries you've learned. 6. When closing entries have been made, post the entries to the general ledger on the "Post-Close T-Accounts" tab. Make sure your adjusting journal entries are also posted on your Post-Close T-Accounts. They will not automatically flow from tab-to-tab. Suggestion: As an alternative, after you've finished posting your adjusting journal entries to the accounts in the "12-31-14 T Accounts" tab, make a duplicate of this worksheet to use for posting your closing entries and then just relabel the tab as "Post-Close T-Accounts." Just be sure to delete the original "Post-Close T-Accounts" tab already in the workbook before you do this since you can't have two worksheets with the same name. 7. The final step is the Post-Closing Trial Balance, which will use the ending balances from the 12/31/14 T-Accounts after posting your closing entries. 8. Double-check your work. Here are a few things to check for: -Adjusted Trial Balance: Make sure debit column and credit column total to the same figure at the bottom. -Net income from the income statement will flow through to the Statement of Retained Earnings. -Ending Retained Earnings from the Statement of Retained Earnings will flow through to the Balance Sheet. -Ending Cash balance from the Balance Sheet should match your ending Cash balance on the Statement of Cash Flows. -The Post-Closing Trial Balance should not have any revenue, expense, gain, loss, or other temporary accounts. -Check figure 1: Income from operations = $204,236. -Check figure 2: Total Current Assets = $1,074,329. -Check figure 3: Total Liabilities & Stockholders' Equity = $1,593,851. -Check figure 4: Cash flow provided by operating activities = $115,785. -Check figure 5: Post close Trial Balance debit and credit columns total $1,672,010. -Check figure 6: Cash flow provided by financing activities $1,200,268. -Remember: Neatness matters in Financial Statements. Print or Print Preview before submitting to make sure your statements are neat. Otherwise, management may send back to you for revision! -Include your work at the bottom of each tab as needed. -Ask questions prior to the dayight before the due date. The due date is clearly indicated on the course schedule. -Utilize formulas and worksheet linkings in your financial statements to improve accuracy and save time in completing the assignment. -Please take advantage of Excel by using formulas to calculate groups of numbers (i.e. "Total Liabilities and Stockholders' Equity"). -DO NOT force any cells to match check figures given. Any adjustments in the T-Accounts or financial statements not supported by legitimate adjusting or closing entries will be considered financial statement misrepresentation sufficient to result in a failing grade. comments: This project is intended to make sure that you understand the accounting cycle as well as several key financial accounting transactions that you have during your Intermediate Accounting series. It is very important to take the necessary time on this project to master these concepts. The concepts mastered in this comprehensive problem will serve you well in the rest of your accounting curriculum. ABC Corporation Unadjusted Trial Balance December 31, 2014 Debit $ 575,232 167,000 200,200 Credit Cash Short term investments Fair value adjustment (Trading) Accounts receivable Allowance for doubtful accounts $ Inventory Purchases 350,000 Prepaid insurance 24,600 LT (Debt) investments (HTM) 177,824 Land 75,000 Building 150,000 Accumulated depreciation: building 4,000 Equipment 60,000 Accumulated depreciation: equipment 20,000 Patent 37,500 Accounts payable 75,240 Notes payable 235,000 Income taxes payable 63,800 Unearned rent revenue 36,000 Bonds Payable 800,000 Premium on Bonds Payable 61,771 Common stock 86,000 PIC In Excess of Par-Common Stock 13,000 Retained earnings Treasury stock 49,000 Dividends 41,000 Sales Revenue 802,845 Advertising expense 8,400 Wages expense 67,600 Office expense 21,700 Depreciation expense 24,000 Utilities expense 31,000 Insurance expense 73,800 Income taxes expense 63,800 ### ### 1 On March 1, ABC purchased a one-year liability insurance policy for $98,400. Upon purchase, the following journal entry was made: Dr Prepaid insurance 98,400 Cr Cash 98,400 The expired portion of insurance must be recorded as of 12/31/14. Notice that the expired portion from March through November has been recorded already. Make sure that the Prepaid Insurance balance after the adjusting entry is correct. 2 Depreciation expense must be recorded for the month of December. The building was purchased with cash on February 1, 2014 for $150,000 with a remaining usefu The method of depreciation for the building is straight-line. The equipment was purchased with cash on February 1, 2014 for $60,000 with a remaining usef The method of depreciation for the equipment is double-declining balance. Depreciation has been recorded for the building and equipment for months February through No 3 On December 1, XYZ Co. agreed to rent space in ABC's building for $12,000 per month, and XYZ paid ABC on December 1 in advance for the first three months' rent. The entry made on December 1 was as follows: Dr Cash 36,000 Cr Unearned rent revenue 36,000 The unearned revenue account must be adjusted to reflect the amount earned as of 12/31/14. 4 Per timecards, from the last payroll date through December 31, 2014, ABC's employees have wo Including payroll taxes, ABC's wage expense averages about $51 per hour. The next payroll date The liability for wages payable must be recorded as of 12/31/14. 5 On November 30, 2014, ABC borrowed $235,000 from American National Bank by issuing an int This loan is to be repaid in three months (on February 28, 2015), along with interest computed a The entry made on November 30 to record the borrowing was: (for Statement of Cash Flow purp Dr Cash 235,000 Cr Notes payable 235,000 On February 28, 2015 ABC must pay the bank the amount borrowed plus interest. Assume the beginning balance for Notes Payable is correct. Interest through 12/31/14 must be accrued on the $235,000 note. 6 ABC uses a periodic inventory system, and the ending inventory for each year is determined by t physical inventory at year-end. A physical count was taken on December 31, 2014, and the inve that time totaled $75,000, which reflects historical cost. Record the 2014 Cost of Goods Sold and the 12/31/14 Inventory adjustment. Additionally, ABC adheres to GAAP by recording ending inventory at the lower of cost and net re A review of inventory data further indicated that the current retail sales value of the ending inve completion and shipping is 15% of retail. Be sure to make an additional adjustment, if necessary using the Loss and Allowance methodology. For Income Statement presentation purposes, be su for adjustments of inventory to market value. 7 It would be unusual for a company to have an asset impairment in Year 1, but for the sake of this that their intangible asset might be impaired on December 31, 2014. Record the impairment if a The expected future net cash flows for this intangible asset totals $30,000, and the fair value of 8 On 7/1/14, ABC purchased 7,000 shares of its own stock from existing stockholders as treasury s stock was $7 per share, or $49,000 in total. The effects of this transaction are already shown in ABC reissued these 7,000 shares of treasury stock at $10 per share. Record the journal entry re 9 On 12/31/14, ABC issued 5,000 shares of $3 par value common stock at the closing market price to reflect the issuance of the stock on 12/31/14. 10 On 7/1/14, ABC sold 12% bonds having a maturity value of $800,000 for $861,771, resulting in a dated 7/1/14, and mature 7/1/19. Interest is payable semiannually on July 1 and January 1. ABC amortization for bond premium or discount. Record the adjusting entry for the accrual of intere Hint: Develop an abbreviated amortization schedule to accurately determine the interest expen 11 The following information is available for ABC Corporation at 12/31/14 regarding its investment Securities 2,200 shares of Toyota Corporation Common Stock 1,100 shares of G.M. Corporation Common Stock Cost ### $ 67,000 ### Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as trading. 12 On 1/1/14, ABC Corporation purchased, as a held-to-maturity investment, $200,000 of the 8%, 5 which provides an 11% return. Prepare ABC's 12/31/14 journal entry to reflect the receipt of an Assume the bond investment pays interest annually on 12/31 each year and that effective interes Note: Notice that a discount account is not used for this investment. Therefore, for purposes of investment account. 13 ABC Corporation prepares an aging schedule on 12/31/14 that estimates total uncollectible acco prepare the entry to record bad debt expense. 14 On 1/1/14, ABC Corporation signed a 5-year noncancelable lease for a delivery vehicle. The term annual payments of $10,503 at the beginning of each year, starting January 1, 2014. The deliver unguaranteed residual value. The delivery vehicle reverts back to the lessor at the end of the le of depreciation for the delivery vehicle. ABC Corporation's incremental borrowing rate is 10%, a been made concerning this lease arrangement. After determining the type of lease arrange entry for 2014 for ABC Corporation. (Hints: You will need to compute the present value of the m this lease transaction. Also, for Statement of Cash Flow purposes, the principal portion of lease 15 ABC Corporation provides a defined benefit pension plan for its employees. A combination adjus plan given the following items of information for the 2014 plan year, including the recording of p Note: Use the summary entry method as demonstrated and discussed in the chapter lectures on Pension asset/liability (January 1 $0 Actual return on plan assets $40,000 Expected return on plan assets $20,000 Contributions (funding) in 2014 $37,000 Fair value of plan assets (Decem $75,000 Settlement rate 10% Projected benefit obligation (Jan $0 Service cost $60,000 Benefits paid in 2014 $0 *For purposes of financial statement presentation, consider Pension Expense as an operating ite 16 On December 31, 2014, ABC Corporation issued 1,000 shares of restricted stock to its Chief Fin $10 per share on December 31, 2014. Additional information is as follows: a. The service period related to the restricted stock is 2 years. b. Vesting occurs if the CFO stays with the company for a two-year period. c. The par value of the common stock is $3 per share. Make the appropriate accounting entry as of the grant date, 12/31/14. Note: use the alternative Do this step after preparing the Income Statement except for the Income taxes line: (You need to 17 Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 1 However, for the purposes of this ABC illustration, we will assume that estimates are not paid, a on the return's March 15, 2015 due date. ABC's income tax rate is 40%. The entire year's income tax expense was estimated at the beginn so January through November income tax expense recognized amounts to $63,800 (11/12 month Since we are assuming estimates are not made during the year, the balance in Income taxes pay tax accrued for January through November. Assume no deferred tax assets or deferred tax liabil Based on the income before income taxes figure from the income statement, record December's so that the entire year's total tax expense is correct. $98,400. been recorded already. ntry is correct. 0,000 with a remaining useful life of 30 years and a salvage value of $6,000. 0,000 with a remaining useful life of 5 years and a salvage value of $3,000. eclining balance. months February through November. $12,000 per month, nths' rent. unt earned as of 12/31/14. 4, ABC's employees have worked a total of 250 hours. r hour. The next payroll date is January 5, 2015. tional Bank by issuing an interest-bearing note payable. ong with interest computed at an annual rate of 6%. Statement of Cash Flow purposes, consider a financing item) d plus interest. each year is determined by taking a complete mber 31, 2014, and the inventory on-hand at t the lower of cost and net realizable value at a total inventory level. ales value of the ending inventory is $110,000 and estimated costs of onal adjustment, if necessary, to properly value ending inventory presentation purposes, be sure to use the Loss Method for accounting ear 1, but for the sake of this example, ABC realized . Record the impairment if any. 30,000, and the fair value of the asset is $27,500. ng stockholders as treasury stock. The cost of the treasury saction are already shown in the unadjusted trial balance. On 12/31/14, Record the journal entry required for the reissuance of the treasury stock. k at the closing market price of $7 per share. Prepare ABC's journal entry 0 for $861,771, resulting in an effective yield of 10%. The bonds are on July 1 and January 1. ABC uses the effective interest method of ntry for the accrual of interest and the related amortization on 12/31/14. determine the interest expense. /14 regarding its investments in stocks of other companies. Fair Value ### $34,000 ### s are classified as trading. ment, $200,000 of the 8%, 5-year bonds of Intuit Corporation for $177,824, ry to reflect the receipt of annual interest and discount amortization. ear and that effective interest amortization is used. . Therefore, for purposes of this adjusting entry, amortize the discount directly to the mates total uncollectible accounts at $25,000. Assuming that the allowance method is used, r a delivery vehicle. The terms of the lease called for ABC to Corporation to make January 1, 2014. The delivery vehicle has an estimated useful life of 6 years and a $7,000 he lessor at the end of the lease term. ABC Corporation uses the straight-line method ntal borrowing rate is 10%, and the Lessor's implicit rate is unknown. No entries have yet ing the type of lease arrangement (capital or operating), prepare the necessary multiple-part journal ute the present value of the minimum lease payments and 4 separate sub-entries for he principal portion of lease payments are correctly categorized as a financing activity.) ployees. A combination adjusting entry should be made to correctly account for this type of pension including the recording of pension expense and the employer's contribution to the pension plan in 2014. ed in the chapter lectures on pension accounting to prepare the adjusting entry. Expense as an operating item and any resulting Pension Asset/Liability as long-term in nature. tricted stock to its Chief Financial Officer. ABC stock had a fair value (closing market price) of two-year period. 14. Note: use the alternative method as described in your textbook for deferred compensation. come taxes line: (You need to calculate Income Before Income Taxes in order to calcualte total Income Tax Exp pril 15, June 15, September 15, and December 15. hat estimates are not paid, and that the tax is paid in full e was estimated at the beginning of 2014 to be $69,600, nts to $63,800 (11/12 months). balance in Income taxes payable represents x assets or deferred tax liabilities. atement, record December's income tax expense d is used, s have yet ultiple-part journal is type of pension e pension plan in 2014. rm in nature. rket price) of ompensation. alcualte total Income Tax Expense) Adjusting Journal Entries 12/31/14 JE # Account Titles Debits 1 Insurance Expense Credits 8,200 Prepaid Insurance Recording for liability insurance for December 8,200 2 Depreciation Expense 2,400 Accumulated depreciation: building Accumulated depreciation: equipment Recording depreciation for building and equipment for December 3 Unearned rent revenue 400 2,000 12,000 Rent Revenue Recording earned rent revenue for December 12,000 4 Wages expense 12,750 Cash Recording of wages payable for December 12,750 5 Interest Expense 1,175 Interest Payable 1,175 Recording of Interest on loan 6 Inventory Cost of Goods Sold 75,000 275,000 Purchases 350,000 Recording of 2014 COGS 7 No Impairment recorded 8 Cash 70,000 Treasury Stock PIC In Excess of Par-Treasury Stock 49,000 21,000 Recording reissue of stock 9 Cash 35,000 Common stock PIC In Excess of Par-Common Stock Issue of 5,000 shares of common stock 10 Bonds Interest Expense Premium on Bonds Payable 15,000 20,000 43,089 4,911 Cash Interest accrual on Bonds Payable 11 Fair value adjustment (Trading) Unrealized gain on Securities Record the gain on securities 12 Cash Short term investments 48,000 8,000 8,000 16,000 3,561 Interest Revenue Amortize discount to investment account 13 Bad Debt Expense 19,561 25,000 Allowance for doubtful accounts 25,000 Record allowance for bad debt 14 Delivery Vehicle 39,815 Capital Lease Payable-Delivery Vehicle Record the initial lease transaction Capital Lease Payable-Delivery Vehicle 10,503 Cash Lease payment for Jan. 1, 2014 Capital Lease Interest Expense 2,540 Lease Interest Payable Record the interest for year 2014 15 Pension Expense Pension Asset/Liability 39,815 10,503 2,540 47,500 9,500 OCI- gain/loss Cash 16 Deferred Compensation 20,000 37,000 10,000 Common stock Paid in capital Record of restricted stock to CEO 3,000 7,000 Beginning balances (bb) on these T-accounts are the 12/31/14 unadjusted balances. Hint: If there is no beginning balance (bb), it is a new account. bb Cash 575,232 12,750 bb Accounts receivable 200,200 bb Inventory 75,000 bb Purchases 350,000 70,000 35,000 16,000 Prepaid insurance 24,600 Land bb 75,000 8,200 48,000 37,000 10,503 587,979 200,200 Short term investments bb bb 350,000 bb 167,000 3,561 75,000 Fair value adjustment (Trading) - Allowance for doubtful accounts 25,000 bb 8,000 16,400 LT (Debt) investments (HTM) bb 75,000 Bonds Payable Premium on Bonds Payable 800,000 bb 177,824 61,771 bb 4,911 800,000 170,561 bb 25,000 Building 150,000 Accumulated depreciation: building 4,000 bb bb 177,824 400 150,000 bb Patent 37,500 Accounts payable 75,240 bb 2,000 4,400 Notes payable 235,000 bb 56,860 Accumulated depreciation: equipment 20,000 bb Equipment 60,000 60,000 Income taxes payable 22,000 Unearned rent revenue 63,800 bb 37,500 Common stock 36,000 bb 75,240 Retained earnings 86,000 bb 12,000 - bb bb Dividends 41,000 PIC In Excess of Par-Common Stock 13,000 bb 15,000 20,000 235,000 63,800 Sales Revenue 802,845 bb bb Advertising expense 8,400 24,000 bb Wages expense 67,600 101,000 bb Office expense 21,700 bb 12,750 802,845 8,400 Insurance expense bb 73,800 8,200 82,000 Interest Expense 63,800 275,000 31,000 Interest Revenue 21,000 19,561 Unrealized gain on Securities 8,000 - Delivery Vehicle 19,561 12,000 Cost of Goods Sold 1,175 bb OCI- gain/loss Lease Interest Expense 39,815 39,815 - Capital Lease Payable-Delivery Vehicle 20,000 39,815 10,503 1,175 Bonds Interest Expense 1,175 Pension Expense 43,089 47,500 43,089 47,500 Treasury stock 49,000 49,000 26,400 PIC In Excess of Par-Treasury Stock 12,000 Interest Payable 1,175 21,700 Rent Revenue 63,800 - bb 33,000 Utilities expense 31,000 2,400 80,350 Income taxes expense bb 41,000 - Depreciation expense 24,000 275,000 Pension Asset/Liability 9,500 NOTE: When closing entries have been made, post the entries to the general ledger on the "Post-Close T-Accounts" tab. Make sure your adjusting journal entries are also posted on your Post-Close T-Accounts. They will not automatically flow from tab-to-tab. Suggestion: As an alternative, after you've finished posting your adjusting journal entries to the accounts in the "12-31-14 T Accounts" tab, make a duplicate of this worksheet to use for posting your closing entries and then just relabel the tab as "Post-Close T-Accounts." Just be sure to delete the original "Post-Close T-Accounts" tab already in the workbook before you do this since you can't have two worksheets with the same name. 8,000 29,312 ABC Corporation Adjusted Trial Balance December 31, 2014 Cash $ Short term investments Fair value adjustment (Trading) Accounts receivable Allowance for doubtful accounts Inventory Purchases Prepaid insurance LT (Debt) investments (HTM) Land Delivery vehicle Building Accumulated depreciation: building Equipment Accumulated depreciation: equipment Patent Accounts payable Notes payable Income taxes payable Unearned rent revenue Bonds Payable Premium on Bonds Payable Capital lease payable Common stock PIC In Excess of Par-Common Stock PCI In Excess of Par-Treasury stock Retained earnings Treasury stock Dividends Sales Revenue Rent revenue Interest revenue Unrealised gains securities Cost of goods sold Advertising expense Wages expense Office expense Depreciation expense Utilities expense Insurance expense Income taxes expense Bond interest expense Pension expense Debit 587,979 170,561 8,000 200,200 Credit 25,000 75,000 16,400 177,824 75,000 39,815 150,000 $ 4,400 60,000 22,000 37,500 75,240 235,000 63,800 24,000 800,000 56,860 29,312 101,000 33,000 41,000 802,845 12,000 19,561 8,000 275,000 8,400 80,350 21,700 26,400 31,000 82,000 63,800 43,089 47,500 2,277,518 2,353,018 ABC Corporation Income Statement For the Year Ended December 31, 2014 $ Sales Revenue Cost of goods sold Gross profit Operating expense Advertising expense Wages expense Office expense Depreciation expense Utilities expense Insurance expense $ ### ### ### 8,400.00 ### ### ### ### ### Operating Income Non operating income and expenses Rent revenue Interest revenue Unrealised gains securities Income taxes expense Bond interest expense Pension expense Net profit ### ### ### 8,000.00 ### ### ### ### ABC Corporation Statement of Retained Earnings For the Year Ended December 31, 2014 Balance Carried forward profit for the year Balance Brought down $ 163,167 163,167 ABC Corporation Balance Sheet For the Year Ended December 31, 2014 $ $ Fixed Assets Land Delivery vehicle Building Accumulated depreciation: building Equipment Accumulated depreciation: equipment LT (Debt) investments (HTM) Patent Current assets Cash Short term investments Fair value adjustment (Trading) Accounts receivable Less ='Adjusted Trial Balance'!A10 Inventory Prepaid insurance 75,000.00 39,815.00 150,000.00 4,400.00 60,000.00 22,000.00 177,824.00 37,500.00 566,539.00 587,979.00 170,561.00 8,000.00 200,200.00 25,000.00 75,000.00 16,400.00 ### Current liabilities Accounts payable Notes payable Income taxes payable Unearned rent revenue Net assets Financed by Long-term debt Bonds Payable Premium on Bonds Payable Capital lease payable Capital Common stock PIC In Excess of Par-Common Stock Dividends 75,240.00 235,000.00 63,800.00 24,000.00 398,040.00 ### 800,000.00 56,860.00 29,312.00 101,000.00 33,000.00 41,000.00 (4,400) ABC Corporation Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities Net income Add: Depreciation expense Add: Bad debt expense Add: Pension Underfunding Deduct: Amortization of bond premium (Issued bonds) Add: Unrealized holding G/L Add: loss on impairment Deduct: Amortization of HTM discount (Bond investment) CHANGES IN WORKING CAPITAL ACCOUNTS SHOULD BE LISTED HERE IN THE 8 ROWS HILITED IN YELLOW. AFTER YOU HAVE COMPLETED THIS SECTION, REMOVE THE YELLOW HILITING AND ITALICS FONT Cash flow provided by operating activities Cash flows from investing activities Purchase of property, plant, & equipment Investment in short term investments Purchase of Patent Investment in L-T bonds Cash flow used by investing activities Cash flows from financing activities Issuance of bonds Leased delivery vehicle payment-principal only Proceeds from bank note Payment of dividends Issuance of common stock for cash PIC-Treasury stock Cash flow provided by financing activities Net change in cash Beginning cash balance 1/1/14 Ending cash balance 12/31/14 163,167.45 26,400 25000 214,567 200,000 200,000 800,000 10,503 235,000 41,000 15,000 21,000 1,122,503 1,537,070 587,979 2,125,049 *Note: As indicated in the instructions, the Statement of Cash Flows has been partially populated to assist you preparation of this financial statement. Remember, since the beginning cash balance is zero, the ending cash b should also represent the total net change in cash. 12/31/14 JE # Closing Entries Account Titles Debits Credits Beginning balances (bb) on these T-accounts are the 12/31/14 unadjusted balances. Hint: If there is no beginning balance (bb), it is a new account. Cash bb Accounts receivable bb 575,232 575,232 200,200 Short term investments bb Inventory bb 200,200 - Fair value adjustment (Trading) bb 167,000 Purchases bb - 350,000 Allowance for doubtful accounts - bb - Prepaid insurance bb 350,000 24,600 LT (Debt) investments (HTM) bb Land bb 24,600 75,000 75,000 Bonds Payable Premium on Bonds Payable 800,000 bb 177,824 61,771 bb 800,000 167,000 bb - Accumulated depreciation: building Building 150,000 4,000 bb 150,000 bb 4,000 Notes payable 61,771 Accumulated depreciation: equipment Equipment 60,000 20,000 bb 60,000 Income taxes payable 63,800 bb 235,000 bb 177,824 bb 20,000 Unearned rent revenue 36,000 bb Patent 37,500 Accounts payable 75,240 bb 37,500 Common stock 86,000 bb 75,240 Retained earnings - bb bb Dividends 41,000 PIC In Excess of Par-Common Stock 13,000 bb 235,000 63,800 Sales Revenue 802,845 bb Advertising expense bb 802,845 73,800 - 73,800 8,400 8,400 Insurance expense bb 36,000 86,000 Wages expense bb 67,600 67,600 Office expense bb 21,700 21,700 Income taxes expense bb 63,800 - 63,800 NOTE: When closing entries have been made, post the entries to the general ledger on the "Post-Close T-Accounts" tab. Make sure your adjusting journal entries are also posted on your Post-Close T-Accounts. They will not automatically flow from tab-to-tab. Suggestion: As an alternative, after you've finished posting your adjusting journal entries to the accounts in the "12-31-14 T Accounts" tab, make a duplicate of this worksheet to use for posting your closing entries and then just relabel the tab as "Post-Close T-Accounts." Just be sure to delete the original "Post-Close T-Accounts" tab already in the workbook before you do this since you can't have two worksheets with the same name. 41,000 - Depreciation expense bb 24,000 24,000 13,000 Utilities expense bb 31,000 31,000 Treasury stock bb 49,000 49,000 ABC Corporation Post-Closing Trial Balance December 31, 2014 Debit Cash 587,979.00 Short term investments 170,561.00 Fair value adjustment (Trading) 8,000.00 Accounts receivable 200,200.00 Allowance for doubtful accounts Inventory 75,000.00 Purchases Prepaid insurance 16,400.00 LT (Debt) investments (HTM) 177,824.00 Land 75,000.00 Delivery vehicle 39,815.00 Building 150,000.00 Accumulated depreciation: building Equipment 60,000.00 Accumulated depreciation: equi Patent 37,500.00 Accounts payable Notes payable Income taxes payable Unearned rent revenue Bonds Payable Premium on Bonds Payable Capital lease payable Common stock PIC In Excess of Par-Common Stock PCI In Excess of Par-Treasury stock Retained earnings Treasury stock Dividends Sales Revenue Rent revenue Interest revenue Unrealised gains securities Cost of goods sold 275,000.00 Advertising expense 8,400.00 Credit 25,000.00 4,400.00 22,000.00 75,240.00 235,000.00 63,800.00 24,000.00 800,000.00 56,860.00 29,312.00 101,000.00 33,000.00 163,167.45 41,000.00 802,845.00 12,000.00 19,561.00 8,000.00 TOTAL POINTS EARNED 0 0 0 0 0 TOTAL SCORE (MAX 400 POINTS) Instructor Comments: 0