I have completed the assessment and just want to double check all entries please fill in the appropriate cells in the attached.

Comprehensive Problem

Patricia Allison began an engineering consulting business on January 1, 2011, organized as a corporation (PA Engineering, Inc.) under the laws of Delaware. The annual reporting period ends December 31, 2011. The trial balance on January 1, 2012, is provided in the following table:

PA Engineering Trial Balance, January 1, 2012

Cash- Debit $10,000

Office Supplies- Debit $20,000

Computers- Debit- $80,000

MIsc Assets- Debit $5,000

Contributed Capital- $115,000

Debits- 115,000

Credits- 115,000

Transactions during 2012 are as follows:

• a. Borrowed $20,000 cash on a five-year, 10 percent note payable, dated July 1, 2012.
• b. Purchased land for a future building site; paid cash, $10,000.
• c. Earned $200,000 in revenues for 2012, including $60,000 on credit and the rest in cash.
• d. Sold 4,000 additional shares of capital stock for cash at $1.15 market value per share on January 3, 2012.
• e. Incurred $120,000 in remaining expenses for 2012, including $20,000 on credit and the rest paid in cash.
• f. Collected accounts receivable, $40,000.
• g. Purchased other assets for $8,000 cash.
• h. Paid accounts payable, $18,000.
• i. Purchased office supplies on account for future use, $25,000.
• j. Signed a three-year, $33,000 service contract to start February 1, 2013.
• k. Declared and paid cash dividends, $10,000.

Data for adjusting entries:

• l. Supplies counted on December 31, 2012, $18,000.
• m. Depreciation for the year on the equipment, $21,000.
• n. Interest accrued on notes payable (to be computed).
• o. Wages earned by employees since the December 24 payroll but not yet paid, $15,000.
• p. Income tax expense, $10,000, payable in 2013.

Complete the following for this problem:

1. Set up T-accounts for the accounts on the trial balance and enter beginning balances.
2. Prepare journal entries for transactions (a) through (k) and post them to the T-accounts.
3. Journal and post the adjusting entries (l) through (p).
4. Prepare an income statement (including earnings per share), statement of stockholders' equity, balance sheet, and statement of cash flows.
5. Journal closing entries.
6. Compute the following ratios for 2012 and explain what the results suggest about the company.Current ratio. (Industry average is 2.2 to 1.0.)
7. Total asset turnover. (Industry average is 3 times a year.)
8. Net profit margin. (Industry average is 5.00%.)

Worksheet 1 of 9. Template for requirement 1: Set up T-accounts for the accounts on the trial balance and enter beginning balances. Learner: PA Engineering, Inc. Cash Accounts Receivable B. Bal - - Computers B. Bal Land Accounts Payable Interest Payable - Income Tax Payable Salaries and Wages Payable Contributed Capital 115,000.00 B. Bal Accumulated Depreciation 115,000.00 Dividends Declared Remaining Expenses Service Revenue Interest Expense Retained Earnings - End of worksheet Prepaid Office Supplies B. Bal - B. Bal Miscellaneous Other Assets 5,000.00 5,000.00 Notes Payable Supplies Expense Wages Expense Depreciation Expense Income Tax Expense - Worksheet 2 of 9. Template for requirements 2 and 3, journal entries: Prepare journal entries for transactions (a) through (k) in columns A through D. Journal the adjusting entries (l) through (p) in columns G through I. Learner: PA Engineering, Inc. a. Transactions during 2012 Debit is always first and credit is indented Cash Note Payable Borrowed cash b. Land Cash Purchased land c. Cash Accounts Receviable Service Revenue Earned revenues for 2012 d. Cash Contributed Capital (4,000 shares @1.15 - market value) e. Remaining Expenses Cash Accounts Payable Incurred remaining expenses f. Cash Accounts Receivable Collected on Accounts Receivable g. Other Assets Cash Purchased other assets h. Accounts Payable Cash Paid accounts payable i. Prepaid Office Supplies Accounts Payable DR CR Purchased office supplies j. No entry contract only k. Dividends Declared Cash Declared and paid cash dividends Debits must equal Credits End of worksheet - - Adjusting entries l. Supplies expense Prepaid Office Supplies (20000+25000-18000) m. Depreciation expense Accumulated depreciation n. Interest expense Accrued Interest payable ($20,000 x .1 x (6/12)) o. Wages expense Salaries and Wages payable p. Income tax expense Income tax payable Debits must equal Credits DR CR - - Worksheet 3 of 9. Template for requirements 2 and 3, T-accounts: Post transactions (a) through (k) and adjusting entries (l) through (p) to the T-accounts. Learner: PA Engineering, Inc. Cash B. Bal (a) (c ) (d) (f) (b) (e) (g) (h) (k) - ( c) 60,000.00 20,000.00 40,000.00 B. Bal (b) Accounts Receivable 60,000.00 40,000.00 (f) Computers 80,000.00 Land 10,000.00 Accounts Payable (h) Interest Payable 1,000.00 (n) - (e) 25,000.00 (i) 25,000.00 25,000.00 Income Tax Payable 10,000.00 (p) Salaries and Wages Payable Contributed Capital Accumulated Depreicaiton (o) B. Bal (d) (m) Dividends Declared Service Revenue (k) ( c) Remaining Expenses (e) Interest Expense (n) Retained Earnings End of worksheet Prepaid Office Supplies B. Bal (i) (l) - B. Bal (g) - Miscellaneous Other Assets 5,000.00 5,000.00 Notes Payable (a) Supplies Expense (l) Wages Expense (o) Depreciation Expense (m) Income Tax Expense (p) Worksheet 4 of 9. Template for requirement 4: Prepare an income statement (including earnings per share). Learner: PA Engineering, Inc. Income Statement For the Year Ended December 31, 2012 Service Revenue Less: Expenses Depreciation expense Supplies expense Wages expense Interest expense Remaining expense Total expense Net Income before taxes Less: Income Taxes Net Income End of worksheet $ - Worksheet 5 of 9. Template for requirement 4: Prepare a statement of stockholders' equity. Learner: PA Engineering, Inc. Statement of Stockholder's Equity For the Year Ended December 31, 2012 Contributed Capital: December 31, 2011, 100,000 shares Add: January 3, 2012 issue of 4,000 shares Total Contributed Capital at December 31, 2012 - Retained Earnings: Balance December 31, 2011 Add: Net Income Less Dividends Balance December 31, 2012 Total Stockholder's Equity - $ End of worksheet Worksheet 6 of 9. Template for requirement 4: Prepare a balance sheet. Learner: PA Engineering, Inc. Balance Sheet At December 31, 2012 Assets Current Assets Cash Accounts Receivable Prepaid Office Supplies Total Current Assets - Long-Term Assets Land Computers Less: Accumulated Depreciation (enter as -) Miscellaneous Other Assets Total Long-Term Assets - Total Assets $ End of worksheet - Liabilities Current Liabilities Accounts Payable Salaries and Wages Payable Interest Payable Income Tax Payable Total Current Liabilities - Long-Term Notes Payable Contributed Capital Retained Earnings - Total Liabilities and Owners' Equity $ - Worksheet 7 of 9. Template for requirement 4: Prepare a statement of cash flows. Learner: PA Engineering, Inc. Statement of Cash Flows For the Year Ending December 2012 Cash flows from operating activities Cash collected from customers Cash paid to suppliers Cash paid for remaining expenses Net cash flows from operating activities Cash flows from investing activities Cash paid for land Cash paid for other assets Net cash flows from investing activities Cash flows from financing activities Cash received from issuing stock to owners Cash received from note payable Cash paid for dividends Net cash flows from financing activities Net increase in cash during the month Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 Ending Cash balance should agree to Balance Sheet balance of $68,600. If agrees to Balance Sheet, next cell will be zero. End of worksheet 0 0 0 0 0 $ - Worksheet 8 of 9. Template for requirement 5: Journal closing entries. Learner: PA Engineering, Inc. Closing Entries DR CR Service Revenue Income Summary Income Summary Depreciation Expense Supplies Expense Wages Expense Interest Expense Income Tax Expense Remaining Expense Income Summary Retained Earnings Retained Earnings Dividends Declared Debits must equal credits End of worksheet - Worksheet 9 of 9. Template for requirement 6: Compute the current ratio, asset turnover, and net profit margin for 2012 and explain what the results suggest about PA Engineering, Inc. Learner: Ratios Current Ratio = Current Assets Current Liabilities Current Assets Current Liabilities Current ratio results compared to industry average (2.2 to 1.0): Asset Turnover = Sales Assets Sales Assets Asset turnover results compared to industry average (3 times per year): Net Profit Margin = Net Income Sales Net Income Sales Net profit margin results compared to industry average (%5.00): End of worksheet = #DIV/0! = #DIV/0! = #DIV/0