i Journalize and post transactions from the month of May 2a 2b Complete the worksheet Journalize and post the adjusting entries 3 Prepare an income statement 4 Prepare a statement of stockholders 5 Prepare a balance sheet 6 Prepare a statement of cash flows using the indirect method 7 Journalize and post the closing entries 8 Prepare a post-closing trial balance equity low: ns May 1 Borrow $50,000 from Captive Credit Corporation. The installment note bears interest at 7% annually and matures in five years. Payments of $990 are required at the end of each month for 60 months 4 Purchase equipment for $30,000. The company estimates a residual value of $0 and a four-year service life. 7 Purchase additional inventory on account, $82,900. 9 Pay cash on accounts payable, $79,500. 12 Issue an additional 2,000 shares of $1 par value common stock for $40,000. 12 Sold gift cards totaling S18,000. The cards are redeemable for merchandise within one year of the purchase date 15 Purchase additional supplies on account, S4.900. 14 Provide services to customers for cash, $19,100 16 Pay cash for salaries, $59,500. 25 Receive $125,400 from customers on accounts receivable. 26 Repurchase 1,000 shares of treasury stock for $18 per share. 27 Write off accounts receivable as uncollectible, $2,800 31 Received bill for May utilities, $16,500 31 Firework sales for May total $220,000. All of these sales are on account. The cost of the units sold is $135,000. 31 Pay the first monthly installment of $990 related to the $50,000 borrowed on May 1. Round your interest calculation to the nearest dollar 0 W: on on the building for the month of May is calculated using the straight-line method. At the time the building ue of $20,000. Depreciation on the was purchased, the company estimated a service life of 29 years and a residual val uipment is calculated using the double-declining balance method with a four-year service live and no residual value. At the end of May, $11,800 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. Unpaid salaries at the end of May are $43,100. By the end of May, $2,000 of the gift cards sold on May 12 have been redeemed. The revenue from the gift cards is considered service revenue. A count of the supplies on hand at the end of May shows a total of $7,000 Accrue the interest revenue on notes receivable for May c. d. e. f. Practice Firew For the month ended May 31, 2017 INCOME STATEMENT BALANCE SHEET ADIUSTED TRIAL BALANCE DEBIT TRIAL BALANCE ADJUSTMENTS DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT CREDIT 128,510.00 Accounts ance for Uncollectible Accounts 2.200.00 8,500.00 87.900.00 12,000 Supplies ventory Notes Receivable (5%, 6-month note) 150.00 368,000.00 10 Accumulated Depreclation, Build 1 Equipment 37,000.00 0,000.00 13 Accounts Payable 14 Notes Payable 15 Deferred Revenue 16 Salarles Payable Income Tax P 104,30000 49,302.00 18,000.00 18 Common 50,000.00 470,000.00 201,250.00 $1 Additional Paid in Capital 20 Retained Earnings reasury Stock 22 Serivce Revenue 18,000.00 19,100.00 23 Sales Revenue 24 Cost of Goods Sold 000.00 2S interest income 59,500,00 upplies Expense 28 Utilities Expense 16,500.00 Depreciation Expense, Building 80 Deprecation Expense, Equipment 31 32 Bad Debt E 292.00 Interest Expense Tax 1,171,152.0 1,171,152.00 Net income/ Loss Income Statement Practice Fireworks Income Statement For the month ended May 31, 2017 Revenue ervice Revenue Sales Revenue Cost of Goods Sold Gross Profit Salary Expense Supplies Expense Utilities Expense Depreciation Expense, Building Depreciation Expense, Equipment Bad Debt Expense Total Operating Expenses Operating Loss Non-Operating Revenues (Expenses) Interest Income Interest Expense Income Tax Expense Net Income (Loss) before Income Taxes Net Income (Loss) Statement of Stockholder Equity Practice Fireworks Statement of Stockholders' Equity For the month ended May 31, 2017 Common Stock Retained AdditionalKeStock Total Equity Treasury Paid-in Capital Earnings Stockholders' Equity, May 1,2017 Issued Common Stock Purchases Treasury Stock Net Income (loss) Stockholders' Equity, May 3, 2017 Cash Flow Statement Practice Fireworks Statement of Cash Flows For the Month ended May 31, 2017 Cash flows from Operating Activities Net Loss Adjustments to reconcile net income to net cash flows from operating activities Depreciation Expense Increase in accounts receivable Increase in Supplies Decrease in inventory Increase in Interest Receivable Increase in Accounts Payable Increase in deferred revenue Increase in salaries payable Net Cash flows from operating activities Cash flows from investing activities Purchase of equipment Net cash flows from investing activities Cash flows from financing activities Issuance of common stock Purchase of treasury stock Increase in notes payable Payment on notes payable Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period Balance Sheet Practice Fireworks Balance Sheet May 31, 2017 Assets Current Assets Cash Accounts Receivable Less Allowance for Uncollectible Accounts Notes Receivable Interest Receivable Supplies Invent ory Total Current Assets Long term Assets Land Building Accumulated Depreciation, Building Eguipment Accumulated Depreciation, Equipment Total Long Term Assets Total Assets Liabilities Current Liabilities Accounts Payable Salaries Payable Deferred Revenue Total Current Liabilities Long Term Liabilities Notes Payable Total Liabilities Stockholders' Equity Common Stock Additional Paid-In Capital Total Paid-in Capital Retained Earnings Less Treasury Stock Total Stockholders' Equity Total Stockholders' Equity and Liabilities Post-Closing Trial Balance Practice Fireworks Post-Closing Trial Balance May 31, 2017 Debit Credit Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies nvento Notes Receivable Interst Receivable land Building Accumulated Depreciation, Building Equipment Accumulated Depreciation, Equipment Accounts Payable Notes Payable Deferred Revenue alaries Payable Common Stock, $1 par Additional Paid-in Capital Retained Earnings Treasury Stock Post-Closing Trial Balance