I need help! Can you please help me with the journal entries.

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Pretend it is January 2021 and you have just been hired as the Controller for Water King, Inc. (WKI), a corporation that began as a retailer of personal watercraft (Jet Ski and similar brands). WKI has just finished an eventful year in which it launched a new parts and repair service and a new training program. During 2019, WKI also entered into a venture in which it constructs docking facilities (marinas). Your predecessor left the firm in a hurry. Your primary responsibility is to finish the 2020 year- end financial statements. Specifically, you must complete: 1) any necessary correcting journal entries 2) all the adjusting journal entries 3) the trial balances (note: columns L-P are provided so you can break out the continuing and discontinued operations, as described in item g, below .... remember, they both need to balance!) 4) the closing journal entries 5) a complete multi-step Income Statement for the year ended Dec. 31, 2020 6) a classified Balance Sheet as of December 31, 2020 You, of course, will include supporting documentation. For each issue, you must provide: A brief description of the issue and your action that is, identify whether: 1) if an incorrect entry was made, what was the incorrect entry, why was it incorrect, and how did you correct it; or 2) if a normal adjusting entry is needed, why the adjustment is needed; or state that no change or adjustment is needed An example of a description might be: "The adjustment for the allowance for sales returns omitted the existing balance in the refund liability account so I subtracted this amount from the estimated allowance needed; I reversed the incorrect adjusting entry, then applied the correct adjusting entry. Detailed calculations to support any values you use in your journal entries The 2019 annual Income Statement and Balance Sheet are provided in the spreadsheet. On the Balance Sheet, the 2019 column is broken out into continuing and discontinued amounts to help you prepare the prior year column of the 2020 Balance Sheet. Notice that WKI reports in thousands of dollars, with one decimal place. You should continue this in 2020. In addition, the Unadjusted Trial Balance for 2020 has been prepared. You do not need to round intermediate calculations, but you should round all journal entries to whole dollars. The following information was gathered to help you in preparing any necessary journal entries. Good luck! All amounts are in $Thousands 2019 2018 Current Assets Cash Accounts receivable, net Inventory Construction contract asset Total Current Assets $3,616.6 939.6 3,230.0 15.0 7,801.2 $2,767.0 719.0 2,471.0 0.0 5,957.0 2019 Continuing Discontinued $3,591.0 $25.6 822.6 117.0 3,230.0 0.0 0.0 15.0 7,643.6 157.6 Property, Plant & Equipment, net Total Assets 5,508.0 $13,309.2 4,214.0 $10,171.0 5,323.3 $12,966.9 184.7 $342.3 Current Liabilities Accounts payable Income tax payable Total Current Liabilities $193.8 132.7 326.5 148.0 102.0 250.0 $165.2 101.0 266.3 $28.6 31.7 60.3 0.0 Common stock Retained earnings Total Liabilities and Equity 2,250.0 10,732.7 $13,309.2 2,250.0 7,671.0 $10,171.0 2,250.0 10,450.7 $12,966.9 282.0 $342.3 2019 2018 2017 Sales Revenue, net Cost of goods sold Gross profit on sales $ 10,625.2 $ 7,555.2 3,070.0 9,137.7 $ 6,497.5 2,640.2 6,761.9 4,808.1 1,953.8 -- 600.0 468.0 132.0 Construction revenue Construction expense Gross profit on construction General and admin. expense Depreciation expense Bad debt expense 1,834.8 918.0 6.8 1,577.9 789.5 5.9 1,167.7 584.2 4.3 Income before income tax Income tax expense 442.4 106.2 266.9 64.1 197.5 69.1 Net income $ 336.2 $ 202.9 $ 128.4 Earnings per share #REF! #REF! $0.71 No. of shares (in thousands) #REF! #REF! 180 i Adjusting Journal Entries Debit Credit Adjusted Trial Bal. 12/31 Debit Credit Continuing 12/31 Debit Credit Discontinued 12/31 Debit Credit Closing Journal Entries Debit Credit Final Trial Balance 12/31 Debit Credit Slowance for Bad Debt Purchases Accumulated Depreciation Water King, Inc Accounts Cash Lash Accounts Receivable Inventory Construction in Progress Billings on Property, Plant & Equipment operty, Plan Unadj. Trial Bal. 12/31/2020 Debit Credit 10,274,073 1,281,200 10,250 3,230,000 8,993,995 1,554,720 1 2,028,000 plings on Contract 8,640,000 4,968,000 539,640 Unearned Rev. - Current peamico Rev. Accounts Payable nterest Payable ncome Tax Payable Page 1 33,180 Page 3 Page 5 Page 7 Unearned Rev.- Noncurrent Service camere Unearned Rev.- Noncurrent Bonus Notes Payable 2,000,000 3,460,000 10,396,458 13,491,400 Betained Earnings 188,900 2.046,400 4,400,000 Revenue Common Stock come Retained Product Sales Revenue Sales Returns Let Ski Training Revenue Repair Parts Revenue Repair Service Construction Revenue Cost of Good Sold Cost of Jet Ski Training Cost of Repair Parts Construction Expense General and Admin Expense Depreciation Expense Bad Debt Expense Interest Expense Income Tax Expense 1,739,440 -2,640,000 3,103,000 1,728,000 Page 2 Page 4 Page 6 Page 8 TOTAL 43,373,328 43,373,328 Pretend it is January 2021 and you have just been hired as the Controller for Water King, Inc. (WKI), a corporation that began as a retailer of personal watercraft (Jet Ski and similar brands). WKI has just finished an eventful year in which it launched a new parts and repair service and a new training program. During 2019, WKI also entered into a venture in which it constructs docking facilities (marinas). Your predecessor left the firm in a hurry. Your primary responsibility is to finish the 2020 year- end financial statements. Specifically, you must complete: 1) any necessary correcting journal entries 2) all the adjusting journal entries 3) the trial balances (note: columns L-P are provided so you can break out the continuing and discontinued operations, as described in item g, below .... remember, they both need to balance!) 4) the closing journal entries 5) a complete multi-step Income Statement for the year ended Dec. 31, 2020 6) a classified Balance Sheet as of December 31, 2020 You, of course, will include supporting documentation. For each issue, you must provide: A brief description of the issue and your action that is, identify whether: 1) if an incorrect entry was made, what was the incorrect entry, why was it incorrect, and how did you correct it; or 2) if a normal adjusting entry is needed, why the adjustment is needed; or state that no change or adjustment is needed An example of a description might be: "The adjustment for the allowance for sales returns omitted the existing balance in the refund liability account so I subtracted this amount from the estimated allowance needed; I reversed the incorrect adjusting entry, then applied the correct adjusting entry. Detailed calculations to support any values you use in your journal entries The 2019 annual Income Statement and Balance Sheet are provided in the spreadsheet. On the Balance Sheet, the 2019 column is broken out into continuing and discontinued amounts to help you prepare the prior year column of the 2020 Balance Sheet. Notice that WKI reports in thousands of dollars, with one decimal place. You should continue this in 2020. In addition, the Unadjusted Trial Balance for 2020 has been prepared. You do not need to round intermediate calculations, but you should round all journal entries to whole dollars. The following information was gathered to help you in preparing any necessary journal entries. Good luck! All amounts are in $Thousands 2019 2018 Current Assets Cash Accounts receivable, net Inventory Construction contract asset Total Current Assets $3,616.6 939.6 3,230.0 15.0 7,801.2 $2,767.0 719.0 2,471.0 0.0 5,957.0 2019 Continuing Discontinued $3,591.0 $25.6 822.6 117.0 3,230.0 0.0 0.0 15.0 7,643.6 157.6 Property, Plant & Equipment, net Total Assets 5,508.0 $13,309.2 4,214.0 $10,171.0 5,323.3 $12,966.9 184.7 $342.3 Current Liabilities Accounts payable Income tax payable Total Current Liabilities $193.8 132.7 326.5 148.0 102.0 250.0 $165.2 101.0 266.3 $28.6 31.7 60.3 0.0 Common stock Retained earnings Total Liabilities and Equity 2,250.0 10,732.7 $13,309.2 2,250.0 7,671.0 $10,171.0 2,250.0 10,450.7 $12,966.9 282.0 $342.3 2019 2018 2017 Sales Revenue, net Cost of goods sold Gross profit on sales $ 10,625.2 $ 7,555.2 3,070.0 9,137.7 $ 6,497.5 2,640.2 6,761.9 4,808.1 1,953.8 -- 600.0 468.0 132.0 Construction revenue Construction expense Gross profit on construction General and admin. expense Depreciation expense Bad debt expense 1,834.8 918.0 6.8 1,577.9 789.5 5.9 1,167.7 584.2 4.3 Income before income tax Income tax expense 442.4 106.2 266.9 64.1 197.5 69.1 Net income $ 336.2 $ 202.9 $ 128.4 Earnings per share #REF! #REF! $0.71 No. of shares (in thousands) #REF! #REF! 180 i Adjusting Journal Entries Debit Credit Adjusted Trial Bal. 12/31 Debit Credit Continuing 12/31 Debit Credit Discontinued 12/31 Debit Credit Closing Journal Entries Debit Credit Final Trial Balance 12/31 Debit Credit Slowance for Bad Debt Purchases Accumulated Depreciation Water King, Inc Accounts Cash Lash Accounts Receivable Inventory Construction in Progress Billings on Property, Plant & Equipment operty, Plan Unadj. Trial Bal. 12/31/2020 Debit Credit 10,274,073 1,281,200 10,250 3,230,000 8,993,995 1,554,720 1 2,028,000 plings on Contract 8,640,000 4,968,000 539,640 Unearned Rev. - Current peamico Rev. Accounts Payable nterest Payable ncome Tax Payable Page 1 33,180 Page 3 Page 5 Page 7 Unearned Rev.- Noncurrent Service camere Unearned Rev.- Noncurrent Bonus Notes Payable 2,000,000 3,460,000 10,396,458 13,491,400 Betained Earnings 188,900 2.046,400 4,400,000 Revenue Common Stock come Retained Product Sales Revenue Sales Returns Let Ski Training Revenue Repair Parts Revenue Repair Service Construction Revenue Cost of Good Sold Cost of Jet Ski Training Cost of Repair Parts Construction Expense General and Admin Expense Depreciation Expense Bad Debt Expense Interest Expense Income Tax Expense 1,739,440 -2,640,000 3,103,000 1,728,000 Page 2 Page 4 Page 6 Page 8 TOTAL 43,373,328 43,373,328