i need help filling out the balance sheet (last two pictures). i provided all prior work
FNM 099 8 NIXON 1 ACME Distribution, Inc. 2 December 31, 2021 3 Selected Transactions 4 5 Read through the information below for selected transactions during the month of December, 2021 and prepare the required jounal entry to record the transaction. Posteach of the entries below to the general 6 ledger T-accounts attached. 7 On December 5, ACME purchased $60,000 of merchandise on account from Indiana Corp terms 2/10 8) n/30 9 10 Date Account description Debit Credit 11 12/5/21 merchandise inventory 60.000 12 accounts payable $ 60.000 13 Sold Merchandise for $5,000 to Lee Corp on account on December 7. Cost of the merchandise was 14 $3,390 and the terms of the sale were 2/15 n/30 16 Date Account description Dabit Credit 17 121121 accounts clavabo S 5.000 18 sales $ 5.000 19 cost og goods sold 3390 20 merchandise inventory 5 3390 On December 14 ACME wrote a check to diana.com purchase made on December 5 to take 22) advantage of the purchase discouat. 24 Date Account description Debit Cudit 25 12/1471 accounts payable $ 60.000 26 merchandise inventory $ 1200 27 cash $ 58.800 28 On December 14, Lee Corp requested credit for $500 of defective merchandise included in their December 7 purchase. We granted them an allowance and they disposed of the defective 29.) merchandise at our request 30 31 Date Account description Credit 32 12/14/21 sales retums & allowance $ 33 accountsmclavable 34 5 500 35) Lee Corp paid their balance due taking the sales discount offered on December 19 Date Account description 38 12/1121 cash $ 4410 39 sale di 5 SO 40 Lac.com 4500 41 42 43 44 December 20 ACME 50 shams of 10 master for Pagent xx OR$ % 89 88 X 488 December 20 ACME issued 50 shares of $10 par stock for $40 per share for cash. Prepare the 45 ) adjustment to record the issuance of stock below. 40 47 Date Account description Debit Credit 48 12/20/21 cash $ 2.000) 49 common stock s 500 50 additional paid in capital $ 1.500 51 527) ACME purchased supplies for $1,850 cash on December 21. 33 54 Date Account description Debit Credit 55 12/21/21 supplies 1,850 56 cash $ 1.850 57 On December 21 ACME received $2,500 in cash as an advance payment for merchandise to be 588) delivered next month. 3 60 Date Account description 61 12/21/21 cash 2.500 62 uneamed revenue 2.500 63 64 ) On December 23 ACME paid in cash the December utility bill of $1,950 03 66 Date Account description Debit Credit 67 12/23/21 utilitokense 1,950 68 cash 69 1950 Page 2 mu On December 23, 2021 the board of directors declared a dividend of $4.50 per share on its 170 issued and outstanding shares to shareholders of record on January 16, 2022 and payable on February 16, 2022. (Note that the company uses a dividends general ledger account to record its dividend payments during the year rather than recording the dividends directly to retained eamings. Be sure to use that 70 10) account) 72 Date Account description Debit Credit 73 12/23/21 dividends $ 785 74 dividends payable $ 766 75 On December 28 ACME paid their employees 54,250 for the pay period ending December 23. The 7611) salary expense has already been accrued into salanes payable 78 Date Account description Debit 79 12/28/20 salaries povable $ 4.250 80 cash $ 4.250 81 F 82 1 2 3 4 ACME Distribution, Inc. December 31, 2021 General Ledger T-accounts Cash Accounts receivable 5 Allowance for bad debts 130 6 Beginning balance 103,212 4,410 42,400 5,000 7 8 58.800 4,500 500 9 1,500 1,850 2.500 10 11 12 13 1,950 4.250 Ending balance 44,772 42,400 14 130 Supplies 145 Prepaid insurance 18,000 Beginning balance Inventory 25,558 60,00 1.200 Page 1 Ending balance 83,368 18,000 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Prepaid rent 2,600 Office equipment 35,000 Accum. Depr.- Office equip 11,500 Beginning balance Ending balance 2,600 35.000 11,500 Accum. Depe-Whse equip Warehouse equipment 80,000 31 Beginning balance 24,000 1 1 32 33 34 35 tems 36 Ending balance 80.000 24.000 38 39 40 Beginning balance Accounts payable 14,200 60,000 60,000 Bond payable 75.000 Salarias payable 4.250 4.250 41 44 Ending balance 14,200 75.000 45 45 47 Interest Payable Dividends payable Uneamed revenue Beginning balance 785 2.500 51 Ending balance 705 2.500 Page 2 54 55 Beginning balance Common stock 1,200 500 Additional paldina 900 1,500 Retained wings 162.410 57 50 Ending balance 1.700 2.600 162.410 50 60 61 Beginning balance Dividende 24,000 785 64 65 66 tems 67 Ending balance 24.705 Sales Beginning balance 720,300 5.000 Sales discounts 1.885 90 Sales retums & allowance 280 500 70 21 72 73 14 Encing balance 734,300 1.975 780 75 76 Beginning balance Cost of goods sold 512.310 3,300 Depr. exp. Offce equip 3.500 Dept. Exp. Wheu 8.000 00 Ending balance 535.700 1300 0.000 Badebt expense Beginning balance Salaries expense 1.400 Insurance expense 14.500 Page 3 Ending balance 100 61.400 14.500 90 Rant expense 26.000 Interest expense Beginning balance Advertising expens 22,700 Ending balance 28.600 22.700 91 92 93 94 95 96 97 tems 98 99 100 101 102 103 les expense Beginning balance 18.000 1.960 Ending balance 10,950 B20 JX 7 days x 900=6300 A B D E F F G 1 2 3 4 5 ACME Distribution, Inc. December 31, 2021 Adjusting Entries Read through each situation below and on the following pages. After completing any necessary calculations prepare the required adjusting journal entry. When preparing the adjusting journal entries, use the account titles from the trial balance or the general ledger. Post each of the entries below to the trial balance and calculate the adjusted account balances. 6 00 8 1) A one year insurance policy was purchased on Oct. 31 for a premium of $15,000. In the space below show your calculations to receive full credit. Complete the required year- end (December 31, 2021) adjusting entry below. 9 15000/12x2=2500 10 11 12 Account description Debit Credit 13 $ Insurance expense prepaid insurance 2,500 $ 14 15 16 2,500 Oh U Post the above entry to the trial balance in the adjustment columns 17 18 CO 2) The company's employees are paid weekly and it is open for business Monday through Friday each week. The employees have been paid through Friday December 24. The total payroll for all employees equals $900 per day and they are paid for all holidays. In the space below show your calculation of the amount due to receive full credit. Record the adjustment to accrue the salary expense through December 31 (ignore the effect of any related payroll taxes), 19 18 2) The company's employees are paid weekly and it is open for business Monday through Friday each week. The employees have been paid through Friday December 24. The total payroll for all employees equals $900 per day and they are paid for all holidays. In the space below show your calculation of the amount due to receive full credit. Record the adjustment to accrue the salary expense through December 31 (ignore the effect of any related payroll taxes). 19 7 days x 900=6300 20 21 22 Debit Credit 23 Account description salaries expense salaries payable $ 6,300 6,300 NNNNN o No un A 24 25 26 27 28 29 Post the above entry to the trial balance in the adjustment columns. F G H 1 ACME Distribution, Inc. 2 December 31, 2021 3 Adjusting Entries Continued 4 5 3) The company takes a physical inventory count at the end of the year and adjusts their inventory and cost of goods sold if there is a difference between the inventory value determined from the actual count compared to the value in the general ledger. The information below includes the number of units counted in inventory at the end of the year and the purchases of inventory during the month. 6 NOONM Number of units held in the company's inventory at 12/31/2021 based on a count of the inventory was 18,719 units. A listing of purchases during the month of December are as follows: 10 11 12 13 14 15 16 Unit Cost Date December 5, 2021 December 14, 2021 December 21, 2021 Quantity Purchased 15,000 $ 6,500 $ 7,500 $ 3.75 4.00 4.50 $ $ $ Total Cost 56,250 26.000 33,750 17 18 19 20 21 78900 The company uses FIFO to account for its inventory cost. What is the cost of the company's ending inventory (round answer to nearest dollar and show your calculation below for full credit)? $77.446 22 23 24 25 F G H 18 19 20 21 The company uses FIFO to account for its inventory cost. What is the cost of the company's ending inventory (round answer to nearest dollar and show your calculation below for full credit)? $77,446 22 23 24 25 26 27 The inventory balance per the unadjusted trial balance before making any adjustments is: $ 80,968 What is the amount of the December 31 adjustment to inventory cost (show your calculation below for full credit)? 80,968-77446=3552 $3,552 28 29 30 31 32 33 34 35 36 37 38 Complete below the adjusting journal entry necessary for inventory Account description Debit Credit COGS 3,552 merchandise inventory 3,552 Post the above entry to the trial balance in the adjustment columns 39 40 41 42 43 44 45 UAWN- 2 3 4 5 ACME Distribution, Inc. December 31, 2021 Adjusting Entries Continued 4) The company has estimated, based on historical information, that 2.9% of its accounts receivable will ultimately not be collected. Therefore, they provide an allowance for bad debts at that level. Calculate the appropriate amount for the allowance at December 31, 2021 10 11 12 13 14 Accounts receivable balance per the unadjusted trial balance $ 35,032 $ 1,016 Gain Estimated alowance amount (Round answer to the nearest dollar and show your calculation below for full credit). 35032x2.9-1016 15 16 17 Amount of adjustment needed to the allowance account (Show your calculation below to receive full credit). 35032x2.9-1016 $ 18 19 20 21 1,016 23 24 25 27 28 Complete below the adjusting journal entry necessary for the allowance for bad debts: 29 30 31 Debit Credit Account description 31-Dec bad debts allowance for bad debts S 32 33 34 35 1,016 1,016 Dinshu avent D E WN 1 2 3 4 5 ACME Distribution, Inc. December 31, 2021 Adjusting Entries Continued 5) On July 31, 2021 the company purchased new warehouse equipment in the amount of $63,000. No depreciation has been recorded yet in 2021 for this new asset. It is estimated to have a useful life of 8 years and a salvage value of $3,000. 6 ON 00 8 $3,125 What is the depreciation expense for 2021 using the straight-line method using months in service? (Round answer to the nearest dollar and show your calculation below for full credit) (63000-3000Y8=7500 7500/12x5=3125 ON 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NNNN Complete below the adjusting journal entry necessary for depreciation: Account description depreciation expense aco, Depreciation equipment Debit Credit 25 $ 3,125 3,125 26 27 28 29 30 Post the above entry to the trial balance in the adjustment columns 2 3 4 5 ACME Distribution December 31, 2021 Adjusting Entries Continued 5) The company issued a $90,000 bond dated August 1, 2021 to finance the purchase of warehouse equipment and provide the company additional cash. The bond has a contractual interest rate of 5.0% and was issued at par. The bond matures in 10 years and pays interest on July 31 and January 31 each year. 8 $1,875 What is the amount of interest to be accrued at December 31, 2021? (Use 30 days per month/360 per year convention) Round answer to nearest dollar and show your calculation below for full credit) ($90,000 * 5%) *150/360 = $1,875 9 9 10 N 11 12 13 14 15 16 17 18 19 20 Complete below the adjusting journal entry necessary for accrued interest Account description interest expense interest payable Credit Debit 1,875 22 23 24 ms $ NNNNNNNNNN DVOU 1.875 25 Post the above entry to the trial balance in the adjustment columns 26 27 28 CU AWNO VOU AWN 2 3 ACME Distribution, Inc. 4 Income Statement 5 For the Years Ended December 31, 2021 and 2020 6 Years Ended December 31, 2021 2020 9 Revenue: 10 Sales S 734,300 607,480 11 Less: Sales discounts 1,975 1,480 12 Sales returns and allowances 780 620 13 Net sales 731,545 605,380 14 Cost of goods sold 539,222 461 200 15 Gross profit 192,323 144,180 16 17 Operating expenses: 18 Depreciation expense-Office equipment 3,500 1.200 19 Depreciation expense--Warehouse equipment 11,125 2,500 20 Bad debt expense 1.900 640 21 Salaries expense 67.700 48,000 22 Insurance expense 17,000 18.060 23 Rent expense 28,600 24,000 24 Advertising expense 22,700 15.900 25 Utilities expense 19,950 13,000 26 Total operating expense 172,475 123,300 27 28 Income from operations 19,848 20,880 29 30 Other expense-Interest 1,875 0 31 32 Net income 17.973 $ 20.880 33 34 35 tems NN ON 2 3 4 ACME Distribution, Inc. Statement of Stockholders' Equity For the Years Ending December 31, 2021 and 2020 6 7 8 9 Balance, January 1, 2020 10 Common stock issued 11 Add: Net Income 12 Less: Dividends paid 13 Balance, December 31, 2020 14 Common stock issued 15 Add: Net income 16 Less: Dividends 17 Balance, December 31, 2021 18 19 20 21 22 23 24 25 Additional Common Stock Paid-in Retained Shares Amount Capital Earnings 100 $ 1,000 $ 500 $ 153,530$ 20 200 400 20,880 12.000 120 1,200 900 162,410 50 500 1,500 17,973 24,765 170 $ 1,700 $ 2,400 $ 155,618$ Total 155,030 600 20,880 12.000 164,510 2.000 17.973 24.765 159,718 NNNNN 00 OWN- 2 ACME Distribution, Inc. 3 Balance Sheet 4 As of December 31, 2021 and 2020 5 6 December 31. 7 2021 2020 8 Assets 9 Current assets 10 Cash 34,620 11 Accounts receivable 25,060 12 Allowance for bad debts (1,200) 13 Accounts receivable-net of allowance 23,860 14 Inventory 66,750 15 Supplies 16 Prepaid insurance 10,700 17 Prepaid rent 2,600 18 Total current assets 138,530 19 20 Property, plant and equipment 21 Office equipment 35,000 22 Warehouse equipment 30,000 23 65.000 24 Less accumulated depreciation 24,000 25 Net property, plant and equipment 41,000 26 27 Total assets 179,530 28 Liabilities 29 Current liabilities 30 Accounts payable 14,550 31 Salaries payable 470 32 Interest payable 0 33 Dividends payable 34 Unearned revenue Inventory adjustment Allow. for bad debts Depreciation Accrued interest Ready Income Staten A B c D E $ 29 Current liabilities 30 Accounts payable 31 Salaries payable 32 Interest payable 33 Dividends payable 34 Unearned revenue 35 Total current liabilities 14,550 470 0 15,020 36 0 15,020 37 Long-term liability 38 Bond payable 39 Total liabilities 40 41 Stockholders' Equity Common stock, $10 par value, 100,000 shares authorized, 170 and 120 shares issued and 42 outstanding 43 Additional paid-in capital 44 Retained earnings 45 Total equity 46 47 Total liabilities and equity 48 49 50 51 52 53 1,200 900 162.410 164,510 179,530 O O unu WN ems FNM 099 8 NIXON 1 ACME Distribution, Inc. 2 December 31, 2021 3 Selected Transactions 4 5 Read through the information below for selected transactions during the month of December, 2021 and prepare the required jounal entry to record the transaction. Posteach of the entries below to the general 6 ledger T-accounts attached. 7 On December 5, ACME purchased $60,000 of merchandise on account from Indiana Corp terms 2/10 8) n/30 9 10 Date Account description Debit Credit 11 12/5/21 merchandise inventory 60.000 12 accounts payable $ 60.000 13 Sold Merchandise for $5,000 to Lee Corp on account on December 7. Cost of the merchandise was 14 $3,390 and the terms of the sale were 2/15 n/30 16 Date Account description Dabit Credit 17 121121 accounts clavabo S 5.000 18 sales $ 5.000 19 cost og goods sold 3390 20 merchandise inventory 5 3390 On December 14 ACME wrote a check to diana.com purchase made on December 5 to take 22) advantage of the purchase discouat. 24 Date Account description Debit Cudit 25 12/1471 accounts payable $ 60.000 26 merchandise inventory $ 1200 27 cash $ 58.800 28 On December 14, Lee Corp requested credit for $500 of defective merchandise included in their December 7 purchase. We granted them an allowance and they disposed of the defective 29.) merchandise at our request 30 31 Date Account description Credit 32 12/14/21 sales retums & allowance $ 33 accountsmclavable 34 5 500 35) Lee Corp paid their balance due taking the sales discount offered on December 19 Date Account description 38 12/1121 cash $ 4410 39 sale di 5 SO 40 Lac.com 4500 41 42 43 44 December 20 ACME 50 shams of 10 master for Pagent xx OR$ % 89 88 X 488 December 20 ACME issued 50 shares of $10 par stock for $40 per share for cash. Prepare the 45 ) adjustment to record the issuance of stock below. 40 47 Date Account description Debit Credit 48 12/20/21 cash $ 2.000) 49 common stock s 500 50 additional paid in capital $ 1.500 51 527) ACME purchased supplies for $1,850 cash on December 21. 33 54 Date Account description Debit Credit 55 12/21/21 supplies 1,850 56 cash $ 1.850 57 On December 21 ACME received $2,500 in cash as an advance payment for merchandise to be 588) delivered next month. 3 60 Date Account description 61 12/21/21 cash 2.500 62 uneamed revenue 2.500 63 64 ) On December 23 ACME paid in cash the December utility bill of $1,950 03 66 Date Account description Debit Credit 67 12/23/21 utilitokense 1,950 68 cash 69 1950 Page 2 mu On December 23, 2021 the board of directors declared a dividend of $4.50 per share on its 170 issued and outstanding shares to shareholders of record on January 16, 2022 and payable on February 16, 2022. (Note that the company uses a dividends general ledger account to record its dividend payments during the year rather than recording the dividends directly to retained eamings. Be sure to use that 70 10) account) 72 Date Account description Debit Credit 73 12/23/21 dividends $ 785 74 dividends payable $ 766 75 On December 28 ACME paid their employees 54,250 for the pay period ending December 23. The 7611) salary expense has already been accrued into salanes payable 78 Date Account description Debit 79 12/28/20 salaries povable $ 4.250 80 cash $ 4.250 81 F 82 1 2 3 4 ACME Distribution, Inc. December 31, 2021 General Ledger T-accounts Cash Accounts receivable 5 Allowance for bad debts 130 6 Beginning balance 103,212 4,410 42,400 5,000 7 8 58.800 4,500 500 9 1,500 1,850 2.500 10 11 12 13 1,950 4.250 Ending balance 44,772 42,400 14 130 Supplies 145 Prepaid insurance 18,000 Beginning balance Inventory 25,558 60,00 1.200 Page 1 Ending balance 83,368 18,000 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Prepaid rent 2,600 Office equipment 35,000 Accum. Depr.- Office equip 11,500 Beginning balance Ending balance 2,600 35.000 11,500 Accum. Depe-Whse equip Warehouse equipment 80,000 31 Beginning balance 24,000 1 1 32 33 34 35 tems 36 Ending balance 80.000 24.000 38 39 40 Beginning balance Accounts payable 14,200 60,000 60,000 Bond payable 75.000 Salarias payable 4.250 4.250 41 44 Ending balance 14,200 75.000 45 45 47 Interest Payable Dividends payable Uneamed revenue Beginning balance 785 2.500 51 Ending balance 705 2.500 Page 2 54 55 Beginning balance Common stock 1,200 500 Additional paldina 900 1,500 Retained wings 162.410 57 50 Ending balance 1.700 2.600 162.410 50 60 61 Beginning balance Dividende 24,000 785 64 65 66 tems 67 Ending balance 24.705 Sales Beginning balance 720,300 5.000 Sales discounts 1.885 90 Sales retums & allowance 280 500 70 21 72 73 14 Encing balance 734,300 1.975 780 75 76 Beginning balance Cost of goods sold 512.310 3,300 Depr. exp. Offce equip 3.500 Dept. Exp. Wheu 8.000 00 Ending balance 535.700 1300 0.000 Badebt expense Beginning balance Salaries expense 1.400 Insurance expense 14.500 Page 3 Ending balance 100 61.400 14.500 90 Rant expense 26.000 Interest expense Beginning balance Advertising expens 22,700 Ending balance 28.600 22.700 91 92 93 94 95 96 97 tems 98 99 100 101 102 103 les expense Beginning balance 18.000 1.960 Ending balance 10,950 B20 JX 7 days x 900=6300 A B D E F F G 1 2 3 4 5 ACME Distribution, Inc. December 31, 2021 Adjusting Entries Read through each situation below and on the following pages. After completing any necessary calculations prepare the required adjusting journal entry. When preparing the adjusting journal entries, use the account titles from the trial balance or the general ledger. Post each of the entries below to the trial balance and calculate the adjusted account balances. 6 00 8 1) A one year insurance policy was purchased on Oct. 31 for a premium of $15,000. In the space below show your calculations to receive full credit. Complete the required year- end (December 31, 2021) adjusting entry below. 9 15000/12x2=2500 10 11 12 Account description Debit Credit 13 $ Insurance expense prepaid insurance 2,500 $ 14 15 16 2,500 Oh U Post the above entry to the trial balance in the adjustment columns 17 18 CO 2) The company's employees are paid weekly and it is open for business Monday through Friday each week. The employees have been paid through Friday December 24. The total payroll for all employees equals $900 per day and they are paid for all holidays. In the space below show your calculation of the amount due to receive full credit. Record the adjustment to accrue the salary expense through December 31 (ignore the effect of any related payroll taxes), 19 18 2) The company's employees are paid weekly and it is open for business Monday through Friday each week. The employees have been paid through Friday December 24. The total payroll for all employees equals $900 per day and they are paid for all holidays. In the space below show your calculation of the amount due to receive full credit. Record the adjustment to accrue the salary expense through December 31 (ignore the effect of any related payroll taxes). 19 7 days x 900=6300 20 21 22 Debit Credit 23 Account description salaries expense salaries payable $ 6,300 6,300 NNNNN o No un A 24 25 26 27 28 29 Post the above entry to the trial balance in the adjustment columns. F G H 1 ACME Distribution, Inc. 2 December 31, 2021 3 Adjusting Entries Continued 4 5 3) The company takes a physical inventory count at the end of the year and adjusts their inventory and cost of goods sold if there is a difference between the inventory value determined from the actual count compared to the value in the general ledger. The information below includes the number of units counted in inventory at the end of the year and the purchases of inventory during the month. 6 NOONM Number of units held in the company's inventory at 12/31/2021 based on a count of the inventory was 18,719 units. A listing of purchases during the month of December are as follows: 10 11 12 13 14 15 16 Unit Cost Date December 5, 2021 December 14, 2021 December 21, 2021 Quantity Purchased 15,000 $ 6,500 $ 7,500 $ 3.75 4.00 4.50 $ $ $ Total Cost 56,250 26.000 33,750 17 18 19 20 21 78900 The company uses FIFO to account for its inventory cost. What is the cost of the company's ending inventory (round answer to nearest dollar and show your calculation below for full credit)? $77.446 22 23 24 25 F G H 18 19 20 21 The company uses FIFO to account for its inventory cost. What is the cost of the company's ending inventory (round answer to nearest dollar and show your calculation below for full credit)? $77,446 22 23 24 25 26 27 The inventory balance per the unadjusted trial balance before making any adjustments is: $ 80,968 What is the amount of the December 31 adjustment to inventory cost (show your calculation below for full credit)? 80,968-77446=3552 $3,552 28 29 30 31 32 33 34 35 36 37 38 Complete below the adjusting journal entry necessary for inventory Account description Debit Credit COGS 3,552 merchandise inventory 3,552 Post the above entry to the trial balance in the adjustment columns 39 40 41 42 43 44 45 UAWN- 2 3 4 5 ACME Distribution, Inc. December 31, 2021 Adjusting Entries Continued 4) The company has estimated, based on historical information, that 2.9% of its accounts receivable will ultimately not be collected. Therefore, they provide an allowance for bad debts at that level. Calculate the appropriate amount for the allowance at December 31, 2021 10 11 12 13 14 Accounts receivable balance per the unadjusted trial balance $ 35,032 $ 1,016 Gain Estimated alowance amount (Round answer to the nearest dollar and show your calculation below for full credit). 35032x2.9-1016 15 16 17 Amount of adjustment needed to the allowance account (Show your calculation below to receive full credit). 35032x2.9-1016 $ 18 19 20 21 1,016 23 24 25 27 28 Complete below the adjusting journal entry necessary for the allowance for bad debts: 29 30 31 Debit Credit Account description 31-Dec bad debts allowance for bad debts S 32 33 34 35 1,016 1,016 Dinshu avent D E WN 1 2 3 4 5 ACME Distribution, Inc. December 31, 2021 Adjusting Entries Continued 5) On July 31, 2021 the company purchased new warehouse equipment in the amount of $63,000. No depreciation has been recorded yet in 2021 for this new asset. It is estimated to have a useful life of 8 years and a salvage value of $3,000. 6 ON 00 8 $3,125 What is the depreciation expense for 2021 using the straight-line method using months in service? (Round answer to the nearest dollar and show your calculation below for full credit) (63000-3000Y8=7500 7500/12x5=3125 ON 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NNNN Complete below the adjusting journal entry necessary for depreciation: Account description depreciation expense aco, Depreciation equipment Debit Credit 25 $ 3,125 3,125 26 27 28 29 30 Post the above entry to the trial balance in the adjustment columns 2 3 4 5 ACME Distribution December 31, 2021 Adjusting Entries Continued 5) The company issued a $90,000 bond dated August 1, 2021 to finance the purchase of warehouse equipment and provide the company additional cash. The bond has a contractual interest rate of 5.0% and was issued at par. The bond matures in 10 years and pays interest on July 31 and January 31 each year. 8 $1,875 What is the amount of interest to be accrued at December 31, 2021? (Use 30 days per month/360 per year convention) Round answer to nearest dollar and show your calculation below for full credit) ($90,000 * 5%) *150/360 = $1,875 9 9 10 N 11 12 13 14 15 16 17 18 19 20 Complete below the adjusting journal entry necessary for accrued interest Account description interest expense interest payable Credit Debit 1,875 22 23 24 ms $ NNNNNNNNNN DVOU 1.875 25 Post the above entry to the trial balance in the adjustment columns 26 27 28 CU AWNO VOU AWN 2 3 ACME Distribution, Inc. 4 Income Statement 5 For the Years Ended December 31, 2021 and 2020 6 Years Ended December 31, 2021 2020 9 Revenue: 10 Sales S 734,300 607,480 11 Less: Sales discounts 1,975 1,480 12 Sales returns and allowances 780 620 13 Net sales 731,545 605,380 14 Cost of goods sold 539,222 461 200 15 Gross profit 192,323 144,180 16 17 Operating expenses: 18 Depreciation expense-Office equipment 3,500 1.200 19 Depreciation expense--Warehouse equipment 11,125 2,500 20 Bad debt expense 1.900 640 21 Salaries expense 67.700 48,000 22 Insurance expense 17,000 18.060 23 Rent expense 28,600 24,000 24 Advertising expense 22,700 15.900 25 Utilities expense 19,950 13,000 26 Total operating expense 172,475 123,300 27 28 Income from operations 19,848 20,880 29 30 Other expense-Interest 1,875 0 31 32 Net income 17.973 $ 20.880 33 34 35 tems NN ON 2 3 4 ACME Distribution, Inc. Statement of Stockholders' Equity For the Years Ending December 31, 2021 and 2020 6 7 8 9 Balance, January 1, 2020 10 Common stock issued 11 Add: Net Income 12 Less: Dividends paid 13 Balance, December 31, 2020 14 Common stock issued 15 Add: Net income 16 Less: Dividends 17 Balance, December 31, 2021 18 19 20 21 22 23 24 25 Additional Common Stock Paid-in Retained Shares Amount Capital Earnings 100 $ 1,000 $ 500 $ 153,530$ 20 200 400 20,880 12.000 120 1,200 900 162,410 50 500 1,500 17,973 24,765 170 $ 1,700 $ 2,400 $ 155,618$ Total 155,030 600 20,880 12.000 164,510 2.000 17.973 24.765 159,718 NNNNN 00 OWN- 2 ACME Distribution, Inc. 3 Balance Sheet 4 As of December 31, 2021 and 2020 5 6 December 31. 7 2021 2020 8 Assets 9 Current assets 10 Cash 34,620 11 Accounts receivable 25,060 12 Allowance for bad debts (1,200) 13 Accounts receivable-net of allowance 23,860 14 Inventory 66,750 15 Supplies 16 Prepaid insurance 10,700 17 Prepaid rent 2,600 18 Total current assets 138,530 19 20 Property, plant and equipment 21 Office equipment 35,000 22 Warehouse equipment 30,000 23 65.000 24 Less accumulated depreciation 24,000 25 Net property, plant and equipment 41,000 26 27 Total assets 179,530 28 Liabilities 29 Current liabilities 30 Accounts payable 14,550 31 Salaries payable 470 32 Interest payable 0 33 Dividends payable 34 Unearned revenue Inventory adjustment Allow. for bad debts Depreciation Accrued interest Ready Income Staten A B c D E $ 29 Current liabilities 30 Accounts payable 31 Salaries payable 32 Interest payable 33 Dividends payable 34 Unearned revenue 35 Total current liabilities 14,550 470 0 15,020 36 0 15,020 37 Long-term liability 38 Bond payable 39 Total liabilities 40 41 Stockholders' Equity Common stock, $10 par value, 100,000 shares authorized, 170 and 120 shares issued and 42 outstanding 43 Additional paid-in capital 44 Retained earnings 45 Total equity 46 47 Total liabilities and equity 48 49 50 51 52 53 1,200 900 162.410 164,510 179,530 O O unu WN ems
