{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T04:45:37-04:00", "answer_date": "2024-06-28 04:45:37", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4242230", "url": "\/study-help\/questions\/i-need-help-with-the-attached-comprehensive-problem-read-all-4242230", "question_creation_date_js": "2024-06-28T04:45:37-04:00", "question_creation_date": "Jun 28, 2024 04:45 AM", "meta_title": "[Solved] I need help with the attached comprehensi | SolutionInn", "meta_description": "Answer of - I need help with the attached comprehensive problem Read ALL instructions before getting started! ABC Corporation is a | SolutionInn", "meta_keywords": "help,attached,comprehensive,problem,read,instructions,started,abc,corporation,new,company,buys", "question_title_h1": "I need help with the attached comprehensive problem Read ALL instructions before getting started! ABC Corporation is a new company that buys and sells office", "question_title": "I need help with the attached comprehensive problem Read ALL instructions before", "question_title_for_js_snippet": "I need help with the attached comprehensive problem Read ALL instructions before getting started ABC Corporation is a new company that buys and sells office supplies Business began on January 1, 2012 Given on the first two tabs are ABC's 12 31 12 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 en 2 Post the adjustments to the general ledger on the 123112 TAccounts tab You may have to add TAccounts for new a Link your TAccount entries to your Journal Entries PLEASE NOTE THAT THE BB (BEGINNING BALANCES) FO TACCOUNTS REPRESENT THE UNADJUSTED BALANCES AS OF 12 31 12 3 Once the 12 31 12 TAccounts are complete, prepare the Adjusted Trial Balance There may be some accounts with zero may have to insert lines for new accounts (some blank TAccounts have already been provided for you) Link the Adjust 4 Use the Adjusted Trial Balance numbers to complete the Income Statement, Statement of Retained Earnings, Balance She For purposes of the Income Statement, prepare using the multiple step format and assume that Rent Revenue, any Unrea Interest Expense, Interest Revenue, and any other Gains Losses are NOT part of the major central ongoing operations of t Link your financial statements to your Adjusted Trial Balance Use the Income Statement and Balance Sheet to finish the of Cash Flows Since this is ABC's first year of operations, several line items on the Statement of Cash Flows have If necessary, review financial statement preparation in Chapters 4 and 5 of your textbook for a quick refresher Plan on u completing Chapter 23 to help with the preparation of the Statement of Cash Flows Additionally, since this is ABC Co the adjusted trial balance for all current assets and liabilities represents the change during the year for Statement 5 When the Financial Statements are complete, make the closing entries on the Closing Entries tab being mindful of the f 6 When closing entries have been made, post the entries to the general ledger on the PostClose TAccounts tab Make su journal entries are also posted on your PostClose TAccounts They will not automatically flow from tabtotab Sugges finished posting your adjusting journal entries to the accounts in the 123112 T Accounts tab, make a duplicate of this closing entries and then just relabel the tab as PostClose TAccounts Just be sure to delete the original PostClose T workbook before you do this since you can't have two worksheets with the same name 7 The final step is the PostClosing Trial Balance, which will use the ending balances from the 1 1 13 TAccounts 8 Doublecheck 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 Flo The PostClosing Trial Balance should not have any revenue, expense, gain, loss, or other temporary accounts Check figure 1 Income from operations $251,056 Check figure 2 Income before income taxes $221,477 Check figure 3 Total Assets $1,719,716 Check figure 4 Cash flow used by operating activities $36,860 Check figure 5 Adjusted Trial Balance debit and credit columns total $2,364,180 Remember Neatness matters in Financial Statements Print or Print Preview before submitting to make sure your 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 complet Please take advantage of Excel by using formulas to calculate groups of numbers (i e Total Liabilities and Stockh al comments This project is intended to make sure that you understand the accounting cycle as well as several key financial ed during your Intermediate Accounting series It is very important to take the necessary time on this project to master these comprehensive problem will serve you well in Advanced Accounting and the rest of your accounting ABC Corporation Unadjusted Trial Balance December 31, 2012 Cash Short term investments Fair value adjustment (Trading) Accounts receivable Allowance for doubtful accounts Inventory Purchases Prepaid insurance LT (Debt) investments (HTM) Land 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 Common stock PIC In Excess of ParCommon Stock Retained earnings Treasury stock Dividends Sales Revenue Advertising expense Wages expense Office expense Depreciation expense Utilities expense Insurance expense Income taxes expense Debit $681,041 170,000 256,500 343,800 18,000 138,913 52,000 108,000 51,900 30,000 25,000 50,000 3,900 56,800 6,900 20,150 19,400 54,000 66,000 $2,152,304 Credit $ 2,850 17,300 52,690 150,000 66,000 30,000 1,000,000 77,214 80,000 25,000 651,250 $2,152,304 Adjusting Journal Entries 12 31 12 JE Account Titles 1 Insurance Expense Prepaid Insurance (to record expired portion of insurance) Debits 6,000 Credits 6,000 2 Depreciation Expense Accumulated Depreciation Building Accumulated Depreciation Equipment (to record equipment building depreciation for year end) 2,015 285 1,730 3 Unearned Rent Revenue Rent Revenue (to record rent revenue for year end) 10,000 4 Wages Expense Wages Payable (to record wages earned not paid) 12,500 5 Interest Expense Interest Payable (to record interest on note at year end) 6 Cost of Goods Sold Purchases Inventory (to record cost of goods sold at year end) 10,000 12,500 750 750 183,000 348,000 165,000 7 Loss on Impairment Patent Patent (to record patent reduced from book value to fair value) 10,000 8 Cash 30,000 10,000 PIC Treasury Stock Treasury Stock (to record reissuance of treasury stock) 9 Cash 5,000 25,000 36,000 PIC In Excess of Par Common Stock Common Stock (to record issuance of common stock) 31,500 4,500 10 Interest Expense Premium on Bonds Payable Interest Payable (record accrual of interest and the related amortization) 53,861 6,139 11 Fair Value Adjustment (Trading) Unrealized Holding (to record stock investments) 12,500 12 Cash Bond Amortization Interest Revenue (to record interest earned on bonds) 13,500 1,780 13 Bad Debt Expense Allowance for Bad Debt (to record bad debt expense) 20,000 14 Leased Vehicle Lease Liability 35,529 Lease Liability Cash 60,000 12,500 15,280 20,000 35,529 8,668 8,668 12 31 2012 Depreciation Expense Accumulated DeprCapital Lease 7,229 12 31 2012 Interest Expense Interest Payable 2,748 15 Pension Expense Pension Asset Liability Cash 16 Income Tax Expense Income Tax Payable 15 16 7,229 2,748 $2,500 $22,500 $25,000 17,259 17,259 Beginning balances (bb) on these Taccounts are the 12 31 12 unadjusted balances Hint If there is no beginning balance (bb), it is a new account bb 8 9 12 Cash 681,041 30,000 36,000 13,500 8,668 14 25,000 15 bb 726,873 bb Accounts receivable 256,500 bb 6 256,500 Short term investments 170,000 bb 11 Inventory 165,000 bb Purchases 343,800 348,000 6 165,000 Fair value adjustment (Trading) 12,500 bb 4,200 Allowance for doubtful accounts bb 20,000 13 bb 12 Prepaid insurance 18,000 6,000 1 bb 12,000 LT (Debt) investments (HTM) 138,913 1,780 Bonds Payable Land 52,000 52,000 1,000,000 bb 10 Premium on Bonds Payable 6,139 77,214 bb 1,000,000 170,000 bb 12,500 Building 108,000 Accumulated depreciation building 2,850 bb 285 2 108,000 Notes payable 20,000 bb 3,135 Income taxes payable 150,000 bb 66,000 bb 140,693 Accumulated depreciation equipment 17,300 bb 1,730 2 Equipment 51,900 51,900 3 71,075 bb 19,030 Unearned rent revenue 10,000 30,000 bb Common stock Patent 30,000 Accounts payable 52,690 bb 10,000 7 20,000 Retained earnings 80,000 bb 4,500 9 52,690 bb bb Dividends 50,000 150,000 66,000 Sales Revenue 651,250 bb bb 651,250 bb 1 Insurance expense 54,000 6,000 60,000 7 Loss on Impairment Patent 10,000 10,000 Advertising expense 3,900 bb 4 3,900 bb 20,000 Wages expense 56,800 12,500 Rent Revenue 66,000 PIC Treasury Stock bb 69,300 Income taxes expense 66,000 5,000 Unrealized Holding Office expense 6,900 10,000 3 12,500 11 12,500 Wages Payable 50,000 bb 2 6,900 10,000 5,000 8 84,500 Depreciation expense 20,150 2,015 bb 22,165 12,500 3 5 10 12,500 Interest Revenue 15,280 12 15,280 Utilities expense 19,400 19,400 Interest Expense 750 53,861 Interest Payable 750 5 60,000 10 54,611 13 Bad Debt Expense 20,000 20,000 60,750 14 Leased Vehicle 35,529 35,529 ABC Corporation Adjusted Trial Balance December 31, 2012 Cash Short term investments Fair value adjustment (Trading) Accounts receivable Allowance for doubtful accounts Inventory Cost of goods sold Purchases Prepaid insurance LT (Debt) investments (HTM) Land Building Accumulated depreciation building Equipment Accumulated depreciation equipment Patent Accounts payable Wages payable Notes payable Income taxes payable Interest payable Unearned rent revenue Bonds Payable Premium on Bonds Payable Common stock PIC In Excess of ParCommon Stock Retained earnings Treasury stock PICTreasury Stock Dividends Sales Revenue Rent Revenue Interest Revenue Unrealized holding G L (Income) Loss on impairmentPatent Advertising expense Bad debt expense Wages expense Office expense Depreciation expense Utilities expense Insurance expense Interest expense Income taxes expense Leased vehicle Lease Liability Pension Expense Pension Asset Liability Debit $726,873 170,000 12,500 256,500 165,000 183,000 12,000 140,693 52,000 108,000 51,900 20,000 50,000 10,000 3,900 20,000 69,300 6,900 22,165 19,400 60,000 54,611 66,000 35,529 Credit 20,000 4,200 3,135 19,030 52,690 12,500 150,000 66,000 60,750 20,000 1,000,000 71,075 84,500 56,500 5,000 651,250 10,000 15,280 12,500 26,861 2,500 22,500 $2,341,271 $2,341,271 ABC Corporation Income Statement For the Year Ended December 31, 2012 Sales Revenue Sales Less Cost of Goods Sold Gross Profit Operating Expense Advertising expense Wages expense Office expense Depreciation expense Utilities expense Insurance expense Lease Vehicle Income from operations Other Income Gains Expenses Rent revenue Interest revenue Interest expense Pension expense Unrealized holding income Loss on impairmentpatent Income before income taxes Income Tax for Total Year Net Income Net Income $651,250 183,000 $468,250 $3,900 69,300 6,900 22,165 19,400 60,000 35,529 10,000 15,280 (54,611) (2,500) 12,500 (10,000) 217,194 251,056 (29,331) 221,725 $66,000 $155,725 ABC Corporation Statement of Retained Earnings For the Year Ended December 31, 2012 $ 155,725 $155,725 651,250 $(495,525) ABC Corporation Balance Sheet For the Year Ended December 31, 2012 ABC Corporation Statement of Cash Flows For the Year Ended December 31, 2012 Cash flows from operating activities Net income Err 509 Deduct Amortization of bond premium (Issued bonds) Deduct Unrealized holding G L Add Deduct Amortization of HTM discount (Bond investment) Deduct overfunding of pension plan for calendar year Increase in Increase in Increase in Increase in Increase in Increase in Increase in Increase in Cash flow used by operating activities $155,725 22,165 (6,139) (15,280) 10,000 (1,780) Err 509 Cash flows from investing activities Investment in short term investments Investment in LT bonds Cash flow used by investing activities Cash flows from financing activities Leased delivery vehicle paymentprincipal only Proceeds from bank note Cash flow provided by financing activities Net change in cash Beginning cash balance 1 1 12 Ending cash balance 12 31 12 Err 509 Err 509 Note As indicated in the instructions, the Statement of Cash Flows has been partially populated to assist you in the preparation of this financial statement Remember, since the beginning cash balance is zero, the ending cash balance should also represent the total net change in cash Closing Entries 12 31 12 JE 17 18 19 20 Account Titles Debits Credits Beginning balances (bb) on these Taccounts are the 12 31 12 unadjusted balances Hint If there is no beginning balance (bb), it is a new account bb Cash 681,041 bb 681,041 bb Accounts receivable 256,500 bb 256,500 Short term investments 170,000 Inventory bb Fair value adjustment (Trading) bb Purchases 343,800 bb 343,800 Allowance for doubtful accounts bb Prepaid insurance 18,000 bb 18,000 LT (Debt) investments (HTM) bb 138,913 Land 52,000 52,000 Bonds Payable 1,000,000 bb Premium on Bonds Payable 77,214 bb 1,000,000 170,000 bb Accumulated depreciation building 2,850 bb Building 108,000 108,000 bb 2,850 Notes payable 77,214 Accumulated depreciation equipment 17,300 bb Equipment 51,900 51,900 Income taxes payable 66,000 bb 150,000 bb 138,913 bb 17,300 Unearned rent revenue 30,000 bb Patent 30,000 Accounts payable 52,690 bb 30,000 Common stock 52,690 Retained earnings 80,000 bb bb 80,000 bb Dividends 50,000 150,000 66,000 Sales Revenue 651,250 bb bb 651,250 bb Insurance expense 54,000 54,000 Advertising expense 3,900 3,900 bb Income taxes expense 66,000 66,000 30,000 bb Wages expense 56,800 56,800 bb Office expense 6,900 6,900 bb Depreciation expense 20,150 20,150 50,000 bb Utilities expense 19,400 19,400 ABC Corporation PostClosing Trial Balance December 31, 2012 Debit Credit $ $", "question_description": "

I need help with the attached comprehensive problem\"image<\/p> Read ALL instructions before getting started! ABC Corporation is a new company that buys and sells office supplies. Business began on January 1, 2012. Given on the first two tabs are ABC's 12\/31\/12 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 en 2. Post the adjustments to the general ledger on the \"123112 TAccounts\" tab. You may have to add TAccounts for new a Link your TAccount entries to your Journal Entries. PLEASE NOTE THAT THE \"BB\" (BEGINNING BALANCES) FO TACCOUNTS REPRESENT THE UNADJUSTED BALANCES AS OF 12\/31\/12. 3. Once the 12\/31\/12 TAccounts are complete, prepare the Adjusted Trial Balance. There may be some accounts with zero may have to insert lines for new accounts (some blank TAccounts have already been provided for you). Link the Adjust 4. Use the Adjusted Trial Balance numbers to complete the Income Statement, Statement of Retained Earnings, Balance She For purposes of the Income Statement, prepare using the multiple step format and assume that Rent Revenue, any Unrea Interest Expense, Interest Revenue, and any other Gains\/Losses are NOT part of the major central ongoing operations of t Link your financial statements to your Adjusted Trial Balance. Use the Income Statement and Balance Sheet to finish the of Cash Flows. Since this is ABC's first year of operations, several line items on the Statement of Cash Flows have If necessary, review financial statement preparation in Chapters 4 and 5 of your textbook for a quick refresher. Plan on u completing Chapter 23 to help with the preparation of the Statement of Cash Flows. Additionally, since this is ABC Co the adjusted trial balance for all current assets and liabilities represents the change during the year for Statement 5. When the Financial Statements are complete, make the closing entries on the \"Closing Entries\" tab being mindful of the f 6. When closing entries have been made, post the entries to the general ledger on the \"PostClose TAccounts\" tab. Make su journal entries are also posted on your PostClose TAccounts. They will not automatically flow from tabtotab. Sugges finished posting your adjusting journal entries to the accounts in the \"123112 T Accounts\" tab, make a duplicate of this closing entries and then just relabel the tab as \"PostClose TAccounts.\" Just be sure to delete the original \"PostClose T workbook before you do this since you can't have two worksheets with the same name. 7. The final step is the PostClosing Trial Balance, which will use the ending balances from the 1\/1\/13 TAccounts. 8. Doublecheck 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 Flo The PostClosing Trial Balance should not have any revenue, expense, gain, loss, or other temporary accounts. Check figure 1: Income from operations = $251,056. Check figure 2: Income before income taxes = $221,477. Check figure 3: Total Assets = $1,719,716. Check figure 4: Cash flow used by operating activities = $36,860. Check figure 5: Adjusted Trial Balance debit and credit columns total $2,364,180. Remember: Neatness matters in Financial Statements. Print or Print Preview before submitting to make sure your 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 complet Please take advantage of Excel by using formulas to calculate groups of numbers (i.e. \"Total Liabilities and Stockh al comments: This project is intended to make sure that you understand the accounting cycle as well as several key financial ed during your Intermediate Accounting series. It is very important to take the necessary time on this project to master these comprehensive problem will serve you well in Advanced Accounting and the rest of your accounting ABC Corporation Unadjusted Trial Balance December 31, 2012 Cash Short term investments Fair value adjustment (Trading) Accounts receivable Allowance for doubtful accounts Inventory Purchases Prepaid insurance LT (Debt) investments (HTM) Land 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 Common stock PIC In Excess of ParCommon Stock Retained earnings Treasury stock Dividends Sales Revenue Advertising expense Wages expense Office expense Depreciation expense Utilities expense Insurance expense Income taxes expense Debit $681,041 170,000 256,500 343,800 18,000 138,913 52,000 108,000 51,900 30,000 25,000 50,000 3,900 56,800 6,900 20,150 19,400 54,000 66,000 $2,152,304 Credit $ 2,850 17,300 52,690 150,000 66,000 30,000 1,000,000 77,214 80,000 25,000 651,250 $2,152,304 Adjusting Journal Entries 12\/31\/12 JE # Account Titles 1 Insurance Expense Prepaid Insurance (to record expired portion of insurance) Debits 6,000 Credits 6,000 2 Depreciation Expense Accumulated Depreciation Building Accumulated Depreciation Equipment (to record equipment & building depreciation for year end) 2,015 285 1,730 3 Unearned Rent Revenue Rent Revenue (to record rent revenue for year end) 10,000 4 Wages Expense Wages Payable (to record wages earned not paid) 12,500 5 Interest Expense Interest Payable (to record interest on note at year end) 6 Cost of Goods Sold Purchases Inventory (to record cost of goods sold at year end) 10,000 12,500 750 750 183,000 348,000 165,000 7 Loss on Impairment Patent Patent (to record patent reduced from book value to fair value) 10,000 8 Cash 30,000 10,000 PIC Treasury Stock Treasury Stock (to record reissuance of treasury stock) 9 Cash 5,000 25,000 36,000 PIC In Excess of Par Common Stock Common Stock (to record issuance of common stock) 31,500 4,500 10 Interest Expense Premium on Bonds Payable Interest Payable (record accrual of interest and the related amortization) 53,861 6,139 11 Fair Value Adjustment (Trading) Unrealized Holding (to record stock investments) 12,500 12 Cash Bond Amortization Interest Revenue (to record interest earned on bonds) 13,500 1,780 13 Bad Debt Expense Allowance for Bad Debt (to record bad debt expense) 20,000 14 Leased Vehicle Lease Liability 35,529 Lease Liability Cash 60,000 12,500 15,280 20,000 35,529 8,668 8,668 12\/31\/2012 Depreciation Expense Accumulated DeprCapital Lease 7,229 12\/31\/2012 Interest Expense Interest Payable 2,748 15 Pension Expense Pension Asset\/Liability Cash 16 Income Tax Expense Income Tax Payable 15 16 7,229 2,748 $2,500 $22,500 $25,000 17,259 17,259 Beginning balances (bb) on these Taccounts are the 12\/31\/12 unadjusted balances. Hint: If there is no beginning balance (bb), it is a new account. bb 8 9 12 Cash 681,041 30,000 36,000 13,500 8,668 14 25,000 15 bb 726,873 bb Accounts receivable 256,500 bb 6 256,500 Short term investments 170,000 bb 11 Inventory 165,000 - bb Purchases 343,800 348,000 6 165,000 Fair value adjustment (Trading) 12,500 bb 4,200 Allowance for doubtful accounts - bb 20,000 13 bb 12 Prepaid insurance 18,000 6,000 1 bb 12,000 LT (Debt) investments (HTM) 138,913 1,780 Bonds Payable Land 52,000 52,000 1,000,000 bb 10 Premium on Bonds Payable 6,139 77,214 bb 1,000,000 170,000 bb 12,500 Building 108,000 Accumulated depreciation: building 2,850 bb 285 2 108,000 Notes payable 20,000 bb 3,135 Income taxes payable 150,000 bb 66,000 bb 140,693 Accumulated depreciation: equipment 17,300 bb 1,730 2 Equipment 51,900 51,900 3 71,075 bb 19,030 Unearned rent revenue 10,000 30,000 bb Common stock Patent 30,000 Accounts payable 52,690 bb 10,000 7 20,000 Retained earnings 80,000 bb 4,500 9 52,690 - bb bb Dividends 50,000 150,000 66,000 Sales Revenue 651,250 bb bb 651,250 bb 1 Insurance expense 54,000 6,000 60,000 7 Loss on Impairment Patent 10,000 10,000 Advertising expense 3,900 bb 4 3,900 bb 20,000 Wages expense 56,800 12,500 Rent Revenue 66,000 PIC-Treasury Stock bb 69,300 Income taxes expense 66,000 5,000 Unrealized Holding Office expense 6,900 10,000 3 12,500 11 12,500 Wages Payable 50,000 - bb 2 6,900 10,000 5,000 8 84,500 Depreciation expense 20,150 2,015 bb 22,165 12,500 3 5 10 12,500 Interest Revenue 15,280 12 15,280 Utilities expense 19,400 19,400 Interest Expense 750 53,861 Interest Payable 750 5 60,000 10 54,611 13 Bad Debt Expense 20,000 20,000 60,750 14 Leased Vehicle 35,529 35,529 ABC Corporation Adjusted Trial Balance December 31, 2012 Cash Short term investments Fair value adjustment (Trading) Accounts receivable Allowance for doubtful accounts Inventory Cost of goods sold Purchases Prepaid insurance LT (Debt) investments (HTM) Land Building Accumulated depreciation: building Equipment Accumulated depreciation: equipment Patent Accounts payable Wages payable Notes payable Income taxes payable Interest payable Unearned rent revenue Bonds Payable Premium on Bonds Payable Common stock PIC In Excess of ParCommon Stock Retained earnings Treasury stock PICTreasury Stock Dividends Sales Revenue Rent Revenue Interest Revenue Unrealized holding G\/L (Income) Loss on impairmentPatent Advertising expense Bad debt expense Wages expense Office expense Depreciation expense Utilities expense Insurance expense Interest expense Income taxes expense Leased vehicle Lease Liability Pension Expense Pension Asset\/Liability Debit $726,873 170,000 12,500 256,500 165,000 183,000 12,000 140,693 52,000 108,000 51,900 20,000 50,000 10,000 3,900 20,000 69,300 6,900 22,165 19,400 60,000 54,611 66,000 35,529 Credit 20,000 4,200 3,135 19,030 52,690 12,500 150,000 66,000 60,750 20,000 1,000,000 71,075 84,500 56,500 5,000 651,250 10,000 15,280 12,500 26,861 2,500 22,500 $2,341,271 $2,341,271 ABC Corporation Income Statement For the Year Ended December 31, 2012 Sales Revenue Sales Less: Cost of Goods Sold Gross Profit Operating Expense Advertising expense Wages expense Office expense Depreciation expense Utilities expense Insurance expense Lease Vehicle Income from operations Other Income\/Gains & Expenses Rent revenue Interest revenue Interest expense Pension expense Unrealized holding income Loss on impairmentpatent Income before income taxes Income Tax for Total Year Net Income Net Income $651,250 183,000 $468,250 $3,900 69,300 6,900 22,165 19,400 60,000 35,529 10,000 15,280 (54,611) (2,500) 12,500 (10,000) 217,194 251,056 (29,331) 221,725 $66,000 $155,725 ABC Corporation Statement of Retained Earnings For the Year Ended December 31, 2012 $ 155,725 $155,725 651,250 $(495,525) ABC Corporation Balance Sheet For the Year Ended December 31, 2012 ABC Corporation Statement of Cash Flows For the Year Ended December 31, 2012 Cash flows from operating activities Net income Err:509 Deduct: Amortization of bond premium (Issued bonds) Deduct: Unrealized holding G\/L Add: Deduct: Amortization of HTM discount (Bond investment) Deduct: overfunding of pension plan for calendar year Increase in Increase in Increase in Increase in Increase in Increase in Increase in Increase in Cash flow used by operating activities $155,725 22,165 (6,139) (15,280) 10,000 (1,780) Err:509 Cash flows from investing activities Investment in short term investments Investment in LT bonds Cash flow used by investing activities Cash flows from financing activities Leased delivery vehicle paymentprincipal only Proceeds from bank note Cash flow provided by financing activities Net change in cash Beginning cash balance 1\/1\/12 Ending cash balance 12\/31\/12 Err:509 Err:509 *Note: As indicated in the instructions, the Statement of Cash Flows has been partially populated to assist you in the preparation of this financial statement. Remember, since the beginning cash balance is zero, the ending cash balance should also represent the total net change in cash. Closing Entries 12\/31\/12 JE # 17 18 19 20 Account Titles Debits Credits Beginning balances (bb) on these Taccounts are the 12\/31\/12 unadjusted balances. Hint: If there is no beginning balance (bb), it is a new account. bb Cash 681,041 bb 681,041 bb Accounts receivable 256,500 bb 256,500 Short term investments 170,000 Inventory - bb - Fair value adjustment (Trading) bb - Purchases 343,800 bb 343,800 Allowance for doubtful accounts - bb Prepaid insurance 18,000 bb 18,000 LT (Debt) investments (HTM) bb 138,913 Land 52,000 52,000 Bonds Payable 1,000,000 bb Premium on Bonds Payable 77,214 bb 1,000,000 170,000 bb - - Accumulated depreciation: building 2,850 bb Building 108,000 108,000 bb 2,850 Notes payable 77,214 Accumulated depreciation: equipment 17,300 bb Equipment 51,900 51,900 Income taxes payable 66,000 bb 150,000 bb 138,913 bb 17,300 Unearned rent revenue 30,000 bb Patent 30,000 Accounts payable 52,690 bb 30,000 Common stock 52,690 Retained earnings 80,000 bb - bb 80,000 bb - Dividends 50,000 150,000 66,000 Sales Revenue 651,250 bb bb 651,250 bb Insurance expense 54,000 54,000 Advertising expense 3,900 3,900 bb Income taxes expense 66,000 66,000 30,000 bb Wages expense 56,800 56,800 bb Office expense 6,900 6,900 bb Depreciation expense 20,150 20,150 50,000 bb Utilities expense 19,400 19,400 ABC Corporation PostClosing Trial Balance December 31, 2012 Debit Credit $ $", "transcribed_text": "", "related_book": { "title": "Auditing and Assurance Services", "isbn": "978-1259573286, 1259573281, 978-1260152166", "edition": "7th edition", "authors": "Timothy Louwers, Allen Blay, David Sinason, Jerry Strawser, Jay Thibodeau", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1263.jpg", "uri": "\/textbooks\/auditing-and-assurance-services-7th-edition-1263", "see_more_uri": "" }, "free_related_book": { "isbn": "1260474992", "uri": "\/textbooks\/goldfranks-clinical-manual-of-toxicologic-emergencies-2nd-edition-978-1260474992-265847", "name": "Goldfranks Clinical Manual Of Toxicologic Emergencies", "edition": "2nd Edition" }, "question_posted": "2024-06-28 04:45:37", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/imc-perspective-51-discusses-the-results-of-a-survey-showing", "description": "IMC Perspective 5-1 discusses the results of a survey showing how men and women differ in their visual processing of sexual imagery in print ads. 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