I need help with this entire financial statement. Willing to pay whatever.

Financial Statement Homework #2 Name___________________ Please circle section time: 8:00, 9:30, 2:00 YOU MUST HAND WRITE THIS ASSIGNMENT & STAPLE YOUR PAGES! Brown, Inc. December 31, 2016 Unadjusted Trial balance Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Interest Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2016) Dividends Sales Revenue Sales Returns & Allowances Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Revenue Loss on Disposal Interest Expense Income Tax Expense Total 42,000 60,000 6,000 25,000 0 5,000 48,000 22,000 32,000 102,000 52,000 12,000 48,000 12,000 45,000 106,000 2,000 2,000 517,000 20,000 2,000 146,000 4,000 22,000 0 90,000 25,000 95,000 16,000 0 0 6,000 36,000 800,000 800,000 Page 1 of 8 Part 1: Prepare adjusting journal entries using the unadjusted trial balance on the previous page and the information provided below. Use only the account names provided on the previous page (do not create any new account names). 1. On Dec. 31, 2016 Brown, Inc. sold merchandise on account for $20,000 with a cost of $12,000 terms 5/10 net 30. 2. Brown, Inc. loaned Sulak Co. $25,000 (already on the TB) on Oct. 1, 2016 using a 6 month, 8% interest note. All interest and principal will be paid back at the end of the 6 months. Write the adjusting journal entry required by Brown, Inc. for its financial statements as of Dec. 31, 2016. 3. Uncollectable Accounts Receivables of $2,000 need to be written off for the year ended 2016. 4. Management estimates that of the remaining accounts receivable balance, $9,000 will be uncollectible. Record the adjustment based on this information. Hint: Use the AFDA balance AFTER the above write off during 2016. Use an AFDA T-account! 5. A piece of equipment was retired on Dec. 31, 2016. The equipment originally cost $35,000 and has related A/D of $22,000 as of Jan. 1, 2016. Additional depreciation of $3,000 needs to be recorded on this piece of equipment at Dec. 31, 2016. Update the depreciation below (#5). Then record the retirement (#6). 6. Record the retirement of the equipment (from #5) including the gain or loss. Page 2 of 8 Part 2: Post the adjusting journal entries to t-accounts: (Specific instructions: Above each T-account, write the account name of each account affected by a journal entry. Write in the unadjusted balance for each of these accounts (from page 1)...the unadjusted balance might be a debit, a credit, or zero balance. Now you are ready to post your journal entries from page 2 onto the corresponding T-accounts and then calculate adjusted balances.) Page 3 of 8 Part 3: Prepare the Adjusted Trial Balance (i.e., use ending balances after the previous journal entries are posted) Brown, Inc. December 31, 2016 Adjusted Trial balance Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Interest Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2016) Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Revenue Loss on Disposal Interest Expense Income Tax Expense Total Page 4 of 8 Part 4: Prepare a Multi-step Income Statement (Be sure to include all the necessary headings, totals and subtotals as outlined in Chapter 5. You may not need to use all the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Income Statement, use the right column for subtotals and totals.) ______________ _______________________ _______________________ Page 5 of 8 Prepare a Statement of Retained Earnings. ______________ _______________________ _______________________ Page 6 of 8 Prepare a Classified Balance Sheet (Be sure to include all the necessary subtotals and totals as outlined in Chapter 2. You may not need to use all of the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Balance Sheet, use the right column for subtotals and totals.) _______________ _____________________ ______________________ Page 7 of 8 Part 5: Answer the following questions using the above completed financial statements: What is the dollar amount for Gross Profit? What is the dollar amount for Income from Operations? What is the dollar amount for Income before for Income Tax? What is the dollar amount for Total Current Assets? What is the dollar amount for Total Current Liabilities? What is the dollar amount for Net PPE? If the company FAILS to record depreciation expense in the adjusting entries: What is the impact to the income statement? What is the impact to the balance sheet? Page 8 of 8