I only need the answers to the last workbook, the income statement page. I wrote page 1 & 2 on them. Please show the answers on excel like the one I have below. Thanks!
A G H B C E F Before you begin, print out all the pages in this workbook. 1 2 3 4 The unadjusted trial balance of Morgan Manufacturing Corp. at December 31, 2019 is shown on the "Trial Bal" page (see tab below). Refer also to the additional year-end information for the company shown on the "Adjusting Entries" page (see tab below). 5 6 7 8 9 Required: 1 Prepare year-end adjusting entries. General ledger account numbers are not necessary. Show your calculations below each adjusting entry. 10 11 12 13 2 Post the adjusting entries to the trial balance and prepare an adjusted trial balance. 14 15 3 Using the amounts from the adjusted trial balance, complete the financial statements for the year ended December 31, 2019. 16 17 18 19 20 21. 22 23 24 25 26 27 28 29 30 31 Required Adjusting Entries Ready Calculate Gen. Jnl. Trial Bal. Fcl. Stmts. Copyright # A B C D E H 1 G Morgan Manufacturing Corp. Adjusting Entries For the Year Ended December 31, 2019 2 3 4 5 The following additional information is available at the corporation's year-end. GST of 5% only applies when indicated. 6 7 8 a. A sale on account has not been recorded in the amount of: Applicable sales tax is: $5,000 8% 9 10 11 b. Warranty expense for the year as a percentage of sales should be: 2% 12 13 C. Unpaid gross salaries at year-end amount to: $10,000 14 15 16 17 Deductions from unpaid salaries are as follows: Employee Portion Employee income taxes 12% FICA Social Security taxes* 4% FICA Medicare taxes 2% Company health insurance 4% * these are not the actual required percentages Company Portion 0% 4% 2% 4% 18 19 20 21 22 23 d. The estimated year-end audit fees are: $90,000 24 25 26 27 e. Rent revenue consists of 13 equal monthly payments, including one paid in advance for January 2020. 28 29 f. A trade account payable was converted to a note payable during the year. No entry has been made to record this. The note payable is due at the end of 2020. 30 31 32 $40,000 3% 33 The amount of the note payable is: The annual interest rate on the note payable is: The note payable was created at the end of this month: (January = 1; December = 12) 34 35 9 36 37 38 8. A lawsuit was commenced against the company in 2019. Damages claimed are: Lawyers for the company consider the likelihood of success to be: $30,000 Possible 39 40 41 8% 42 43 h. The interest rate on the mortgage is: Annual payments (blended principal and interest) are made on Dec. 31 and total: The 2019 payment has been recorded as Interest on Long-term Debt expense. $163,200 44 45 46 47 48 10% 49 i. The corporate income tax rate as a percentage of income before income taxes is: Corporate income tax installments during the year have been recorded as Income Tax expense in the records. Assume any 2019 loss before income taxes will result in the refund of income taxes at the current year's income tax rate. 50 51 52 53 54 55 Required Adjusting Entries Gen. Jnl. Trial Bal. Fcl. Stmts. Ready Calculate B C D F 1 Morgan Manufacturing Corp. GENERAL JOURNAL 2 3 Dec. 4 2019 Adjusting entries Debit Credit 5 6 5,400 7 5,000 a. Accounts receivable a To Sales To Sales tax Payable (Being goods sold on account and 8% sales tax applied) 8 400 9 10 11 136,100 12 b. Warranty Expense To Estimated Warranty Liability (Being additional warrenty liability recorded) 136,100 13 14 15 10,000 16 c. Salaries To Salaries Payable (Being Salaries Payable Recorded) 10,000 17 18 19 50,000 20 d. Professional Fee Expenses To Professional fee payable (Being Additional aduit fee payable recorded) 50,000 21 22 23 24 e. Rent Revenue 40,000 40,000 To Unearned Rent Revenue (Being unearned rent revenue for Jan. 2020 recorded) 25 26 27 300 28 f. Interest expense f To interest Payable (Being interest payable on note recorded) 300 29 g. No Entry (only footnote disclosure) 30 31 32 33 130,560 32,640 34 h. Interest on long term debt Mortgage Payable To Interest on long term debt (Being interest and principal portionspaid on LT debt Recorded) 35 163,200 36 37 38 1. Additional tax payable or tax refund based on net income for the year 39 40 41 42 43 Gen. Jnl. Trial Bal. Fcl. Stmts. Copyright # Required Adjusting Entries Ready Calculate M N 0 Adjusted TB Debit Credit 765,400 100,000 300 272,100 10,000 A D F G . K L 1 Trial Balance At December 31, 2019 Account Unadjusted TB Adjustments Debit Credit Adj. # Debit Credit Adj. # 4 Cash in bank 74,000 5 Accounts receivable 760,000 a. 5,400 6 Parts inventory 210,000 7 Corp. income tax receivable 8 Land 10,000,000 9 Building 7,900,000 10 Accumulated dep'n - bldg. 1,580,000 11 Trade accounts payable 140,000 f. 40,000 f 12 Interest payable f. 300 f 13 Estimated current liabilities 14 15 Estimated warranty liability 136,000 b. 136,100 16 Salaries payable c. 10,000 c. 17 Employee inc. taxes pay. 18 FICA Soc. Sec. pay. 19 20 FICA Medicare payable 21 22 Co. health insurance payable 23 24 Corp. income tax payable 25 Sales tax payable 1,000 400 a. 26 Note payable f. 40,000 27 Unearned rent revenue e. 40,000 28 Mortgage payable 1,632,000 h. 32,640 h. 29 Common stock, $1 per sh. 9,000,000 30 Retained earnings 2,963,800 31 Rent revenue 520,000 40,000 32 Sales, net 13,600,000 5,000 33 Cost of goods sold 8,704,000 34 Bad debts expense 3,000 35 Co. health ins. expense 18,400 36 Delivery expense 300,000 37 Dep'n. expense - building 1,000 38 FICA Soc. Sec. exp. 18,400 39 FICA Medicare exp. 9,200 40 Interest and bank charges 50,000 f. 300 f. 41 Interest on long-term debt 163,200 h. 32,640 h. 42 Lawsuit damages expense 0 43 Office supplies expense 99,000 44 Professional fees 40,000 d. 50,000 d. 45 Professional fees Payable 0 d 50,000 d. 46 Salaries expense 460,000 c. 10,000 c. 47 Warranty expense 1,000 b. 136,100 b 48 Corp. income tax exp. 489,600 49 29,436,800 29,436,800 50 Required Adjusting Entries Gen. Jnl. Trial Bal. Fcl. Stmts. Copyright Ready Calculate 1,400 40,000 40,000 1,599,360 e. e. e. 480,000 13,605,000 a. 300 130,560 90,000 50,000 470,000 137,100 + PQ page 1 | D G M N 0 Morgan Manufacturing Corp. 2 Income Statement For the Year Ended December 31, 2019 2019 2018 5 Sales, net $12,756,800 6 Less: Cost of goods sold 9,017,344 7 Gross profit 3,739,456 8 Operating expenses 9 Selling 10 Salaries and benefits 532,510 11 Delivery 282,000 12 Office supplies 99,000 13 Warranty 247,520 14 Total selling 1,161,030 15 General and administrative 16 Bad debts 2,790 17 Depreciation 940 18 Lawsuit damages 19 Professional fees 143,000 20 Total general and adminstrative 146,730 21 Total operating expenses 1,307,760 22 Income from operations 2,431,696 23 Other income 24 Rent revenue 499,200 25 Income before interest and income taxes 2,930,896 26 Interest expense 177,243 27 Income before income taxes 2,753,653 28 Income taxes 275,365 29 Net income $2,478,288 30 31 Morgan Manufacturing Corp. 32 Statement of Changes in Equity 33 For the Year Ended December 31, 2019 34 2019 2018 35 Common Retained 36 stock earnings Total equity Total equity 37 Balance at Jan. 1 $9,000,000 $2,963,800 $11,963,800 $9,485,512 38 Net income 2,478,288 39 Balance at Dec. 31 $9,000,000 $11,963,800 40 41 Morgan Manufacturing Corp. 42 Balance Sheet 43 At December 31, 2019 44 45 Assets 46 Current 2019 2018 47 $41,970 48 Accounts receivable, net 640,000 49 Corporate income taxes receivable 50 Inventories 168,012 Required Adjusting Entries Gen. Jnl. Trial Bal. Fol. Stmts. Copyright Ready Calculate Cash Balance Sheet At December 31, 2019 2019 Assets Current Cash Accounts receivable, net Corporate income taxes receivable Inventories 2018 $41,970 640,000 168,012 849,982 Non-current Land Building, net 23,166,245 6,321,000 29,487,245 $30,337,227 page 2 2 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 Liabilities Current Trade accounts payable Estimated current liabilities Estimated warranty liabilities Note payable Interest payable Salaries and benefits payable Sales tax payable Unearned rent Current portion of mortgage payable Corporate income taxes payable $108,150 84,600 126,900 0 297 10,340 1,540 41,600 180,000 553,427 Non-current Mortgage payable Less: Current portion 18,000,000 (180,000) 17,820,000 18,373,427 Total liabilities Stockholders' Equity Common stock Retained earnings 9,000,000 2,963,800 11,963,800 $30,337,227 Total liabilities and S/H equity 82 83 Required Adjusting Entries Gen. Jnl. Trial Bal. Fcl. Stmts. Copyright Ready Calculate A G H B C E F Before you begin, print out all the pages in this workbook. 1 2 3 4 The unadjusted trial balance of Morgan Manufacturing Corp. at December 31, 2019 is shown on the "Trial Bal" page (see tab below). Refer also to the additional year-end information for the company shown on the "Adjusting Entries" page (see tab below). 5 6 7 8 9 Required: 1 Prepare year-end adjusting entries. General ledger account numbers are not necessary. Show your calculations below each adjusting entry. 10 11 12 13 2 Post the adjusting entries to the trial balance and prepare an adjusted trial balance. 14 15 3 Using the amounts from the adjusted trial balance, complete the financial statements for the year ended December 31, 2019. 16 17 18 19 20 21. 22 23 24 25 26 27 28 29 30 31 Required Adjusting Entries Ready Calculate Gen. Jnl. Trial Bal. Fcl. Stmts. Copyright # A B C D E H 1 G Morgan Manufacturing Corp. Adjusting Entries For the Year Ended December 31, 2019 2 3 4 5 The following additional information is available at the corporation's year-end. GST of 5% only applies when indicated. 6 7 8 a. A sale on account has not been recorded in the amount of: Applicable sales tax is: $5,000 8% 9 10 11 b. Warranty expense for the year as a percentage of sales should be: 2% 12 13 C. Unpaid gross salaries at year-end amount to: $10,000 14 15 16 17 Deductions from unpaid salaries are as follows: Employee Portion Employee income taxes 12% FICA Social Security taxes* 4% FICA Medicare taxes 2% Company health insurance 4% * these are not the actual required percentages Company Portion 0% 4% 2% 4% 18 19 20 21 22 23 d. The estimated year-end audit fees are: $90,000 24 25 26 27 e. Rent revenue consists of 13 equal monthly payments, including one paid in advance for January 2020. 28 29 f. A trade account payable was converted to a note payable during the year. No entry has been made to record this. The note payable is due at the end of 2020. 30 31 32 $40,000 3% 33 The amount of the note payable is: The annual interest rate on the note payable is: The note payable was created at the end of this month: (January = 1; December = 12) 34 35 9 36 37 38 8. A lawsuit was commenced against the company in 2019. Damages claimed are: Lawyers for the company consider the likelihood of success to be: $30,000 Possible 39 40 41 8% 42 43 h. The interest rate on the mortgage is: Annual payments (blended principal and interest) are made on Dec. 31 and total: The 2019 payment has been recorded as Interest on Long-term Debt expense. $163,200 44 45 46 47 48 10% 49 i. The corporate income tax rate as a percentage of income before income taxes is: Corporate income tax installments during the year have been recorded as Income Tax expense in the records. Assume any 2019 loss before income taxes will result in the refund of income taxes at the current year's income tax rate. 50 51 52 53 54 55 Required Adjusting Entries Gen. Jnl. Trial Bal. Fcl. Stmts. Ready Calculate B C D F 1 Morgan Manufacturing Corp. GENERAL JOURNAL 2 3 Dec. 4 2019 Adjusting entries Debit Credit 5 6 5,400 7 5,000 a. Accounts receivable a To Sales To Sales tax Payable (Being goods sold on account and 8% sales tax applied) 8 400 9 10 11 136,100 12 b. Warranty Expense To Estimated Warranty Liability (Being additional warrenty liability recorded) 136,100 13 14 15 10,000 16 c. Salaries To Salaries Payable (Being Salaries Payable Recorded) 10,000 17 18 19 50,000 20 d. Professional Fee Expenses To Professional fee payable (Being Additional aduit fee payable recorded) 50,000 21 22 23 24 e. Rent Revenue 40,000 40,000 To Unearned Rent Revenue (Being unearned rent revenue for Jan. 2020 recorded) 25 26 27 300 28 f. Interest expense f To interest Payable (Being interest payable on note recorded) 300 29 g. No Entry (only footnote disclosure) 30 31 32 33 130,560 32,640 34 h. Interest on long term debt Mortgage Payable To Interest on long term debt (Being interest and principal portionspaid on LT debt Recorded) 35 163,200 36 37 38 1. Additional tax payable or tax refund based on net income for the year 39 40 41 42 43 Gen. Jnl. Trial Bal. Fcl. Stmts. Copyright # Required Adjusting Entries Ready Calculate M N 0 Adjusted TB Debit Credit 765,400 100,000 300 272,100 10,000 A D F G . K L 1 Trial Balance At December 31, 2019 Account Unadjusted TB Adjustments Debit Credit Adj. # Debit Credit Adj. # 4 Cash in bank 74,000 5 Accounts receivable 760,000 a. 5,400 6 Parts inventory 210,000 7 Corp. income tax receivable 8 Land 10,000,000 9 Building 7,900,000 10 Accumulated dep'n - bldg. 1,580,000 11 Trade accounts payable 140,000 f. 40,000 f 12 Interest payable f. 300 f 13 Estimated current liabilities 14 15 Estimated warranty liability 136,000 b. 136,100 16 Salaries payable c. 10,000 c. 17 Employee inc. taxes pay. 18 FICA Soc. Sec. pay. 19 20 FICA Medicare payable 21 22 Co. health insurance payable 23 24 Corp. income tax payable 25 Sales tax payable 1,000 400 a. 26 Note payable f. 40,000 27 Unearned rent revenue e. 40,000 28 Mortgage payable 1,632,000 h. 32,640 h. 29 Common stock, $1 per sh. 9,000,000 30 Retained earnings 2,963,800 31 Rent revenue 520,000 40,000 32 Sales, net 13,600,000 5,000 33 Cost of goods sold 8,704,000 34 Bad debts expense 3,000 35 Co. health ins. expense 18,400 36 Delivery expense 300,000 37 Dep'n. expense - building 1,000 38 FICA Soc. Sec. exp. 18,400 39 FICA Medicare exp. 9,200 40 Interest and bank charges 50,000 f. 300 f. 41 Interest on long-term debt 163,200 h. 32,640 h. 42 Lawsuit damages expense 0 43 Office supplies expense 99,000 44 Professional fees 40,000 d. 50,000 d. 45 Professional fees Payable 0 d 50,000 d. 46 Salaries expense 460,000 c. 10,000 c. 47 Warranty expense 1,000 b. 136,100 b 48 Corp. income tax exp. 489,600 49 29,436,800 29,436,800 50 Required Adjusting Entries Gen. Jnl. Trial Bal. Fcl. Stmts. Copyright Ready Calculate 1,400 40,000 40,000 1,599,360 e. e. e. 480,000 13,605,000 a. 300 130,560 90,000 50,000 470,000 137,100 + PQ page 1 | D G M N 0 Morgan Manufacturing Corp. 2 Income Statement For the Year Ended December 31, 2019 2019 2018 5 Sales, net $12,756,800 6 Less: Cost of goods sold 9,017,344 7 Gross profit 3,739,456 8 Operating expenses 9 Selling 10 Salaries and benefits 532,510 11 Delivery 282,000 12 Office supplies 99,000 13 Warranty 247,520 14 Total selling 1,161,030 15 General and administrative 16 Bad debts 2,790 17 Depreciation 940 18 Lawsuit damages 19 Professional fees 143,000 20 Total general and adminstrative 146,730 21 Total operating expenses 1,307,760 22 Income from operations 2,431,696 23 Other income 24 Rent revenue 499,200 25 Income before interest and income taxes 2,930,896 26 Interest expense 177,243 27 Income before income taxes 2,753,653 28 Income taxes 275,365 29 Net income $2,478,288 30 31 Morgan Manufacturing Corp. 32 Statement of Changes in Equity 33 For the Year Ended December 31, 2019 34 2019 2018 35 Common Retained 36 stock earnings Total equity Total equity 37 Balance at Jan. 1 $9,000,000 $2,963,800 $11,963,800 $9,485,512 38 Net income 2,478,288 39 Balance at Dec. 31 $9,000,000 $11,963,800 40 41 Morgan Manufacturing Corp. 42 Balance Sheet 43 At December 31, 2019 44 45 Assets 46 Current 2019 2018 47 $41,970 48 Accounts receivable, net 640,000 49 Corporate income taxes receivable 50 Inventories 168,012 Required Adjusting Entries Gen. Jnl. Trial Bal. Fol. Stmts. Copyright Ready Calculate Cash Balance Sheet At December 31, 2019 2019 Assets Current Cash Accounts receivable, net Corporate income taxes receivable Inventories 2018 $41,970 640,000 168,012 849,982 Non-current Land Building, net 23,166,245 6,321,000 29,487,245 $30,337,227 page 2 2 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 Liabilities Current Trade accounts payable Estimated current liabilities Estimated warranty liabilities Note payable Interest payable Salaries and benefits payable Sales tax payable Unearned rent Current portion of mortgage payable Corporate income taxes payable $108,150 84,600 126,900 0 297 10,340 1,540 41,600 180,000 553,427 Non-current Mortgage payable Less: Current portion 18,000,000 (180,000) 17,820,000 18,373,427 Total liabilities Stockholders' Equity Common stock Retained earnings 9,000,000 2,963,800 11,963,800 $30,337,227 Total liabilities and S/H equity 82 83 Required Adjusting Entries Gen. Jnl. Trial Bal. Fcl. Stmts. Copyright Ready Calculate
