inclme statement

Tab Template To-Do a) JE Journalize the listed transactions (JE = Journal Entries) b) Postt Post the journal entries to the appropriate general ledger accounts c) TB Prepare a trial balance as of December 31. (TB = Trial Balance) d) Adj JE Journalize the adjusting entries based on the following additional information (Adj TB = Adjusted Trial Balance) 1) The equipment had 20-year life with no salvage value. Use Double Declining Balance method of depreciation 2) Supplies on hand at year end amount to $25.000 3) At year end pay additional interest is due on the note payable 4) The insurance policy covered a 12 month period commencing on June 1 5) At year end, Fernandez had provided $120,000 of unbilled services to customers. These services will be billed in early 20X8. e) Post2 Post the adjusting entries to the appropriate general ledger accounts 1) Adj TB Prepare an adjusted trial balance as of December 31 g) Fin St Prepare an income statement and statement of retained earnings for and a classified balance sheet at the end of the year h) Closing Journalize and post closing entries 0 Post3 Post the colsing entries to the appropriate general ledger accounts 3) Close TB Prepare a post-closing trial balance as of December 31 Fernandez Corporation's Chart of Accounts 6 Accounts Payable 27 Accounts Receivable 28 Accumulated Depreciation 29 Capital Stock 30 Cash Instructions Transactions JE b]Post dA JE Post DA TE in St Closing Posta Close TE 328 fx 5 A B C D On January 1, 20X7 Jacqueline Fernandez formed a corporation to purchase wheat harvesting equipment and provide contract support services to 1 farmers throughout the Midwest Information about the first year of operation follows: 2 Jan. 1 Investors provided $2,500,000 of cash in exchange for stock of Fernandez Corporation 3 Jan 1 Purchased combines and trucks in exchange for $600,000 cash and a $1,200,000 note payable with 8% interest 4 Feb. 7 Purchased $80,000 of supplies on account that will be needed during the upcoming harvest 5 Mar. 3 Paid wages of $185,000 Apr. 1 Billed customers for services rendered in the amount of $300,000 7 Apr 11 Paid $50,000 toward the purchase of February 7 8 June 1 Purchased a $48,000 insurance policy, recorded as prepaid insurance 9 June 6 Collected $200,000 on accounts receivable 10 June 9 Paid wages of $280,000 11 June 15 Paid $35,000 for fuel costs 12 June 20 Paid $25,500 for lodging costs incurred by crew 13 June 30 Paid interest due plus $100,000 to reduce the balance of the note payable Aug. 1 Billed customers for services provided in the amount of $850,000 15 Sept. 3 Collected $700,000 on accounts receivable 16 Sept. 16 Purchased $75,000 of supplies on account 17 Sept. 25 Paid $80,500 for fuel costs 18 Oct. 20 Paid $19,500 for lodging costs incurred by crew Nov. 3 Paid wages of $125,000 20 Dec. 15 Collected $150,000 as deposits from customers who contracted for 20X8 harvesting services 21 Dec 31 Declared and paid a $35.000 dividend to shareholders 22 23 24 25 26 27 28 14 19 structions Transactions Posti OTE dad Postz HA TE in St ng Posts jclose FERNANDEZ CORPORATION Income Statement For the Year Ending December 31, 20X7 Revenues $ Expenses $ 2 13 14 15 Net income $ IT FERNANDEZ CORPORATION Statement of Retained Earnings For the Year Ending December 31, 20X7 $ Beginning retained earnings Plus: Net income $ Less: Dividends Ending retained earnings $ FERNANDEZ CORPORATION Balance Sheet December 31, 20X7 Assets Current assets Property, plant & equipment $ 6 Total assets $ -7 8 49 Liabilities Current liabilities 50 51 52 53 54 Long-term liabilities 55 56 Total liabilities $ Stockholders' equity 57 58 59 60 $ 61 Total stockholders' equity Total liabilities and equity 82 U 65 66