Info set for Great Products Inc. 1. A physical count of supplies at December 31, 2020 shows that $3,000 of supplies are still available. 2. The annual depreciation on the building for the year was $75,000. 3. The final payroll of the year was December 23, 2020. Since then, $11,000 of wages have been incurred. 4. The insurance policy of $7,500 was purchased on January 1, 2020 and lasts for 3 years. 5. On December 20, 2020, Great Products Inc. sold $ 1000 of finished goods to customer 1 at a price of $1500. The terms per the invoice were 2/10, n/30 and Great Products uses the net method for discounts. As of December 31, 2020 customer 1 had still not paid. 6. On December 31, 2020, Great Products Inc. shipped $2000 of finished goods based on customer 2's purchase order priced at $3500 with F.O.B. shipping point. Unfortunately due to the rush at year end, Great Products forgot to send out the invoice with the product. The product's price comes with a built-in 1-year warranty and no additional extended warranty was purchased. Great Products estimates these types of warranties to cost $300 on average per year. (Assume terms will be simply n/30) 7. Great Products Inc. realized that they had significantly overestimated bad debt in 2019 as many of their customers began to pay in 2020 in a timely manner. At the end of 2020, Great Products estimates that they will only need a reserve for bad debt of $7,000. 8. Great Products plans to hold onto their debt investments until maturity on 9/31/2022. The equity investments are public company stocks that represent trading securities. Any interest revenues and expenses(for debt) for 2020 have already been received or paid for at year-end, respectively. (no need for further interest adjustments) Instructions: 1. Based on the fact pattern above, make adjusting entries onto the AJE tab. 2. Fill out the adjustments columns based on the entries. (Demonstrate SUMIF). 3. Create formulas for the adjusted trial balance columns. 4. Isolate the income statement accounts from the adjusted trial balance and calculate Net Income. 5. Figure out what retained earnings should be at the end of 2021, assuming that Great Products Inc. does not pay dividends to shareholders. 6. Fill in the classified balance sheet tab based on your information. Please combine inventory into one "Inventory" category. Make sure to place accounts in the correct categories and in the correct order! (they might not be in the correct order in the TB *Hint: You will use V-Lookup for most and manually calculated RE and inventory Notes: *Checks have been placed in to make sure that debits equal credits and that assets=liab+eq on the balance sheet. If any of these become a nonzero amount and turn red (conditional formatting), please double check to see where the error was made. *When completing the balance sheet, values will be placed in 1 column only unlike the Trial Balance. Make sure to appropriate negative values for contra-accounts. Info set for Great Products Inc. 1. A physical count of supplies at December 31, 2020 shows that $3,000 of supplies are still available. 2. The annual depreciation on the building for the year was $75,000. 3. The final payroll of the year was December 23, 2020. Since then, $11,000 of wages have been incurred. 4. The insurance policy of $7,500 was purchased on January 1, 2020 and lasts for 3 years. 5. On December 20, 2020, Great Products Inc. sold $ 1000 of finished goods to customer 1 at a price of $1500. The terms per the invoice were 2/10, n/30 and Great Products uses the net method for discounts. As of December 31, 2020 customer 1 had still not paid. 6. On December 31, 2020, Great Products Inc. shipped $2000 of finished goods based on customer 2's purchase order priced at $3500 with F.O.B. shipping point. Unfortunately due to the rush at year end, Great Products forgot to send out the invoice with the product. The product's price comes with a built-in 1-year warranty and no additional extended warranty was purchased. Great Products estimates these types of warranties to cost $300 on average per year. (Assume terms will be simply n/30) 7. Great Products Inc. realized that they had significantly overestimated bad debt in 2019 as many of their customers began to pay in 2020 in a timely manner. At the end of 2020, Great Products estimates that they will only need a reserve for bad debt of $7,000. 8. Great Products plans to hold onto their debt investments until maturity on 9/31/2022. The equity investments are public company stocks that represent trading securities. Any interest revenues and expenses(for debt) for 2020 have already been received or paid for at year-end, respectively. (no need for further interest adjustments) Instructions: 1. Based on the fact pattern above, make adjusting entries onto the AJE tab. 2. Fill out the adjustments columns based on the entries. (Demonstrate SUMIF). 3. Create formulas for the adjusted trial balance columns. 4. Isolate the income statement accounts from the adjusted trial balance and calculate Net Income. 5. Figure out what retained earnings should be at the end of 2021, assuming that Great Products Inc. does not pay dividends to shareholders. 6. Fill in the classified balance sheet tab based on your information. Please combine inventory into one "Inventory" category. Make sure to place accounts in the correct categories and in the correct order! (they might not be in the correct order in the TB *Hint: You will use V-Lookup for most and manually calculated RE and inventory Notes: *Checks have been placed in to make sure that debits equal credits and that assets=liab+eq on the balance sheet. If any of these become a nonzero amount and turn red (conditional formatting), please double check to see where the error was made. *When completing the balance sheet, values will be placed in 1 column only unlike the Trial Balance. Make sure to appropriate negative values for contra-accounts