It is January 2019 and you have just been hired as the Chief Financial Officer for Alexander Restaurant Supply (ARS), a corporation that began as a distributor of general purpose restaurant equipment, such as ovens, grilling stations, deep fryers, refrigerators, dishwashers, etc. ARS has just finished an eventful year in which it launched a new software product and a new training service. ARS also entered into a restaurant construction venture.

Your predecessor left the firm in a hurry. Your primary responsibility is to finish the 2018 year-end financial statements. Specifically, you must complete:

1) any necessary correcting journal entries

2) all the adjusting journal entries

3) the Trial Balances

4) the closing journal entries

5) a complete Multi-step Income Statement for the year ended Dec. 31, 2018

6) a classified Balance Sheet as of December 31, 2018.

You, of course, will include supporting documentation, including a brief description of the issue. For each issue, you must provide:

a brief description of the issue and your actionthat is, identify whether:

1) if an incorrect entry was made, what was the incorrect entry, why was it incorrect, and how did you correct it; or

2) if a normal adjusting entry is needed, why the adjustment is needed; or

3) if no change or adjustment is needed

detailed calculations to support any values you use in your journal entries

Alexander Restaurant Supply		Unadjusted Trial Bal. 12/31
12/31/18		Debit	Credit
Cash		2,761,300
Accounts Receivable		465,100
Allowance for Bad Debt			1,100
Inventory		1,350,000
Purchases		14,404,050
Construction in Progress		1,548,000
Billings on Contract			1,510,000
Property, Plant & Equipment		12,000,000
Accumulated Depreciation			7,200,000
Accounts Payable			4,950,000
Income Tax Payable			54,400
Common Stock			600,000
Retained Earnings			343,450
Product Sales Revenue			16,872,000
Sales Returns		202,500
Chef School Revenue			14,400,000
Kitchen Manager Revenue			4,000,000
Cost of Product Sales		0
Cost of Chef School Services		11,520,000
Cost of Kitchen Manager Software		2,400,000
General and Admin Expense		3,280,000
Bad Debt Expense
Depreciation Expense
Unearned Revenue
Income Summary
Insert more account rows
if necessary
TOTAL		49,930,950	49,930,950

1. ARSs effective tax rate is 25%. Ignore all other taxes. There are 200,000 shares of common stock outstanding for 2018.