JAX B D E F G u H K (This problem is adapted from Problem 4B-2, part 2, in your text.) Cactus Company's annual accounting year ends on June 30. It is June 30, 2017, and all of the 2017 entries except year-end adjusting journal entries, and the entry to record dividends, have been made. Cactus Company is a service company and has two sources of revenue: Service and Maintenance. Because there are no sales of inventory, the income statement does not contain a line for Gross profit, but does contain a line for Total revenues (the sum of Service revenue and Maintenance revenue). Each of the remaining sheets in this file contains 1) a description of a transaction and 2) a partially completed balance sheet, Income statement, and statement of retained earnings. Transactions A through H require adjusting entries on June 30, 2017; transaction I requires an entry to record dividends declared and paid. For each transaction, show how recording the necessary entry would change the financial statements. Each transaction is independent, so you can work through the file in any order you like. All changes are entered in the blue cells on the statements. Each statement has two columns, Values in the first column are selected from a drop-down menu. For a given transaction, there may be several (or even many) blue cells that do not need to be changed. Instructions Transa Trans b Trans c Trans d Transe Transf Transh Trans g ADY RI 03 ED EFG Income Statement 2 3 4 5 Statement of Financial Position ASSETS Current assets: Total revenues Operating expenses: 7 Transaction. The company earned service revenge of $2,000 on a special job that was completed June 29, 2017 Collection will be made during July 2017, no entry has been recorded. Total current assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating Expenses Earnings from operations 10 11 12 13 14 Earnings before income taxes Net income Total current liabilities NEBER Total abilities Shareholders' Equity Statement of Retained Eamings Beginning balance Total shareholders' equity Total abilities and shareholders' equity Ending balance 20 20 30 31 34 35 26 39 40 41 Ta v 1 Trad READY D EFG Statement of Financial Position ASSETS Current assets: Income Statement Total revenues Operating expenses Total current assets Transaction on March 31, 2017, Cactus paid a month premium for property insurance in the amount of $3,200 for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations Earnings before income taxes Net income Total current liabilities 3 4 15 16 17 18 19 20 21 22 Total liabilities Shareholders' Equity Statement of Retained Eamings Beginning balance Total shareholders' equity Total liabilities and shareholders'equity Ending balance 24 35 26 27 26 129 30 31 33 35 36 19 0 2 Trans Trans Trans instructions Trandra HEAD A D EFG Statement of Financial Position ASSETS Current assets: Income Statement Transaction At lune 30, 2017 wages of $900 were earned by employees but not yet paid. The employees will be paid on the next payroll date, which is oly 13, 2017 Total revenues Operating expenses 7 Total current assets 9 10 11 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Llabilities Current liabilities Total operating expenses Earnings from operations Earnings before income taxes 13 14 Net income 15 16 Total current liabilities 17 10 Total abilities Shareholders' Equity ement of Retained Earnings Beginning balance 20 21 22 Total shareholders' equity Total liabilities and shareholders' equity Ending balance 25 26 29 30 33 21 36 59 T TH | Tram structions Transa Trans Trans READR OS Q Erabieding Xf C D EFG H Statement of Financial Position ASSETS Current assets: Income Statement 4 Total revenues Operating expenses Total current assets Transaction on June 1, 2017, Cactus collected two months maintenance revenue of $450 At that date, Cactus debited Cash and credited Uneamed Maintenance Revenue for $450 One-half of it has now been carned but not yet recorded. 10 TI Total assets LIARITIES AND SHAREHOLDERS' EQUITY Total operating expenses Earnings from operations 12 Current liabilities: Earnings before income taxes Net income Total current abilities 16 18 19 Total liabilities Shareholders' Equity statement of Retained Camings Beginning balance Total shareholders' equity Total liabilities and shareholders'equity Ending balance 26 20 30 31 311 38 39 0 Trini Trans ristructions T Transb Trans Trans READ RE DE Protected Pealed A D EFG Statement of Financial Position ASSETS Current assets: 3 4 5 6 Income Statement Total revenues Operating expenses Total current assets Transaction A service truck was purchased on July 1, 2016. The truck cost $ 16,000 and was expected to have a useful life to the business of years, and a residual value of $4,000. The business uses the straight-line method of calculating depreciation Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: 10 11 12 12 Total operating expenses Earnings from operations Earnings before income taxes Net income 14 15 16 17 Total current liabilities Total liabilities Shareholders' Equity 19 Statement of Retained Earnings Beginning balance 19 20 21 Total shareholders' equity Total liabilities and shareholders' equity Ending balance 24 25 26 28 29 30 31 22 12 34 35 37 18 19 40 41 TE Trans Trans Tranda Trans Intructions HEADY Q R! 03