Justing Journal MES accoun Background: The Boy Scouts National Council has a 12:31 year-end. The current year that applies to the below examples is 2019. This is a non-profit organization who operates the Boy Scouts as a national level only, it interacts with troops and Councils at local levels. The main source of revenue for this organization is magazine subscription sales for their magazine, Bay's Life. They maintain their inventory magazine hard copies) after they have been printed. They also have a retail side of their husiness, and earn revenue from selling goods (palches, uniforms, etc) in their store locations. The organization's husiness madel is historically stable, but they want to make sure they have another income source in case magazines or palches became less popular and after all, the Boy Scouts motto is "lle Prepared"). So, the National Council loans a portion of its cash to troops to earn extra income on interest Its most recent loan was to Troop 1002, in which earns the National Council $400 a year in interest. This loan was started in year 2017 Instructions: Complete the journal entries below. In the "Impact" column, include the impact increase, decrease, no effect) of choosing the cash method over the accrual method journal entry has on the following financial statement areas: Assets, Linbilities. Shareholders' Equity (SHE), and Net Income (NI). Journal Entry for Accrual Method Journal Entry for Cash Method Impact Economie Event Jan 20 - The National Council purchased magazine inventory using cash in the amount of $20,000 Assets Liabilitics SHE NI Assets Mar 10. A large troon came into a National Council and ordered 100 patches at S5 each. Because of the size of the purchase, the goods were sold on credit, (include the journal entry for the sale only) Liabilities SHE INI Asscts Mar 20 - The troop had successful popcoru sales the following week! Enough to pay for the patches purchased. Cash is received for patches sold above. Record the cash reciept for patches sold on Mar 10. Liabilities SHE NI Liabilities The Boy Scouts National Council does not own the building they use as their corporate headquarters. The organization paid rent in advance for a full year on December 1, 2019 in the amount of 530,000. It's a big building because they have 75 cmployees. Record the payment for rent in advance on December 1, 2019. SHE NI Assets As of 12/31/2019, one month of rent passed (December 1 - December 31). Record the adjusting journal entry. Liabilities ISHE INI Assets Liahilities SHT Salaries for all employees during the period of December 15th through the 31st) were corned. But, hased on the pay schedule, the National Council will not pay these salaries to employees until January 15th, 2020. Record the journal entry that the National Council will need to make at 12/31/2019, assuming the total employee pay is $75000 during thase two weeks (approx. $1000 per employee). The National Council paid their employees salary for the period of December 15th through December 31st on 1/15/2020 , NI Assets Liabilities SHE NI Asscts A member of troop 435 called the National Council store to inquire about the availability and price of ordering 50 neckerchiefs and 20 pair of socks. The troop did not place an order at that time. Liabilitics SHE NI Assets Liabilities Record the entry for interest owed by Troop 1002 (see Background section above) at 12/31/2019. The troop has not yet paid the interest owed on 12/31/2019 and plan to pay the next year. Popcorn sales weren't enough for the troop. Hopefully the car wash they have planned on 1/4/2020 will be successful! SIIE NI Assets The car wash lived up to the famous Rose Royce song! Troop 1002 was able to pay the interest owed on 1/4/2020. The check was a little wet. Liabilities SHE A B D E Assets 3 The car wash lived up to the famous Rose Royce song! Troop 1002 was able to pay the interest owed on 1/4/2020. The check was a little wet. Liabilities SHE NI 7. Assets Sold 1 magazine subscription for cash to an eager Eagle Scout on 6/30/2019, to be distributed over the next year. An annual magazine subscription is $120 in total, or $10 a month. Record the journal entry on 6/30/2019. Liabilities SHE NI Assets The monthly magazine was mailed to the eager Eagle Scout for the months of July - December 2019. The National Council did not book a journal entry reflect this until 12/31/2019. Record the adjusting journal entry. Liabilities SHE NI 5 7 3 2 1 2 3 1 5