M. - N O P Q R S T U a 4 Credit Debit 28,250 28,250 AB E F HT Solution: 5 Part A: 6 Jelly World, Inc., is a purveyor of artisan jellies and is known for its high quality Journal Entries: 7 merchandise. The business started up in January 2015 and has been quite 1 Cash 8 successful. Complete the Journal Entries for all 2019 transaction and adjustment Accounts Receivable 9 information listed below. You do not have to date your journal entries. Be sure to 10 sum the debit and credit columns to confirm they balance. The first journal entry 11 has been completed for you. (15 points-graded for accuracy and format, including 12 proper use of Excel spreadsheet links and formulas) 13 14 There is no Check Figure for Part A. 15 16 Transaction and Adjustment Data: 17 1 Collected the $28,250 of accounts receivable due to them at year end 2018. 18 2 Paid the $297,899 owed on account at year end 2018. 19 3 Paid the interest of $24,975 that was payable at year end 2018. 4 Made a payment on the mortgage note of $11,000. 5 Paid $5,292 to renew their annual insurance policy on March 1, 2019. 22 6 Made a payment on the long-term note of $83,000. 23 7 Issued 1,600 shares of Common Stock on March 1, 2019 for $10 per share. 24 8 Paid the taxes owed of $49,885 at year end 2018. 9 Purchased additional Furniture & Equipment on April 1, 2019 costing $64,440 due to increased shipping activities for their growing online presence. 27 10 Purchased inventory during the year that cost $1,678,222. The company owed 28 $396,430 on these purchases at year end 2019. 11 Purchased a new computerized sales system on June 30, 2019 for $74,600 in 30 cash. The system has a useful economic life of 4 years and will be depreciated 31 monthly using the straight line method. The system has a salvage value of 32 12 Sales of artisan jellies for 2019 were $2,645,320. At December 31, 2019, 33 $52,832 of this amount was still listed as receivable. Part A. JEs & Background Info Part B. T-Accts & Acct Equation Part C. Trial Bal & Closing JE Part D. Multiple-Step ... + 20 25 26 G . M 3 P Q R S 33 42 AB DE E H | 31 monthly using the straight line method. The system has a salvage value of 32 12 Sales of artisan jellies for 2019 were $2,645,320. At December 31, 2019, $52,832 of this amount was still listed as receivable. 34 13 The total cost of the goods sold during 2019 was $1,689,576. 35 14 Supplies inventory of $4,860 was purchased with cash during 2019. Total 36 supplies inventory of $806 was still on hand at year end 2019. 37 15 Total Salaries Expense for the year was $137,242 and total interest expense 38 was $20,745. Salaries of $7,058 and interest of $20,745 are still payable at year 39 16 Depreciation expense needs to be recorded on ALL buildings, furniture and 40 equipment, and the new computer system at year end 2019. All items are 41 depreciated on a monthly basis using straight line depreciation. The building has a useful life of 30 years and the furniture and equipment is depreciated 43 over 5 years--there is no salvage value on the buildings or the furniture and 44 equipment. As noted above, the new sales system has a useful life of 4 years 45 and has a salvage value of $8,000. 17 The Prepaid Insurance and the Supplies Inventory need to be adjusted at year end 2019 so that the proper amount for insurance expense and supplies 48 expense is recorded. See items 5 and 14 for details. (If you adjusted the supplies in #14, do not do it again) 50 18 Estimated income tax payable amounts for 2019 equaling $80,500 were paid 51 during the year as they became due. 52 19 The company paid out cash dividends totaling $3,000 to its shareholders. 53 20 The company determined that two customer accounts were not collectible, 54 and wrote off $634 on December 31. 55 21 The company believes that 2% of ending Accounts Receivable is a reasonable 56 estimate of its Allowance for Doubtful Accounts balance. The Company uses 57 the allowance method to record bad debts. 58 22 Tax expense is 21% of Income before Income Tax. 59 60 Part A. JEs & Background Info Part B. T-Accts & Acct Equation Part C. Trial Bal & Closing JE 46 47 end Part D. Multiple-Step ... + G M ABC DE F. 61 Background Information: The Balance Sheet for December 31, 2018 is presented 62 here to provide you with the beginning balances needed for your T-Accounts. 63 Jelly World, Inc. Balance Sheet 66 December 31, 2018 64 68 71 Assets 69 Current Assets 70 Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Inventory 75 Prepaid Insurance Total Current Assets 443,437 28,250 (565) 1,207,665 677 824 1,680,288 74 76 77 80 78 Property, Plant, and Equipment 79 Land Furniture and Equipment 81 Accumulated Depreciation--Furniture and Equipment 82 Buildings 83 Accumulated Depreciation--Buildings 84 Net Property, Plant, and Equipment 145,500 22,500 (15,000) 630,000 (63,000) 720,000 Total Assets $ 2,400,288 88 89 Liabilities and Stockholders' Equity 90 Current liabilities Part A. JEs & Background Info Part B. T-Accts & Acct Equation Part C. Trial Bal & Closing JE Part D. Multiple-Step ... + Ready E --_ - + 110% 89 Liabilities and Stockholders' Equity 90 Current Liabilities Accounts Payable 92 Interest Payable 93 Taxes Payable Total Current Liabilities 297,899 24,975 49,885 372,759 94 95 320,000 235,000 555,000 99 96 Long-term Liabilities 97 Mortgage Note Payable 98 Note Payable Total Long-term Liabilities 100 101 Total Liabilities 102 103 Stockholders' Equity 104 Common Stock, 13,000 shares issued and outstanding, $10 105 Retained Earnings 106 Total Stockholders' Equity 927,759 130,000 1,342,529 1,472,529 107 108 Total Liabilities and Stockholders' Equity 2,400,288 109 110 111 112 113 114 115 116 Part A. JEs & Background Info Part B. T-Accts & Acct Equation Part C. Trial Bal & Closing JE Part D. Multiple-Step