Need Adjusting Journal Entries. Adjusted Trail Balance. Income Statement. Retained Earnings. Balance Sheet. Closing Entries. Post Closing Trail Balance. I have plenty of questions left so take as many as needed. 1st page is unadjusted Trail Balance. Than adjustments that are needed and so on. Thank You.

Adjustments needed

C ABC Corporation Unadjusted Trial Balance December 31, 2016 U AWN- Credit Debit 759,444 442,120 6 Cash 7 Accounts receivable 8 Allowance for doubtful accounts 9 Inventory 10 Allowance to Reduce Inventory to NRV 11 Purchases 12 Prepaid insurance 13 Land 14 Building 15 Accumulated depreciation building 16 Equipment 17 Accumulated depreciation equipment 247,000 6,750 88,000 37,500 1,150 21,600 9,000 C ABC Corporation Unadjusted Trial Balance December 31, 2016 UT AWN- Credit Debit 759,444 442,120 6 Cash 7 Accounts receivable 8 Allowance for doubtful accounts 9 Inventory 10 Allowance to Reduce Inventory to NRV 11 Purchases 12 Prepaid insurance 13 Land 14 Building 15 Accumulated depreciation building 16 Equipment 17 Accumulated depreciation equipment 247,000 6,750 88,000 37,500 1,150 21,600 9,000 21,600 9,000 50,000 88,851 40,000 99,000 13,500 700,000 16 Equipment 17 Accumulated depreciation: equipment 18 Patent 19 Accounts payable 20 Notes payable 21 Income taxes payable 22 Uneamed rent revenue 23 Bonds Payable 24 Premium on Bonds Payable 25 Common stock 26 PIC In Excess of Par-Common Stock 27 Retained earings 28 Treasury stock 29 Dividends 30 Sales Revenue 31 Advertising expense 32 Wages expense 33 Office expense 56,774 125,000 40,000 20,000 28,000 790,000 9,240 62,150 28,500 AT DELDE EFGHIJK 1 On March 1, 2016, ABC purchased a one-year liability insurance policy for $27,000 Upon purchase, the following joumal entry was made: D: Prepaid insurance 27,000 Cr Cash 27,000 The expired portion of insurance must be recorded as of 12/31/16 Notice that the expired portion from March through November has been recorded already Make sure that the Prepaid Insurance balance after the adjusting entry is correct. 2 Depreciation expense must be recorded for the month of December The building was purchased on February 1, 2016 for $37,500 with a remaining useful life of 25 years and a salvage value of $3,000 The method of depreciation for the building is straight-line The equipment was purchased on February 1, 2016 for $21,600 with a remaining useful life of 4 years and a salvage value of $1,800 The method of depreciation for the equipment is double-declining balance Depreciation has been recorded for the building and equipment for months February through November 3 On December 1, 2016, XYZ Co. agreed to rent space in ABC's building for $4,500 per month, and XYZ paid ABC on December 1 in advance for the first three months' tent. The entry made on December 1 was as follows: Dr Cash 13,500 Ct Uneamed rent revenue 13,500 The uneared revenue account must be adjusted to reflect the amount eated as of 12/31/16. 4 Per timecards, from the last payroll date through December 31, 2016, ABC's employees have worked a total of 200 houes. Including payroll taxes, ABC' wage expense averages about $25 per hour. The next payroll date is January 5, 2017 The liability for wages payable must be recorded as of 12/31/16 3 On December 1, 2016, XYZ Co. agreed to rent space in ABC's building for $4,500 per month, and XYZ paid ABC on December 1 in advance for the first three months' rent The entry made on December 1 was as follows: D-Cash 13,500 Ct Uneamed rent revenue 13,500 The une amed revenue account must be adjusted to reflect the amount eated as of 12/31/16 4 Per timecards, from the last payroll date through December 31, 2016, ABC's employees have worked a total of 200 hou Including payroll taxes, ABC's wage expense averages about $25 per hour. The next payroll date is January 5, 2017 The liability for wages payable must be recorded as of 12/31/16. 5 On November 30, 2016, ABC borrowed $40,000 from American National Bank by issuing an interest-bearing note paya This loan is to be repaid in three months on February 28, 2017), along with interest computed at an annual rate of 9% The entry made on November 30 to record the borrowing was Di Cash 40,000 CtNotes payable 40,000 On February 28, 2017 ABC must pay the bank the amount borrowed plus interest. Assume the beginning balance for Notes Payable is correct. Interest through 12/31/16 must be accrued on the $40,000 note. 6 ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete physical inventory at year-end. A plnysical count was taken on December 31, 2016, and the inventory on-hand at that time totaled $100,000, which reflects historical cost Record the adjusting entry for properly recognizing 2016 Cost of Goods Sold Hunt. This was the first year of operations, so beginning intentant halen 6 ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete plrysical inventory at year-end. A physical count was taken on December 31, 2016, and the inventory on-hand at that time totaled $100,000, which reflects historical cost. Record the adjusting entry for properly recogruising 2016 Cost of Goods Sold. Hint. This was the first year of operations, so beginning inventory balance i zeto. Additionally, ABC adheres to GAAP by recording ending inventory at the lower of cost and not realizable value at a total inventory level A review of inventory data further indicated that the current retail sales value of the ending inventory is $90,000 and estimated costs of completion and shipping is 8% of retail. Be sure to make an additional adjustment, if necessary, to properly value ending invento wing the Loss and Allowance methodology For Income Statement presentation purposes, be sure to use the Loss Method for accountir for adjustments of inventory to market value Tom 7 It would be unusual for a company to have an asset impairment in Year 1, but for the sake of this example, ABC determined that their intangible asset might be impaired on December 31, 2016. Record the impairment adjustment, if any The expected future undiscounted net cash flows for this intangible asset totals $48,000, and the fair value of the asset is $45,000 NO 8 On 7/1/16, ABC purchased 4,000 shares of its own stock from existing stockholders as treasury stock. The cost of the treasury ...000.000.... .. . .......... .... -1... 11/2014 Instructions Unadjusted Trial Balance Adjustments Needed Adjusting Journal Entries Adjusted Trial Balance 1 Type here to search D U L 48,000, and the fair value of the asset is $45,000 8 On 7/1/16, ABC purchased 4,000 shares of its own stock from existing stockholders as treasury stock. The cost of the treasury stock was $5 per share, or $20,000 in total. The effects of this transaction are already shown in the unadjusted trial balance. On 12/31/16, ABC Teissued 2,000 shares of the treasury stock at $8 per share. Record the journal entry required for the reissuance of the treasury stock. To refresh your memory, treasury stock is wually accounted for at cost. When treasury stocks reissued for more than its cost, a separate Paid-in Capital-Treasury Stock account should be used to account for the excess proceeds over cost. (See your Principles of Accounting textb or Chapter 18 of your Intermediate Accounting textbook for a review) 9 On 12/31/16, ABC ued 10,000 shares of $1 par value common stock at the closing market price of $10 per share. Prepare ABC's journal to reflect the issuance of the stock on 12/31/16. To refresh your memory, a Paid-in Capital in Excess of Par account should be used to acco excess proceeds over par value in a stock issuance transaction. (See your Principles of Accounting textbook or Chapter 18 of your Intermedia Accounting textbook for a review.) 10 On 7/1/16, ABC sold 10% bonds having a maturity value of $700,000 for $756,773 50, resulting in an effective yield of 8%. The bonds are dated 7/1/16, and mature 7/1/21. Interest is payable semiannually on July 1 and January 1 ABC uses the effective interest method of amortization for bond premium or discount. Record the adjusting entry for the accrual of interest and the related amortization on 12/31/16 Hint Develop an abbreviated amortization schedule to accurately determine the interest expense Instructions Unadjusted Trial Balance Adjustments Neecled Adjusting Journal Entries Adjusted Trial Balance Type here to search I De to account for the exces proceeds over cost. (See your Principles of Accounting text or Chapter 18 of your Intermediate Accounting textbook for a review) 9 On 12/31/16, ABC w ed 10,000 shares of $1 par value common stock at the closing matket pace of $10 per shate. Prepare ABC's jouma to reflect the issuance of the stock on 12/31/16. To te fresh your memca Paid-in Capital in Excess of Pat account should be used to ace excess proceeds over par value in a stock issuance transaction. (See your Principles of Accounting textbook or Chapter 18 of your Intermediul Accounting textbook for a review) 10 On 7/1/16, ABC sold 10% bonds having a matunty value of $ 700,000 for $756,773.50, resulting in an effective yield of 8%. The bonds are dated 7/1/16, and mature 7/1/21. Interest is payable semiannually on July 1 and January 1. ABC uses the effective interest method of amortization for bond premium or discount Record the adjusting entry for the accrual of interest and the related amortization on 12/31/10 Hint Develop an abbreviated amortization schedule to accurately determine the interest expense. 11 ABC Corporation prepares an aging schedule on 12/31/16 that estimates total uncollectible accounts at $75,000. Assuming that the allowane method is used, prepare the entry to record bad debt expense for the calendar year. Do this final adjusting entry after preparing the Income Statement through the line "Income Before Income Taxes". 12 Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date ABC's income tax rate is 35%. The entire year's income tax expense was estimated at the beginning of 2016 to be $108,000, so January through November income tax expense recognised amounts to $99,000 (11/12 months) . . . .. . . . ..... Instructions Unadjusted Trial Balance Adjustments Needled Adjusting Journal Entries Adjusted Trial Balance T- LL Type here to search IU DIU est expense for the calendar year. E N Do this final adjusting entry after preparing the Income Statement through the line "Income Before Income Taxes": 12 Corporate taxes are due in four estimated quartedly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date. ABC's income tax rate is 35%. The entire year's income tax expense estimated at the beginning of 2016 to be $108,000, to January through November income tax expense recognized amount to $99,000 (11/12 months) Since we ate awuming estimates are not made during the year, the balance in Income taxes payable represents income tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities Based on the income before income taxes figure from the income statement, calculate and record December's income tax expense adjustment so that the entire year's tax expense is correct the difference between total income tax expense and the amount already accrued through November Instructions Unadjusted Trial Balance Adjustments Needed Adjusting Journal Entries Adjusted Trial Balance income Type here to search (intel C ABC Corporation Unadjusted Trial Balance December 31, 2016 U AWN- Credit Debit 759,444 442,120 6 Cash 7 Accounts receivable 8 Allowance for doubtful accounts 9 Inventory 10 Allowance to Reduce Inventory to NRV 11 Purchases 12 Prepaid insurance 13 Land 14 Building 15 Accumulated depreciation building 16 Equipment 17 Accumulated depreciation equipment 247,000 6,750 88,000 37,500 1,150 21,600 9,000 C ABC Corporation Unadjusted Trial Balance December 31, 2016 UT AWN- Credit Debit 759,444 442,120 6 Cash 7 Accounts receivable 8 Allowance for doubtful accounts 9 Inventory 10 Allowance to Reduce Inventory to NRV 11 Purchases 12 Prepaid insurance 13 Land 14 Building 15 Accumulated depreciation building 16 Equipment 17 Accumulated depreciation equipment 247,000 6,750 88,000 37,500 1,150 21,600 9,000 21,600 9,000 50,000 88,851 40,000 99,000 13,500 700,000 16 Equipment 17 Accumulated depreciation: equipment 18 Patent 19 Accounts payable 20 Notes payable 21 Income taxes payable 22 Uneamed rent revenue 23 Bonds Payable 24 Premium on Bonds Payable 25 Common stock 26 PIC In Excess of Par-Common Stock 27 Retained earings 28 Treasury stock 29 Dividends 30 Sales Revenue 31 Advertising expense 32 Wages expense 33 Office expense 56,774 125,000 40,000 20,000 28,000 790,000 9,240 62,150 28,500 AT DELDE EFGHIJK 1 On March 1, 2016, ABC purchased a one-year liability insurance policy for $27,000 Upon purchase, the following joumal entry was made: D: Prepaid insurance 27,000 Cr Cash 27,000 The expired portion of insurance must be recorded as of 12/31/16 Notice that the expired portion from March through November has been recorded already Make sure that the Prepaid Insurance balance after the adjusting entry is correct. 2 Depreciation expense must be recorded for the month of December The building was purchased on February 1, 2016 for $37,500 with a remaining useful life of 25 years and a salvage value of $3,000 The method of depreciation for the building is straight-line The equipment was purchased on February 1, 2016 for $21,600 with a remaining useful life of 4 years and a salvage value of $1,800 The method of depreciation for the equipment is double-declining balance Depreciation has been recorded for the building and equipment for months February through November 3 On December 1, 2016, XYZ Co. agreed to rent space in ABC's building for $4,500 per month, and XYZ paid ABC on December 1 in advance for the first three months' tent. The entry made on December 1 was as follows: Dr Cash 13,500 Ct Uneamed rent revenue 13,500 The uneared revenue account must be adjusted to reflect the amount eated as of 12/31/16. 4 Per timecards, from the last payroll date through December 31, 2016, ABC's employees have worked a total of 200 houes. Including payroll taxes, ABC' wage expense averages about $25 per hour. The next payroll date is January 5, 2017 The liability for wages payable must be recorded as of 12/31/16 3 On December 1, 2016, XYZ Co. agreed to rent space in ABC's building for $4,500 per month, and XYZ paid ABC on December 1 in advance for the first three months' rent The entry made on December 1 was as follows: D-Cash 13,500 Ct Uneamed rent revenue 13,500 The une amed revenue account must be adjusted to reflect the amount eated as of 12/31/16 4 Per timecards, from the last payroll date through December 31, 2016, ABC's employees have worked a total of 200 hou Including payroll taxes, ABC's wage expense averages about $25 per hour. The next payroll date is January 5, 2017 The liability for wages payable must be recorded as of 12/31/16. 5 On November 30, 2016, ABC borrowed $40,000 from American National Bank by issuing an interest-bearing note paya This loan is to be repaid in three months on February 28, 2017), along with interest computed at an annual rate of 9% The entry made on November 30 to record the borrowing was Di Cash 40,000 CtNotes payable 40,000 On February 28, 2017 ABC must pay the bank the amount borrowed plus interest. Assume the beginning balance for Notes Payable is correct. Interest through 12/31/16 must be accrued on the $40,000 note. 6 ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete physical inventory at year-end. A plnysical count was taken on December 31, 2016, and the inventory on-hand at that time totaled $100,000, which reflects historical cost Record the adjusting entry for properly recognizing 2016 Cost of Goods Sold Hunt. This was the first year of operations, so beginning intentant halen 6 ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete plrysical inventory at year-end. A physical count was taken on December 31, 2016, and the inventory on-hand at that time totaled $100,000, which reflects historical cost. Record the adjusting entry for properly recogruising 2016 Cost of Goods Sold. Hint. This was the first year of operations, so beginning inventory balance i zeto. Additionally, ABC adheres to GAAP by recording ending inventory at the lower of cost and not realizable value at a total inventory level A review of inventory data further indicated that the current retail sales value of the ending inventory is $90,000 and estimated costs of completion and shipping is 8% of retail. Be sure to make an additional adjustment, if necessary, to properly value ending invento wing the Loss and Allowance methodology For Income Statement presentation purposes, be sure to use the Loss Method for accountir for adjustments of inventory to market value Tom 7 It would be unusual for a company to have an asset impairment in Year 1, but for the sake of this example, ABC determined that their intangible asset might be impaired on December 31, 2016. Record the impairment adjustment, if any The expected future undiscounted net cash flows for this intangible asset totals $48,000, and the fair value of the asset is $45,000 NO 8 On 7/1/16, ABC purchased 4,000 shares of its own stock from existing stockholders as treasury stock. The cost of the treasury ...000.000.... .. . .......... .... -1... 11/2014 Instructions Unadjusted Trial Balance Adjustments Needed Adjusting Journal Entries Adjusted Trial Balance 1 Type here to search D U L 48,000, and the fair value of the asset is $45,000 8 On 7/1/16, ABC purchased 4,000 shares of its own stock from existing stockholders as treasury stock. The cost of the treasury stock was $5 per share, or $20,000 in total. The effects of this transaction are already shown in the unadjusted trial balance. On 12/31/16, ABC Teissued 2,000 shares of the treasury stock at $8 per share. Record the journal entry required for the reissuance of the treasury stock. To refresh your memory, treasury stock is wually accounted for at cost. When treasury stocks reissued for more than its cost, a separate Paid-in Capital-Treasury Stock account should be used to account for the excess proceeds over cost. (See your Principles of Accounting textb or Chapter 18 of your Intermediate Accounting textbook for a review) 9 On 12/31/16, ABC ued 10,000 shares of $1 par value common stock at the closing market price of $10 per share. Prepare ABC's journal to reflect the issuance of the stock on 12/31/16. To refresh your memory, a Paid-in Capital in Excess of Par account should be used to acco excess proceeds over par value in a stock issuance transaction. (See your Principles of Accounting textbook or Chapter 18 of your Intermedia Accounting textbook for a review.) 10 On 7/1/16, ABC sold 10% bonds having a maturity value of $700,000 for $756,773 50, resulting in an effective yield of 8%. The bonds are dated 7/1/16, and mature 7/1/21. Interest is payable semiannually on July 1 and January 1 ABC uses the effective interest method of amortization for bond premium or discount. Record the adjusting entry for the accrual of interest and the related amortization on 12/31/16 Hint Develop an abbreviated amortization schedule to accurately determine the interest expense Instructions Unadjusted Trial Balance Adjustments Neecled Adjusting Journal Entries Adjusted Trial Balance Type here to search I De to account for the exces proceeds over cost. (See your Principles of Accounting text or Chapter 18 of your Intermediate Accounting textbook for a review) 9 On 12/31/16, ABC w ed 10,000 shares of $1 par value common stock at the closing matket pace of $10 per shate. Prepare ABC's jouma to reflect the issuance of the stock on 12/31/16. To te fresh your memca Paid-in Capital in Excess of Pat account should be used to ace excess proceeds over par value in a stock issuance transaction. (See your Principles of Accounting textbook or Chapter 18 of your Intermediul Accounting textbook for a review) 10 On 7/1/16, ABC sold 10% bonds having a matunty value of $ 700,000 for $756,773.50, resulting in an effective yield of 8%. The bonds are dated 7/1/16, and mature 7/1/21. Interest is payable semiannually on July 1 and January 1. ABC uses the effective interest method of amortization for bond premium or discount Record the adjusting entry for the accrual of interest and the related amortization on 12/31/10 Hint Develop an abbreviated amortization schedule to accurately determine the interest expense. 11 ABC Corporation prepares an aging schedule on 12/31/16 that estimates total uncollectible accounts at $75,000. Assuming that the allowane method is used, prepare the entry to record bad debt expense for the calendar year. Do this final adjusting entry after preparing the Income Statement through the line "Income Before Income Taxes". 12 Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date ABC's income tax rate is 35%. The entire year's income tax expense was estimated at the beginning of 2016 to be $108,000, so January through November income tax expense recognised amounts to $99,000 (11/12 months) . . . .. . . . ..... Instructions Unadjusted Trial Balance Adjustments Needled Adjusting Journal Entries Adjusted Trial Balance T- LL Type here to search IU DIU est expense for the calendar year. E N Do this final adjusting entry after preparing the Income Statement through the line "Income Before Income Taxes": 12 Corporate taxes are due in four estimated quartedly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date. ABC's income tax rate is 35%. The entire year's income tax expense estimated at the beginning of 2016 to be $108,000, to January through November income tax expense recognized amount to $99,000 (11/12 months) Since we ate awuming estimates are not made during the year, the balance in Income taxes payable represents income tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities Based on the income before income taxes figure from the income statement, calculate and record December's income tax expense adjustment so that the entire year's tax expense is correct the difference between total income tax expense and the amount already accrued through November Instructions Unadjusted Trial Balance Adjustments Needed Adjusting Journal Entries Adjusted Trial Balance income Type here to search (intel