needs to be dome on excel following the instructions in photo 1.

Before you begin, print out all the pages in this workbook. The unadjusted trial balance of Morgan Manufacturing Corp. at December 31, 2019 is shown on the "Trial Bal" page (see tab below). Refer also to the additional year-end information for the company shown on the "Adjusting Entries" page (see tab below). Required: 1 Prepare year-end adjusting entries. General ledger account numbers are not necessary. Show your calculations below each adjusting entry. 2 Post the adjusting entries to the trial balance and prepare an adjusted trial balance. 3 Using the amounts from the adjusted trial balance, complete the financial statements for the year ended December 31, 2019. Morgan Manufacturing Corp. Adjusting Entries For the Year Ended December 31, 2019 The following additional information is available at the corporation's year-end. GST of 5% only applies when indicated. $5,000 a. A sale on account has not been recorded in the amount of: Applicable sales tax is: 8% b. Warranty expense for the year as a percentage of sales should be: 2% c. Unpaid gross salaries at year-end amount to: $10,000 Company Portion 0% Deductions from unpaid salaries are as follows: Employee Portion Employee income taxes 12% FICA Social Security taxes 4% FICA Medicare taxes 2% Company health insurance 4% * these are not the actual required percentages 2% 4% d. The estimated year end audit fees are: $90,000 e. Rent revenue consists of 13 equal monthly payments, including one paid in advance for January 2020. f. A trade account payable was converted to a note payable during the year. No entry has been made to record this. The note payable is due at the end of 2020. Read And $40,000 The amount of the note payable is: The annual interest rate on the note payable is: The note payable was created at the end of this month: (January = 1; December = 12) 6. A lawsuit was commenced against the company in 2019. Damages claimed are: Lawyers for the company consider the likelihood of success to be: $30,000 Possible h. The interest rate on the mortgage is: Annual payments (blended principal and interest) are made on Dec. 31 and total: The 2019 payment has been recorded as Interest on long-term Debt expense. $163,200 9998 Beetary 1. The corporate income tax rate as a percentage of income before Income taxes is: Corporate income tax installments during the year have been recorded as Income Tax expense in the records. Assume any 2019 loss before income taxes will result in the refund of income taxes at the current year's income tax rate. Morgan Manufacturing Corp. GENERAL JOURNAL Dec. 2019 Adjusting entries Debit Credit 4TV 4 Cath in bank Accounts receivable 740DT TUTU 210000 7 1.000 TOT Corp income tax receivable Land Building Accumulated depin -blda Trade accounts payable Interest payable Eshmated current liabilities 9 10 11 12 10000 14 155100 15 Eshmaled warranty 16 S neepayable 1 Emplouce incep 18 FCA Soc Sec pa 20 FILA Medicare payable 22 Co health insurance 1632000 9.000.000 2 963 800 520.000 13 800 000 8.704 000 370001 24 Corp. income tax payable 25 Sales tax payable 126 Nole pause 27 Unearnedrert revenue 29 Mortgage payable 29 Common stock. $1 perth 20 Relined earnings 31 Rent revenue 32 Sales.net 33 Cost of goods sold 34 Bad debis expense 35 Co health ins expense 36 Delivery expense 37 Depin expense.building 38 FICA Sos Secep 39 FICA Medicare exp 40 Interest and bank charges 41 Interest on long-term debt 42 Lawsuit damages expense 43 Office supplies expense 44 Professional fees 45 Sales pente 16 Warranty experte 47 Corp income tax exp 300 000 1000 19.400 9.2001 50.000 163 210 O 99000 T L 40.000 460 000 1000 489 600D 2943580 RSD 48 n . 9,017,344 3.739 456 532.510 282,510 99,000 247520 1.161,030 Morgan Manufacturing Corp. Income Statement For the Year Ended December 31, 2019 28 5 Sales, net 6 Less Cost of goods sold Gross profit 8 Deratizzaxper sex Selling 10 Salaries and benefits Delivery Office Supplies 13 Warranty 14 Total selling General and administrative Bad debts Depreciation Lawsuit damages 19 Professional fees Total general and adminstrative 21 Total operating expenses 22 Income from operations 23 Other income 24 Rent revenue 25 Income before interest and income taxes 26 Interest expense 27 Income before income taxes 28 Income taxes 29 Net income 15 2.790 940 143.000 146.730 1.307.760 2,431,696 499 200 2,930,896 177 243 2.753 653 275 365 $2.478 288 Morgan Manufacturing Corp. Statement of Changes in Equity For the Year Ended December 31, 2019 2019 COM A m e $9.000.000 $2.963.800 $11.963.800 2018 87 Balance at Jon 1 38 Net income 9 Balance of Dec. 31 Tona $9.485 512 2.478 288 HI $9.000.000 Morgan Manufacturing Corp Balance Sheet At December 31, 2019 w Morgan Manufacturing Corp. Balance Sheet At December 31, 2019 Lunar 22719 Cash $41,970 640,000 Accounts receivable, net Corporate income taxes receivable Inventories 168,012 849,982 3877-7e87/ Land Building, net 23.166,245 6,321,000 29,487,245 $30,337,227 Latvilities $108,150 84,600 126,900 Trade accounts payable Estimated current liabilities Estimated warranty liabilities Note payable Interest payable Salaries and benefits payable Sales tax payable Unearned rent Current portion of mortgage payable Corporate income taxes payable 297 10,340 1540 41.600 180,000 553.427 Nvnuman Mortgage payable Less Current portion 18,000,000 (180,000) 17,820,000 18,373.427 Total liabilities Shakhas'Equity Common stock Retained earnings 9,000,000 2,963,800 11,963,800 $30,337,227 Total liabilities and SH equity Before you begin, print out all the pages in this workbook. The unadjusted trial balance of Morgan Manufacturing Corp. at December 31, 2019 is shown on the "Trial Bal" page (see tab below). Refer also to the additional year-end information for the company shown on the "Adjusting Entries" page (see tab below). Required: 1 Prepare year-end adjusting entries. General ledger account numbers are not necessary. Show your calculations below each adjusting entry. 2 Post the adjusting entries to the trial balance and prepare an adjusted trial balance. 3 Using the amounts from the adjusted trial balance, complete the financial statements for the year ended December 31, 2019. Morgan Manufacturing Corp. Adjusting Entries For the Year Ended December 31, 2019 The following additional information is available at the corporation's year-end. GST of 5% only applies when indicated. $5,000 a. A sale on account has not been recorded in the amount of: Applicable sales tax is: 8% b. Warranty expense for the year as a percentage of sales should be: 2% c. Unpaid gross salaries at year-end amount to: $10,000 Company Portion 0% Deductions from unpaid salaries are as follows: Employee Portion Employee income taxes 12% FICA Social Security taxes 4% FICA Medicare taxes 2% Company health insurance 4% * these are not the actual required percentages 2% 4% d. The estimated year end audit fees are: $90,000 e. Rent revenue consists of 13 equal monthly payments, including one paid in advance for January 2020. f. A trade account payable was converted to a note payable during the year. No entry has been made to record this. The note payable is due at the end of 2020. Read And $40,000 The amount of the note payable is: The annual interest rate on the note payable is: The note payable was created at the end of this month: (January = 1; December = 12) 6. A lawsuit was commenced against the company in 2019. Damages claimed are: Lawyers for the company consider the likelihood of success to be: $30,000 Possible h. The interest rate on the mortgage is: Annual payments (blended principal and interest) are made on Dec. 31 and total: The 2019 payment has been recorded as Interest on long-term Debt expense. $163,200 9998 Beetary 1. The corporate income tax rate as a percentage of income before Income taxes is: Corporate income tax installments during the year have been recorded as Income Tax expense in the records. Assume any 2019 loss before income taxes will result in the refund of income taxes at the current year's income tax rate. Morgan Manufacturing Corp. GENERAL JOURNAL Dec. 2019 Adjusting entries Debit Credit 4TV 4 Cath in bank Accounts receivable 740DT TUTU 210000 7 1.000 TOT Corp income tax receivable Land Building Accumulated depin -blda Trade accounts payable Interest payable Eshmated current liabilities 9 10 11 12 10000 14 155100 15 Eshmaled warranty 16 S neepayable 1 Emplouce incep 18 FCA Soc Sec pa 20 FILA Medicare payable 22 Co health insurance 1632000 9.000.000 2 963 800 520.000 13 800 000 8.704 000 370001 24 Corp. income tax payable 25 Sales tax payable 126 Nole pause 27 Unearnedrert revenue 29 Mortgage payable 29 Common stock. $1 perth 20 Relined earnings 31 Rent revenue 32 Sales.net 33 Cost of goods sold 34 Bad debis expense 35 Co health ins expense 36 Delivery expense 37 Depin expense.building 38 FICA Sos Secep 39 FICA Medicare exp 40 Interest and bank charges 41 Interest on long-term debt 42 Lawsuit damages expense 43 Office supplies expense 44 Professional fees 45 Sales pente 16 Warranty experte 47 Corp income tax exp 300 000 1000 19.400 9.2001 50.000 163 210 O 99000 T L 40.000 460 000 1000 489 600D 2943580 RSD 48 n . 9,017,344 3.739 456 532.510 282,510 99,000 247520 1.161,030 Morgan Manufacturing Corp. Income Statement For the Year Ended December 31, 2019 28 5 Sales, net 6 Less Cost of goods sold Gross profit 8 Deratizzaxper sex Selling 10 Salaries and benefits Delivery Office Supplies 13 Warranty 14 Total selling General and administrative Bad debts Depreciation Lawsuit damages 19 Professional fees Total general and adminstrative 21 Total operating expenses 22 Income from operations 23 Other income 24 Rent revenue 25 Income before interest and income taxes 26 Interest expense 27 Income before income taxes 28 Income taxes 29 Net income 15 2.790 940 143.000 146.730 1.307.760 2,431,696 499 200 2,930,896 177 243 2.753 653 275 365 $2.478 288 Morgan Manufacturing Corp. Statement of Changes in Equity For the Year Ended December 31, 2019 2019 COM A m e $9.000.000 $2.963.800 $11.963.800 2018 87 Balance at Jon 1 38 Net income 9 Balance of Dec. 31 Tona $9.485 512 2.478 288 HI $9.000.000 Morgan Manufacturing Corp Balance Sheet At December 31, 2019 w Morgan Manufacturing Corp. Balance Sheet At December 31, 2019 Lunar 22719 Cash $41,970 640,000 Accounts receivable, net Corporate income taxes receivable Inventories 168,012 849,982 3877-7e87/ Land Building, net 23.166,245 6,321,000 29,487,245 $30,337,227 Latvilities $108,150 84,600 126,900 Trade accounts payable Estimated current liabilities Estimated warranty liabilities Note payable Interest payable Salaries and benefits payable Sales tax payable Unearned rent Current portion of mortgage payable Corporate income taxes payable 297 10,340 1540 41.600 180,000 553.427 Nvnuman Mortgage payable Less Current portion 18,000,000 (180,000) 17,820,000 18,373.427 Total liabilities Shakhas'Equity Common stock Retained earnings 9,000,000 2,963,800 11,963,800 $30,337,227 Total liabilities and SH equity