Note: ITEMS IN WHITE ARE ITEMS THAT COULD BE FILLED IN BY YOU. JUST BECAUSE IT IS WHITE, DOES NOT MEAN THERE HAS TO BE SOMETHING THERE. Mason Automation Balance Sheet-Month End 1/31/2018 Assets Liabilities and Stockholders Equity Current Assets Current Liabilities (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) Net (Accounts Receivable): Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description (Enter Account Description Total Current Assets Total Current Liabilities Property Plant and Equipment (Enter Account Description) (Enter Account Description) Total Property Plant and Equipment Long Term Liabilities (Enter Account Description) Enter Account Description) (Enter Account Description) Total Long Term Liabilities Total Liabilities Intangible Assets (Enter Account Description Total Intangible Assets Total Assets Stockholder's Equity (Enter Account Description) Enter Account Description) Enter Account Description) (Enter Account Description) Total Stockholder's Equity Total Liabilities and Stockholders Equi Check Figure Date Debit Account Credit Account Entry Number Journal Entry #1 January 1st 2018 Cash Common Stock Additional Paid in Capital ebit Amount - redit Amoun 375,000,000 45,000,000 330,000,000 Journal Entry #2 January 1st 2018 Journal Entry #3 January 1st 2018 Journal Entry #4 January 2nd 2018 Journal Entry #5 January 2nd 2018 Journal Entry #6 January 2nd 2018 Journal Entry #7 January 3rd 2018 Journal Entry #8 January 3rd 2018 Journal Entry #9 January 4th 2018 Journal Entry #10 January 4th 2018 Journal Entry #11 January 20th, 2018 Journal Entry #12 January 31st, 2018 Journal Entry #13 January 31st, 2018 Journal Entry #14 January 31st, 2018 Journal Entry #15 January 31st, 2018 Journal Entry #16 January 31st, 2018 Journal Entry #17 January 31st, 2018 Journal Entry #18 January 31st, 2018 Journal Entry #19 January 31st, 2018 Journal Entry #20 January 31st, 2018 Tournal Entry #21 January 31st, 2018 Check 375,000,000 375,000,000 Note: If you have completed the T-Accounts tab, this tab should automatically update. Please use this tab for purposes of creating the financial statements. Opening Balance Sheet Credit Debit 375,000,000 Adjusted Trial Balance 375,000,000 - Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Supplies Pre-Paid Expense Property Plant and Equipment Accumulated Depreciation Patent Accounts Payable Unearned Revenue Salaries and Wages Payable FICA Withholding Payable Federal Income Tax Payable State Income Tax Payable Payable Bond Payable Premium/Discount Common Stock Additional Paid In Capital Treasury Stock Retained Earnings Revenue Cost of Goods Sold Insurance Expense Rent Expense Salaries and Wages Expense Payroll Tax Expense Depreciation Expense Amortization Expense (Patent) Bad Debt Expense Supplies Expense Interest Expense Totals - 45,000,000 330,000,000 (45,000,000) (330,000,000) 375,000,000 375,000,000 Journal Entry #8 Mason Automotive buys a patent from Apple for $36 Million on January 3rd, 2018. The patent has a legal life of 20 years, but a useful life of 10 years. Record the necessary entry as of January 3rd, 2018. Assume the patent was purchased using cash. Journal Entry #9 Mason Automotive purchased $2.5 Million dollars worth of supplies January 4th, 2018. $1.75 Million was paid with cash with the remaining balance on account. Journal Entry #10 Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $3.2 Million on January 4th, 2018 Journal Entry #11 On January 20th, Mason Automotive decides to purchase 1,200,000 shares of Treasury stock at $26 per share. Month End Adjusting Entries There are 10 applicable adjusting entries that need to be made as of the end of the month based on the information provided above. When recording these adjusting entries consider the following facts: 1.) Interest expense will be recorded as a operating expense items on the income statement. 2.) Record the necessary adjusting entries related to pre-paid expense as separate journal entries. 3.) When reviewing the supply room as of the end of the month, Mason Automation noted that it had $1.5 Million worth of supplies still on hand. 4.) As of the end of the month, 4,000 cars were completed for Michael Scott Paper Company and the performance obligation had been met on those 4,000 cars. As such, revenue was determined to be earned on those 4,000 vehicles and it was noted that each vehicle costed $8,000 to manufacture. 5.) Mason Automation uses the balance sheet approach in estimating the allowance for doubtful accounts as of the end of the period. Based on industry average, Mason noted that it will use 5% of receivables as an estimation. 6.) When preparing the balance sheet, close out net income to retained earnings. Note: ITEMS IN WHITE ARE ITEMS THAT COULD BE FILLED IN BY YOU. JUST BECAUSE IT IS WHITE, DOES NOT MEAN THERE HAS TO BE SOMETHING THERE. Mason Automation Multiple Step Income Statement-Fiscal Month End 1/31/2018 (Enter Account Description) (Enter Account Description) Total Revenue (Enter Account Description) (Enter Account Description) Gross Profit Operating Expenses (Selling and Administrative) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) Total Operating Expenses Net Income Fill this number in