On January 1, 2018, the general ledger of Parts Unlimited includes the following account balances: Debit Credit Accounts Cash Accounts Receivable Inventory Land Equipment Accumulated depreciation Accounts Payable Common stock Retained Earnings $ 182,488 32,488 57,888 368,808 396,588 $ 192,e0 34,88 548,8ee 262,30e Totals $1,829,188 $1,829,18e From January 1 to December 31, the following summary transactions occur Purchased inventory on account, $345,800. a. Sold inventory on account, $645,200. The inventory cost $362,600. b. Received cash from customers on account, $578,700. c. Paid cash on account, $348.500. d. Paid cash for salaries, $114,700, and for utilities, $72,700. In addition, Parts Unlimited had the following transactions during the year: April 1 Purchased equipment for $115,000 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $5,288 for freight and $5, 880 for installation and testing of the equipment. The equipment has an estimated residual June 38 Purchased a patent for $68,8e from a third-party marketing company related to the packaging of the company's products October 1 Sold equipment for $52,280. The equipment cost $88,78 and had accumulated depreciation of $57,480 at the beginning of November 15 Several older pieces of equipment were improved by replacing major components at a cost of $74,18e. These improvements value of $16,88e and a ten-year service life The patent has a 28-year useful life, after which it is expected to have no value the year. Additional depreciation for 2818 up to the point of the sale is $18,588 are expected to enhance the equipment's operating capabilities. [Record this transaction using Alternative 2 - capitalization of new cost. Year-end adjusting entries: a. Depreciation on the equipment purchased on April 1. 2018, calculated using the straight-line method. b. Depreciation on the remaining equipment, $41,500. c. Amortization of the patent purchased on June 30, 2018, using the straight-line method. d. Accrued interest payable on the note payable. e. Equipment with an original cost of $87.400 had the following related information at the end of the year: accumulated depreciation of $56,300, expected cash flows of $35,700, and a fair value of $20,800. f. Accrued income taxes at the end of the year are $32,600. General Requirement Journal General Ledger Trial Balance Inc Balance Sheet Analysis Record each of the transactions listed above in the General Journal tab (these are shown as items 1-13) assuming a perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on December 31. In the 'General Journal' tab (these are shown as items 14-17) 3. Review the adjusted Trial Balance' as of December 31, 2018, in the 'Trial Balance tab. 4. Prepare a multiple-step income statement for the period ended December 31, 2018, in the Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2018, in the Balance Sheet tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 18-20) 7. Using the information from the requirements above, complete the 'Analysis' tab
