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only need help with part 2 i need help with journalizing part 2 of the assignment Parts 1 and 2 Instructions Complete the journal entries
only need help with part 2
i need help with journalizing part 2 of the assignment
Parts 1 and 2 Instructions Complete the journal entries for each transaction. At the end of each period, post the journal entries to ledger accounts Create a worksheet as shown in the textbook Appendix 2A; use the worksheet to conduct the unadjusted trial balance; go back and correct any errors found in the analysis Make the appropriate adjusting entries in the worksheet. Prepare an adjusted trial balance in the worksheet. Assign amounts to the appropriate balance sheet and income statement columns. Create an income statement, balance sheet, and statement of equity. Repeat the process for the second accounting period. Period 1: Year ending 31 Dec 2018 Events . 1. Corporate founders contribute $750,000 in equity capital to the company 2. Company negotiates a credit line with a local bank. The credit line allows the company to draw up to $800,000 at an interest rate of 2.5%. The credit line must be paid off by the end of each year. 3. The company purchases operating equipment expected to have a useful life of five years. The cost of the equipment is $1,500,000. The purchase is financed with a long-term debt contract requiring annual interest payments of 4.0% and the balance to be paid at the end of five years. 4. Company signs agreement to rent a facility. Pays one year's rent of $240,000. Occupancy set for 1 January 2020. 5. Company purchases raw materials inventory costing $800,000. The supplier invoices the company with terms of 1%/10et 30. Period 2: Year ending 31 Dec 2019 6. Company uses $200,000 in raw materials and incurs direct labor costs of $100,000 to produce finished goods inventory. 7. Company sells half of product inventory for $400,000. Invoices customers with terms 2%/10et 30. 8. Pays workers for labor performed. 9. Draws $500,000 on credit line. 10. Pays trade account within the 30-day credit period. 11. Sells the remaining inventory for $400,000. Invoices customer with terms of 2%/10et 30. 12. Customer 1 pays invoice on day 30 13. Customer 2 pays invoice on day 9. 14. Pays administrative assistants: $80,000 15. Company uses $400,000 in raw materials and incurs direct labor costs of $200,000 to produce finished goods inventory. 16. Company sells $400,000 of finished goods inventory for $1,050,000, split evenly between three customers (A, B, and C). Invoices customers with terms 2%/10et 30. 17. Customer A pays on day 8. 18. Customer B pays on day 31 19. Company pays off credit line borrowing with nine months accrued interest 20. Company pays annual interest on long term debt contract Step by Step Solution
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