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opening balance sheet The following are a series of transactions that took place for Odin Enterprises, LLC during 2018. Please prepare the following information as

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image text in transcribedopening balance sheet
The following are a series of transactions that took place for Odin Enterprises, LLC during 2018. Please prepare the following information as it relates to these transactions: A) Prepare the Journal Entries associated with the transactions B) Enter the Journal Entries you created in A) above into T-Accounts showing ending balances if more than one transaction C) Prepare any appropriate Adjusting Journal Entries related to the transactions at the end of the 2018 D) Prepare the Balance Sheet as of December 31, 2018 and the Income Statement for the year ending December 31, 2018 Transactions 1) In 2018 Odin Enterprises had total sales of $850,000. Odin received payment on $725,000 of these sales in 2018. The remainder was still on account on December 31, 2018 2) Odin's Inventory balance at 12/31/17 was all related to a purchase of inventory made at the end of the year. During the year they purchased inventory 4 times as follows: a. February 8, 2018 - 1,000 units at $100,000 b. April 15, 2018 - 1,500 units at $165,000 C. August 28, 2018 - 500 units at $60,000 d December 8, 2018 - 1000 units at $130,000. 50% of this balance was still owed as of December 31, 2018 3) Odin received $120,000 of the Accounts Receivable on the books at 12/31/17 in 2018. The remaining balance was written off to Bad Debts in 2018 as the company who owed the remainder went bankrupt 4) A physical inventory at December 31, 2017 had found Odin to have 1,250 units in Beginning Inventory The physical inventory taken on December 31, 2018 found 1,100 units left in ending inventory. Using the Weighted average method calculate Cost of Goods Sold and Ending Inventory for Odin Enterprises, LLC. 5) On June 30, 2018 Odin Enterprises issues $200,000 of 5 year, 6% bonds at 98. Record the issuance of the bonds. Interest is paid annually on these bonds. 6) Odin used the funds from the bonds to buy a piece of equipment for $200,000 the next day. The new equipment has a five-year useful life. All of the other equipment on Odin's books has a five-year useful life as well. 7) All accruals on the books as of December 31, 2017 were paid in 2018. 8) During 2018 Odin made 12 payments of $2,000 each against the Note Payable. Principal paid was $18,000 with the balance being interest paid. The S/T portion of the note left is $20,000. 9) Wages of $110,000 were earned and paid in 2018. 10) At the end of 2018, the following accruals need to be recorded: a. Accrued wages of $15,000 b. Accrued taxes of $18,000 11) Goodwill is amortized over 15 years. Record the Amortization Expense for 2018. 12) Dividends of $10,000 were paid to shareholders on December 15, 2018 13) The prepaid insurance covered the first 6 months of 2018. In June, Odin purchased a new insurance policy covering July 1, 2018 to June 30, 2019 for $15,000. 14) Prepare any additional adjustments you feel might be necessary before preparing your financial statements. C D B Odin Enterprises, Inc. Balance Sheet December 31, 2017 $ 41,500 133,000 6,000 22,000 202,500 5 Cash 6 Accts Receivable 7 Prepaid Insurance 8 Inventory 9 Total Current Assets 10 PP&E 11 A/D-PPE 12 Land 13 Goodwill 14 A/A - Goodwill 15 16 Total Assets 175,000 (35,000) 140,000 100,000 225,000 (37,500) 187,500 $ 630,000 18 Accounts Payable 19 Accrued Wages 20 Accrued Taxes 21 S/T - Notes Payable 22 Total Current Liabilities 47,000 21,000 16,000 18,000 102,000 23 24 L/T - Notes Payable 25 Total Liabilities 202,000 304,000 26 27 Common Stock 150,000 Ready

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