order to complete a period end/closing process. Please see Appendix 3C in the text for information on using a worksheet if you need to review the purpose and presentation of a completed Worksheet The purpose of this assignment is also to make sure you are building/developing good Excel skills, which are critical in a successful accounting career. Excel is a powerful tool to organize, calculate, verify, and present financial data. Students - For this application assignment, you are going to complete adjusting journal entries, a partial Worksheet, Income Statement, Statement of Retained Earnings, and Balance Sheet. You are to use the worksheet to present the adjusting entries (and their impact on the Trial Balance) and organize the statement information. Use cell references, formulas, and summation functions where applicable and appropriate. Do not hard enter amounts in cells that should be calculated amounts. Specific instructions are outlined below. Instructions: 1. Joumalize the following adjusting entries for 6/30/20 in the Journal (see tab) and then transfer to the worksheet in the appropriate Adjusting Entries column. Provide descriptions of all journal entries written up for a complete journal entry. b) c) d) g) The company estimates uncollectible accounts using the % of receivables' allowance method. As of June 30th, the company estimates that 5% of the accounts receivable balance is uncollectible. (do not forget to account for the current balance in Allowance for Doubtful Accounts) Supplies on hand are determined to be $2,700 70% of the Prepaid Insurance balance has expired as of June 30th. The Prepaid Rent balance represents 6 months of rent expense. As of June 30, three of those months have passed. Depreciation of assets is recognized as follows: Buildings - $7,400 Equipment - $5,800 Invoices for utilities expenses of $1,050 have been received, but not entered, related to June. Employees working the last 5 days of June will be paid in July. The daily expense for employee wages is $950. (Ignore payroll tax expenses) h) 40% of the uneamed revenue has been eamed as of June 30. 1) The interest rate on the Mortgage Payable is 7%. Interest expense was last updated and recorded on 12/31/19. 2. 3. 4. Update the Adjusted Trial Balance columns in the worksheet. Make sure you carry the correct debit/credit columns across. Use cell references and formulas to create the adjusted balances. Carry over the applicable balances to the Income Statement and Balance Sheet columns. Remember the difference in debits/credits will be the Net Income - which should be added to the bottom of the worksheet columns for each on the line provided. Use the other provided blank worksheets to prepare, in proper format, the Income Statement, Statement of Retained Earnings, and classified Balance Sheet for the period ending. Formatting and labeling should be appropriate, consistent, and user-friendly. (USE Spellcheck for each worksheet) Please refer to examples in the book if you question titles and classifications. 5 Note that $8,000 of the Mortgage Payable is due December 1, 2020. Complete these requirements and rename the application file as directed. Attach the completed file to the assignment link in Blackboard by the due date provided in Blackboard. When you complete the assignment, rename your file as "Last name.First name App1_Ch3" and submit the file through the assignment in Blackboard. CHECK FIGURES: Adjusting Entries Debit/Credit Total Adjusted Trial Balance Debit/Credit Total Net Income Total Assets 72,075 1,131,075 157,625 764.750 Account Tires CO 0 Cash $4,000 Accounts Receivable $1,000 Alwance for Debitul c 900 16300 35.000 15,000 Land 78.000 150,000 Accum Deprecation Biggs $1,000 124.000 Accum Deprecation Egg $3.500 318.000 69.000 Accounts Payable $1.000 Mortgage Payable $5,000 Common Stock ta $0,000 Paid in Capital in Cates of par 45.000 lowdends 11.000 Retained Earings 378900 ncama Summary Sales Revenue 382,000 Supplies Expense 3,500 Salaries and Wages Expense $2,500 Maint, and Repairs Expense 24,300 Advertising Expense 13.500 Deprecation Expense Bad Debt Expense Utilties Expense 17,500 ent Expense 1600 nsurance Expense interest Expense 1600 Totals Net Income 1.107300 110700 Totals Candy Company For the Year Ended June 30, 2020 0 Adpated Trial Barce 00 6 Income Statement to Balance Sheet Trial Balance Account Titles Db. Cr. Ref Cash 54,000 Accounts Receivable 65,000 Allowance for Doubtful Accounts 900 Supplies 16,500 Prepaid Insurance 35,000 Prepaid Rent 15,000 Land 78,000 Buildings 160,000 Accum. Depreciation-Bldgs. 55,000 Equipment 124,000 Accum. Depreciation-Equip. 52,500 Goodwill 318,000 Patents 69,000 Accounts Payable 41,000 Unearned Revenue 7,500 Interest Payable Salaries and Wages Payable Mortgage Payable 55,000 Common Stock ($1 par) 90,000 Paid in Capital in Excess of par-CS 45,000 Dividends 15,000 Retained Earnings 378,900 Income Summary Sales Revenue 382,000 Supplies Expense 3,500 Salaries and Wages Expense 82,500 Maint. and Repairs Expense 24,300 Advertising Expense 13,500 Depreciation Expense Bad Debt Expense Utilities Expense 12,300 Rent Expense 18,600 Insurance Expense Interest Expense 3,600 Totals 1,107,800 1,107,800 Net Income Totals