Page 1 Instructions

Instructions for FS (be aware of the grading criteria):

1. Prepare journal entries for the January 2018 transactions for Wallace Corporation described in the transaction worksheet. Enter them in the general journal I have provided (Journal worksheet). Use the accounts listed in the General Ledger worksheet. Add new accounts if you think they are necessary. For this assignment you can ignore income taxes.

2. Post the journal entries to the t-accounts in the General Ledger worksheet. Post the journal entries by referencing your journal entries (use formulas/cell references; don't hard-key the numbers). All your work from this step forward should involve referencing cells rather than inputting numbers. The January 1, 2018 balances are provided. Wallace Corporation has a calendar fiscal year and prepares monthly financial statements.

3. Calculate end-of-month account balances in the General Ledger tab using excel (use an excel formula; don't type in the balance).

4. Fill in the unadjusted trial balance columns on your Trial Balance worksheet and check to see that the total of the debit balances equals the total of the credit balances. If it does not go back and check your work in parts 1, 2, and 3.

5. Using the information in the Supplies, Prepaid Insurance, Wages Payable, and Unearned Revenue tabs calculate what you think the 1/31/2018 balances should be for each of these accounts. Show in these tabs how you are coming up with each of these balances. Make sure that you are calculating the 1/31/2018 balances of the above balance sheet accounts and not the related 1/2018 revenue or expense accounts. Highlight the 1/31/2018 balance you calculate.

6. Prepare 1/31/2018 adjustments and enter them in your general Journal below your January transaction journal entries.

7. Post your adjustments to your Trial Blaance worksheet and calculate an adjusted trial balance. Don't post your adjustments to the general ledger.

8. Verify that the 1/31/2018 balances you came up with in part 5 above agree with the balances in your adjusted trial balance. If they do not agree correct your adjustment in part 5 above.

9. Fill in the income statement and balance sheet columns on the trial balance worksheet. Note that the income statement and balance sheet columns in the worksheet are not an income statement or a balance sheet.

10. Prepare an income statement and retained earnings statement for January and a balance sheet as of January 31. Use additional excel worksheets for these statements. Follow my financial statement formatting rules and refer to financial statement examples in the book.

11. Submit your spreadsheet through the assignment setup in Blackboard.

Page 2 Grading

Grading of FS1 Points Available Prepared journal entries in journal worksheet 1 Posted journal entries to general ledger 1 All account balances have balances on increase side 1 Unadjusted trial balance balances (total debit balances = total credit balances) 1 Calculated 1/31/2017 balances for the four accounts below and showed your calculations in the related worksheet Supplies 1 Prepaid insurance 1 Wages payable 1 Unearned revenue 1 Prepared adjustments 1 Posted adjustments to trial balance worksheet 1 Adjusted balance is a formula based on the unadjusted balance and adjustment columns 1 Adjusted trial balance balances (total debit balances = total credit balances) 1 Worksheet calculated balances agree with adjusted trial balance for the four below accounts Supplies 1 Prepaid insurance 1 Wages payable 1 Unearned revenue 1 Balance sheet balances (total assets = total liabilities + stockholders' equity) 1 Net income agrees from income statement to retained earnings statement 1 Retained earnings agrees from retained earnings statement to balance sheet 1 Journal entries are only numbers entered 1 Total 20

Page 3 Transactions

# Date Transaction 1 2-Jan Stockholders invest an additional $18,000 in the business 2 3-Jan Purchased supplies on account (did not pay cash) $800 3 7-Jan Paid office rent of $600 for the month 4 11-Jan Completed a consulting assignment and billed ABC Co. $1,700 for services rendered 5 12-Jan Received $3,100 cash advance from Anthony Inc. on future consulting services 6 17-Jan Completed a consulting assignment and received $2,400 for the services performed 7 21-Jan Paid for insurance coverage for the year (January through December) $1,800 8 25-Jan Received $1,000 from ABC Co. (see transaction #4) 9 26-Jan Paid secretary $2,000 for four weeks from 1/2/2017 - 1/27/2017. 10 31-Jan Declared and paid a dividend to stockholders of $400

Page 4 Journal

General Journal Date Account name DR CR

Page 5 General Ledger

General Ledger beginning balance Cash Accounts receivable Supplies 11,100 170 0 Prepaid insurance Accounts payable Wages payable 400 Unearned revenue Capital stock Retained earnings 8,200 2,670 Consulting revenue Salary expense Rent expense Supplies expense Insurance expense Dividends

Page 6 Trial Balance

Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet DR CR DR CR DR CR DR CR DR CR Cash Accounts receivable Supplies Prepaid insurance Accounts payable Wages payable Unearned revenue Capital stock Retained earnings Consulting revenue Salary expense Rent expense Supplies expense Insurance expense Dividends Total

Page 7 Supplies

Supplies on hand as of 1/31/2018 Supply item # Quantity Unit price 1 7 2.00 2 16 1.50 3 9 3.00 4 23 1.00

Page 8 Prepaid Insurance

There should be 11 months of prepaid insurance coverage still left as of 1/31/2018

Cost of 2018 insurance coverage 1,800

Page 9 Wages Payable

The secretary for Wallace Corporation gets paid $100 per day. She works five days a week (Monday through Friday). She gets paid the last Friday of the month for days up to and including that day. So she was paid for 20 days on Friday January 26. She will get paid next on Friday February 23, 2018.

Please Use actual 2018 Calendar

Pg 10 Unearned Revenue

Status of $3,100 contract with Anthony Inc. as of 1/31/2018 % of work not completed % of work completed as of 1/31/2018 as of 1/31/2018 Anthony Inc. contract 20.00% 80.00%

Page 6 Trial Balance