Part 1:Insert the Trial Balance HERE

Write the journal entries (on the following General Journal page) required for each of the events described below. Write the entries in the order described below (#1 - #8).

Use ONLYthe accounts listed on the trial balance for your journal entries.

Post the transactions to individual T-accounts and prepare an adjusted trial balance for your assigned company from page one as of December 31, 2017.

The company purchased a building December 1, 2017 with a LT Mortgage Payable of $300,000 at 8% interest. (Record the purchaseof the building.)

The company issued 1,000 shares of Common Stock for $6,000 on December 25, 2017.

On December 29, 2017 the company declared a cash dividend of $3.00 per share for common stock on the shares issued and declared(including the additional 1,000 shares issued on December 25^th.)

The terms of the LT mortgage payable from #1 above require the company to make monthly installment payments over the term of the loan. Each payment consists of interest on the unpaid balance of the loan and a reduction of loan principal. Record the first monthly payment of $3,800 on the LT Mortgage Payable on December 31, 2017.

The company last paid interest on the ST note payable on November 1, 2017. Record the accrued interest expense for the last 2 months of 2017. The annual interest rate is 8%. Round to nearest whole dollar.

The Bonds Payable and related Premium amounts on the Nov. trial balance relate to the Jan. 1, 2017 issuance of the following bonds: On Jan. 1, 2017, the company issued 10%, 10-year bonds when the market rate for similar investments was 8%. The company pays interest each year on January 1^st. On Dec. 31, 2017, use the effective interest method of amortizing the premium on bonds payable to accrue the interest expense for 2017. Round your interest expense calculation to the nearest whole dollar.

The Unearned Revenue amount on the Nov. trial balance relates to amounts that the company previously collected in cash for sales that were to be completed in the future. The company completed some of these sales during December and now owes only $10,000 of that unearned revenue. Record the necessary adjustment for December 31, 2017.

On December 31, 2017, the company purchased 50 shares of its own Preferred Stock for Treasury Stock for $11 per share.

GENERAL JOURNAL

DATE	ACCOUNT NAME	DEBIT	CREDIT

ADJUSTED TRIAL BALANCE

12/31/17

	Dr	Cr

Supplemental Questions

What will be the balance in the Mortgage Payable Account at Jan. 31, 2018 after the second monthly payment is made?

The Company is about to issue $2,000,000 of 5-year, 12% bonds. Interest will be paid semi-annually. The market interest rate for such securities is 10%. How much can The Company expects to receive from the sale (issuance) of these bonds?

Epcot Mountain Company Trial Balance 11/30/12 Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Supplies Invento Equipment Buildin Accumulated Depreciation 112,000 127,000 1,000 50,000 55,000 62,000 75,000 32,000 94,000 Accounts Payable Dividends Payable Interest Payable Unearned Revenue ST Note Payable LT Mortgage Payable Bonds Payable Premium on Bonds Payable Common Stock -$1.75 par Paid In Capital In Excess of Par-CS Preferred Stock $5 par Paid In Capital In Excess of Par PS Treasury Stock Retained Earnings Dividends Sales Revenue Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad Debts Expense Depreciation Expense Wages Expense Rent Expense nsurance Expense Supplies Expense nterest Revenue nterest Expense Gain on Sale of Equipment Income Tax Expense Total 12,000 12,000 30,000 150,000 16,840 105,000 86,000 1,000 50,000 3,500 2,000 490 160 7,000 3,000 46,000 5,000 16,000 160,000 98,000 25,000 16,000 1,000 15,000 1,005,500 6,500 46,000 1,005,500