Part A: Been Carded, Ltd., is a purveyor of woolen goods and is known for its high quality merchandise. The business started up in January 2012 and has been quite successful. Complete the Journal Entries for all 2016 transaction and adjustment information listed below. You do not have to date your journal entries. The first journal entry has been completed for you (15 pointsgraded for accuracy and format, including Excel spreadsheet links).

There is no Check Figure for Part A. Transaction and Adjustment Data:

1 Paid the $8,377 in salaries owed at year end 2015.

2 Collected the $22,805 of accounts receivable due to them at year end 2015.

3 Paid the $381,796 owed on account at year end 2015.

4 Purchased additional Furniture & Equipment on January 2, 2016 costing $76,000 due to increased shipping activities for their growing online presence.

5 Paid $3,490 to renew their annual insurance policy on March 1, 2016.

6 Purchased a new computerized sales system on April 1, 2016 for $72,000. The system has a useful economic life of 3 years and will be depreciated monthly using the straight line method. The system has no salvage value.

7 Made a payment on the long-term note of $92,000.

8 Made a payment on the mortgage note of $16,800.

9 Paid the interest of $17,257 that was payable at year end 2015.

10 Paid the taxes owed of $109,670 at year end 2015.

11 Issued 1,500 shares of Common Stock on May 1, 2016 for $10 per share.

12 Sales of woolen goods for 2016 were $2,542,690. At December 31, 2016, $43,040 of this amount was still listed as receivable.

13 The total cost of the goods sold during 2016 was $1,652,747.

14 Purchased inventory during the year that cost $1,690,000. The company owed $411,050 on these purchases at year end 2016.

15 Total Salaries Expense for the year were $97,050 and total interest expense was $14,211. Salaries of $6,420 and interest expense of $14,211 are still payable at year end 2016.

16 Supplies inventory of $2,677 was purchased with cash during 2016. Total supplies inventory of $508 was still on hand at year end 2016.

17 Depreciation expense needs to be recorded on the buildings, furniture and equipment, and the new computer system at year end 2016. All items are depreciated on a monthly basis using straight line depreciation with no salvage value. The building has a useful life of 40 years and the furniture and equipment is depreciated over 7 years. As noted above, the new sales system has a useful life of 3 years. Round all depreciation amounts to the nearest dollar.

18 The Prepaid Insurance and the Supplies Inventory need to be adjusted at year end 2016 so that the proper amount for insurance expense and supplies expense is recorded. See items 5 and 15 for details. (If you adjusted the supplies in #16, do not do it again)

19 Estimated income tax payments of $120,000 were made during the year 2016.

20 The company paid out cash dividends totaling $3,500 to its shareholders.

21 The company determined that a customer account was not collectible, and wrote off $135 on December 31.

22 The company believes that 2% of ending Accounts Receivable is a reasonable estimate of its Allowance for Doubtful Accounts balance.

23 Tax expense is 30% of Income before Income Tax. Background Information:

The Balance Sheet for December 31, 2015 is presented here to provide you with the beginning balances needed for your T-Accounts.

Been Carded, Ltd.

Balance Sheet

December 31, 2015

Assets Current

Assets

Cash $384,996

Accounts Receivable 22,805

Allowance for Doubtful Accounts (456)

Merchandise Inventory 1,090,844

Supplies Inventory 466

Prepaid Insurance 515

Total Current Assets 1,499,170

Property, Plant, and Equipment Land 180,000

Buildings 470,000

Accumulated Depreciation--Buildings (47,000)

Furniture and Equipment 18,300

Accumulated Depreciation--Furniture and Equipment (10,457) Net Property, Plant, and Equipment 610,843

Total Assets 2,110,013

Liabilities and Stockholders' Equity Current

Liabilities

Accounts Payable $381,796

Salaries Payable 8,377

Interest Payable 17,257

Taxes Payable 109,670

Total Current Liabilities 517,100

Long-term Liabilities

Mortgage Note Payable 381,333

Note Payable 235,000

Total Long-term Liabilities 616,333

Total Liabilities 1,133,433

Stockholders' Equity

Common Stock,

5,500 shares issued and outstanding, $10 par 55,000

Retained Earnings 921,580

Total Stockholders' Equity 976,580

Total Liabilities and Stockholders' Equity 2,110,013