Please complete the journal entries and use the balance sheet provided to fill the T-accounts and accounting equations.

Please show all formulas neatly.

1 Paid the $303,565 owed on account at year end 2018. 2 Collected the $22,508 of accounts receivable due to them at year end 2019. 3 Paid the interest of $26,000 that was payable at year end 2018. 4 Made a payment on the mortgage note of $10,500. 5 Paid $3,540 to renew their annual insurance policy on March 1, 2019. 6 Paid the taxes owed of $46,945 at year end 2018. 7 Made a payment on the long-term note of $81,600. 8 Purchased additional Furniture & Equipment on May 1, 2019 costing $64,440 due to increased shipping activities for their growing online 9 Issued 1,900 shares of Common Stock on May 1, 2019 for $10 per share. 10 Purchased inventory during the year that cost $1,772,598. The company owed $386,430 on these purchases at year end 2019. 11 Purchased a new computerized sales system on June 1, 2019 for $81,800 in cash. The system has a useful economic life of 3 years and will be depreciated monthly using the straight line method. The 12 Sales of artisan jellies for 2019 were $2,546,320. At December 31, 2019, $52,187 of this amount was still listed as receivable. 13 The total cost of the goods sold during 2019 was $1,698,576. 14 Supplies inventory of $4,792 was purchased with cash during 2019. Total supplies inventory of $762 was still on hand at year end 2019. 15 Total Salaries Expense for the year was $135,422 and total interest expense was $22,387. Salaries of $7,508 and interest of $22,387 are 16 Depreciation expense needs to be recorded on ALL buildings, furniture and equipment, and the new computer system at year end 2019. All items are depreciated on a monthly basis using straight line depreciation. The building has a useful life of 40 years and the furniture and equipment is depreciated over 6 years--there is no salvage value on the buildings or the furniture and equipment. As noted above, the new sales system has a useful life of 3 years and 17 The Prepaid Insurance and the Supplies Inventory need to be adjusted at year end 2019 so that the proper amount for insurance expense and supplies expense is recorded. See items 5 and 14 for details. (If you adjusted the supplies in #14, do not do it again) 18 Estimated income tax payable amounts for 2019 equaling $86,500 were paid during the year as they became due. 19 The company paid out cash dividends totaling $3,250 to its shareholders. 20 The company determined that a customer account was not collectible, and wrote off $387 on December 31. 21 The company believes that 2.5% of ending Accounts Receivable is a reasonable estimate of its Allowance for Doubtful Accounts balance. The Company uses the allowance method to record bad debts. 22 Tax expense is 21% of Income before Income Tax. $ Assets Current Assets Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Inventory Prepaid Insurance Total Current Assets 346,890 31,878 (405) 1,118,695 970 545 1,498,573 Property, Plant, and Equipment Land Furniture and Equipment Accumulated Depreciation--Furniture and Equipment Buildings Accumulated Depreciation--Buildings Net Property, Plant, and Equipment 125,000 18,000 (12,000) 525,000 (52,500) 603,500 Total Assets 2,102,073 $ Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Interest Payable Taxes Payable Total Current Liabilities 303,565 26,000 46,945 376,510 Long-term Liabilities Mortgage Note Payable Note Payable Total Long-term Liabilities 280,000 240,000 520,000 Total Liabilities 896,510 Stockholders' Equity Common Stock, 10,500 shares issued and outstanding Retained Earnings Total Stockholders' Equity 105,000 1,100,772 1,205,772 Total Liabilities and Stockholders' Equity 2,102,282 Prepaid Insurance Accounts Payable Common Stock laries & Wages Expen Cash 348,969 BB 8,377 1 Supplies Expense Land Salaries Payable 8,377 8,377 BB Retained Earnings Insurance Expense Building Interest Payable Bad Debt Expense Furniture and Equipmen Sales Revenue Depreciation Expense Taxes Payable Accounts Receivable omputerized Sales Syste Interest Expense Cost of Goods Sold Accum Depr-Building Mortgage Note Payable Tax Expense Allowance for Doubtful Acct Accum Depr-Furn&Equip Note Payable Merchandise Inventory iccum Depr-Sales Syster Supplies Inventory 2. Accounting Equation Solution: Beginning Balance Assets Beginning Balance Liabilities Beginning Balance Equity Ending Balance Assets Ending Balance Liabilities Ending Balance Equity Net Income Bef Tax = Net Income 1 Paid the $303,565 owed on account at year end 2018. 2 Collected the $22,508 of accounts receivable due to them at year end 2019. 3 Paid the interest of $26,000 that was payable at year end 2018. 4 Made a payment on the mortgage note of $10,500. 5 Paid $3,540 to renew their annual insurance policy on March 1, 2019. 6 Paid the taxes owed of $46,945 at year end 2018. 7 Made a payment on the long-term note of $81,600. 8 Purchased additional Furniture & Equipment on May 1, 2019 costing $64,440 due to increased shipping activities for their growing online 9 Issued 1,900 shares of Common Stock on May 1, 2019 for $10 per share. 10 Purchased inventory during the year that cost $1,772,598. The company owed $386,430 on these purchases at year end 2019. 11 Purchased a new computerized sales system on June 1, 2019 for $81,800 in cash. The system has a useful economic life of 3 years and will be depreciated monthly using the straight line method. The 12 Sales of artisan jellies for 2019 were $2,546,320. At December 31, 2019, $52,187 of this amount was still listed as receivable. 13 The total cost of the goods sold during 2019 was $1,698,576. 14 Supplies inventory of $4,792 was purchased with cash during 2019. Total supplies inventory of $762 was still on hand at year end 2019. 15 Total Salaries Expense for the year was $135,422 and total interest expense was $22,387. Salaries of $7,508 and interest of $22,387 are 16 Depreciation expense needs to be recorded on ALL buildings, furniture and equipment, and the new computer system at year end 2019. All items are depreciated on a monthly basis using straight line depreciation. The building has a useful life of 40 years and the furniture and equipment is depreciated over 6 years--there is no salvage value on the buildings or the furniture and equipment. As noted above, the new sales system has a useful life of 3 years and 17 The Prepaid Insurance and the Supplies Inventory need to be adjusted at year end 2019 so that the proper amount for insurance expense and supplies expense is recorded. See items 5 and 14 for details. (If you adjusted the supplies in #14, do not do it again) 18 Estimated income tax payable amounts for 2019 equaling $86,500 were paid during the year as they became due. 19 The company paid out cash dividends totaling $3,250 to its shareholders. 20 The company determined that a customer account was not collectible, and wrote off $387 on December 31. 21 The company believes that 2.5% of ending Accounts Receivable is a reasonable estimate of its Allowance for Doubtful Accounts balance. The Company uses the allowance method to record bad debts. 22 Tax expense is 21% of Income before Income Tax. $ Assets Current Assets Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Inventory Prepaid Insurance Total Current Assets 346,890 31,878 (405) 1,118,695 970 545 1,498,573 Property, Plant, and Equipment Land Furniture and Equipment Accumulated Depreciation--Furniture and Equipment Buildings Accumulated Depreciation--Buildings Net Property, Plant, and Equipment 125,000 18,000 (12,000) 525,000 (52,500) 603,500 Total Assets 2,102,073 $ Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Interest Payable Taxes Payable Total Current Liabilities 303,565 26,000 46,945 376,510 Long-term Liabilities Mortgage Note Payable Note Payable Total Long-term Liabilities 280,000 240,000 520,000 Total Liabilities 896,510 Stockholders' Equity Common Stock, 10,500 shares issued and outstanding Retained Earnings Total Stockholders' Equity 105,000 1,100,772 1,205,772 Total Liabilities and Stockholders' Equity 2,102,282 Prepaid Insurance Accounts Payable Common Stock laries & Wages Expen Cash 348,969 BB 8,377 1 Supplies Expense Land Salaries Payable 8,377 8,377 BB Retained Earnings Insurance Expense Building Interest Payable Bad Debt Expense Furniture and Equipmen Sales Revenue Depreciation Expense Taxes Payable Accounts Receivable omputerized Sales Syste Interest Expense Cost of Goods Sold Accum Depr-Building Mortgage Note Payable Tax Expense Allowance for Doubtful Acct Accum Depr-Furn&Equip Note Payable Merchandise Inventory iccum Depr-Sales Syster Supplies Inventory 2. Accounting Equation Solution: Beginning Balance Assets Beginning Balance Liabilities Beginning Balance Equity Ending Balance Assets Ending Balance Liabilities Ending Balance Equity Net Income Bef Tax = Net Income