Please create ONLY the journal entries from a-s

Account Title Trial Balance DR CR 330,000 694,980 Allowance for Doubtful Accounts Interest Receivable 17.000 425,000 32.000 Rent Office Supplies Note Receivable Available for Sale Securities 87.500 Storage Building Office Equipment 65.000 345.000 Sales Tax Payable 142,000 25,000 Income Tax Payable Loan Payable-Coldstar Bank Additional Paid in Capital Other and ,979,500 Depreciation Expense Office Equipment Leasing Expense-Stores t Expense Rent Expense Storage F acilityO Office Supplies Expense 5,000 Interest Revenue on Note Receivable Dividend Revenue on AFS Securities 25,000 35,000 Income Tax Expense Payroll Taxes Expense Rebate Expense 21.150 11,585.450 11,585.450 a. Based on your review of the cash balances, you note that there was an overdraft of $12,000 in one of your bank accounts. However, there are many bank accounts at the specific bank where the account with the overdraft is deposited. The total cash at this bank equaled a debit balance of $180,000. The previous accountant moved the overdraft to Accounts Payable. You also note the Board of Directors has restricted 565,000 of cash for future expansion. This $65,000 is part of the cash balance. The future expansion will not occur for several more years b. Based on your inquiries, you note that $35,000 of accounts receivable had been written off during the year The clerk had debited bad debt expense for $35,000 and credited Accounts Receivable for $35,000. When $8,500 of accounts previously written off had been collected, the accountant debited cash and credited sales. The company uses the allowance method based on the aging of accounts receivable. Based on this method, Accounting Firm determines that uncollectible accounts are $46,600 at the end of 2018 On April 1, 2018, Accounting Firm renewed a 16-month insurance policy for $15,000. All cash was paid at the time the policy was signed and insurance expense was increased. All other transactions involving insurance were properly recorded On November 1, 2018, Accounting Firm loaned a key supplier, $25,000 A promissory note was signed and issued. The note is due in full 6-months. The supplier agrees to pay interest on the note at an annual rate 8%. Principle and interest will be paid at the end of the 6-months The note was recorded in Notes Receivable and is the only note outstanding e. Per a physical count of office supplies, $5,006 of supplies remained at the end of 2018. The balance on the f. On November 1, 2018 Accounting Firm paid ABC Advertising $16,000 for a four-month campaign of g. Because of a new product line, Accounting Firm needed some temporary addtional storage space so on h. The storage building was self-constructed this year by Accounting Firm. The Company had their initial worksheet in the office supplies account represents last years ending balance. During the year, $35,000 of office supplies were purchased and immediately expensed. advertising services. Equal services are provided each month August 1, 2018 they rented a unit for an annual rate of $17,000 and they paid the entire amount up front expenditure of $500,000 on January 1 They paid an additional $375,000 on May 1,$250,000 on August 1, and then the final payment of $150,000 on December 1t when the building was completed and occupancy occurred. The company has decided to use S/L method for depreciation. The storage building is estimated to have a life of 40 years and a salvage value of $77,006. The company depreciates using partial years (Hint: (1) only consider depreciation expense after the completion of the construction, (2) use the avoidable interest computed from i Accounting Firm Double Entry has two loans outstanding as of 12/31/2018. Interest is paid annually on January 1st The facts on each loan are as follows: Onstar S650,000) Bank Loan outstanding since January 1, 2018 with a 4 0% interest rate This loan was taken out to finance the construction of the Stora Building Interest for the year and 10% of the principle will be paid to the bank on January 1, 2019 Except for recording the initial cash received and loan, no additional entries have been made, Coldstar(s2,000,000 Bank Loan-also outstanding all of 2018 with 306% interest rate Interest is due on January 1, 2019 Principle is due on January 1, 2024. Since interest will not be paid to the Bank until 2019, Accounting Firm office staff did not accrue any interest ge On July 1, 2018, Accounting Firm recorded a patent in the amount of $150,000. The company paid outside legal fees of $80,000 to have the patent registered The other $70,000 represents intenal costs in developing the patent. The patent is good for 20 years, but the comp a useful life of 6 vears with no residual value. Amortization is straight line. The company depreciates using partial years for intangible assets. No amortization has been recorded for 2018 any estimates that the patent will have k. As of 12/31/2018 the Available for Sale Securities ($375,000) have a fair value of $290,006. Due to the market conditions, the company does not plan on selling the assets in 2019, but their intent is to sell at some point in time. You can ignore the tax effect on unrealized gains and losses L The office building/$3,750,000) was bought in January 1, 2016 and Accounting Firm plans to use the building for 40 years and believes it will have a salvage value of $250,000 at the end of 40 years. Accounting Firm depreciates the building on a straight-line basis. Due to the location of the building and use potential, Accounting Firm is concened about impairment At 12/31/2018 it is determined that the future cash flows for the building are $3,000,000. The fair value of the building is $3,406,000 at 12/31/2018 m. After reviewing details of sales, you note that the sales taxes collected on the last week of December's sales were included in sales revenue. Sales recorded the last week of December that included the sales tax of 7% amounted to $350,000 n. Accounting Firm uses the Dollar Value LIFO inventory method. For internal purposes, the Merchandise Inventory Account is maintained at FIFO (current costs). At the end of the year, the LIFO reserve account is adjusted so inventory on the balance sheet reflects Dollar Value LIFO. You need to calculate the proper inventory balance and adjust the LIFO reserve. The price index for this year is 1.26 Prior year inventory ecords show the following calculation for 2018 175,000 X1.0175,000 100,000 X 1.05105,000 All office equipment was purchased January 1, 2017 Accounting Firm uses the DDB method to depreciate office equipment. No office equipment has been added since the initial purchase. It is estimated that the office equipment has a useful life of 10 years with a salvage value of $12,000 o. On July 1, 2018, Accounting Firm rented a portion of one store to Marketing Majors Inc. The contract was for 15 months and Accounting Firm required all of the cash up front The rent is being earned equally each month. This is the only item in which rent is being earned by the company. (Rent Revenue 75,000) p. q. Accounting Firm started to lease some new retail space in 2018 and added shelving and fixtures to this sed space. Based on your review of invoices, the previous accountant capitalized the cost of fixtures but did not capitalize the shipping and installation costs of $3,506. These costs were expensed and recorded as a miscellaneous selling expense ($23,000). Accounting Fim has decided to use double declining balance (DDB) depreciation for this item and to take a full year of depreciation in the year of acquisition The leasehold improvements have a useful life of 15 years with a salvage value of $15,000 Accounting Firm uses the FIFO Inventory Method in valuing inventory. The inventory balance of $425,0 was based on a physical count at 12/31/2018. Based on your analysis, you have noted that $12,500 of marketing games that belonged to Marketing Majors Inc. was included in the account You also note that S7,000 of goods shipped to Accounting Firm fo b. destination were in transit on December 31, 2018 and included in the physical count You note during the review of sales, that a rebate was issued for the 2018 Income Tax Game to encourage sales. 36,000 games were sold Customers can mail in their receipt and receive a $1 rebate per game. It is estimated that 60% of customers will send in the rebate. The rebate expires on January 31, 2019, To date, 8,000 customers have sent in the rebate and $16,000 has been refunded 16,000 rebates have been refunded. Without any direction, the accounting dlerk debited Miscellaneous Selling Expense and credited Cash for the $16,000. The management of Accounting Firm would prefer ta have this type of expense in a separate account (Rebate Expense) so they can property analyze for future ideas