please fill in the income statement
Background Information Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, January 1st, 2023 was the first day that Mason was in business. For the month of August, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting journal entries as of the end of the month. From the information below, please fill out the 'journal entries' tab for all the necessary journal entries. Furthermore, please complete the 'T-Accounts' tab for the individual accounts so that the 'trial balance' tab can be updated (automatically). I prepared the first journal entry for you in the journal entries tab and T-Accounts tab. Ensure you label the entries how I have for Entry \#1. Once all entries are recored and the Accounts tab is updated, please prepare the financial statements (income statement and balance sheet) for the month of January. E: Activitn For The Month of August 1 Mason 8utomotive sells 7,350,000 shares at $6 par for $20 on January 1 st, 2023. On January 3rd. Mason \&utomotive receives $39.6 Milion advance payment from a customer, Highland lne, to manufacture 6,820 cars. 3 Mason Butomotive pre-pays for rent Expense for the neat five years of $25 Million on January Mason Butomotive purchased $162 Million dollars worth of inventory on January 5 th, 2023. 4 \$79.2 Million was paid with oash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory. Mason Automotive buys a patent from Apple for $19.965 Million on January 1st, 2023. The 5 .patent has a legal life of 22 years and useful life of 21 years. Record the necessary entry as of January 1st, 2023. Assume the patent was purchased using cash. Mason Rutomotive Issues a bond psyable on January ist, 2023 wth a ace value of \$17 Minion at 95 . The bond will have a useful life of 10 years with an interest payment of 9.25% (Annual Percentage Rate) due at the end of the month. Fiecord the necessary journal entry as of January 15t,2023. Note: When considering the amortization of the discount or premium, assume the straight line On January 15th, Mason \&utomotive shipped two orders to Fanther Paws Corporation. The shipping terms were FOB Destination. The first part of the delivery was received by Pather 7 Paws on January 17 th with a sales value of $178.2Milion and the inventory cost was $95.7 Million. The second part of the delivery was received on February 3 rd with a sales value of $250 Million and an inventory cost of $175 Million. Assume that this sale was made on account. 8 27th, 2023. Mason Automotive purchases figed assets of $176 Milion that will have a useful life of 14 gears and a salvage value of $55 million on January 151,2023,$70 million was paid with oash with the remaining balance on account. These assets are depreciated using the straight-line EdMason, the EEO, bires 3,870 employees, Whom will receive a combined salary of $7,38 Milion on a monthly basis. The employees started on January 1st and will be paid for the month 10 of January on February sth. Employee's withholdings are as follows. 11\% for federal income lakes 5.6% for state income tases and 7.65% for FICA. Record the necessary entry as of the On January 30th, Mason Butomotive decides to purchase 142,000 shares of Treasury stock at 11$22 per share. Month End Adjusting Entries There are 10 applicable adjusting entries that need to be made as of the end of the month based on the information provided above. When recording these adjusting entries consider the following facts: 1 Record the necessary adjusting entries related to pre-paid expense as separate journal entries. 2 Interest expense will be recorded as an operating expense item on the income statement. As of the end of the month, 4,620 cars were completed for Highland Inc. and the performance obligation had been met on those 4,620 cars. As such, revenue was determined to be earned on those 4,620 vehicles and it was noted that each vehicle costed $3,300 to manufacture. (These journal entries are considered 2 of the 10 3 total adjusting entries). When reviewing the supply room as of the end of the month, Mason Automation noted that it had $3 Million 32.4 worth of supplies still on hand. 335 There should be two separate entries related to payroll that is recorded. Mason Automation uses the balance sheepproach in estimating the allowance for doubtful accounts as of the end of the period. Based on industry average, Mason noted that it will use 10% of receivables as an 6 estimation. Note on Balance sheet: When preparing the balance sheet, close out net income to retained earnings. Note ITEMS IN WHITE ARE IFEMS THAT Mason Automation Multiple Step income Statement-Fiscal Month End. Operating Expenses (Selling and Administrative) Total Operating Expenses Net income Filf this number in Background Information Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, January 1st, 2023 was the first day that Mason was in business. For the month of August, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting journal entries as of the end of the month. From the information below, please fill out the 'journal entries' tab for all the necessary journal entries. Furthermore, please complete the 'T-Accounts' tab for the individual accounts so that the 'trial balance' tab can be updated (automatically). I prepared the first journal entry for you in the journal entries tab and T-Accounts tab. Ensure you label the entries how I have for Entry \#1. Once all entries are recored and the Accounts tab is updated, please prepare the financial statements (income statement and balance sheet) for the month of January. E: Activitn For The Month of August 1 Mason 8utomotive sells 7,350,000 shares at $6 par for $20 on January 1 st, 2023. On January 3rd. Mason \&utomotive receives $39.6 Milion advance payment from a customer, Highland lne, to manufacture 6,820 cars. 3 Mason Butomotive pre-pays for rent Expense for the neat five years of $25 Million on January Mason Butomotive purchased $162 Million dollars worth of inventory on January 5 th, 2023. 4 \$79.2 Million was paid with oash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory. Mason Automotive buys a patent from Apple for $19.965 Million on January 1st, 2023. The 5 .patent has a legal life of 22 years and useful life of 21 years. Record the necessary entry as of January 1st, 2023. Assume the patent was purchased using cash. Mason Rutomotive Issues a bond psyable on January ist, 2023 wth a ace value of \$17 Minion at 95 . The bond will have a useful life of 10 years with an interest payment of 9.25% (Annual Percentage Rate) due at the end of the month. Fiecord the necessary journal entry as of January 15t,2023. Note: When considering the amortization of the discount or premium, assume the straight line On January 15th, Mason \&utomotive shipped two orders to Fanther Paws Corporation. The shipping terms were FOB Destination. The first part of the delivery was received by Pather 7 Paws on January 17 th with a sales value of $178.2Milion and the inventory cost was $95.7 Million. The second part of the delivery was received on February 3 rd with a sales value of $250 Million and an inventory cost of $175 Million. Assume that this sale was made on account. 8 27th, 2023. Mason Automotive purchases figed assets of $176 Milion that will have a useful life of 14 gears and a salvage value of $55 million on January 151,2023,$70 million was paid with oash with the remaining balance on account. These assets are depreciated using the straight-line EdMason, the EEO, bires 3,870 employees, Whom will receive a combined salary of $7,38 Milion on a monthly basis. The employees started on January 1st and will be paid for the month 10 of January on February sth. Employee's withholdings are as follows. 11\% for federal income lakes 5.6% for state income tases and 7.65% for FICA. Record the necessary entry as of the On January 30th, Mason Butomotive decides to purchase 142,000 shares of Treasury stock at 11$22 per share. Month End Adjusting Entries There are 10 applicable adjusting entries that need to be made as of the end of the month based on the information provided above. When recording these adjusting entries consider the following facts: 1 Record the necessary adjusting entries related to pre-paid expense as separate journal entries. 2 Interest expense will be recorded as an operating expense item on the income statement. As of the end of the month, 4,620 cars were completed for Highland Inc. and the performance obligation had been met on those 4,620 cars. As such, revenue was determined to be earned on those 4,620 vehicles and it was noted that each vehicle costed $3,300 to manufacture. (These journal entries are considered 2 of the 10 3 total adjusting entries). When reviewing the supply room as of the end of the month, Mason Automation noted that it had $3 Million 32.4 worth of supplies still on hand. 335 There should be two separate entries related to payroll that is recorded. Mason Automation uses the balance sheepproach in estimating the allowance for doubtful accounts as of the end of the period. Based on industry average, Mason noted that it will use 10% of receivables as an 6 estimation. Note on Balance sheet: When preparing the balance sheet, close out net income to retained earnings. Note ITEMS IN WHITE ARE IFEMS THAT Mason Automation Multiple Step income Statement-Fiscal Month End. Operating Expenses (Selling and Administrative) Total Operating Expenses Net income Filf this number in
