please fill out the income statment based off the Journal Entries provideded

Note: ITEMS IN WHITE ARE ITEMS THAT COULD BE FILLED IN BY YOU. JUST BECAUSE IT IS WHITE DOES NOT MEAN THERE HAS TO BE SOMETHING THERE Mason Automation Multiple Step Income Statement Fiscal Month End 1/31/2021 Enter Account Description) Enter Account Description Total Revenue Enter Account Description) Entor Account Description Gross Profit Operating Expenses (Selling and Administrative) Enter Account Description) (Enter Account Description) Linter Account Descnption Terter Account Description Center Account Description Entor Account Description Entor ADO Description Inter Account Destion Enter Account Description Total Operating Expenses Net Income Fill this number in 0 JE #1 Activity For The Month of January 1 Mason Automotive sells 10,000,000 shares at $2 par for $20 on January 1st, 2021. Mason Automotive purchases fixed assets of $160 Million that will have a useful life of 18 years and a salvage value of $30 million on January 9th, 2021. $60 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. Mason Automotive purchased $250 Million dollars worth of inventory on January 3rd, 2021. $90 Million 3 was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory. 4 Mason Automotive purchased $4 Million dollars worth of supplies on account on January 4th, 2021. Ed Mason, the CEO, hires 4,000 employees, whom will receive a combined salary of $4.75 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 4th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65% for FICA. Record the necessary entry as of the date of hire, January 1st, 2021. On January 6th, Mason Automotive receives $60 Million advance payment from a customer, Highland 6 Inc., to manufacture 6,000 cars. On January 7th, Mason Automotive shipped an order to Panther Paws Corporation. The shipping terms 7 were FOB shipping point. The sales value of the order was $200 Million and the inventory cost was $105 Million. Assume that this sale was made on account. Mason Automotive issues a bond payable on January 8th, 2021 with a face value of $100 Million at 95 The bond will have a useful life of 20 years with an interest payment of 7.5% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 8th, 2021. 8 (Note: When considering the amortization of the discount or premium, assume the straight line method is used). 9 Mason Automotive pre-pays for rent Expense for the next two years of $18 Million on January 1st, 2021. Mason Automotive buys a patent from Apple for $17.5 Million on January 10th, 2021. The patent has a 10 legal life of 27 years and useful life of 20 years. Record the necessary entry as of January 10th, 2021. Assume the patent was purchased using cash. 11 On January 21st, Mason Automotive decides to purchase 100,000 shares of Treasury stock at $22.5 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. Interest expense will be recorded as a operating expense items on the income statement. 2. Record the necessary adjusting entries related to pre-paid expense as separate journal entries. When reviewing the supply room as of the end of the month, Mason Automation noted that it had $3.5 3. Million worth of supplies still on hand. As of the end of the month, 3,000 cars were completed for Highland Inc. and the performance obligation had been met on those 3,000 cars. As such, revenue was determined to be earned on those 3,000 vehicles and it was noted that each vehicle costed $6,000 to manufacture. (These journal entries are 4. considered 2 of the 10 total adjusting entries). Mason Automation uses the balance sheet approach in estimating the allowance for doubtful accounts as of the end of the period. Based on industry average, Mason noted that it will use 6% of receivables as an 3 5. estimation 6. There should be two separate entries related to payroll that is recorded. 5 4 Credit Debit 200,000,000 Date Account Titles & Explanation 1 Cash Common Stock (10000000*2) Additional Pald in Capital (To record issue of shares) 20,000,000 180,000,000 160,000,000 2 Property Plant & Equipment Cash Accounts Payable (To record Purchase of assets) 90,000,000 70,000,000 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 B6 87 88 89 90 250,000,000 3 Merchandise Inventory Cash Accounts Payable (To record Purchase of Inventory) 90,000,000 160,000,000 4,000,000 4 Supplies Accounts Payable (To record Purchase of Supplies) 4,000,000 5 No entry required 60,000,000 6 Cash Unearned Revenue (To record revenue received in advance) 60,000,000 200,000,000 7 Accounts Receivable Sales Revenue (To record sales on account) 200,000,000 105,000,000 91 92 93 94 95 96 97 90 99 100 101 102 103 104 105 106 107 100 109 110 Cost of Goods sold Merchandise inventory (To record cost of inventory sold) 105,000,000 95,000,000 5,000,000 3 8 Cash Discount on bonds Payable Bonds Payable (To record bonds inued at discount) 100,000,000 18,000,000 9 Prepaid Rent Cash To record rent paid in advance) 18,000,000 112 10 Patent 17,500,000 17,500,000 112 113 114 115 10 Patent Cash (To record purchase of Patent) 17,500,000 116 2,250,000 2.250,000 11 Treasury Stock Cash (To record purchase of Treasury stock) Adjusting entries 1 Interest expense Discount on Bonds Payable Cash ( To record accrual of interest expense) 645,833 20.833 625,000 117 118 119 120 121 122 123 124 125 126 127 120 129 130 131 132 133 750,000 2 Rent expense Prepaid Rent (To record expired rent) 750,000 500,000 3 Supplies expense (4-3.5) Supplies (To record supplies consumed during the Year) 500,000 30,000,000 4 Unearned Revenue Sales Revenue (To record revenue earned) 30,000,000 18,000,000 18,000,000 12,000,000 134 135 136 137 138 139 140 141 142 143 144 145 146 147 140 149 150 151 132 153 Cost of Goods sold Merchandise Inventory To record cost of inventory sold) 5 Bad Debts Expense Allowance for Doubtful Debts (To record bad debts expense) 6 Salaries & Wages Expense Salaries & Wages Payable (To record accrued salaries & wages) 12,000,000 4,750,000 4,750,000 1,151.875 Payroll Tax Expense Federal Income Tax Payable State Income Tax Payable FICA Withholding Payable romandrinted manual 522,500 266,000 363,375 4,750,000 145 146 147 148 6 Salaries & Wages Expense Salaries & Wages Payable (To record accrued salaries & wages) 4,750,000 1,151,875 149 150 151 152 522.500 266,000 363,375 153 154 Payroll Tax Expense Federal Income Tax Payable State Income Tax Payable FICA Withholding Payable (To record tax related expense) 7 Amortization Expense Patent (To record amortization of Patent) 72,917 72.917 156 157 158 159 160 161 162 163 164 601,852 8 Depreciation Expense Accumulated Depreciation (To record depreciation expense) 601,852