Please help me complete the required tasks using the templates I included. Thanks in advance.
The unadjusted trial balance of Morgan Manufacturing Corp. at December 31, 2019 is shown on the "Trial Bal" page (see tab below). Refer also to the additional year-end information for the company shown on the "Adjusting Entries" page (see tab below). Required: 1 Prepare year-end adjusting entries. General ledger account numbers are not necessary. Show your calculations below each adjusting entry. 2 Post the adjusting entries to the trial balance and prepare an adjusted trial balance. 3 Using the amounts from the adjusted trial balance, complete the financial statements for the year ended December 31, 2019. The following additional information is available at the corporation's year-end. GST of 5% only applies when indicated. d. The estimated year-end audit fees are: $90,000 e. Rent revenue consists of 13 equal monthly payments, including one paid in advance for January 2020. f. A trade account payable was converted to a note payable during the year. No entry has been made to record this. The note payable is due at the end of 2020. g. A lawsuit was commenced against the company in 2019. Damages claimed are: Lawyers for the company consider the likelihood of success to be: Possible$30,000 h. The interest rate on the mortgage is: Annual payments (blended principal and interest) are made on Dec. 31 and total: The 2019 payment has been recorded as Interest on Long-term Debt expense. i. The corporate income tax rate as a percentage of income before income taxes is: Corporate income tax installments during the year have been recorded as Income Tax expense in the records. Assume any 2019 loss before income taxes will result in the refund of income taxes at the current year's income tax rate. Morgan Manufacturing Corp. GENERAL JOURNAL Irial Balance At December 31,2019 Morgan Manufacturing Corp. Income Statement For the Year Ended December 31, 2019 2019 Sales, net Less: Cost of goods sold Gross profit ##mmmmmmmm#9,017,3443,739,456 Operating expenses Selling Salaries and benefits Delivery Office supplies Warranty Total selling General and administrative Bad debts Depreciation Lawsuit damages Professional fees Total general and adminstrative Total operating expenses Income from operations Other income Rent revenue Income before interest and income taxes Interest expense Income before income taxes Income taxes Net income Morgan Manufacturing Corp. Statement of Changes in Equity For the Year Ended December 31, 2019 Morgan Manufacturing Corp. Balance Sheet At December 31, 2019 Assets Liabilities Current Trade accounts payable Estimated current liabilities Estimated warranty liabilities $108,150 84,600 126,900 Note payable 0 Interest payable Salaries and benefits payable Sales tax payable Unearned rent Current portion of mortgage payable Corporate income taxes payable Non-current Mortgage payable Less: Current portion Total liabilities
