Please make adjusting journal entries in the (Worksheet 1). Unadjusted trial balance for doing the adjusting journal entries is pictured. (Worksheet 1) is what we need to work on and (Worksheet 2) is the information that would be needed to complete the (worksheet 1). The (Worksheet 2) is the general journal entries that I used to make the unadjusted trial balance on the (Worksheet 1). For the Worksheets, the (Worksheet 1) are picture 1, 2, and 3, and the (Worksheet 2) are picture q, w, ee, and r. Additionally, the (Worksheet 1) is the template. Tank you for your work!

Ozark closes to customers from Christmas until January 2. Employees do work counting inventory, doing maintenance, and cleaning. The following information pertains to potential year-end adjusting entries. If needed, the applicable federal income tax rate for prior and the current year is 30%.

(Direction for adjusting journal entries)

6: An aging schedule is to be done to establish the allowance for bad debts: The allowance should be:

Age Amount Percentage

0-30 days $30,000 1%

30-60 days 10,000 5%

Over 60 days Balance 20%

7: A physical inventory was taken of the 510, supplies account, the December 31, 2016 balance was $2,100.

8: A physical inventory was taken of account 505, Inventory, sports equipment. The agreed upon value using LIFO was $31,000. Remember, this inventory is recorded under the periodic method. At this point, you should make entries to arrive at the cost of goods sold. Freight is to be added to purchases to get cost delivered to Ozark. Purchase discounts should be subtracted. Always build the cost of goods available to sell. Then deduct ending inventory to arrive at cost of goods sold.

9: The law suit involves a suit by a customer concerning damage to a boat caused by a boat lift. Your lawyer thinks that you will have to pay damages and the estimate is $7,000.

10: As of Dec. 31, 2016, accrued salaries are $4,000 and accrued labor wages are $9,000. Don't forget added employer paid tax for FICA and Medicare and as 10% income tax withholding. Rather than creating new accrual accounts, you may use the usual payroll and tax payable accounts. This will not make a problem since this entry will be reversed on January 1, 2017. Remember to round up payroll taxes to the nearest dollar.

"T" The applicable income tax rate is 30%. The adjustment for income tax expense cannot be made until you have calculated income before tax on the worksheet. Thus, no entry is made at this point. Be sure that you do not include the provision for income taxes in the amounts summed to calculate income before taxes. (Otherwise, you would calculate tax on income that is already net of tax.)

(Worksheet 1)

(Worksheet 2)

Adjusted Trial Balanc Income Statement Debit Credit Debit Credit Retained Earnings Debit Credit Balance Sheet Debit Credit 401 402 403 404 405 406 4061 501 Deduct 2 if no entries Unadjusted Trial Bala Adjusting Entries Debit Credit Key Debit Key Credit 27.103 203,992 85.575 1,887 10,000 12,000 94,000 503 505 510 511 2,260 25,000 1,800 1,000 2 3 31-Dec-16 4 5 Cash-checking 6 Cash-money market 7 Accounts receivable 8 Allowance for bad debts 9 Rebate Receivable 10 Trading investments 11 Trading Invest Market Adj 12 Inventory, piers and lifts 13 14 Inventory, dock parts 15 Inventory, sports equipme 16 Supplies 17 Prepaid expense 18 19 20 Security deposit 21 Land 22 Buildings 23 Accumulated depreciatior 24 Barge 25 Accumulated depreciation 26 Trucks 27 Accumulated Depreciation 28 Tools 29 Customer Deposits 30 Accounts payable 31 32 Wages payable 33 FICA and Medicare payat 34 Payroll tax withholdings 35 State sales tax payable 36 Federal Income taxes pay 37 Estimated liabilities 38 Accrued interest payable 39 Deferred revenue 40 Gift Certificate Lia 41 Notes payable 42 Mortgage payable 2,000 120,000 450,000 150,000 78,000 512 520 530 531 532 533 534 535 537 600 601 26.000 110,000 26,000 9,700 4,000 79.400 602 603 604 605 606 607 608 6091 6092 610 611 2,880 4,000 3.2501 120,000 269,000 40,000 10,000 190.000 158,791 10,000 612 613 700 701 702 703 704 101 102 103 104 105 106 107 109 110 111 201 203 204 205 961,000 168,800 306,000 203.500 110.500 43,500 4,500 900 1,450 702,000 189,840 105,300 43 Installment contracts pay 44 Deferred sport rental 45 Common stock 46 Paid in excess of par 47 Retained Earnings 48 Dividends declared 49 Prior Period Adjustment 50 Pier and Lift Sales 51 Pier and lift installation lal 52 Custom Dock Sales 53 Seawall installations 54 Sports equipment sales 55 Sports equipment rental 56 Permit fee revenue 57 Interest revenue 58 Gain/Loss sale of fixed 59 Unrealized gain/loss mark 60 Cost of sales-piers and lif 61 Dock parts costs 62 Seawall costs 63 Sports equipment Cost of 64 65 66 Sports equipment purcha: 67 Purchase discounts taker 68 Salaries expense 69 Labor expense 70 Payroll tax expense 71 Utilities expense 72 Insurance expense 73 Maintenance expense 74 Fuel expense 75 Property tax expense 76 Advertising expense 77 Supplies expense 78 Professional fees expens 79 Freight In 80 Interest expense 81 Bad debt expense 82 Depreciation expense-bui 83 Depreciation expense-bar 84 Depreciation expense-trud 89,200 4,060 206 210 311 312 313 314 315 316 317 318 319 320 321 322 323 324 331 333 335 107,000 223,000 25,247 20,400 40,200 16,900 6,300 12.000 40.080 12.9001 9,795 5,600 28,190 5,137 5,000 337 340 341 350 399 85 Depreciation expense-too 86 Inventory write-down 87 Exchange Gain/Loss 88 Estimated losses 89 Income tax expense 90 Totals 91 Net Income before tax 92 Income Tax Expense 93 Income Tax Payable 94 Net Income after Tax 95 Ending Retained Earnings 96 2,887,968 2,887,968 399 606 Credit General Journal Entries Date Entry # Acct. No. Accounts 24-Dec 5 601 Accounts payabe 210 Purchase discounts taken 401 Cash-checking Debit 25,000 100 24,840 6 89,250 401 Cash-checking 101 Pier and Lift Sales 605 State sales tax payable 85,000 4,250 7 84.000 201 Cost of sales 501 Inventory. piers and lifts 64,000 8 1,575 401 Cash-cheding 102 Pier and lift installation labor 805 State sales tax payable 1,500 75 9 17,000 501 Inventory, piers and lifts 601 Account payable 17.000 10 47.250 403 Account receivable 103 Custom dock sale 605 State sales tax payable 45,000 2.250 11 15.000 203 Dock parts cost 601 Account payable 15,000 12 3,000 203 Dock parts cost 503 Inventory, dock parts 3,000 13 1.500 503 Inventory, dock Parts 601 Accounts payable 1,500 14 17.850 403 Accounts receivable 104 Seawall installations 605 State sales tax payable 17,000 850 15 7.000 204 Seawall costs 601 Account payable 7.000 16 13.650 401 Cash-checking 105 Sports equipment sales 605 State sales tax payable 13,000 650 17 7.500 206 Sports equipment purchases 601 Accounts payable 7.500 18 23,000 401 Cash-checking 404 Allowance for bad debts 403 Account receivable 403 Account receivable 2.000 23,000 2.000 19 319 Advertising expenses 401 Cash-checking 2.300 2,300 19 2,300 319 Advertising expenses 401 Cash-checking 2.300 20 1,000 317 Fuel expense 401 Cash-checking 1,000 21 1.000 322 Frieght in 401 Cash-checking 1,000 ISI 1,800 314 Utilities expense 401 Cash-checking 1,800 23 13,000 311 Salaries Expense 603 FICA and medicare payable 804 Payroll tax withholdings 602 wages payable 995 1.300 10.705 995 313 Payroll tax expense 603 FICA and Medicare Payable 995 24 15,000 312 Labor expense 603 FICA and medicare payable 604 Payroll tax withholdings 602 Wages payable 1,148 1,500 12,352 1,148 313 Payroll tax expenses 603 FICA and medicare payable 1,148 25 811 Mortgage payable 323 Interest expense 401 Cash-checking 860 1.190 2.050 26 851 324 Bad debt expense 404 Allowance for bad debts 651 27 5,000 335 Depreciation expense - truck 535 Accumulated depreciation - truck 5,000 401 Cash-checking 535 Accumulated depreciation - truck 110 Gain on sale 534 Truck 8,550 15,000 1.450 25.000 28 50.000 534 Truck 401 Cash-checking 812 Installment contracts payable 10,000 40,000 29 13,000 532 Barge 401 Cash-checking 13,000 30 2.500 403 Accounts receivable 107 Permit fees revenue 401 Cash-checking 500 2,000 31 3,000 537 Tools 4n1 Cash-checking 3.00 31 3,000 537 Tools 401 Cash-checking 3,000 32 10.000 703 Dividends declared 401 Cash-checking 10,000 33 8,500 401 Cash-checking 6091 Deferred revenue- gift certificate 8.500 34 5,250 6092 Gift Certificate Liability 105 Sports equipment sales 605 State sales tax payable 5,000 250 35 1,500 404 Allowance for bad debts 403 Accounts receivable 1,500 36 14,800 401 Cash-checking 106 Sports equipment rentals revenue 605 State sales tax payable 800 l Customer deposits 12.000 600 2,000 37 2.400 321 Professional fees expense 601 Accounts payable 2.400 38 10,000 405 Rebate receivable 501 Inventory, piers and lifts 201 Cost of sales - Piers and lifts 2.000 8,000 39 4,380 319 Advertising expense 401 Cash-checking 607 Estimated liabilities for losses 1.500 2.880 40 511 Pre-paid expense 512 Security deposit 401 Cash-checking 1,000 2,000 3,000 26-Dec 1 23,057 602 Wages payable 401 Cash-checking 23,057 2 4,286 603 FICA and medicare payable 401 Cash-checking 4,286 3 2.800 604 Payroll tax expense 401 Cash-checking 2.800 4 8.925 605 State sales tax payable 401 Cash-checking 8.925 5 12,350 20 403 Account receivable 321 Professional fees expense 401 Cash-checking 401 Cash-checking 12,350 20 8 2,000 600 Customer deposits 401 Cash-checking 2,000 605 State sales tax payable 600 Customer deposits 600 2.000 37 2,400 321 Professional fees expense 601 Accounts payable 2,400 38 10,000 405 Rebate receivable 501 Inventory, piers and lifts 201 Cost of sales - Piers and lifts 2,000 8,000 39 4,380 319 Advertising expense 401 Cash-checking 607 Estimated liabilities for losses 1.500 2,880 40 511 Pre-paid expense 512 Security deposit 401 Cash-checking 1,000 2.000 3,000 28-Dec 1 23,057 602 Wages payable 401 Cash-checking 23,057 2 4,286 603 FICA and medicare payable 401 Cash-cheding 4,286 3 2.800 604 Payroll tax expense 401 Cash-checking 2.800 4 8.925 605 State sales tax payable 401 Cash-checking 8.925 5 12,350 20 403 Account receivable 321 Professional fees expense 401 Cash-checking 401 Cash-checking 12,350 20 6 600 Customer deposits 401 Cash-checking 2.000 2,000 7 30.000 402 Cash-money market 401 Cash-checking 30.000 8 900 402 Cash-money market 109 Interest revenue 900 9 75 321 Professional fees expense 401 Cash-checking 75 Adjusted Trial Balanc Income Statement Debit Credit Debit Credit Retained Earnings Debit Credit Balance Sheet Debit Credit 401 402 403 404 405 406 4061 501 Deduct 2 if no entries Unadjusted Trial Bala Adjusting Entries Debit Credit Key Debit Key Credit 27.103 203,992 85.575 1,887 10,000 12,000 94,000 503 505 510 511 2,260 25,000 1,800 1,000 2 3 31-Dec-16 4 5 Cash-checking 6 Cash-money market 7 Accounts receivable 8 Allowance for bad debts 9 Rebate Receivable 10 Trading investments 11 Trading Invest Market Adj 12 Inventory, piers and lifts 13 14 Inventory, dock parts 15 Inventory, sports equipme 16 Supplies 17 Prepaid expense 18 19 20 Security deposit 21 Land 22 Buildings 23 Accumulated depreciatior 24 Barge 25 Accumulated depreciation 26 Trucks 27 Accumulated Depreciation 28 Tools 29 Customer Deposits 30 Accounts payable 31 32 Wages payable 33 FICA and Medicare payat 34 Payroll tax withholdings 35 State sales tax payable 36 Federal Income taxes pay 37 Estimated liabilities 38 Accrued interest payable 39 Deferred revenue 40 Gift Certificate Lia 41 Notes payable 42 Mortgage payable 2,000 120,000 450,000 150,000 78,000 512 520 530 531 532 533 534 535 537 600 601 26.000 110,000 26,000 9,700 4,000 79.400 602 603 604 605 606 607 608 6091 6092 610 611 2,880 4,000 3.2501 120,000 269,000 40,000 10,000 190.000 158,791 10,000 612 613 700 701 702 703 704 101 102 103 104 105 106 107 109 110 111 201 203 204 205 961,000 168,800 306,000 203.500 110.500 43,500 4,500 900 1,450 702,000 189,840 105,300 43 Installment contracts pay 44 Deferred sport rental 45 Common stock 46 Paid in excess of par 47 Retained Earnings 48 Dividends declared 49 Prior Period Adjustment 50 Pier and Lift Sales 51 Pier and lift installation lal 52 Custom Dock Sales 53 Seawall installations 54 Sports equipment sales 55 Sports equipment rental 56 Permit fee revenue 57 Interest revenue 58 Gain/Loss sale of fixed 59 Unrealized gain/loss mark 60 Cost of sales-piers and lif 61 Dock parts costs 62 Seawall costs 63 Sports equipment Cost of 64 65 66 Sports equipment purcha: 67 Purchase discounts taker 68 Salaries expense 69 Labor expense 70 Payroll tax expense 71 Utilities expense 72 Insurance expense 73 Maintenance expense 74 Fuel expense 75 Property tax expense 76 Advertising expense 77 Supplies expense 78 Professional fees expens 79 Freight In 80 Interest expense 81 Bad debt expense 82 Depreciation expense-bui 83 Depreciation expense-bar 84 Depreciation expense-trud 89,200 4,060 206 210 311 312 313 314 315 316 317 318 319 320 321 322 323 324 331 333 335 107,000 223,000 25,247 20,400 40,200 16,900 6,300 12.000 40.080 12.9001 9,795 5,600 28,190 5,137 5,000 337 340 341 350 399 85 Depreciation expense-too 86 Inventory write-down 87 Exchange Gain/Loss 88 Estimated losses 89 Income tax expense 90 Totals 91 Net Income before tax 92 Income Tax Expense 93 Income Tax Payable 94 Net Income after Tax 95 Ending Retained Earnings 96 2,887,968 2,887,968 399 606 Credit General Journal Entries Date Entry # Acct. No. Accounts 24-Dec 5 601 Accounts payabe 210 Purchase discounts taken 401 Cash-checking Debit 25,000 100 24,840 6 89,250 401 Cash-checking 101 Pier and Lift Sales 605 State sales tax payable 85,000 4,250 7 84.000 201 Cost of sales 501 Inventory. piers and lifts 64,000 8 1,575 401 Cash-cheding 102 Pier and lift installation labor 805 State sales tax payable 1,500 75 9 17,000 501 Inventory, piers and lifts 601 Account payable 17.000 10 47.250 403 Account receivable 103 Custom dock sale 605 State sales tax payable 45,000 2.250 11 15.000 203 Dock parts cost 601 Account payable 15,000 12 3,000 203 Dock parts cost 503 Inventory, dock parts 3,000 13 1.500 503 Inventory, dock Parts 601 Accounts payable 1,500 14 17.850 403 Accounts receivable 104 Seawall installations 605 State sales tax payable 17,000 850 15 7.000 204 Seawall costs 601 Account payable 7.000 16 13.650 401 Cash-checking 105 Sports equipment sales 605 State sales tax payable 13,000 650 17 7.500 206 Sports equipment purchases 601 Accounts payable 7.500 18 23,000 401 Cash-checking 404 Allowance for bad debts 403 Account receivable 403 Account receivable 2.000 23,000 2.000 19 319 Advertising expenses 401 Cash-checking 2.300 2,300 19 2,300 319 Advertising expenses 401 Cash-checking 2.300 20 1,000 317 Fuel expense 401 Cash-checking 1,000 21 1.000 322 Frieght in 401 Cash-checking 1,000 ISI 1,800 314 Utilities expense 401 Cash-checking 1,800 23 13,000 311 Salaries Expense 603 FICA and medicare payable 804 Payroll tax withholdings 602 wages payable 995 1.300 10.705 995 313 Payroll tax expense 603 FICA and Medicare Payable 995 24 15,000 312 Labor expense 603 FICA and medicare payable 604 Payroll tax withholdings 602 Wages payable 1,148 1,500 12,352 1,148 313 Payroll tax expenses 603 FICA and medicare payable 1,148 25 811 Mortgage payable 323 Interest expense 401 Cash-checking 860 1.190 2.050 26 851 324 Bad debt expense 404 Allowance for bad debts 651 27 5,000 335 Depreciation expense - truck 535 Accumulated depreciation - truck 5,000 401 Cash-checking 535 Accumulated depreciation - truck 110 Gain on sale 534 Truck 8,550 15,000 1.450 25.000 28 50.000 534 Truck 401 Cash-checking 812 Installment contracts payable 10,000 40,000 29 13,000 532 Barge 401 Cash-checking 13,000 30 2.500 403 Accounts receivable 107 Permit fees revenue 401 Cash-checking 500 2,000 31 3,000 537 Tools 4n1 Cash-checking 3.00 31 3,000 537 Tools 401 Cash-checking 3,000 32 10.000 703 Dividends declared 401 Cash-checking 10,000 33 8,500 401 Cash-checking 6091 Deferred revenue- gift certificate 8.500 34 5,250 6092 Gift Certificate Liability 105 Sports equipment sales 605 State sales tax payable 5,000 250 35 1,500 404 Allowance for bad debts 403 Accounts receivable 1,500 36 14,800 401 Cash-checking 106 Sports equipment rentals revenue 605 State sales tax payable 800 l Customer deposits 12.000 600 2,000 37 2.400 321 Professional fees expense 601 Accounts payable 2.400 38 10,000 405 Rebate receivable 501 Inventory, piers and lifts 201 Cost of sales - Piers and lifts 2.000 8,000 39 4,380 319 Advertising expense 401 Cash-checking 607 Estimated liabilities for losses 1.500 2.880 40 511 Pre-paid expense 512 Security deposit 401 Cash-checking 1,000 2,000 3,000 26-Dec 1 23,057 602 Wages payable 401 Cash-checking 23,057 2 4,286 603 FICA and medicare payable 401 Cash-checking 4,286 3 2.800 604 Payroll tax expense 401 Cash-checking 2.800 4 8.925 605 State sales tax payable 401 Cash-checking 8.925 5 12,350 20 403 Account receivable 321 Professional fees expense 401 Cash-checking 401 Cash-checking 12,350 20 8 2,000 600 Customer deposits 401 Cash-checking 2,000 605 State sales tax payable 600 Customer deposits 600 2.000 37 2,400 321 Professional fees expense 601 Accounts payable 2,400 38 10,000 405 Rebate receivable 501 Inventory, piers and lifts 201 Cost of sales - Piers and lifts 2,000 8,000 39 4,380 319 Advertising expense 401 Cash-checking 607 Estimated liabilities for losses 1.500 2,880 40 511 Pre-paid expense 512 Security deposit 401 Cash-checking 1,000 2.000 3,000 28-Dec 1 23,057 602 Wages payable 401 Cash-checking 23,057 2 4,286 603 FICA and medicare payable 401 Cash-cheding 4,286 3 2.800 604 Payroll tax expense 401 Cash-checking 2.800 4 8.925 605 State sales tax payable 401 Cash-checking 8.925 5 12,350 20 403 Account receivable 321 Professional fees expense 401 Cash-checking 401 Cash-checking 12,350 20 6 600 Customer deposits 401 Cash-checking 2.000 2,000 7 30.000 402 Cash-money market 401 Cash-checking 30.000 8 900 402 Cash-money market 109 Interest revenue 900 9 75 321 Professional fees expense 401 Cash-checking 75