Please make, Journal Entries, T-accounts, Unadjusted Trial Balance, Adjusted trial balance, Post Closing Trial balance, Multi-Step Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows. Financial statements will be for the month ended January 31, 2015. Please use the following Chart of accounts.

CHART OF ACCOUNTS
101	Cash	230	Interest Payable
106	Accounts Receivable	301	Common Stock
110	Allowance For Doubtful Accounts	350	Retained Earnings
126	Inventory	405	Sales Revenue
128	Prepaid Insurance	406	Sales Discounts and Allowance
131	Prepaid Rent	501	Cost of Goods Sold
135	Prepaid Advertising	520	Utility Expense
163	Office Equipment	525	Wage Expense
164	Mixing Barrels	530	Interest Expense
165	Factory Equipment	535	Rent expense
190	Accumulated Depreciation	545	Insurance Expense
201	Accounts Payable	550	Bad Debt Expense
215	Notes Payable	560	Depreciation Expense
220	Line of Credit	565	Advertising Expense
225	Income Taxes Payable	570	Income Tax Expense

Company Background and Accounting Policies:

Grandpas Cough Inc. (GCI) sells a uniquely flavored cough syrup either wholesale or through its own storefront.

Cases contain 24 bottles. Each bottle costs the company $2 to make and the company sells bottles for $4.5. Each case is sold for $90 the cost to ship is paid for by the customer. Customers pay at the last minute of their terms unless otherwise noted.

Gene has a revolving line of credit with a local bank, if the cash balance drops below $15,000 then Gene will draw money against the line of credit in $5,000 increments, until the balance is above $25,000. Simple interest rate on the line is 3.4%. Interest accrues daily and paid at the end of each month.

The company maintains inventory at $72,000, and will purchase materials every time the inventory drops below that amount in $4,000 increments, vendor pays shipping. Terms are N/15. Gene pays all bills at the last minute.

Round all answers to the nearest dollar

Grandpa's Cough Inc.
Balance Sheet
As of December 31, 2015
Assets
	Current Assets
		Cash					$ 16,000
		Accounts Receivable					10,000
		Allowance for Doubtful Accounts					(1,000)
		Inventory					50,000
		Prepaid Insurance					700
		Prepaid Rent					2,200
	Total Current Assets						$ 77,900
	Fixed Assets
		Office Equipment					$ 3,500
		Mixing Barrels					9,500
		Factory Equipment					15,000
		Less: Accumulated Depreciation					(19,860)
	Total Fixed Assets						$ 8,140
Total Assets							$ 86,040
Liabilities and Stockholders' Equity
	Current Liabilities
		Accounts Payable					$ 25,000
		Interest Payable					44
		Current Portion of Long Term Debt					1,600
	Total Current Liabilities						$ 26,644
	Long Term Debt
		Notes Payable					16,000
	Total Long Term Debt						16,000
	Total Liabilities						$ 42,644
	Stockholders' Equity
		Retained Earnings					$ 28,931
		Common Stock					14,465
	Total Stockholders' Equity						43,396
Total Liabilities and Stockholders' Equity							$ 86,040

Date	Transaction
January 1, 2015	Gene Autry became a new owner by investing $25,000 Cash and office equipment worth $6,000 in return for common stock of Grandpas Cough Inc.
1	Purchased Mixing Barrels worth $3,000 and Other Factory Equipment worth $600 on credit, N/30
1	Purchased Inventory on credit for $72,000 with terms N/15
1	Paid Vendor $15,000 for prior month purchases
2	Paid $4,500 for annual premium on insurance coverage starts at the end of the month.
3	During the grand opening of the store GCI sold 256 Bottles of Cough Syrup.
4	A wholesale customer ordered 100 cases, GCI shipped the order and billed the customer 2/5 N/10
5	Received payment from customer from prior month sale $5,000.
6	Sold 300 Bottles of Cough Syrup through the store.
7	Received half the payment for sale of goods on January 4
10	Paid $4,200 for three months rent for store front starting on January 1, 2015.
13	Sold 400 Bottles of Cough Syrup through the store
15	Shipped order for another wholesale customer 500 cases N/10
15	Received and paid Utility Bill for $500
18	Shipped order of 300 Cases to a wholesale customer N/10
20	Sold 625 Bottles of Cough Syrup through the store
25	Shipped order to wholesale customer 1,000 cases 2/10 N/30
26	Paid for mixing barrels and equipment purchased on January 1
27	Sold 1,000 bottles of Cough Syrup through the store
30	Paid wages under the table to employees of $15,000
31	Paid $2,000 for 12 month advertising campaign through local radio stations. The campaign starts February 1st.

Additional Project information:

Ensure you are using the December 31 balance sheet for the beginning balances of your accounts.

When you are setting up your accounts use the chart of accounts included on the front page (you will not need to create any new account or account number).

Please follow the journal entry format from the first two weeks of class.

There is only one general journal where all transactions are recorded.

Pay close attention to the transactions as they are listed on page three, these are not all transactions that you will need to journalize. The accounting policies on page 1 will require you to post additional entries (it helps to keep a tickler file).

Adjusting Journal Entry Information:

The beginning balance in Prepaid Rent was for the factory as of December 31, 2015 the balance had two months remaining.

Prior Period Prepaid Insurance was for an annual policy that expires at the end of January.

The Note was borrowed on December 31, 2015 and holds interest of 3%. Interest is accrued and not paid at the end of the month. The first principle payment is due in the month of June.

GCI wrote off $5,000 of bad debt at the end of the month, and used the aging of receivables method to estimate the allowance for doubtful accounts to be $10,000

All depreciation is straight-line with no residual value.

Office equipment is expected to last 5 years

Factory Equipment is expected to last 4 years

Mixing barrels are expected to last 10 years.

Assume the income tax rate for GCI is 15%.