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Please need help with the trial balance and income statement! T- Accounts as well if possible! t JE Activity For The Month of January Mason
Please need help with the trial balance and income statement! T- Accounts as well if possible! t
JE Activity For The Month of January Mason Automotive sells 5.000.000 shares at S4 par for S22 on January 1st, 2021. 2 Ed Mason, the CEO hires 3.500 employees, whom will receive a combined salary or 5.6 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 Mason Automotive pre-pays for rent Expense for the next three years of S22 Million on January 1st. 2021 4 Mason Automotive purchased S175 Million dollars worth of inventory on January 3rd, 2021. S&S Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory 5 Mason Automotive purchased S8 Million dollars worth of supplies on account on January 4th, 2021 6 Mason Automotive purchases fixed assets of SIS5 Million that will have a useful life of 15 years and a salvage value of S40 million on January 5th, 2021 555 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line methos 7 Mason Automotive issues a bond payable on January 7th, 2021 with a face value of S115 Million at 97 The bond will have a useful life of 15 years with an interest payment of 78% Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 8th, 2021 Note: When considering the amortization of the discount or premium, assume the straight line method is used. Interest will be accrued on a monthly basis. On January 8th, Mason Automotive receives $49 Million advance payment from a customer. Highland Inc.. to manufacture 7.000 cars Mason Automotive buys a patent from Apple for $13.95 Million on January 10th, 2021. The patent has a legal life of 27 years and useful life of 18 years. Record the necessary entry as of January 10th, 2021. Assume the patent was purchased using cash On January 11th Mason Automotive shipped an order to Panther Paws Corporation. The shipping terms were FOB 10 shipping point. The sales value of the order was S185 Million and the inventory cost was 595 Million, Assume that this sald was made on account 1. On Janaury 21st, Mason Automotive decides to purchase 135,000 shares of Treasury stock at $26 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: Interest expense will be recorded as an operating expense item 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 $4,6 Million worth of supplies still on hand As of the end of the month, 3.500 cars were completed for Highland Inc. and the performance obligation had been met on 4. those 3,500 cars. As such, revenue was determined to be cared on those 3.500 vehicles and it was noted that each vehicle costed $5,000 to manufacture. (These journal entries are 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 7.5% of receivables as an estimation There should be no separate entries related to payroll that is recorded. Noton Balance Sheet: When peparing the balance sheet close out net income to retained camnings, Note: If you have completed the T-Accounts tab, this tab should automatically update. Please use this tab for purposes of creating the financial statements, Opening Balance Sheet Credit Debit 110,000,000 Adjusted Trial Balance 110,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Supplies Pre-Paid Expense Property Plant and Equipment Accumulated Depreciation Patent Accounts Payable Uncarned Revenue Salaries and Wages Payable FICA Withholding Payable Federal Income Tax Payable State Income Tax Payable Payable Bond Payable Premium Discount Common Stock Additional Paid In Capital Treasury Stock Retained Eamings Revenue Cost of Goods Sold Rent Expense Salaries and Wages Expense Payroll Tax Expense Depreciation Expense Amortization Expense Patent) Bad Debt Expense Supplies Expense Interest Expense Totals 0 0 0 0 0 0 20.000.000 90,000,000 0 -20.000.000 -90,000,000 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 O O 0 110,000,000 110,000,000 Information Journal Entries T-Accounts Trial Balance Income State 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 S Mason Automation Multiple Step Income Statement-Fiscal Month End 1/31/18 (Enter Account Description) (Enter Account Description) Total Revenue (Enter Account Description) (Enter Account Description) Gross Profit 0 0 0 Operating Expenses (Selling and Administrative) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) Total Operating Expenses 0 0 0 Net Income Fill this number in JE Activity For The Month of January Mason Automotive sells 5.000.000 shares at S4 par for S22 on January 1st, 2021. 2 Ed Mason, the CEO hires 3.500 employees, whom will receive a combined salary or 5.6 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 Mason Automotive pre-pays for rent Expense for the next three years of S22 Million on January 1st. 2021 4 Mason Automotive purchased S175 Million dollars worth of inventory on January 3rd, 2021. S&S Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory 5 Mason Automotive purchased S8 Million dollars worth of supplies on account on January 4th, 2021 6 Mason Automotive purchases fixed assets of SIS5 Million that will have a useful life of 15 years and a salvage value of S40 million on January 5th, 2021 555 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line methos 7 Mason Automotive issues a bond payable on January 7th, 2021 with a face value of S115 Million at 97 The bond will have a useful life of 15 years with an interest payment of 78% Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 8th, 2021 Note: When considering the amortization of the discount or premium, assume the straight line method is used. Interest will be accrued on a monthly basis. On January 8th, Mason Automotive receives $49 Million advance payment from a customer. Highland Inc.. to manufacture 7.000 cars Mason Automotive buys a patent from Apple for $13.95 Million on January 10th, 2021. The patent has a legal life of 27 years and useful life of 18 years. Record the necessary entry as of January 10th, 2021. Assume the patent was purchased using cash On January 11th Mason Automotive shipped an order to Panther Paws Corporation. The shipping terms were FOB 10 shipping point. The sales value of the order was S185 Million and the inventory cost was 595 Million, Assume that this sald was made on account 1. On Janaury 21st, Mason Automotive decides to purchase 135,000 shares of Treasury stock at $26 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: Interest expense will be recorded as an operating expense item 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 $4,6 Million worth of supplies still on hand As of the end of the month, 3.500 cars were completed for Highland Inc. and the performance obligation had been met on 4. those 3,500 cars. As such, revenue was determined to be cared on those 3.500 vehicles and it was noted that each vehicle costed $5,000 to manufacture. (These journal entries are 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 7.5% of receivables as an estimation There should be no separate entries related to payroll that is recorded. Noton Balance Sheet: When peparing the balance sheet close out net income to retained camnings, Note: If you have completed the T-Accounts tab, this tab should automatically update. Please use this tab for purposes of creating the financial statements, Opening Balance Sheet Credit Debit 110,000,000 Adjusted Trial Balance 110,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Supplies Pre-Paid Expense Property Plant and Equipment Accumulated Depreciation Patent Accounts Payable Uncarned Revenue Salaries and Wages Payable FICA Withholding Payable Federal Income Tax Payable State Income Tax Payable Payable Bond Payable Premium Discount Common Stock Additional Paid In Capital Treasury Stock Retained Eamings Revenue Cost of Goods Sold Rent Expense Salaries and Wages Expense Payroll Tax Expense Depreciation Expense Amortization Expense Patent) Bad Debt Expense Supplies Expense Interest Expense Totals 0 0 0 0 0 0 20.000.000 90,000,000 0 -20.000.000 -90,000,000 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 O O 0 110,000,000 110,000,000 Information Journal Entries T-Accounts Trial Balance Income State 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 S Mason Automation Multiple Step Income Statement-Fiscal Month End 1/31/18 (Enter Account Description) (Enter Account Description) Total Revenue (Enter Account Description) (Enter Account Description) Gross Profit 0 0 0 Operating Expenses (Selling and Administrative) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) (Enter Account Description) Total Operating Expenses 0 0 0 Net Income Fill this number in
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