PLEASE ONLY DO THE SUPPLEMENTAL QUESTION PART THANK YOU

Financial Statement Homework #3 Name YOU MUST SUBMIT ALL HANDWRITTEN PAGES OF THIS DOCUMENT Part 1: Insert the Trial Balance HERE 1000 32000 32.000 0 Be Mountain Company Teal Balance 11/2007 OF Cash 172000 Accounts Receivable 124.000 Alowance for Doubt Accounts Shorterm Not Receivable 30,000 Supplies Inventory 62.000 Equipment 3.000 Building Accumulated Depreciation Copyright 94.000 Accounts payable Dividends Payable Interest Payable Unearned Revenue STi Note Payable LT Mortgage Payable Bonds Payable Premium on Bonas Payable Common Stocks par Paldin capital in Excess of Parcs Preferred to par Pad to capital in Excess of Par-PS Treasury Stock 0 Retained Earnings Dividends 2,000 Sales Revenue Sales Returns & Allowances 7,000 Sales Discounts 3.000 Cost of Goods Sold 46.000 Bad Debts Expense 5.000 Depreciation Expense 26,000 Wages Expense 167,500 Rent Expense 98,000 Insurance Expense 25,000 Suppies Expense 16,000 Interest Revenue Interest Expense 6,500 Gain on sale of Equipment Income Tax Expense 46,000 Total 1,070,000 24.000 22,500 0 300.000 26,840 TOOD 86,000 9.000 50,000 3.500 3901160 1,000 15,000 1,070,000 YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT. Instructions: You must turn in the work performed on the sheets printed with this page. Thus WILL NOT BE ACCEPTED ON PLAIN PAPER Write the journal entries (on the following General Journal page) required for each of the events described below. Write the entries in the order described below (1-25). Use ONLY the accounts listed on the trial balance for your journal entries Post the transactions to individual T-accounts and prepare an adjusted trial balance for your assigned company from page one as of December 31, 2017 1. The company purchased a building December 1, 2017 with a LT Mortgage Payable of $300,000 at 3% interest. (Record the purchase of the building.) 2. The company issued 1,000 shares of Common Stock for $6,000 on December 25, 2017 3. On December 29, 2017 the company declared a cash dividend of $3.00 per share for common stock on the shares issued and declared (including the additional 1,000 shares issued on December 25) 4. The terms of the LT mortgage payable from #1 above require the company to make monthly installment payments over the term of the loan. Each payment consists of interest on the unpaid balance of the loan and a reduction of loan principal. Record the first monthly payment of $3,800 on the LT Mortgage Payable on December 31, 2017 5. The company last paid interest on the ST note payable on November 1, 2017. Record the accrued interest expense for the last 2 months of 2017. The annual interest rate is 8%. Round to nearest whole dollar 6. The Bonds Payable and related Premium amounts on the Nov. trial balance relate to the Jan 1, 2017 issuance of the following bonds: On Jan 1, 2017, the company issued 10%, 10-year bonds when the market rate for similar investments was 8%. The company pays interest each year on January 19. On Dec. 31, 2017, use the effective interest method of amortizing the premium on bonds payable to accrue the interest expense for 2017. Round your interest expense calculation to the nearest whole dollar. 7. The Uneared Revenue amount on the Nov. trial balance relates to amounts that the company previously collected in cash for sales that were to be completed in the future. The company completed some of these sales during December and now owes only $10,000 of that unearned revenue. Record the necessary adjustment for December 31, 2017. 8. On December 31, 2017, the company purchased 50 shares of its own Preferred Stock for Treasury Stock for $11 per share. 2 YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT. Supplemental Questions 1. What will be the balance in the Mortgage Payable Account at Jan. 31, 2018 after the second monthly payment is made? 2. The Company is about to issue $2,000,000 of 5-year, 12% bonds. Interest will be paid semi- annually. The market interest rate for such securities is 10%. How much can The Company expect to receive from the sale (issuance) of these bonds? YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT