Prepare a 10-Column Worksheet in your Excel workbook to convert the trial balance of Baron Flowers to the accrual basis of accounting for the year-ended December 31, 2018. The cash basis unadjusted trial balance provided to you should appear in the first column(s) of your 10- 4 Column Worksheet. Utilize the additional information presented to prepare the adjustments. All of your adjusting entries should be referenced.

The following information pertains to Baron Flowers, a corporation at 400 The Fenway, Boston, which maintains its books on the cash basis during the year. Each year, Baron's CPA, converts the books to the accrual basis in order to prepare Baron's tax return. No adjustments are made to the accounts during the fiscal year. You have been hired this year as the company's CPA to do this work. The results of any adjustments made in the prior year on 12.31.17 are reflected in the following unadjusted 12.31.18 trial balance. All other accounts are on the cash basis and at current year balance. Baron Flowers, Inc. Unadjusted Trial Balance December 31, 2018 Dec 31, 2018 Credit Debit 245,650 116,200 17,800 62,000 118,200 Cash Accounts receivable - 12.31.17 Allowance for doubtful accounts - 12.31.17 Inventory - 12.31.17 Furniture and fixtures Accumulated depreciation - 12.31.17 Accounts payable - 12.31.17 Interest payable -12.31.17 Notes payable Common stock, $10 par value Additional paid-in capital Retained earnings Sales revenue Purchases Land improvement expense Salaries expense Payroll taxes Income tax expense Insurance expense Rent expense Utilities expense Travel and entertainment expense TOTAL 32,400 17,000 2.250 50,000 20,000 30,000 119,600 1,000,000 405,100 50,000 174,000 12,400 45,000 8.700 34,200 12,600 13,000 1,297,050 $ $ 1,297,050 Baron has developed plans to expand into the wholesale flower market and is in the process of negotiating a bank loan to finance the expansion. The bank is requesting 2018 financial statements prepared on the accrual basis of accounting from Baron. During the course of a review engagement, you, the CPA hired as Baron's accountant, obtained the following additional information: 1. Amounts due from customers totaled $142,000 at 12.31.18. 2. An analysis of the above receivables revealed that $22,000 is estimated to be uncollectible in 2018. 3. Unpaid invoices for flower purchases totaled $20,500 and $17,000 at December 31, 2018 and December 31, 2017, respectively. 4. The inventory totaled $94,000 based on a physical count of the goods at December 31, 2018. The inventory was priced at cost, which approximates market value. 5. On May 1, 2018 Baron paid $8,700 to renew its annual comprehensive insurance coverage for one year. The entire amount was recorded to insurance expense. 6. Baron rents retail space that includes an adjacent parking lot. The parking lot is in rough shape and Baron agrees to pave and fence the lot at a cost of $50,000. The improvements were completed on April 2. 2018. and have an estimated useful life of 15 years. Depreciation on furniture and fixtures was $12,000 for 2018. 7. Accrued expenses at December 31, 2018 and 2017 were as follows: Utilities Payroll taxes 2018 $1,500 1,400 $2,900 2017 $900 1,600 $2,500 Totals Due to an oversight, the CPA hired last year did not accrue the expenses at the end of 2017 and failed to record them on the income tax return for 2017. 8. Baron is being sued for $100,000. The coverage under the comprehensive insurance policy is limited to $50,000. Baron's attorney believes that an unfavorable outcome is probable and that a reasonable settlement is $75,000. 9. On December 29, 2018, Baron advanced $5,000 to a salesperson for a company sales trip to New York City during the first week of January. It was recorded to the Travel and Entertainment expense account. 10. All employees are paid weekly on Saturday. The average payroll is $3,600 for a 6 day work week - Monday through Saturday. Employees were paid last Saturday, December 29, 2018 for the week ended December 22, 2018. Baron Flowers has a policy of giving all employees paid holidays for Christmas day and the following day. 11. Baron's has made estimated income tax payments of $15,000 per quarter for the first three quarters of 2018. Baron's estimated tax rate is 30%. 12. Baron was issued a $50,000 year note payable on April 1, 2017. The note bears interest at 6%. Principle and interest are due at maturity on 04.01.20. 13. Included in cash is $25,000 that has been set aside in an escrow account for future plant expansion 14. There was no change in stock in 2018. The following information pertains to Baron Flowers, a corporation at 400 The Fenway, Boston, which maintains its books on the cash basis during the year. Each year, Baron's CPA, converts the books to the accrual basis in order to prepare Baron's tax return. No adjustments are made to the accounts during the fiscal year. You have been hired this year as the company's CPA to do this work. The results of any adjustments made in the prior year on 12.31.17 are reflected in the following unadjusted 12.31.18 trial balance. All other accounts are on the cash basis and at current year balance. Baron Flowers, Inc. Unadjusted Trial Balance December 31, 2018 Dec 31, 2018 Credit Debit 245,650 116,200 17,800 62,000 118,200 Cash Accounts receivable - 12.31.17 Allowance for doubtful accounts - 12.31.17 Inventory - 12.31.17 Furniture and fixtures Accumulated depreciation - 12.31.17 Accounts payable - 12.31.17 Interest payable -12.31.17 Notes payable Common stock, $10 par value Additional paid-in capital Retained earnings Sales revenue Purchases Land improvement expense Salaries expense Payroll taxes Income tax expense Insurance expense Rent expense Utilities expense Travel and entertainment expense TOTAL 32,400 17,000 2.250 50,000 20,000 30,000 119,600 1,000,000 405,100 50,000 174,000 12,400 45,000 8.700 34,200 12,600 13,000 1,297,050 $ $ 1,297,050 Baron has developed plans to expand into the wholesale flower market and is in the process of negotiating a bank loan to finance the expansion. The bank is requesting 2018 financial statements prepared on the accrual basis of accounting from Baron. During the course of a review engagement, you, the CPA hired as Baron's accountant, obtained the following additional information: 1. Amounts due from customers totaled $142,000 at 12.31.18. 2. An analysis of the above receivables revealed that $22,000 is estimated to be uncollectible in 2018. 3. Unpaid invoices for flower purchases totaled $20,500 and $17,000 at December 31, 2018 and December 31, 2017, respectively. 4. The inventory totaled $94,000 based on a physical count of the goods at December 31, 2018. The inventory was priced at cost, which approximates market value. 5. On May 1, 2018 Baron paid $8,700 to renew its annual comprehensive insurance coverage for one year. The entire amount was recorded to insurance expense. 6. Baron rents retail space that includes an adjacent parking lot. The parking lot is in rough shape and Baron agrees to pave and fence the lot at a cost of $50,000. The improvements were completed on April 2. 2018. and have an estimated useful life of 15 years. Depreciation on furniture and fixtures was $12,000 for 2018. 7. Accrued expenses at December 31, 2018 and 2017 were as follows: Utilities Payroll taxes 2018 $1,500 1,400 $2,900 2017 $900 1,600 $2,500 Totals Due to an oversight, the CPA hired last year did not accrue the expenses at the end of 2017 and failed to record them on the income tax return for 2017. 8. Baron is being sued for $100,000. The coverage under the comprehensive insurance policy is limited to $50,000. Baron's attorney believes that an unfavorable outcome is probable and that a reasonable settlement is $75,000. 9. On December 29, 2018, Baron advanced $5,000 to a salesperson for a company sales trip to New York City during the first week of January. It was recorded to the Travel and Entertainment expense account. 10. All employees are paid weekly on Saturday. The average payroll is $3,600 for a 6 day work week - Monday through Saturday. Employees were paid last Saturday, December 29, 2018 for the week ended December 22, 2018. Baron Flowers has a policy of giving all employees paid holidays for Christmas day and the following day. 11. Baron's has made estimated income tax payments of $15,000 per quarter for the first three quarters of 2018. Baron's estimated tax rate is 30%. 12. Baron was issued a $50,000 year note payable on April 1, 2017. The note bears interest at 6%. Principle and interest are due at maturity on 04.01.20. 13. Included in cash is $25,000 that has been set aside in an escrow account for future plant expansion 14. There was no change in stock in 2018