Prepare an ending classified balance sheet
Done ES ACC 301 Project Unadjusted TB XLSX * 4 File Edit View Insert Format Data Tools Help Last edit was made ye. Share J 31 A1:E1 E F G G . H 1 1 2 3 4 5 6 7 8 9 10 11 Y, 100% View only - - fx Acct 301 Company A B D D Acct 301 Company Trial Balance December 31, 2020 Account Dr. Cr. Cash 2,500,000 Marketable securities 10,000 Accounts receivable 25,000 Allowance for doubtful accounts 5,000 Inventory 75,000 Prepaid rent expense 15,000 Land 75,000 Buildings Accumulated depreciation Equipment Accumulated depreciation Patent 80,000 Accounts payable 25,000 Unearned revenue 5,000 Salaries payable 6,200 Interest payable 3,700 Notes payable, due in 6 months 50,000 Notes payable 500,000 Common stock 800,000 Additional paid-in capital 350,000 Retained earnings 1,035,100 $ 2,780,000 S 2,780,000 12 13 14 + 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 45 = Trial Balance - Sheet1 + Explore Done ACC 301 Project ... .DOCX File Edit View Tools Help Last edit was made y... Request edit access E Share 31 2021 Transactions: 1. 1/1 Record the receipt of 10% of the accounts receivable at 12/31/20, which are within the discount period for 2/10, net 30 (assume gross method of sales had been used). 2. 1/1 Issue 1,000 shares of $10 par common stock for $15 a share. 3. 1/2 Provided services to customers totaling $100,000 and received cash. 4. 1/2 Pay off short term note payable and related interest of $3,700) on balance sheet 12/31/20 5. 1/3 Pay off all other current payables on balance sheet 12/31/20 + 6. 1/4 Purchase $50,000 inventory on credit (perpetual inventory method) 7. 2/1 Record the purchase of a $75,000 building with cash. (Depreciated using straight-line method.) Note that this entry is only to record the purchase of the asset; depreciation will be accounted for at a later date. 8. 2/1 Record the purchase of a $5,000 piece of equipment with cash. (Double declining balance method with $400 salvage value). Note that this entry is only to record the purchase of the asset; depreciation will be accounted for at a later date. 9. 3/1 Record $20,000 in wage expense paid in cash. 10.7/1 Property insurance of $15,000 is prepaid for 3 years. 11. 8/15 Utilities expense of $545 is paid in cash. 12. 10/5 The company receives an order of $10,000 with cash payment for a product they cannot deliver until next year. 13. 12/21 John Jones is now insolvent, and the accounts receivable he owes us of 3,500 is not collectible. 14. 12/31 Repairs and maintenance expense of $2,750 is paid in cash. 15. 12/31 The company declares (but does not pay) common dividends of $0.50 a share on 10,000 shares of outstanding stock. 2 Done ACC 301 Project ... .DOCX File Edit View Tools Help Last edit was made y... Request edit access E Share 31 Part 2 - Adjusting Journal Entries Use the following numbers for your adjusting with an AE in front of the number AE1, AE2: AEl. Update the allowance for doubtful accounts balance to estimate 10% of the accounts receivable will not be collected. AE2. Record amortization of intangibles. (useful life is 20 years, assume no prior amortization was taken) AE3. 1/3 of prepaid rent has been used up, also need to consider the prepaid insurance purchased on 7/1 (entry #10) AE4. 1 of the uncarned revenue from 12/31/20 has been earned (sales revenue). + AES. Record depreciation expense on buildings to date.(new building - straight line with an estimated useful life of 39 years) AE6. Record depreciation expense on the equipment to date.(new equipment - double declining balance method, useful life of 7 years) AE7. At year-end a physical inventory count was taken that showed 123,000 remaining in inventory. Record the cost of goods sold entry to update the inventory balance. AE8. Accrue $1,000 in wages expense attributed to December 2021. You will need to create an adjusted trial balance to submit with adjusting journal entries. 3
