Prepare Financial Statements (Income statement, Retained Earnings, Balance Sheet, but NOT Cash Flows) for Dec 31, 2018 from transactions listed at bottom of the page, complete with any & all Notes to the Financial Statements. Turn in Journal Entries, Trial Balance, Adjusted Journal Entries, Adjusted Trial Balance, and Post-Closing Trial Balance separately.

HINT: THE TOTAL DEBIT/CREDIT FOR THE ADJUSTED TRIAL BALANCE SHOULD BE $7,057,500

Madoffs Marijuana Dispensary had the following beginning balances December 1, 2018.

Cash $ 3,000,000

Rent Expense 22,000

Inventory 150,000

Prepaid Rent 2,000

Equipment 3,000,000

Accumulated Depreciation 50,000

Accounts Payable 25,000

Salaries & Wages Payable 10,000

Advertising Expense 2,500

Notes Payable 300,000

Supplies 500

Retained Earnings 2,402,500

Preferred Stock, 3% cumulative, $1 par value $25,000

Common Stock, $0.01 par value; $100,000

Authorized 32 million shares; Issued 18 million shares

Additional Paid In Capital 500,000

Treasury Stock (8 million shares at cost) 40,000

Sales Revenue 3,000,000

Cost of Goods Sold 500,000

Loan from Owner 500,000

Insurance Expense 11,000

Salaries & Wages Expense 130,000

Utilities Expense 5,000

Supplies Expense 3,000

Prepaid Insurance 13,000

Payroll Tax Expense 10,000

Repairs & Maintenance Expense 3,500

Legal Expense 15,000

Accounting Expense 5,000

All Adjustments are made at the end of the year. The following information is relevant:

Truck is expected to last 10 years, and have a residual value of $5,000. Depreciated using the straight-line method.

Owner is to be paid back over 5 years beginning next year.

Had supplies on hand of $200

The following transactions occurred during the month:

Used $1,000 of prepaid insurance for the month of December

Used $2,000 of prepaid rent for the month of December

Dec 2 - Sold $100,000 worth of product for cash (cost us 50,000)

Dec 2- Paid employees all money owed

Dec 31 - Paid employees bonus of $15,000

Owe employees for 3 days of work (Dec 29-31) at $1,000/day

Dec 5 - Fixed windows, cost $5,000. Paid in cash

Dec 31 - Paid Accountant $3,000 for work related to December. Paid in cash.

Dec 1- Bought a new truck for $20,000 paid cash. At the end of the first year the truck had been driven 7,000 miles.

Dec 8 - Sold 1,000 shares of common stock for $10 per share, cash

Dec 10 - Repurchased 3,500 shares of stock at $15 per share

Dec 15 - Reissued 3,000 shares of Treasury stock at $30 per share (bought Dec 10^th)

Jan 2 - Sold $500,000 worth of product (cost us $250,000)

PLEASE MAKE SURE THE TOTAL FOR DEBIT/CREDIT ON THE ADJUSTED TRIAL BALANCE IS $7,057,500