Prepare Journal Entries, Income Statement, Statements of SE, and a Balance Sheet based on the following information Becky Olson established her corporation, Olson Sports, Inc , several years ago in Boulder, Colorado, to sell hiking and ski equipment in her store and online The annual reporting period for the company ends December 31 Becky prepared the adjusted trial balance below at the end of 2020 However, her CPA audited the trial balance information she presented and found several items that need to be updated before financial statements can be prepared These items are listed below Beckys trial balance All amounts in the trial balance and in the listed items to be updated are in thousands of dollars Account Titles ($ in thousands) Debit Credit Cash 570 Accounts Receivable 373 Allowance for doubtful accounts 18 Inventories 539 Prepaid expenses 59 Land 22 Building 189 Equipment (furniture, fixtures, computers) 360 Accumulated Depreciation 222 Software 90 Patents 1 Goodwill 161 Accounts Payable 252 Accrued liabilities 182 Income taxes payable 16 Long term debt 49 Common Stock 3 Additional paid in capital 243 Retained earnings 1107 Sales revenue 2487 Credit Card Discounts 53 Cost of sales 1306 Advertising expense 145 Utilities expense 85 Wages expense 625 Interest expense 1 Totals 4579 4579 On the last day of the year, failed to record the $100 sale of hiking merchandise to a customer who paid with his Visa credit card Visa charges Olson Sports a 3 percent fee On December 31, failed to write off a $3 bad debt Failed to record bad debt expense for the year After the write off in (b), based on an aging of the accounts receivable, Olson Sports calculated that $21 will likely be uncollectible The auditor noted that the inventory is listed on the trial balance at current cost using the first in, first out method However, it should be measured using the last in, first out method Beginning inventory was 15 units at $10 per unit, the April 10 purchase was 40 units at $11 per unit, the July 2 purchase was 52 units at $13 per unit, and the October 4 purchase was 28 units at $16 per unit The count of inventory on hand at the end of the year was 35 units Failed to record $10 in new store fixtures (equipment) that arrived at Olson Sportss shipping dock during the last week of the year, with payment due to the manufacturer within 30 days Olson Sports paid $1 cash for delivery and $3 to install the new fixtures On December 31, failed to record the sale of old computers (equipment) with a cost of $20 and a net book value of $8 for $3 cash When they were sold, no depreciation had been recorded for the year Olson Sports depreciates computer equipment using the straight line method with a residual value of $4 over a four year useful life Hint Prepare two entries Failed to amortize the accounting software that Olson Sports purchased at the beginning of the year It is estimated to have a three year useful life with no residual value The company does not use a contra account Failed to record the annual depreciation for the building and furniture (equipment) The building is depreciated using the straight line method with a residual value of $9 over a 20 year useful life Furniture costing $120 is depreciated using the double declining balance method with a residual value of $20 over a 10 year useful life The accumulated depreciation of the furniture at the beginning of the year was $60 Failed to record income tax expense for the year Including the effects of the above entries, record Olson Sportss income tax expense at an effective rate of 24 percent Prepare the Journal Entries based on the following 10 Questions 1 Record the $100 sale of hiking merchandise to a customer along with a 3 fee charged by Visa for credit card payment 2 Record the write off a $3 bad debt 3 Record bad debt expense for the year based on an aging of the accounts receivable 4 Record the cost of sales resulting from a change in the method of valuing current cost of inventory from FIFO to LIFO 5 Record the purchase of $10 in new store fixtures (equipment), $1 paid for its delivery and $3 for its installation 6 Record the depreciation on sale of old computers (equipment) with a cost of $20 and a net book value of $8 for $3 cash 7 Record the loss on sale of old computers (equipment) sold for $3 cash 8 Record the amortization of accounting software 9 Record the annual depreciation for the building and furniture 10 Record the income Tax expense for the year

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* Prepare Journal Entries, Income Statement, Statements of SE, and a Balance Sheet based on the following information. Becky Olson established her corporation, Olson Sports,

*Prepare Journal Entries, Income Statement, Statements of SE, and a Balance Sheet based on the following information.

Becky Olson established her corporation, Olson Sports, Inc., several years ago in Boulder, Colorado, to sell hiking and ski equipment in her store and online. The annual reporting period for the company ends December 31. Becky prepared the adjusted trial balance below at the end of 2020. However, her CPA audited the trial balance information she presented and found several items that need to be updated before financial statements can be prepared. These items are listed below Beckys trial balance. All amounts in the trial balance and in the listed items to be updated are in thousands of dollars.

Account Titles ($ in thousands)	Debit	Credit
Cash	570
Accounts Receivable	373
Allowance for doubtful accounts		18
Inventories	539
Prepaid expenses	59
Land	22
Building	189
Equipment (furniture, fixtures, & computers)	360
Accumulated Depreciation		222
Software	90
Patents	1
Goodwill	161
Accounts Payable		252
Accrued liabilities		182
Income taxes payable		16
Long-term debt		49
Common Stock		3
Additional paid-in capital		243
Retained earnings		1107
Sales revenue		2487
Credit Card Discounts	53
Cost of sales	1306
Advertising expense	145
Utilities expense	85
Wages expense	625
Interest expense	1
Totals	4579	4579

On the last day of the year, failed to record the $100 sale of hiking merchandise to a customer who paid with his Visa credit card. Visa charges Olson Sports a 3 percent fee.
On December 31, failed to write off a $3 bad debt.
Failed to record bad debt expense for the year. After the write-off in (b), based on an aging of the accounts receivable, Olson Sports calculated that $21 will likely be uncollectible.
The auditor noted that the inventory is listed on the trial balance at current cost using the first-in, first-out method. However, it should be measured using the last-in, first-out method. Beginning inventory was 15 units at $10 per unit, the April 10 purchase was 40 units at $11 per unit, the July 2 purchase was 52 units at $13 per unit, and the October 4 purchase was 28 units at $16 per unit. The count of inventory on hand at the end of the year was 35 units.
Failed to record $10 in new store fixtures (equipment) that arrived at Olson Sportss shipping dock during the last week of the year, with payment due to the manufacturer within 30 days. Olson Sports paid $1 cash for delivery and $3 to install the new fixtures.
On December 31, failed to record the sale of old computers (equipment) with a cost of $20 and a net book value of $8 for $3 cash. When they were sold, no depreciation had been recorded for the year. Olson Sports depreciates computer equipment using the straight-line method with a residual value of $4 over a four-year useful life. [Hint: Prepare two entries.]
Failed to amortize the accounting software that Olson Sports purchased at the beginning of the year. It is estimated to have a three-year useful life with no residual value. The company does not use a contra-account.
Failed to record the annual depreciation for the building and furniture (equipment):

The building is depreciated using the straight-line method with a residual value of $9 over a 20-year useful life.
Furniture costing $120 is depreciated using the double-declining-balance method with a residual value of $20 over a 10-year useful life. The accumulated depreciation of the furniture at the beginning of the year was $60.

Failed to record income tax expense for the year. Including the effects of the above entries, record Olson Sportss income tax expense at an effective rate of 24 percent.

Prepare the Journal Entries based on the following 10 Questions:

1. Record the $100 sale of hiking merchandise to a customer along with a 3% fee charged by Visa for credit card payment.

2. Record the write off a $3 bad debt

3. Record bad debt expense for the year based on an aging of the accounts receivable.

4. Record the cost of sales resulting from a change in the method of valuing current cost of inventory from FIFO to LIFO.

5. Record the purchase of $10 in new store fixtures (equipment), $1 paid for its delivery and $3 for its installation.

6. Record the depreciation on sale of old computers (equipment) with a cost of $20 and a net book value of $8 for $3 cash.

7. Record the loss on sale of old computers (equipment) sold for $3 cash.

8. Record the amortization of accounting software.

9. Record the annual depreciation for the building and furniture.

10. Record the income Tax expense for the year.