Prepare the Classified BALANCE SHEET as of the Month END a) Use the Example on the i-Learn Course Website and Text-Book Page 194 b) Make sure to Show Subtotals for Current Assets and Current Liabilities BUSINESS TRANSACTIONS for the MONTH of APRIL 2020. 1) APR-1 the JW-Corp Received $200,000 in Exchange for 40,000 shares of Common Stock. 2) APR-1 the JW-Corp Borrowed $150,000 from US-Bank on a Note, Due in 5 Years with 8% Interest Paid Monthly. 3) APR-2 the JW-Corp Purchased a Building for $360,000 (25 year life), with $60,000 Cash Down Payment and signed a Note with SCHWAB BANK for the Remainder Due in 10 Years with Interest Due Monthly at a 6% Rate. 4) APR-2 the JW-Corp purchased a Delivery Truck (5 Year and 200,000 Mile Life) for $90,000 on a Note Due with FORD Corp with Interest Accrued Monthly at a 12% Rate. The Total Interest and Principal are DUE in 6 Months. 5) APR-5=JW-Corp received $105,000 from the TARGET Corp for BIKES we Will Deliver Later. 6) APR-6=JW-Corp Purchased 1500 BIKES at $88 Each on Account from SPECIALIZED Corp. a) FYI = JW-Corp uses a Perpetual FIFO Inventory System 7) APR-7 = JW-Corp Purchased 2000 BIKES at $95 Each on Account from SPECIALIZED Corp. 8) APR-10 = JW-Corp paid this Month's Rent Expense of $18,000 with a Check 9) APR-15 = JW-Corp received this Month's Phone Bill from ATT for $7,000 to pay Later. 10) APR-18 = JW-Corp received this Month's Utility Bill from PGE for $8,000 to be paid Later. 11) APR-19 = JW-Corp Sold 1000 BIKES for $210 each on account to the COSTCO Corp. 12) APR-20 = JW-Corp Sold and Delivered 1100 BIKES for $180 each to the TARGET Corp. from the Order and Check received in Trans# 5. We Billed the Customer the Remainder on Account. 13) APR-22 = JW-Corp Paid $161,000 with a Check to SPECIALIZED Corp on Account. 14) APR-24 = JW-Corp Sold 1200 BIKES to the COSTCO Corp for $175 each, on account. 15) APR-25 = JW-Corp received a check from COSTCO Corp for $233,000 on account. 16) APR-26 = JW-Corp paid $29,000 for Current Months Salaries with a Check. 17) APR-27= JW-Corp bought Back 5,000 Shares of Common Stock from Investors for $3.00 per Share with Electronic Transfers of Cash to the Stock Brokerage Firm. 18) APR-28 = JW-Corp Paid Dividends of $2.20 per Share to Current Shareholders via EFT. 19) APR-29 = JW-Corp Recorded the Following Items from the monthly Bank Reconciliation. a) Bank Fees Expense of $400, Investment Income of $1,400 20) APR-30 = JW-Corp Recorded the Estimated Allowance for Un-collectible accounts at 5.00% of The Month End TOTAL Accounts Receivable Balance. 21) APR-30 = JW-Corp recorded one month of Interest Expense Paid on the US BANK Loan. Tr#2 22) APR-30 = JW-Corp recorded one month of Interest Expense Paid to Schwab Bank. Tran#3 23) APR-30 = JW-Corp recorded one month of Interest Expense PAYABLE to Ford Later. Tran#4 24) APR-30 = JW-Corp recorded Depreciation Expense on the Building (Tran#3) for the Month using the Straight- Line Method. 25) APR-30 = JW-Corp recorded Depreciation Expense on the Truck (Tran# 4) Using the Units-of-Production-Activity Method. The Truck was Driven 12,000 Miles during the Month. 26) APR-30 = JW-Corp Recorded Income Tax Expense Payable for the Month, at 30% Tax Rate. No. Date 1 2 3 4 5 6 7 8 9 10 JW-Corp Journal entries 11 Account 1-Apr Cash Common Stock 1-Apr Cash Long-term Notes Payable 2-Apr Building Cash Long-term Notes Payable 2-Apr Delivery Truck Short-term Notes Payable 5-Apr Cash Unearned Revenue 6-Apr Inventory Accounts Payable 7-Apr Inventory Accounts Payable 10-Apr Rent Expense Cash 15-Apr Phone Expense Accounts Payable 18-Apr Utility Expense Accounts Payable 19-Apr Accounts Receivable Sales Cost of goods sold Inventory Debit $ 200,000 $ 150,000 $360,000 $ 90,000 $ 105,000 $ 132,000 $ 190,000 $ 18,000 $ 7,000 $ 8,000 $ 210,000 $ 88,000 Credit $ 200,000 US-Bank Note, Due in 5 Years $ 150,000 with 8% Interest Paid Monthly $ 60,000 $ 300,000 with Interest Due 6% Monthly $ 105,000 5 Year and 200,000 Mile Life $ 90,000 FORD Corp with Interest Accrued Monthly at a 12% due in 6 Months $ 132,000 $ 190,000 $ 18,000 Calculation 40,000 shares $ 7,000 $ 8,000 25 year life SCHWAB BANK Due in 10 Years $ 210,000 $ 88,000 =1500*88 =2000*95 From Inventory FIFO table 12 13 14 15 16 17 18 19 20 20-Apr Unearned Revenue Accounts Receivable Sales Cost of goods sold Inventory 22-Apr Accounts Payable Cash 24-Apr Accounts Receivable Sales Cost of goods sold Inventory 25-Apr Cash Accounts Receivable 26-Apr Salaries Expense Cash 27-Apr Treasury Stock Cash 28-Apr Dividends Cash 29-Apr Bank Fees Expense Cash 29-Apr Cash Investment Income $ 105,000 $ 93,000 $ 101,000 $ 161,000 $ 210,000 $ 114,000 $ 233,000 $ 29,000 $ 15,000 $ 77,000 $ 400 $ 1,400 $ 198,000 1100*180 $ 101,000 $ 161,000 $ 210,000 $ 114,000 $ 233,000 $ 29,000 $ 15,000 $ 77,000 $ 400 $ 1,400 From Inventory FIFO table =1200*175 From Inventory FIFO table =5000*3 =(40000-5000)*2.20 Adjusting entries 21 30-Apr Bad Debts Expense 22 23 24 25 26 27 Allowance for Un-collectible accounts 30-Apr Interest Expense Cash 30-Apr Interest Expense Cash 30-Apr Interest Expense Interest Payable 30-Apr Depreciation Expense Accumulated Depreciation - Building 30-Apr Depreciation Expense Accumulated Depreciation - Delivery Truck 30-Apr Income Tax Expense Income Tax Payable $ 14,000 $ 1,000 $ 1,500 $ 900 $ 1,200 $ 5,400 $ 69,000 $ 14,000 $ 1,000 $ 1,500 $ $ 900 1,200 $ 5,400 280000*5% 150000*8% *1/12 300000*6%*1/12 90000*12%*1/12 360000/25 years*1/12 90000/200,000 miles*12,000 miles 230000*30% $ 69,000 From Income Statement Prepare the Classified BALANCE SHEET as of the Month END a) Use the Example on the i-Learn Course Website and Text-Book Page 194 b) Make sure to Show Subtotals for Current Assets and Current Liabilities BUSINESS TRANSACTIONS for the MONTH of APRIL 2020. 1) APR-1 the JW-Corp Received $200,000 in Exchange for 40,000 shares of Common Stock. 2) APR-1 the JW-Corp Borrowed $150,000 from US-Bank on a Note, Due in 5 Years with 8% Interest Paid Monthly. 3) APR-2 the JW-Corp Purchased a Building for $360,000 (25 year life), with $60,000 Cash Down Payment and signed a Note with SCHWAB BANK for the Remainder Due in 10 Years with Interest Due Monthly at a 6% Rate. 4) APR-2 the JW-Corp purchased a Delivery Truck (5 Year and 200,000 Mile Life) for $90,000 on a Note Due with FORD Corp with Interest Accrued Monthly at a 12% Rate. The Total Interest and Principal are DUE in 6 Months. 5) APR-5=JW-Corp received $105,000 from the TARGET Corp for BIKES we Will Deliver Later. 6) APR-6=JW-Corp Purchased 1500 BIKES at $88 Each on Account from SPECIALIZED Corp. a) FYI = JW-Corp uses a Perpetual FIFO Inventory System 7) APR-7 = JW-Corp Purchased 2000 BIKES at $95 Each on Account from SPECIALIZED Corp. 8) APR-10 = JW-Corp paid this Month's Rent Expense of $18,000 with a Check 9) APR-15 = JW-Corp received this Month's Phone Bill from ATT for $7,000 to pay Later. 10) APR-18 = JW-Corp received this Month's Utility Bill from PGE for $8,000 to be paid Later. 11) APR-19 = JW-Corp Sold 1000 BIKES for $210 each on account to the COSTCO Corp. 12) APR-20 = JW-Corp Sold and Delivered 1100 BIKES for $180 each to the TARGET Corp. from the Order and Check received in Trans# 5. We Billed the Customer the Remainder on Account. 13) APR-22 = JW-Corp Paid $161,000 with a Check to SPECIALIZED Corp on Account. 14) APR-24 = JW-Corp Sold 1200 BIKES to the COSTCO Corp for $175 each, on account. 15) APR-25 = JW-Corp received a check from COSTCO Corp for $233,000 on account. 16) APR-26 = JW-Corp paid $29,000 for Current Months Salaries with a Check. 17) APR-27= JW-Corp bought Back 5,000 Shares of Common Stock from Investors for $3.00 per Share with Electronic Transfers of Cash to the Stock Brokerage Firm. 18) APR-28 = JW-Corp Paid Dividends of $2.20 per Share to Current Shareholders via EFT. 19) APR-29 = JW-Corp Recorded the Following Items from the monthly Bank Reconciliation. a) Bank Fees Expense of $400, Investment Income of $1,400 20) APR-30 = JW-Corp Recorded the Estimated Allowance for Un-collectible accounts at 5.00% of The Month End TOTAL Accounts Receivable Balance. 21) APR-30 = JW-Corp recorded one month of Interest Expense Paid on the US BANK Loan. Tr#2 22) APR-30 = JW-Corp recorded one month of Interest Expense Paid to Schwab Bank. Tran#3 23) APR-30 = JW-Corp recorded one month of Interest Expense PAYABLE to Ford Later. Tran#4 24) APR-30 = JW-Corp recorded Depreciation Expense on the Building (Tran#3) for the Month using the Straight- Line Method. 25) APR-30 = JW-Corp recorded Depreciation Expense on the Truck (Tran# 4) Using the Units-of-Production-Activity Method. The Truck was Driven 12,000 Miles during the Month. 26) APR-30 = JW-Corp Recorded Income Tax Expense Payable for the Month, at 30% Tax Rate. No. Date 1 2 3 4 5 6 7 8 9 10 JW-Corp Journal entries 11 Account 1-Apr Cash Common Stock 1-Apr Cash Long-term Notes Payable 2-Apr Building Cash Long-term Notes Payable 2-Apr Delivery Truck Short-term Notes Payable 5-Apr Cash Unearned Revenue 6-Apr Inventory Accounts Payable 7-Apr Inventory Accounts Payable 10-Apr Rent Expense Cash 15-Apr Phone Expense Accounts Payable 18-Apr Utility Expense Accounts Payable 19-Apr Accounts Receivable Sales Cost of goods sold Inventory Debit $ 200,000 $ 150,000 $360,000 $ 90,000 $ 105,000 $ 132,000 $ 190,000 $ 18,000 $ 7,000 $ 8,000 $ 210,000 $ 88,000 Credit $ 200,000 US-Bank Note, Due in 5 Years $ 150,000 with 8% Interest Paid Monthly $ 60,000 $ 300,000 with Interest Due 6% Monthly $ 105,000 5 Year and 200,000 Mile Life $ 90,000 FORD Corp with Interest Accrued Monthly at a 12% due in 6 Months $ 132,000 $ 190,000 $ 18,000 Calculation 40,000 shares $ 7,000 $ 8,000 25 year life SCHWAB BANK Due in 10 Years $ 210,000 $ 88,000 =1500*88 =2000*95 From Inventory FIFO table 12 13 14 15 16 17 18 19 20 20-Apr Unearned Revenue Accounts Receivable Sales Cost of goods sold Inventory 22-Apr Accounts Payable Cash 24-Apr Accounts Receivable Sales Cost of goods sold Inventory 25-Apr Cash Accounts Receivable 26-Apr Salaries Expense Cash 27-Apr Treasury Stock Cash 28-Apr Dividends Cash 29-Apr Bank Fees Expense Cash 29-Apr Cash Investment Income $ 105,000 $ 93,000 $ 101,000 $ 161,000 $ 210,000 $ 114,000 $ 233,000 $ 29,000 $ 15,000 $ 77,000 $ 400 $ 1,400 $ 198,000 1100*180 $ 101,000 $ 161,000 $ 210,000 $ 114,000 $ 233,000 $ 29,000 $ 15,000 $ 77,000 $ 400 $ 1,400 From Inventory FIFO table =1200*175 From Inventory FIFO table =5000*3 =(40000-5000)*2.20 Adjusting entries 21 30-Apr Bad Debts Expense 22 23 24 25 26 27 Allowance for Un-collectible accounts 30-Apr Interest Expense Cash 30-Apr Interest Expense Cash 30-Apr Interest Expense Interest Payable 30-Apr Depreciation Expense Accumulated Depreciation - Building 30-Apr Depreciation Expense Accumulated Depreciation - Delivery Truck 30-Apr Income Tax Expense Income Tax Payable $ 14,000 $ 1,000 $ 1,500 $ 900 $ 1,200 $ 5,400 $ 69,000 $ 14,000 $ 1,000 $ 1,500 $ $ 900 1,200 $ 5,400 280000*5% 150000*8% *1/12 300000*6%*1/12 90000*12%*1/12 360000/25 years*1/12 90000/200,000 miles*12,000 miles 230000*30% $ 69,000 From Income Statement