Put a copy of all your journal entries for 2019 here on this tab.

You are not making ANY prior year entries. Any prior year information is just that--information.

JKL, Inc. presents the preliminary trial balance at 12"3 1;\" 19 and the related information set out below. Entries for the related information have not been recorded, but routine transactions for operation of the company during the year have been recorded. Accordingly, you have an unadjusted trial balance at 1233 U19 . The trial balance for 124'3 U18, also called the prior year trial balance, is a postclosing trial balance. The following information, for which no adjustment has been made, is available: The unadjusted 2019 trial balance is in an Excel Ie, together with the prior year trial balance. JKL, Inc's book tax rates are 21%. Unusual Event: Early in January, this year, an unusual event occurred when a big wind caused a boom to collapse, destroying $310,000 of outdoor rigging and electronic gear (asset E) that had just been installed. While this kind of accident has occurred before, it has not happened oen. The outdoor rigging and electronic gear were of a new business venture the company began early last year. The destroyed electronic equipment can be sold for scrap in the open market at 15% of cost. The outdoor rigging, bought early last year {depreciation straight line, no salvage, 5 year life) can be sold on the used equipment market for book value. Management is disheartened, and is abandoning this component of the business. Had the venture continued, it would have had spearate cash ows and operations. The company estimates that 50% of the overall SG&A for the January was directly related to the outdoor rigging and that the SGEzA costs for the year are incurred at a smooth rate all year long. Trading Securities The company invests in trading securities. Year end market prices were : "he company held 4,000 shares of X 2,000 shares of Y and 1,500 shares of Z at 12J'31f19. The company owns 1,000 shares of HAL Corp, which are also trading securities (used to be held for sale). At the end of 2019, HAL was priced at $29 per share. Security Price per shar Shares Security X 4 4,000 Security Y 7 2,000 Security 2 10 1,500 HAL 29 1,000 Extension Total 16,000 14,000 24,000 29,000 83,000 Possible Impairment JKL, Inc. owns IJFE Co., which they bought for $465,000 several years ago. It is fully consolidated and the correct consolidation entries have already been recorded in the JKL, Inc. trial balance. Due to changing technology, JKL, Inc. determined to examine the investment to see if it was impaired. The identiable assets originally appraised at $329,000. The new appraisal, at December 31, 2019, puts the total fair value for DEF at $338,000, with identiable assets at $310,000. Reclass needed JKL, Inc. has an amount of $1,084,000 in a suspense account on its trial balance. The details of this amount are as follows (if you end up with a $1,000 rounding error, put the difference to lawsuit defense: Legal 8: administrative cost of obtaining patent 194,000 Cost of development of product patented 581,000 Cost of defense of 2019 law suit challenging the 1] 309,000 PP&E On June 30, 2019, JKL, Inc. sold plant equipment (asset D) for $78,000. The equipment was purchased January 1, 2016 for 97,000. JKL, Inc. used the 200% declining balance method for this asset, over an estimated useful life of 7 years, with salvage value set at $12,000. Payment received included $10,000 cash and the buyer's note for the balance. The note requires equal annual principal payments over 5 years from date, together with interest at 8%. Additionally, depreciation expense for 2019 of $107,000, related to other depreciable assets of $1,066,000 is appropriate and has not been recorded. Other than any assets discussed above, the company has plant and equipment with cost, acquisition dates, etc., as shown Acquired Life Cost Salvage 17172016- Machine A 5 years 78,000 10% 17172017 Machine B 7 years 7,000 None 171F2010 Building 35 years 727,000 None All are depreciated by the straight line method. 2019 depreciation has not been recorded. On 01-01-19, the company changed its estimate for the life of Machine 13 to 10 years from 7 years. Bad Debts The company feels that bad debt expense needs to be recorded. They Will use the balance sheet-"aglg of A-'R method. The calculated ending balance for the allowance acc ount is $2,500. JKL Inc. Trial balances Final Adj. Unadjusted Adjusted 1233132018 1233132019 Ref DR Ref CR 1233132019 Cash 580,000 724,000 Investment in trading securities 64,000 64,000 Accounts receivable 138,000 30,000 Allowance for doubtful accounts (2,000) (2,000) Interest receivable Inventory 60,000 44,000 Current portion of notes receivable Prepaid expenses 4,000 4,000 Allowance for change in fair value of sec 'ties Term portion of note receivable Investment in DFE Corp. Machine A 72,000 72,000 Machine B 68,000 68,000 Building 676,000 676,000 Other depreciable assets 992,000 992,000 Machine D 92,000 92,000 Outdoor rigging 288,000 288,000 Electronic Equipment E (related to outdoor rigging venture) 92,000 92,000 Accumulated depreciation (1,300,000) (1,300,000) Patent Goodwill DFE Corp. 128,000 128,000 Accounts payable (1,020,000) (180,000) Taxes payable (36,000) (36,000) Accrued expenses (4,000) (32,000) Preferred dividends payable Pension liability Bonds payable, 6%, due 2034 (360,000) (360,000) suspense 1,084,000 Preferred noncumulative, 6%, $500 par, 3616 shares outstandin (1 ,808,000) (1,808,000) Capitalization: a. JKL, Inc. began 2019 with 33,300 shares of $10 par common stock that were initially issued for $12.50 per share. These shares have been recorded. b. There is one issue of noncumulative 0% $500 par preferred stock. There are 3,616 shares issued and outstanding and the dividend was declared during 2019, payable January 15 2020, to holders of record December 31, 2019. These shares {but not the dividend associated with the shares} have already been recorded. c. On May 1, 2019, the company sold an additional 3'50 bonds with warrants attached. The bonds, which mature in 2034, had a face value of $1,000 each, with 6% annual rate interest coupon interest due June 1 and December 1. Each bond carries 5 warrants to buy one share of the common stoclr: of the company at $35.00 per share one warrant +$35 buys one share.) The bonds were sold to a private investor at 103 {priced to yield 3%), phJs accrued interest. By comparison to other similar securities, the company has determined that the day after the sale the fair value of the bonds without the warrants was 93, and that the warrants would he expected to trade at $6.00. On December 31, 2019, T50 warrants {with the appropriate amount of cash) were tendered to the company in exchange for common stock. The average price of the common stock during 2019 was $20 per share. d. On September 1, 2019, the company purchased 5,000 shares of its common stock for $23.50 per share. Performance :3: incentive compensation. a. JKL, Inc. has adopted performance based compensation for the President and for the Executive Vice President for OperationsThe president receives 2% of the aftertax, afterbonus prot, and the EVPG receives 1.5%. The bonuses for 2013 were appropriately accrued at year end 2013, and were paid January 15, 2019 {accruals were reversed.) b. The company adopted a stock based incentive compensation plan, effective January 01, 2019. Under the plan, the PresidenCED was granted 30,000 share options on JKL, Inc.'s common stoclt. The EU? Operations and the CFO each received 20,000 share options. The options strike price is $30 per share. The company uses the US Treasury yield on the 10year Treasury Bill as an approximation of the risk free rate. The intrinsic value of the stock options are $2.92. These options vest ratably per year over a two year period. Leases a. The company began leasing its main offices for $3,500 per month on Jan 1, 2019. On its face, the lease expires December 31, 2022, but there is an option to extend for an additional 5 years at $4,500 per month. The space was built out by the lessor, to suit the lessee, prior to occupancy, and there have been no significant improvements to the space since. The company also rents its electronics parts storage warehouse for $1,000 per month. That lease was signed 4/1/2019 and expires which expires 12/31/2020, has an automatic rent escalation of 10% per year for every year in which the Consumer Price Index mcreases. No rent payments for 2019 have been recorded. Note: this is space rented for the company to occupy, not space they rent out to others. b. On July, 01, 2019, leased a new stamping press. The fair value of the equipment is $355,553. The lease calls for 120 monthly payments of $3,000. JKL, Inc.'s marginal borrowing rate is higher than the 6.3% rate implicit in the lease. The estimated useful life of the equipment is eight years. The lease does not transfer title to lessee and does not contain any bargain purchase language. Segment Reporting a. 25% of your total business (assets, revenue, net income, everything) is included in your Texas segment and the remainder is in your Not Texas segment. Make sure to use this information to prepare your segment disclosures. Required: You are the Controller and Chief Financial Officer for JKL. Inc. Prepare a complete (on paper) set of financial statements, including all appropriate disclosures, for JKL, Inc. for 2019. Attach all supporting calculations, journal entries, worksheet, etc., in an electronic file of this information