Question:

The following information is given at the beginning of December.
	Debit	Credit
Cash	$70,000
Accounts receivables	$26,000
Allowance for uncollectible accounts		$9,500
Inventory (1,400 units at $8.50)	$11,900
Accounts payable		$26,900
Common stock		$45,000
Retained earnings		$26,500
Total	$107,900	$107,900

Required: #1 Enter the beginning balance for each account in the T-accounts (General Ledger) tab in the excel template file "Accounting Cycle Project 2 Excel Template.xlsx".

Required: #2. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Project 2 Excel Template.xlsx".

Use the following accounts as appropriate: Cash, Accounts receivable, Allowance for uncollectible accounts, Inventory, Notes receivables, Interest receivables, Equipment, Accumulated depreciation, Accounts payable, Common stock, Retained earnings, Sales revenue, Interest revenue, Cost of goods sold, Depreciation expense, Bad debt expense, Income tax expense.

Dec. 1. Used cash to purchase equipment at a purchase price of $20,600, plus tax $300, plus shipping $700.

Dec. 1. Lend $11,000 to an employee by receiving a note for six months at annual interest rate of 12% due at the maturity date.

Dec. 6. Purchase 4,300 units of inventory on account at $12.5 per unit for a total cost of $53,750.

Dec 12. Assuming the perpetual method is used, the company sold 3,200 units at $25 each on account, terms2/10, n/30. Calculate the cost of goods sold using the FIFO method and record the appropriate journal entries for the sale and the cost of the sale. (Hint: Make sure to consider the beginning inventory balance from the beginning trial balance)

Dec 20. Paid $23,000 to suppliers for purchases made on account in the prior month.

Dec 23. Received cash of $18,500 for sales of inventory made on account on December 12.

Dec 28. Write-off $3,300 of accounts receivables using the allowance method.

Dec 30. Paid $5,400 for income tax for the month of December.

Required: #3. Post all of the December transactions from the "General Journal" tab to the T-accounts under the "T-Accounts (General Ledger)" tab in the excel template file "Accounting Cycle project 2 Excel Template.xlsx". Make sure to include beginning balances for accounts where necessary.

Required: #4. Compute the balances for each T-account after all of the entries have been posted. These are the unadjusted balance as of December 31.

Required: #5. Prepare the unadjusted trial balance under the "Unadjusted Trial Balance" tab in the excel template file "Accounting Cycle project 2 Excel Template.xlsx" . Provide the total of the debit column from the Unadjusted trial balance

Required: #6. Record the following four transactions as adjusting entries under the "General Journal" tab.

Dec 31. The company estimates 20% of the ending balance of accounts receivables is not going to be collected. (Hint: Remember to consider the balance in the allowance for uncollectibe account, if any.)

Dec 31. Record December's adjustment to accrue interest for the notes receivables.

Dec 31. The company uses the lower of cost ornet realizable valuemethod for inventory valuation. Thenet realizable valueof the inventory is $10.5 per unit. Make the adjusting entry if necessary.

Dec 31. Calculate depreciation using Straight line method. The equipment purchased has a useful life of 72 months and no residual value. Record the depreciation for the month of December.

Required: #7. Post all of the adjusting entries to the T-accounts under the "T-Accounts (General Ledger)" tab. Compute the balance for each T-account after all of the adjusting entries have been posted. These are the adjusted balance as of December 31.

Required: #8. Prepare the adjusted trial balance under the "Adjusted Trial Balance" tab as of December 31 in the excel template file "Accounting Cycle project 2 Excel Template.xlsx" .

Provide the following accounts balances from the Adjusted Trial Balance: (Please enter all amounts as a postive number. No brackets.)

Cash

Accounts receivable

Allowance for uncollectible accounts

Inventory

Notes receivable

Interest receivables

Equipment

Accumulated depreciation

Accounts payable

Common stock

Retained earnings

Sales revenue

Interest revenue

Cost of goods sold

Bad debt expense

Depreciation expense

Income tax expense

Required: #9. Prepare the Multi-step Income Statement, Statement of Stockholder's Equity, and Classified Balance Sheet under the "Financial Statements" tab for the month ended December 31, 20XX in the excel template file "Accounting Cycle project 2 Excel Template.xlsx". Provide the following amount from the Multi-step Income Statement:

Net sales

Gross profit

Operating income

Non-operating revenue

Income before income taxes

Net income

Provide the following amount from the Classified Balance sheet:

Current assets

Net accounts receivables (Net realizable value)

Long-term assets(Book value)

Total liabilities

Total stockholder's equity

Check point: Total assets$153,520

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• Accounting cycle project 2 excel template(1).xlsx

General Journal Description Date Debit 1-Dec Equipment Cash ### 1-Dec Note Receivable Cash ### 6-Dec inventory account payable ### 12-Dec Account receivable Sales revenue ### Credit ### ### ### ### cost of good sold Inventory ### 20-Dec Account Payable Cash ### 23-Dec cash account receivable ### 28-Dec Allowance for doubtful accounts account receivable ### 30-Dec income tax expense cash ### ### ### ### ### ### Big Bal $ 23-Dec $ end Bal $ Cash 70,000 $ 21,600 18,500 $ 11,000 $ 23,000 $ 5,400 27,500 Account receivables Big Bal $ 26,000 $ 18,500 12-Dec $ 80,000 $ 3,300 End Bal $ 1-Dec 1-Dec 20-Dec 30-Dec 23-Dec 28-Dec 84,200 Allowance for uncollectible accounts $ 9,500 Big Bal 28-Dec $ 3,300 $ big Bal $ 6-Dec $ End Bal $ 6,200 End Bal Inventory 11,900 53,750 $ 34,400 31,250 Notes receivables 1-Dec $ 11,000 12-Dec Accounts payable $ 26,900 20-Dec $ 23,000 $ 53,750 $ 57,650 Interest receivables 1-Dec $ Equipment 21,600 Accumulated depreciation yable Common stock $ 45,000 Big Bal Big Bal 6-Dec End Bal Retained earnings $ 26,500 Big Bal Sales revenue $ 80,000 Interest revenue Cost of goods sold 12-Dec $ 28,700 Bad debt expense 12-Dec Depreciation expense Income tax expense 30-Dec $ 5,400 Unadjusted Trial Balance Accounts Cash Accounts receivables Allowance for uncollectible accounts Inventory Notes receivables Interest receivables Equipment Accumulated depreciation Accounts payable Commonstock Retained earnings Sales revenue Interest revenue Cost of goods sold Bad debt expense Depreciation expense Income tax expense Totals Debit Credit $ 27,500 $ 84,200 $ 6,200 $ 31,250 $ 11,000 $ 21,600 $ $ $ $ $ 34,400 $ 5,400 $ 57,650 45,000 26,500 80,000 205,450 $ 215,350 Adjusted Trial Balance Debit Cash Accounts receivables Allowance for uncollectible accounts Inventory Notes receivables Interest receivables Equipment Accumulated depreciation Accounts payable Commonstock Retained earnings Sales revenue Interest revenue Cost of goods sold Bad debt expense Depreciation expense Income tax expense Totals Credit Multi-step Income Statement For the month Ended December 31, 20XX Statement of Stockholders' Equity For the month Ended December 31, 20XX Classified Balance She At December 31, 20XX Classified Balance Sheet At December 31, 20XX General Journal Description Date Debit 1-Dec Equipment Cash ### 1-Dec Note Receivable Cash ### 6-Dec inventory account payable ### 12-Dec Account receivable Sales revenue ### Credit ### ### ### ### cost of good sold Inventory ### 20-Dec Account Payable Cash ### 23-Dec cash account receivable ### 28-Dec Allowance for doubtful accounts account receivable ### 30-Dec income tax expense cash ### ### ### ### ### ### Big Bal $ 23-Dec $ end Bal $ Cash 70,000 $ 21,600 18,500 $ 11,000 $ 23,000 $ 5,400 27,500 Account receivables Big Bal $ 26,000 $ 18,500 12-Dec $ 80,000 $ 3,300 End Bal $ 1-Dec 1-Dec 20-Dec 30-Dec 23-Dec 28-Dec 84,200 Allowance for uncollectible accounts $ 9,500 Big Bal 28-Dec $ 3,300 $ big Bal $ 6-Dec $ End Bal $ 6,200 End Bal Inventory 11,900 53,750 $ 34,400 31,250 Notes receivables 1-Dec $ 11,000 12-Dec Accounts payable $ 26,900 20-Dec $ 23,000 $ 53,750 $ 57,650 Interest receivables 1-Dec $ Equipment 21,600 Accumulated depreciation yable Common stock $ 45,000 Big Bal Big Bal 6-Dec End Bal Retained earnings $ 26,500 Big Bal Sales revenue $ 80,000 Interest revenue Cost of goods sold 12-Dec $ 28,700 Bad debt expense 12-Dec Depreciation expense Income tax expense 30-Dec $ 5,400 Unadjusted Trial Balance Accounts Cash Accounts receivables Allowance for uncollectible accounts Inventory Notes receivables Interest receivables Equipment Accumulated depreciation Accounts payable Commonstock Retained earnings Sales revenue Interest revenue Cost of goods sold Bad debt expense Depreciation expense Income tax expense Totals Debit Credit $ 27,500 $ 84,200 $ 6,200 $ 31,250 $ 11,000 $ 21,600 $ $ $ $ $ 34,400 $ 5,400 $ 57,650 45,000 26,500 80,000 205,450 $ 215,350 Adjusted Trial Balance Debit Cash Accounts receivables Allowance for uncollectible accounts Inventory Notes receivables Interest receivables Equipment Accumulated depreciation Accounts payable Commonstock Retained earnings Sales revenue Interest revenue Cost of goods sold Bad debt expense Depreciation expense Income tax expense Totals Credit Multi-step Income Statement For the month Ended December 31, 20XX Statement of Stockholders' Equity For the month Ended December 31, 20XX Classified Balance She At December 31, 20XX Classified Balance Sheet At December 31, 20XX