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Record the following entries in general journal form for December, 2020: December 1: Recorded sales on account of $100,000, 2/10, net 30. Cost of inventory was 63,500. Company uses the net method for accounting for sales. December 2: Purchased Land for a future building site for $700,000, paying $200,000 down and signed a 5%, 90-day note for the balance. December 3: Bought back 1000 shares of stock for $17 per share December 4: Purchased $40,000 worth of equipment, 5 year life, $5,000 salvage value, for cash. Equipment will be depreciated using the straight-line method of depreciation. December 5: Paid invoice of $31,500 to supplier. The invoice related to inventory purchase which had been previously recorded. December 6: Issued 5000 shares of restricted stock to its CFO. The stock has a fair value of $120,000. The service period related to this restricted stock is 3 years. Vesting occurs if the CFO stays with the company for 3 years. The par value of the stock is $1. December 8: Purchased inventory of $44,000 on account with terms 2/10 net 60. Cascade uses the net method for its purchases. December 9: Received payment related to sale on December 1. December 15: Recorded cash sales of $124,000, cost of merchandise inventory was $74,900. December 16: Issued 11,000 shares of common stock at $22.00 per share. December 17: Paid for 12/8 inventory purchase. December 18: Paid off short-term note from 12/1 trial balance plus interest of $3,582. December 19: Purchased $210,000 inventory on account with terms 3/15, net 30. Cascade uses the net method for its purchases. December 20: Recorded sales on account of $413,000, cost of merchandise inventory was $175,000 December 21: Paid $3,500 of utilities previously accrued. December 24: Sold 500 shares of Treasury Stock for $17.50 per share. December 26: Wrote off 4,500 in bad debt. Record the following adjusting entries in general journal form as of December 31, 2020: 1. Supplies on hand at the end of the year: $700 2. Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 8 year life, no salvage value and company uses double-declining balance method for its depreciation. 3. Included in the truck balance is a fully depreciated truck for $6,500 and a new truck valued at $50,000 which was purchased on 1/1/17. The new truck has a 9-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset. 4. Don't forget to depreciate the new equipment! 5. The patent was purchased on 1/1/2013 for $100,000 and its useful life is 20 years. 6. $40,600 was paid on October 1, 2020 for six months rent. 7. On February 1, 2020, paid $38,500 for a 12-month insurance policy. 8. Declared dividends of $30,000 on December 31 9. The fair market value of the securities (classified as trading) is $17,000. 10.3% of Accounts Receivable is estimated to be uncollectible. Company uses the allowance method for estimating its uncollectible accounts. 11. Accrued salaries expense of $6,000 and recorded Payroll tax expense on account of $2300. 12. Had issued $300,000 of 6%, 10-year bond, dated 1/1/18 for $323,383 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB. (Additional credit awarded if amortization table is included) 13. One month has passed since the issuance of restricted stock. 14. Interest on 30 days of note payable, dated 12/1/20 should be accrued. (Assume 360 days in a year for calculation) 15. Accrued interest of 7% on long-term note payable of $175,000. 16. Income tax rate is 21% Additional Information: During 2020, the following additional transactions occurred: (Hint: these are already included in 12/1/20 TB, but may be needed for the Statement of Cash Flows) 1. Issued 5,000 shares of common stock, $1 par, for $40,000 on June 1, 2020. 2. Some equipment was sold (original cost $10,000, book value $6,000) for $3,000 (do not consider in your #2 AJE above) 3. All amortization and depreciation is recorded once a year on December 31. Adiuted Trial Balance lacus. Statement Bal. Skeet Stst. Ous. Equity 770,0931 770,093 1,197,001 1,197,001 I Account Title Cork Account Receivable Allowance for Doubtful Account Marketable Securitier Morchandire Inventory Prepaid Rent Prepaid Insurance 17,000 December Um diute Adjurting Trial Balance 12.1 Adiutat Trial Balance 12.31 Journal Entries DI CL | DICI DI CLI DI CL 770,0931 788,501 408,500 1,197,001 7,900 4,500 1 15.755 18,000 18,000 1,000 110,000 40.600 20,300 38,500 35,292 2.900 150,000 o 40,000 190,000 | $2,719 16,404 56,500 56,500 o 22,542 32,542 6667 35,000 700,000 735,000 65,000 $5,000 5.000 368,300 L 172,200 540,500 78,000 5,000 17,000 43,420 20,300 3,208 3,208 700 700 Equipment 190.000 190,000 $6,500 L 56,500 34,208 735.000 735.000 540.500 T L 44.000 17,000 540,500 $4,000 17,000 30,7171 23,333 30,000 39,955 19,585 71,640 175,000 30,000 54,540 500,000 175,000 428,360 sooood 175,000 300,000 18,572 54,5401 500,000 175,000 300,000 17,0721 3oo.co 1.500 17,072 Accumulated Depreciation-Equipment Truck Accumulated Depreciation - Truck Land I Patent Account Payable Salarior Payable Utilitias Payable Payroll TaxPayable Intorart Payable Dividends Payable Income Tax Payable Short Term Motor Payable Long Term Notar Payable Bandr Payable Premium on Bonde Payable Unearned Componation Common Stock APIC Common Stask Treasury Stock APIC Treasury Stask Retained Earninr 1 Sales Cart of Goods Sold Componation Expono Salarior Expono Rent Expono Bad Dobt Expono Payroll Tax Expono Advertising Experte Insurance Expono Supplier Expono Depreciation Expono 120,000 120,000 40,000 $0,000 80,000 $1,000 45,000 158,000 16,000 346,000 $1,000 504,000 41,000 504,000 504,000 8.500 42.000 242.000 242,000 653,000 242.000 1,288,000 $35,000 T 1788 175,000 313,400 488,400 485,400 42,000 42,000 48,000 15,755 15,755 2,300 T L 15,000 15.000 7.000 15.000 7.000 40,000 48,000 20,300 15,755 25,300 15,000 42,292 2,900 23,070 5,000 20,500 3,300 33,405 2900 23,070 5.000 2,900 23,070 5,000 Amortization Expono Utilities Expono 17,000 3,500 20,500 Mirc. Expono 3,300 3,300 11,572 21,893 Interer Expono Income Tax Expono 39,955 Realized Gain Lars Unrealized Gain Lors 2,303,675 2,303,675 1,664,290 1664,390 3,846,985 3,896,9851 214,905 244,905 -30,000 4,005,898 1 1,294,000 4,025,898 30,000 1,000 $24,177 469,823 1,294,000 Not Income (Las) 3,181,7222,741,8981 439,823 close into RE 3,181,722 3,181,722 Total 1,294,000 0.0 469,823.13 D. Prepare a multiple step income statement including calculation of weighted average shares and earnings per share. **Must link to worksheet. E. Prepare a retained earnings statement. **Must link to worksheet. F. Prepare a balance sheet (both years presented). **Must link to worksheet. G. Prepare a cash flows statement. **Must link to comparative balance sheets and income statements. H. Compute the following (**Must link to income statement and/or balance sheet): Current ratio Acid test ratio Debt to Equity Inventory Turnover Accounts Receivable Turnover At least 5 other ratios of your choosing Record the following entries in general journal form for December, 2020: December 1: Recorded sales on account of $100,000, 2/10, net 30. Cost of inventory was 63,500. Company uses the net method for accounting for sales. December 2: Purchased Land for a future building site for $700,000, paying $200,000 down and signed a 5%, 90-day note for the balance. December 3: Bought back 1000 shares of stock for $17 per share December 4: Purchased $40,000 worth of equipment, 5 year life, $5,000 salvage value, for cash. Equipment will be depreciated using the straight-line method of depreciation. December 5: Paid invoice of $31,500 to supplier. The invoice related to inventory purchase which had been previously recorded. December 6: Issued 5000 shares of restricted stock to its CFO. The stock has a fair value of $120,000. The service period related to this restricted stock is 3 years. Vesting occurs if the CFO stays with the company for 3 years. The par value of the stock is $1. December 8: Purchased inventory of $44,000 on account with terms 2/10 net 60. Cascade uses the net method for its purchases. December 9: Received payment related to sale on December 1. December 15: Recorded cash sales of $124,000, cost of merchandise inventory was $74,900. December 16: Issued 11,000 shares of common stock at $22.00 per share. December 17: Paid for 12/8 inventory purchase. December 18: Paid off short-term note from 12/1 trial balance plus interest of $3,582. December 19: Purchased $210,000 inventory on account with terms 3/15, net 30. Cascade uses the net method for its purchases. December 20: Recorded sales on account of $413,000, cost of merchandise inventory was $175,000 December 21: Paid $3,500 of utilities previously accrued. December 24: Sold 500 shares of Treasury Stock for $17.50 per share. December 26: Wrote off 4,500 in bad debt. Record the following adjusting entries in general journal form as of December 31, 2020: 1. Supplies on hand at the end of the year: $700 2. Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 8 year life, no salvage value and company uses double-declining balance method for its depreciation. 3. Included in the truck balance is a fully depreciated truck for $6,500 and a new truck valued at $50,000 which was purchased on 1/1/17. The new truck has a 9-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset. 4. Don't forget to depreciate the new equipment! 5. The patent was purchased on 1/1/2013 for $100,000 and its useful life is 20 years. 6. $40,600 was paid on October 1, 2020 for six months rent. 7. On February 1, 2020, paid $38,500 for a 12-month insurance policy. 8. Declared dividends of $30,000 on December 31 9. The fair market value of the securities (classified as trading) is $17,000. 10.3% of Accounts Receivable is estimated to be uncollectible. Company uses the allowance method for estimating its uncollectible accounts. 11. Accrued salaries expense of $6,000 and recorded Payroll tax expense on account of $2300. 12. Had issued $300,000 of 6%, 10-year bond, dated 1/1/18 for $323,383 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB. (Additional credit awarded if amortization table is included) 13. One month has passed since the issuance of restricted stock. 14. Interest on 30 days of note payable, dated 12/1/20 should be accrued. (Assume 360 days in a year for calculation) 15. Accrued interest of 7% on long-term note payable of $175,000. 16. Income tax rate is 21% Additional Information: During 2020, the following additional transactions occurred: (Hint: these are already included in 12/1/20 TB, but may be needed for the Statement of Cash Flows) 1. Issued 5,000 shares of common stock, $1 par, for $40,000 on June 1, 2020. 2. Some equipment was sold (original cost $10,000, book value $6,000) for $3,000 (do not consider in your #2 AJE above) 3. All amortization and depreciation is recorded once a year on December 31. Adiuted Trial Balance lacus. Statement Bal. Skeet Stst. Ous. Equity 770,0931 770,093 1,197,001 1,197,001 I Account Title Cork Account Receivable Allowance for Doubtful Account Marketable Securitier Morchandire Inventory Prepaid Rent Prepaid Insurance 17,000 December Um diute Adjurting Trial Balance 12.1 Adiutat Trial Balance 12.31 Journal Entries DI CL | DICI DI CLI DI CL 770,0931 788,501 408,500 1,197,001 7,900 4,500 1 15.755 18,000 18,000 1,000 110,000 40.600 20,300 38,500 35,292 2.900 150,000 o 40,000 190,000 | $2,719 16,404 56,500 56,500 o 22,542 32,542 6667 35,000 700,000 735,000 65,000 $5,000 5.000 368,300 L 172,200 540,500 78,000 5,000 17,000 43,420 20,300 3,208 3,208 700 700 Equipment 190.000 190,000 $6,500 L 56,500 34,208 735.000 735.000 540.500 T L 44.000 17,000 540,500 $4,000 17,000 30,7171 23,333 30,000 39,955 19,585 71,640 175,000 30,000 54,540 500,000 175,000 428,360 sooood 175,000 300,000 18,572 54,5401 500,000 175,000 300,000 17,0721 3oo.co 1.500 17,072 Accumulated Depreciation-Equipment Truck Accumulated Depreciation - Truck Land I Patent Account Payable Salarior Payable Utilitias Payable Payroll TaxPayable Intorart Payable Dividends Payable Income Tax Payable Short Term Motor Payable Long Term Notar Payable Bandr Payable Premium on Bonde Payable Unearned Componation Common Stock APIC Common Stask Treasury Stock APIC Treasury Stask Retained Earninr 1 Sales Cart of Goods Sold Componation Expono Salarior Expono Rent Expono Bad Dobt Expono Payroll Tax Expono Advertising Experte Insurance Expono Supplier Expono Depreciation Expono 120,000 120,000 40,000 $0,000 80,000 $1,000 45,000 158,000 16,000 346,000 $1,000 504,000 41,000 504,000 504,000 8.500 42.000 242.000 242,000 653,000 242.000 1,288,000 $35,000 T 1788 175,000 313,400 488,400 485,400 42,000 42,000 48,000 15,755 15,755 2,300 T L 15,000 15.000 7.000 15.000 7.000 40,000 48,000 20,300 15,755 25,300 15,000 42,292 2,900 23,070 5,000 20,500 3,300 33,405 2900 23,070 5.000 2,900 23,070 5,000 Amortization Expono Utilities Expono 17,000 3,500 20,500 Mirc. Expono 3,300 3,300 11,572 21,893 Interer Expono Income Tax Expono 39,955 Realized Gain Lars Unrealized Gain Lors 2,303,675 2,303,675 1,664,290 1664,390 3,846,985 3,896,9851 214,905 244,905 -30,000 4,005,898 1 1,294,000 4,025,898 30,000 1,000 $24,177 469,823 1,294,000 Not Income (Las) 3,181,7222,741,8981 439,823 close into RE 3,181,722 3,181,722 Total 1,294,000 0.0 469,823.13 D. Prepare a multiple step income statement including calculation of weighted average shares and earnings per share. **Must link to worksheet. E. Prepare a retained earnings statement. **Must link to worksheet. F. Prepare a balance sheet (both years presented). **Must link to worksheet. G. Prepare a cash flows statement. **Must link to comparative balance sheets and income statements. H. Compute the following (**Must link to income statement and/or balance sheet): Current ratio Acid test ratio Debt to Equity Inventory Turnover Accounts Receivable Turnover At least 5 other ratios of your choosing