Required #1 Using Be Prepared, Inc.'s adjusted trial balance and prior period's balance sheet, prepare the following Financial Reports: Multi-Step Income Statement for the month of January 2019 Statement of Retained Earnings for the month of January 2019 (Note: There are no prior period adjustments and all dividends declared are cash dividends in the amount of $31,060 Comparative Balance Sheet for the months of December 2018 and January 2019 1. 2. 3. Required #2 Use the Comparative Balance Sheet you prepared in Required #1 and the following additional information to prepare the Statement of Cash Flows for the month of January 2019. Use the indirect method to prepare the operating activities section Issued 10,000 new shares of common stock in exchange for a piece of land. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents Purchased land with a cost $250,000. A down payment was made in the amount of $50,000 cash and a 10% 5-year note payable was signed for the difference. Purchased additional store equipment for $50,000 paying cash. The $10,000 notes receivable was related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an addition to the operating activities section of the statement of cash flows. . Issued bonds with a face amount of $800,000 at 97. Hint: The amortization of the bond discount in the amount of $100 should be reported as an addition to the operating activities section Used the cash proceeds from the bond issue to pay off the mortgage payable of $200,000. The company repurchased 20,000 shares of its common stock on the open market for $9 per The company reissued 12,000 of the treasury shares at a price of $15 per share. Paid cash dividends of $31,060 to preferred and common stockholders share. Issued 1,500 shares of preferred stock at $105 per share. Be Prepared Adjusted Trial Balance January 31,2019 Account ID Account Description Debits Credits 687,490.00 1001 Cash 1021 Accounts Receiva ble 1022 Allowance for Doubtful Acc 1027 Interest Receivable 1031 Notes Receivable 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies 1125 Prepaid Insurance 1401 Land 1411 Building 412 Accum Dep: Building 1431 Office Equipment 1432 Accum Dep: Office Equipm 1451 Store Equipment 452 Accum Depr: Store Equipm 1501 Patents 2001 Accounts Payable 2005 Income Taxes Payable 2031 Interest Payable 2101 Notes Payable long term 2301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paid in Capital In Excess of par: Prefer 3111 Paid in Capital In Excess of par: Com 3121 Paid in Capital Treasury Stock 3300 Retained Earnings 3351 Treasury Stock 4001 Sales Revenue 4002 Sales Discount 4003 Sales Returns & Allowances 4101 Interest Revenue 5001 Cost of Goods Sold 5010 Insurance Expense General 5012 Repairs Expense: Office 5015 Depreciation Expense: Building - General 5020 Depreciation Exp: Office Eq 5025 Supplies Expense - Selling 5027 Utilities Expense: Office 5030 Office Salaries Expense 5035 Office Payroll Tax Expense 6005 Depreciation Exp: Store Eq 6010 Amortization Expense: Pat General 6015 Sales Salaries Expense 6020 Sales Payroll Tax Expense 6022 Utilities Expense: Store 025 Delivery Expense - General 6030 Repairs Expense: Store 6040 Bad Debts Expense- Selling 7001 Interest Expense 460.00 60.00 10,000.00 5,190.00 10,000.00 300.00 2,800.00 414,250.00 400,000.00 45,750.00 90,000.00 125,000.00 69,300.00 15,800.00 25,000.00 7,500.00 200,000.00 800,000.00 23,900.00 400,000.00 105,000.00 15,000.00 166,250.00 53,940.00 2,000 139,000.00 800.00 3,000 60.00 84,560.00 200.00 2,500.00 750.00 2,500.00 1,200.00 1,500.00 1,200.00 800.00 700.00 10,000.00 800.00 1,100.00 1,000.00 800.00 460.00 2,068,038.00 2,068,038.00 Be Prepared Inc Balance Sheet December 31, 2018 Liabilities Assets Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Land Building Accumulated Depreciation, Building Office Equipment Accumulated Depreciation, Office Equipmen Store Equipment Accumulated Depreciation, Store Equipment Patents Total Assets 27,500 Accounts Payable 40,000 Income Taxes Payable 50,000 Mortgage Payable 25,000 7,500 200,000 232,500 1,500 Total Liabilities 3,000 64,250 400,000 45,000) Preferred Stock 90,000 Common Stock (15,000) Paid in Capital in Excess of par: Preferred 75,000 Paid in Capital in Excess of par: Comman (15,000) Retained Earnings 70,000 Total Stockholder's Equity 746,25 Total Liabilities and Stockholder's Equity $ Stockholder's Equity 250,000 100,000 7,500 71,250 85,000 513,750 746,250