REQUIRED: Journal Entries, T-Accounts, Trial Balance > Adjustments> Adjusted Trial Balance, Income Statements, Retained Earnings Statements, and Balance Sheet

Step 1 - Journalize the transactions and adjusting entries Record the transactions and adjusting entries for TOP Inc. in the general journal.. Use only the accounts provided. Step 2 - Post the transactions and adjusting entries to the T-accounts Post your journal entries to the T-Accounts. The amounts already in the T-Accounts are the beginning balances and should be included in your balances. Use a red pencil to identify each transaction starting with "a". Do not add any new accounts, all the accounts you need have already been set up. Step 3 - Prepare a Trial Balance Prepare a trial balance. The total of the Trial Balance should be $4,489,500. If your balance does not agree, make any necessary corrections before you proceed. Step 4 - Prepare the Income Statement Prepare an Income Statement in good form. The Net Income should be $681,957. Step 5 - Prepare a Retained Earnings Statement and Balance Sheet Prepare the Retained Earnings Statement and the Balance Sheet. The Total Assets should be $3,158,382. Turn in the following items (stapled in the order listed below): Journal Entries T-Accounts Worksheet (Trial Balance, Adjustments, Adj. TB, etc.) Income Statement Retained Earnings Statement Balance Sheet Emilio Castillo, Stephen Kupka and David Garabaldi are the stockholders of TOP Incorporated. The charter of the corporation authorized 500,000 shares of $5 par common stock, and 100,000 shares of $30 par, 3%, preferred stock. As of January 1, 2018, there were 25,000 shares of common stock issued and outstanding and 4,000 shares of preferred stock issued and outstanding. Selected transactions completed by TOP Incorporated during the fiscal year-ending December 31, 2018, are as follows: Jan 1 Issued 13,000 shares of $5 par common stock at $19, receiving cash. Jan 1 Issued 6,700 shares of $30 par, 3%, preferred stock at $69 for cash. Feb 1 Purchased equipment for $220,000, paying $20,000 cash and financing the remainder with a 180-day, 5% note payable. Mar 15 Purchased land for $352,000 by issuing 18,000 shares of common stock. Mar 31 Purchased a two-year insurance policy for $39,000. May 1 Purchased 1,600 shares of the company's own common stock at $23 per share. May 31 Issued $1,000,000 of 8-year, 7% bonds with interest payable semiannually. The amount of cash received was $1,087,936. July 30 Paid the amount due on the note payable signed on February 1. Aug 1 Sold 500 shares of treasury common stock purchased on May 1 for $26 per share. Sept 15 Declared a 2% stock dividend on common stock to be distributed on September 30 to stockholders of record on September 20. The market price per share on September 15 is $26 per share. Sept 30 Distributed the stock dividend declared September 15. Oct 1 Borrowed $36,000 from Second Bank by issuing an 7% note. The note is to be repaid in quarterly payments of principal plus interest totaling $2,130 per quarter. Oct 16 Sold 370 shares of treasury common stock purchased on May 1 for $20 per share. Nov 30 Paid the semiannual interest and amortized the premium on the bonds issued on May 31. Dec 1 Declared a cash dividend at the stated amount to preferred stockholders and .50 per share to common stockholders payable on December 30 to stockholder's of record on December 16. (Hint: don't forget the shares distributed from the stock dividend) Dec 30 Paid the cash dividends declared on December 1. Dec 31 Paid the first quarterly installment of the note issued on October 1. Dec 31 Record revenue for the year of $1,975,000, received $500,000 in cash, the remainder is on account. Dec 31 Record expenses for the year, paid in cash (one compound entry): Stock Project Rent Utilities Salaries Advertising Medical insurance Commissions Legal and accounting Miscellaneous $170,000 13,200 760,000 140,000 32,000 63,000 18,000 8,400 Adjusting Entries (1) The employees' accrued vacation pay at the end of the year was $12,482. (2) Record depreciation on the equipment purchased on February 1, using the straight-line method. The equipment has an estimated 9-year useful life and an estimated residual value of $11,020. (3) Record insurance expired on the policy purchased March 31. (4) Record the adjusting entry for the interest accrued and the amortization of the premium on the bonds payable since the last interest payment. (round the amount to the nearest dollar)