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Required Questions Only/Please Show a-e in proper journal form, using the spreadsheet below, and the additional information section only: a. Prepare in journal form, any

Required Questions Only/Please Show a-e in proper journal form, using the spreadsheet below, and the additional information section only:

a. Prepare in journal form, any required correcting entries

b. Prepare in journal form, all end-of-the period adjusting entries

c. Prepare a December adjusted trial balance

d. Prepare a classified balance sheet for the year ended December 31, 2014 (remember balance updates)

e. Prepare in journal form, the closing entries for the year ended December 31, 2014

Flip Company's December 31, 2014 trial balance is as follows:

Flip Corporation

Trial Balance

December 31, 2014

Account

Debit

Credit

Cash

$43,500

Accounts Receivable

54,500

Allowance for Doubtful Accounts

500

Notes Receivable

30,000

Merchandise Inventory

55,000

Land

20,500

Building

150,000

Accumulated Depreciation, Building

$15,000

Equipment

50,000

Accumulated Depreciation, Equipment

21,000

Goodwill

26,000

Accounts Payable

24,500

Long Term Notes Payable

75,000

Common Stock, $10 par, 2,000 shares authorized & outstanding

20,000

Retained Earnings

147,000

Sales Revenue

700,000

Salaries Expense

150,000

Utilities Expense

3,500

Cost of Goods Sold

350,000

Administrative Expenses

55,000

Sales Expenses

15,000

_______

Totals

$1,003,000

$1,003,000

Flip is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.

Additional Information to help complete the above Journal Entries required:

a. Notes Receivable is a 3-months, 6% note accepted on December 1, 2014.

b. Long Term Notes Payable is a 5-year, 5% note that was signed on July 1, 2014. Interest is payable annually.

c. Building is depreciated at 3% per year. There is no salvage value.

d. Equipment is depreciated at 15% year. There is no salvage value.

e. Flip discovered, on December 30th, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue.

f. The year-end physical count for Merchandise Inventory reflected a value of $52,500. Any difference in value is treated as shrinkage, and is included as part of Cost of Goods Sold.

g. Salaries for the last half of December, payable in January, amount to $6,500.

h. Flip determined that the balance in the Allowance for Doubtful Accounts should be $2,650 after an aging of A/R schedule was completed.

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