Required Tasks: Using the information in the Other Data (1) tab, prepare the adjusting journal entries for the period. Record the entries in the Adjusting Journal Entries (4) tab. (Round all numbers to the nearest dollar.) SHOW YOUR WORK FOR THE ADJUSTMENT IN THE CELL OR YOU WILL NOT RECEIVE CREDIT FOR THE ENTRY. Use formulas and link the values to the adjustment. 1. After the above adjusting entries are entered on the Adjusting Journal Entries (4) tab, the amounts should be linked to the Adjustments column of the Worksheet (3). Your adjustment amounts should be a formula so if you change the debit/credit amount on the Adjusting Journal Entries (4), the column amount will automatically change. 2. Complete the Adjusting Trial Balance columns of the by the Worksheet (3) using formulas. Think about the best way to do this. Your last three sets of columns should never contain constant numbers but will include formulas only. 3. Prepare a multiple-step income statement on the Income Statement (5) tab. Your Income Statement should be in good form (proper titles, etc., see text page 230) and well formatted. The accounts of the financial statements should follow the order of accounts on the trial balance. You should use formulas in all cells, not constant numbers. (That means, your income statement should be linked to the adjusted numbers on your worksheet.) 4. Prepare a Statement of Retained Earnings (6) on the proper worksheet. Your Statement should be formatted. You should use formulas in all cells, not constant numbers. 5. 6. On the designated worksheet tab, prepare in journal entry form the Closing Entries (7) at the end of 12/31/18. Link entries to the Worksheet (3) and/or financial statement tabs. Prepare a Classified Balance Sheet (8) on the proper worksheet as of 12/31/18. Your Statement should be formatted as shown on page 175. You should use formulas in all cells, not constant numbers. 7. Task Possible Points Total Points Adjusting Journal Entries 4 points each entry Must contain formulas, and be linked to worksheet accounts. 40 points Aging Analysis Must contain formulas, and be linked to worksheet account. 4 points Adjustments on worksheet 1 point each entry linked to AJE Adjusted Columns Income Statement Columns 1 point Linked to Adjusted totals 10 points Must be linked to AJE 1 point Contains formulas 5 points 1 point Net Income, DR, CR total:s 1 point Linked to Adjusted totals 1 point Net Income, DR, CR total:s Balance Sheet Columns Multiple-step Income Statement (see p. 230 for example) 1 points 5 points 5 points Proper title, date Multiple-step Format Calculated properly 11 points Statement of Retained Earnings 1 point 1 point 2 points Proper title, date Proper format Calculated properly 4 points Classified Balance Sheet (see p. 175 for example) 1 points 2 points Proper title, date Proper classifications and accounts Balance Sheet balances 13 points 8 points Closing Entries 2 points 5 points 2 points 1 point Close credit accounts Close debit accounts Close income summary Close dividends 10 points Miscellaneous No abbreviations on financial statements 3 points Spelling errors Overall Appearance Commas, dollar signs, underscore totals Correct file naming convention Total Points Cambria (He 10 AA Wrap Text Paste Blu Merge & Center Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates B17 Use the following information to prepare adjusting entries for Hudson Industries: 2 a. On February 1, 2018, Hudson Industries signed a 3.1% bank loan for $85,500, due in 3 years 3 b.Prepaid insurance represents a 12-month insurance policy purchased on November 1 4 c. On October 1, 2018, Hudson paid $5,400 for a 6-month lease for office space. On Decemeber 31, 2018, Hudson billed a major customer $11,300 for a a special order shipped as priority overnight express. The terms were 2/10, net 30, FOB shipping point, and the cost of the merchandise sold was $7,684 Supplies on hand total $2,314. 5 d. 6 e. Equipment is depreciated on a straight-line basis; residual value is estimated to be $12,000 7 f. with an estimated service life of 20 years. The assets were held the entire year On July 1, Hudson issued Broadway Supplies an 18-month note receivable at a 2.3% annual 8 g. interest rate The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's 9 h. desired balance for 2018. Employees are paid a total of S3,832 every Thursday for a 5-day workweek. Since December 31 is a Monday, employees will have worked 2 days for which they have not been paid for i. by year-end. 11 j. Utility costs incurred but unrecorded for the month of December were estimated to be S1,315 13 14 Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for U 38 Prepare the Aging Schedule to determine the adjustment required for the allowance method for bad debt: Estimated Amount Balance December 31,2018 Estimated % Uncollectible Uncollectible Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Total Accounts Receivable $ 92,182 27,766 9,658 2,414 132.020 1% 5% 28% 42% Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates End of Period Worksheet For the Year Ended December 31, 2018 Unadjusted Adjusted 5 Account Title Adjustments DR Income Statement DR Balance Sheet DR DR CR CR DR CR CR CR 7 Cash 8 Accounts Receivable Allowance for Doubtful Accounts 5,088 0 Interest Reccivable 11 Note Receivable 13 nsurance 5,400 13,680 15 Supplies 16 17 Accumulated Depreciation 18 Accounts Payable 9 Salaries & Wages Payable 20 Interest Payable 1 Utilitics Payabic 22 Note Payable (final payment due 2021 23 Common Stock 24 Retained Eamin 25 Dividends 02 29.400 27 Sales Returns and Allowances 28 Sales Discounts 29 Cost of Goods Sold 30 Salaries & Wages Expense 5.480 195.480 reciation Expense Equipment 32 Bad Debt Expense 14.460 36 Utilitics Ex 37 Interest Revenuc 38 Interest Expense 1545,420 40 Net Income 43 45 47 Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Upc B4 fx Account Titles Adjusting Journal Entries For the Year Ended December 31,2018 Account Titles DR CR 10 12 13 14 d 15 16 17 18 19 e 20 21 22 f 23 24 25 9 26 27 28 h 29 31 i. 32 34 35 36 37 38 Income Statement Paste Office Update To keep up-to-date with security updates, fixes, and impr B2 Closing Entries 2 3 4 5 6 7 8 9 10 12 13 Paste Office Update To keep up-to-date with security updates, fixes, and improvements, choose Chec F9 Balance Sheet 5 6 12 13 15 16 17 19 20 21 23 24 25