Required: Using Excel, prepare:

1. General journal entries to record the summary transactions and adjusting journal

entries.

2. The year-end worksheet, using cell reference links to post the general journal

entries and formulas to extend the worksheet. Just put the summarized transactions and the adjusting entries all into the adjustment columns on the worksheet.

3. Financial statements, including a Multi-step Income Statement, a Retained

Earnings Statement, and a classified Balance Sheet. Again, use cell reference

links and formulas where possible.

4. Submit your Excel spreadsheet(s), for the journal entries, worksheet, and financial statements via Blackboard.

Summarized transactions for 2017:

a. 1. Sold merchandise on credit, $6BB,AAA. MSU Candy uses a

periodic inventory system.

2. Collected 90% of these current credit sales.

3. Collected 95% of beginning accounts receivable.

4. Wrote off the remaining 5% of beginning accounts receivable.

b. 1. Purchased merchandise on credit, $3CC,CC0. MSU Candy uses a

periodic inventory system.

2. Paid 85% of these purchases.

3. Paid all of beginning accounts payable.

Continued on next page.

c. On April 1, 2017, paid $2,BBO for a renewal of the insurance policy which will

provide coverage for the period 4/1/17 to 4/1/18.

d. Supplies purchased for cash during the year $2C,CCC.

e. On July 1, 2017, received cash consisting of a $3,000 payment of principal on the

note receivable plus interest for six months @8.BB%.

f. On January 1, 2017, equipment costing $10,000 (with related accumulated

depreciation of $3,600) was exchanged for different equipment having a FMV of

$7,AAA. No cash was exchanged and the exchange had commercial substance.

g. Paid $6A,AA0 for salaries and $10,BB0 for payroll taxes. Both of these amounts

include the beginning liabilities for each, respectively.

h. 7B.B% of the beginning Unearned Revenue was earned by year-end.

i. Dividends declared in 2016 were paid in January, 2017. Dividends of $6,AAA

were declared in December, 2017 and will be paid in January, 2018.

Year-end adjusting entries:

aa. MSU Candy estimates that 5% of ending accounts receivable will become

uncollectible.

bb. MSU Candys inventory count at 12/31/17 shows $5A,AA0 of merchandise

inventory remaining. Make an adjusting journal entry (AJE) to close purchases,

adjust Merchandise Inventory to ending balance, and create a Cost of Goods Sold account.

cc. Adjust Prepaid Insurance to reflect insurance expired during the year.

dd. Supplies on hand at year-end totaled $5,AAA.

ee. Interest on the remaining note receivable was supposed to be received at

12/31/17; however, it did not arrive. Make an AJE to record interest receivable

and interest income for second half of the year.

ff. Make adjusting entries to record depreciation expense on the building and

equipment. MSU Candy uses SL, 20% SV, 40-year life for the building and DDB,

No SV, 10-year life on the equipment.

gg. Unpaid salaries and payroll taxes at year-end were $1C,CCC and $3,AAA

respectively.

hh. A bank reconciliation prepared at 12/31/17 showed $10,000 deposits in transit,

$7,000 outstanding checks, $6BB bank service charges, and $1,AAA interest

earned.

Optional entries:

ii. 30% tax rate (This exp/payable could just be calculated on IS and BS, but you can journalize it after all other work is done. )

I am looking for help with the adjusting entries, and the account titles and amounts that are required.

Here are the beginning balances:

Accounts		2016 PC Trial Balance
		Debit	Credit
Cash		10,000
Accts/Rec		28,000
Allow. for D. Accts.			2,000
Notes Rec.		6,000
Merch Inv.		60,000
Prep. Insurance		500
Supplies		8,000
Land		40,000
Building		200,000
AccumDepr-Bldg			16,000
Equipment		80,000
AccumDepr-Equip			28,800
Accts/Pay			13,000
Salaries Pay			5,000
Payroll Taxes Pay			2,000
Unearned Revenue			3,000
Dividends Pay			4,000
Com Stk-$10 Par			200,000
APIC-C/S			20,000
Retained Earnings			138,700
Totals		432,500	432,500