Requirements

Prepare a beginning trial balance using the given account balances

Read the given financial data of Bob's Bacon House Inc.

Determine the appropriate journal entry for each event.

Determine the required adjusting journal entries in order to match expenses with revenues

Compute the correct ending account balances and prepare an end-of-the-year trial balance.

Determine which accounts belong to the balance sheet and which accounts belong to the income statement.

Determine to which subgroup of balance sheet or income statement each account belongs.

Arrange the accounts in proper order and functionality.

Prepare a multistep income statement in good form.

Prepare a comprehensive balance sheet in good form.

Group Project Administration

This project can be done in pre-assigned student groups (see the People link). If the student wishes to "opt-out" of the group and do the project as an individual, please contact your group members (and copy me.)

Specific Requirements

• Download both templates from class Files. You can select one to submit later.
• From the "Financial Data of Bob's Bacon House" - schedule #1 below, prepare a beginning trial balance.
• Prepare the necessary journal entries based on the business events described on schedule #2.
• Prepare adjusting journal entries as described on the template and also prepare any aje's based on your accounting judgement for proper reporting.
• Select one of the two template formats, post the je and aje to either the general ledger or worksheet tab, so as to determine the ending balances in the accounts.

Prepare a properly formatted

1. Income Statement (Multi-step)
2. Statement of Stockholders' Equity
3. Balance Sheet
4. Statement of Cash Flows

Financial Data of Bob's Bacon House Inc. as of January 1, 2018 - Schedule #1

Accounts Payable	200,500
Account Receivable	165,700
Accumulated Depreciation's	350,000
Additional Paid-In Capital	40,000
Allowance for Doubtful Accounts	2,650
Building and Equipment	1,120,000
Cash	45,300
Common Stock, $1 par	544,850
Copyrights	112,000
Customer Deposits (expected to be paid in 2019)	375
Goodwill	225,000
Income Taxes Payable	42,340
Inventories @ $25/unit	315,250
Long-term Investment.	95,630
Deposits With Vendors	47,200
Land	125,000
Mortgage Payable, 3% (paid at $2,780 per month)	667,200
Bonds Payable to Banks, 2% (due 2025)	26,000
Notes Receivable, 1.5% (due 2020)	16,000
Patents	219,335
Retained Earnings	108,980
Trademarks	115,000
Interest Payable	18,520
Notes Payable to banks, 4%, due 2022	600,000

Financial Data of Bob's Bacon House Inc. - Schedule #2

1	Finished Goods inventory purchased from suppliers on account. 2/10/2019 10,000 units @ $26 each 6/12/2019 15,000 units @ $28 each 10/23/2019 12,000 units @ $29 each 11/25/2019 8,000 units @ $30 each All purchases and sales are made on credit (account).
2	Bob's Bacon House Inc. uses a periodic inventory system and FIFO costing method in order to calculate cost of goods sold.
3	Payments made to suppliers on account during 2019 are $1,124,450.
4	Sales made to customers on account are 49,356 units @ $36 each.
5	Cash collected from customers during 2019 is $1,750,700.
6	Interest accrued last year and paid on notes payable and bonds payable amounts to $17,415.
7	Rental income on property leased out is $25,650.
8	Bob's Bacon House Inc. was operating a retail store in Chicago. Original cost of building and equipment was $120,000 with a book value of $95,000. During 2019, New York Traders disposed of this store at a loss of $35,800.
9	Bob's Bacon House Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 2019.
10	Selling and administrative expenses are $128,475. These expenses include $56,000 depreciation expense on building and equipment but exclude bad debts expenses.
11	Issued a public offering of 10,000 common stock shares and received $65,000
12	Income tax expense was accrued last year. The amount paid for 2018 is $90,500. Bob's Bacon House income tax rate for is 30%.