Rose Merchandising Company buys and sells a product called Zoom. Company is subject to 28% income tax rate. The account balances as of Jan. 1, 2021, the start of the year, were as follows: Debit Credit Cash 45,100 Accounts Receivable 22,000 Merchandise Inventory (3500 units @$16 per unit) 56,000 Supplies 10,450 Investment in Marketable Securities (available for sale) 55,000 Equipment 330,000 Accumulated Depreciation-equipment 44,660 Accounts Payable 29,700 Common Stock, $10 par 385,000 Retained Earnings 55,890 Accumulated other Comprehensive Income 16,500 Treasury Stock (1000 shares) 13,200 Total 531,750 531,750 Company uses LIFO under Perpetual Inventory System. Merchandise inventory on January 1st consisted of 3,500 units of Zoom that had costed $16 each. The following transactions took place in January of 2021. 1. Company purchased a truck for $35,000 plus 8% sales taxes. Paid $4,000 in cash a signed a 6% note that requires 50 equal monthly payment. 2. Purchased 5,000 units of Zoom at a cost of $15 each plus 8% sales taxes that was not included in the purchase price. Shipping cost was $150. The purchase was on account. Remember, cost principle states that assets should be recorded at whatever it cost to purchase and have it ready for the intended use. 3. Sold 7,500 units of Zoom to Team America for a price of $25 each in cash. Applicable sales tax rate was 8% which is not included in price. Do not forget journalizing the cost. 4. During an internal audit, company detected that during taking physical inventory at the end of last year for making adjusting entry, supplies on hand was over stated by $4,000. 5. Closed its Mexico branch by selling the branch equipment that had cost $100,000 with accumulated depreciation of $12,000 for $104,000 in cash. 6. Paid $1,400 for utilities expense of the month. 7. Paid salaries of the month, $12,000. Applicable federal income tax rate is 20%, state income tax rate is 6%, FICA tax rate is 7.65%, Federal Unemployment Taxes 0.80%; State Unemployment Taxes 5.40%. 8. Declared and paid $5,000 cash dividends to common stockholders. 9. on Jan. 31, 2021, fair market value of Investment in Marketable Securities (available for sale) was $44,000. 10. A physical inventory count indicated that $240 supplies were left. 11. Paid the first monthly payment on the purchase of truck in transaction #1. 12. Recorded accrued income tax expense. Requirements On the Excel file (Answers Sheets), do the followings: 1. Check make sure that beginning balances are stated correctly in the General Ledger accounts. 2. Journalize transactions 1 to 12 in the General Journal Tab. Hint: For recording accrused income tax expense you need to prepare a partial income statement to compute the amount of income taxes. 3. Post journal entries from General Journal to the accounts in the Generla Ledger 4. Prepare a Trial Balnce 5. Prepare a Multiple Step Income Statement & state Earnings Per Shares below it 6. Prepare a Comprehensive Income Statement 7. Prepare a Statement of Retained Earnings 8. Prepare a Statement of Stockholders' Equity 9. Prepare a classified Balance Sheet 10. Prepare a Statement of Cash Flows (direct or indirect method) 11. Provide closing journal entries on the General Journal but do not post them to General Ledger Rose Merchandising Company buys and sells a product called Zoom. Company is subject to 28% income tax rate. The account balances as of Jan. 1, 2021, the start of the year, were as follows: Debit Credit Cash 45,100 Accounts Receivable 22,000 Merchandise Inventory (3500 units @$16 per unit) 56,000 Supplies 10,450 Investment in Marketable Securities (available for sale) 55,000 Equipment 330,000 Accumulated Depreciation-equipment 44,660 Accounts Payable 29,700 Common Stock, $10 par 385,000 Retained Earnings 55,890 Accumulated other Comprehensive Income 16,500 Treasury Stock (1000 shares) 13,200 Total 531,750 531,750 Company uses LIFO under Perpetual Inventory System. Merchandise inventory on January 1st consisted of 3,500 units of Zoom that had costed $16 each. The following transactions took place in January of 2021. 1. Company purchased a truck for $35,000 plus 8% sales taxes. Paid $4,000 in cash a signed a 6% note that requires 50 equal monthly payment. 2. Purchased 5,000 units of Zoom at a cost of $15 each plus 8% sales taxes that was not included in the purchase price. Shipping cost was $150. The purchase was on account. Remember, cost principle states that assets should be recorded at whatever it cost to purchase and have it ready for the intended use. 3. Sold 7,500 units of Zoom to Team America for a price of $25 each in cash. Applicable sales tax rate was 8% which is not included in price. Do not forget journalizing the cost. 4. During an internal audit, company detected that during taking physical inventory at the end of last year for making adjusting entry, supplies on hand was over stated by $4,000. 5. Closed its Mexico branch by selling the branch equipment that had cost $100,000 with accumulated depreciation of $12,000 for $104,000 in cash. 6. Paid $1,400 for utilities expense of the month. 7. Paid salaries of the month, $12,000. Applicable federal income tax rate is 20%, state income tax rate is 6%, FICA tax rate is 7.65%, Federal Unemployment Taxes 0.80%; State Unemployment Taxes 5.40%. 8. Declared and paid $5,000 cash dividends to common stockholders. 9. on Jan. 31, 2021, fair market value of Investment in Marketable Securities (available for sale) was $44,000. 10. A physical inventory count indicated that $240 supplies were left. 11. Paid the first monthly payment on the purchase of truck in transaction #1. 12. Recorded accrued income tax expense. Requirements On the Excel file (Answers Sheets), do the followings: 1. Check make sure that beginning balances are stated correctly in the General Ledger accounts. 2. Journalize transactions 1 to 12 in the General Journal Tab. Hint: For recording accrused income tax expense you need to prepare a partial income statement to compute the amount of income taxes. 3. Post journal entries from General Journal to the accounts in the Generla Ledger 4. Prepare a Trial Balnce 5. Prepare a Multiple Step Income Statement & state Earnings Per Shares below it 6. Prepare a Comprehensive Income Statement 7. Prepare a Statement of Retained Earnings 8. Prepare a Statement of Stockholders' Equity 9. Prepare a classified Balance Sheet 10. Prepare a Statement of Cash Flows (direct or indirect method) 11. Provide closing journal entries on the General Journal but do not post them to General Ledger