>Save On DT Ch 9 Student Assign Ch 9 Recording liabilities US Edition at Aug 29_18 (1) (1) - Protected Home Insert Draw Page Layout Formulas Data Review View Help "ROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. fx A B E F G H Before you begin, print out all the pages in this workbook. The unadjusted trial balance of Morgan Manufacturing Corp. at December 31, 2019 is shown on the "Trial Bal" page (see tab below). Refer also to the additional year-end information for the company shown on the "Adjusting Entries" page (see tab below). Required: 1 Prepare year-end adjusting entries. General ledger account numbers are not necessary. Show your calculations below each adjusting entry. 2 Post the adjusting entries to the trial balance and prepare an adjusted trial balance. 3 Using the amounts from the adjusted trial balance, complete the financial statements for the year ended December 31, 2019. B D E F G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 494 27/ K34 Jr H Morgan Manufacturing Corp. Adjusting Entries For the Year Ended December 31, 2019 The following additional information is available at the corporation's year- end. GST of 5% only applies when indicated a A sale on account has not been recorded in the amount of $5,000 8 Applicable sales taxis b. Warranty expense for the year as a percentage of sales shoul c. Unpaid gross salaries at year-end amount to $10.000 Deductions from unpaid salaries are as follows. Employee Company Portion Portion Employee income taxes FICA Social Security tanes' FICA Medicare taxes Company health insurance these are not the actual required percentages d. The estimated year-end audit fees are: 590.000 e. Bent revenue consists of qual monthly payments. including one paid in advan t. Atrade account payabile was ede during the year. No entry has been made to record this. The 30 note payable is due at the end of 2020 The amount of the note payable is: $40.000 The annual interest rate on the note payable is: The note payable was created at the end of this month January 1 December = 12) 9 Alawsuit was commenced against the company in 2019, Damages claimed are: $30.000 Lawyers for the company consider the likelihood of successo Possible h. The interest rate on the mortgage is Annual payments blended principal and interest) are made on Dec. 31 and total $163 200 The 2013 payment has been recorded as interest on Long- tem Debt expense 21 22 23 24 25 26 27 28 29 32 35 36 38 39 40 41 44 45 46 47 50 51 52 The corporate income tax rate as a percentage of income before income taxes is Corporate income tax installments during the year have been recorded as Income Tax expense in the records. Assume any 2019 loss before income taxes will result in the refund of income taxes at the current year's income tax rate Required Adjusting Entries Gen. Jnl. Trial Bal. Calculate Calibri 12 23 Wrap Paste Ib Copy Format Painter ' ' == 0 A Merge BI U y Clipboard Font Alignment A1 X & fx B D E 1 Morgan Manufacturing Corp. GENERAL JOURNAL 2 3 Dec. 4 2019 Adjusting entries Debit Credit 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Required Adjusting Entries Gen. Jnl. Trial Bal. Fcl. Stmts. Copyright Calculate o BE Type here to search AutoSave OH TO Ch 9 Student Assign Ch 9 Recording liabilities US Edition at Aug 29. File Home Insert Draw Page Layout Formulas Data Review View Help > fo 3000 KL M N 0 D E F G H . } Trial Balance At December 31, 2019 Unadjusted TB Adjustments Debit Credit Ad! Debit Credit 74,000 760,000 210,000 Adi. # Adjusted TB Debut Credit 10,000,000 7.900,000 1,580,000 140,000 136,000 Page 1 A 1 2 Account 3 4 Cash in bank 5 Accounts receivable 6 Parts inventory 7 Corp. income tax receivable 8 Land 9 Building 10 Accumulated depin - blide 11 Trade accounts payable 12 Interest payable 13 Estimated current liabilities 14 15 Estimated warranty liability 16 Salaries payable 17 Employee inc. taxes pay. 18 FICA SOC. Sec. pay. 19 20 FICA Medicare payable 21 22 Co, health insurance payable 23 24 Corp. income tax payable 25 Sales tax payable 26 Note payable 27 Unearned rent revenue 28 Mortgage payable 29 Common stock, $1 per sh. 30 Retained earnings 31 Rent revenue 32 Sales, net 33 Cost of goods sold 34 Bad debts expense 35 Co, health ins espense 36 Delivery expense 37 Dep'in expense building 38 FICA Soc. Sec. exp. 39 FICA Medicare exp 40 interest and bank charges 41 interest on long-term debt 42 Lawsuit damages expense 43 Office Supplies expense 41 Professional fees 45 Salaries expense 46 Warranty expense 47 Corp. income tax exp. 1,000 1,632,000 9,000,000 2,963,800 520,000 13,600,000 8.704,000 3,000 18.400 300,000 1,000 18.400 9,200 50,000 163,200 0 99,000 40,000 460,000 1,000 489,600 29,436,800 29,436,800 Adjusting Entries Gen. Jnl. Page 2 Required Trial Bal. Fcl. Stmts. Copyright Calculate Type here to search O BE P 113 A B C D TE F G 1 Morgan Manufacturing Corp. 2 Income Statement 3 For the Year Ended December 31, 2019 4 2019 2018 5 Sales, net $12,756,800 6 Less: Cost of goods sold 9,017,344 7 Gross profit 3,739,456 8 Operating expenses 9 Selling 10 Salaries and benefits 532,510 11 Delivery 282,510 12 Office supplies 99,000 13 Warranty 247,520 14 Total selling 1,161,030 15 General and administrative 16 Bad debts 2,790 17 Depreciation 940 18 Lawsuit damages 19 Professional fees 143,000 20 Total general and administrativ 146,730 21 Total operating expenses 1,307,760 22 Income from operations 2,431,696 23 Other income Rent revenue 499,200 25 Income before interest and income taxes 2,930,896 26 Interest expense 177,243 27 Income before income taxes 2,753,653 28 Income taxes 275,365 29 Net income $2,478,288 30 31 Morgan Manufacturing Corp. 32 Statement of Changes in Equity 33 For the Year Ended December 31, 2019 34 2019 2018 35 Common Retained 36 stock earnings Total equity Total equity 37 Balance at Jan. 1 $9,000,000 $2,963,800 $11,963,800 $9,485,512 38 Net income 2,478,288 39 Balance at Dec. 31 $9,000,000 $11,963,800 40 Required Adjusting Entries Gen. Jnl. Trial Bal. Fel. Stmts. Page 1 24 K L A B C D E F G 42 Balance Sheet 43 At December 31, 2019 44 45 Assets 46 Current 2019 2018 47 Cash $41,970 48 Accounts receivable, net 640,000 49 Corporate income taxes receivable 50 Inventories 168,012 51 849,982 52 Non-current 53 Land 23,166,245 54 Building, net 6,321,000 55 29,487,245 56 $30,337,227 57 58 Liabilities 59 Current 60 Trade accounts payable $108,150 61 Estimated current liabilities 84,600 62 Estimated warranty liabilities 126,900 63 Note payable 0 64 Interest payable 297 65 Salaries and benefits payable 10,340 66 Sales tax payable 1,540 67 Unearned rent 41,600 68 Current portion of mortgage payable 180,000 69 Corporate income taxes payable 70 553,427 71 Non-current 72 Mortgage payable 18,000,000 73 Less: Current portion (180,000) 74 17,820,000 75 Total liabilities 18,373,427 76 77 Stockholders' Equity 78 Common stock 9,000,000 79 Retained earnings 2,963,800 80 11,963,800 81 Total liabilities and S/H equity $30,337,227 82 Required Adjusting Entries Gen. Jnl. 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