Seeing if anyone if available to review the journal entries, and trial balance the numbers are off somewhere..

ACCT3303 Group Project One The 2015 balance sheet of the Stark Industries is attached. During 2016, the following events occurred. 1. On January 10, sell merchandise on account to Rayms $9,800 and Fischer $8,600. Terms 1/10, n/30. Freight $100 for each sale, F.O.B. shipping point. 2. On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. Terms 2/10, n/30. Freight $120 for each sale, F.O.B. destination. 3. On January 13, receive checks, $4,000 from Longhini and $2,000 from Hall, for sales on account after discount period has lapsed. 4. On January 15, send checks to Joosten for 9,000 less 2% cash discount, and to Maida for $11,000 less 1% cash discount. 5. On January 16, issue credit of $200 to Fieber for merchandise returned. 6. On January 18, summary daily cash sales total $17,520. 7. On January 21, pay off the balances to Zapfel and Liotta for the purchases on January 12. 8. On Feburary 9, receive payment in full from Rayms and Fischer. 9. On January 1, pay rent of $6,000 for a two-year term. 10. On April 1, sell merchandise on account to Dunlap $1,600, term 2/10, n/30. Freight $100, F.O.B. shipping point. 11. Pay $500 cash for office supplies on May 1. 12. Cash dividends totaling $900 are declared on June 13 and paid to stockholders on June 23. 13. Issue a note of $120,000 to bank (one year, annual interest rate 2%) for cash on July 1. 14. On July 5, purchase merchandise from Maida $33,000, terms 2/10, n/30. 15. On July 7, issue common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $15,000. 16. On July 8, return $200 of merchandise to Maida and receive credit. 17. On August 1, sell merchandise to Lachey on account $80,000, term 1/10, n/30. Freight $1,500, F.O.B. shipping point. 18. On August 4, pay off the balance to Maida. 19. On August 10, receive half of the payment from Lachey. 20. On August 14, write off $1,300 bad debt for one account, Tooket. 21. On August 21, pay utilities expense, $10,092. 22. On August 31, Lachey pays off its balance. 23. On September 1, pay cash $7,500 to Farmington for merchandise purchased last year. 24. On October 1, pay off notes payable $110,000 and associated accrued interest $6,000, of which $1,500 was shown on the balance sheet. 25. Over the year, sales and office employees earned $45,500 in salaries and wages, of which $1,500 was still payable at the end of year. 26. An unpaid utilities bill (December, $1,250) is due on January 10 next year. Additional Information at the end of the year: 1. Depreciation expense for the year was $13,250. 2. The company estimated that it has to pay federal income tax, $3,250. 3. After physically counting, the company decided that the ending inventories worth $40,146. 4. Based on its historical data, the company estimated that the bad debts were about 1% of net credit 1 sales. 5. Unearned revenue is decreased by $12,000. 6. The company expenses all of the supplies purchased during the year. 7. No insurance policy is effective during the year. 8. The company used the gross method to record its purchases and sales on credit. 9. The company adopts the periodic inventory system. Instructions: 1. Prepare journal entries for each event. 2. Prepare adjusting entries. 3. Prepare adjusted trial balance. 4. Prepare Income Statement, Retained Earnings Statement, Balance Sheet, and Statement of Cash Flows. 5. Prepare closing entries. Stark Industries BALANCE SHEET DECEMBER 31, 2015 Current Assets Cash Notes Receivable Accounts Receivable Less: Allowance for Doubtful Accounts Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term Investments Investments in held-for-maturity securities Land held for future development Property, Plant, and Equipment Land Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Identifiable Intangible Assets Total Non-Current Assets 42,200 16,000 41,800 (3,000) 38,800 540 600 136,940 52,000 45,500 85,000 675,000 (187,500) 8,000 76,700 48,000 802,700 2 Total Assets Current Liabilities Notes Payable Accounts Payable Unearned Revenues Income Taxes Payable Property Taxes Payable Interest Payable Total Current Liabilities Non-Current Liabilities Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 939,640 110,000 32,000 13,500 8,440 6,600 1,500 172,040 84,100 300,000 384,100 556,140 100,000 100,000 27,500 10,000 152,750 6,000 (12,750) 383,500 939,640 3 Use the following check figures for Project One. Adjusted Trial Balance: Total $1,276,554 Income Statement: Earning after income tax: $8,928 Retained Earnings Statement: Retained Earnings: $160,778 Balance Sheet: Inventory: $40,146 Total assets: $938,868 Statement of Cash Flows Net cash flows from this year: ($1,274) Cash (ending): $40,926 4 Team Alexandra Hundall Rachel Condon Elizabeth Olayo Rodrigo Cardenas Whole Team Contributions Journal Entries, Adjusting Entries Income Statement, Retained Earnings Balance Sheet, Statement of Cash Flows Closing Entries, Formulas, Formatting We spent several additional hours as a team trouble shooting, correcting and adjusting the journal/adjusting entries and the adjusted trial balance. Stark Industries BALANCE SHEET DECEMBER 31,2015 Current Assets Cash Notes Receivable Accounts Receivable Less: Allowance for Doubtful Accounts Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term Investments Investments in held-for-maturity securities Land held for future development Property, Plant, and Equipment Land Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Identifiable Intangible Assets Total Non-Current Assets Total Assets Current Liabilities Notes Payable Accounts Payable Unearned Revenues Income Taxes Payable Property Taxes Payable Interest Payable Total Current Liabilities Non-Current Liabilities Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock 42,200 16,000 41,800 (3,000) 38,800 540 600 136,940 52,000 45,500 85,000 675,000 (187,500) 8,000 76,700 48,000 802,700 939,640 110,000 32,000 13,500 8,440 6,600 1,500 172,040 84,100 300,000 384,100 556,140 100,000 100,000 27,500 10,000 Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 152,750 6,000 (12,750) 383,500 939,640 Event Date Account Ref Debit 1 1 1 10-Jan Accounts Receivable- Rayms Accounts Receivable- Fischer Sales 3 3 19 9,800 8,600 2 2 2 12-Jan Inventory- Zapfel Inventory- Liotta Accounts Payable 5 5 11 3,000 2,400 3 3 3 13-Jan Cash Accounts Receivable- Longhini Accounts Receivable-Hall 1 3 3 6,000 4 4 4 15-Jan Accounts Payable Cash Discount Received 11 1 27 20,000 5 5 16-Jan Sales Return Accounts Receivable- Fieber 20 3 200 6 6 18-Jan Cash Sales 1 19 17,520 7 7 7 21-Jan Accounts Payable Cash Discount Received 11 1 27 5,400 Credit 18,400 5,400 4,000 2,000 19,710 290 200 We decided to leave this 17,520 If it was meant only as a 5,292 108 8 8 9-Feb Cash Accounts Receivable 1 3 18,400 9 9 1-Jan PrePaid Rent Cash 8 1 6,000 18,400 6,000 10 10 1-Apr Accounts Receivable- Dunlap Sales 3 19 1,600 11 11 1-May Expense- Office Supplies Cash 23 1 500 12 12 23-Jun Dividend Payable Cash 29 1 900 1,600 500 900 13 13 1-Jul Cash Notes Payable 1 10 120,000 14 14 5-Jul Inventory Accounts Payable- Maida 5 11 33,000 15 15 15 7-Jul Land Common Stock (1,000 shares) Paid- in Capital 9 14 15 15,000 16 16 8-Jul Accounts Payable Inventory Return 11 6 200 120,000 33,000 10,000 5,000 200 17 17 8/1/2016 Accounts Receivable-Lachey Sales 3 19 80,000 18 18 8/4/2016 Accounts Payable Cash 11 1 32,800 80,000 32,800 19 19 8/10/2016 Cash Accounts Receivable 1 3 40,000 20 20 8/14/2016 Accounts Receivable Allowance for Doubtful Account 3 4 1,300 21 21 8/21/2016 Expense- Utility Cash 22 1 10,092 22 22 8/31/2016 Cash Accounts Receivable 1 3 40,000 11 1 7,500 10 25 12 1 110,000 4,500 1,500 21 17 1 45,500 23 23 24 24 24 24 25 25 25 9/1/2016 Accounts Payable- Farmington Cash 10/1/2016 Notes Payable Interest Expense Interest Payable Cash 31-Dec Expense- Salaries and Wages Salary Payable Cash 40,000 1,300 10,092 40,000 7,500 116,000 1,500 44,000 26 12/31/2016 Expense- Utility 26 Utility Payable 22 13 1,250 1,250 642,962 642,962 e decided to leave this entry because we assumed it was necessary to recognize the sale. it was meant only as a summary or count, then it should not be included. Account ADJUSTING ENTRIES Debt 1 Expense- Depreciation Accumulated Depreciation Credit 13,250 13,250 2 Income Tax Expense Income Tax Payable 3,250 3 Inventory- Finished Goods Cost of Goods Sold 1,346 3,250 1,346 ?? 4 Bad Debt Expense Allowance for doubtful account 5 Unearned Revenue Sales Revenue 12,000 12,000 6 Supplies Expense Supplies 500 8 Interest Expense Interest Payable 1,200 500 1,200 31,546 31,546 Stark Industries Adjusted Trial Balance December 31,2016 Account Cash Notes Receivable Accounts Receivable Allowance For Doubtful accounts Inventories (Purchases) Inventory Return Prepaid Insurance PrePaid Rent Acummulated Depreciation Land Notes Payable Accounts Payable Interest Payable Utility Payable Dividends Payable Income Tax Payable Common Stock Paid In Capital -Common Stock Supplies Salaries and Wages Payable Dividends Sales (Service Revenue) Sales Return Unearned Revenue Cost of Goods Sold Salaries and Wages - Expense Utilities- Expense Supplies - Expense Rent- Expense Interest Expense Depreciation Expense Bad Debt Expense Income Tax Expense Discount Received Discount Paid Ref 1 2 3 4 5 6 7 8 9 10 11 12 13 29 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Trail Balance Debt Credit 241,920 242,794 101,300 104,600 1,300 38,400 200 6,000 15,000 110,000 65,900 1,500 900 200 45,500 11,342 500 4,500 642,962 120,000 38,400 1,250 10,000 5,000 1,500 117,520 398 642,962 Adjustments Debt 1,346 12,000 500 1,200 13,250 3,250 31,546 Adjustments Credit 13,250 1,200 3,250 500 12,000 1,346 - 31,546 Total: Adjusted Trail Balance Debt Credit 241,920 242,794 101,300 104,600 1,300 39,746 200 6,000 13,250 15,000 110,000 120,000 65,900 38,400 300 1,250 900 3,250 10,000 5,000 500 1,500 129,520 200 12,000 1,346 45,500 11,342 1,000 5,700 13,250 3,250 398 673,308 673,308 1,346,616 Account Revenues Service Revenue Expenses Salaries and Wages - Expense Utilities- Expense Supplies - Expense Depreciation Expense Interest Expense Bad Debt Expense Income Tax Expense Total Expense Net Income Stark Industries Income Statement For The Month Ended December 31,2016 Debt Credit 129,520 45,500 11,342 1,000 13,250 5,700 3,250 80,042 49,478 Stark Industries Retained Earnings Statement For The Month Ended December 31,2016 Retained Earnings December 31,2016 Add: Net Income Less Dividends: Retained Earnings December 31, 2016 49,478 49,478 49,478 Stark Industries BALANCE SHEET DECEMBER 31,2016 Current Assets Cash Notes Receivable Accounts Receivable Less: Allowance for Doubtful Accounts Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term Investments Investments in held-for-maturity securities Land held for future development Property, Plant, and Equipment Land Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Identifiable Intangible Assets Total Non-Current Assets Total Assets Current Liabilities Notes Payable Accounts Payable Unearned Revenues Income Taxes Payable Property Taxes Payable Interest Payable Total Current Liabilities Non-Current Liabilities Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock Retained Earnings 40,926 16,000 37,100,351,000 (2,000) 40,146 5,400 6,003,000 135,175 52,000 45,500 95,000 675,000 (200,750,474,250) 8,000 76,700 803,696 938,868 1,074,043 120,000 4,458 1,500 11,690 6,600 164,240 Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity Statement of Cash Flows Stark Industries for the year ending Dec.31 2016 Cash flow Operating activities Sales Receipt: Received on Jan 13 Jan 18- Cash Sales Summary Feb 9- Received from Rayms and Fischer Aug 10- Received half payment from Lachey Aug 31- Balance from Lachey Total receipts from sales Less:Payments for Purchases: Jan 15 - Check paid to Joosten (8820) and Maida (10890) Jan18- Paid to Zapfel (2,940 ) and Loitta(2,352 ) Sep 1- Cash Payment to Farmington Payoff Balance to Maida(33,000 - 200) Pay Utility Expenses Rent paid on Jan1 Paid for supplies Dividends Salaries in cash Issuing note to bank Oct 1- Paying off note along Net cash from financing activities Net cash flows from this year Add: Opening Cash balance Closing Cash balance 6,000 17,520 18,400 39,600 40,000 121,520 19,710 5,292 7,500 32,800 10,092 6,000 500 900 44,000 (126,974) (5,274) 120,000 (116,000) 4,000 (1,274) 42,200 40,926 General Journal Date Account Titles and Explanation Closing Entries 31-Dec Service Revenue Income Summary Debit 129,520 31 Income Summary Salaries and Wages - Expense Utilities- Expense Supplies - Expense Depreciation Expense Interest Expense Bad Debt Expense Income Tax Expense 80,042 31 Income Summary Retained Earnings 49,478 31 Retained Earnings Dividends - Credit 129,520 45,500 11,342 1,000 13,250 5,700 3,250 49,478