SODO Financial Statement Homework #2 Name Upload a copy of ALL PAGES of the Financial Statement HW to the D2L dropbox. You must handwrite (not type) the assignment. re IDT ISOO 42000 S3000 1000 2000 David, Inc. December 31, 2017 Unadjusted Trial balance Cash 100,000 Accounts Receivable 65,000 Allowance for Doubtful Accounts Short Term Note Receivable 40.000 Interest Receivable 0 Supplies 5,000 Prepaid Insurance 48,000 Inventory 12,000 Vehicle 16,000 Equipment 75,000 Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends 3,000 Sales Sales Returns & Allowances 7,000 Sales Discounts 3,000 Cost of Goods Sold 46,000 Delivery Expense 5,000 Depreciation Expense 16.000 Bad Debt Expense 0 Rent Expense 90,000 Insurance Expense 40,000 Wages Expense 195,000 Supplies Expense 15,500 Interest Revenue Loss on Disposal 0 Interest Expense 6,500 Income Tax Expense 36.000 Total 832,000 70000 10,000 2,500 S41,00 0 832,00 46ooo 5,500 Part 1a: Prepare adjusting journal entries using the unadjusted trial balance on the previous page and the information provided below. Use only the account names provided on the previous page (do not create any new account names) 1. On Dec 31, 2017 merchandise was sold on account for $16,500 with a cost of $5,500 terms 3/10 net 30. Accounts Receivable 16,500 Sales 16,500 Casts of Goods Sold 5500 5.500 Inventory 2. The company received a 6 month, 12% interest note short-term note for the amount listed on the unadjusted trial balance on Oct. 1. 2017. All interest and principal will be paid back at the end of the 6 months. Write the adjusting journal entry required for its financial statements as of Dec. 31, 2017 70,000 X 127. Interest Receivable 2,100 x 3/12 Interest 2,100 8400 3. Uncollectable Accounts Receivables of $1,600 need to be written off for the year ended 2017 Yttharance for cloubtful GILLOUNIS 16000 Ancounts Receivable L00 Revenue a 4. Management estimates that of the remaining accounts receivable balance, $2,000 will be uncollectible. Record the adjustment based on this information. Hint: Use the AFDA balance AFTER the above write off during 2017. Use an AFDA T-account! Bac debts Expense 200 Allowance fon doulcium 2,100 accounts 5. A piece of equipment was retired on Dec. 31, 2017. The equipment originally cost $34,000 and has related A/D of $24,000 as of Jan. 1. 2017. Additional depreciation of $3,000 needs to be recorded on this piece of equipment at Dec 31, 2017. Update the depreciation below (#5). Then record the retirement (#6). Depreciation Expense 3000 Acumularea Repreciation 3000 6. Record the retirement of the equipment (from #5) including the gain or loss. Acumukrlec Depreciation 271000 Loss on Disposa 1 Equipment 34,000 7.000 0 338,500 53. Do Part 1c: Prepare the Adjusted Trial Balance (i.e., use ending balances after the previous journal entries are posted) December 31, 2017 Adjusted Trial balance Debit Credit Cash 100 000 Accounts Receivable 79.900 Allowance for Doubtful Accounts 2.000 Short Term Note Receivable 40,000 Interest Receivable ZIO Supplies SPDO Prepaid Insurance Inventory 6,500 Vehicle I DOO Equipment 41,000 Accumulated Depreciation 15,00 Accounts Payable Unearned Revenue Wages Payable 21000 Long-Term Notes Payable 70.000 Common Stock 10. ODO Retained Earnings (1/1/2017) Dividends 3.000 Sales 524,500 Sales Returns & Allowances 7.000 Sales Discounts 3. DOO Cost of Goods Sold S1,500 Delivery Expense 5.000 Depreciation Expense 19.000 Bad Debt Expense 2,100 Rent Expense 981000 Insurance Expense 40,000 Wages Expense 195.000 Supplies Expense 15,500 Interest Revenue Loss on Disposal 7000 Interest Expense Income Tax Expense 36.000 Total 827100 791,500 2.500 St0 ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L Part 1b: Post the adjusting journal entries to t-accounts: (Specific instructions: Above each T-account, write the account name of each account affected by a journal entry. Write in the unadjusted balance for each of these accounts (from page 1)...the unadjusted balance might be a debit, a credit, or zero balance. Now you are ready to post your journal entries from page 2 onto the corresponding T-accounts and then calculate adjusted balances.) Sales Costs of Goods Sold PILDOMS Receivable GS000 SOO 541,000 46.000 5,500 1,500 Bale 19.900 Bal. 524500 Bal. 51, SOO Inventory Interest Recewakte Interest Revenue 12,000 Isisoo 2.100 2.100 Bol, GSOD Bal- 2,100 Buli 2,100 Bod Debt Expense Allowance for Douletul Bront 1,500 Depreciation Expense 3000 16,000 2,100 Bal. 2.000 Bul. 2,100 Bal. 19,000 on Disposal Accumulated in Asian 27,000 Equipment 7500040 134.000 Bail tepoo Bal. 7000 Bal. 41,00d ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L 3