Some of the transactions require adjustments, like depreciation.
	Prepare all the necessary adjusting JE, and post it to the GL
	Note: you can bring the GL for those accounts require adjustments into this sheet, then update it. Or follow my template

2019 Debit Credit 1 1-Jan 585,873 See the first JEI prepared and follow Account Titles Building Cash Notes Payable Wages & Salaries Payable 130,194 455,679 2 3-Jan 75,000 Cash 75,000 3 8-Jan Cash 107,500 Sales Revenue 107,500 Cost of goods sold 26,039 26,039 4 12-Jan Inventory Income tax payable Cash 45,000 45,000 5 13-Jan 130,194 Cash Accounts Receivable 130,194 6 15-Jan Cash 390,582 Common shares 390,582 7 16-Jan 273,407 273,407 Inventory Accounts Payable Accounts Payable Inventory 8 21-Jan 13,019 13,019 9 28-Jan Accounts Payable 10 31-Jan 6,510 6,510 Utility Expense Cash Salaries & wages exp. Cash 11 31-Jan 10,416 10,416 12 2-Feb Accounts Receivable 156,233 11 31-Jan 10,416 Salaries & wages exp. Cash 10,416 12 2-Feb 156,233 156,233 104,155 104,155 13 12-Feb Accounts Receivable Sales Revenue Cost of goods sold Inventory Accounts Receivable Sales Revenue Cost of goods sold Inventory Cash 78,116 78,116 52,078 52,078 14 1-Mar 78,116 Accounts Receivable 78,116 15 1-Apr Rent expense 3,906 Cash 3,906 16 15-Apr 260,388 Inventory Cash 260,388 17 1-May Cash 130,194 130,194 Notes Payable Pre Paid Rent 18 1-Aug 15,623 15,623 Cash Maintenance exp. 19 31-Aug 6,510 6,510 20 1-Sep Cash Salaries & wages exp. Cash 19,529 19,529 21 30-Sep Cash 31,247 Rent revenue 31,247 22 21-Oct Accounts Receivable 260,388 Sales Revenue 260,388 130,194 130,194 23 1-Nov Cost of goods sold Inventory Cash Accounts Receivable Accounts Receivable 65,097 65,097 24 8-Nov 273,407 Sales Revenue 273,407 22 21-Oct 21-Oct Accounts Receivable 260,388 Sales Revenue 260,388 130,194 Cost of goods sold Inventory 130,194 23 1-Nov Cash 65,097 Accounts Receivable 65,097 24 8-Nov 273,407 273,407 130,194 Accounts Receivable Sales Revenue Cost of goods sold Inventory Cash Accounts Receivable 130,194 25 14-Nov 267,939 273,407 Discount Exp 5,468 26 31-Dec 10,000 Income tax exp. Cash 10,000 Dec 31, the note payable and the interest need to be calculated and paid Can be done here or in Adj. JE sheet Interest expense = 23,539 A 31-Dec Notes Payable 585,873 23,539 Interest expense Cash 609,412 The following transaction are the only transaction for ACCT 1115 co. during 2019: 1 2 3 4 5 6 7 8 9 10 11 12 13 Jan I purchased new building for 585,873 they paid 130,194 cash and they sign 12 note payable for the balance. The note carry interest of The note principle due with the interest on Dec 31, 2019. The building expected useful life 25 years, residual (salvage) value amount of 65,097 ACCT 1115 uses straight line as their method of depreciation. Jan 3, all wages payable from 2018 paid cash Jan 8, they deliver merchandise to customer amount of 107,500 cost of these products are 26,039 Previously ACCT 1115 received cash amount of 107,500 from customer and record it in Dec 18, 2018 in account (Unearned sales revenue) Jan 12, all income taxes owed from last year are paid cash Jan 13, collect from customers 130,194 cash Jan 15, issued common shares for 390,582 cash Jan 16 purchased merchandise for 273,407 from ABC Co., term 3/20, 1/45, FOB destination, 3% discount if paid in 20 days Jan 21 returned merchandise to ABC co amount of 13,019 Jan 28 paid the amounts owed to ABC CO. Jan 31 paid utilities 6,510 cash Pan 31 paid salaries 10,416 cash Feb 2 sold merchandise of 156,233 cost of those goods was. 104,155 ACCT 1115 used perpetual inventory system Feb 12 sold merchandise of 78,116 to XYZ co., term 2/10, 1/30. FOB shipping point. cost of those goods was 52,078 2% discount if received in 10 days March 1, XYZ paid their account in full Apr 1 paid rent for the months Jan-Mar amount of 3,906 Apr 15, purchased merchandise for cash 260,388 May I borrow from a local bank 130,194 by signing a 12% 12 note payable Aug 1, they paid for one-year rent amount of 15,623 Aug 31, paid cash for maintenance and cleaning the building 6,510 Sep 1, paid in salaries 19,529 Sep 30, they rent part of their building to a local business and collect one year rent in advance amount of 31,247 for 12 months Oct 21 sold merchandise on account for 260,388 to BC ltd., cost of those goods was 130,194 Nov 1, Bc Itd., paid 65,097 cash on their account Nov 8 sold merchandise to SK co., for 273,407 term 2/10, 1/30. FOB shipping point, Cost of those goods was 182,272 2% discount if received in 10 days Nov 14, SK paid their account in full Dec 31, paid income taxes amount of 10,000 14 15 16 17 18 19 20 21 22 23 24 25 26 ACCT 1115 Co. Comparitive statement of Financial Position December 31, 2018 and 2017 Account 2018 2017 Sales Revenue 713,000 620,000 Sales discount 713,000 471,500 241,500 620,000 410,000 210,000 17,250 15,000 10,000 11,500 5,750 5,000 Net slaes Cost of goods sold Gross Profit Operating exp: Salaries & wages exp. Rent expense Utility Expense Maintenance exp. Dep. Expense (equip. & Build) Bad debt exp Insurance exp Total operating exp. Operating income Other revenues and expenses: 57,500 4,025 50,000 3,500 12,000 95,500 13,800 109,825 131,675 114,500 Rent revenue Interest exp. 30,000 84,500 Income before tax 34,500 97,175 45,000 52,175 Income tax exp. 42,000 42,500 Net Income ACCT 1115 Co. Comparitive statement of Financial Position December 31, 2018 and 2017 Account 2018 2017 Current Assets: Cash Accounts Receivable 100,000 200,000 185,000 24,000 509,000 50,000 100,000 125,000 36,000 Inventory Prepaid Insurance Total current assets Long term Investments Equipment Accumulated depreciation-Equipment Total Assets 250,000 500,000 (150,000) 1,109,000.00 311,000 80,000 500,000 (100,000) 791,000.00 160,000 60,000 10,000 42,000 Liabilities and sharholders equity Accounts Payable Wages & Salaries Payable Unearned Sales Revenue Income tax payable Total current liabilities Bonds payable Total Liabilities Common shares Retained earnings Total Liabilities and sharholders equity 75,000 107,500 45,000 387,500 350,000 737,500 100,000 271,500 1,109,000.00 112,000 350,000 462,000 100,000 229,000 791,000.00 P 500,000 10 396 Notes (assumptions): A. ACCT 1115 using perpetual inventory system B. Equipment on their SFP purchased on 2016 for $500,000 with $0 residual value, depreciated straight line over 10 year estimated useful life. C. They use aging accounts receivables method to estimate any bad debt expenses. They estimated 3% of outstanding net Accounts Receivables t year yean sales at year will not be collected D. Prepaid insurance was paid on Jan 1,2017 to cover 3 years insurance E. No accruals/deferrals other than the ones found in the above transactions. Required: Following the excel sheet template Prepare: Round your answers to nearst $1 dollar. This is not apply on the ratios 1. All JE for the above transactions, considering the notes/ assumptions above 2. Post all the transactions into the general ledger GL ("T" accounts) 3. Prepare the unadjusted trial balance before any adjustments 4. Prepare all the required adjustments (deferrals and accruals) if any, and update the GL 5. Prepare the adjusted trial balance after you made all the adjustments 6. Prepare the following financial statements Statement of Income Statement of changes in equity Statement of Financial position 7. Prepare the following financial ratios (the list on excel file). Round ratios to 2 digits. Write a memo to your client ACCT 1115 to communicate your findings by explaining the ratios, their results and any suggestions for improvements if needed. (Memo one to two pages maximum) a. b. c. 8. Some of the transactions require adjustments, like depreciation. Prepare all the necessary adjusting JE, and post it to the GL Note: you can bring the GL for those accounts require adjustments into this sheet, then update it. Or follow my template 1. Calculate the depreciation for equipment (from the notes) Dep. Exp= 50,000.0 Debits edits 31-Dec Dep, Exp. 50,000 C. Dep. 50,000 2. Calculate bad debt expense, its 3% of the net credit sales (from the notes) Bad debt expense - Debits edits 31-Dec 5. Calculate the deferred insurance exp (from the notes) Insurance exp. Debits edits 31-Dec 3. Calculate depreciation expense for the building (transaction 1) Den. Exp Debits edits 31-Dec 4. Calculate the accrued interest expense (transaction 17) Interest exp. Debits edits 31-Dec 4. Calculate the accrued interest expense (transaction 17) Interest exp. Debits edits 31-Dec 5. Calculate the deferred rent exp (transaction 18) Rent exp. Debits edits 31-Dec 6. Calculate the deferred rent revenue (transaction 21) Rent revenue Debits edits 31-Dec 2019 Debit Credit 1 1-Jan 585,873 See the first JEI prepared and follow Account Titles Building Cash Notes Payable Wages & Salaries Payable 130,194 455,679 2 3-Jan 75,000 Cash 75,000 3 8-Jan Cash 107,500 Sales Revenue 107,500 Cost of goods sold 26,039 26,039 4 12-Jan Inventory Income tax payable Cash 45,000 45,000 5 13-Jan 130,194 Cash Accounts Receivable 130,194 6 15-Jan Cash 390,582 Common shares 390,582 7 16-Jan 273,407 273,407 Inventory Accounts Payable Accounts Payable Inventory 8 21-Jan 13,019 13,019 9 28-Jan Accounts Payable 10 31-Jan 6,510 6,510 Utility Expense Cash Salaries & wages exp. Cash 11 31-Jan 10,416 10,416 12 2-Feb Accounts Receivable 156,233 11 31-Jan 10,416 Salaries & wages exp. Cash 10,416 12 2-Feb 156,233 156,233 104,155 104,155 13 12-Feb Accounts Receivable Sales Revenue Cost of goods sold Inventory Accounts Receivable Sales Revenue Cost of goods sold Inventory Cash 78,116 78,116 52,078 52,078 14 1-Mar 78,116 Accounts Receivable 78,116 15 1-Apr Rent expense 3,906 Cash 3,906 16 15-Apr 260,388 Inventory Cash 260,388 17 1-May Cash 130,194 130,194 Notes Payable Pre Paid Rent 18 1-Aug 15,623 15,623 Cash Maintenance exp. 19 31-Aug 6,510 6,510 20 1-Sep Cash Salaries & wages exp. Cash 19,529 19,529 21 30-Sep Cash 31,247 Rent revenue 31,247 22 21-Oct Accounts Receivable 260,388 Sales Revenue 260,388 130,194 130,194 23 1-Nov Cost of goods sold Inventory Cash Accounts Receivable Accounts Receivable 65,097 65,097 24 8-Nov 273,407 Sales Revenue 273,407 22 21-Oct 21-Oct Accounts Receivable 260,388 Sales Revenue 260,388 130,194 Cost of goods sold Inventory 130,194 23 1-Nov Cash 65,097 Accounts Receivable 65,097 24 8-Nov 273,407 273,407 130,194 Accounts Receivable Sales Revenue Cost of goods sold Inventory Cash Accounts Receivable 130,194 25 14-Nov 267,939 273,407 Discount Exp 5,468 26 31-Dec 10,000 Income tax exp. Cash 10,000 Dec 31, the note payable and the interest need to be calculated and paid Can be done here or in Adj. JE sheet Interest expense = 23,539 A 31-Dec Notes Payable 585,873 23,539 Interest expense Cash 609,412 The following transaction are the only transaction for ACCT 1115 co. during 2019: 1 2 3 4 5 6 7 8 9 10 11 12 13 Jan I purchased new building for 585,873 they paid 130,194 cash and they sign 12 note payable for the balance. The note carry interest of The note principle due with the interest on Dec 31, 2019. The building expected useful life 25 years, residual (salvage) value amount of 65,097 ACCT 1115 uses straight line as their method of depreciation. Jan 3, all wages payable from 2018 paid cash Jan 8, they deliver merchandise to customer amount of 107,500 cost of these products are 26,039 Previously ACCT 1115 received cash amount of 107,500 from customer and record it in Dec 18, 2018 in account (Unearned sales revenue) Jan 12, all income taxes owed from last year are paid cash Jan 13, collect from customers 130,194 cash Jan 15, issued common shares for 390,582 cash Jan 16 purchased merchandise for 273,407 from ABC Co., term 3/20, 1/45, FOB destination, 3% discount if paid in 20 days Jan 21 returned merchandise to ABC co amount of 13,019 Jan 28 paid the amounts owed to ABC CO. Jan 31 paid utilities 6,510 cash Pan 31 paid salaries 10,416 cash Feb 2 sold merchandise of 156,233 cost of those goods was. 104,155 ACCT 1115 used perpetual inventory system Feb 12 sold merchandise of 78,116 to XYZ co., term 2/10, 1/30. FOB shipping point. cost of those goods was 52,078 2% discount if received in 10 days March 1, XYZ paid their account in full Apr 1 paid rent for the months Jan-Mar amount of 3,906 Apr 15, purchased merchandise for cash 260,388 May I borrow from a local bank 130,194 by signing a 12% 12 note payable Aug 1, they paid for one-year rent amount of 15,623 Aug 31, paid cash for maintenance and cleaning the building 6,510 Sep 1, paid in salaries 19,529 Sep 30, they rent part of their building to a local business and collect one year rent in advance amount of 31,247 for 12 months Oct 21 sold merchandise on account for 260,388 to BC ltd., cost of those goods was 130,194 Nov 1, Bc Itd., paid 65,097 cash on their account Nov 8 sold merchandise to SK co., for 273,407 term 2/10, 1/30. FOB shipping point, Cost of those goods was 182,272 2% discount if received in 10 days Nov 14, SK paid their account in full Dec 31, paid income taxes amount of 10,000 14 15 16 17 18 19 20 21 22 23 24 25 26 ACCT 1115 Co. Comparitive statement of Financial Position December 31, 2018 and 2017 Account 2018 2017 Sales Revenue 713,000 620,000 Sales discount 713,000 471,500 241,500 620,000 410,000 210,000 17,250 15,000 10,000 11,500 5,750 5,000 Net slaes Cost of goods sold Gross Profit Operating exp: Salaries & wages exp. Rent expense Utility Expense Maintenance exp. Dep. Expense (equip. & Build) Bad debt exp Insurance exp Total operating exp. Operating income Other revenues and expenses: 57,500 4,025 50,000 3,500 12,000 95,500 13,800 109,825 131,675 114,500 Rent revenue Interest exp. 30,000 84,500 Income before tax 34,500 97,175 45,000 52,175 Income tax exp. 42,000 42,500 Net Income ACCT 1115 Co. Comparitive statement of Financial Position December 31, 2018 and 2017 Account 2018 2017 Current Assets: Cash Accounts Receivable 100,000 200,000 185,000 24,000 509,000 50,000 100,000 125,000 36,000 Inventory Prepaid Insurance Total current assets Long term Investments Equipment Accumulated depreciation-Equipment Total Assets 250,000 500,000 (150,000) 1,109,000.00 311,000 80,000 500,000 (100,000) 791,000.00 160,000 60,000 10,000 42,000 Liabilities and sharholders equity Accounts Payable Wages & Salaries Payable Unearned Sales Revenue Income tax payable Total current liabilities Bonds payable Total Liabilities Common shares Retained earnings Total Liabilities and sharholders equity 75,000 107,500 45,000 387,500 350,000 737,500 100,000 271,500 1,109,000.00 112,000 350,000 462,000 100,000 229,000 791,000.00 P 500,000 10 396 Notes (assumptions): A. ACCT 1115 using perpetual inventory system B. Equipment on their SFP purchased on 2016 for $500,000 with $0 residual value, depreciated straight line over 10 year estimated useful life. C. They use aging accounts receivables method to estimate any bad debt expenses. They estimated 3% of outstanding net Accounts Receivables t year yean sales at year will not be collected D. Prepaid insurance was paid on Jan 1,2017 to cover 3 years insurance E. No accruals/deferrals other than the ones found in the above transactions. Required: Following the excel sheet template Prepare: Round your answers to nearst $1 dollar. This is not apply on the ratios 1. All JE for the above transactions, considering the notes/ assumptions above 2. Post all the transactions into the general ledger GL ("T" accounts) 3. Prepare the unadjusted trial balance before any adjustments 4. Prepare all the required adjustments (deferrals and accruals) if any, and update the GL 5. Prepare the adjusted trial balance after you made all the adjustments 6. Prepare the following financial statements Statement of Income Statement of changes in equity Statement of Financial position 7. Prepare the following financial ratios (the list on excel file). Round ratios to 2 digits. Write a memo to your client ACCT 1115 to communicate your findings by explaining the ratios, their results and any suggestions for improvements if needed. (Memo one to two pages maximum) a. b. c. 8. Some of the transactions require adjustments, like depreciation. Prepare all the necessary adjusting JE, and post it to the GL Note: you can bring the GL for those accounts require adjustments into this sheet, then update it. Or follow my template 1. Calculate the depreciation for equipment (from the notes) Dep. Exp= 50,000.0 Debits edits 31-Dec Dep, Exp. 50,000 C. Dep. 50,000 2. Calculate bad debt expense, its 3% of the net credit sales (from the notes) Bad debt expense - Debits edits 31-Dec 5. Calculate the deferred insurance exp (from the notes) Insurance exp. Debits edits 31-Dec 3. Calculate depreciation expense for the building (transaction 1) Den. Exp Debits edits 31-Dec 4. Calculate the accrued interest expense (transaction 17) Interest exp. Debits edits 31-Dec 4. Calculate the accrued interest expense (transaction 17) Interest exp. Debits edits 31-Dec 5. Calculate the deferred rent exp (transaction 18) Rent exp. Debits edits 31-Dec 6. Calculate the deferred rent revenue (transaction 21) Rent revenue Debits edits 31-Dec