. Sprint 3:40 PM OCC Spring 2021 162-02 - Adm... Processing Transactions in the Accounting Cycle: You are the Accountant for Master Flow, LLC, a Sole Proprietor Plumbing Supply Merchandising Company owned by Scott Blout. The Company started operations on 10-1-2020. The Company operates on a calendar year basis and will use the accrual method of accounting Provided below is a listing of all transactions for the company for its initial Quarter of operation. Please complete the required tasks as outlined below: Required: 1. Build a Chart of Accounts. 2. Prepare all General Journal entries for the activity for the initial Quarter 3. Post all General Journal entries to the General Ledger 4. Prepare a Trial Balance as of 12-31-20. 5. Prepare any Adjusting Entries required prior to the Year- end Close at 12-31-2020. Subsequently post all Adjusting Entries to the General Journal and the General Ledger 6. Prepare and Adjusted Trail Balance. 7. Post all Closing Entries to the General Journal and the General Ledger to end the company's fiscal year on 12-31- 2020. 8. Prepare a Post Closing Trail Balance 9. Prepare an Income Statement. 10. Prepare a Classified Balance Sheet Fact Set: 10-1-20 Scott Blout invested $100,000 Cash to start Master Flow Plumbing Supply, LLC. 10-1-20 Master Flow rented a Warehouse with a Retail Store Front. No security deposit was required. Scott paid October's 11 month rent of $2,000, writing the first check drawn on the new business' bank account. The lease is a 12 month lease at $2,000/month. 10-1-20 Master Flow purchased Storage Racks for the Warehouse for $5,000. Scott used a business check for this purchase. These racks are expected to benefit the Company for several years. The will have a useful life for accounting purposes of 5 Years and will have no salvage value. Scott has directed you to use the Dashboard Calendar To Do Notifications Inbox . Sprint 3:40 PM OCC Spring 2021 162-02 - Adm... 10-1-20 Master Flow purchased Storage Racks for the Warehouse for $5.000. Scott used a business check for this purchase. These racks are expected to benefit the Company for several years. The will have a useful life for accounting purposes of 5 Years and will have no salvage value. Scott has directed you to use the Straight Line Method of Depreciation for all of the Capital Assets for the Company, 10-3-20 Master Flow bought a 2- Hand Computer and Printer for $200, paying with a business check. You have established an Accounting Policy for the Company that states any equipment purchases valued at less than $250 will not be capitalized. 10-3-20 Master Flow purchased 500 Units @ $100/Unit in plumbing fixtures from Kohler, Inc. to establish the Company's initial merchandise inventory. The Company opened a trade account with Kohler with a $60,000 Credit Limit. The terms of all purchases with this vendor are 2/10, N60. You talk to Scott about the Inventory accounting and valuation methods to use. You agree to use the Perpetual Inventory Method with LIFO. 10-4-20 Master Flow had some marketing brochures printed at a cost of $200, paying with a company check. 10-8-20 Master Flow hired Ring Social Media Company to build Master Flow's Web Site for $3,000 and paid a $1,000 initial payment up front and opened a $2,000 trade account with Ring. Final payment will be due upon completion of the Web Site 10-15-20 Master Flow, LLC made it first sale of Plumbing Fixtures from inventory to Shore HVAC. They sold 25 units at S200/Unit. Shore HVAC paid at the counter with a check. 11-1-20 Master Flow purchased general hability with an annual premium of $1,200, paying with a company check. The Policy period is for 11-1-20 to 10-31-21. Dashboard Calendar To Do Notifications Inbox . Sprint 3:40 PM OCC Spring 2021 162-02 - Adm... 11-1-20 Scott Blout withdrew $4,000 cash from the Business 11-1-20 Master Flow paid November's rent for the Warehouse / Retail Store Front Facility. 11-7-20 Master Flow paid JCP&L for the October Electric Bill writing a check for $88. 11-9-20 Master Flow, LLC sold 100 Units of Plumbing Fixtures to Craftsman Custom Builders at $200 /Unit. Master Flow opened a Trade Account for Craftsman. The terms are 2/10, N30. You do some research with the local industry trade group. Uncollectible accounts typically run a 2% of receivables for the Industry. You discuss this with Scott and you agree to establish an allowance using this guidance. 11-11-20 Master Flow made a payment on its Trade Account with Kohler, for the full Balance 11-15-20 Master flow makes a cash sale of 10 Units of plumbing fixtures to "The Plumbing Guys" Contractors for $250 Unit. There was an extra markup. due to the small size of the order. 11-18-20 Master Flow receives payment in full on the Craftsman's Trade account. 12-1-20 Seeing that the business is getting some traction, but could benefit from more Capital, Scott Blout invests another $30,000 of his personal money into the Business 12-1-20 Master Flow paid December's rent for the Warehouse / Retail Store Front Facility. 12-1-20 Master Flow purchased a specialized pipe bending machine for the Warehouse. The machine has a purchase price of $8,000. It will cost $300 to have it delivered; S500 to have it setup and it requires a custom platform that will cost $1,000. The machine Dashboard Calendar To Do Notifications Inbox . Sprint 3:40 PM OCC Spring 2021 162-02 - Adm... custom platform that will cost $1.000. The machine uses disposable grommets. Scott purchases an initial lot of $200 pieces of the disposable grommets for $200. The Manufacturer for the Machine is providing $10,000, 90 Day financing at a 10% interest rate for the purchase. 12-4-20 The Final Web Site is delivered and goes live and Master Flow pays the balance due of $2,000 to Ring Social Media 12-8-20 Master Flow buys 80 Units of plumbing fixtures from Standard Plumbing Supply for Inventory at $125 Unit, paying with a company check. 12-15-20 Master Flow, LLC sells 40 Units of Plumbing Fixtures from inventory to Shore HVAC at $225/ Unit. Shore pays at the counter with their check. 12-21-20 Master Flow's first employee, Emma Stone starts at the Company. She will be responsible for Warehouse Management. She will be paid $20 / Hour. Emma works 30 Hours / Pay Period (every two weeks). The pay period ends on 12-31-20. Emma's Federal Tax Withholding is $50, based on her W4, and all other standard payroll taxes apply at their appropriate rates. She does not receive benefits and does not have any contributions of any type withheld from her pay. 12-31-20 Master Flow has received, but not paid the JCP&L bill for November and December 2020 Electric in the aggregate amount of $150. 12-31-20 Sitting on Scott's desk is a 4* Quarter 2020 Water bill for Master Flow's facility in the amount of $300, which has not been paid. 12-31-20 Scott Blout takes a year end distribution form the Business of $5,000. 12-31-20 In preparing for the year-end close, you determine that depreciation and prepaid amortization for the Dashboard Calendar To Do Notifications Inbox . Sprint 3:40 PM OCC Spring 2021 162-02 - Adm... Processing Transactions in the Accounting Cycle: You are the Accountant for Master Flow, LLC, a Sole Proprietor Plumbing Supply Merchandising Company owned by Scott Blout. The Company started operations on 10-1-2020. The Company operates on a calendar year basis and will use the accrual method of accounting Provided below is a listing of all transactions for the company for its initial Quarter of operation. Please complete the required tasks as outlined below: Required: 1. Build a Chart of Accounts. 2. Prepare all General Journal entries for the activity for the initial Quarter 3. Post all General Journal entries to the General Ledger 4. Prepare a Trial Balance as of 12-31-20. 5. Prepare any Adjusting Entries required prior to the Year- end Close at 12-31-2020. Subsequently post all Adjusting Entries to the General Journal and the General Ledger 6. Prepare and Adjusted Trail Balance. 7. Post all Closing Entries to the General Journal and the General Ledger to end the company's fiscal year on 12-31- 2020. 8. Prepare a Post Closing Trail Balance 9. Prepare an Income Statement. 10. Prepare a Classified Balance Sheet Fact Set: 10-1-20 Scott Blout invested $100,000 Cash to start Master Flow Plumbing Supply, LLC. 10-1-20 Master Flow rented a Warehouse with a Retail Store Front. No security deposit was required. Scott paid October's 11 month rent of $2,000, writing the first check drawn on the new business' bank account. The lease is a 12 month lease at $2,000/month. 10-1-20 Master Flow purchased Storage Racks for the Warehouse for $5,000. Scott used a business check for this purchase. These racks are expected to benefit the Company for several years. The will have a useful life for accounting purposes of 5 Years and will have no salvage value. Scott has directed you to use the Dashboard Calendar To Do Notifications Inbox . Sprint 3:40 PM OCC Spring 2021 162-02 - Adm... 10-1-20 Master Flow purchased Storage Racks for the Warehouse for $5.000. Scott used a business check for this purchase. These racks are expected to benefit the Company for several years. The will have a useful life for accounting purposes of 5 Years and will have no salvage value. Scott has directed you to use the Straight Line Method of Depreciation for all of the Capital Assets for the Company, 10-3-20 Master Flow bought a 2- Hand Computer and Printer for $200, paying with a business check. You have established an Accounting Policy for the Company that states any equipment purchases valued at less than $250 will not be capitalized. 10-3-20 Master Flow purchased 500 Units @ $100/Unit in plumbing fixtures from Kohler, Inc. to establish the Company's initial merchandise inventory. The Company opened a trade account with Kohler with a $60,000 Credit Limit. The terms of all purchases with this vendor are 2/10, N60. You talk to Scott about the Inventory accounting and valuation methods to use. You agree to use the Perpetual Inventory Method with LIFO. 10-4-20 Master Flow had some marketing brochures printed at a cost of $200, paying with a company check. 10-8-20 Master Flow hired Ring Social Media Company to build Master Flow's Web Site for $3,000 and paid a $1,000 initial payment up front and opened a $2,000 trade account with Ring. Final payment will be due upon completion of the Web Site 10-15-20 Master Flow, LLC made it first sale of Plumbing Fixtures from inventory to Shore HVAC. They sold 25 units at S200/Unit. Shore HVAC paid at the counter with a check. 11-1-20 Master Flow purchased general hability with an annual premium of $1,200, paying with a company check. The Policy period is for 11-1-20 to 10-31-21. Dashboard Calendar To Do Notifications Inbox . Sprint 3:40 PM OCC Spring 2021 162-02 - Adm... 11-1-20 Scott Blout withdrew $4,000 cash from the Business 11-1-20 Master Flow paid November's rent for the Warehouse / Retail Store Front Facility. 11-7-20 Master Flow paid JCP&L for the October Electric Bill writing a check for $88. 11-9-20 Master Flow, LLC sold 100 Units of Plumbing Fixtures to Craftsman Custom Builders at $200 /Unit. Master Flow opened a Trade Account for Craftsman. The terms are 2/10, N30. You do some research with the local industry trade group. Uncollectible accounts typically run a 2% of receivables for the Industry. You discuss this with Scott and you agree to establish an allowance using this guidance. 11-11-20 Master Flow made a payment on its Trade Account with Kohler, for the full Balance 11-15-20 Master flow makes a cash sale of 10 Units of plumbing fixtures to "The Plumbing Guys" Contractors for $250 Unit. There was an extra markup. due to the small size of the order. 11-18-20 Master Flow receives payment in full on the Craftsman's Trade account. 12-1-20 Seeing that the business is getting some traction, but could benefit from more Capital, Scott Blout invests another $30,000 of his personal money into the Business 12-1-20 Master Flow paid December's rent for the Warehouse / Retail Store Front Facility. 12-1-20 Master Flow purchased a specialized pipe bending machine for the Warehouse. The machine has a purchase price of $8,000. It will cost $300 to have it delivered; S500 to have it setup and it requires a custom platform that will cost $1,000. The machine Dashboard Calendar To Do Notifications Inbox . Sprint 3:40 PM OCC Spring 2021 162-02 - Adm... custom platform that will cost $1.000. The machine uses disposable grommets. Scott purchases an initial lot of $200 pieces of the disposable grommets for $200. The Manufacturer for the Machine is providing $10,000, 90 Day financing at a 10% interest rate for the purchase. 12-4-20 The Final Web Site is delivered and goes live and Master Flow pays the balance due of $2,000 to Ring Social Media 12-8-20 Master Flow buys 80 Units of plumbing fixtures from Standard Plumbing Supply for Inventory at $125 Unit, paying with a company check. 12-15-20 Master Flow, LLC sells 40 Units of Plumbing Fixtures from inventory to Shore HVAC at $225/ Unit. Shore pays at the counter with their check. 12-21-20 Master Flow's first employee, Emma Stone starts at the Company. She will be responsible for Warehouse Management. She will be paid $20 / Hour. Emma works 30 Hours / Pay Period (every two weeks). The pay period ends on 12-31-20. Emma's Federal Tax Withholding is $50, based on her W4, and all other standard payroll taxes apply at their appropriate rates. She does not receive benefits and does not have any contributions of any type withheld from her pay. 12-31-20 Master Flow has received, but not paid the JCP&L bill for November and December 2020 Electric in the aggregate amount of $150. 12-31-20 Sitting on Scott's desk is a 4* Quarter 2020 Water bill for Master Flow's facility in the amount of $300, which has not been paid. 12-31-20 Scott Blout takes a year end distribution form the Business of $5,000. 12-31-20 In preparing for the year-end close, you determine that depreciation and prepaid amortization for the Dashboard Calendar To Do Notifications Inbox