Statement of Cash Flows T-Account Worksheet Require me nt (e) e the fornal statement to show activity within the cash account. On this statement, debits to cash comespond to increases and credis correspond to AVD-EquipmentC Common stock ($1 par) 10,000 140,000 Accounts receivable Accounts payable Pref,stock ($100 par) 44,070 94,750 Lllow, for doubtful acct 2,000 PICEP- CS Inte rest payable 190,000 Invento 75 Unearne d revenue PICEP PS Bonds payable Retained ea Prepaid insurance 77,610 Treasury stock Pre mium on B/P 360,00 9 0 8 Jamukha Corporation Statement of Cash Flows: Requirement (e) For the Year Ended December 31, 2018 CASH FROM OPERATINGACTIVITIES Increases Decreases Net Cash From Operating Activities CAS1FROMINVEST NGACTIVITIES Net Cash From Investing Activities Net Cash From Financing Activities NET INCREASE IN CASH Cash at beginning of year Cash at end of year 888A 2 3 4 5 Jamukha Corporatios Fer the Year Ended December 31, 2018 Balance Ueadjusterd Trial Balance Retained Statemen Sheet Adjus tine nts Trial Balance Stale mest Account Title | DR CRI DR CR. DR CR DR CR DR- CR DR CR Net loss Ending retained carnings 9 8 7 General Ledger: Requirement (b) continued BALANCE 10,000 10,000 CR COMMON STOCK (SI PAR) CR DR PREFERRED STOCK($100 PA R) DR CR BALANCE PAID-IN CAPITAL IN EXCESS OF PAR CR BALANCE OMMON STOCK 190,000 CR PAID-IN CAPITAL IN EXCESS OF PAR PREFERRED STOCK BALANCE DR CR TREASURY STOCK CR BALANCE BALANCE RETAINED EARNI NGS DR CRBALANCE LES REVENUE COST OF GOODS SOLID DR CR BALANCE CR BALANCE CR BALANCE DRCR BALANCE CR BALANCE GENERAL EXPENSEs DR SAL ARIES EXPENSE DR PAYROLL TAX EXPENS DR OSS ON DISPOSA 3 2 5 General Ledger: Requirement (b) continued CR BALANCE ACCOUNTS PAYABLE DR 94,75094,750 CR Beginning CR BALANCE DR SALARIES PAYABLE BALANCE DR SALES TAX PAYABLE BALANCE CR DR FICA PAYABLE BAL ANCE CR DR FIT PAYABLE BALANCE CR SIT PAYABLE BALANCE FUTA PAYABLE BALANCE CR DR SUTA PAYABLE BALANCE DR CR UNEARNED REVENUE CR BALANCE DR BONDS PAYABLE BALANCE CR DR PREMIUM ON BONDS PAYABLE 4) 0 9 General Ledger: Requirement (b) CR BALANCE 850 DR DR ASH 27,850 DRCR BALANCE 4,070 DR ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS DR CR BALANCE 2,000 CR CR -BALANCE 75,000 DR INVENTORY Beginning CR BALANCE DR PREPAID INSURANCE 7.440 DR CR BALANCE 360,000 DR EQUIPMENT Beginning DR ACCUM DEPRECIATION-FOUIPMENT Beginning DR CR BALANCE ,000 CR 888 A 2 3 5 4 EXTRA CREDIT 111 SOLUTION Journal: Requirement (a) Name General Journal Debit Credit a. 7 a.9 a. 10 a. 13 a.14 delete 0 9 8 10. Issued 1,400 shares of $ 100 par, 7% preferred stock for S21 5,000 cash. 11. Purchased equipment on July 1, 2018, for $180,000 cash. 12. Purchased 750 shares of Jamukha Corp.common stock from a disgruntled sharcholder for $37 per share 13. Recorded salaries and payroll taxes. Employee's gross salaries were $120,000. FICA tax was withheld at a rate of 7.65% Federal income taxes (FIT) of$8,000 were withheld, and state income taxes (SIT) of 54,000 were withheld. The federal unermployment tax (FUTA) rate was i% and the state unemployment tax (SUTA) rate was 3.25%. No cash has been paid yet, so record all the amounts due in the appropriate payable accounts 14, The paychecks and payroll taxes from entry #13 wore paid. 15. Straight-line depreciation with an 8 year useful life and no salvage value is used for equipment purchased in previous years. The equipment purchased on July 1, 2018 (.11 ) s depreciated using double declining balance with a useful life of 20 years and a $30,000 salvage value. (Hint: The equipment was purchased midway through the year.) 16. Accruc bond interest payable and amortize bond discount/premium. Jamukha Corp, uses effective-interest amortization. (Hint The bond was issued midway through the year.) 17. The prepaid insurance relates to a policy purchased on December 31, 2017. This insurance expires at a rate of $310 per month. Record as a general expense. 18. Jamukha estimates that accounts receivable are uncollectible. 19. Jamukha Corp. is an S-corporation and is not subject to income tax REQUIRED: Print out the solution pages for the general journal, ledger, and worksheet that follow and enter 6.5% of the following transactions. I suggest that you use a pencil a. Enter the transactions numbered 1-14 in the general journal provided on the following pages b. Post the journal entries to the ledger accounts for items 1-14. Look at the cash account for an example of how to use the running balance ledger. I have completed the first two lines of it for you. It is a good idea to keep track of whether your balance column is a debit or a credit, particularly for contra accounts. Prepare an unadjusted trial balance at December 31, 2018 and enter on the worksheet. c. d. Worksheet requirement: Using your unadjusted trial balance (c) above and the data for adjusting entries (#15-19) prepare a 12-column worksheet similar to worksheet for Sierra Corporation in Chapter 4 and the prior extra credit assignments. You will not receive any credit if the worksheet is incomplete. To save time, you are not roquired to formailly journalize or post your adjusting entries (you can just enter them on the workshect). You are not roquired to record closing entries e. Prepare a formal statement of cash flows using the T-account approach. Templates for the statement and the T-account worksheet are attached. (You are not required to formally present the other statements- just complete them on the worksheet) 2 3 4 5 6 Name TA: BUS ADM 201 Introduction to Financial Accounting Spring 2019 Dise W: EXTRA CREDIT III Due at 11:59pm on Saturday, May 11 GRADING: Worth up to 15 points. Carefully READ the requirements on page 2 first. Partially completed problems will earn no credit that means all requirements must be FULLY completed. All work must be completed by hand. If you complete all items as requested, you will earn at least 7.5 points. The remaining are dependent upon the accuracy of your answers, Round amounts to the nearest dollar, if applicable Jamukha Corporation prepares annual financial statements. The balance sheet at December 31, 2017, is presented below Jamukha Corporation Balance Sheet December 31, 2017 Assets Cash Accounts receivablk Alowance or doubtiul accounts 27,850 44,070 Accounts payable Common stock (SI par) 94,750 10,000 2,000) Paid-in capital in excess of par-Common stock 190,000 5,000 Retained eamings 7.440 77,610 Prepaid insurance AD-Equipment (140,000) 372,360 372,360 During 2018 the following transactions occurred 1. Purchased $141,000 inventory on account. Jamukha Corp uses a perpetual inventory system. 2. Sales of$325,000, plus 56% sales tax, were made to customers on account. Cost of goods sold was 3. Received $36,000 cash down payment for orders that will be shipped next year 4. Issued 20 year, S65,000 face value, 4% bonds on July 1 at 103. The bonds were sold to yield an effective $175,000. The company uses a perpetual inventory system annual rate of 3.784784%, and they pay interest every January 1 and July 1. 5. Collected $306,000 on account. 6. Paid general expenses of $35,750 7 Paid $210,000 for amount due to supplier 8. Paid the sales tax collected from customers to the State of Wisconsin. 9. On January 1, Jamukha Corp. sold for $24,000 cash equipment which originally cost $103,000. Accumulated depreciation for this equipment as of December 31, 2017, was $77,000. This transaction is exempt from sales tax ps 9 8 5 7 Statement of Cash Flows T-Account Worksheet Require me nt (e) e the fornal statement to show activity within the cash account. On this statement, debits to cash comespond to increases and credis correspond to AVD-EquipmentC Common stock ($1 par) 10,000 140,000 Accounts receivable Accounts payable Pref,stock ($100 par) 44,070 94,750 Lllow, for doubtful acct 2,000 PICEP- CS Inte rest payable 190,000 Invento 75 Unearne d revenue PICEP PS Bonds payable Retained ea Prepaid insurance 77,610 Treasury stock Pre mium on B/P 360,00 9 0 8 Jamukha Corporation Statement of Cash Flows: Requirement (e) For the Year Ended December 31, 2018 CASH FROM OPERATINGACTIVITIES Increases Decreases Net Cash From Operating Activities CAS1FROMINVEST NGACTIVITIES Net Cash From Investing Activities Net Cash From Financing Activities NET INCREASE IN CASH Cash at beginning of year Cash at end of year 888A 2 3 4 5 Jamukha Corporatios Fer the Year Ended December 31, 2018 Balance Ueadjusterd Trial Balance Retained Statemen Sheet Adjus tine nts Trial Balance Stale mest Account Title | DR CRI DR CR. DR CR DR CR DR- CR DR CR Net loss Ending retained carnings 9 8 7 General Ledger: Requirement (b) continued BALANCE 10,000 10,000 CR COMMON STOCK (SI PAR) CR DR PREFERRED STOCK($100 PA R) DR CR BALANCE PAID-IN CAPITAL IN EXCESS OF PAR CR BALANCE OMMON STOCK 190,000 CR PAID-IN CAPITAL IN EXCESS OF PAR PREFERRED STOCK BALANCE DR CR TREASURY STOCK CR BALANCE BALANCE RETAINED EARNI NGS DR CRBALANCE LES REVENUE COST OF GOODS SOLID DR CR BALANCE CR BALANCE CR BALANCE DRCR BALANCE CR BALANCE GENERAL EXPENSEs DR SAL ARIES EXPENSE DR PAYROLL TAX EXPENS DR OSS ON DISPOSA 3 2 5 General Ledger: Requirement (b) continued CR BALANCE ACCOUNTS PAYABLE DR 94,75094,750 CR Beginning CR BALANCE DR SALARIES PAYABLE BALANCE DR SALES TAX PAYABLE BALANCE CR DR FICA PAYABLE BAL ANCE CR DR FIT PAYABLE BALANCE CR SIT PAYABLE BALANCE FUTA PAYABLE BALANCE CR DR SUTA PAYABLE BALANCE DR CR UNEARNED REVENUE CR BALANCE DR BONDS PAYABLE BALANCE CR DR PREMIUM ON BONDS PAYABLE 4) 0 9 General Ledger: Requirement (b) CR BALANCE 850 DR DR ASH 27,850 DRCR BALANCE 4,070 DR ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS DR CR BALANCE 2,000 CR CR -BALANCE 75,000 DR INVENTORY Beginning CR BALANCE DR PREPAID INSURANCE 7.440 DR CR BALANCE 360,000 DR EQUIPMENT Beginning DR ACCUM DEPRECIATION-FOUIPMENT Beginning DR CR BALANCE ,000 CR 888 A 2 3 5 4 EXTRA CREDIT 111 SOLUTION Journal: Requirement (a) Name General Journal Debit Credit a. 7 a.9 a. 10 a. 13 a.14 delete 0 9 8 10. Issued 1,400 shares of $ 100 par, 7% preferred stock for S21 5,000 cash. 11. Purchased equipment on July 1, 2018, for $180,000 cash. 12. Purchased 750 shares of Jamukha Corp.common stock from a disgruntled sharcholder for $37 per share 13. Recorded salaries and payroll taxes. Employee's gross salaries were $120,000. FICA tax was withheld at a rate of 7.65% Federal income taxes (FIT) of$8,000 were withheld, and state income taxes (SIT) of 54,000 were withheld. The federal unermployment tax (FUTA) rate was i% and the state unemployment tax (SUTA) rate was 3.25%. No cash has been paid yet, so record all the amounts due in the appropriate payable accounts 14, The paychecks and payroll taxes from entry #13 wore paid. 15. Straight-line depreciation with an 8 year useful life and no salvage value is used for equipment purchased in previous years. The equipment purchased on July 1, 2018 (.11 ) s depreciated using double declining balance with a useful life of 20 years and a $30,000 salvage value. (Hint: The equipment was purchased midway through the year.) 16. Accruc bond interest payable and amortize bond discount/premium. Jamukha Corp, uses effective-interest amortization. (Hint The bond was issued midway through the year.) 17. The prepaid insurance relates to a policy purchased on December 31, 2017. This insurance expires at a rate of $310 per month. Record as a general expense. 18. Jamukha estimates that accounts receivable are uncollectible. 19. Jamukha Corp. is an S-corporation and is not subject to income tax REQUIRED: Print out the solution pages for the general journal, ledger, and worksheet that follow and enter 6.5% of the following transactions. I suggest that you use a pencil a. Enter the transactions numbered 1-14 in the general journal provided on the following pages b. Post the journal entries to the ledger accounts for items 1-14. Look at the cash account for an example of how to use the running balance ledger. I have completed the first two lines of it for you. It is a good idea to keep track of whether your balance column is a debit or a credit, particularly for contra accounts. Prepare an unadjusted trial balance at December 31, 2018 and enter on the worksheet. c. d. Worksheet requirement: Using your unadjusted trial balance (c) above and the data for adjusting entries (#15-19) prepare a 12-column worksheet similar to worksheet for Sierra Corporation in Chapter 4 and the prior extra credit assignments. You will not receive any credit if the worksheet is incomplete. To save time, you are not roquired to formailly journalize or post your adjusting entries (you can just enter them on the workshect). You are not roquired to record closing entries e. Prepare a formal statement of cash flows using the T-account approach. Templates for the statement and the T-account worksheet are attached. (You are not required to formally present the other statements- just complete them on the worksheet) 2 3 4 5 6 Name TA: BUS ADM 201 Introduction to Financial Accounting Spring 2019 Dise W: EXTRA CREDIT III Due at 11:59pm on Saturday, May 11 GRADING: Worth up to 15 points. Carefully READ the requirements on page 2 first. Partially completed problems will earn no credit that means all requirements must be FULLY completed. All work must be completed by hand. If you complete all items as requested, you will earn at least 7.5 points. The remaining are dependent upon the accuracy of your answers, Round amounts to the nearest dollar, if applicable Jamukha Corporation prepares annual financial statements. The balance sheet at December 31, 2017, is presented below Jamukha Corporation Balance Sheet December 31, 2017 Assets Cash Accounts receivablk Alowance or doubtiul accounts 27,850 44,070 Accounts payable Common stock (SI par) 94,750 10,000 2,000) Paid-in capital in excess of par-Common stock 190,000 5,000 Retained eamings 7.440 77,610 Prepaid insurance AD-Equipment (140,000) 372,360 372,360 During 2018 the following transactions occurred 1. Purchased $141,000 inventory on account. Jamukha Corp uses a perpetual inventory system. 2. Sales of$325,000, plus 56% sales tax, were made to customers on account. Cost of goods sold was 3. Received $36,000 cash down payment for orders that will be shipped next year 4. Issued 20 year, S65,000 face value, 4% bonds on July 1 at 103. The bonds were sold to yield an effective $175,000. The company uses a perpetual inventory system annual rate of 3.784784%, and they pay interest every January 1 and July 1. 5. Collected $306,000 on account. 6. Paid general expenses of $35,750 7 Paid $210,000 for amount due to supplier 8. Paid the sales tax collected from customers to the State of Wisconsin. 9. On January 1, Jamukha Corp. sold for $24,000 cash equipment which originally cost $103,000. Accumulated depreciation for this equipment as of December 31, 2017, was $77,000. This transaction is exempt from sales tax ps 9 8 5 7