TB
Q1
Q2
Q3
1. In Ql of "HW5", prepare adjusting journal entries for each transaction (based on the transactions information and additional information on the next page). First click on the cells highlighted in yellow, then use the drop-down menu to select the account name (see picture). Once you select the correct account, you will see "correct",otherwise you will see "try again" .Then enter the S amount in gray cells. Again, once you enter the correct amount, you will see "correct", otherwise you will see "try again". cose Accet 2. In Q2, prepare the Adjusted trial balance based on the Trial Balance provided in Sheet "TB" and your answer in Ql TB Q1 Q2 Q3 | Invalid Make sure that you .List account names, then place the S amount on the correct side (debit or credit) . Your total debits should equal your total credits. 3. In Q3, prepare the Financial Statements based on your answer in Q2. WI we info Welcome to our little business-Pets' Choice Enterprises (PC), Inc., a wholesaler of pet food. Imagine that you are the CEO of PC. You also double as treasurer and Chief financial officer. You have just incorporated and invested $50,000 of your own money into the company. You are going to need much more capital to get into business, but these initial transactions will start up the business. Follow along.. we have a lot to do Transaction 1: 1/1/2018. Sell 150,000 shares of PC's common stock (SI par value) for $10 per share Transaction 2: 1/3/2018. Borrow $1 million loan from the bank. Interest on this 10-year loan is 5% per Transaction 3: 1/5/2018. Pay $1.5 million for land (1 million) and building (0.5 million). Set up a 20-year straight-line depreciation schedule for building. The estimated residual value of the building is 0.1 million. Transaction 4. 1/6/2018. Purchase 1-year liability insurance for $2,100, effective from 1/1/2018. Transaction 5. 1/7/2018. Purchase and receive $250,000 worth of inventory. Pay % down Transaction 6. 1/12/2018. Pay the remaining S125,000 due in TS. Transaction 7. 1/31/2018. Total cash sales during the month is $150,000. Transaction 8. 2/2/2018. Receive utility bill for January, totaling $1,850. Transaction 9. 2/6/2018. Take an order from customer for $24,000 of pet food. Transaction 10. 2/7/2018. Pay January utility bill. Transaction 11.2/8/2018. Ship and invoice customer for $24,000 of pet food ordered in T9 above Shipping fee is on customer. Transaction 12. 2/12/2018. Receive payment of $24,000 for shipment made in T11 Transaction 13. 2/15/2018. Pay salespersons' first month wages of $13,500 (three persons, S150 per day 30 days) Salespersons started their jobs on 1/16/2018. Transaction 14.2/28/2018. Receive and ship an order from customer for S36,000. Customer promises to pay the amount within 10 days. Shipping fee is paid by customer. Transaction 15. 2/28/2018. Total cash sales during the month is $168,000. Transaction 16. 3/3/2018. Receive and pay February utility bill of $1,900. Transaction 17.3/12/2018. Declare a S0.3 per share dividend and pay to common shareholders. Transaction 18. 3/15/2018. Pay salespersons' February wages of $12,600 (three persons, S150 per day, 28 days) Transaction 19.3/31/2018. Total cash sales during the month is $184,000. There is no credit sale during March. Additional information a. After a physical count, the ending inventory balance on hand is estimated to be $80,000 (The company adopts a periodic inventory system.) b. Estimated income taxes for the first quarter of 2018 is S9,600. c. Expected utility bill for march is $1700 Pet's Choice Trial Balance, 3/31/2018 Dr 7" Cash A/R Inventory Prepaid Insurance 1,234,050 36,000 250,000 2,100 1 .000.000 500,000 an Building A/P Salaries Payable Utilities Pavablee Notes Pavable Common Stock Additional Paid-in Sales Revenue COGS Salaries expense Utilities expense Cash dividend Total 0 0 0 1 .000.000 200,000 1,350,000 562,000 0 26100 3750 60000 3,112,000 3,112,000 Hints: 1. Recording Cost of Goods Sold. Calculate cost of goods sold based on "Purchased inventory (in Transaction 5) and "Ending inventory"(see Additional Info. ) Correct Choose Account Inventory Correct Choose Account 2 Recording deprec ation expense o the building or the first quarter. Calculate 3 months' depreciation expense based on in O in Transaction #3) ula: Choose Account Choose Account Cost-Salvage valuc) Depreciation per year Choose Account Choose Account years of useful life 3*. Recording interest expense or the first quarter (calculate 3 months' interest expense based on Transaction 42) Choose Account Choose Account Formula: Interest expense Choose Account Choose Account Principle "rate "fraction of year 4. Recording insuronce expense for the first quarter (Calculate 3 months' insurance expense based on Tra Choose Account Choose Account Choose Account Choose Account 5. Recording income tax expense for the first quarter (see Additional info.) Choose Account Choose Account Choose Account Choose Account 6. Recording salary expense for March (3 persons, 16 days, $150 per day) Choose Account Choose Account Choose Account Choose Account 7. Recording utility expense for March fsee Additional info. ) Choose Account Choose Account Choose Account Choose Account Pet's Choice Adjusted Trial Balance, 3/31/2018 Cash AR Inventory Prepaid Insurance Land Building Accumulated Depreciation A/P Interest payable Income tax payable Salaries Payable Utilities Payable Notes Payable Common Stock Additional Paid-in Sales Revenue COGS Income tax expense Insurance expense Depreciation expense Inerest expense Salaries expense Utilities expense Cash dividend Total Eets 'hote Sales Revenue COGS Gross Margin Operating Expenses Depreciation expense nsurance expense Salaries eHpense Utilities expense Other Enpenses interest expense Income before income takes Income tax expense Net income RIE, 1112018 Net income Cash dividend RIE, 313112018 Eets 'hote Lgat Assets Cash AIR Inventory Prepaid Insurance NonCurrent Assets Land Building less: Accumulated Depreciation Total Assets Current liabilities AIP Salaries Payable Interest payable Utilities Payable Income taxes payable NonCurrent Liabilities Notes Payable Stockholders Equity Retained Earnings Common Stock Additional Paid-in Total Liabilities and Stockholders Equity
