The following information pertains to Tracie's Flowers Inc., a corporation owned by Ms. Tracie Lyons. The company opened for business in 2009. Tracie's uses the cash basis of accounting during the year. Each year, at year end, the company's CPA, Amanda Paquette, converts the cash basis books to the accrual basis. The results of any adjustments made on 12/31/20 and any reversing entries made on 1/2/21 are reflected in the unadjusted trial balance below. Tracie's Flowers Unadjusted trial Balance December 31, 2020 Dr. Cr. Cash $225,600 249,000 Short term investments Accounts receivable 116,200 Allowance for doubtful accounts $20,000 Inventory 62,000 Furniture and Fixtures 218,200 Accumulated depreciation, Furniture & Fixtures 32,400 Accounts payable, 42,000 Notes payable 4%, due 3/31/21 200,000 Retained earnings 242,000 Sales 1,749,100 Cost of Goods Sold 921,600 Fencing expense 80,000 Salaries expense 262,000 Income tax expense 45,000 Interest expense 6,000 Insurance expense 34,100 Rent expense 34,200 Utilities expense 12,600 Freight out 17,000 Travel expense 14,000 TOTALS $2,291,500 $2,291,500 Ms. Lyons has developed plans to expand into the wholesale flower market and is in the process of negotiating a bank loan with Dedham Savings Bank to finance the expansion. The bank is requesting financial statements prepared on the accrual basis of accounting for 2020 from the company. the course of her review engagement, Amanda Paquette, CPA, obtained the following information: 1. Amounts due from customers totaled $175,000 at 12/31/2020. 2. In analyzing amounts due from customers at 12/31/2020, Paquette discovers that Tracie's has a $6,000 receivable more than 9 months overdue from Jim's Retail Store. Paquette discovers that Jim's filed for bankruptcy on 12/02/2020 and determines that it is highly unlikely that Tracie's will recover any of the $6,000 and that the amount should be written off. 3. A further analysis and aging of accounts 1receivable at 12/31/2020 shows approximately $18,000 of potential uncollectible accounts other than the Jim's Retail Store account. 4. On May 1, 2020, Tracie's paid $26,100 to renew its comprehensive insurance coverage for one year. The premium on the previous one year policy, which expired on April 30, 2020, was $24,000. The company made the appropriate adjusted entry on 12/31/2019, which was subsequently reversed on 1/2/2020.5. Tracie's installed new fencing around the perimeter of the property. The installation was completed on 6/28/2020 at a cost of $80,000. Tracie estimates the useful life of the fencing to be 20 years. Tracie uses straight-line depreciation. 6. The note payable was taken out on 4/1/2019. A proper accrual was made at 12/31/19 and the entry was reversed at 1/2/2020. All principal and interest are due at maturity. 7. On December 29, 2020, Tracie hired a new store manager with an annual salary of $60,000. His first day of work is Monday, January 7th, 2021. 8. All employees are paid bi-weekly on Thursday. The average payroll is $6,000 weekly for a 6-day workweek. Employees were last paid on 12/31/2020 for the week ended 12/26/2020. Tracie is giving all employees Christmas and the day after off, as a paid holiday. 9. Tracie's has made estimated tax payments of $15,000 per quarter for the first three quarters of 2018. Tracie's tax rate is 21% of pretax income. Required: a. Prepare a 10-column worksheet for Tracie's Flowers for the year ended December 31, 2020. b. Prepare a separate work paper showing your adjusting entries. Show any computations and provide explanations. c. Prepare accrual basis financial statements for 2020 (multiple-step income statement, classified balance sheet, and statement of retained earnings) in good form. A cash flow statement is not required. HELPPPP The following information pertains to Tracie's Flowers Inc., a corporation owned by Ms. Tracie Lyons. The company opened for business in 2009. Tracie's uses the cash basis of accounting during the year. Each year, at year end, the company's CPA, Amanda Paquette, converts the cash basis books to the accrual basis. The results of any adjustments made on 12/31/20 and any reversing entries made on 1/2/21 are reflected in the unadjusted trial balance below. Tracie's Flowers Unadjusted trial Balance December 31, 2020 Dr. Cr. Cash $225,600 249,000 Short term investments Accounts receivable 116,200 Allowance for doubtful accounts $20,000 Inventory 62,000 Furniture and Fixtures 218,200 Accumulated depreciation, Furniture & Fixtures 32,400 Accounts payable, 42,000 Notes payable 4%, due 3/31/21 200,000 Retained earnings 242,000 Sales 1,749,100 Cost of Goods Sold 921,600 Fencing expense 80,000 Salaries expense 262,000 Income tax expense 45,000 Interest expense 6,000 Insurance expense 34,100 Rent expense 34,200 Utilities expense 12,600 Freight out 17,000 Travel expense 14,000 TOTALS $2,291,500 $2,291,500 Ms. Lyons has developed plans to expand into the wholesale flower market and is in the process of negotiating a bank loan with Dedham Savings Bank to finance the expansion. The bank is requesting financial statements prepared on the accrual basis of accounting for 2020 from the company. the course of her review engagement, Amanda Paquette, CPA, obtained the following information: 1. Amounts due from customers totaled $175,000 at 12/31/2020. 2. In analyzing amounts due from customers at 12/31/2020, Paquette discovers that Tracie's has a $6,000 receivable more than 9 months overdue from Jim's Retail Store. Paquette discovers that Jim's filed for bankruptcy on 12/02/2020 and determines that it is highly unlikely that Tracie's will recover any of the $6,000 and that the amount should be written off. 3. A further analysis and aging of accounts 1receivable at 12/31/2020 shows approximately $18,000 of potential uncollectible accounts other than the Jim's Retail Store account. 4. On May 1, 2020, Tracie's paid $26,100 to renew its comprehensive insurance coverage for one year. The premium on the previous one year policy, which expired on April 30, 2020, was $24,000. The company made the appropriate adjusted entry on 12/31/2019, which was subsequently reversed on 1/2/2020.5. Tracie's installed new fencing around the perimeter of the property. The installation was completed on 6/28/2020 at a cost of $80,000. Tracie estimates the useful life of the fencing to be 20 years. Tracie uses straight-line depreciation. 6. The note payable was taken out on 4/1/2019. A proper accrual was made at 12/31/19 and the entry was reversed at 1/2/2020. All principal and interest are due at maturity. 7. On December 29, 2020, Tracie hired a new store manager with an annual salary of $60,000. His first day of work is Monday, January 7th, 2021. 8. All employees are paid bi-weekly on Thursday. The average payroll is $6,000 weekly for a 6-day workweek. Employees were last paid on 12/31/2020 for the week ended 12/26/2020. Tracie is giving all employees Christmas and the day after off, as a paid holiday. 9. Tracie's has made estimated tax payments of $15,000 per quarter for the first three quarters of 2018. Tracie's tax rate is 21% of pretax income. Required: a. Prepare a 10-column worksheet for Tracie's Flowers for the year ended December 31, 2020. b. Prepare a separate work paper showing your adjusting entries. Show any computations and provide explanations. c. Prepare accrual basis financial statements for 2020 (multiple-step income statement, classified balance sheet, and statement of retained earnings) in good form. A cash flow statement is not required. HELPPPP