The Novack Group makes custom furniture and their transactions for the month of September are below: Sept. 1. Purchased merchandise on account from Colony Supply Co. $12,300 terms 3/10, 1/30 1. Paid September rent for storage facility 1710. 2 Received rent from industrial tenant S40,000 3 Sold merchandise on account $18,000, terms 2/10, n/30. The cost of the merchandise sold was $13,700. 5. Paid $700 freight on the September er 3 sale 6. Purchased supplies with cash for $2200 8. Received credit from Colony Supply Co. for merchandise returned $800. 10. Paid Colony Supply Co. in full, less discount. 12. Received collections in full, less discounts, from customers billed on September 3 14. Purchased merchandise for on Account from Acme Distributors 14,500 terms 2/15, n30 16. Paid freight on Sept. 14 purchase for $580. 18. Received refund from Acme for returned merchandise on Sept. 14* purchase of $1,650. 20. Paid salaries to employee of S6200, of which 2000 was due from August and the rest for September. 22 Sold merchandise for cash of S9000. The cost of the merchandise sold was $4500 23 Sold merchandise on account for $37,300. Terms 1/10 n30. The merchandise cost 16000 24 Granted an Allowance of $900 for merchandise not exactly to specifications from cash purchase above. 27. Paid Acme Distributors in full, less discount. 29. Made refunds to cash customers for returned merchandise S1600. The returned merchandise had a cost of $850. 30. Received Interest revenue of S6710 on bond. 30. Dividends of S500 were declared and paid Year-end Adjustments: 1. Salaries were accrued but not paid in the amount of $5300. 2. $ 5000 of the note payable is due next year. 3. One year of interest for the long-term note accrued and is payable. Loan is for 10 years and the original amount was $50,000 and the interest rate is 6%. (.06) 4. Prepaid insurance was purchased on July 1 for $6000. It is paid quarterly. One quarter has expired and is payable. 5. The ending balance of Supplies on hand is 3500. 6. Depreciation for Buildings per month is $500 and for Buildings $350 7. The income tax payable due is 25% of net income before tax (Hint DO the Income Statement First. Round to the nearest dollar. Instructions: 1. Please post each transaction in the T account ledger. 2. Prepare a trial balance 3. Update T-accounts with Adjustments 4. Update Trial Balance 5. Prepare a multi step Income Statement, Statement of Retained Earnings and Balance Sheet. Trial Balance 30-Sep-17 ADJUSTED ENDING BALANCE DEBITS CREDITS Account Title BEGINNING BALANCE UNADJUSTED ENDING BALANCE ADJUSTMENTS DEBITS CREDITS DEBITS CREDITS DEBITS CREDITS 18.000 3000 22000 4600 6000 50000 25000 6500 3500 3300 2000 Cash Accounts receivable Inventory Supplies Prepaid Insurance Building Equipment Accumulated Dep Building Accumulated Dep Equipment Accounts payable Salaries&Wages Payable Stort-Term Portion of LT Note. Interest Payable Income Tax Payable Long-term loan Payable Common stock Retained Earnings Dividends Revenue Returns and Allowances Discounts Cost of Goods Sold Freight-out Rent Expense Insurance Expense Salaries & Wage Expense Depreciation Exp Blding Depreciation Expense Equipment Supplies Expense Rent Revenue Interest Revenue Interest Expense Income Tax Expense 30000 75.000 8.300 Total 128.600 128.600 Accumulated Depreciation Bldg 6500 Accumulated Depreciation Equipment 3500 Accounts Payable 3300 Salaries and Wages Payable Short-Term Portion of Note Payable 2000 Sales Revenue NOTE Payable 30000 Common Stock 75000 Rent Revenue Interest Revenue Retained Earnings 8300 Interest Payable Income Tax Payable Debits Credits Trial Balance Statements DEBITS Cash 18000 Accounts Receivable 3000 Supplies 4600 Prepaid Insurance 6000 Building 50000 Equipment 25000 Freight-out Rent Expense Depreciation Expense Building Depreciation Expense Equipment The Novack Group makes custom furniture and their transactions for the month of September are below: Sept. 1. Purchased merchandise on account from Colony Supply Co. $12,300 terms 3/10, 1/30 1. Paid September rent for storage facility 1710. 2 Received rent from industrial tenant S40,000 3 Sold merchandise on account $18,000, terms 2/10, n/30. The cost of the merchandise sold was $13,700. 5. Paid $700 freight on the September er 3 sale 6. Purchased supplies with cash for $2200 8. Received credit from Colony Supply Co. for merchandise returned $800. 10. Paid Colony Supply Co. in full, less discount. 12. Received collections in full, less discounts, from customers billed on September 3 14. Purchased merchandise for on Account from Acme Distributors 14,500 terms 2/15, n30 16. Paid freight on Sept. 14 purchase for $580. 18. Received refund from Acme for returned merchandise on Sept. 14* purchase of $1,650. 20. Paid salaries to employee of S6200, of which 2000 was due from August and the rest for September. 22 Sold merchandise for cash of S9000. The cost of the merchandise sold was $4500 23 Sold merchandise on account for $37,300. Terms 1/10 n30. The merchandise cost 16000 24 Granted an Allowance of $900 for merchandise not exactly to specifications from cash purchase above. 27. Paid Acme Distributors in full, less discount. 29. Made refunds to cash customers for returned merchandise S1600. The returned merchandise had a cost of $850. 30. Received Interest revenue of S6710 on bond. 30. Dividends of S500 were declared and paid Year-end Adjustments: 1. Salaries were accrued but not paid in the amount of $5300. 2. $ 5000 of the note payable is due next year. 3. One year of interest for the long-term note accrued and is payable. Loan is for 10 years and the original amount was $50,000 and the interest rate is 6%. (.06) 4. Prepaid insurance was purchased on July 1 for $6000. It is paid quarterly. One quarter has expired and is payable. 5. The ending balance of Supplies on hand is 3500. 6. Depreciation for Buildings per month is $500 and for Buildings $350 7. The income tax payable due is 25% of net income before tax (Hint DO the Income Statement First. Round to the nearest dollar. Instructions: 1. Please post each transaction in the T account ledger. 2. Prepare a trial balance 3. Update T-accounts with Adjustments 4. Update Trial Balance 5. Prepare a multi step Income Statement, Statement of Retained Earnings and Balance Sheet. Trial Balance 30-Sep-17 ADJUSTED ENDING BALANCE DEBITS CREDITS Account Title BEGINNING BALANCE UNADJUSTED ENDING BALANCE ADJUSTMENTS DEBITS CREDITS DEBITS CREDITS DEBITS CREDITS 18.000 3000 22000 4600 6000 50000 25000 6500 3500 3300 2000 Cash Accounts receivable Inventory Supplies Prepaid Insurance Building Equipment Accumulated Dep Building Accumulated Dep Equipment Accounts payable Salaries&Wages Payable Stort-Term Portion of LT Note. Interest Payable Income Tax Payable Long-term loan Payable Common stock Retained Earnings Dividends Revenue Returns and Allowances Discounts Cost of Goods Sold Freight-out Rent Expense Insurance Expense Salaries & Wage Expense Depreciation Exp Blding Depreciation Expense Equipment Supplies Expense Rent Revenue Interest Revenue Interest Expense Income Tax Expense 30000 75.000 8.300 Total 128.600 128.600 Accumulated Depreciation Bldg 6500 Accumulated Depreciation Equipment 3500 Accounts Payable 3300 Salaries and Wages Payable Short-Term Portion of Note Payable 2000 Sales Revenue NOTE Payable 30000 Common Stock 75000 Rent Revenue Interest Revenue Retained Earnings 8300 Interest Payable Income Tax Payable Debits Credits Trial Balance Statements DEBITS Cash 18000 Accounts Receivable 3000 Supplies 4600 Prepaid Insurance 6000 Building 50000 Equipment 25000 Freight-out Rent Expense Depreciation Expense Building Depreciation Expense Equipment