The unadjusted trial balance for JKF Inc is provided below Use the unadjusted trial balance, along with the notes provided below to prepare journal A. entries, to show the accounting treatment for each of the first seven adjustments below (i.e. no need to write the adjusting entries for adjustments 8 & 9). Use the journal entries to prepare the Adjusted Trial Balance. Use the adjusted Trial Balance and adjusting notes 8 & 9, to prepare a multi-step income statement, a statement of stockholders equity and a classified balance sheet. B. JKF Inc Unadjusted Trial Balance For the year ended 31st Dec 2019 Debit Credit Cash 500,000 Accounts Receivable 400,000 Inventory Prepaid Insurance 300,000 200,000 Equipment Accumulated Depreciation-Equipment 2,200,000 800,000 Land 500,000 Notes Payable (Long term) Accounts payable 300,000 200,000 Unearned Service Revenue 100,000 Owner's Capital 800,000 Retained earnings 700,000 Sales Revenue 2,500,000 Cost of Goods Sold 900,000 Selling Expenses 300,000 Admin Expenses 200,000 200,000 Interest revenues Loss on sale of fixed assets 100,000 5,600,000 5,600,000 The following adjustments were provided Fees of $50,000, received in advance during the year were erroneously recorded in Sales 1. revenue 2. $100,000 recorded as unearned service was earned during the year 3. Prepaid Insurance expired during the year $100,000. (Admin Expense) Equipment is expected to last for 5 years. Salvage value is $200,000. (CoGS) Office salaries and wages earned but unrecorded and unpaid December 31, 2015, $50,000 4. 5. (Admin Expense) A physical count of inventory on 12/31/2019 shows that $100,000 worth is remaining. (oGS) Provide a bad debt allowance of $ 100,000 (Selling Exp) 6. 7. Provide income taxes of 20% of income before taxes 8. Dividends of 100,000 was declared (but not paid) for the year. 9. For JKF, compute the following ratios (use the definitions provided in the exam). C. 1. Operating Margin 2. Sales Margin 3. Working Capital 4. Current Ratio 5. Quick Ratio Debt to Equity ratio 6. 7. Leverage ROA (NI Tot Assets) 8. Comment on the health of the firm based on the ratios you computed above (1 paragraph. This D. may be typed). The unadjusted trial balance for JKF Inc is provided below Use the unadjusted trial balance, along with the notes provided below to prepare journal A. entries, to show the accounting treatment for each of the first seven adjustments below (i.e. no need to write the adjusting entries for adjustments 8 & 9). Use the journal entries to prepare the Adjusted Trial Balance. Use the adjusted Trial Balance and adjusting notes 8 & 9, to prepare a multi-step income statement, a statement of stockholders equity and a classified balance sheet. B. JKF Inc Unadjusted Trial Balance For the year ended 31st Dec 2019 Debit Credit Cash 500,000 Accounts Receivable 400,000 Inventory Prepaid Insurance 300,000 200,000 Equipment Accumulated Depreciation-Equipment 2,200,000 800,000 Land 500,000 Notes Payable (Long term) Accounts payable 300,000 200,000 Unearned Service Revenue 100,000 Owner's Capital 800,000 Retained earnings 700,000 Sales Revenue 2,500,000 Cost of Goods Sold 900,000 Selling Expenses 300,000 Admin Expenses 200,000 200,000 Interest revenues Loss on sale of fixed assets 100,000 5,600,000 5,600,000 The following adjustments were provided Fees of $50,000, received in advance during the year were erroneously recorded in Sales 1. revenue 2. $100,000 recorded as unearned service was earned during the year 3. Prepaid Insurance expired during the year $100,000. (Admin Expense) Equipment is expected to last for 5 years. Salvage value is $200,000. (CoGS) Office salaries and wages earned but unrecorded and unpaid December 31, 2015, $50,000 4. 5. (Admin Expense) A physical count of inventory on 12/31/2019 shows that $100,000 worth is remaining. (oGS) Provide a bad debt allowance of $ 100,000 (Selling Exp) 6. 7. Provide income taxes of 20% of income before taxes 8. Dividends of 100,000 was declared (but not paid) for the year. 9. For JKF, compute the following ratios (use the definitions provided in the exam). C. 1. Operating Margin 2. Sales Margin 3. Working Capital 4. Current Ratio 5. Quick Ratio Debt to Equity ratio 6. 7. Leverage ROA (NI Tot Assets) 8. Comment on the health of the firm based on the ratios you computed above (1 paragraph. This D. may be typed)
