The unadjusted trial balance of Morgan Manufacturing Corp. at December 31, 2019 is shown. Refer also to the additional year-end information for the company shown on the "Adjusting Entries" page (see pictures) Required: 1 Prepare year-end adjusting entries. General ledger account numbers are not necessary. Show your calculations below each adjusting entry. 2 Post the adjusting entries to the trial balance and prepare an adjusted trial balance. 3 Using the amounts from the adjusted trial balance, complete the financial statements for the year ended December 31, 2019. Morgan Manufacturing Corp. Adjusting Entries For the Year Ended December 31, 2019 The following additional information is available at the corporation's year-end. GST of 5% only applies when indicated. a. A sale on account has not been recorded in the amount of: $5,000 Applicable sales tax is: 8% b. Warranty expense for the year as a percentage of sales should be: 2% c. Unpaid gross salaries at year-end amount to: $10,000 Deductions from unpaid salaries are as follows: Employee Company Portion Portion Employee income taxes 12% 0% FICA Social Security taxes* 4% 4% FICA Medicare taxes 2% 2% Company health insurance 4% 4% * these are not the actual required percentages d. The estimated year-end audit fees are: $90,000 e. Rent revenue consists of 13 equal monthly payments, including one paid in advance for January 2020. f. A trade account payable was converted to a note payable during the year. No entry has been made to record this. The note payable is due at the end of 2020. The amount of the note payable is: $40,000 The annual interest rate on the note payable is: 3% The note payable was created at the end of this month: 9 (January = 1; December = 12) g. A lawsuit was commenced against the company in 2019. Damages claimed are: $30,000 Lawyers for the company consider the likelihood of success to be: Possible h. The interest rate on the mortgage is: 8% Annual payments (blended principal and interest) are made on Dec. 31 and total: $163,200 The 2019 payment has been recorded as Interest on Long-term Debt expense. i. The corporate income tax rate as a percentage of income before income taxes is: 10% Corporate income tax installments during the year have been recorded as Income Tax expense in the records. Assume any 2019 loss before income taxes will result in the refund of income taxes at the current year's income tax rate.

Would you help me on the LAST 2 PAGES for the Income Statement and Balance Sheet? Just the last last 2 pages!

Before you begin, print out all the pages in this workbook. The unadjusted trial balance of Morgan Manufacturing Corp. at December 31, 2019 is shown on the "Trial Bal" page (see tab below). Refer also to the additional year-end information for the company shown on the "Adjusting Entries" page (see tab below). Required: 1 Prepare year-end adjusting entries. General ledger account numbers are not necessary. Show your calculations below each adjusting entry. 2 Post the adjusting entries to the trial balance and prepare an adjusted trial balance. 3 Using the amounts from the adjusted trial balance, complete the financial statements for the year ended December 31, 2019. Morgan Manufacturing Corp. Adjusting Entries For the Year Ended December 31, 2019 The following additional information is available at the corporation's year-end. GST of 5% only applies when indicated. a. A sale on account has not been recorded in the amount of: Applicable sales tax is: $5,000 8% b. Warranty expense for the year as a percentage of sales should be: 2% c. Unpaid gross salaries at year-end amount to: $10,000 Deductions from unpaid salaries are as follows: Employee Portion Employee income taxes 12% FICA Social Security taxes* 4% FICA Medicare taxes 2% Company health insurance 4% * these are not the actual required percentages Company Portion 0% 4% 2 d. The estimated year-end audit fees are: $90,000 e. Rent revenue consists of 13 equal monthly payments, including one paid in advance for January 2020. f. A trade account payable was converted to a note payable during the year. No entry has been made to record this. The note payable is due at the end of 2020. The amount of the note payable is: The annual interest rate on the note payable is: The note payable was created at the end of this month: (January = 1; December = 12) g. A lawsuit was commenced against the company in 2019. Damages claimed are: Lawyers for the company consider the likelihood of success to be: $30,000 Possible 8% h. The interest rate on the mortgage is: Annual payments (blended principal and interest) are made on Dec. 31 and total: The 2019 payment has been recorded as Interest on Long-term Debt expense. $ 163,200 10% i. The corporate income tax rate as a percentage of income before income taxes is: Corporate income tax installments during the year have been recorded as Income Tax expense in the records. Assume any 2019 loss before income taxes will result in the refund of income taxes at the current year's income tax rate. Morgan Manufacturing Corp. GENERAL JOURNAL Adjusting entries Debit Credit Account Adj. # Adjusted To Debit Credit Trial Balance At December 31, 2019 Unadjusted TB Adjustments Debit Credit Adi. # Debit Credit 74,000 760,000 210,000 11 Cash in bank Accounts receivable Parts Inventory Corp. income tax receivable Land Building Accumulated dep'n - bldg. Trade accounts payable Interest payable Estimated current liabilities 10.000.000 7.900.000 I 1.580.000 140.000 Estimated warranty liability 136, 000L Salaries payable Employee inc, taxes pay. FICA Soc. Sec. pay. TIT FICA Medicare payable Co. health insurance payable 1 1.000 Corp. income tax payable Sales tax payable Note payable Unearned rent revenue Mortgage payable Common stock, $1 per sh. Retained earnings 1,632,000 9,000,000 2,963,800 520,000 13,600,000 Rent revenue Sales, net Cost of goods sold Bad debts expense Co. health ins. expense Delivery expense Dep'n expense - building FICA Soc. Sec. exp. FICA Medicare exp. Interest and bank charges Interest on long-term debt Lawsuit damages expense Office supplies expense Professional fees Salaries expense Warranty expense Corp. income tax exp. T 870,400 3.000 18,400 300,000 1,000 18,400 9,200 50,000 163,200 0 99,000 40,000 460,000 1,000 489,600 29,436,800 29,436,800 Morgan Manufacturing Corp. Income Statement For the Year Ended December 31, 2019 gles, net 2019 2018 $12.756,800 9,017,344 3,739,456 532.510 282,510 99.000 247,520 1,161,030 2,790 Less: Cost of goods sold Gross profit Operating expenses Selling Salaries and benefits Delivery Office supplies Warranty Total selling General and administrative Bad debts Depreciation Lawsuit damages Professional fees Total general and adminstrative Total operating expenses Income from operations Other income Rent revenue Income before interest and income taxes Interest expense Income before income taxes Income taxes Net income 940 143,000 146,730 1,307,760 2,431,696 499,200 2,930,896 177,243 2,753,653 275,365 $2.478.288 Morgan Manufacturing Corp. Statement of Changes in Equity For the Year Ended December 31, 2019 2019 Common Retained stock earnings Total equity $9,000,000 $2,963,800 $11,963,800 2018 Balance at Jan. 1 Net income Balance at Dec. 31 Total equity $9,485,512 2.478.288 $11,963,800 $9,000,000 Morgan Manufacturing Corp. Balance Sheet At December 31, 2019 Assets Current Cash 2019 Accounts receivable, net Corporate income taxes receivable Inventories 2018 $41,970 640,000 168,012 Non-current 349,982 Land Building, net 23,166,245 6.321.000 29,487,245 $30.337.227 $108,150 84,600 126,900 Liabilities Current Trade accounts payable Estimated current liabilities Estimated warranty liabilities Note payable Interest payable Salaries and benefits payable Sales tax payable Unearned rent Current portion of mortgage payable Corporate income taxes payable 297 10,340 1,540 41,600 180,000 553,427 Non-current Mortgage payable Less: Current portion 18,000,000 (180,000) 17,820,000 18,373,427 Total liabilities Stockholders' Equity Common stock Retained earnings 9,000,000 2,963,800 11,963,800 $30,337,227 Total liabilities and S/H equity Before you begin, print out all the pages in this workbook. The unadjusted trial balance of Morgan Manufacturing Corp. at December 31, 2019 is shown on the "Trial Bal" page (see tab below). Refer also to the additional year-end information for the company shown on the "Adjusting Entries" page (see tab below). Required: 1 Prepare year-end adjusting entries. General ledger account numbers are not necessary. Show your calculations below each adjusting entry. 2 Post the adjusting entries to the trial balance and prepare an adjusted trial balance. 3 Using the amounts from the adjusted trial balance, complete the financial statements for the year ended December 31, 2019. Morgan Manufacturing Corp. Adjusting Entries For the Year Ended December 31, 2019 The following additional information is available at the corporation's year-end. GST of 5% only applies when indicated. a. A sale on account has not been recorded in the amount of: Applicable sales tax is: $5,000 8% b. Warranty expense for the year as a percentage of sales should be: 2% c. Unpaid gross salaries at year-end amount to: $10,000 Deductions from unpaid salaries are as follows: Employee Portion Employee income taxes 12% FICA Social Security taxes* 4% FICA Medicare taxes 2% Company health insurance 4% * these are not the actual required percentages Company Portion 0% 4% 2 d. The estimated year-end audit fees are: $90,000 e. Rent revenue consists of 13 equal monthly payments, including one paid in advance for January 2020. f. A trade account payable was converted to a note payable during the year. No entry has been made to record this. The note payable is due at the end of 2020. The amount of the note payable is: The annual interest rate on the note payable is: The note payable was created at the end of this month: (January = 1; December = 12) g. A lawsuit was commenced against the company in 2019. Damages claimed are: Lawyers for the company consider the likelihood of success to be: $30,000 Possible 8% h. The interest rate on the mortgage is: Annual payments (blended principal and interest) are made on Dec. 31 and total: The 2019 payment has been recorded as Interest on Long-term Debt expense. $ 163,200 10% i. The corporate income tax rate as a percentage of income before income taxes is: Corporate income tax installments during the year have been recorded as Income Tax expense in the records. Assume any 2019 loss before income taxes will result in the refund of income taxes at the current year's income tax rate. Morgan Manufacturing Corp. GENERAL JOURNAL Adjusting entries Debit Credit Account Adj. # Adjusted To Debit Credit Trial Balance At December 31, 2019 Unadjusted TB Adjustments Debit Credit Adi. # Debit Credit 74,000 760,000 210,000 11 Cash in bank Accounts receivable Parts Inventory Corp. income tax receivable Land Building Accumulated dep'n - bldg. Trade accounts payable Interest payable Estimated current liabilities 10.000.000 7.900.000 I 1.580.000 140.000 Estimated warranty liability 136, 000L Salaries payable Employee inc, taxes pay. FICA Soc. Sec. pay. TIT FICA Medicare payable Co. health insurance payable 1 1.000 Corp. income tax payable Sales tax payable Note payable Unearned rent revenue Mortgage payable Common stock, $1 per sh. Retained earnings 1,632,000 9,000,000 2,963,800 520,000 13,600,000 Rent revenue Sales, net Cost of goods sold Bad debts expense Co. health ins. expense Delivery expense Dep'n expense - building FICA Soc. Sec. exp. FICA Medicare exp. Interest and bank charges Interest on long-term debt Lawsuit damages expense Office supplies expense Professional fees Salaries expense Warranty expense Corp. income tax exp. T 870,400 3.000 18,400 300,000 1,000 18,400 9,200 50,000 163,200 0 99,000 40,000 460,000 1,000 489,600 29,436,800 29,436,800 Morgan Manufacturing Corp. Income Statement For the Year Ended December 31, 2019 gles, net 2019 2018 $12.756,800 9,017,344 3,739,456 532.510 282,510 99.000 247,520 1,161,030 2,790 Less: Cost of goods sold Gross profit Operating expenses Selling Salaries and benefits Delivery Office supplies Warranty Total selling General and administrative Bad debts Depreciation Lawsuit damages Professional fees Total general and adminstrative Total operating expenses Income from operations Other income Rent revenue Income before interest and income taxes Interest expense Income before income taxes Income taxes Net income 940 143,000 146,730 1,307,760 2,431,696 499,200 2,930,896 177,243 2,753,653 275,365 $2.478.288 Morgan Manufacturing Corp. Statement of Changes in Equity For the Year Ended December 31, 2019 2019 Common Retained stock earnings Total equity $9,000,000 $2,963,800 $11,963,800 2018 Balance at Jan. 1 Net income Balance at Dec. 31 Total equity $9,485,512 2.478.288 $11,963,800 $9,000,000 Morgan Manufacturing Corp. Balance Sheet At December 31, 2019 Assets Current Cash 2019 Accounts receivable, net Corporate income taxes receivable Inventories 2018 $41,970 640,000 168,012 Non-current 349,982 Land Building, net 23,166,245 6.321.000 29,487,245 $30.337.227 $108,150 84,600 126,900 Liabilities Current Trade accounts payable Estimated current liabilities Estimated warranty liabilities Note payable Interest payable Salaries and benefits payable Sales tax payable Unearned rent Current portion of mortgage payable Corporate income taxes payable 297 10,340 1,540 41,600 180,000 553,427 Non-current Mortgage payable Less: Current portion 18,000,000 (180,000) 17,820,000 18,373,427 Total liabilities Stockholders' Equity Common stock Retained earnings 9,000,000 2,963,800 11,963,800 $30,337,227 Total liabilities and S/H equity