This project should be completed using Excel (with formulas and linked data). The parameters of the project are below: 1. Prepare a Multi-step Income Statement for the year ended 2018. This statement should be flexibly designed (formulas) with common-sized percentages (vertical analysis) to the right of the dollars. 2. Show journal entries, adjusting entries and closing entries for the below additional information...none of the journal entries have been posted to the ledger (many journal entries have been booked to get you started, however none of the entries for 2018 have been posted). You can add a transaction analysis (not required), however you must complete the entries in the Excel template. 3. Prepare a Statement of Retained Earnings for the year ended 2018. 4. Prepare a Balance Sheet dated Dec. 31, 2018 Again a flexible design is required so any changes will automatically update the balance sheet - use formulas. 5. Prepare a Statement of Cash Flows using the indirect method for the year ended 2018. The ending cash as shown on the statement of cash flows will be the same as the cash reported on the Balance Sheet. Your Name, Inc. Balance Sheet 12/31/2017 Current Assets Cash $17,000 Marketable Securities (Short-term) 2,000 Accounts Receivable 14,000 Allowance for Bad Debt (2,000) Inventory 15,000 Prepaid Insurance 5,000 Total Current Assets $51,000 Property, Plant, and Equipment Land Building Accumulated Dep. - Building Equipment Accumulated Dep. - Equipment Total PPE S30,000 150,000 (45,000) 100,000 (20,000) S215,000 Total Assets S266,000 Current Liabilities Accounts Payable Unearned Revenue Income Taxes Payable Total Current Liabilities $9,000 2,000 3,000 S14,000 Long-term Liabilities Bonds, 10%, due in 2022 $100,000 Equity Common Stock S 50,000 (100,000 authorized, 50,000 issued) Additional Pd.-in Capital 80,000 Retained Earnings 22.000 Total Equity $152,000 Total Liabilities & Equity $266,000 Additional Information for all entries, please see the posted Excel spreadsheet): 1. Sales for 2018 are $310,000. All sales are on credit. 2. Gross Margin ratio is 40 percent 3. Accounts Receivable: i. $190,000 of the accounts receivable is paid by the end of the year (the remaining balance remains on the balance sheet). ii. $4,000 of A/R is written off during the year. iii. 5% of A/R (after write-off and collections) is considered to be uncollectible. 4. Inventory: i. Inventory purchases are $180,000, all on credit. ii. All accounts payable is from inventory purchases, all but $12,000 of inventory purchased is paid by the end of the year. 5. Additional equipment is purchased on 4/1/18 for $20,000 cash. All equipment when new, including the new purchase, has/had a 5-year life, no salvage value, and is depreciated using the straight-line method. 6. The building depreciates at $5,000 per year. 7. Half of the marketable securities were sold for $1,200. The FMV and cost of the other half of the securities are the same, so no adjustment to FMV is required. 8. Salaries are $2,200 per month (12 months of salaries expense must be booked). It is expected that one- half month will be owed on 12/31/18 because of when payday falls (therefore, 11.5 months of salaries have been paid and / month is still owed to the employees at year end). 9. $55,000 in cash is borrowed on 9/30/18 by issuing a Note Payable. Interest is 8% per year. 10. The bonds were sold at face value last December and pay interest on Dec. 31, 2018. 11. 10,000 additional shares of stock were sold for S3 a share. 12. Insurance costing $18,000 was purchased on 6/1/18 (the same time in which the old policy expired. The new policy was for 12 months). 13. On Dec 31, 2018, 1000 shares of stock are repurchased from the market at $2.90/share (treasury stock). 14. The tax rate is 30 percent. Income taxes for the current year are due and therefore paid during the first two months of the next year (you will have to complete an entry to pay the 2017 taxes, however the 2018 taxes will not be paid until the end of January 2019). 15. Dividends of $3,000 were paid during 2018. 16. The unearned revenue has been camned during the year (classified as other revenue on the multi-step income stmt.). Required Labeled Sheets (all statements should be for 2018): 1. Data Sheet for Additional Data 2. Entries: Basic and Adjusting (you do not have to show closing entries, however, keep in mind all temporary accounts are closed to retained earnings) 3. Adjusted Trial Balance for 2018 (includes the posted amounts of all entries and adjusting entries) 4. Multi-step Income Statement 5. Retained Earnings Statement 6. Classified Balance Sheet 7. Cash Flow Statement 8. Post-Close Trial Balance for 2018 The Post-Close Trial Balance for 2017 is provided below (based on the above balance sheet). This can be used as a starting point or you can use the above Balance Sheet; keep in mind all debits and credits ALWAYS equal AND Assets = Liabilities + Equity: Your Name, Inc. Post Close Trial Balance 31-Dec-17 CREDITS Cash DEBITS 17,000 2,000 14,000 Marketable Securities Accounts Rec. Allowance for Bad Debt 2,000 Inventory Prepaid Insurance 15,000 5,000 30,000 150,000 Land Building Accumulated Dep. - Building 45,000 Equipment 100,000 Accumulated Dep. - Equipment 20,000 9,000 Accounts Payable Salaries Payable Unearned Revenue 2,000 Interest Payable 3,000 Income Taxes Payable Note Payable Bonds Common Stock 100,000 50,000 80,000 Additional Pd-in-Capital Retained Earnings 22.000 333,000 333,000