13 Be Jeweled, Inc. Trial Balance 14 30-Jun-17 15 16 Account Debit Credit 17 Cash $ 284,610.00 18 Accounts Receivable $ 2,995.00 19 Inventory $ 36,010.00 20 Prepaid Insurance $ 1,225.00 21 Display Equipment $ 2,400.00 22 Accumulated Depreciation - Equipment $ 100.00 23 Building $ 348,000.00 24 Accumulated Depreciation - Building $ 3,625.00 25 Accounts Payable $ 24,350.00 26 Interest Payable $ 7,328.75 27 Salaries and Wages Payable $ 3,535.00 28 Mortgage Payable $226,200.00 29 Bank Loan Payable $260,000.00 30 Common Stock $ 149,100.00 31 Sales Revenue $ 71,335.00 32 COGS $ 30,340.00 Net Income $1,001.25 33 Salaries and Wages Expense $ 28,065.00 34 Insurance Expense $ 875.00 35 Interest Expense $ 7,328.75 36 Depreciation Expense $ 3,725.00 37 Totals $ 745,573.75 $745,573.75 20 A. Journal Entries B. T-Accts C. Trial Balance D. Retained Earnings E. Balance Sheet F. Statement of Cash Flow ... : 14 T-Accounts: Assets Liabilities Equity Prepaid Insurance 2,100 875 15 1,225 Accounts Payable 66,350 42,000 4 24,350 Common Stock 149,100 Salaries & Wages Expense 28,065 1 12 10 Retained Earnings Cash 149,100 2,400 2 260,000 121,800 5,505 2,100 62,835 42,000 8 30,340 11 24,530 12 477,440 223,170 254270 Accounts Receivable 8,500 5,505 9 2,995 Building 348,000 Salaries & Wages Payable 3,535 Insurance Expense 875 15 348,000 348,000 Display Equipment 2,400 Interest Payable 7,329 16 Sales Revenue 8,500 62,835 71,335 6 10 14 Depreciation Expense 3,625 100 3,725 2,400 Inventory 66,350 30,340 11 36,010 Cost of Goods Sold 30,340 11 Bank Loan Payable 260,000 7 Accum Depr-P&E 3,625 13 100 14 3,725 Interest Expense 7,329 Mortgage Note Payable 226,200 3 A. Journal Entries B. T-Accts C. Trial Balance D. Retained Earnings E. Balance Sheet F. Statement of Cash Flov ... | 4 Part D: 5 Complete a Statement of Retained Earnings for the first two quarters in 6 proper format. Link the Ending Retained Earnings balance into your 7 Balance Sheet. (5 points-graded for accuracy and format, including 8 Excel spreadsheet links and formulas) 9 10 There are no Check Figures provided for Part D. 11 14 12 Solution: 13 Be Jewled, Inc. Statement of Retained Earnings 15 For the Quarter Ending June 30, 2017 16 17 Beginning Retained Earnings, January, 1 2017 18 Add: Net Income 19 Ending Retained Earnings December 31, 2012 20 2/1/2017 Building Cash Mortgage Payabl 2/1/2017 Inventory Accounts Payable 2/1/2017 Prepaid Insurance Cash 15 Transactions: 3 16 1 1/2/2017 Issued 7,100 shares of stock to investors consisting of friends and family. Shares were sold at 17 par value of $21 each. 18 2 2/1/2017 Paid $2,400 in cash to purchase display equipment for the jewelry showroom. 19 3 2/1/2017 Puchased a building for office, workshop, and retail space for $348,000. They paid 35% down 4 20 in cash and signed a 20 year mortgage note with a 4.5% interest rate for the rest. Principal and interest payments will be made annually. 22 4 2/1/2017 Purchased inventory on account for $66,350. 5 23 5 2/1/2017 The company purchased a twelve month insurance policy and paid cash in advance of $2,100. 24 6 2/26/2017 Recorded jewelry sales to a local art gallery, sold on account for $8,500. 7 4/1/2017 Received a 5 year loan of $260,000, requiring annual payments, from the bank. The annual 6 26 interest rate was 4.75%. 27 8 4/2/2017 Paid $42,000 of the Account Payable for the inventory to the supplier. 7 28 9 4/30/2017 The company received a cash payment of $5,505 from the sales on account from the local art gallery. 29 10 6/30/2017 Jewelry sales in cash for February through June 30th were $62,835. 30 11 6/30/2017 Cost of Goods Sold for the February through June 30th sales (cash and credit) were $30,340. 8 31 12 6/30/2017 32 Salaries and wages expense for February through June 30th combined was $28,065. Of this A. Journal Entries B. T-Accts C. Trial Balance D. Retained Earnings E. Balance Sheet F. Statement of Cash Flov ... + 2/26/2017 Accounts Receivable Cash 4/1/2017 Bank Loan Payable Cash 4/2/2017 Accounts Payable Cash F15 - D X Fc 33 A B D E F G H I J K 28 9 4/30/2017 The company received a cash payment of $5,505 from the sales on account from the local art gallery. Cash 29 10 6/30/2017 Jewelry sales in cash for February through June 30th were $62,835. 30 11 6/30/2017 Cost of Goods Sold for the February through June 30th sales (cash and credit) were $30,340. 8 4/2/2017 Accounts Payable 31 12 6/30/2017 Cash 32 Salaries and wages expense for February through June 30th combined was $28,065. Of this total, $24,530 was paid in cash and the rest will be paid in July. 9 4/30/2017 Cash 34 13 6/30/2017 The company records depreciation monthly. The building has a useful economic life of 40 years Accounts Receival 35 and the company uses the straight line depreciation method. Pay attention to the purchase 36 date! 10 6/30/2017 Cash 37 14 6/30/2017 Jewlery Sales 38 The company records depreciation monthly. The display equipment has a useful economic life 39 of 10 years and the company uses the straight line depreciation method. 11 6/30/2017 COGS 40 15 6/30/2017 Insurance expense for Feb through June 30th is 5/12 of the amount paid in advance. Cash 41 16 6/30/2017 The company accrued interest expense for the first five months they held the mortgage and 42 the first three months they held the bank loan. 12 6/30/2017 Salary and Wages 43 Cash Salary and Wages 45 44