Unsure on a few entries mainly 9.

After nearly destroying the city of Springfield USA because of many near nuclear melt downs caused by Homer Simpson, Mr. Burns decided to go into selling cookies. On January 2, 2020, Mr. Burn continued his Good Old Fashion Cookies Empire. The company is still a merchandise company and still uses a perpetual inventory system.

1. Prepare all the journal entries on a document. (To be turned in separately)

2. Post all journal entries to the worksheet

3. Post all adjusting journal entries to the worksheet

4. In good form, produce a multi step Income Statement, Statement of Retained

Earnings, Balance Sheet, and Statement of Cash Flow

Instructions:

Post the journal entry amounts in columns G and I, post adjusting journal entry amounts in columns O and Q, and post the closing entry amounts in columns W and Y.

Do not touch the columns with the account balances for they are formula driven. You will not have to calculate anything!

For tracking purposes post the journal entries as they appear. The regular transaction numbers will be posted in columns F and H. The adjusting transaction numbers will be posted in columns N and P. The closing transaction numbers will be posted in columns V and X. Regular transactions will have just the number (1, 2, 3, ect). Adjusting transactions will have A in front of the number (A1, A2, A3, ect). Closing transactions will have C in front of the number (C1, C2, C3).

For the statements: use only the cells marked in yellow to put in numbers. The totals will calculate for you. You will not be required to do any formatting.

Check Figures:

Unadjusted Net Loss: ($9,737)

Adjusted Net Loss: ($360,991)

Journal Entries:

1. January 2: After returning from exile, Mr. Burns invested $600,000 of personal funds directly in the business (retained earnings) to strengthen his grip on the cookie market. No common stock ownership was given.

2. January 3: In order to keep the IRS off his trail, Mr. Burns transferred money from his personal account into a Cayman Island secret account for $1,000,000. 3. January 3: In order to expand his cookie factory and be able to dump toxic waste without being impeded by the Feds, Mr. Burns bought land for cash for $500,000. The bald children in the park were drawing attention from the Environmental Protection Agency.

4. January 4: After threatening to block out the sun, Mr. Burns was able to collect $115,000 of the 2020 accounts receivable beginning balance.

5. January 5: In order to ease his beginning of the year cash flow crunch, Mr. Burns issued Common Stock (1,500,000 shares at $2.00 per share). The Par Value is $1.00 per share.

6. February 1: In order to keep up with being 104 year old hip evil billionaire, Mr. Burns decided to purchase a new truck. The truck cost $60,000. Mr. Burns put a down payment on the truck of $10,000 and took out a note for the rest (long term). The interest rate of the note is 10%. The truck will depreciated by miles. The expected life of the truck is 100,000 miles.

7. February 20: Mr. Burns sold his delicious cookies to Candy Store on account $300,000.

Mr. Burns offered terms 2/20, n40. The cost of merchandise sold was $150,000.

8. February 28: Mr. Burns bought cookie dough (inventory) to keep the cookie assembly line going. Mr. Burns paid cash for the cookie dough $400,000

9. March 1st. Mr. Burns reclassed the current portion of long term notes payable. Reclass only the portion on the balance sheet as of January 1st, 2020.

10. March 5: Mr. Burns paid for the following expenses that came in: Sales Salary Expense $70,000, Advertising Expense $50,000, and Delivery Expense $40,000. All of the expenses were paid in one transaction.

11. March 6: Mr. Burns collected $30,000 of the 1/1/2020 balance of the note receivable from Mayor Quimby. The interest rate was 15% and the Note was written on July 1th, 2019

12. March 7: The Candy Store paid Mr. Burns what they owed him on account.

13. March 15: Mr. Burns paid income tax payable owed from last year.

14. April 1: Not liking being accountable to outside shareholders, Mr. Burns decided to buy back some treasury stock. Mr. Burns bought the $1.00 per value shares back (300,000 shares) at $.50 per share.

15. April 4: Because of cockroaches in some of the radioactive cookie dough, Mr. Burns was required to buy additional inventory. He paid $98,000 for the inventory.

16. April 10: Mr. Burns paid for the following expenses: Advertising $100,000, Office Salaries $80,000, Wages $40,000, and Utility $10,000. All expense transactions were settled with one payment transaction.

17. May 01: The Grocery Store bought $400,000 of cookies on account. Mr. Burns was still angry that his casino got shutdown so there were no discount terms. The cost of the inventory was $200,000

18. June 1: Having its own cash flow crunch, The Grocery Store paid Mr. Burns $100,000 and issued a note for $300,000. Against their better judgment, they agreed to the terms of 14%

19. June 2: Mr. Burns issued a 2:1 Stock Split

20. June 3: Mr. Burns bought back an additional 200,000 shares of Treasury Stock at $.50 per share

21. June 21: The following expenses accrued and are to be paid in a later month: Pension Expense $60,000, Health Insurance Expense $50,000, and Professional Fees $10,000.

22. July 1. Mr. Burns issued $600,000, 10 years (semi annual payments) coupon rate of 10%, market rate of 12%. Mr. Smithers gave this bond the code name Bond #1

23. July 1. Mr. Burns issued $500,000 bond (Bond #2) 10 years (semi-annual payments) coupon rate of 12%, market rate of 10%.

24. September 8: Mr. Burns paid the expenses accrued on June 21. The accrued expenses were paid with one check transaction.

25. October 1: The Grocery Store paid the principle of the note and the interest.

26 October 15: Mr. Burns wrote off the amount sitting in allowance for doubtful account because Abe Simpson refused to pay for the cookies he bought in 2019. Mr. Burns used $50,000 of personal funds to hire a hit squad to go after Abe Simpson.

27. November 1: After being advised by legal counsel and Mr. Smithers that killing off competition was considered murder, Mr. Burns decided to get a patent to keep from his secrets from being used by his rivals. He paid $200,000 for his patent which will be amortized for 15 years.

28. December 1: Mr. Burns bought Cookie Dough and paid for the amount up front to get a bulk discount. The amount paid is $400,000

29. December 8: Mr. Burns bought office supplies on account from Staples for $50,000.

30. December 9 Mr. Burns sold $400,000 of cookies on account to Shelbyville. The cost of sales was $200,000

31. December 25: Mr. Burns paid a cash dividend after being visited by the three ghosts of Christmas to the Shareholder $400,000

32. December 31: Mr. Burns made interest payment on Bond #1. Use effective interest method. The payments are considered to be ordinary annuities

33. December 31: Mr. Burns made interest payment on Bond #2 Use effective interest method. The payments are considered to be ordinary annuities

File Edt ert Format Help Worksheet D L F G H I J K L M N O P R S T Mt. Burn's Good Old Fashion Cookies Adjusted Trial Balance December Adjusting Enes Beginning Balance 2020 Unadjusted Trial Balance Debit ilan edit and Current Assets 200,000 SEGNO Accounts Receivable 119,000 Bond Balance Sheet Chow 1 Vort come Statement Statement of Retained langs 0 5 :58 f Inventory L M N O P T R S Allowance for Doubtful Accounts 158.732 Office Supplies Plant Supplies 12.000 547,132 35 35 Prepaid Rent Total Current Assets 38 PlantEquipIntangible Assets 150,000 150.000 40 41 Equipment (10 ars) Accumulated Depreciation Equipment Machinery 5 Wars) Accumulated Depreciation Machinery 13 45 46 47 Accumulated Depreciation Truck Patent Total Plant/Equintables 770,000 49 Total Assets o ndo Bond Amor Balance Sheet C Workshoot Income Statement of Retained Camings 005 9 M Current Liabetes BO DO 70.000 Accounts Payable Uneamed Reverse Pension Payable Health and Payable Professional Fees Payable Warranties Payable Income Tax Payable 0001 Interest Payable Accued Liability for possible contingen Total Current abilities Long-Term Liabilities Notes Payable (War Note) in Year 2 Mort Payable Bonds Payable 1 Discount Balance She Bond Amort 2 Cash Flow Bond Ano shot Statement of Retained Emings Income Statement 0 6 :01 L M N O POS 14 Bonds Payable 2 SP 100.000 77 18 Total Long-Term Liabilities Total Liabilities 400.000 670 000 80 Stockholders Equity Income Summary Retained Earnings 207.132 500.000 87 38 89 Preferred Stock Additional Paid in Capital Preferred Stock Common Stock Additional Paid in Capital Common Stock Treasury Stock 91 92 93 94 Cash Dividends Total abilities 6. Capital Revenue Sales Revenue Balance Sheet Cash Flow Blond Amo Bond Amort2 Worksheet Statement of Retained Emings Income Statement DON File Edt ert Format Help Worksheet D L F G H I J K L M N O P R S T Mt. Burn's Good Old Fashion Cookies Adjusted Trial Balance December Adjusting Enes Beginning Balance 2020 Unadjusted Trial Balance Debit ilan edit and Current Assets 200,000 SEGNO Accounts Receivable 119,000 Bond Balance Sheet Chow 1 Vort come Statement Statement of Retained langs 0 5 :58 f Inventory L M N O P T R S Allowance for Doubtful Accounts 158.732 Office Supplies Plant Supplies 12.000 547,132 35 35 Prepaid Rent Total Current Assets 38 PlantEquipIntangible Assets 150,000 150.000 40 41 Equipment (10 ars) Accumulated Depreciation Equipment Machinery 5 Wars) Accumulated Depreciation Machinery 13 45 46 47 Accumulated Depreciation Truck Patent Total Plant/Equintables 770,000 49 Total Assets o ndo Bond Amor Balance Sheet C Workshoot Income Statement of Retained Camings 005 9 M Current Liabetes BO DO 70.000 Accounts Payable Uneamed Reverse Pension Payable Health and Payable Professional Fees Payable Warranties Payable Income Tax Payable 0001 Interest Payable Accued Liability for possible contingen Total Current abilities Long-Term Liabilities Notes Payable (War Note) in Year 2 Mort Payable Bonds Payable 1 Discount Balance She Bond Amort 2 Cash Flow Bond Ano shot Statement of Retained Emings Income Statement 0 6 :01 L M N O POS 14 Bonds Payable 2 SP 100.000 77 18 Total Long-Term Liabilities Total Liabilities 400.000 670 000 80 Stockholders Equity Income Summary Retained Earnings 207.132 500.000 87 38 89 Preferred Stock Additional Paid in Capital Preferred Stock Common Stock Additional Paid in Capital Common Stock Treasury Stock 91 92 93 94 Cash Dividends Total abilities 6. Capital Revenue Sales Revenue Balance Sheet Cash Flow Blond Amo Bond Amort2 Worksheet Statement of Retained Emings Income Statement DON