use the first photos for information then fill out the income statement

ACME Distribution, Inc. December 31, 2016 Adjusting Entries Read through each situation below and on the following pages. After completing any necessary calculations prepare the required adjusting journal entry. When preparing the adjusting journal entries use the account titles from the trial balance or the general ledger Post each of the entries below to the trial balance and calculate the adjusted account balances. 1) A one year insurance policy was purchased on March 31 for a premium of $18,000. In the space below show your calculations to receive full credit. Complete the required year-end (December 31, 2016) adjusting entry below. 18000/12.9 = 13500 Account description Debit Credit Insurance prepaid insurance 1390 13500 Post the above entry to the trial balance in the adjustment columns. 2) The company's employees are paid weekly and it is open for business Monday through Friday each week. The employees have been paid through Friday December 23. The total payroll for all employees is $925 per day and they are paid for all holidays occuring during the work week. In the space below show your calculation of the amount due to receive full credit. Record the adjustment to accrue the salary expense through December 31 (ignore the effect of any related payroll taxes). 5 op. 1925 Debit Credit Account description salaries expense Salaries 4625 payable 14665 Post the above entry to the trial balance in the adjustment columns. ACME Distribution, Inc. December 31, 2016 Adjusting Entries Continued 3) The company takes a physical Inventory count at the end of the year and adjust their inventory and cost of goods sold if there is a difference between the inventory value determined from the actual count compared to the value in the general ledger. The information below includes the number of units counted in inventory at the end of the year and the purchases of inventory during the month. Number of units held in the company's inventory at 12/31/2016 based on a count of the inventory was 18,841 unit A listing of purchases during the month of December are as follows: 6500 18841 Quantity Unit Total Dato Purchased 7570 Cost Cost December 5, 2016 15,700-$ 375 $ 58.875 December 14, 2016 0.500 $ Hooo 4.00 $ 26,000 December 21, 2016 7,500 $ 4.50 $ 33,750 4841 The company uses FIFO to account for its inventory cost What is the cost of the company's ending inventor round answer to nearest dollar and show your calculation below for full credit)? 7500 33,750 6500 26000 4841 77703.75 16153.75 77904 The balance in inventory per the unadjusted trial batance before making any adjustments is $70,327 What is the amount of the December 31 adjustment to Inventory cost (show your calculation below for full credit) 1424 -77903 79 327 1423.75 Complete below the adjusting journal entry necessary for inventory: Account description Debit Credit Inventory COGS 1424 1424) Post the above entry to the trial balance in the adjustment columns ACME Distribution, Inc. December 31, 2016 Adjusting Entries Continued 4) The company has estimated, based on historical information, that 4.5% of its accounts receivable will ultimately not be collected. Therefore, they provide an allowance for bad debts at that level Calculate the appropriate amount for the allowance at December 31, 2016 Accounts receivable balance per the unadjusted trial balance $ 42,400 Estimated allowance amount (Round answer to the nearest dollar and show your calculation below for full credit) "424006 045-1900 -1908 1908 Amount of adjustment needed to the allowance account (Show your calculation below to receive full credit). 42400. 045 Complete below the adjusting journal entry necessary for the allowance for bad debts: Debit Credit Account description bad dexot expense 1908 allowance for bad Post the above entry to the trial balance in the adjustment columns 1966 ACME Distribution, Inc. December 31, 2016 Adjusting Entries Continued 5) On July 31, 2016 the company purchased new warehouse equipment in the amount of $50,000. No depreciation has been recorded yet in 2016 for this new asset it is estimated to have a useful life of 8 years and a salvage value of $5,000. What is the depreciation expense for 2016 using the straight-line method? (Round answer to the nearest dollar and show your calculation below for full credit) 2344 50pcs - $0.0 /=5423 18=5625 5625.5/12=2343,75 5/12 - 0,41667 Complete below the adjusting journal entry necessary for depreciation: Account description Credit depreciation experte Lact, depreciation equipment Debit AT 2344 Post the above entry to the trial balance in the adjustment columns ACME Distribution December 31, 2016 Adjusting Entries Continued 6) The company issued a $75,000 bond dated August 1, 2016 to finance the purchase of warehouse equipment and provide the company additional cash. The bond has a contractual interest rate of 6.8% and was issued at par. The bond matures in 10 years and pays interest on July 31 and January 31 each year. What is the amount of interest be accrued at December 31, 20167 (Round answer to nearest dollar and show your calculation below for full credit). 2125 (75000 .068). 5/12 =2125 Complete below the adjusting journal entry necessary for accrued interest Account description Interest expense Credit Interest payable Debit 2125 2125 Post the above entry to the trial balance in the adjustment columns ACME Distribution, Inc. Balance Sheet As of December 31, 2016 and 2015 December 31, 2016 2015 $ Assets Current assets Cash Accounts receivable Allowance for bad debts Accounts receivable-net of allowance Inventory Supplies Prepaid insurance Prepaid rent Total current assets 3462D 42400 -1998 40492 7703.75 34,620 25,060 (1.200) 23,860 66.750 15200 2600 13614515 10.700 2.600 138,530 Property, plant and equipment Office equipment Warehouse equipment O 65000 30000 35,000 30.000 65,000 24.000 41,000 Less accumulated depreciation Net property, plant and equipment -260344 80656 Total assets 22445175 179,530 ACME Distribution, Inc. Balance Sheet As of December 31, 2016 and 2015 December 31, 2016 2015 $ Liabilities Current liabilities Accounts payable Salaries payable Interest payable Dividends payable Unearned revenue Total current liabilities 14550 4625 2125 14,550 470 0 21300 15.020 Long-term liability Bond payable Total liabilities 75000 15.020 1200 Stockholders' Equity Common stock, $10 par value, 100,000 shares authorized, 170 and 120 shares issued and outstanding Additional paid-in capital Retained earnings Total equity 00 162410 14510 200810 1,200 900 162.410 164,510 Total liabilities and equity $ 179,530 ACME Distribution, Inc. Income Statement For the Years Ended December 31, 2016 and 2015 Years Ended December 31, 2016 2015 Revenue: Sales Less: Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profil 607.480 1,480 620 605,380 461,200 144,180 74241 Operating expenses: Depreciation expense-Office equipment Depreciation expense-Warehouse equipment Bad debt expense Salaries expense Insurance expense Rent expense Advertising expense Utilities expense Total operating expense 2344 10% 4625 13500 1,200 2,500 640 48,000 18,060 24,000 15,900 13,000 123,300 20,880 Income from operations 0 2125 Other expense--Interest $ 20,880 Net income