Workbook Checklist To be completed before submitting. All values/title/information that could be linked were linked. All calculations and totals were completed with an Excel formula. 10 Column Worksheet: Adjusting entries DRs equal CRs. Adjusting entries are referenced. Totals should contain a dollar sign. 1 Page 2 1 Financial Statements: All account titles and values were linked from the 10-column worksheet. A heading was prepared for each of the financial statements. $ signs are placed appropriately. Assets = Liabilities + Equity Underlines are in the appropriate place There are no decimal points on the financial statements other than EPS. Analysis All questions on the analysis tab have been completed. A spellcheck was run on any worksheet that required manual entries or a written analysis.j reworks, corp 10-Column Worksheet March 31, 2022 ADJUSTMENTS INCOME STATEMENT BALANCE SHEET Debit Credit Debit Credit Debit Credit $ UNADJUSTED TB March 31, 2022 Debit Credit 47,892 35,675 79,236 $ 2,369 46,265 61,875 18.000 368,000 ADJUSTED TB March 31, 2022 Debit Credit 47892 35.675 79 236 2,369 46,265 61 875 18,000 368,000 - 147 865 8,801 22,600 48,600 147,865 8,801 22,600 49,600 1,350 17.500 1,350 17,600 Cash Short-term investments Accounts receivable, net Allowance for doubtful accounts Supplies Inventory Prepaid insurance Building improvements Accumulated depreciation - building improvements Furniture and fixtures Accumulated depreciation furniture and fixtures Customer lists Accounts payable Salaries and wages payable Interest payable Unearned revenue Income tax payable Long-term notes payable due 1.01.25 Common stock, 30,000 shares issued and outstanding Retained earnings Dividends Sales revenue, net Sales discount Sales return and allowance Rent revenue Interest revenue Cost of goods sold Supplies expense Bad debt expense Salaries and wages expense Insurance expense Depreciation expense Interest expense Income tax expense TOTALS 45.000 60,000 288,739 45,000 50,000 288,739 35,000 35.000 775,980 775,980 65.972 19,628 65,972 19,628 6.500 6,500 218,989 87,942 218.989 87,942 $ 1254,939 Page 1 $ 1 254,939 1,254,939 $ 1,254,939 NET INCOME Information available for Adiustine Entries Information Available for Adjusting Entries 1 The long-term note was issued on January 1, 2022. Interest on the note is a 4% annual rate. Record interest incurred on the first three months of the loan. 2 The company use the accounts receivable method at 5% to estimate bad debt. 3 The company completed a series of buildings improvements on March 1, 2022 that will be depreciated on a 15 year straight-line basis with no salvage value Building improvements have already been capitalized. Record one month of depreciation expense for building improvements. 4 The company short-term investment was purchased on February 1, 2022 and has a 6% annual interest rate in 2022. The interest revenue earned on the investment increases the principle balance of the investment account. 5 A physical count of supplies revealed that $18,587 of supplies were remaining as of March 31, 2022. 6 The accountant made an error and recorded $5,300 of sales revenue to the rent revenue account. 7 The company salaries and wages expense each week is based on a five day work week at $1,200 per day. Nine days of salaries and wages expense incurred need to be recorded that will be paid on April 1, 2022. 8 Furniture and fixtures was placed in service on November 1, 2021. The company uses straight-line deprecation, a salvage value of $6,000, and a 7 year usef There is only one account for depreciation expense, use a formula to add ADJE #3 and ADJE #8 together. The references should be 388. 9 Insurance of $18,000 was paid on January 1, 2022 to cover 12 months of insurance. O Income tax expense will need to be recorded based on the company income before tax (calculated on the income statement). The tax will be paid in April of 2022. The company has a 10% tax rate. Required 1 Record the adjusting entries in the adjustments columns. The Adjusted TB column will automatically update for you. All adjusting entries must be calculated within Excel using a formula. 2 Carry over the adjusted balances to either the income statement columns or the balance sheet columns. All balances must be carried over by using Excel to link the balances. 2 Prepare a multi-step income statement (including EPS) for the year-ended March 31, 2022. Bad debt, salaries, and insurance are selling expenses. Office supplies and depreciation are general and administrative expenses. Rent revenue is not part of daily operations. The company rents parking lot space to a local business. Earnings per share must be calculated using a formula. 3 Prepare a statement of stockholders' equity for the year-ended March 31, 2022. 4 Prepare a classified balance sheet as of March 31, 2022 All financial statements must be prepared utilizing Excel by linking to the 10-column worksheet account titles. All financial statements must be prepared utilizing Excel by linking to the 10-column worksheet financial statement balances. NO credit will be given to a workbook that has manually entered or copied and pasted information. Additional Information 1 PetWorks utilizes March 31 as their fiscal year-end. 2 The company issued 10,000 shares of common stock on March 31, 2022 - the issuance of shares have already been recorded. March 31, 2022 SALES REVENUE 14 1 1 Gross profit Total Points Available $ Signs Heading Formatting Line items Net income EPS (Less) Total Points Earned OPERATING EXPENSES Selling expenses 1 7 2 2 14 Total selling expenses General and administrative expense Page 1 Total general and administrative expenses Total operating expenses Total income from operations OTHER REVENUES AND (EXPENSES) Total income before tax Income tax expense Net income Hint: once you've calculated income before tax use this value to calculate income tax expense Don't forget to record income tax expense as an entry on your 10-column worksheet Earnings per share (EPS) Hint: to use Excel to calculate EPS you will need to divide, the symbol is divide in Excel. EPS should contain a dollar sign and be presented to the hundredths place. See Notes to the Financial Statements Total Points Available 10 1 1 1 $ Signs Heading Formatting Line items (Less) Total Points Earned 7 Retained Par Common Stock $ 60,000 1 Total Equity 348,739 Earnings 288,739 10 $ $ Balance March 31, 2021 Net income (Dividends) Balance March 31, 2022 See Notes to the Financial Statements Dec 31, 2022 13 ASSETS Current Assets 1 1 1 Total Points Available $ Signs Heading Formatting A=L+E RE Line items (Less) Total Points Earned 2 2 6 13 Total current assets Non-current Assets Page 1 TOTAL ASSETS LIABILITIES AND EQUITY Current Liabilities Total current liabilities Long Term Liabilities TOTAL LIABILITIES EQUITY Total equity TOTAL LIABILITIES AND EQUITY See Notes to the Financial Statements 5 Use the T-account provided to prove the retained earnings equation. Use Excel formulas. Manual entries will receive no credit. Retained Earnings Debit Credit 6 Calculate the net book value of the furniture and fixtures on March 31, 2022 after the ADJEs have been completed. Assume no changes are made to the depreciation related estimates. Calculate what the net book value of furniture and fixtures will be on March 31, 2025. Use Excel formulas. Manual entries will receive no credit. Furniture and Fixtures Furniture and Fixtures Net book value (NBV) 03.31.22 Net book value (NBV) 03.31.25 Workbook Checklist To be completed before submitting. All values/title/information that could be linked were linked. All calculations and totals were completed with an Excel formula. 10 Column Worksheet: Adjusting entries DRs equal CRs. Adjusting entries are referenced. Totals should contain a dollar sign. 1 Page 2 1 Financial Statements: All account titles and values were linked from the 10-column worksheet. A heading was prepared for each of the financial statements. $ signs are placed appropriately. Assets = Liabilities + Equity Underlines are in the appropriate place There are no decimal points on the financial statements other than EPS. Analysis All questions on the analysis tab have been completed. A spellcheck was run on any worksheet that required manual entries or a written analysis.j reworks, corp 10-Column Worksheet March 31, 2022 ADJUSTMENTS INCOME STATEMENT BALANCE SHEET Debit Credit Debit Credit Debit Credit $ UNADJUSTED TB March 31, 2022 Debit Credit 47,892 35,675 79,236 $ 2,369 46,265 61,875 18.000 368,000 ADJUSTED TB March 31, 2022 Debit Credit 47892 35.675 79 236 2,369 46,265 61 875 18,000 368,000 - 147 865 8,801 22,600 48,600 147,865 8,801 22,600 49,600 1,350 17.500 1,350 17,600 Cash Short-term investments Accounts receivable, net Allowance for doubtful accounts Supplies Inventory Prepaid insurance Building improvements Accumulated depreciation - building improvements Furniture and fixtures Accumulated depreciation furniture and fixtures Customer lists Accounts payable Salaries and wages payable Interest payable Unearned revenue Income tax payable Long-term notes payable due 1.01.25 Common stock, 30,000 shares issued and outstanding Retained earnings Dividends Sales revenue, net Sales discount Sales return and allowance Rent revenue Interest revenue Cost of goods sold Supplies expense Bad debt expense Salaries and wages expense Insurance expense Depreciation expense Interest expense Income tax expense TOTALS 45.000 60,000 288,739 45,000 50,000 288,739 35,000 35.000 775,980 775,980 65.972 19,628 65,972 19,628 6.500 6,500 218,989 87,942 218.989 87,942 $ 1254,939 Page 1 $ 1 254,939 1,254,939 $ 1,254,939 NET INCOME Information available for Adiustine Entries Information Available for Adjusting Entries 1 The long-term note was issued on January 1, 2022. Interest on the note is a 4% annual rate. Record interest incurred on the first three months of the loan. 2 The company use the accounts receivable method at 5% to estimate bad debt. 3 The company completed a series of buildings improvements on March 1, 2022 that will be depreciated on a 15 year straight-line basis with no salvage value Building improvements have already been capitalized. Record one month of depreciation expense for building improvements. 4 The company short-term investment was purchased on February 1, 2022 and has a 6% annual interest rate in 2022. The interest revenue earned on the investment increases the principle balance of the investment account. 5 A physical count of supplies revealed that $18,587 of supplies were remaining as of March 31, 2022. 6 The accountant made an error and recorded $5,300 of sales revenue to the rent revenue account. 7 The company salaries and wages expense each week is based on a five day work week at $1,200 per day. Nine days of salaries and wages expense incurred need to be recorded that will be paid on April 1, 2022. 8 Furniture and fixtures was placed in service on November 1, 2021. The company uses straight-line deprecation, a salvage value of $6,000, and a 7 year usef There is only one account for depreciation expense, use a formula to add ADJE #3 and ADJE #8 together. The references should be 388. 9 Insurance of $18,000 was paid on January 1, 2022 to cover 12 months of insurance. O Income tax expense will need to be recorded based on the company income before tax (calculated on the income statement). The tax will be paid in April of 2022. The company has a 10% tax rate. Required 1 Record the adjusting entries in the adjustments columns. The Adjusted TB column will automatically update for you. All adjusting entries must be calculated within Excel using a formula. 2 Carry over the adjusted balances to either the income statement columns or the balance sheet columns. All balances must be carried over by using Excel to link the balances. 2 Prepare a multi-step income statement (including EPS) for the year-ended March 31, 2022. Bad debt, salaries, and insurance are selling expenses. Office supplies and depreciation are general and administrative expenses. Rent revenue is not part of daily operations. The company rents parking lot space to a local business. Earnings per share must be calculated using a formula. 3 Prepare a statement of stockholders' equity for the year-ended March 31, 2022. 4 Prepare a classified balance sheet as of March 31, 2022 All financial statements must be prepared utilizing Excel by linking to the 10-column worksheet account titles. All financial statements must be prepared utilizing Excel by linking to the 10-column worksheet financial statement balances. NO credit will be given to a workbook that has manually entered or copied and pasted information. Additional Information 1 PetWorks utilizes March 31 as their fiscal year-end. 2 The company issued 10,000 shares of common stock on March 31, 2022 - the issuance of shares have already been recorded. March 31, 2022 SALES REVENUE 14 1 1 Gross profit Total Points Available $ Signs Heading Formatting Line items Net income EPS (Less) Total Points Earned OPERATING EXPENSES Selling expenses 1 7 2 2 14 Total selling expenses General and administrative expense Page 1 Total general and administrative expenses Total operating expenses Total income from operations OTHER REVENUES AND (EXPENSES) Total income before tax Income tax expense Net income Hint: once you've calculated income before tax use this value to calculate income tax expense Don't forget to record income tax expense as an entry on your 10-column worksheet Earnings per share (EPS) Hint: to use Excel to calculate EPS you will need to divide, the symbol is divide in Excel. EPS should contain a dollar sign and be presented to the hundredths place. See Notes to the Financial Statements Total Points Available 10 1 1 1 $ Signs Heading Formatting Line items (Less) Total Points Earned 7 Retained Par Common Stock $ 60,000 1 Total Equity 348,739 Earnings 288,739 10 $ $ Balance March 31, 2021 Net income (Dividends) Balance March 31, 2022 See Notes to the Financial Statements Dec 31, 2022 13 ASSETS Current Assets 1 1 1 Total Points Available $ Signs Heading Formatting A=L+E RE Line items (Less) Total Points Earned 2 2 6 13 Total current assets Non-current Assets Page 1 TOTAL ASSETS LIABILITIES AND EQUITY Current Liabilities Total current liabilities Long Term Liabilities TOTAL LIABILITIES EQUITY Total equity TOTAL LIABILITIES AND EQUITY See Notes to the Financial Statements 5 Use the T-account provided to prove the retained earnings equation. Use Excel formulas. Manual entries will receive no credit. Retained Earnings Debit Credit 6 Calculate the net book value of the furniture and fixtures on March 31, 2022 after the ADJEs have been completed. Assume no changes are made to the depreciation related estimates. Calculate what the net book value of furniture and fixtures will be on March 31, 2025. Use Excel formulas. Manual entries will receive no credit. Furniture and Fixtures Furniture and Fixtures Net book value (NBV) 03.31.22 Net book value (NBV) 03.31.25