Yabba-Dabba-Do Case Project Part II REQUIREMENTS: 1. Complete adjusting journal entries FOR THE MONTH OF JANUARY. Descriptions are not needed. 2. Update T-Accounts with adjusting journal entries. Please balance the T-accounts (again) after you post the adjusting journal entries. 3. Create an Adjusted Trial Balance FOR THE MONTH OF JANUARY 4. Prepare the Financial Statements (Income Statement, Statement of Retained Earnings, and CLASSIFIED Balance Sheet) FOR THE MONTH OF JANUARY. Please format correctly and use examples from your book. 5. Write the Closing Entries & Update T-Accounts 6. Please round to two decimals. 7. Steps 1-9 must be completed in Excel template located on Canvas Adjusting Journal Entries 44 points T-Accounts 5 points Trial Balance 10 points Financial Statements 15 points Closing Entries 12 points Part II Total 86 points Additional Information for Yabba-Dabba-Do Snow Removal Services a. On 01/31, the Office Supplies balance was $849. b. On 01/31, Yabba-Dabba-Do completed all snow removal services for the month of January in regards to customer Brad Stone-Pitt. c. 01/31 Monthly depreciation on equipment. Salvage value is $1000 with a use-full life of 4 years. Please round the monthly depreciation to two decimals d. On 01/31, accrued salary expense 01/15-01/30 was $3,000. Salary will not be paid until 02/15. e. Completed a job on 01/31, but will not be paid ($1,000) by Edna Flintstone (Freds mother) until 02/1. f. Received 5% of the outstanding balance of AR. Be sure to include all AR transactions through 1/31 including adjusting journal entries (hint Adjusting Journal Entry E) g. Record the interest accrued (3.75%) on the mortgage balance of $158,497. Please see table on next page to calculate interest. Interest accrued indicates interest has not been paid, but has accumulated on the loan. h. Record the interest accrued on the $35,000 (8%) note payable. Please see table on next page to calculate interest. Interest accrued indicates interest has not been paid, but has accumulated on the loan.

Yabba-Dabba-Do Case Project Part II i. Record the interest accrued on the $8,100 note payable that has a 10% interest rate. Please see table on next page to calculate interest. Interest accrued indicates interest has not been paid, but has accumulated on the loan. HINT...the loan was taken out on 1/15 and the adjusting journal entry is completed on 1/31. j. One month of Prepaid Insurance has expired. k. Yabba Dabba Do remitted (paid) the balance in the sales tax payable t-account. There are a total of 11 adjusting journal entries. Round all figures to two decimals. Hints on Adjusting Journal Entries. Depreciation can only be taken for the amount of time the asset has been owned. Please look carefully at the PURCHASE DATE of the asset you will depreciate accordingly. Interest must be calculated at the end of the month. If the loan was taken out Jan 15th, only half-a-month of interest would be expensed. Calculations of Interest Terms of Note Payable Interest Computation for 1 month. $ 730, 12%, 120 days $ 730 x .12 x 1/12 = $ 7.30 $1,000, 9%, 6 months $1,000 x .09 x 1/12 = $ 7.50