Year 1 Transactions for Adomain
Transaction #	Date	Event
1	January 1	Purchased a patent for $32,000 in cash
2	March 15	Paid $18,500 in cash for long-term assets
3	April 1	Prepaid $36,000 for rent for the next 12 months and recorded the transaction as an asset.
4	April 1	Issued 1000 common shares to investors for $60,000
5	April 1	Sold inventory on account for $120,000 (a). The cost of the inventory was $16,000 (b). Also, paid a sales commission on this sale of $10,000 (c).
6	April 5	Paid $13,400 in cash for costs related to research and development of new products.
7	May 1	Received $24,000 in cash in advance for services. The services will be provided over the course of 6 months beginning on Dec 1 of this year.
8	May 1	Received the cash to settle $65,000 of the receivables recorded on April 1.
9	June 30	Paid last year's income tax liability.
10	July 31	Purchased inventory for $15,000. Paid $3,000 in cash and recorded an Accounts Payable for the remaining balance.
11	July 31	Received $20,000 in cash relating to the Accounts Receivable in transaction 5.
12a	Sept 30	Purchased supplies for $7,000 in cash. The accountant accidentally recorded the supplies in the Accounts Receivable account.
12b	October 1	The accountant recorded an adjustment to correct the entry made in 12a (so that the accounts will reflect what should have been recorded ).
13	October 1	Purchased marketable securities for $6,000 in cash.
14	October 1	Borrowed $20,000 from a local bank and signed a 3-year note payable promising to pay 10% interest per year (interest is due and recorded on Dec 31).
15	Dec 1	Employee salaries earned amounted to $34,000. The company paid $4,000 on Dec 1 and the remainder will be paid on Jan 1, Year 2.
16	Dec 31	Income Tax for Year 1 is $5,500. $3,500 is paid this year and the remainder will be paid on June 30 of Year 2.
17	Dec 31	Record the appropriate adjusting entry related to transaction 3.
18	Dec 31	Record the appropriate adjusting entry related to transaction 7.
19	Dec 31	$2000 of supplies are still on hand on Dec 31. Record the appropriate adjusting entry to reflect the supplies used during the year. (Refer to transaction 12.)
20	Dec 31	Record the appropriate adjusting entry related to the note payable described in transaction 14 (assuming interest will be paid in Year 2).

Part B: The second part of this assignment is very similar to Part A. You may reference the solution to the transaction analysis spreadsheet from Part A to help you in Part B. Your assignment in Part B is to first prepare journal entries in the General Journal tab of this spreadsheet for the same transactions that you analyzed in Part A. After preparing your journal entries, post your entries to the T-accounts in the General Ledger (T-Accounts) tab. Start by inserting the beginning balances in the T-accounts from the Year 0 Balance Sheet and then post your journal entries from the General Journal. Next, calculate the ending balance in each account. Then, prepare Year 1 financial statements based on the ending balances in each T-account. Finally, go back to the General Journal and prepare closing entries. Post your closing entries to the General Ledger T-accounts. Finally, prepare a Post-Closing Trial Balance, Hints: Whenever possible, use formulas to reference cells. This not only reduces the likelihood of error, it makes it easier for us to understand why you got the number you did. This applies to all assignments. Use dates or transaction numbers in your T-accounts to facilitate tracing your journal entries to the T- accounts. Note that when you prepare closing entries. You will ral Adomain Income Stai mnt for Year ended December 31, Yea $145,500 4 Revenues 5 Sales Revenue Expenses 7 Cost of Goods Sold 8 R&D Expense 9 Sales Commissions 10 Marketing Expense 11 Rent Expense 12 Other Operating Expenses 13 Income from Operations 14 Interest Income 15 Income before Taxes 16 Income Tax Expense 17 Net Income 12,500) (9,100) (3,000) (9,000) (5,700) (23,000) $34,200 400 34,600 (8.500) 26.100 Adomain B Adomain Balance Sheet As of December 31, Year 0 4 Assets 5 Cash 6 Marketable Securities 7 Accounts Receivable 8 Inventory 9 PP&E (net) 10 Intangible Assets 11 Other Long-Term Assets 12 Total Assets $80,000 6,700 20.000 25,000 34,700 10,500 15,000 $191,900 13 14 Liabilities & Equity 15 Accounts Payable 16 Notes Payable 17 Unearned Revenue 8 Income Tax Payable 9 Common Stock Retained Earnings Total Liabilities & Equity $45,000 28,500 50,000 4,300 45,000 19,100 $191,900 "Assume these notes represent non-interest-be FORMULAS MUST BE USED DO NOT HARD C PPSE AN NUMBER 3 EB IP Acours Receivable Accounts Payable Cost of Goods Sold Structions Y O Income statement Yr 0 Balance Sheet Transactions General Journal G ral Ledger (T. Accounts V inca Number Supples Expense Uneamed Revenu Interest Expense Income TaxPowe Income Expense Sales Payable Y O income Statement Yr O Balance Sheet Transactions General Joun e ral Ledger (T-Accounts Adomain Income Statement HN v For the year ended December 31, Year 1 Revenues Expenses 10 11 12 13 14 Income from Operations 15 16 Income before Taxes 17 18 Net Income 19 Adomain Balance Sheet As of December 31, Year 1 2 4 Assets C van w 11 12 13 14 Total Assets 15 16 Liabilities & Equity 17 18 19 20 21 SNN 25 Total Liabilities & Equity Clipboard Font Alignment 1 : * f Post-Closing Trial Balance Post-Closing Trial Balance DR CR mina dan o 11 Total Part B: The second part of this assignment is very similar to Part A. You may reference the solution to the transaction analysis spreadsheet from Part A to help you in Part B. Your assignment in Part B is to first prepare journal entries in the General Journal tab of this spreadsheet for the same transactions that you analyzed in Part A. After preparing your journal entries, post your entries to the T-accounts in the General Ledger (T-Accounts) tab. Start by inserting the beginning balances in the T-accounts from the Year 0 Balance Sheet and then post your journal entries from the General Journal. Next, calculate the ending balance in each account. Then, prepare Year 1 financial statements based on the ending balances in each T-account. Finally, go back to the General Journal and prepare closing entries. Post your closing entries to the General Ledger T-accounts. Finally, prepare a Post-Closing Trial Balance, Hints: Whenever possible, use formulas to reference cells. This not only reduces the likelihood of error, it makes it easier for us to understand why you got the number you did. This applies to all assignments. Use dates or transaction numbers in your T-accounts to facilitate tracing your journal entries to the T- accounts. Note that when you prepare closing entries. You will ral Adomain Income Stai mnt for Year ended December 31, Yea $145,500 4 Revenues 5 Sales Revenue Expenses 7 Cost of Goods Sold 8 R&D Expense 9 Sales Commissions 10 Marketing Expense 11 Rent Expense 12 Other Operating Expenses 13 Income from Operations 14 Interest Income 15 Income before Taxes 16 Income Tax Expense 17 Net Income 12,500) (9,100) (3,000) (9,000) (5,700) (23,000) $34,200 400 34,600 (8.500) 26.100 Adomain B Adomain Balance Sheet As of December 31, Year 0 4 Assets 5 Cash 6 Marketable Securities 7 Accounts Receivable 8 Inventory 9 PP&E (net) 10 Intangible Assets 11 Other Long-Term Assets 12 Total Assets $80,000 6,700 20.000 25,000 34,700 10,500 15,000 $191,900 13 14 Liabilities & Equity 15 Accounts Payable 16 Notes Payable 17 Unearned Revenue 8 Income Tax Payable 9 Common Stock Retained Earnings Total Liabilities & Equity $45,000 28,500 50,000 4,300 45,000 19,100 $191,900 "Assume these notes represent non-interest-be FORMULAS MUST BE USED DO NOT HARD C PPSE AN NUMBER 3 EB IP Acours Receivable Accounts Payable Cost of Goods Sold Structions Y O Income statement Yr 0 Balance Sheet Transactions General Journal G ral Ledger (T. Accounts V inca Number Supples Expense Uneamed Revenu Interest Expense Income TaxPowe Income Expense Sales Payable Y O income Statement Yr O Balance Sheet Transactions General Joun e ral Ledger (T-Accounts Adomain Income Statement HN v For the year ended December 31, Year 1 Revenues Expenses 10 11 12 13 14 Income from Operations 15 16 Income before Taxes 17 18 Net Income 19 Adomain Balance Sheet As of December 31, Year 1 2 4 Assets C van w 11 12 13 14 Total Assets 15 16 Liabilities & Equity 17 18 19 20 21 SNN 25 Total Liabilities & Equity Clipboard Font Alignment 1 : * f Post-Closing Trial Balance Post-Closing Trial Balance DR CR mina dan o 11 Total