You have been hired as an accountant for B&G Co., a corporation performing diverse consulting services in Detroit, Michigan. B&G Co. prepares financial statements on monthly bases.

Project Scope: You are to record the transactions for December, prepare the monthly adjustments, and prepare the financial statements using the Excel workbook provided. Then you will close the fiscal year and prepare the books for next year.

Directions: The assignment encompasses two files: Directions and Transactions (this Word document) and Forms (a separate Excel workbook). Your solution should be worked in Excel and the completed Excel workbook submitted for grading.

You should use Excel formula where appropriate and cell references to carry forward values and numbers between worksheets within the workbook. Simply typing values in Excel will result in a reduced score, even if the correct solution is provided. You should use formula wherever possible.

Analyze the narrative to prepare and record the transactions for December to the General Journal.

Post the journal entries to ledger accounts using T-accounts (Dont forget the opening balances from the information given on the post-closing trial balance on Nov. 30th.)

Prepare Income Statement and the Retained Earnings Statement for the month ended December 31, 2016 and Balance Sheet as of December 31, 2016 in good forms. Use the multi-step format for the Income Statement.

Close the temporary accounts, posting any net income or loss to retained earnings.

Due Date: Dec. 8th.

Transactions in December 2016:

Dec.	1	The equipment was completely destroyed by the regional earth quake. Loss by earthquake was recognized.
	1	Lent cash to another company and received a 2 year, $20,000 zero-interest-bearing note. The market rate of interest for a note of similar risk is 9 percent.
	1	Purchased new equipment that costs $12,000 and issued 1,000 shares of common stock (no-par stock) to the equipment seller.
	3	Cash payment on accounts payable amounted to $6,000.
	4	Sold land for $13,000 cash.
	10	Collected $15,000 as payment for amounts previously billed (suppose the payment was made within the discount period).
	13	One of the customers went bankrupt. B&G wrote off $2,000 account receivable.
	15	Paid monthly salaries of $20,000 to employees
	16	Issued 1,000 shares of preferred stock at $10 per share
	17	Purchased 500 shares of ABC corporations common stock at $15 (per share) and classify the securities as available-for-sales securities
	20	Found that the company incorrectly overstated its November account receivable and sales revenue by $1,000 and made a journal entry to correct the error.
	29	Performed services for a customer for $30,000 cash
	30	Performed $30,000 services on account with the following terms: 2/15, n/30. B&G records credit sales using the net method
	31	Dividends of $5,000 were declared and paid. $ 1,025 is paid to preferred stockholders and the rest is paid to the common stock holders.
	31	ABC corporation declared $ 5 dividend per share (to common stock holders). It will be paid in 2017.

* Additional information

1. Ignore tax effect.

2. Salaries expenses incurred but not paid prior to Dec. 31^st totaled $10,500.

3. The company received the bill for utility services (electricity) that the firm used during December in the amount of $6,000. The company will pay the bill in Jan. 2016.

4. $3,000 of supplies remained at the end of December.

5. The company use the Allowance method for possible accounts receivable write-offs in the future and estimated that 5% of the outstanding account receivable will not be collected.

6. The equipment purchased on Dec. 1^st depreciates $200 per month.

7. The common stock price of ABC Corporation on December 31st is still $ 15 per share.