Financial Statement Homework #1 Name Insert Unadjusted Trial Balance HERE: 106,000 28,000 7,500 30,000 110,000 15,000 80,000 Everly Company Unadjusted Trial Balance December 31, 2018 Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total 46,000 8,000 17,900 12,500 50,000 46,000 47,600 5,000 465,500 12,000 45,000 2,000 48,000 10,000 143,000 14,000 3,000 35,000 693,500 693,500 Page 1 of 8 Part 1: Prepare adjusting journal entries using the unadjusted trial balance provided to you in Question 1 of the Financial Statement Homework quiz on D2L and the information provided below. The Unadjusted Trial Balance can be downloaded from the D2L quiz by right clicking on the image and saving it to your computer. When preparing the adjusting journal entries, use only the account names provided in the Unadjusted Trial Balance (do not create any new account names and do not abbreviate account names). 1. The prepaid insurance balance reflects a 12-month insurance policy which started on Sept. 1. 2018, and no adjustments were made from Sept. 1 - Dec. 31, 2018. Write the adjusting journal entry for Dec. 31, 2018. Insurance expense Prepaid insurance 2. Additional depreciation expense of $15,000 needs to be recorded for the year ended 2018 Depreciation expense $15,000 $15,000 3. Wages due to employees of $8,000 need to be recorded at year end. These wages will be paid to employees on January 9, 2019. (next month) Wage expense $8,000 Wage payable $8,000 4. The company has completed $12.900 of the amount in unearned revenue as of Dec. 31" Unearned revenue $12,900 Serviced revenue $12,900 5. In Dec. the company provided services worth $8,000 to clients that were not yet billed or recorded by Dec. 31. Record the additional revenue. Account receivable $8,000 Service revenue $8,000 6. On Dec 31" the company completed a physical count of their supplies and determined that only $4,000 of supplies are still on hand. Supplies expense $2,000 supplies Part 2: Post the adjusting journal entries to t-accounts: (Hints on getting started: Above each T-account, write the account name of each account affected by an adjusting journal entry (you may not need to use all of the T-accounts). Write in the unadjusted balance for each of these accounts from the Unadjusted Trial Balance provided in question 1 of your D2L quiz (the unadjusted balance might be a debit, a credit, or zero balance). Now you are ready to post your adjusting journal entries from Part 1 to the corresponding T-accounts and calculate adjusted balances. T T Page 3 of 8 Part 3: Prepare the Adjusted Trial Balance (i.e., after the previous 6 journal entries are posted) (Company Name) (Date) Adjusted Trial Balance Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total Part 4: Based on the Adjusted Trial Balance provided in Question 2 of the Financial Statement Homework quiz on D2L, prepare in proper format the Income Statement, the Retained Earnings Statement, and a Classified Balance Sheet (in this order). Include all appropriate headings, dates, titles, subtotals and totals. You may not use all the lines provided in the statement formats below). The Adjusted Trial Balance can be downloaded from the D2L quiz by right clicking on the image and saving it to your computer. DO NOT USE THE ADJUSTED TRIAL BALANCE CREATED IN PART 3. Insert Adjusted Trial Balance Image HERE: Jackson Contractors Adjusted Trial Balance December 31, 2018 Cash 109,500 Accounts Receivable 25,000 Supplies 10,000 Prepaid Insurance 28,000 Inventory 107,500 Vehicle 20,000 Equipment 74,000 Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends 3,000 Service Revenue Repair Expense 12,500 Delivery Expense 37,600 Depreciation Expense 16,000 Rent Expense 50,000 Insurance Expense 15,000 Wages Expense 123,500 Supplies Expense 11,500 Interest Expense 3,000 Income Tax Expense 31,000 Total 677,100 35,000 9,500 13,000 5,500 45,000 40,000 50,100 479,000 677,100 Jackson Contractors (Company Name) Income Statement (Date) (Company Name) Statement of Retained Earnings (Date) (Be sure to include all the necessary subtotals and totals as outlined in Chapter 2 for a Classified Balance Sheet. You may not need to use all the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Balance Sheet, use the right column for subtotals and totals.) (Company Name) Balance Sheet (Date) Page 7 of 9 Part 5: Answer the following questions using the above completed financial statements: What is the dollar amount for Net Income or Net Loss? What is the dollar amount for Ending Retained Earning? What is the dollar amount for Total Current Assets? What is the dollar amount for Total Current Liabilities? What is the dollar amount for Total Stockholders Equity? What is the dollar amount for Total Assets