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1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below: A physical count of inventory revealed $440,020.00 of inventory A physical count of supplies revealed $7232.00 of supplies Depreciation for the year was $24,005 The balance in prepaid rent represents an amount paid Dec. 1st for one year Even though the notes receivable aren't due until April 30 2019 they will include 8% interest. The Dec. 31 balance represents a 6 month note originating on Nov. 1st 2018. Dec. 31st is a Thursday and $11,000 of salaries for a five day workweek are paid every Friday. 1% of the accounts receivable are estimated to be uncollectible. We use the allowance method to account for uncollectibles. 2. On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2018 Additional information: Furniture was bought for cash and equipment was bought on credit. No assets were sold. Cash dividends of $50,000 were paid during the year. Use the indirect method for creating the Statement of Cash Flows 3. Answer these questions: a. How would the financial statements be different if (each of these scenerios are independent): assets liabilities retained earnings We had missed counting incoming inventory of $1,700 We had forgotten to record depreciation We had forgotten to count supplies The bookkeeper had thought the $40,000 we received 12-1 was for past services instead of services to be performed in January The bookkeper wasn't aware that the note payable includes 8% interest to be paid at maturity calculated on the average balance) (record how much the assets, liabilities, and retained earnings would change and indicate the direction of change with a + or - so that a poitive number would indicate it is too high by that amount and a negative number indicates it is too low by that amount.) b. How would the financial statements be different if all of these scenerios happened in 2018? $45,559.00 $4,690.00 $4,258.00 $459,871.00 $2,000.00 $88,331.00 Building Balance Sheet 1/1/2017 Current assets Cash Accounts receivable Office Supplies Inventory Pre-paid rent Notes Rec Fixed assets $252,845.00 (Less Accumulated Depreciation) -$157,000.00 Furniture Equipment Land Total assets Current liabilities Salaries Payable Accounts payable Long term liabilities Notes Payable Total Liabilities Capital Stock Retained Earnings Total Liabilities and Shareholder Equity $95,845.00 $5,000.00 $56,000.00 $42,000.00 $803,554.00 $3,000.00 $88,437.00 $456,286.00 $547,723.00 $100,000.00 $155,831.00 $803,554.00 ABC Inc UNADJUSTED UNTRIAL BALANCE 12/31/18 Cash Accounts receivable Office Supplies Inventory Pre-paid rent Building Accumulated Depreciation Furniture Equipment Notes Rec Land Salaries Payable Accounts payable Notes Payable Capital Stock Retained Earnings Sales Revenue COGS Salaries Expense Rent Expense DR CR $7,255.00 $1,258.00 $11,487.00 $441,742.00 $4,000.00 $252,845.00 $157,000.00 $9,000.00 $62,000.00 $81,612.00 $42,000.00 $5,000.00 $83,125.00 $440,035.00 $100,000.00 $105,831.00 $163,208.00 $81,000.00 $42,000.00 $18,000.00 $1,054,199.00 $1,054,199.00 1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below: A physical count of inventory revealed $440,020.00 of inventory A physical count of supplies revealed $7232.00 of supplies Depreciation for the year was $24,005 The balance in prepaid rent represents an amount paid Dec. 1st for one year Even though the notes receivable aren't due until April 30 2019 they will include 8% interest. The Dec. 31 balance represents a 6 month note originating on Nov. 1st 2018. Dec. 31st is a Thursday and $11,000 of salaries for a five day workweek are paid every Friday. 1% of the accounts receivable are estimated to be uncollectible. We use the allowance method to account for uncollectibles. 2. On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2018 Additional information: Furniture was bought for cash and equipment was bought on credit. No assets were sold. Cash dividends of $50,000 were paid during the year. Use the indirect method for creating the Statement of Cash Flows 3. Answer these questions: a. How would the financial statements be different if (each of these scenerios are independent): assets liabilities retained earnings We had missed counting incoming inventory of $1,700 We had forgotten to record depreciation We had forgotten to count supplies The bookkeeper had thought the $40,000 we received 12-1 was for past services instead of services to be performed in January The bookkeper wasn't aware that the note payable includes 8% interest to be paid at maturity calculated on the average balance) (record how much the assets, liabilities, and retained earnings would change and indicate the direction of change with a + or - so that a poitive number would indicate it is too high by that amount and a negative number indicates it is too low by that amount.) b. How would the financial statements be different if all of these scenerios happened in 2018? $45,559.00 $4,690.00 $4,258.00 $459,871.00 $2,000.00 $88,331.00 Building Balance Sheet 1/1/2017 Current assets Cash Accounts receivable Office Supplies Inventory Pre-paid rent Notes Rec Fixed assets $252,845.00 (Less Accumulated Depreciation) -$157,000.00 Furniture Equipment Land Total assets Current liabilities Salaries Payable Accounts payable Long term liabilities Notes Payable Total Liabilities Capital Stock Retained Earnings Total Liabilities and Shareholder Equity $95,845.00 $5,000.00 $56,000.00 $42,000.00 $803,554.00 $3,000.00 $88,437.00 $456,286.00 $547,723.00 $100,000.00 $155,831.00 $803,554.00 ABC Inc UNADJUSTED UNTRIAL BALANCE 12/31/18 Cash Accounts receivable Office Supplies Inventory Pre-paid rent Building Accumulated Depreciation Furniture Equipment Notes Rec Land Salaries Payable Accounts payable Notes Payable Capital Stock Retained Earnings Sales Revenue COGS Salaries Expense Rent Expense DR CR $7,255.00 $1,258.00 $11,487.00 $441,742.00 $4,000.00 $252,845.00 $157,000.00 $9,000.00 $62,000.00 $81,612.00 $42,000.00 $5,000.00 $83,125.00 $440,035.00 $100,000.00 $105,831.00 $163,208.00 $81,000.00 $42,000.00 $18,000.00 $1,054,199.00 $1,054,199.00

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