Instructions:

**Must use formulas and linkto cells throughout Excel file. Please name your project; i.e. YourLast Name_302 Project & Your Last Name_302 Memo.See Project Scoring Rubric for additional detail related tograding.

                       A. Record the journal entries for the December transactions.**Mustshow formulas in cells.

B. Record the adjusting journalentries for 12/31/18.**Must show formulas in cells.

                       C. Set up a worksheet using Excel to:

• Prepare the Unadjusted Trial Balance as of December 31, bymaking the December adjustments (separate columns). **Must linkcells to journal entries.
• Enter the adjusting journal entries into worksheet (separatecolumns). **Must link cells to journal entries.
• Prepare the Adjusted Trial Balance as of December 31. **Useformulas.
• Complete the Income Statement and Balance Sheet columns of theworksheet. **Use formulas.

                       D. Prepare a multiple step income statement including calculationof weighted average shares and earnings per share. **Must link toworksheet.

                      E. Prepare a retained earnings statement. **Must link toworksheet.

                       F. Prepare a balance sheet (both years presented). **Must link toworksheet.

                       G. Prepare a cash flows statement. **Must link to comparativebalance sheets and income statements.

                       H. Compute the following (**Must link to income statement and/orbalance sheet):

• Current ratio
• Acid test ratio
• Debt to Equity
• Inventory Turnover
• Accounts Receivable Turnover
• At least 5 other ratios of your choosing

Using the memo format located in Microsoft Word, compile a memoincorporating the following information:   

• Based on the financial statements and ratios, describe thefinancial health of this company.
• Would you invest in this company? Why or why not? What wouldyour advice be to the president of the company?
• Memo must include what other information would be helpful inmaking your decision.
• Memo will be graded based on content, correct grammar &spelling and the student’s ability to summarize financial data in alogical manner indicating the student’s general understanding ofthe financial data. See Rubric for additional details.

Record the following entries in general journal form forDecember, 2018:

December 1: Purchased Land for a future building site for$500,000, paying $100,000 down and signed a 5%, 90-day note for thebalance.

December 3: Recorded sales on account of $45,000, 2/15, net 30.Cost of inventory was 23,500. JPJones using the net method foraccounting for sales.

December 4: Bought back 5000 shares of stock for $20 pershare.

December 4: Purchased 40,000 worth of equipment, 5 year life,$5,000 salvage value, for cash. Equipment will be depreciated usingthe straight-line method of depreciation.

December 5: Issued 5000 shares of restricted stock to its CFO.The stock has a fair value of $72,000. The service period relatedto this restricted stock is 3 years. Vesting occurs if the CFOstays with the company for 3 years. The par value of the stock is$1.

December 8: Purchased inventory of $44,000 on account and paid$30,000 on separate account.

December 15: Recorded cash sales of $24,000, cost of merchandiseinventory was $14,900.

December 16: Issued 1,000 shares of common stock at $16.00 pershare

December 17: Received payment related to sale on December 3.

December 20: Recorded sales on account of $113,000, cost ofmerchandise inventory was $75,000

December 24: Sold 2500 shares of Treasury Stock for $23 pershare.

December 26: Wrote off 3,500 in bad debt.

Record the following adjusting entries in generaljournal form as of December 31, 2018:

1. Supplies on hand at the end of the year: $450
2. Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 8year life, no salvage value and company uses double-decliningbalance method for its depreciation.
3. Included in the truck balance is a fully depreciated truck for$6,500 and a new truck valued at $50,000 which was purchased on1/1/17. The new truck has a 9-year life, no salvage value and thecompany uses the sum-of-the-years digits for its depreciationmethod on this asset.
4. The patent was purchased on 1/1/2013 for $100,000 and itsuseful life is 20 years.
5. $18,600 was paid on September 1, 2018 for six months rent
6. On 3/1/18, paid $22,500 for a 12-month insurance policy.
7. Declared dividends of $15,000 on December 31
8. The fair market value of the securities (classified asmarketable) is $19,500.
9. 4% of Accounts Receivable is estimated to be uncollectible.Company uses the allowance method for estimating its uncollectibleaccounts.
10. Accrued salaries expense of $6,000 and recorded Payroll taxexpense on account of $2300.
11. Had issued $200,000 of 6%, 10-year bond, dated 1/1/17 for$215,589 when the market rate was 5%. Interest is paid on June 30and January 1 using the effective interest rate method. The Junepayment is included in the Dec. 1 TB. (Additional credit awarded ifamortization table is included)
12. One month has passed since the issuance of restrictedstock.
13. Interest on 30 days of note payable should be accrued. (Assume360 days in a year for calculation)
14. Income tax rate is 25%

Additional Information:

During 2018, the following additional transactions occurred:(Hint: these are already included in 12/1/18 TB, but may be neededfor the Statement of Cash Flows)

1. Issued 5,000 shares of common stock, $1 par, for $35,000 onJune 30, 2018.
2. Some equipment was sold (original cost $10,000, book value$6,000) for $5,000 (do not consider in your #2 AJE)
3. All amortization and depreciation is recorded once a year onDecember 31.