2 documents attached with instructions.preparing a closing worksheet. This is for an accounting course.

02_008 SP3 Script In this problem, you prepare a closing worksheet for Unnamed Company. You are given the unadjusted trial balance in alphabetical order. Please read the problem carefully as it includes instructions and other details you will need. The SP process is similar to how your work might be reviewed on the job. Rarely does your supervisor find time to sit down and tutor you step by step. You are usually pretty much on your own. When you complete your work, you submit it for review. Afterwards, you may have a meeting, but you are more likely just to get some notes with what needs to be done next. Please work on SP3 promptly and submit it as soon as you can. You can submit it early or even before you are completely done if you have a question. Please do not postpone or delay as this problem is the foundation for Chapters two through five. If you have not completed SP3, you may not understand what's going on in business combinations. In SP3, you complete the financial work for only one company. In business combinations you combine financial work for two companies. You can look at the Advanced Company example for guidance. Be careful, though, because the Advanced Company has a loss and Unnamed Company in this problem has a profit. Worksheet Closing Process - Review Problem Solve this problem using a worksheet with 6 pairs of columns. 1. Accounts of Unnamed Company at December 31, 2016: Accounts Payable Accounts Receivable Accumulated Depreciation - PPE Allowance for Uncollectible Accounts Receivable Allowance for Uncollectible Notes Receivable Bonds Payable Capital Stock Cash Depreciation Expense Discount on Bonds Payable Dividends Dividends Payable Insurance Expense Interest Revenue Merchandise Inventory (1/1) Miscellaneous Expense Mortgage Payable Notes Payable Notes Receivable Paid-in Capital in Excess of Par Purchases Property, Plant and Equipment Retained Earnings Sales Returns and Allowances Sales Revenue Supplies Inventory Wages Expense $ 55,200 74,000 290,000 3,700 2,000 300,000 400,000 64,000 81,000 2,600 10,000 3,000 47,000 6,200 24,500 6,800 230,000 141,000 79,000 220,000 170,000 1,480,000 83,500 5,000 413,500 7,200 97,000 Prepare an Unadjusted Trial Balance with these accounts using their \"natural balances\" in the first pair of columns on your worksheet, one labeled \"debit\" and the other labeled \"credit.\" Accounts should appear in the following order: Assets with contra-assets, from current to long-term, then Liabilities with contra-liabilities, from current to long-term, then permanent (or real) Equity accounts, then temporary (or nominal) accounts (mostly expenses and revenues). Refer to the Advanced Company example for a review of a company using the periodic inventory method. Note that the Advanced Company example has fewer accounts than this problem and has a net loss. 2. After the company's trial balance was prepared, some adjustments were identified. Post these adjusting entries in the next set of two columns. The adjustments may require adding new accounts out of order at the bottom of the worksheet. a. A patent had been acquired for $8,000 by issuing a Note Payable on December 21. Neither the patent nor the note had been posted yet. b. A review of the insurance policy indicates that $5,000 of the insurance already paid for covers the following fiscal year. c. Wages of $3,700 had been earned by employees but not paid by December 31. d. Sales Revenue includes $12,000 that had been received from a customer to pay for goods that will not be delivered until January 15. e. A count of the supplies inventory shows that only $3,000 of supplies remains at the end of the year. 3. Show the adjusted account balances in the next pair of columns labeled \"Adjusted Trial Balance.\" 4. Extend the income statement information to the next pair of columns along with the value of the beginning inventory. Label these columns "Income Statement." These columns will hold the information that will be used to prepare the Income Summary journal entries and the Income Statement. The Merchandise Inventory at December 31 was $45,500. Refer to the Advanced Company problem to see how to handle the beginning and ending inventory values on your worksheet. The two columns will not balance. The difference will equal the income or loss. 5. This company uses a periodic rather than a perpetual inventory. Therefore, the worksheet impact of updating the inventory will be seen in the Income Statement set of columns. The beginning inventory will be treated as an expense considered in figuring income. The ending inventory will be treated as a reduction of expense. The ending inventory will also appear among the assets listed in the Balance Sheet set of columns. This will assure that the income statement columns include all the parts of the Cost of Goods Sold Section that later appears on the Income Statement. 6. Extend the Retained Earnings Statement information (beginning retained earnings, net income, dividends) to the next two columns labeled "Retained Earnings. The difference between the two columns will equal the ending Retained earnings balance. 7. Extend all remaining permanent account totals to the final set of columns which will be the post-closing trial balance, or the Balance Sheet information. These columns should balance. Then write out the closing entries in good journal entry form. You don't need to write out the adjusting entries. 8. Please submit this problem on or before the due date using the correct Journal on Blackboard