$2)$ Recording transactions and preparing financial statements question $(40$ points; $1$ point for each journal entry, $1$ point for each T account, and $5$ points for each of the income statement and the balance sheet$)$

Vintage Incorporated$$s beginning of year X unclassified balance sheet is

$$

Assets

$$ Cash$100$

$$ Accounts receivable$50$

$$ Inventory$80$

$$ Prepaid rent$60$

$$ Gross property, plant and equipment$200$

$$ Accumulated depreciation$50$

$$ Net property, plant, and equipment$150$

$$ Total assets $440$

$$

Liabilities

$$ Accounts payable$70$

$$ Wages payable$40$

$$ Unearned sales revenue$30$

$$ Note payable$200$

$$ Total liabilities$340$

$$

Owners$$ equity

$$ Contributed capital$80$

$$ Retained earnings$20$

$$ Total owners$$ equity$100$

$$

$$ Total liabilities and owners$$ equity$440$

$$

For convenience, the answer sheet includes T accounts for all balance sheet accounts with the accounts$$ beginning balances inserted. During year X$,$ Vintage experienced the following accounting events

$$

a$.$ Sold inventory costing $$50$ for $$150$ on account

b$.$ Delivered inventory costing $$10$ in full satisfaction of the unearned sales revenue

c$.$ Paid accounts payable of $$40$

d$.$ Received cash of $$120$ from credit customers

e$.$ Used the rented space during the year for one$-$half of the period covered by the beginning$-$of$-$year prepaid rent.

f$.$ Employees earned wages of $$50$ and were paid $$30$ during the year

g$.$ Recorded depreciation expense for the year. The property, plant, and equipment being depreciated has an eight$-$year useful life and no salvage value.

h$.$ Recorded $$10$ interest expense on the note payable for the year.

i$.$ Paid $$100$ on the notes payable, of which $$10$ is an interest payment and $$90$ is a principal payment$).$

$$

$($Question $2$ continues on next page$)$

Required: Record the journal entries for the accounting events listed above on the answer sheet. Indicate which of these accounting events yield adjusting entries, either in whole or in part.$$ Post these journal entries to the T accounts provided on the answer sheet. Prepare the income statement for year X$.$ Record the closing journal entry and post it to the T accounts provided. Prepare the balance sheet at the end of year X$.$

Required: Record the journal entries for the accounting events listed above on the answer sheet. Indicate which of these accounting events yield adjusting entries, either in whole or in part. Post these journal entries to the T accounts provided on the answer sheet. Prepare the income statement for year X $.$ Record the closing journal entry and post it to the T accounts provided. Prepare the balance sheet at the end of year X $.$