5. In the space provided below, prepare an income statement, a capital statement (statement of owner's equity), and a balance sheet. Use the corrected worksheet (P2WORK4) as a basis for your work. Assume no additional owner investments were made during the year. 0.001 aspasovA incolia 70.80 0.08 0.5 0.4. 06 Solbeleboog in 200 fee sise siqxo ynA espai enclen span to a de singe gene torttiw slit ent ecola,ignos al thomas er her Adjustment information is as follows: a. Supplies on hand as of June 30, 2013, $450. Cr 1920 (2370-450) g b. Insurance premiums that expired during the year, $2,420. expense c. Depreciation on equipment during the year, $1,500. expense d. Included in the rent expense of $30,000 is $1,200 that is prepaid for July 2013. Vexpense e. Salaries accrued but not paid at June 30, 2013, $1,440. expence f. Merchandise inventory on June 30, 2013, $68,864. > C8 864- 47964 = 20900 S REQUIREMENT L remove from purches to set cogs 1. As the accountant for Sports Connection, you have been asked to prepare adjusting entries and financial statements to complete the accounting cycle for the year. A worksheet called P2WORK has been provided to assist you in this assignment. As you review this worksheet, it should be noted that columns H and I will automatically change when you enter values in Adjustment information is as follows: QUE b. Insurance premiums that expired during the year, $2,420. Texpense c. Depreciation on equipment during the year, $1,500.xpense d. Included in the rent expense of $30,000 is $1,200 that is prepaid for July 2013. Vexpense e. Salaries accrued but not paid at June 30, 2013, $1,440. expense Emesta is = 20 900 f. Merchandise inventory on June 30, 2013, $68,864. C8 864-47964 remove oonahon to get Gogs REQUIREMENT poworia ado & from purcha 1. As the accountant for Sports Connection, you have been asked to prepare adjusting entries and financial statements to complete the accounting cycle for the year. A worksheet called P2WORK has been provided to assist you in this assignment. As you review this worksheet, it should be noted that columns H and I will automatically change when you enter values in columns E and G. 2. Open the file P2WORK from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then enter the adjusting amounts in columns E and G. Also, in column D or F, insert the letter corresponding to the adjusting entry (a-e). (Note: Not all textbooks handle the change in inventory as an adjustment. Use the method for handling inventory that is prescribed in your textbook.) Column A is "frozen" on the screen to assist you in completing requirement 3. 3. Complete the income statement and balance sheet by entering formulas in columns J, K, L, and M that reference the appropriate cells in column H or I. Net income will be automatically calculated at the bottom of the income statement and balance sheet columns. Check to be sure that these numbers are the same. Enter your name in cell A1. Save the completed file as P2WORK3. Print the worksheet. Also print your formulas using landscape orientation and fit-to-1 page scaling. Check figure: Net income (cell J34), $37,902. WHAT-IF ANALYSIS 000.08 4. You discover that your boss has mistakenly provided you with the wrong information on two of the adjusting entries. Expired insurance premiums should have been $3,420, and unpaid salaries should have been $2,440. Make the corrections on your worksheet and save the corrected file as P2WORK4. Reprint the worksheet. CHART ANALYSIS pietate amonning nogen woled bebivong songs erti n Jane ponaled s brs (yupe enwo to 6. Open P2WORK4 and click the Chart sheet tab. On the screen, a pie chart shows the percentage composition of the total expenses of Sports Connection. Enter the percentages in the spaces provided. National Averages Sports Connection Cost of goods sold 65.0% % Salaries 20.0 Utilities 4.0 Depreciation 4.0 Insurance C3.00, you hav Supplies Rent Advertising 2.0 1.0 1.0 100.0% 100.0% Compare the percentages of Sports Connection with the national statistics provided. Comment on the differences noted. Why might depreciation, utilities, and rent (as a group) be so far off from the national percentages? Any explanation for salaries? Cost of goods sold? When the assignment is complete, close the file without saving it again. A Save