Having recorded, posted (to the General Ledger) and began the '12-31-22 Trial Balance' worksheet with the...

 

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Having recorded, posted (to the General Ledger) and began the '12-31-22 Trial Balance' worksheet with the unadjusted balances, we are now going to prepare the Adjusting Journal Entries so that we can prepare the four fundamental financial statements. a. The payroll summary for the week ended Friday, December 31 contained the following information (for simplification purposes, payroll tax expenses have been included in the amounts): Office and Administrative Salaries- $ 17,613 Sales Salaries and Commissions - 3,666 Delivery and Warehouse Wages- Total Wages Paid The bi-weekly pay period will end on January 7 2023. b. Interest accrued at December 31, 2022 is composed of the following... Note Receivable From: Coconino Contractors, Inc. Bilder Construction Company Beverly's Building Products Date of Note Receivable 2,119 $ 23,398 11/1/2022 Face Value $ 45,00 0 12/16/2022 $ 45,20 0 12/26/2022 $ 14,00 0 Interest Rate (Annual) 12% 14% 12% Term of note 3 Months (90 Days) 6 Months (180 Days) 6 Months (180 Days) # of Days Interest to be Accrued Interest to be accrued 12/31/22 C. No interest payments were made on the company's $15,000 12% note payable during 2022. d. A count of office supplies at year-end indicated remaining office supplies of $3,750 at December 31. e. Plant and Equipment to be depreciated are composed of the following... Date Acquired Asset Building Trucks and Lifts: Truck #1 Truck #2 Lift #1 (Sold) Lift #2 Lift #3 9/1/2014 $306,000 4/1/2015 9/1/2017 Cost 3/29/2015 9/16/2016 4,500 5,000 Estimated Salvage Depreciation Current Depn. Current Year Year's Per Depreciation U sage or Life Value Method Usage Unit 28,000 60,000 Miles 33,000 60,000 Miles 25 Years $20,000 10 Years. 10 Years Straight Line: Miles Driven 3,100 4,200 Miles Driven 500 Straight Line 500 Straight Line: 12,000 14,000 f. Fanphysi&alinventory was conducted of the warehouseat December 3e and the total value of inventory counted was $482,909. a. Income Statement b. Statement of Retained Earnings c. Balance Sheet g. A review of open Accounts Receivable was conducted at year-end and it was determined that an estimated 5% of accounts receivable will be uncollected in the coming year. h. Two months remain on the warehouse rental (paid in advance in 2022). The total value of the rent for January and February 2023 is $4,660. i. A review of insurance policies indicated that the value of the unexpired portion of existing policies was $5,640 at year end. Insurance expense is allocated to selling and general insurance expense at 25% and 75% respectively. (total expense should be 5,380) Please perform the following tasks: 1 - Prepare the unadjusted trial balance in the '12-31-22 Trial Balance' worksheet based on the General Ledger that you have received with this packet. 2 - Prepare the Adjusting Journal Entries at December 31, 2022 based on the information provided in a. through h. above and record them on the '12-31-22 Trial Balance' worksheet and post them to the General Ledger. 3 - Post the adjusting entries to the General Ledger and extend that data to compute the Adjusted Trial Balance on the '12-31-22 Trial Balance' worksheet. 4 - From the Adjusted Trial Balance, prepare the four fundamental financial statements at December 31, 2022: d. Statement of Cash Flows (a 12/31/21 Balance Sheet is provided to perfom the indirect method of establishing cash provided from operations 5 - Prepare the Closing Journal Entries at December 31, 2022 and record them on the '12-31- 22 Trial Balance' worksheet and post them to the General Ledger. 6- Prepare the Post-Closing Trial Balance at December 31, 2022 from the '12-31-22 Trial Balance' worksheet - your Retained Earnings balance should be the same as on your 12/31/22 Balance Sheet prepared in item 4c. above. r 2 No. 101 Cash 106.1 A/R-Boecker Builders 106.2 A/R-The Potts Company 106.3 A/R-Swanson Brothers Construction 106.4 106.5 106.6 106.7 106.8 106.9 106.1 107 109 111 119 124 128 131 153 154 161 162 173 174 183 Land 201.1 A/P Phoenix Plastics 201.2 A/P - Business Basics, Inc 201.3 A/P - Edward's Plumbing Supplies, Inc. 201.4 A/P - DeKalb Transport 201.5 A/P Oxenford Copperworks 201.6 A/P - Smith Pipe Company 201.7 A/P - Ron & Rod's Plumbing Products 201.8 A/P Khatan Steel Corp 203 210 245 307 316 318 319 403 409 413 414 415 502 Cost of goods sold 606 Depreciation expense - Buildings 611 Depreciation expense-Trucks and Lifts 612 Depreciation Expense - Furniture and Equipment 620 Office and Administrative Salaries 621 Sales Salaries and Commissions 623 Delivery and Warehouse Wages 633 Interest Expense 635 637 642 A/R-A&B Hardware A/R-Trudy's Plumbing A/R-Coconino Contractors, Inc. A/R-Rankin Plumbing Corp. A/R-Beverly's Building Products A/R-Bilder Construction Company Account A/R-Iwanaga Plumbing and Heating Allowance for Doubtful Accounts Interest Receivable Notes Receivable Merchandise inventory Office supplies Prepaid insurance Prepaid rent Trucks and Lifts Accumulated depreciation - Trucks and Lifts Furniture and Equipment Accumulated Depreciation - Furniture and Equipment Buildings Accumulated depreciation - Buildings Interest Payable Salaries and Wages payable Notes Payable Common Stock Additional Paid-In Capital Retained earnings Dividends Installation Revenue Interest Revenue Sales Sales returns and allowances Sales discounts Insurance Expense - Selling Insurance Expense - General Warehouse Rental Expense 650 Office Expense 655 656 663 690 705 808 901 Advertising Expense Bad Debt Expense Delivery Expense Utilities Expense Gain on Sale of Assets Loss on Sale of Assets Income Summary Totals 12/31/21 trial balance Debit Credit 310,132 42,040 26,770 22,650 7,920 55,770 53,080 13,150 44,900 104,200 487,919 6,680 11,020 25,410 70,500 32,800 306,000 99,650 49,000 14,060 77,041 3,918,450 700 827,091 171,361 118,638 24,570 2,081 7,078 22,367 16,270 150 880 34,990 13,200 73,040 48,330 3,000 40,626 2,300 58,940 14,850 15,000 207,000 292,400 549,690 35,272 3,150 5,576,780 6,969,448 6,969,448 Having recorded, posted (to the General Ledger) and began the '12-31-22 Trial Balance' worksheet with the unadjusted balances, we are now going to prepare the Adjusting Journal Entries so that we can prepare the four fundamental financial statements. a. The payroll summary for the week ended Friday, December 31 contained the following information (for simplification purposes, payroll tax expenses have been included in the amounts): Office and Administrative Salaries- $ 17,613 Sales Salaries and Commissions - 3,666 Delivery and Warehouse Wages- Total Wages Paid The bi-weekly pay period will end on January 7 2023. b. Interest accrued at December 31, 2022 is composed of the following... Note Receivable From: Coconino Contractors, Inc. Bilder Construction Company Beverly's Building Products Date of Note Receivable 2,119 $ 23,398 11/1/2022 Face Value $ 45,00 0 12/16/2022 $ 45,20 0 12/26/2022 $ 14,00 0 Interest Rate (Annual) 12% 14% 12% Term of note 3 Months (90 Days) 6 Months (180 Days) 6 Months (180 Days) # of Days Interest to be Accrued Interest to be accrued 12/31/22 C. No interest payments were made on the company's $15,000 12% note payable during 2022. d. A count of office supplies at year-end indicated remaining office supplies of $3,750 at December 31. e. Plant and Equipment to be depreciated are composed of the following... Date Acquired Asset Building Trucks and Lifts: Truck #1 Truck #2 Lift #1 (Sold) Lift #2 Lift #3 9/1/2014 $306,000 4/1/2015 9/1/2017 Cost 3/29/2015 9/16/2016 4,500 5,000 Estimated Salvage Depreciation Current Depn. Current Year Year's Per Depreciation U sage or Life Value Method Usage Unit 28,000 60,000 Miles 33,000 60,000 Miles 25 Years $20,000 10 Years. 10 Years Straight Line: Miles Driven 3,100 4,200 Miles Driven 500 Straight Line 500 Straight Line: 12,000 14,000 f. Fanphysi&alinventory was conducted of the warehouseat December 3e and the total value of inventory counted was $482,909. a. Income Statement b. Statement of Retained Earnings c. Balance Sheet g. A review of open Accounts Receivable was conducted at year-end and it was determined that an estimated 5% of accounts receivable will be uncollected in the coming year. h. Two months remain on the warehouse rental (paid in advance in 2022). The total value of the rent for January and February 2023 is $4,660. i. A review of insurance policies indicated that the value of the unexpired portion of existing policies was $5,640 at year end. Insurance expense is allocated to selling and general insurance expense at 25% and 75% respectively. (total expense should be 5,380) Please perform the following tasks: 1 - Prepare the unadjusted trial balance in the '12-31-22 Trial Balance' worksheet based on the General Ledger that you have received with this packet. 2 - Prepare the Adjusting Journal Entries at December 31, 2022 based on the information provided in a. through h. above and record them on the '12-31-22 Trial Balance' worksheet and post them to the General Ledger. 3 - Post the adjusting entries to the General Ledger and extend that data to compute the Adjusted Trial Balance on the '12-31-22 Trial Balance' worksheet. 4 - From the Adjusted Trial Balance, prepare the four fundamental financial statements at December 31, 2022: d. Statement of Cash Flows (a 12/31/21 Balance Sheet is provided to perfom the indirect method of establishing cash provided from operations 5 - Prepare the Closing Journal Entries at December 31, 2022 and record them on the '12-31- 22 Trial Balance' worksheet and post them to the General Ledger. 6- Prepare the Post-Closing Trial Balance at December 31, 2022 from the '12-31-22 Trial Balance' worksheet - your Retained Earnings balance should be the same as on your 12/31/22 Balance Sheet prepared in item 4c. above. r 2 No. 101 Cash 106.1 A/R-Boecker Builders 106.2 A/R-The Potts Company 106.3 A/R-Swanson Brothers Construction 106.4 106.5 106.6 106.7 106.8 106.9 106.1 107 109 111 119 124 128 131 153 154 161 162 173 174 183 Land 201.1 A/P Phoenix Plastics 201.2 A/P - Business Basics, Inc 201.3 A/P - Edward's Plumbing Supplies, Inc. 201.4 A/P - DeKalb Transport 201.5 A/P Oxenford Copperworks 201.6 A/P - Smith Pipe Company 201.7 A/P - Ron & Rod's Plumbing Products 201.8 A/P Khatan Steel Corp 203 210 245 307 316 318 319 403 409 413 414 415 502 Cost of goods sold 606 Depreciation expense - Buildings 611 Depreciation expense-Trucks and Lifts 612 Depreciation Expense - Furniture and Equipment 620 Office and Administrative Salaries 621 Sales Salaries and Commissions 623 Delivery and Warehouse Wages 633 Interest Expense 635 637 642 A/R-A&B Hardware A/R-Trudy's Plumbing A/R-Coconino Contractors, Inc. A/R-Rankin Plumbing Corp. A/R-Beverly's Building Products A/R-Bilder Construction Company Account A/R-Iwanaga Plumbing and Heating Allowance for Doubtful Accounts Interest Receivable Notes Receivable Merchandise inventory Office supplies Prepaid insurance Prepaid rent Trucks and Lifts Accumulated depreciation - Trucks and Lifts Furniture and Equipment Accumulated Depreciation - Furniture and Equipment Buildings Accumulated depreciation - Buildings Interest Payable Salaries and Wages payable Notes Payable Common Stock Additional Paid-In Capital Retained earnings Dividends Installation Revenue Interest Revenue Sales Sales returns and allowances Sales discounts Insurance Expense - Selling Insurance Expense - General Warehouse Rental Expense 650 Office Expense 655 656 663 690 705 808 901 Advertising Expense Bad Debt Expense Delivery Expense Utilities Expense Gain on Sale of Assets Loss on Sale of Assets Income Summary Totals 12/31/21 trial balance Debit Credit 310,132 42,040 26,770 22,650 7,920 55,770 53,080 13,150 44,900 104,200 487,919 6,680 11,020 25,410 70,500 32,800 306,000 99,650 49,000 14,060 77,041 3,918,450 700 827,091 171,361 118,638 24,570 2,081 7,078 22,367 16,270 150 880 34,990 13,200 73,040 48,330 3,000 40,626 2,300 58,940 14,850 15,000 207,000 292,400 549,690 35,272 3,150 5,576,780 6,969,448 6,969,448

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Here are the steps to perform the accounting cycle for the month of December 2022 for our company ba... View the full answer