Instructions

The following Excel file has multiple worksheets which will be used in completing your responses.

"Beginning Transactions" on the first Excel worksheet will provide the Balance Sheet for $2019$ and the Transactions for January $2020.$

On the second Excel worksheet, "Journal Entries", you should record the transactions provided on the first Excel worksheet by creating Journal Entries with dates and descriptions.

On the third Excel worksheet, $"$T$-$accounts and trial balance", you should record the required journal entries in the T$-$accounts and prepare an unadjusted trial balance.

The fourth and final Excel worksheet, "Financial Statements", you will prepare an Income Statement, Statement of Equity and a Balance Sheet as of January $31,2020$ and answer the inventory question. Chapter $1$ Appendix A$,$ Section $1\mathrm{.}8$ in the text will show examples of financial statements. This is very much like your assignment in Week $1$ and there is a module for Financial Statement review which will have videos to help.

Balance Sheet for end of $2019$

Assets Transactions for January of $2020$

Cash $76,850$

Accounts Receivable $($net of allowance of $7950)257,0501/3/2020$ Paid interest payable plus $$3,000$ toward long term debt

Inventory $45,500(1000$ units at $$45\mathrm{.}50$ each$)1/2/2020$ Paid salaries payable

Prepaid Insurance $2,8001/3/2020$ Purchased inventory $(500$ units at $$46)$ on credit

Supplies $1,8001/4/2020$ Paid shipping on inventory of $$300$

Total Current Assets $384,0001/6/2020$ Purchased supplies on credit for $$850$

$1/9/2020$ Received $$3,000$ from customers for products to deliver in March

Property, Plant and Equipment, Net $177,5001/10/2020$ Sold $600$ units on credit with a sales price of $$105($assume perpetual LIFO$)$

Land $32,0001/15/2020$ Purchased inventory on credit $(700$ units at $$47)$

$1/20/2020$ Paid $$39,200$ on accounts payable

Total Assets $593,5001/21/2020$ Collected $$139,520$ in cash from customers in payment for earlier sales

$1/22/2020$ Wrote off accounts receivable for $$920$

Liabilities $1/25/2020$ Sold $200$ units on credit with a sales price of $$105($still perpetual LIFO$)$

Accounts Payable $94,5521/26/2020$ Paid wages to employees for work done in January $$31,000$

Unearned Revenue $47,1001/26/2020$ Received utility bill for $$2,400$ for utilities used in January that will be paid in February

Interest Payable $2,4001/31/2020$ Delivered $100$ units of product to customers that they paid $$10,000$ for in $2019($unearned revenue$)$

Salaries Payable $7,2001/31/2020$ Counted supplies and found $$1,040$ remaining

Total Current Liabilities $151,2521/31/2020$ Employees worked and earned $$4,700$ in January that will not be paid until February

$1/31/2020$ Interest at $8\%$ per year on the long term debt $($new balance$)$ has not been paid

Long Term Debt $246,1001/31/2020$ The prepaid insurance will last $4$ months into $2020$ before a new policy will be required

$1/31/2020$ The allowance for bad debts is estimated at $4\%$ of total accounts receivable

Total Liabilities $397,3521/31/2020$ A count of inventory showed that $50$ units were damaged such that they are worthless and will be thrown away

Capital Stock $100,000$

Retained Earnings $96,148$

Total Liabilities and Stockholders Equity $593,500$