Jimball Incorporated has been operating for two years. On January 1 of last year, the accounting records had the following information:

Cash	$ 48,000
Accounts Receivable	12,000
Supplies	14,000
Notes Receivable	7,000
Equipment	180,000
Accounts Payable	35,000
Unearned Revenue	15,000
Wages Payable	1,000
Notes Payable (long term)	70,000
Common Stock	10,000
Additional Paid in Captial	90,000
Retained Earnings	40,000

During the current year, the company had the following occur:

a. Sold 1,000 shares of common stock for $42,000 with a par value of $1 per share.

b. Received an invoice for work done this year by the contracted office custodians and paid it with $2,000 cash.

c. Purchased $12,000 of additional supplies on account.

d. Incurred and paid employee wages of $22,000, 90% was paid in cash with the remainder held on account until next year.

e. Provided services for customers amounting to $64,000. 30% of this amount was collected in cash.

f. Signed a note to borrow $25,000 from the bank due in 3 years.

g. Paid the local radio station $500 to run an ad each day of the week for a month.

h. Received an advance payment of $5,000 from a local business to provide consulting services next year.

i. Collected $700 of principal on the note from a customer along with $30 of interest.

j. Purchased equipment for $18,000. Half of the cost was paid with a down payment, the remainder will be paid in 5 years.

k. The utility bill of $2,500 arrived and was paid immediately.

l. Collected $10,000 on customer accounts.

m. Paid $2,500 in principal on a note along with $100 in interest.

Required:

Record these transactions in the T-Accounts below (be sure to include beginning balances).

Create an Unadjusted Trial Balance on December 31 of the Current Year (ignore Income Tax Expense).

Create an Unadjusted Income Statement on December 31 of the Current Year (be sure to make Interest Expense negative).

Compute the Net Profit Margin for Jimball Incorporated rounded to two decimal places.

Answer rating: 100% (QA)

Transactions to be recorded in Taccounts Cash Date Description Debit Credit Beginning Balance 48000 Invoice for contracted custodians b 2000 Employee ... View the full answer