Module 3 Assignment Excel Workbook
MBA 6315
Part A:
Been, Ltd., is a purveyor of woolen goods and is known for its high quality merchandise. The business started up in January 20XX and has been quite successful. Complete the Journal Entries for all 20XX transaction and adjustment information listed below. Use the drop down boxes (options from the "Word Bank") to select the proper accounts.Make sure to use an "equals sign" before each amount inputted. Some values need to be referenced to the balance sheet below. Be sure to sum the debit and credit columns to confirm they balance. The first journal entry has been completed for you.
Transaction and Adjustment Data:
1	Paid the $8,377 in salaries owed at year end 2019.
2	Collected the $22,508 of accounts receivable due to them at year end 2019.
3	Paid the $381,796 owed on account at year end 2019.
4	Purchased additional Furniture & Equipment on January 2, 2020 costing $76,000 due to increased shipping activities for their growing online presence.
5	Paid $3,150 to renew their annual insurance policy on March 1, 2020.
6	Purchased a new computerized sales system on April 1, 2020 for $78,000 in cash. The system has a useful economic life of 3 years and will be depreciated monthly using the straight line method. The system has a salvage value of $3,000.
7	Made a payment on the long-term note of $90,000.
8	Made a payment on the mortgage note of $16,800.
9	Paid the interest of $24,653 that was payable at year end 2019.
10	Paid the taxes owed of $41,670 at year end 2019.
11	Issued 22,000 shares of Common Stock on May 1, 2020 for $10 per share.
12	Sales of woolen goods for 2020 were $2,542,690. At December 31, 2020, $41,550 of this amount was still listed as receivable.
13	The total cost of the goods sold during 2020 was $1,665,462.
14	Purchased inventory during the year that cost $1,690,000. The company owed $411,050 on these purchases at year end 2020.
15	Total Salaries Expense for the year were $129,050 and total interest expense was $20,301. Salaries of $8,420 and interest expense of $20,301 are still payable at year end 2020.
16	Supplies inventory of $3,677 was purchased with cash during 2020. Total supplies inventory of $578 was still on hand at year end 2020.
17	Depreciation expense needs to be recorded on the buildings, furniture and equipment, and the new computer system at year end 2020. All items are depreciated on a monthly basis using straight line depreciation. The building has a useful life of 40 years and the furniture and equipment is depreciated over 7 years--there is no salvage value on the buildings or the furniture and equipment. As noted above, the new sales system has a useful life of 3 years and has a salvage value of $3,000. Round all depreciation amounts to the nearest dollar.
18	The Prepaid Insurance and the Supplies Inventory need to be adjusted at year end 2020 so that the proper amount for insurance expense and supplies expense is recorded. See items 5 and 16 for details.
19	Estimated income tax payments of $132,000 were made during the year 2020.
20	The company paid out cash dividends totaling $2,000 to its shareholders.
21	The company determined that a customer account was not collectible, and wrote off $135 on December 31.
22	The company believes that 3% of ending Accounts Receivable is a reasonable estimate of its Allowance for Doubtful Accounts balance. The Company uses the allowance method to record bad debts.
23	Tax expense is 21% of Income before Income Tax.
Background Information: The Balance Sheet for December 31, 2019 is presented here to provide you with the beginning balances needed for your T-Accounts.
Been, Ltd.
Balance Sheet
December 31, 2019
Assets
Current Assets
	Cash					$ 348,969
	Accounts Receivable				22,508
	Allowance for Doubtful Accounts				(465)
	Inventory					1,090,844
	Supplies					664
	Prepaid Insurance				545
		Total Current Assets				1,463,065
Property, Plant, and Equipment
	Land					180,000
	Buildings					470,000
	Accumulated Depreciation--Buildings				(47,000)
	Furniture and Equipment				18,300
	Accumulated Depreciation--Furniture and Equipment			(10,457)
		Net Property, Plant, and Equipment			610,843
		Total Assets				2,073,908
Liabilities and Stockholders' Equity
Current Liabilities
	Accounts Payable				$ 381,796
	Salaries Payable				8,377
	Interest Payable				24,653
	Taxes Payable				41,670
		Total Current Liabilities				456,496
Long-term Liabilities
	Mortgage Note Payable				381,333
	Note Payable				235,000
		Total Long-term Liabilities				616,333
		Total Liabilities				1,072,829
Stockholders' Equity
	Common Stock, 5,000 shares issued and outstanding, $10 par		50,000
	Retained Earnings				951,079
		Total Stockholders' Equity				1,001,079
		Total Liabilities and Stockholders' Equity			2,073,908