Nelson also provides you with details on several transactions that took place throughout the fiscal year. Nelson would like you to perform the supporting calculations and record the journal entries for these transactions for the month of December 2021.

a) Nelson provides you with the details on Warranty Liabilities. These details can be found in the "Long-Term Liabilities" tab.

b) Nelson provides you with the details on the Note Payable. These details can be found in the "Long-Term Liabilities" tab.

c) Nelson provides you with the details on a short-term note that the company borrowed in November. These details can befound in the "Long-Term Liabilities" tab.

d) Nelson provides you with the details on the company's common and preferred shares. These details can be found in the "Shareholders' Equity" tab.

REQUIRED:

1. Prepare the Warranty Liability calculations and any required adjusting journal entries as described in the "Long-Term Liabilities" tab. 

2. Prepare the Note Payable calculations and any required adjusting journal entries as described in the "Long-Term Liabilities" tab.

3. Prepare the Short-Term Note Payable calculations and any required adjusting journal entries as described in the "Long-Term Liabilities" tab. 

4. Prepare the Shareholders' Equity calculations and any required adjusting journal entries as described in the "Shareholders' Equity" tab. 

5. Prepare an adjusted trial balance at December 31, 2021 in the "Trial Balance" tab.

6. Prepare an income statement, statement of changes in equity and balance sheet for the year ended December 31, 2021 in the "Financial Statements" tab. 

 

Transcribed Image Text:

This trial balance below Account Description Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Supplies Inventory Inventory Prepaid Rent Office Equipment Accumulated Depreciation - Office Equipment 2 Café Equipment Accumulated Depreciation - Café Equipment Accounts Payable 5 Salaries Payable 6 Interest Payable 7 Unearned Catering Revenue 8 Loan Payable 9 Common Shares 0 Retained Earnings 1 Dividends 32 Café Revenue 33 Catering Revenue 34 Interest Income 35 Cost of Goods Sold 36 Salaries Expense 37 Interest Expense 38 Depreciation Expense 39 Supplies Expense 40 Utilities Expense 41 Café Repairs Expense 42 Insurance Expense 43 Rent Expense 44 Bank Fees Expense 45 Bad Debt Expense 46 Income Tax Expense 47 Total 48 $ Debit 45,687 23,073 10,123 67 5,200 126 30,833 3,25,500 15,45,448 15,000 907 4,48,670 12,263 36,089 52,450 11,180 15,930 27,000 1,08,467 Credit 1,186 61,217 1,10,373 9,63,536 7,500 3,013 8,300 45,000 75,000 1,05,250 12,77,658 76,825 67 125 1,186 19,600 27,34,924 $ 27,34,924 This trial balance below Account Description Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Supplies Inventory Inventory Prepaid Rent Office Equipment Accumulated Depreciation - Office Equipment 2 Café Equipment Accumulated Depreciation - Café Equipment Accounts Payable 5 Salaries Payable 6 Interest Payable 7 Unearned Catering Revenue 8 Loan Payable 9 Common Shares 0 Retained Earnings 1 Dividends 32 Café Revenue 33 Catering Revenue 34 Interest Income 35 Cost of Goods Sold 36 Salaries Expense 37 Interest Expense 38 Depreciation Expense 39 Supplies Expense 40 Utilities Expense 41 Café Repairs Expense 42 Insurance Expense 43 Rent Expense 44 Bank Fees Expense 45 Bad Debt Expense 46 Income Tax Expense 47 Total 48 $ Debit 45,687 23,073 10,123 67 5,200 126 30,833 3,25,500 15,45,448 15,000 907 4,48,670 12,263 36,089 52,450 11,180 15,930 27,000 1,08,467 Credit 1,186 61,217 1,10,373 9,63,536 7,500 3,013 8,300 45,000 75,000 1,05,250 12,77,658 76,825 67 125 1,186 19,600 27,34,924 $ 27,34,924

Answer rating: 100% (QA)

1 Warranty Liability 12312021 Warranty Expense 3000 Accrued Liabilities 1000 Adjusting Journal Entry ... View the full answer