Part 1- Create a Journal Entry for the part A values provided. Use the background info/given balance sheet as necessary. (Ref. Photos 1,2,3 and 4).

Part 2- Complete a Multiple-Step Income Statement for 2021 based on your Pre-Closing Trial Balance. You should have a separate line item for each Account item included. *Check figure provided. (Ref. Photo 5)

Part 3- Prepare a Statement of Retained Earnings in proper form. (Ref. Photo 6)

Part AR Been Carded, Ltd., is a purveyor of woolen goods and is known for its high quality merchandise. The business started up in January 2017 and has been quite successful. Complete the Journal Entries for all 2021 transaction and adjustment information listed below. You do not have to date your journal entries. Be sure to sum the debit and credit columns to confirm they balance. The first journal entry has been completed for you. (15 points-graded for accuracy and format, including Excel spreadsheet links) There is no Check Figure for Part A. Transaction and Adjustment Data: 1 Paid the $8,377 in salaries owed at year end 2020. 2 Collected the $22,805 of accounts receivable due to them at year end 2020. 3 Paid the $381,796 owed on account at year end 2020. 4 Purchased additional Furniture & Equipment on January 2, 2021 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, 2021. 6 Purchased a new computerized sales system on April 1, 2021 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 $92,000. 8 Made a payment on the mortgage note of $16,800. 9 Paid the interest of $24,653 that was payable at year end 2020. 10 Paid the taxes owed of $41,670 at year end 2020. 11 Issued 2,000 shares of Common Stock on May 1, 2021 for $10 per share. 12 Sales of woolen goods for 2021 were $2,542,690. At December 31, 2021, $41,550 of this amount was still listed as receivable. 13 The total cost of the goods sold during 2021 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 2021. 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 2021. 16 Supplies inventory of $3,677 was purchased with cash during 2021. Total supplies inventory of $578 was still on hand at year end 2021. 17 Depreciation expense needs to be recorded on the buildings, furniture and equipment, and the new computer system at year end 2021. 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 2021 so that the proper amount for insurance expense and supplies expense is recorded. See items 5 and 16 for details. (If you adjusted the supplies in #16, do not do it again) 19 Estimated income tax payments of $132,000 were made during the year 2021. 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 $153 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, 2020 is presented here to provide you with the beginning balances needed for your T-Accounts. Been Carded, Ltd. Balance Sheet December 31, 2020 Assets Current Assets Cash 348,969 22,80 -450 1,090,844 664 449 1,463,271 180,000 470,000 -47,000 18,300 -10,45% 610,84 2,074,114 381,790 8,37 24,653.32 41,670 456,496.32 381,333 235,000 616,33 Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Inventory Prepaid Insurance Total Current Assets Property, Plant, and Equipment Land Buildings Accumulated Depreciation--Buildings Furniture and Equipment Accumulated Depreciation--Furniture and Equipment Net Property, Plant, and Equipment Total Assets Current Liabilities Accounts Payable Salaries Payable Interest Payable Taxes Payable Total Current Liabilities Long-term Liabilities Liabilities and Stockholders' Equity Mortgage Note Payable Note Payable Total Long-term Liabilities Total Liabilities tockholders' Equity Common Stock, 5,000 shares issued and outstanding, $10 par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 1,072,829.32 50,000 951,284.68 1,001,284.68 2,074,114 Part D. Multiple-Step Inc Stmt Part E Module 3 Assignment Excel Workbook MBA 6315 Part D. Complete a Multiple-Step Income Statement for 2021 based on your Pre-Closing Trial Balance. You should have a separate line item for each Account item included. (12 points-graded for accuracy and format, including Excel spreadsheet links) Check Figure: Net Income = $534,146. Solution: Module 3 Assignment Excel Workbook MBA 6315 E. Prepare a Statement of Retained Earnings in proper form (5 points- graded for accuracy and format, including Excel spreadsheet links). There is no Check Figure for Part E. Solution