Part I (DAY) - 40 Points INSTRUCTIONS Prepare adjusting entries and complete the worksheet for Meister Hardware Store for the year ended December 31, 2019, using ONE of the assigned columns below. Then, complete either (2) a Multi-Step Income statement or (3) a Classified Balance Sheet. Assume that Meister Hardware Store uses the periodic inventory system. (32 points) 1) Information as of December 31, 2019 a) Accrued interest on mortgage payable b) Expired Insurance c) Merchandise Inventory, December 31, 2019 d) Accrued Wages for the current pay period e) Depreciation on Building ) Bad Debts based on the aging of accounts receivable g) Unexpired Rent h) Supplies on Hand Column 1 Column 2 Column 3 1,000 6,000 5,000 6,000 3,000 2,000 32,000 30,000 29,000 10,000 15,000 18,000 7,000 5,000 3,000 5,000 6,000 7,000 17,000 11,000 9,000 2,000 2,500 4,000 2) Prepare a Multi-Step Income Statement for the year ended December 31, 2019. (8 points) OR 3) Prepare a Classified Balance Sheet as of December 31, 2019. (8 Points) Note: Both the adjusting entries and the worksheet are required. Only ONE financial statement is to be prepared: either the multi-step income or the classified balance sheet Name: Cash Account Names Unadjusted Trial Balance Debit Credit Meister Hardware Store Worksheet For the year ended December 31, 2019 Adjustments Adjusted Trial Balance Credit Debit 30.000 20,000 Debit | Credit Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory, 12/31/2018 Supplies Prepaid Rent Prepaid Insurance Building Accumulated Depreciation - Building 40,000 6,000 25,000 15,000 80,000 95,000 15,000 35,000 60,000 100,000 180,000 8.000 70,000 Land Accounts Payable Notes Payable (Current Portion) Notes Payable (Due 12/31/2028) Mortgage Payable (Due 9/30/2030) Ricardo Sam, Capital Ricardo Sam, Drawings Sales Revenue Sales Discounts Purchases Purchase Returns & Allowances Freight-in Salaries and Wages Expense Rent Expense Interest Expense TOTALS Interest Payable Depreciation Expense Salaries and Wages Payable Supplies Expense Bad Debts Expense Insurance Expense SUBTOTAL 7,000 2,000 21.000 12.000 1,000 430,000 Net Income TOTALS Part I (DAY) - 40 Points INSTRUCTIONS Prepare adjusting entries and complete the worksheet for Meister Hardware Store for the year ended December 31, 2019, using ONE of the assigned columns below. Then, complete either (2) a Multi-Step Income statement or (3) a Classified Balance Sheet. Assume that Meister Hardware Store uses the periodic inventory system. (32 points) 1) Information as of December 31, 2019 a) Accrued interest on mortgage payable b) Expired Insurance c) Merchandise Inventory, December 31, 2019 d) Accrued Wages for the current pay period e) Depreciation on Building ) Bad Debts based on the aging of accounts receivable g) Unexpired Rent h) Supplies on Hand Column 1 Column 2 Column 3 1,000 6,000 5,000 6,000 3,000 2,000 32,000 30,000 29,000 10,000 15,000 18,000 7,000 5,000 3,000 5,000 6,000 7,000 17,000 11,000 9,000 2,000 2,500 4,000 2) Prepare a Multi-Step Income Statement for the year ended December 31, 2019. (8 points) OR 3) Prepare a Classified Balance Sheet as of December 31, 2019. (8 Points) Note: Both the adjusting entries and the worksheet are required. Only ONE financial statement is to be prepared: either the multi-step income or the classified balance sheet Name: Cash Account Names Unadjusted Trial Balance Debit Credit Meister Hardware Store Worksheet For the year ended December 31, 2019 Adjustments Adjusted Trial Balance Credit Debit 30.000 20,000 Debit | Credit Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory, 12/31/2018 Supplies Prepaid Rent Prepaid Insurance Building Accumulated Depreciation - Building 40,000 6,000 25,000 15,000 80,000 95,000 15,000 35,000 60,000 100,000 180,000 8.000 70,000 Land Accounts Payable Notes Payable (Current Portion) Notes Payable (Due 12/31/2028) Mortgage Payable (Due 9/30/2030) Ricardo Sam, Capital Ricardo Sam, Drawings Sales Revenue Sales Discounts Purchases Purchase Returns & Allowances Freight-in Salaries and Wages Expense Rent Expense Interest Expense TOTALS Interest Payable Depreciation Expense Salaries and Wages Payable Supplies Expense Bad Debts Expense Insurance Expense SUBTOTAL 7,000 2,000 21.000 12.000 1,000 430,000 Net Income TOTALS