Prepare the journal entries, if needed, for the transactions provided below in the two pages provide in the EXCEL file (see JE1 & JE2 tabs):

1. On December 1, $22,000 was paid on accounts payable (this one is done for you in the general journal).
2. On December 2, $12,000 in widgets were sold to a customer on account with the following credit terms: 2/10, n/30, FOB shipping point. The widgets sold cost Journey Inc. $5,500 and were shipped on the same day sold to the customer.
3. On December 4, Journey Inc. purchased $8,200 in widgets on account to sell to customers in the future. Terms were 1/10, n/30, FOB destination and the merchandise was delivered by the end of the day December 4.
4. On December 6, Journey Inc. issued a credit memo for $1,000 for returned widgets. The merchandise was originally purchased on 12/2 by the customer and returned because it was the wrong item. The merchandise cost Journey Inc. $450.
5. On December 8, Journey Inc. received $1,200 from a customer for revenue previously recognized in October.
6. On December 12, the company received the balance due from the December 2 customer within the discount period.
7. On December 14, Journey Inc. paid the full amount due on account within the 10 day grace period.
8. Journey's board of directors declared dividends on December 20 to be paid on January 10th in the amount of $5,000.
9. On December 23, the corporation sold widgets to a customer for $24,000 on account with the following credit terms: 2/10, n/30, FOB shipping point. The widgets cost $11,200 and were shipped that day.
10. On December 29, Journey Inc. received a utility bill to be paid in January in the amount of $1,200.
11. On December 30, the corporation purchased $724 in office supplies. Journey paid for half of the amount with cash and the other amount was put on the account, n/30.

Step 4 - Post the journal entries to the general ledger [GL] and determine the balance in each account after posting. Don't forget to cross-reference after posting. Use the account number for the post reference (PR) on the general journal and the date for the PR in the general ledger (the first post is done for you, see the 'GL' tab found in the Excel template file).

Step 5 - Prepare the unadjusted trial balance on the 'UnadjustedTB' tab in the above Excel file. Save your file and then submitted part 1 through Canvas. DO NOT begin step 6 until you received a grade for part 1 (steps 1-5).

Step 6 - Prepare the necessary adjusting journal entries [AJEs] using the following adjustment data assuming adjustments have been properly made through November 30, assume accounts were properly adjusted through November 30th:

AJ1: Monthly depreciation on the office equipment placed in service on July 1, 2020. The cost of the equipment is $26,000 and the salvage value is $2,000. The useful life is 10 years. Depreciation is up to date through November 30, 2021 (this one is done for you, see the AJE tab).

AJ2: Recognize the depreciation on the building for the month. It was placed in service on January 1, 2020. The cost was $277,000 with $25,000 salvage value and useful life for 30 years.

AJ3: There are $703 on hand in Office supplies at 12/31.

AJ4: The expired insurance for the month is based on a 1-year policy that Journey Inc. paid $6,000 on May 1, 2021.

AJ5: Interest revenue earned on the Notes receivable signed on 3/31/21 that is due 3/31/22, 8% annual rate.

AJ6: Wages accrued for the end of the month are $400.

AJ7: Journey Inc. uses the percentage of net sales method for determining bad debt expense. The percentage of sales estimates the uncollectibles to be $1,980. Prepare the adjusting entry using the percent of sales method for uncollectible (See example on page 287).

AJ8: The tax accountant estimated the year's tax liability to be $8,000.

AJ9: Accrue interest on the mortgage notes payable for the month of December, use 2.25%, and the current balance of the mortgage notes payable account as the principal. Interest will be paid next year.

Step 7 - Post the AJEs to the GL and determine the balance in each account after posting. Don't forget to cross-reference after posting. Use the account number for the post reference (PR) on the general journal and the date for the PR in the general ledger in the Excel file.

Step 8 - Prepare the adjusted trial balance using the 'AdjustedTB' tab in the Exel file.

Step 9 - Use the 'ISandRE' tab in the Excel file to prepare the income statement for the year-end.

Step 10 - Use the 'ISandRE' tab in the Excel file to prepare the retained earnings statement.

Step 11 - Use the 'BS' tab in the Excel file to prepare the classified balance sheet assuming $11,000 of the mortgage notes payable is due within a year (see page 105, exhibit 3.21).

Step 12 - Close the books by preparing the closing journal entries that are required in the 'CJE' tab on the Excel template file.

Step 13 - Post the closing journal entries to the GL and determine the balance of each account after posting. Don't forget to cross-reference after posting. Use the account number for the post reference (PR) on the general journal and the date for the PR in the general ledger.

Step 14 - Prepare the post-closing trial balance on the 'PostTB'.

Step 15 - Calculate the following ratios using the financial statements prepared above:

• Current Ratio
• Profit Margin
• Debt Ratio

Steps 16 - Save your work and submit your Excel file through Canvas for grading before the due date.

Answer rating: 100% (QA)

Where A Assets L Liabilities SE Shareholderss equity Prepare TAccounts as follows Cash Beg Bal 250000 d 5000 a 15000 g 25000 c 70000 h 10000 i 100000 j 30000 End Bal 365000 Accounts receivable Beg Bal 65000 a 15000 End Bal 50000 Inventory Beg Bal 29000 e 1000 b 2000 End Bal 30000 Shortterm Investments Beg Bal 20000 d 5000 End Bal 25000 ... View the full answer