The goal of this final case is to help you practice creating and understanding the accounting cycle,

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The goal of this final case is to help you practice creating and understanding the accounting cycle, income statement, and balance sheet, along with providing practice on current liabilities (the one chapter that we haven't tested). you will see a couple of essay questions, an adjusted trial balance, and a discussion of something the company has missed that needs to be corrected. You have been hired to help the company deal with the missing information and create its primary financial statements. In doing so, make sure that you carefully consider the information provided and your knowledge of U.S. GAAP. You may assume that thee information in the adjusted trial balance is complete and correct for everything that has occurred this year, except for the information in the scenario you have been asked to consider.

Please use the Your Answer tab for any necessary journal entries and for the financial statements. Please make sure that your journal entry(ies) appear in the correctly labelled box and your financial statements appear under their respective heading. If we have to search for your work, you will LOSE POINTS! Also, please clearly label your work. While you can put it to the right of your statements, you might find it easier to create a separate tab.

None of the elements of this case are designed to be 'tricky,' so please do not read more into a problem than is intended. The elements of the case will push you to use your working knowledge of the material we have covered this semester, so you may see some items in new ways. You should be able to apply the concepts learned in one chapter to general accounting concepts and to the concepts taught in other chapters covered throughout the course.

In January of 2021, Yankton, Inc. made its largest sale ever. Their new client, BRS, Inc., purchased 17,000 widgets from Yankton, Inc. As part of the contract, Yankton, Inc. offered the new client an additional warranty covering 3 years. BRS purchased the warranty for ALL of its new widgets for $68 per widget. Based on past experience, Yankton, Inc. estimated that it will spend a total of $462,400 honoring the warranty on these units. By the end of 2021 the company had spent $69,360. While the sale of the widgets was appropriately recorded, no entries have been made in 2021 for the additional warranties.

Yankton, Inc.'s management team has decided that to recognize any warranty revenue as a percentage of the total cost. The cost of repairing a widget is typically more than the cost of replacing it, so broken units are simply replaced with new ones.

Yankton, Inc.
Adjusted Trial Balance
For Year Ended December 31, 2021

Cash	$1,213,100	$0
A/R, net	$1,386,400	$0
Inventory	$3,466,000	$0
Land	$20,796,000	$0
Production Equipment	$58,922,000	$0
Accumulated Depreciation	$0	$14,730,500
Accounts Payable	$0	$3,812,600
Taxes Payable	$0	$693,200
Loan Payable	$0	$16,983,400
Notes Payable	$0	$20,102,800
Common stock	$0	$4,332,500
Additional Paid-In capital	$0	$12,997,500
Retained Earnings	$0	$12,477,600
Dividends	$1,909,766	$0
Net Sales Revenue	$0	$17,330,000
Cost of Goods Sold	$6,932,000	$0
Advertising Expense	$866,500	$0
Bad Debt Expense	$1,213,100	$0
Depreciation Expense	$3,466,000	$0
R&D Expense	$1,733,000	$0
Interest Expense	$519,900	$0
Income Tax Expense	$343,134	$0
Loss on Sale of Production Equipment	$693,200	$0
	$103,460,100	$103,460,100