This manager has just returned from a meeting with the finance department. He has also provided...

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This manager has just returned from a meeting with the finance department. He has also provided you with the following notes from this meeting: 1. Office supplies were counted and it was determined that $20,000 were on-hand. 2. On January 1st 2021 $75,000 was paid in advance on a three year rent contract-ending Dec. 31st of 2023 3. Depreciation on equipment is taken annually at a rate of 30%. 4. The sales manager has confirmed that 50% of deferred revenues were earned during the year. 5. Long-Term Debts are owed to Local Bank Inc., interest is paid annually (Jan. 1st) based on a 12% per year interest rate. 6. It was determined that the company owes $60,000 in wages. Payment is to be made in January of next year. 7. Income Tax is expected to be 20% of Net Income. This is expected to be paid on Jan. 30th of next year. In his email the Senior Manager has asked you to complete the following: 1. Provide all relevant adjusting entries for the period just ended. 2. Create an income statement, balance sheet, and statement of retained earnings which will be Board of Directors at their next meeting. proposed to 3. You have also been asked to provide the following financial ratios: a. Net After-Tax Profit Margin b. Current Ratio c. Quick Ratio (also referred to as the Acid Test) d. Debt-to-Equity Ratio e. Return on Equity A S E R T F G H Cash Accounts Receivable. Inventory Office Supplies Prepaid Rent Equipment Accumulated Depreciation Y Using Worksheets to Create Adjusting Entries and Financial Statements Part 1: Barnes Wallis Enterprises Accounts Payble Payable Wages Payable A Senior Manager at Barnes Wallis Enterprises has just emailed you the following Trial Balance: Barnes Wallace Enterprises Dalable Interest Payable Income Tax Payable Unearned (Deferred) Revenue Long-Term Debt - D Stock Common Stock Retained Earnings U Unadjusted Trial Balance Dec. 31st 2021 Debit $1,160,000 Sales Revenue Office Supplies Expense Wages Expense Depreciation Expense Interest Expense Rent Expense Income Tax Expense 150,000 300,000 60,000 75,000 800,000 300,000 Credit $ 200,000 100,000 P 250,000 500,000 1,000,000 250,000 545,000 1 $ 2,845,000 $2,845,000 { [[^ A 1| Page This manager has just returned from a meeting with the finance department. He has also provided you with the following notes from this meeting: 1. Office supplies were counted and it was determined that $20,000 were on-hand. 2. On January 1st 2021 $75,000 was paid in advance on a three year rent contract-ending Dec. 31st of 2023 3. Depreciation on equipment is taken annually at a rate of 30%. 4. The sales manager has confirmed that 50% of deferred revenues were earned during the year. 5. Long-Term Debts are owed to Local Bank Inc., interest is paid annually (Jan. 1st) based on a 12% per year interest rate. 6. It was determined that the company owes $60,000 in wages. Payment is to be made in January of next year. 7. Income Tax is expected to be 20% of Net Income. This is expected to be paid on Jan. 30th of next year. In his email the Senior Manager has asked you to complete the following: 1. Provide all relevant adjusting entries for the period just ended. 2. Create an income statement, balance sheet, and statement of retained earnings which will be Board of Directors at their next meeting. proposed to 3. You have also been asked to provide the following financial ratios: a. Net After-Tax Profit Margin b. Current Ratio c. Quick Ratio (also referred to as the Acid Test) d. Debt-to-Equity Ratio e. Return on Equity A S E R T F G H Cash Accounts Receivable. Inventory Office Supplies Prepaid Rent Equipment Accumulated Depreciation Y Using Worksheets to Create Adjusting Entries and Financial Statements Part 1: Barnes Wallis Enterprises Accounts Payble Payable Wages Payable A Senior Manager at Barnes Wallis Enterprises has just emailed you the following Trial Balance: Barnes Wallace Enterprises Dalable Interest Payable Income Tax Payable Unearned (Deferred) Revenue Long-Term Debt - D Stock Common Stock Retained Earnings U Unadjusted Trial Balance Dec. 31st 2021 Debit $1,160,000 Sales Revenue Office Supplies Expense Wages Expense Depreciation Expense Interest Expense Rent Expense Income Tax Expense 150,000 300,000 60,000 75,000 800,000 300,000 Credit $ 200,000 100,000 P 250,000 500,000 1,000,000 250,000 545,000 1 $ 2,845,000 $2,845,000 { [[^ A 1| Page

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