Using the information in the Assumptions (1) tab, prepare the adjusting journal entries for the period. Record the entries in the Adjusting Journal Entries (4) tab. (Round all numbers to the nearest dollar.) SHOW YOUR WORK FOR THE ADJUSTMENT IN THE CELL OR YOU WILL NOT RECEIVE CREDIT FOR THE ENTRY. Use formulas and link the values to the adjustment. 1. After the above adjusting entries are entered on the Adjusting Journal Entries (4) tab, the amounts should be linked to the Adjustments column of the Worksheet (3). Your adjustment amounts should be a formula so if you change the debit/credit amount on the Adjusting Journal Entries (4), the column amount will automatically change. 2. Complete the Adjusting Trial Balance columns of the by the Worksheet (3) using formulas. Think about the best way to do this. Your last three sets of columns should never contain constant numbers but will include formulas only. 3. 4. Prepare a multiple-step income statement on the Income Statement (5) tab. Your Income Statement should be in good form (proper titles, etc., see text page 230) and well formatted. The accounts of the financial statements should follow the order of accounts on the trial balance. You should use formulas in all cells, not constant numbers. (That means, your income statement should be linked to the adjusted numbers on your worksheet.) 5. Prepare a Statement of Retained Earnings (6) on the proper worksheet. Your Statement should be formatted. You should use formulas in all cells, not constant numbers. 6. On the designated worksheet tab, prepare in journal entry form the Closing Entries (7) at the end of 12/31/19. Link entries to the Worksheet (3) and/or financial statement tabs. 7. Prepare a Classified Balance Sheet (8) on the proper worksheet as of 12/31/19. Your Statement should be formatted as shown on page 175. You should use formulas in all cells, not constant numbers. Use the following information to prepare adjusting entries for Broomfield Industries: On July 1, 2019, Broomfield Industries signed a 4.2% bank loan due in 3 years. This is the only outstanding note payable. 1 . 2 b. Prepaid insurance represents a 12-month insurance policy purchased on May 1 On November 1, 2019, Broomfield Industries paid $12,780 for a 4-month lease for office space. . d. Unearned revenue represents a 8-month contract for consulting services. The payment was received on October 1, 2019 5 e. Supplies on hand total $4,674. f. Equipment is depreciated on a straight-line basis; residual value is estimated to be $12,000 with an estimated service life of 10 years. The assets were held the entire year. 7 On August 1, Broomfield Industries issued Denver Supplies an 9-month note receivable at a g. 5.7% annual interest rate. h. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019. Accrued wages totaling $71,490 were unpaid and unrecorded at December 31, 2019. 10 Utility costs incurred but unrecorded for the month of December were estimated to be $12,314. 11 J. 12 13 st 2 Prepare the Aging Schedule to determine the adjustment required for the allowance method for bad debt: Estimated Amount Balance December 31, Estimated % 3 Age of Accounts 2019 Uncollectible Uncollectible 4 Current 526,938 1.25% 5 1-30 days past due 6 31-90 days past due 7 Over 90 days past due 8 Total Accounts Receivable 305,233 2.50% 152,870 85 343 1,070,384 22.00% 53.00% $ Unadjusted Adjusted 5 Trial Balance Adjustments DR Trial Balance Income Statement Balance Sheet CR DR 270,788 1,070,384 CR DR DR CR CR DR CR 7 8 18,514 10 11 12 359,180 782,572 28,728 47,880 121,296 1,118,264 13 14 15 16 17 118,104 111,826 18 19 20 32,000 21 22 23 758,100 585,200 904,400 24 25 26 234,080 27 28 29 11,179.980 63,840 137 256 7,612.388 1.733.256 30 31 32 33 34 35 36 37 38 128,212 39 40 13,708,124 41 13,708,124 42 Adjusting Journal Entries For the Year Ended December 31, 2019 2 CR DR Account Titles 5 a 6 7 8 b 9 10 11 c 12 13 14 d 15 16 17 e. 18 19 20 f. 21 22 23 g 24 25 CO Income Statement (5) Statement of RE(6) Closing Entries(7) Balance Sheet(8) Using the information in the Assumptions (1) tab, prepare the adjusting journal entries for the period. Record the entries in the Adjusting Journal Entries (4) tab. (Round all numbers to the nearest dollar.) SHOW YOUR WORK FOR THE ADJUSTMENT IN THE CELL OR YOU WILL NOT RECEIVE CREDIT FOR THE ENTRY. Use formulas and link the values to the adjustment. 1. After the above adjusting entries are entered on the Adjusting Journal Entries (4) tab, the amounts should be linked to the Adjustments column of the Worksheet (3). Your adjustment amounts should be a formula so if you change the debit/credit amount on the Adjusting Journal Entries (4), the column amount will automatically change. 2. Complete the Adjusting Trial Balance columns of the by the Worksheet (3) using formulas. Think about the best way to do this. Your last three sets of columns should never contain constant numbers but will include formulas only. 3. 4. Prepare a multiple-step income statement on the Income Statement (5) tab. Your Income Statement should be in good form (proper titles, etc., see text page 230) and well formatted. The accounts of the financial statements should follow the order of accounts on the trial balance. You should use formulas in all cells, not constant numbers. (That means, your income statement should be linked to the adjusted numbers on your worksheet.) 5. Prepare a Statement of Retained Earnings (6) on the proper worksheet. Your Statement should be formatted. You should use formulas in all cells, not constant numbers. 6. On the designated worksheet tab, prepare in journal entry form the Closing Entries (7) at the end of 12/31/19. Link entries to the Worksheet (3) and/or financial statement tabs. 7. Prepare a Classified Balance Sheet (8) on the proper worksheet as of 12/31/19. Your Statement should be formatted as shown on page 175. You should use formulas in all cells, not constant numbers. Use the following information to prepare adjusting entries for Broomfield Industries: On July 1, 2019, Broomfield Industries signed a 4.2% bank loan due in 3 years. This is the only outstanding note payable. 1 . 2 b. Prepaid insurance represents a 12-month insurance policy purchased on May 1 On November 1, 2019, Broomfield Industries paid $12,780 for a 4-month lease for office space. . d. Unearned revenue represents a 8-month contract for consulting services. The payment was received on October 1, 2019 5 e. Supplies on hand total $4,674. f. Equipment is depreciated on a straight-line basis; residual value is estimated to be $12,000 with an estimated service life of 10 years. The assets were held the entire year. 7 On August 1, Broomfield Industries issued Denver Supplies an 9-month note receivable at a g. 5.7% annual interest rate. h. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019. Accrued wages totaling $71,490 were unpaid and unrecorded at December 31, 2019. 10 Utility costs incurred but unrecorded for the month of December were estimated to be $12,314. 11 J. 12 13 st 2 Prepare the Aging Schedule to determine the adjustment required for the allowance method for bad debt: Estimated Amount Balance December 31, Estimated % 3 Age of Accounts 2019 Uncollectible Uncollectible 4 Current 526,938 1.25% 5 1-30 days past due 6 31-90 days past due 7 Over 90 days past due 8 Total Accounts Receivable 305,233 2.50% 152,870 85 343 1,070,384 22.00% 53.00% $ Unadjusted Adjusted 5 Trial Balance Adjustments DR Trial Balance Income Statement Balance Sheet CR DR 270,788 1,070,384 CR DR DR CR CR DR CR 7 8 18,514 10 11 12 359,180 782,572 28,728 47,880 121,296 1,118,264 13 14 15 16 17 118,104 111,826 18 19 20 32,000 21 22 23 758,100 585,200 904,400 24 25 26 234,080 27 28 29 11,179.980 63,840 137 256 7,612.388 1.733.256 30 31 32 33 34 35 36 37 38 128,212 39 40 13,708,124 41 13,708,124 42 Adjusting Journal Entries For the Year Ended December 31, 2019 2 CR DR Account Titles 5 a 6 7 8 b 9 10 11 c 12 13 14 d 15 16 17 e. 18 19 20 f. 21 22 23 g 24 25 CO Income Statement (5) Statement of RE(6) Closing Entries(7) Balance Sheet(8)