Year-End Worksheet Assignment

PLEASE I NEED THE ANSWER AS SOON AS POSSIBLE

The Excel year-end accounting worksheet has been started for a companys year-end reporting. This means that the balances for trial balance has been entered.

A year-end accounting worksheet is a tool used to help accountants complete the accounting cycle and prepare year-end documents (unadjusted trial balances, adjusting journal entries, adjusted trial balances, and financial statements.)

The accounting worksheet is essentially a spreadsheet that tracks the steps of the accounting cycles end-of-period tasks. The spreadsheet typically has five sets of columns that start with the unadjusted trial balance accounts and end with the financial statements.

The company uses a perpetual inventory system which means that there is no need to adjust ending inventory or cost of goods sold.

All the balances from the general ledger have been entered into the worksheets trial balance. Your task is to enter the adjusting entries (described below) into the Adjustment columns and then enter the balances in the Adjusted Trial Balance columns, Income Statement columns and Balance Sheet columns. Keep these rules in mind:

The debit and credit columns of the Adjustments must equal.

The Adjusted Trial Balance must balance (debits = credits).

For the Income Statement columns, enter only the balances (from the adjusted trial balance) for the revenue and expense accounts. The difference in the totals will be the net income.

For the Balance Sheet columns, enter only the balances for the assets, liabilities, and equity accounts. The difference in the totals should be exactly equal to the net income.

The normal process to complete the accounting cycle is as follows:

1. Once the end-of-period worksheet is complete, the adjusting entries are journalized (entered into the general journal), posted to the general ledger.

2. Next, the financial statements are prepared (Income Statement, Statement of Equity, Balance Sheet, and Statement of Cash Flows.)

3. Then the closing entries are journalized and then posted.

For this assignment, once you have an accurate year-end worksheet completed, you should go to myCourses, upload the worksheet.

Here are the descriptions of the adjusting entries:

Bad debt expense is 1% of net sales. (Net sales = Sales Sales returns and allowances Sales discounts taken)

Depreciation Expense adjustment is $25,000

Interest owed but not yet recorded (accrued interest) is $1,800.

Expired rent (Prepaid Expenses) is $3,000.

Federal Income Tax is calculated at 21% of pre-tax income.

Make this adjustment last. What you should do is make all the above adjustments (enter them in the adjustment columns), then prepare the adjusted trial balance and the income statement columns. Take note of the income (Revenues less Expenses) and multiply that number (pre-tax income) by the 21% tax rate. That will be the federal income tax expense/federal income taxes payable. Make the federal income tax adjusting entries in the Adjustment columns. Then move onto to finish the Adjusted Trial Balance, Income Statement columns, and Balance Sheet columns.

PLEASE use cell references and formulas to complete the Adjusted Trial Balance, Income Statement, and Balance Sheet columns.