Financial Statement Homework #3 Name_ - YOU MUST SUBMIT ALL PAGES OF THIS DOCUMENT Part 1: Insert the Trial Balance HERE Epcot Mountain Company Trial Balance 11/30/17 Dr co Cash 1 ‘Accounts Receivable 127,000 ‘Allowance for Doubtful Accounts 1,000) Short Term Note Receivable 50,000 Supplies 55,000 Tnventory_ 62,000 Equipment 75,000 [Building 0 ‘Accumulated Depreciation 32,000 Copyright 934,000 ‘Accounts Payable 12,000 i le 0 Interest Payable 0 Unearned Revenue 12,000. ‘ST Note Payable 30,000 | [LT Mortgage Payable 0 Bonds Payable 150,000 Premium on Bonds Payable 16,840 | Common Stock - $1.75 par 105,000 | Paid In Capital In Excess of Par ~ CS 86,000 Preferred Stock - $5 par 1,000 Paid In Capital In Excess of Par ~ PS _{|__| 50,000 | Treasury Stock 0 [ Retained Earnings 3,500 Dividends 2,000 ‘Sales Revenue 490,160 | ‘Sales Returns & Allowances 7,000 Sales Discounts 3,000 Cost of Goods Sold 46,000 ‘Bad Debts Expense 5,000) Depreciation Expense 16,000 | Wages Expense 160,000 Rent Expense 98,000 | Insurance Expense 25,000 Supplies Expense 16,000 Interest Revenue 1,000 | Interest Expense 6500 ‘Gain on Sale of Equipment 15,000 Tncome Tax Expense 6,000 Total 1,005,500 | _ 1,005,500 | ‘YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. ‘SUBMIT AS ONE PDF DOCUMENT.Instructions: You must tum in the work performed on the sheets printed with this page. This WILL NOT BE ‘ACCEPTED ON PLAIN PAPER. ‘© Write the journal entries (on the following General Journal page) required for each of the events described below. Write the entries in the order described below (#1 - #8). ‘© Use ONLY the accounts listed on the trial balance for your journal entries. Post the transactions to individual T-accounts and prepare an adjusted trial balance for your assigned company from page one as of December 31, 2017. 1. The company purchased a building December 1, 2017 with a LT Mortgage Payable of $300,000 at 8% interest. (Record the purchase of the building.) 2, The company issued 1,000 shares of Common Stock for $6,000 on December 25, 2017. 3. On December 29, 2017 the company declared a cash dividend of $3.00 per share for common stock on the shares issued and declared (including the additional 1,000 shares issued on December 25%.) 4, The terms of the LT mortgage payable from #1 above require the company to make monthly installment payments over the term of the loan. Each payment consists of interest on the unpaid balance of the loan and a reduction of loan principal. Record the first monthly payment of $3,800 on the LT Mortgage Payable ‘on December 31, 2017. 5. ‘The company last paid interest on the ST note payable on November 1, 2017. Record the accrued interest expense for the last 2 months of 2017. The annual interest rate is 8%. Round to nearest whole dollar. 6. The Bonds Payable and related Premium amounts on the Nov. trial balance relate to the Jan. 1, 2017 issuance of the following bonds: On Jan. 1, 2017, the company issued 10%, 10-year bonds when the market rate for similar investments was 8%. ‘The company pays interest each year on January 1", On Dec 3, 2017, use the effective interest method of amortzing the premium on bonds payable to accrue the interest expense for 2017, e l 5 dollar. 7. The Unearned Revenue amount on the Nov. trial balance relates to amounts that the company previously collected in cash for sales that were to be completed in the future. The company completed some of these sales during December and now owes only $10,000 of that unearned revenue. Record the necessary adjustment for December 31, 2017. 8. On December 31, 2017, the company purchased 50 shares of its own Preferred Stock for Treasury Stock for $11 per share. YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. 2 SUBMIT AS ONE PDF DOCUMENT.GENERAL JOURNAL DATE | ACCOUNT NAME DEBIT CREDIT 1BANT [Dr Buldma 400,000 er, LT Mortanae Payeoble 30, 1a/a5 7 Conk 909) . Common Sleck= 31.75 par 750 Pard In Capital in Excess of Par-C3| 4,850 taZaI/T Dividends 31g, O00 Dendes Payalole B1Z,O00 has awv7 Taterest Gxpense 1,000 LT Mottnage Payable 1,800 1» Cash, ha/BVANT ) 400 400 tar sue7, hash, De Unearned Revenoe 2.090, er. Seles Revenwe a hare? [De “Trees Shecke cr. Ces YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. SUBMIT AS ONE PDF DOCUMENT.Use the space below for T-accounts (REQUIRED). (Specific instructions: Prepare T-accounts for each account affected by a journal entry, Write in the unadjusted balance for each of these accounts (from page 1)...the unadjusted balance might be a debit, a credit, or zero balance. Now you are ready to post your journal entries from page 3 onto the corresponding T-accounts and then calculate adjusted balances.) Burlding 300,00 c K PICEP- cs Divide 105, 00¢ 86,000 ee 4,250 : 90, 250 0,5. ]490,180 YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. SUBMIT AS ONE PDF DOCUMENT.ADJUSTED TRIAL BALANCE 12/31/17 Dr co Cask 113,680 Accounts Recavaule 127, 260 [Allowance tor Dokttul Recounts Loos Shoct tarm Notes Recarvavle Sopples Equipment 75,000 Build ma, 50, O60) laccuwtufated Depreciahon $a,555 Copy nant 94,550 Accounts Payee 12,00 Dividends Payable Bigooo) narest Tayoble 15.400 Onearmed Reerine fa, 500 St Nete Payable 30,005 LT Mortnage Payable 298, 200 Bonds Payable 150,000 Peemom an Gonds Vayadle 1587 amon Alec! ~ TL75 par oe, 730 Pad In Capital mm Excess a Paes 0,250 Pretacred Stock ~ 35 par 1,906 [fod in Captal m Cxcess of for US 50,005 Prencory’ atoele ae Retemad Carninas Pesos Div bands soles Revawwe Ka 16S) Sales fatorns ond Allewancgs Sales Dricoowls Gest ot Goods Sala [Bod Davis Sxpense 5, 200. [Depreciation Expense 16 coo, east Em perise 160,008 Rent” Expense 98,000 : limgutance Gxpanse 135, 005. epplies Exper 16,008 (herest Revenue ee [nkurest Expense. 7aa47 Garr on Sale of Cquipment Baas ncowne “Tox Ex pense ag OOS Frstal yeaa TSU, 247 ‘YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. 5 SUBMIT AS ONE PDF DOCUMENT.Supplemental Questions 1, What will be the balance in the Mortgage Payable Account at Jan. 31, 2018 after the second monthly payment is made? cue 1,988 2.99, 200 (0.08 Ch2 LT Me rtyage ga : 2,800 98, 200-1, 812 2. The Company is about to issue $2,000,000 of 5-year, 12% bonds. Interest will be paid semi- annually. The market interest rate for such securities is 10%. How much can The Company expect to receive from the sale (issuance) of these bonds? 5 eta x Sha® 120,002 2,000, 90° Bx gr lO7y 2 3920 913,308 YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. 6 SUBMIT AS ONE PDF DOCUMENT.Part 2: NOTE: This is a DIFFERENT COMPANY. Using the trial balance below, complete the Multi-Step Income Statement and prepare the Statement of Retained Earnings and if ‘on the pages which follow. To get full credit you must include all critical subtotals. Part 2: Insert Second Trial Balance HERE. ‘Quagmire Company Adjusted Trial Balance December 31, 2017 DEBIT ‘CREDIT Gash ‘Accounts Receivable ‘Allowance for Doubtful Accounts ‘Short term Note Receivable Interest Receivable ‘Supplies Tnventory — Prepaid Expenses Equipment ‘Accumulated Depreciation »/| Copyrights. ‘Accounts Payable 70. Interest Payable _20] Unearned Revenue 50. | Long Term Note Payable 4,400 | Common Stock 3,600 Paid-in-Capital In Excess of Par - CS __800 | Retained Earnings (1/1/15) 2.160 Dividends Sales Sales Returns & Allowances Discounts. 2,970 a] BeBkklel ie 49,100 i 2 eee E 150) LTotals_ 61.590} YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. ‘SUBMIT AS ONE PDF DOCUMENT.Multi Step Income Statement For the year ended December 31, 2017 (Be sure to include all the necessary headings, totals and subtotals as outlined in Chapter 5. You may not need to use all the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Income Statement, use the right column for subtotals and totals.) Soles Seles Revenve 49,100 Us 34 Allowances aks oo. et 49,005) da Sell 24,600 34,400 Bad Debt Expense zo Expense 710. Exp 14,050 ‘YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. 8 ‘SUBMIT AS ONE PDF DOCUMENT.Statement of Retained Earnings For the year ended December 31, 2017 Bea. Retained Earnings Cisi/aov7) Awbo ‘Ade: Nal Income Less? Dividend, End. Rekamed Cacnmas Ca/s\ ion) YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. ‘SUBMIT AS ONE PDF DOCUMENT.Classified Balance Sheet December 31, 2017 (Be sure to include all the necessary subtotals and totals as outlined in Chapter 2. You may not need ‘to use all of the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Balance Sheet, use the right column for subtotals and totals.) Assets Torrent Assehs ook 9758 1,066 21,340. Corrant Lioloilihes Recounts Payoble Wrest Payable . aes 5 ere wilvhes Eno, Terma Note Payable 1400, “fetal Lona “Ter vale 400 Total Liabilihes ao Stockholder, Equity Poidmna Capitert amon Shoele Paden Co a Excess of Par-Cl Pad 4400 Rebained G05 fol Stee! 19, 290 “Tete\ Liebe : Meltoiders, Causdy an & ‘YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. 10 |UBMIT AS ONE PDF DOCUMENT.