Question

(1) Prepare adjusting journal entries for the company using the information given on the "Adjusting Journal Entries" tab. (You may also need to refer to the "Trial Balance" tab.) Use formulas for your calculations, where possible.

(2) Link the adjusting journal entries into the "Trial Balance" tab (see appropriate column), and use Excel formulas to calculate the 12/31/2018 Adjusted balances.

(3) Using formulas that link back to the "Trial Balance" tab, prepare a Classified Balance Sheet and Multi-Step Income Statement for 2017 and 2018. Using formulas, also prepare a indirect method Statement of Cash Flows for the year ended December 31, 2018.

(4) Using formulas that link back to the "Trial Balance" tab, prepare the entity's 12/31/2018 closing entries.

(5) Prepare the entity's 12/31/2018 post-closing trial balance.

Walnut Grove Trial Balances From "Adjusting Journal Entries" tab To be calculated by student 12/31/2017 FINAL 12/31/2018 UNADJUSTED ADJUSTMENTS ADJUSTED Debit Credit Credit Debit Credit Debit Credit Debit 410,753.54 Cash 326,356.20 Accounts Receivable 26,676.00 42,051.43 Inventory 18,630.00 24,861.10 Prepaid Expens es Building 963.00 987.08 119,250.00 119,250.00 Computers & Software 2,007.00 7,047.00 Furniture & Fixtures 5,184.00 16,299.00 Land 45,000.00 45,000.00 Machinery & Equipment Accumulated Depreciation Accounts Payable 78,120.00 78,120.00 837.00 837.00 11,191.50 11,471.29 Payroll Tax Payable Sales Tax Payable Interest Payable 4,487.40 4,599.59 2,292.30 2,349.61 3,656.25 3,747.65 Unearned Revenue 20,475.00 Line of Credit 315,000.00 258,750.00 Notes Payable Peters, J., Capital Peters, M., Capital Net Income/Retained Earnings Material & Supplies Sales 900.00 900.00 900.00 900.00 282,921.75 129,343.95 258,688.80 265,156.02 Small Tool Sales 8,085.60 8,287.74 Tool Rentals 1,008.00 1,033.20 Vendor Compens ation 404.10 414.20 COGS Material & Supplies 80,040.60 82,041.62 COGS-Small Tools 13,019.24 16,630.83 12,701.70 COGS-Wages 16,225.20 Depreciation Expense Insurance Expense 4,343.13 4,237.20 Interest Expense Office Supplies Expense 115.20 118.08 Payroll Tax Expense 1,242.00 1,273.05 Postage Expense 46.80 47.97 736,794.90 736,794.90 861,843.06 861,843.06 Check Figure-should be zero (0)

Grading will be based on accuracy, use of Excel formulas (where possible), and professional formatting of tabs.

Answer 1

List of Adjustment Entries

Sl	Date	Particulars	Dr (USD)	CR (USD)
1	31/12/2018	COGS - Materials & Supplies	150.00
		To Accounts Receivable		150.00
		(15% Discount on individual purchases of $100 each for 20% of 50 coupons)
2	31/12/2018	COGS - Small tools	800.00
		To Inventory		800.00
		(Inventory count detected loss of small tools)
3	31/12/2018	Material & Supplies Sales	450.00
		To Tool Rentals		450.00
		(Correction of worng booking of Tool Rentals)
4	31/12/2018	Depreciation	25,749.15
		To Accumulated Depreciation		25,749.15
		(Depreciation for the year charged per calculation table)
5	31/12/2018	Insurance Expense.	246.77
		To Prepaid Expenses		246.77
		(Insurance costs expired)
6	31/12/2018	Interest Expense	1,439.58
		To Ineterst Payable		1,439.58
		(Interest payable @ 5% p.a. ----
		On 14,000 for 10 months
		On 30,250 for 6 months
		On 12,000 for 2 months)

Depreciation Table for Year 2018

Asset		Gross Value	Deperciation applicable for (months)	Life	Method	Depreciation for 2018
Buildings	Opening Amount	119,250.00	12	40	SLM	2,981.25
Buildings addition	Additions	-	0
Computers & Softwares	Opening Amount	2,007.00	12	5	SLM	401.40
	Additions	5,040.00	10	5
Furniture & Fixtures	Opening Amount	5,184.00	12	7	SLM	740.57
	Additions	11,115.00	6	7		793.93
Machinery & Equipment	Opening Amount	78,120.00	12	Year 2 of 5	Sum of Years Digits	20,832.00
	Additions	-
	TOTAL DEPRECIATION					25,749.15