Question

The following are a series of transactions that took place for Odin Enterprises, LLC during 2018. Please prepare the following information as it relates to these transactions: A) Prepare the Journal Entries associated with the transactions B) Enter the Journal Entries you created in A) above into T-Accounts showing ending balances if more than one transaction C) Prepare any appropriate Adjusting Journal Entries related to the transactions at the end of the 2018 D) Prepare the Balance Sheet as of December 31, 2018 and the Income Statement for the year ending December 31, 2018 Transactions 1) In 2018 Odin Enterprises had total sales of $850,000. Odin received payment on $725,000 of these sales in 2018. The remainder was still on account on December 31, 2018 2) Odin's Inventory balance at 12/31/17 was all related to a purchase of inventory made at the end of the year. During the year they purchased inventory 4 times as follows: a. February 8, 2018 - 1,000 units at $100,000 b. April 15, 2018 - 1,500 units at $165,000 C. August 28, 2018 - 500 units at $60,000 d December 8, 2018 - 1000 units at $130,000. 50% of this balance was still owed as of December 31, 2018 3) Odin received $120,000 of the Accounts Receivable on the books at 12/31/17 in 2018. The remaining balance was written off to Bad Debts in 2018 as the company who owed the remainder went bankrupt 4) A physical inventory at December 31, 2017 had found Odin to have 1,250 units in Beginning Inventory The physical inventory taken on December 31, 2018 found 1,100 units left in ending inventory. Using the Weighted average method calculate Cost of Goods Sold and Ending Inventory for Odin Enterprises, LLC. 5) On June 30, 2018 Odin Enterprises issues $200,000 of 5 year, 6% bonds at 98. Record the issuance of the bonds. Interest is paid annually on these bonds. 6) Odin used the funds from the bonds to buy a piece of equipment for $200,000 the next day. The new equipment has a five-year useful life. All of the other equipment on Odin's books has a five-year useful life as well. 7) All accruals on the books as of December 31, 2017 were paid in 2018. 8) During 2018 Odin made 12 payments of $2,000 each against the Note Payable. Principal paid was $18,000 with the balance being interest paid. The S/T portion of the note left is $20,000. 9) Wages of $110,000 were earned and paid in 2018. 10) At the end of 2018, the following accruals need to be recorded: a. Accrued wages of $15,000 b. Accrued taxes of $18,000 11) Goodwill is amortized over 15 years. Record the Amortization Expense for 2018. 12) Dividends of $10,000 were paid to shareholders on December 15, 2018 13) The prepaid insurance covered the first 6 months of 2018. In June, Odin purchased a new insurance policy covering July 1, 2018 to June 30, 2019 for $15,000. 14) Prepare any additional adjustments you feel might be necessary before preparing your financial statements.

opening balance sheet

Answer 1

Odin Enterprises, i lc. o the year ended Dec. 31 2018 Journal Entries. ParHicuas S.No. D/cr Amount Dr.) Amount Ccr) Accounts Recevable Alc DY. aso,000 To Sages Revenue Ale (Baint sales vecordled s the yeo) Cosh Alc 25000 DT. To Accounts fereivable Ale C r 25000 Beirf cash Receivcl from Accouns lyuble Jwentory le To Accounts laa le 455000 Dy 455000 eing Javentony Pachesed clurirt the yer కకం0 Accouns ychla eu ३१०००० To Cash (Benf fament mde to ^uppliers) 7okal Rurchase 4s5000 hes outstamait-65000(so%inverty purchesed on Dec , o13 20000 Cash 3) 2000 o AcLOunts Receivable AL eirt cash Received againat opening AtR) Bac Debts wiHen ot To Acto unt fecevabla Ale 3000 Scaf Baamie enint Aount wnken ot ad Bodclebts CS CamScanner

SQ.No (5) Parhulars Dr./cY Amount (Dr Annount(Cr) Cost oGoods Sold te 3,054 Dr To Inventoy Alc 377,0s 4 Beirg nentory soll eurin the yer) Working Note Uns Rele Amount Jan, 2olg (openng 22000 60 Feb.a 2018 Ap. L2019 1,00,000 16s000 oo.oo 1o0D 500 2 2018 తం0 20.00 Soo 130.00 130000 Det 8 2018 To.86 47,000 250 Endi nemtry (at weighie Avemye C-L100 90.86 - १११५6 4,150 Costob oods Sold 196,000 4000 DY. Cash Ate Discount on Bonds Payebls To Bonds lajab Le 200000 (Beirf Bond ued at Discount) 6000 DY Intevest Ata 1o Cash BIC Beiry ntereit on Bonds paid loy th*yaur 20la) for 6 monthA. 400 Interest 4c Disount onBand) Dr. To Discountn Bancls taruble Ate wcunt Anont Amorised un Straight (ine me Hhoed (6moryth 201) 400 Scan CS CamSnYea

Particulars Dn/Cr Armatun CDr) Amnt Cr Alc Dy. 2ర000 20రరం To Cash Belrf equipment uvchoied) SSO0D Dr. DeprecieHon Atc sSooo To Accamuletedd Depreceahan 61C 2019 (BeinDepreciaFon chengesl th yea Workit af Deprecia Hon! 350o Depredaion un apehins Depreciaton un Heu Eguipment 200000/5 o 6months S5,000 21 000 Dr Acevued Wapes ACe DY. Acc aued taAes 37,000 To Cash AiC CBelmy Aceials o Preveus Yeor Paid) s/t - Notes fayable ple JnleseAt Eop. Ale DY. ) Dr. 2५.००० 1o Cash ALe Bel ng Short term &alenu pai'd duirf th year. Longterm- Notes faja^la Di. cs Scanned with To S/1- Notes fuyable CamScaShtterm pohon ^apaated from Corf tem) 20000 20000

articu las Amount (cr. Dr /er Amamt (Dr Wages Atc 11,00o To Cosh e (Bairg Waper pid duing te yew) Wages seర0 A te Dy To Accrued Wajes Sood BeimPonsion poricdeol for Wafes exp. unpaid oluriyt yu) Ta Experse 8రంి To Accruee Taaes. Amurisafon/ Depreciation&pp. Dr. 7Gooduil) Accswmalaked Amertiselion (Being Goewl Amovtsaton bor tha pesu 2010) Dvidend Alc Cash Atc Beint Dividend fai« fs the year 29) This entry cam be rouled thvoujh Eqisk Shorehelders Ae frs Gve Credit to Equik Shortehalders & then Pagnentontny sం hepaid nuran ce Au To Jnuramre Exp DY. 13) CBeing Prepaid Poion f6 manha on Aew mnamu Pacy) CS Scanned with CamScanner

Pakubans Amount(D) Anauntar) 13) Jnaurane Ep కం0 Dy. To Cash కం00 Baing ANe mauramee Poliuy lurchosed) 6000 Jnsuramce Exp Dr. 000 To Pepaicl msuname Ate Scanned with CS CamScaeng hepare 3nsunance oast year changed in PaL).

T- A ccounts Cash Account SlAParcuarg Panticulars Amount Amount Cer. se-No CDr.) To Balamce b/f 390000 2) By Acconts Pasable pe 41,500 ) By mterest Aic ) To Account Reraivabla 72oDO 20 0000 By Pp&E 37o Accounts Receivable 120000 7) By Aceuecl Waped Ale By Accued ares Me 21,00D ) 7o Bonds Aic 196000 /0ి ) By S/T-Ntes Payableale By mtesest Epp Mc 18000 By Wapes e lopoo 12) By Divicdend Al 15000 13) By msuomce Erp Ate 2৭0.S0० Scanned with CS o9200 CamScanner

Acct Receiva le aahies aus SQ.ANo Paticulons Amount Amount (u) CD.) to Balamce blf By Cash 133000 To Sale Revenu 120 000 4sంరం By Cash 13,000 By Badl dlebt By Bal clel 2500o 993000 9a3000 Preper mauramce 13 B4 jn&uamce Go00 To Balame bIf. By Bal.cld. 13) To mauxamce. Scanned with CS 13s00 3క CamScanner

A/C Irwentory 4) y CostoGoads 5okol 377,05y 22000 To Balance blf १११५६ 4557000 )To Account Pajable 499000 477,000 Account layabla 42000 By Balem bF 390000 2) 7o Cash 2) By mventory To Balan cl 12,000 S02,000 So2000 Scanned with CS CamScanner

Income Statement for dhe year Ende Dec 3, 2018 Amo unt ) Sals Revenue Eppendituros Cost ooods Solo 3790s4 Bad Debts ntHen a 13.000 Depreciation Amorisakon S00D 13 so0 Imsu7cmie 25o00 Wares 251,446 Profi bejove mtevest, Fa» & Divielend hessi mterest Eap. 23106 hess: T r the year 22046 Profit betor AppropriatHon lo, 000 Less APpropriaton fr Dvidene 2,11,04 Scanned with CS CamScanner

Baleme Sheet as at Dec- 31, 2018. Cesh 29a500 Accts. Receiveb le 500o nventory ११,৭५६ 7oal Curnent Assets Pp 2E 3A5000 Loss A/D- PPE 2 aso00 Lamd 100,000 225000 Gooelwill 2,SO0 oredbuill Less! A/A Ceas'ts Toal Asses 112,000 Accounts yable Accued Wafes Acerueoltaes 20 060 sIT Nokes Payable 6sంలిరి Tolp Current iabilifies - Naes ajeble Bonds faycble Less D'scount Bonds fayat (360 0) 82000 200000 4al ticbilt ऽ५3५०० Scannepmentck CS 59000 CamSketeined Earning 307o4k

In Opening Balance sheet there is a difference of $176,000, that have been assumed as Retained Earning.