Question

Excel Project 2 Downtown Cabinet Company Instructions: Client uses Accrual Method of Accounting. 1. Enter the trial balance into an Excel Spreadsheet. 2. Record adjustments through a General ledger. Create adjusting entry journals and T-Bar accounts. 3. Make an adjusting trial balance worksheet including the changes affecting the Balance Sheet and Income Statement. 4. Create a final Income Statement, Balance Sheet, and Statement of Retained Earnings for the month ended. 5. Extra Credit (5 points)- Create and Administration Page to organize all sheets of the Excel File Administration page should link to sheet in Excel File. In addition, sheet should link back to Administration page. 6. Upload the Excel File on Blackboard Note: Adjusted amounts should be linked to their corresponding financial statement. The idea is to make all your changes and adjustments on the trial balance worksheet so that the financial statement will automatically change accordingly. Adjustments to the Trial Balance at 11/30/20XX 1. Estimated bad debts is one-half of 1 percent of sales 2. Insurance expired for the month of November - $480 3. Interest accrued on notes receivable for the month of November - $725 4. Downtown Cabinet Company purchased 10 computers for $15,000 on a no interest 5 year loan. Record this purchase and one loan payment was paid in the month of November. 5. The accounting department discovered an overpayment of rent in the amount of $1,000 6. Property taxes accrued for the month of November should be at $5,000 7. Income taxes are estimated to be 22% of net income.

Answer 1

Adjusting entries:

Date	Account title and explanation	Debit	Credit
11/30/20XX	Bad debt expense [400,000 x 1%]	4000
	Allowance for doubtful accounts		4000
11/30/20XX	Insurance expense	480
	Prepaid insurance		480
11/30/20XX	Interest expense	725
	Interest payable		725
11/30/20XX	Computers	15000
	Notes payable		14750
	Cash (15000/60)		250
11/30/20XX	Prepaid rent	1000
	Rent expense		1000
11/30/20XX	Property tax expense	5000
	Property tax payable		5000
11/30/20XX	Income tax expense (See income statement)	2903
	Income tax payable		2903

Worksheet:

	Unadjusted Trial balance		Adjustments		Adjusted Trial balance		Income statement		Balance sheet
Account title	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	1140			250	890				890
Notes Receivable	16000				16000				16000
Accounts receivable	41000				41000				41000
Merchandise inventory	40000				40000				40000
Prepaid insurance	960			480	480				480
Prepaid rent			1000		1000				1000
Computers			15000		15000				15000
Furniture and equipment	67000				67000				67000
Allowance for doubtful accounts				4000		4000				4000
Accumulated Dep.-furniture and equp.		12000				12000				12000
Notes payable		20000		14750		34750				34750
Accounts payable		17500				17500				17500
Interest payable				725		725				725
Property tax payable				5000		5000				5000
Income taxe payable				2903		2903				2903
Bonds payable		30000				30000				30000
Common stock		50000				50000				50000
Retained earnings 1/1/2016		16200				16200				24492
Dividends	2000				2000
Sales		400000				400000		400000
Cost of goods sold	316000				316000		316000
Sales Salaries Expense	20000				20000		20000
Advertising expense	2200				2200		2200
Traveling expense	8000				8000		8000
Salaries,office and general	19000				19000		19000
Telephone and internet expense	2600				2600		2600
Rent expense	4800			1000	3800		3800
Property tax expense	3300		5000		8300		8300
Interest expense	1700				1700		1700
Bad debt expense			4000		4000		4000
Insurance expense			480		480		480
Interest expense			725		725		725
Income tax expense			2903		2903		2903
Totals	545700	545700	29108	29108	573078	573078	389708	400000	181370	181370

Income statement:

Income statement
For the year month ended 11/30/20XX
Sales		400000
Cost of goods sold	316000
Sales Salaries Expense	20000
Advertising expense	2200
Traveling expense	8000
Salaries,office and general	19000
Telephone and internet expense	2600
Rent expense	3800
Property tax expense	8300
Interest expense	1700
Bad debt expense	4000
Insurance expense	480
Interest expense	725
Total expenses		386805
Income before taxes		13195
Income taxes (13195 x 22%)		2903
Net income		10292

Statement of retained earnings:

Statement of retained earnings
For the year month ended 11/30/20XX
Retained earnings, Beginning	16200
Net income	10292
Balance	26492
Dividends	-2000
Retained earnings, ending	24492

Balance sheet:

Balance sheet
At the year month ended 11/30/20XX
Assets		Liabilities and stockholder's equity
Current assets:		Current liabilities:
Cash	890	Accounts payable	17500
Notes Receivable	16000	Interest payable	725
Accounts receivable	41000	Property tax payable	5000
Allowance for doubtful accounts	-4000	Income taxe payable	2903
Merchandise inventory	40000	Total current liabilities	26128
Prepaid insurance	480	Notes payable	34750
Prepaid rent	1000	Bonds payable	30000
Total current assets	95370	Total liabilities	90878
Property,plant,and equipment:		Stockholder's equity:
Computers	15000	Common stock	50,000
Furniture and equipment	67000	Retained earnings	24,492
Accumulated Dep.-furniture and equp.	-12000	Total stockholder's equity	74,492
Property,plant,and equipment-net	70000
Total assets	165370	Total liabilities and stockholder's equity	165,370