Question

On 1/1/2018, Sam's Sporting Goods has the following account balances 62,000 23,000 2,100 35,200 100,000 Cash Accounts Receivable Allowance for Doubtful Accts Inventory Consists of #3520 urtits @ $10 cost per unit Building A/D Building Accounts Payable Notes Payable (Syr, 6%, interest due every 12/31) Common Stock Retained Earnings 25,000 12,200 50,000 110,000 20,900 220,200 220,200 During the month of January 2018, the following transactions occur: Jan 1: Sell Building for $60,000 cash. Jan 1:Purchase warehouse Equipment with cash $20,000. Estimated Salvage value is $2,000 at the end of its 6-year service life. Jan 3:Purchase machinery $10,000. Costs associated with the purchase are: freight-in costs of $300, and construction of specialized platform to hold the machine, $500. All amounts are paid with cash. Estimated useful life is 20.000 machine hours, with a $1,000 Salvage Value. Jan 4:Pay cash an accounts payable $5,200 Jan 8:Purchasc additional inventory on acoount, $1,500 (#100 units @ $15 cach). Jan 10:Purchase additional inventory on account, $1,000 (#50 units @ $20 cach). Jan 15:Rcocive cash on accounts receivable 10,000 Jan 19:Its Friday, payday. Pay salaries to employees for the current wook, $5,000 Jan 28:Pay January utilities $2,500 Jan 30:Sold 300 items to customers on account, at a retail price of $110 each. The company uses LIFO to calculate COGS Requirements: 1. Record each of the transactions above (Journal Entries) 2.Post January transactions (JE's) to the General Leger 't accounts 3. Record Adjusting Journal Entries (AJES) on Jan 31: a. Depreciation on the equipment is calculated using Straight line method b. Depreciation on the machine is calculated using Activity Based (Units of Production) Method. January machine hours were 200 c. Accrued interest on NP for January d. Accrued solaries at the end of January. Our employees always work a M-F workweek, and are poid for that week each Friday. 1/31/2018 falls on a Wednesday. e. The company anticipates 20% of ending AR will be uncollectible. 4.Post all Alc's to the General Leger "T Accounts 5.Create an Adjusted Trial Balance 6. Create a Multi-Step Income Statement (assume no Income Tax) 7.Create a Statement of Retained Earnings 8.Create a Classified Balance Sheet 9. Record Closing Entries 10.Create a Post Closing Trial Balance

Answer 1

As per policy, only 4 parts of a question is allowed to answer, here solving 7 parts for you :

No spacing to keep answer within allowed characters limit of 65000, please.

1) Journal entries:
Date	Accounts Title	Debit $	Credit $
1-Jan	Cash	60000
	Acc Dep.-building	25000
	Loss on sale of building	15000
	Building		100000
	(building sold and loss booked)
1-Jan	Warehouse equipment	20000
	Cash		20000
	(purchase of warehouse equipment with salvage 2000/life 6 yrs)
3-Jan	Machinery	10800
	Cash		10800
	(being machinery purchased for 10000, freight 300 & installation 500)
4-Jan	Accounts payable	5200
	Cash		5200
	(creditors paid)
8-Jan	Inventory	1500
	Accounts payable		1500
	(inventory purchased on credit)
10-Jan	Inventory	1000
	Accounts payable		1000
	(inventory purchased on credit)
15-Jan	Cash	10000
	Accounts receivable		10000
	(cash received from debtors)
19-Jan	Salary expense	5000
	Cash		5000
	(being salary paid)
28-Jan	Utilities expense	2500
	Cash		2500
	(utilities being paid)
30-Jan	Accounts receivable	33000
	Sales revenue		33000
	(300 items sold on credit)
30-Jan	COGS	4000		(50*20+100*15+150*10)
	Inventory		4000
	(inventory for Cost of sales at LIFO booked)
3) Adjusting journal entries:
31-Jan	Dep.	250		(20000-2000)/(6*12)
	Acc. Dep.-equip		250
	(being depreciation on equipment)
31-Jan	Dep.	98		(10800-1000)*200/20000
	Acc. Dep.-machinery		98
	(being depreciation on machinery)
31-Jan	Interest expense	250		(50000*0.06/12)
	Interest payable		250
	(interest exp. Booked on NP booked)
31-Jan	Salary expense a/c	5000
	Salary payable		5000
	(being salary payable booked)
31-Jan	Bad Debt expense	7100		(46000*0.20)-2100
	Allowance for Doubtful Accts		7100
	(being allowance raised and bad debt exp. Booked)

2&4) t-Accounts:
DEBIT	AMOUNT $	CREDIT	AMOUNT $
Cash a/c
OB	62000	1-Jan	20000
1-Jan	60000	3-Jan	10800
15-Jan	10000	4-Jan	5200
		19-Jan	5000
		28-Jan	2500
		CB	88500
Acc Receivable a/c
OB	23000	15-Jan	10000
30-Jan	33000	CB	46000
Allowance for Doubtful Accts a/c
CB	9200	OB	2100
		31-Jan	7100
Inventory a/c
OB	35200	30-Jan	4000
8-Jan	1500	CB	33700
10-Jan	1000
Building a/c
OB	100000	1-Jan	100000
Acc. Dep. - building a/c
1-Jan	25000	OB	25000
Account payable a/c
4-Jan	5200	OB	12200
CB	9500	8-Jan	1500
		10-Jan	1000
Notes payable a/c
		OB	50000
Common Stock a/c
		OB	110000
Retained Earnings a/c
		OB	20900
Loss on sale of building a/c
1-Jan	15000
Warehouse equipment a/c
1-Jan	20000
Machinery a/c
3-Jan	10800
Salary expense a/c
19-Jan	5000	CB	10000
31-Jan	5000
Utilities expense a/c
28-Jan	2500
Sales revenue a/c
		30-Jan	33000
COGS a/c
30-Jan	4000
Depreciation exp. a/c
31-Jan	250	CB	348
31-Jan	98
Acc. Dep. - Equip a/c
		31-Jan	250
Acc. Dep. - Machi a/c
		31-Jan	98
Interest expense a/c
31-Jan	250
Interest payable ac
		31-Jan	250
Salary payable a/c
		31-Jan	5000
Bad Debts exp. a/c
31-Jan	7100

5) Adjusted Trial Balance
Accounts Title	Debit $	Credit $
Cash	88500
AR	46000
Allowance for D/accts		9200
Inventory	33700
AP		9500
Int. payable		250
salary payable		5000
NP		50000
Com Stock		110000
RE		20900
Loss on sale of building	15000
warehouse equip	20000
Machinery	10800
salary exp.	10000
utilities exp.	2500
Sales revenue		33000
COGS	4000
Dep. Exp.	348
Acc. Dep- Equip		250
Acc. Dep- Machi		98
Interest exp.	250
Bad debt exp.	7100
Total	238198	238198

6) Income/Loss Statement:
Sales revenue	33000
Less: COGS	4000
Gross Profit	29000
Less:Adm & Sell exp.:
salary exp.	10000
utilities exp.	2500
Dep. Exp.	348
Bad debt exp.	7100
total expenses	19948
Income before interest	9052
Interest exp.	250
Income before other income	8802
Loss on sale of building	15000
Net Loss	6198
7) Statement of RE:
Opening Balance	20900
Less:net loss	6198
Closing Balance	14702