help
Information Set ACC 5390 Pets in a JAR Spring 2021 Case Information Pets in a JAR (hereinafter JAR) is a retail pet store. The unadjusted trial balance for JAR as of 12/31/19 is included on the worksheet page. JAR makes ANNUAL adjusting entries. In addition to the trial balance, the controller’s group has compiled the following information to facilitate the preparation of year-end financial statements: Put your name at the top of the worksheet. Save your work as JAR1.last name first initial, for example my file would be JAR1.RomanusR 1. JAR purchased an insurance policy on 8/1/19 that is effective 8/1/19 to 7/31/20. 2. Employees worked a total of $1,440 between the last pay date and 12/31/19 that will be paid on 1/3/20. 3. JAR determined that a $350 receivable from Lucky's Lively Llamas is not collectible. JAR uses the A/R (balance sheet) allowance method for bad debts. 4 JAR took a physical count of supplies on 12/31/19 and there was $456 left in the supply closet. 5. JAR has a note payable to Bank of America (hereinafter BOA) for $50,000 at an annual interest rate of 3%. The five-year note is dated 4/30/19 and pays interest annually every 4/30. 6. On 12/31/19 JAR sold $5,000 of merchandise to Patty's Pet Groomers. Patty paid for the merchandise but JAR cannot deliver it until 1/6/20. JAR has included the $5,000 in Cash and Sales on the unadjusted trial balance. 7. An analysis completed by the controller’s office, using the balance sheet (A/R) approach, indicates that 5% of total accounts receivable is uncollectible. (Round to nearest whole dollar). 8. JAR uses a FIFO perpetual inventory system. A physical count of invenotry reveals $10,908 of inventory on hand at year end. (Do not use an inventory over/short account) 10. JAR owns a building that was purchased in 2015 for $248,500. The building is being depreciated using straight line over a 20 year useful life and has a $74,500 salvage value. JAR's controller wants to find the orginal invoice for the building purchase and belives the invoice was filed by month of purchase, what month in 2015 was the building purchased?Put answer here, just also do AJE for depreciation for 12/31/19 11. JAR owns a forklift for moving freight that was purchased in 2016 for $9,300. The forklift is being depreciated using straight line over a 10 year useful life and has a $2,100 salvage value. 12. JAR has one investement currently classified as Available for Sale, as of 12/31/19 the fair value of the investment is $2,310. 13. JAR remits the state's 6% sales tax during the first week of the month following the end of each quarter. Based on JAR's 12/31/19 sales tax liability, what were JAR's total 4th quarter 2019 pre-tax sales?Put answer here; this item does not require an AJE 14. The tax rate is 30% which affects all items of income and expense at the same rate. Hint: you must determine income before taxes to calculate income tax expense. (Round total income tax expense to nearest whole dollar) 15. The 30% tax rate applies to “other comprehensive income” items as well as income statement items. 16 JAR declared and paid $0.10 /per share in dividends during the year 2019. 100,000 shares of stock were outstanding during the entire year. (This dividend has already been declared and paid and is thus recorded in Dividends, close the Dividend account as part of closing entries, no adjusting entry is needed for this.) Required: A.Prepare all appropriate adjusting entries in general journal form. Post the entries to the worksheet and extend the amounts to the remaining columns. B.Prepare the adjusted trial balance that reflects your adjusting entries. (This should calculate automatically) C.Prepare the following financial statements: 1. Income statement (including EPS) (MULTI-STEP) 2. Statement of comprehensive income 3. Statement of retained earnings 4. Balance Sheet (CLASSIFIED) D.Prepare the appropriate closing entries in general journal form. E.Post closing entries to worksheet. F. Prepare post-closing trial balance. (This should calculate automatically). Worksheet Name ____________________________________ Pets in a JAR Year-End Worksheet December 31, 2019 Unadjusted Trial BalanceAdjusting EntriesAdjusted Trial BalanceIncome StatementClosing EntriesPost Closing Trial BalanceBalance Sheet Account TitlesDrCrDr.#Cr.#DrCrDrCrDr.#Cr.#DrCrDrCr Cash18,15418,15418,15418,154 Supplies1,5351,5351,5351,535 Accounts Receivable26,00026,00026,00026,000 Allowance for Doubtful Accounts2,1002,1002,1002,100 Inventory10,78310,78310,78310,783 Prepaid Insurance1,8001,8001,8001,800 Investment in marketable securities2,1252,1252,125- 02,125- 0 Land78,00078,00078,00078,000 Buildings248,500248,500248,500248,500 Accumulated Depreciation-Bldg28,27528,27528,27528,275 Equipment9,3009,3009,3009,300 Accumulated Depreciation-Equip1,8001,8001,8001,800 Accounts Payable13,87013,87013,87013,870 Payroll Taxes Payable451451451451 Sales Tax Payable5,2865,2865,2865,286 Interest Payable- 0- 0- 0 Salaries and Wages Payable- 0- 0- 0 Note Payable50,00050,00050,00050,000 Unearned Revenue- 0- 0- 0 Income Tax Payable- 0- 0- 0 Common Stock, $1 par100,000100,000100,000100,000 Retained Earnings79,41579,41579,41579,415 Dividends10,00010,00010,00010,000 Sales Revenue383,137383,137383,137- 0 Cost of Goods Sold98,100 98,10098,10098,100 Salaries and wages expense146,803146,803146,803146,803 Advertising expense5,3005,3005,3005,300 Depreciation expense- 0- 0- 0 Misc. expense- 0- 0- 0 Supplies expense- 0- 0- 0 Utility expense7,9347,9347,9347,934 Interest Expense- 0 - 0 - 0 Bad debt expense- 0- 0- 0 Insurance expense- 0- 0- 0 Unrealized gain/loss on AFS security- 0- 0- 0- 0 Income tax expense- 0- 0- 0 Income Summary Totals664,334664,334- 0 - 0664,334664,334 664,334281,197406,197281,197 Total AssetsNet Income125,000 Total LiabilitiesComp Income125,000 Total Equity Adj Entries Adjusting entries No.Account titles:DebitCreditSupporting Caluculations 1 2 3 4 5 6 7 8 9 10 11 12 13 IncStatement Make sure you do multistep income statement See Ch 4 Illustrations 4.1 and 4.20 (comp income) Income Statement St of Ret Earnings See Ch 4 Illustration 4.19 Statement of Retained Earnings ClosingEntries Closing entries No.Account titles:DebitCreditSupporting Caluculations Bal Sheet Prepare a CLASSIFIED BALANCE SHEET See Ch 5 Illustration 5.16 Balance Sheet CK FIGURES CHECK FIGURES: Net Income74,777 Comp Income 74,962 Total Assests353,550