Reference no: EM132238160

Part A:

Been Carded, Ltd., is a purveyor of woolen goods and is known for its high quality merchandise. The business started up in January 2012 and has been quite successful. Complete the Journal Entries for all 2016 transaction and adjustment information listed below. You do not have to date your journal entries. The first journal entry has been completed for you.

Transaction and Adjustment Data:

1 Paid the $8,377 in salaries owed at year end 2015.

2 Collected the $22,805 of accounts receivable due to them at year end 2015.

3 Paid the $381,796 owed on account at year end 2015.

4 Purchased additional Furniture & Equipment on January 2, 2016 costing $76,000 due to increased shipping activities for their growing

5 Paid $2,940 to renew their annual insurance policy on March 1, 2016.

6 Purchased a new computerized sales system on April 1, 2016 for $72,000. The system has a useful economic life of 3 years and will be depreciated monthly using the straight line method. The system has

7 Made a payment on the long-term note of $92,000.

8 Made a payment on the mortgage note of $16,800.

9 Paid the interest of $17,257 that was payable at year end 2015.

10 Paid the taxes owed of $109,670 at year end 2015.

11 Sales of woolen goods for 2016 were $2,542,690. At December 31, 2016, $41,550 of this amount was still listed as receivable.

12 The total cost of the goods sold during 2016 was $1,652,748.

13 Purchased inventory during the year that cost $1,690,000. The company owed $411,050 on these purchases at year end 2016.

14 Total Salaries Expense for the year were $97,050 and total interest expense was $14,211. Salaries of $6,420 and interest expense of 514,211 are still payable at year end 2016.

15 Supplies inventory of $2,677 was purchased with cash during 2016. Total supplies inventory of $578 was still on hand at year end 2016.

16 Depreciation expense needs to be recorded on the buildings, furniture and equipment, and the new computer system at year end 2016. All items are depreciated on a monthly basis using straight line depreciation with no salvage value. The building has a useful life of 40 years and the furniture and equipment is depreciated over 7 years. As noted above, the new sales system has a useful life of 3

17 The Prepaid Insurance and the Supplies Inventory need to be adjusted at year end 2016 so that the proper amount for insurance expense and supplies expense is recorded. See items 5 and 15 for

18 Estimated income tax payments of $120,000 were made during the year 2016.

19 The company paid out cash dividends totaling $500 to its shareholders.

20 The company determined that a customer account was not collectible, and wrote off $135 on December 31 by debiting the Allowance for Doubtful Accounts and crediting Accounts Receivable. 211The company accrues $507 for estimated bad debts. 22 Tax expense is 30% of Income before Income Tax.

a.) Complete the Journal Entries for all transactions listed.

b.) Post the Journal Entries from Part A to the appropriate T-Accounts.

c.) Provide Calculations Proving your beginning and ending Accounting Equations Balance.

d.) Create a Pre-Closing Trial Balance.

e.) Complete the year end Closing Entry.

f.) Create a Post-Closing Trial Balance.

Attachment:- Excel Workbook Assignment.zip