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I need help with this extensive accounting problem. My numbers are not adding up so I would like to see how the whole problem is done as I cannot get the right answer due to each part affecting the next.
de Accontns Packet Fxercise 4.7 (Comprehensive Exercise Hoosier Ine. Balance Sheet As of December 31,2017 Current Liabilities: Current Assets: 2,700 380,000 Accounts Payable 22,300 Interest Payable 3,000 Other Payable Accounts Receivable Supplies Prepaid Insurance Total Current Assets 2,500 9,000 Unearned Revenue 74,200 414,300 Total Current Liabilities Long-term Assets: Equipment Long-term Liabilities Bonds Payable 99,000 120,000 Equipment, net Land Total Long Term Assets 98,000 Stockholders Equity 28,400 Common Stock 126,400 Retained Earnings 11,500 Total Stockholders Equity 367,500 Total Assets 540,700 Total uabilities & Equity 540,700 The December 31, 2017 balance sheet for Hoosier, Inc. is provided above. A list of transactions and adjustments for January 2018 are provided on the next page. Enter the beginning balances on the T accounts (use the 12/31/2017 Balance Sheet) Note: normally these balances would already be in the accounts carried over from the prior period Prepare a journal entry for each January transaction. Remember to use proper form by listing debits first and indenting accounts that are credited. Post each journal entries to the appropriate T accounts. Calculate the ending balance for each T account. Prepare a Trial Balance. Check to see that Debits -Credits Prepare the adjusting joumal entries. Post the adjusting journal entries to the T accounts. Calculate the ending balance for each T account. Prepare an Adjusted Trial Using the balances on the Adjusted Trial Balance prepare the financial statements. Prepare the statements in the above order. Reminder: adjusted trial balance does not show the ending balance for retained earnings! Prepare the closing entries. Post the closing entries to the T accounts. Calculate the ending balance for each T account. Prepare a Post-Closing Trial Balance. . 62
January 2018 Transactions 1/1/2018 Hoosier purchased Equipment for S15.000 cash. 1/2/2018 Hoosier collected $14,000 in cash from a customer for work previously performed and billed in 2017 1/4/2018 Hoosier purchased $2,100 of supplies inventory with cash. Bonds Payable is due in 2022. 1/8/2018 Hoosier paid S1,200 to a vendor for supplies previously purchased on credit 1/6/2018 Hoosier repaid $3,800 of the Bond Payable (principal). The remainder of the - in December 2017 1/10/2018 Hoosier completed S30.000 of services for a customer, 20% was received · in cash; the remainder was billed. 1/20/2018 Hoosier sold the land for cash, resulting in a $3,000 gain. Hint: Look at the 1/29/2018 Hoosier paid S1,700 to the bank for interest. $1.000 was for interest expense 1/30/2018 Hoosier declared but did not pay a cash dividend of $2,100. balance sheet to see the cost of the land. incurred in January and $700 was to pay the amount owed at 12/31/17. 1/31/2018 Hoosier paid employees S3200 for work performed during the January 2018. ·
Prepare the January Journal Entries and Date Account post to the T-Accounts: Debit Credit c. 2 200
390,000 1 5000 2l00 8 200 l 200 31400 7 Accumulated Land EquipmentDe no oco 28400 Accounts Payable Unearnecd Revenue Other Payables 2, soo Interest Payable 2,700 leoo 2y00o 0 a Dividends Bond Payable Wages Payable Payable Fees Earned 9,000 3800 Supplies Expense Insurance Expense Depreciation Expense Common Stock Dividends Declared Gain on Sale of Land Wages Expense 3200 Interest Expense L 2/00 Retained Earnings 350000 2 100
Hoosiers Inc. Unadjusted Trial Balance January 31, 2018 Debit Credit Total $592,100 $592,100
Adjusting Entries needed at January 31: - Hoosier used $3,000 of the supplies in January. - Hoosier used up S1,600 of its prepaid insurance. The January depreciation calculated for the equipment totaled $2,000. Hoosier owed S3.200 to employees for work performed during the last half of January. These wages will be paid in early February. Hoosier performed 80% of the services for which it had been paid in advance (before 2018). Hint: Look at the balance sheet to see how much cash the company received in advance Prepare the AJEs, post to the T-Accounts Date Account Debit Credit
Prepare the Adjusted Trial Balance: Hoosiers Inc. Adjusted Trial Balance January 31, 2018 Debit Credit TOTAL S597,300 S597,300
Prepare the Financial Statements: Hoosier Inc. Income Statement For the month ended January 31, 2018 Revenue: Operating Expenses: Total Operating Expenses Operating Income Other income/(expense): Interest Expense Gain on sale of land Net Income Hoosier Inc. Statement of Stockholders Equity For the month ended January 31, 2018 Common Retained Total Stock Earnings Stockholders Equity Balance as of December 31, 2017 Stock issued Net income Dividends declared Balance as of January 31, 2018
Hoosier Inc. Balance Sheet January 31, 2018 Assets: Long-term Assets: Total Assets LIABILITIES & STOCKHOLDERS EQUITY Current Liabilities: Long-term Liabilities: Total Long-term Liabilities Stockholders Equity: Total Stockholders Equity Total Liabilities& Stockholders Equity
Hoosier Inc. Statement of Cash Flows (use direct method) For the month ended January 31, 2018 Cash flow from operating activities: Cash flow from investing activities: Cash flow from financing activities Change in cash balance Beginning cash balance Ending cash balance Prepare the Closing Entries, post to the T-Accounts
Prepare a Post-Closing Trial Balance Hoosiers Inc. Post-Closing Trial Balance January 31, 2018 Debit Credit TOTAL S581,200 S581,200 Why is the total debit column in the Adjusted Trial Balance not equal to Total Assets on the Balance Sheet? What was the purpose of each of the trial balances? How do you determine the Retained Earnings balance that is reported on the 1/31/2018 balance sheet? When should companies prepare adjusting journal entries? Willthe AJEs be different if preparing monthly v. annual financial statements?
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Transaction Debit Credit Accumulated depriciation 14,000 6,000 31,400 2,100 3,800 3,200 1200 15,000 22000 2,000 24,000 15,000 01-FeblCash 14,000 14,000 2,100 Accounts payable 01-Jun Bond Payable 2700 1,200 1200 1,500 1200 Accounts receivable 22300 24,000 01-OctlCash 5,000 14,000 Fees Earned 30,000 Interest payable Jan-20 Cash 31,400 32300 700 Gain on Sale of land 3,000 3000 2,100 Jan-29 Interest Payable nterest Expense 1,000 3,000 Unearned revenue 68300 54,640 Dividends Payable 13,660 Jan-31 Wages Expense 3,200 Prepaid insurance 9000 Other payables 1,600 2500 3,000 lies 3,000 7400 2,500 Jan-31 Insurance Expense Jan-31 Depreciation Ex Accumulated Depreciation 2,000 15,000 ,800 95,200 Dividends payable rned Revenue Fees Earned 6830080 Land 54.640 2,100 28,400 2,100 84,640 3,000 Jan-31 Gain on Sale of Land Jan-31Interest Expense Jan-31 Supplies Expense Jan-31 Insurance Jan-31 Depreciation Expense 1,000 3,000 nterest expense 1,000 1,000 3,200 2,000 3,200 6,400 Jan 31 Retained Earnings Supples expense Common stock 3,000 3,000 11500 11,500 Insurance Fees earned 30,000 54,640 1,600 1,600 84,6405 Gain on sale of land 3,000 Depreciation expense 2,000 3,000 2,000 Wages expense Retained earni 356000 73,640 429,640 3,200 6,400 Dividends declared 2100Unadjuted Adjusted Adjjustements Debit tems Debit Debit Credit 404,400 32,300 5,100 9,000 135,000 404,400 32,300 2,100 7,400 135,000 Accounts Receivable 3,000 1,600 Prepaid Insurance 2,000 Accumulated Depreciation Accounts Payable Unearned Revenue Other Pavables Wa Dividends Payable Dividends declared Bond Payable Common Stock Retained Earnings 22,000 24 68,300 54,640 2,500 3,200 3, 2,100 2100 2100 95,200 11,500 356,000 30,000 3,000 95 54,640 84,640 Interest Expense 1,000 3,000 1,600 2,000 3,200 1,000 3,000 1,600 2,000 6,400 ies nse Insurance Expense Depreciation Expense Wages Expense 3,200 Total 592,100 592100 64440 64440 597300 597300 Post closing trial balance Cash Accounts Receivable 404,400 32,300 7,400 135,000 ent Accumulated Depreciation Accounts Payable Unearned Revenue Other Payables Wages Payable Dividends Payable Dividends declared Bond Payable Common Stock Retained Earnines 24,000 1,500 2,500 3,200 100 95,200 11,500 Total 581,200 581,200 Income statement Revenue: Fees earned 84,640 Operating expenses Supplies Expense Insurance Depreciation Expense Wages Expense total operating expenses 3,000 1,600 ense 6,400 13,000 Other Income/(ex Interest ex Gain on sale of land 2,000 Net Income 73,640Cash flow statement Cash Flow form operating activities Cash received from customers cash paid to vendors cash paid to employees cash paid for interes Total cash flow from operations 20,000 3,300 3,200 1,700 11800 Cash flow from investing activities cash paid for equiment cash received on sale of land Total cash flow from investing act 15,000 31,400 16400 Cash flow from financing activities bonds total cash flow form financing acitivities 3,800 3800 change in cash opening balance closing balance 24400 380,000 404400 Statement of retained earnings Opening Balance Neet income Dividends declared Closing balance 356000 73,640 2,100 427,540 Balance sheet Assets Accounts Receivable Supplies Prepaid Insurance total current assets 404,400 32,300 2,100 7,400 446200 Long term assets Equipment Acc dep total long term assets 135,000 24,000 111,000 Total assets 557,200 Liabilities curent liabilties Accounts Payable Uneamed Revenue Other Payables Wages Payable Dividends Pavable total curent liabilties 1,500 13,660 2,500 3,200 2,100 22960 Long term liabilties Bond Payable total Long term liabilties 95,200 95200 Stockholders equit common stock retained earnin total Stockholders equi 11,500 427,540 439040 total liab & equit 557200

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