Unadjusted Trial Balance of Morgan Manufacturing Corp. Assignment
B mat Painter Merge & Center Font rdi Alignment Number BG Before you begin, print out all the pages in this workbook. The unadjusted trial balance of Morgan Manufacturing Corp. on December 31, 2019, is shown on the “Trial Bal” page (see tab below). Refer also to the additional year-end information for the company shown on the “Adjusting Entries” page (see tab below). Required: 1 Prepare year-end adjusting entries. General ledger account numbers are not necessary. Show your calculations below each adjusting entry. 2 Post the adjusting entries to the trial balance and prepare an adjusted trial balance. 3 Using the amounts from the adjusted trial balance, complete the financial statements for the year ended December 31, 2019. Fdl. Stats. Adjusting Entries Gen. Jnl. Tral Bal, Required Copyright croll Locke A E BIU EMerge & Center inter S Co For Font Alignment Number C E G Morgan Manufacturing Corp. Adjusting Entries For the Year Ended December 31, 2019, The following additional information is available at the corporation's year-end. GST of 5% only applies when indicated. a. A sale on the account has not been recorded in the amount of $5,000 Applicable sales tax is 8% b. Warranty expense for the year as a percentage of sales should be: 2% C. Unpaid gross salaries at the year-end amount to $10,000 Deductions from unpaid salaries are as follows:
Employee Company Portion Portion Employee income taxes 12% 0% FICA Social Security taxes* 4% 4% FICA Medicare taxes 2% 2% 4% Company health insurance these are not the actual required percentages 4% $90,000 d. The estimated year-end audit fees are e. Rent revenue consists of 13 equal monthly payments, including AnA nnid in adnnco for lanuaoL 2020 Copyright Fcl. Stats. Tral Bal. Adjusting Entries Gen. Jnl. d e Page Insert me Calibri 112 FWrao Text General E Merge & Center BIU at Painter Font Alignment Number C F G H d. The estimated year-end audit fees are $90,000 e. Rent revenue consists of 13 equal monthly payments, including one paid in advance for January 2020. f. A trade account payable was converted to a note payable during the year. No entry has been made to record this. The note payable is due at the end of 2020. $40,000 The amount of the note payable is: 3% The annual interest rate on the note payable is: The note payable was created at the end of this month: (January 1; December 12) 9 g A lawsuit was commenced against the company in 2019. Damages $30,000 claimed are: Possible Lawyers for the company consider the likelihood of success to be: 8% h. The interest rate on the mortgage is: Annual payments (blended principal and interest) are made on Dec. $163,200 31 and total: The 2019 payment has been recorded as Interest on Long-term Debt expense. Tha cnrnArstn income tov.cntaneanorcontaao ofincomahoforo Adjusting Entries Copyright Fdl. Stmts. Trial Bal Gen. Jnl. quired ock e Pagi me 12 Wrap Test Calibri General B IU S % Merge & Center at Painter Alignment Font Number G D E 31 and total: $163,200 The 2019 payment has been recorded as Interest on Long-term Debt expense. The corporate income tax rate as a percentage of income before income taxes is: 10% Corporate income tax installments during the year have been recorded as Income Tax expense in the records. Assume any 2019 loss before income taxes will result in the refund of income taxes at the current year's income tax rate. Ecl. Stmts Copyright Tral Bal Gen. Inl red Adjusting Entries. .