80.2K

Verified Solution

Link Copied!

Use the spreadsheet you created by following the videos to answer the following questions

P company starts operations on 2026-01-01. All of Ps accounts start with balances of 0

Record the the journal entries for the following transactions during the year and post the amounts to Ps T-accounts

Use the account titles listed in the Income Statement and the Balance Sheet

Copy and paste or type in the account titles. Include the type of account (A, L, SE, R, E) in the account titles (e.g., Cash (A))

Dont put extra spaces between words in the account titles

Record the following transactions
Date	Transaction	DR Account	CR Account	Amount
2026-01-01	Issues common stock for $434567 cash
2026-01-01	Pays $27942 to purchases equipment
	The equipment has a useful life of 5 years
2026-05-01	Purchases $66018 of inventory on account from a supplier
2026-06-01	Sells $76964 of merchandise for cash. Record revenue from the sale
	Record the cost of revenue for this sale. The cost of the product P sold was $44232
2026-07-01	Borrows $45042 from a bank for 5 years
	The interest rate on the note is 6.5% and payable annually on July 1
2026-07-01	Received $41452 from customer for services it will perform next year
2026-07-01	Pays landlord $11550 for a year of rent beginning this month
Record the adjusting entries at the end of the year
2026-12-31	Record depreciation expense for the year
2026-12-31	Record interest expense from 2026-07-01 to 2026-12-31
2026-12-31	Record rent expense from 2026-07-01 to the 2026-12-31
Record the entry to close all of the income statement accounts to Retained Earnings (SE). List the income statement accounts in the same order as the income statement. The last entry is to retained earnings (SE)
2026-12-31

Income Statement for the year ended 2026: (1) before the adjusting entries, (2) after the adjusting entries and (3) after the closing entry
Account title	(1) Unadjusted Amount	(2) Adjusted Amount	(3) Post Closing Amount
Revenue (R)
Cost of Revenue (E)
Depreciation Expense (E)
Rent Expense (E)
Interest Expense (E)
Net Income

Balance Sheet on December 31, 2026: (1) before the adjusting entries, (2) after the adjusting entries and (3) after the closing entry
Account title	(1) Unadjusted Amount	(2) Adjusted Amount	(3) Post Closing Amount
Cash (A)
Inventory (A)
Prepaid Rent Expense (A)
Property/Plant/Equipment (A)
Accumulated Depreciation (XA)
Total Assets
Accounts Payable (L)
Deferred Revenue (L)
Interest Payable (L)
Note Payable (L)
Total Liabilities
Common Stock (SE)
Retained Earnings (SE)
Total Equity
Total Liabilities and Equity

Indicate the following amounts for Ps Cash flow Statement for the year ended 2026
	Amount
Cash from Operating Activities
Cash from Investing Activities
Cash from Financing Activities
Net Change in Cash

Indicate the following amounts that would appear on Ps Classified Balance Sheet for the year ended 2026
	Amount
Total Current Assets
Total Long-term Assets
Total Current Liabilities
Total Long-term Liabilities	A

Calculate the following ratios for the year ended 2026
	Amount
Current Ratio
Acid-test Ratio
Debt to Equity Ratio
Times Interest Earned Ratio

Please answer as soon as you can! Thank you!

Answer & Explanation Solved by verified expert

See Answer