Question

I have already created the journal entries for the following information but I need the t-accounts, income statement, statement of retained earning and balance sheet:

The following transactions occurred during 2018 (the company uses a perpetual inventory system with FIFO):

1)      Jan 4 Stockholders invested an additional $10,000 cash in the business in exchange for common stock

2)      Jan 4 Purchased 20 rabbits at $50 each on account from Jelly Bean Farms.

3)      Jan 4 Established a $200 petty change fund

4)      Jan 5 Sold 6 rabbits for $200 each to Mr. Karrot, terms 2/10, n/30.

5)     Jan 6 Sold 12 rabbits at $200 each for cash

6)      Jan 8 Paid wages of $240

7)      Jan 9 Mr. Karrot returned one rabbit because they originally ordered only 5.

8)      Jan 12 Purchased equipment on account for $2,000

9)      Jan 14 Received payment in full from Mr. Karrot

10)    Jan 15 Purchased 10 rabbits at $52 each on account from Easter Industries, terms 1/10, n/30.

11)    Jan 15 Paid utility bill of $120

12)    Jan 16 Returned 2 rabbits to Easter Industries because they were defective.

13)    Jan 17 Sold 8 rabbits for $245 each for cash

14)    Jan 18 Paid tax bill from 2017.

15)    Jan 18 Performed the service of rabbit grooming ($800 worth); we received the cash in 2017

16)    Jan 19 Paid Accounts Payable in full from 2017

17)    Jan 20 Received $2,200 cash from customers paying on their account

18)    Jan 21 Received a bill from the local radio station for advertising in the amount of $400

19)    Jan 22 Purchased 20 rabbits for $55 each on account from Eggs & Chicks Company; terms 2/5, n/30

20)    Jan 23 Paid freight costs from Eggs & Chicks Company of $10.

21)    Jan 25 Sold 10 rabbits to Bunny Tail Corporation for $260 each on account; terms 3/10, n/30

22)    Jan 26 Received payment in full from Bunny Tail Corporation

23)    Jan 27 Sold 10 rabbits to customers on credit for $260 each.

24)    Jan 28 Paid Eggs & Chicks Company for the purchase on Jan 22

25)    Jan 29 Petty cash was replenished and had the following receipts: gas receipt for $20, postage stamps for $39, Office Depot receipt for $16, miscellaneous receipt for $30, travel receipts for $40

26)    Jan 30 Performed a physical inventory count and counted only 1 rabbit on hand.

27)    Jan 30 Bank statement arrives today and there is a $20 bank service charge as well as a $120 NSF check.

28)    Jan 31 One month’s prepaid insurance needs to be expensed for January ($1,200 is for the whole year)

29)    Jan 31 Depreciate one month’s worth of the building and equipment (Using straight line method; building has a useful life of 20 years, equipment has a useful life of 5 years and no salvage value)

30)    Jan 31 The estimated bad debt expense under the percentage of sales basis is $120.

31)    Jan 31 Paid dividends of $500

Answer 1

Step-by-step Informantion:

To finalize the t-accounts, income statement, statement of retained earning and balance sheet, we should have the following information:

1) Opening balances of all accounts including inventory - the inofrmation is not avaiable.

2. The following transactions are uncertain in finalizing accounts

S. No.14)    Jan 18 Paid tax bill from 2017.

S. No.15)    Jan 18 Performed the service of rabbit grooming ($800 worth); we received the cash in 2017

S. No.16)    Jan 19 Paid Accounts Payable in full from 2017

S. No 22)    Jan 26 Received payment in full from Bunny Tail Corporation

S. No.29)    Jan 31 Depreciate one month’s worth of the building and equipment (Using straight line method; building has a useful life of 20 years, equipment has a useful life of 5 years and no salvage value)

as the above information is not available, the t-accounts, income statement, statement of retained earning and balance sheet is not possible to finalize.

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