Question

1. Computers R US took out a 9 month, 4.25, $17,000 note on August 1, 2019 with interest and principal to be paid on maturity. 2. On October 1, 2019, Computers R US rented some storage space at a rate of $450 per month. On that date, Computers R US recorded Rent Expense for six months rent paid in advance 3. Computers R US purchased $4,780 of office supplies during the year and the asset office supplies account was increased A count of the supplies on hand Dec 31, 2019, indicates a balance of $485. 4. $16,500 of store supplies were purchased during the year and were immediately expensed. A count of the store supplies on hand December 31, 2019, indicates a balance of $1.275. 5. On June 1, 2019 an 18-month insurance policy was purchased for $9,000. 6. On Dec 1, 2019, Computers R US collected $32,000 for consulting services to be performed from Dec. 1, 2019 to Feb. 28, 2020. The company credited the revenue account when paid. 7. On October 1, 2019, Computers R Us issued a 5-month note receivable to Morerams Inc. at an annual interest rate of 5%. Principle and interest will be paid at the end of the 5-months. The note was recorded in Notes Receivable and is the only note outstanding.

, A. Prepare a worksheet (Show formulas and use an "IF" statement)

B. Prepare the adjusting journal entries

C. Prepare a multiple step income statement

D. Prepare a statement of retained earnings

E. Prepare a balance sheet

F. Prepare the closing entries

	Unadjusted				Adjusted
Account Title	Trial Balance		Adjustments		Trial Balance
	DR	CR	DR	CR	DR	CR
Cash	67,000	-
Accounts Receivable	530,000	-
Allowance for Doubtful Accounts		8,800
Interest Receivable	-
Merchandise Inventory	242,500	-
Prepaid Insurance	9,000	-
Prepaid Rent	-
Store Supplies	-	-
Office Supplies	4,780	-
Note Receivable	2,500
Store Equipment	110,000	-
Accumulated Depreciation - Store Equipment	-	36,000
Office Equipment	56,000	-
Accumulated Depreciation - Office Equipment	-	-
Accounts Payable	-	48,000
Salaries Payable	-	-
Interest Payable	-	-
Utilities Payable
Unearned Consulting Revenue	-
Unearned Rent Revenue		18,000
Note Payable	-	17,000
Common Stock	-	300,000
Retained Earnings	-	263,450
Dividends	12,000	-
Sales Revenue	-	970,000
Consulting Revenue	-	32,000
Rent Revenue
Interest Revenue
Sales Returns and Allowances	15,800	-
Sales Discounts	11,000	-
Cost of Goods Sold	350,000	-
Sales Salaries Expense	170,000
Office Salaries Expense	80,000	-
Miscellaneous Administrative Expense	4,500	-
Miscellaneous Selling Expense	8,970	-
Depreciation Expense - Store Equipment	-	-
Depreciation Expense - Office Equipment	-	-
Store Supplies Expense	16,500	-
Office Supplies Expense	-	-
Rent Expense	2,700	-
Insurance Expense	-	-
Interest Expense	-	-
Bad Debt Expense	-	-
Utilities Expense-Store
Utilities Expense-Office
	1,693,250	1,693,250

Answer 1