LAB 8/9
Financial Statements: Excel FORMAT & Presentation
due Friday, November 22 by 8pm
B Corp began it’s first year of business on January 1, 2020. At the company’s fiscal year-end (December 31) the following unadjusted trial balance was prepared:
Unadjusted Trial Balance @ Dec 31, 2020
|
Account Name
|
Dr
|
Cr
|
|
Cash
|
$ 17,000
|
|
|
A/R
|
11,000
|
|
|
Supplies
|
2,200
|
|
|
Prepaid Insurance
|
1,500
|
|
|
Notes Receivable 2-yr
|
10,000
|
|
|
Truck
|
60,000
|
|
|
Building
|
300,000
|
|
|
FV-OCI Investment
|
10,000*
|
|
|
A/P
|
|
$ 12,000
|
|
Unearned Revenue
|
|
13,000
|
|
N/P 6% 8 year
|
|
100,000
|
|
Common Shares
|
|
230,000
|
|
RE
|
|
0
|
|
AOCI
|
|
10,000
|
|
Dividends
|
3,000
|
|
|
Service Revenue
|
|
25,000
|
|
Sales Revenue
|
|
132,700
|
|
COGS
|
40,000
|
|
|
Wages Expense
|
45,000
|
|
|
Utilities Expense
|
5,000
|
|
|
Legal Expenses
|
18,000
|
|
|
TOTALS
|
$522,700
|
$522,700
|
Prepare the following adjusting journal entries, in good form. (Assume that BB Corp does adjusting entries only once per year on each December 31).
• 3% interest was earned on the Note Receivable; the note had been in place since January 1. No cash has been paid.
• Of the supplies purchased during the year, only $500 of supplies remain in the storeroom
• A 12-month insurance policy was purchased on August 1 and took effect onthisday.
• The truck was purchased on January 1, and has an estimated life of 8 years, with estimated residual value of $6,000.
• The building was purchased on March 1; 20-year estimated useful life (zero residual value)
• The 8-year loan was signed on June 1; interest accrues each year; terms of the loan state that a cash payment for principle and all accrued interest will be paid on the maturity date of the loan in 2028.
• Wages of $4000 are paid every Friday for a five-day workweek (Monday to Friday). December 31 falls on a Monday. Ignore impact of holidays in this adjustment.
• Clients had paid cash September 1, for services to be provided from Sept 1, 2020 to April 30, 2021. Services were completed up to December 31.
• *NOTE: (not an adjusting JE): *The FV-OCI Investment showed an unrealized loss of $2,000. This needs updating.
• IGNORE/OMIT INCOME TAXES FOR THE INCOME STATEMENT in this lab.
Prepare the Adjusted Trial Balance, as at December 31, 2020 for BB Corp. Prepare the 2020 financial statements (Comprehensive Income Statement, Statement of Changes inEquity and a Classified Balance Sheet) in good form.
Your final submission should be edited carefully for organization, column width, clarity, headings, etc.
Present the adjusting journal entries at the top left of your Excel sheet. Omit all instruction wording; omit the Unadjusted Trial Balance. DO NOT include dollar signs in your journal entries!!! Leave one row space between JEs.
To the right of the adj JEs, on the Excel sheet, present the Adjusted Trial Balance. Only write a one-line title for each financial statement (name of the statement & “Dec 31, 2020). Below this, present your Income Statement (include Service Rev as an “Other” revenue). To the right of the income statement, present your Statement of Changes in Equity. BELOW this, present your clearly formatted Balance Sheet. Classify the N/R as a current asset. Use formulas in all cells (in all financial statements & the Adj Trial Balance) where appropriate, to add, deduct and carry-over amounts, etc. You will need to plan carefully, for column widths to appear in an organized and presentable way. Keep in mind that balance sheet classification headings should ideally be bolded. Account names, below each balance sheet classification heading, should be INDENTED. Format and presentation are a high percentage of the lab grade.