Financial Statement Homework – 2 latest done on october 21 2015

Financial Statement Homework #2Name___________________Please circle section time: 8:00, 9:30, 12:30, 2:00, 3:30Silver, Inc.December 31, 2013Unadjusted Trial balanceCashAccounts ReceivableAllowance for Doubtful AccountsShort Term Note ReceivableInterest ReceivableSupplies on HandPrepaid InsuranceInventoryVehicleEquipmentAccumulated DepreciationAccounts PayableUnearned RevenueWages PayableLong-Term Notes PayableCommon StockRetained Earnings (1/1/2013)DividendsSalesSales DiscountsCOGSDelivery ExpenseDepreciation ExpenseBad Debt ExpenseRent ExpenseInsurance ExpenseWages ExpenseSupplies ExpenseInterest RevenueLoss on DisposalInterest ExpenseIncome Tax ExpenseTotal45,00014,00050050,0005,00048,00010,00015,00075,00042,00010,00014,0002,00045,000106,00003,000501,00010,00050,00050,00016,00054,00025,000195,00016,0004,50035,000720,500720,500Page 1 of 8Part 1:Prepare adjusting journal entries using the unadjusted trialbalance on the previous page and the information provided below. Use only theaccount names provided on the previous page (do not create any new accountnames).1. On Dec. 31, 2013 Silver, Inc. sold merchandise on account for $18,500 with a cost of$6,500 terms 3/10 net 30.2. Silver, Inc. loaned Jackson Co. $50,000 (already on the TB) on Oct. 1, 2013 using a 6month, 8% interest note. All interest and principal will be paid back at the end of the 6months. Write the adjusting journal entry required by Silver, Inc. for its financial statementsas of Dec. 31, 2013.3. Uncollectable Accounts Receivables of $500, $100, and $420 need to be written off for theyear ended 2013 (write off the total amount in one entry).4. Management estimates that of the remaining accounts receivable balance, $560 will beuncollectible. Record the adjustment based on this information. Hint: Use the AFDAbalance AFTER the above write off during 2013.5. Equipment was retired on Dec. 31, 2013. The equipment originally cost $30,000 and hasrelated A/D of $24,000 as of Jan. 1, 2013. Additional depreciation of $3,000 needs to berecorded at Dec. 31, 2013. Update the depreciation.6. And record the retirement of the equipment (from #5) including the gain or loss.Page 2 of 8Part 2: Post the adjusting journal entries to t-accounts:Page 3 of 8Part 3: Prepare the Adjusted Trial Balance (i.e., use ending balances afterthe previous journal entries are posted)Silver, Inc.December 31, 2013Adjusted Trial balanceDebitCreditPage 4 of 8Part 4: Prepare a Multi-step Income Statement(Be sure to include all the necessary headings, totals and subtotals as outlined inChapter 5. You may not need to use all the lines provided.)__________________________________________________________________Page 5 of 8Prepare a Statement of Retained Earnings.__________________________________________________________________________________________Page 6 of 8Prepare a Classified Balance Sheet (Follow the example in Chapter 2. You may not needto use all of the lines provided.)_______________________________________________________________________________________________________Page 7 of 8Part 5: Answer the following questions using the above completedfinancial statements:What is the Gross Profit?What is Income from Operations?What is Income before for Income Tax?What is Total Current Assets?What is Total Current Liabilities?What is Net PPE?If the company FAILS to record depreciation expense in the adjusting entries:What is the impact to the income statement?What is the impact to the balance sheet?