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Prepare entries for each event balance sheet

The 2012 balance sheet of the Blackberry Mountain Inc. is attached. During 2013, the following events occurred.
1. Paid cash $36,000 in advance for 3 years' rent of office on January 1.
2. On January 1, purchased 50 personal computers at a cost of $1,500 each, paying cash upon delivery.
3. On January 14, paid employees $5,560 which was earned and payable at the end of last year.
4. On February 10, Purchased merchandise on account from Texas Star Supply Co. $78,000, term 1/10, n/30. Assume the company used the periodic inventory system.
5. Purchased merchandise from Louisiana Gumbo Inc. and paid cash $82,000 on February 12.
6. On February 15, sold merchandise to Titan Inc. and received cash $42,000.
7. Paid off the balance to Texas Star Supply Co. on February 18.
8. On March 10, sold merchandise to Waco Trading Co. on account $130,000, term 2/10, n/30. Freight $1,200, F.O.B. destination.
9. On April 1, a tract of land was purchased for $40,000 and cash was paid.
10. Waco Trading Co. paid off its balance on April 5.
11. An additional $200,000 in common stock was issued at par on May 1.
12. Cash dividends totaling $10,000 were declared on June 13 and paid to stockholders on July 5.
13. On July 1, another land was purchased through the issuance of $80,000 in additional bonds (five year, interest rate 8%, paying interest semiannually on Jan. 1 and July 1.).
14. On July 30, the company paid the utilities expenses $10,208 in cash.
15. On August 1, sold merchandise to Tyler Exporting Inc. on account $200,000, term 1/10, n/30. Freight $1,500, F.O.B. shipping point.
16. Tyler Exporting Inc. paid off half of the balance on August 10.
17. On August 15, write off $1,350 bad debt for one account, Irvine Trading, LLC.
18. Tyler Exporting Inc. paid off the rest of its balance on August 30.
19. On September 1, pay cash $97,532 to Laredo Supply Co. for merchandise purchased last year.
20. Paid off bank loans $80,000 and accrued interest $6,000 on October 1.
21. Over the year, sales and office employees earned $98,900 in salaries and wages, of which $3,000 was still payable at the end of year.
22. An unpaid utilities bill (December, $1,292) is due on January 10 next year.
Additional Information at the end of the year:
1. Depreciation expense for the year was $24,350.
2. The company estimated that it has to pay federal income tax, $13,290.
3. After physically counting, the company decided that the ending inventories worth $455,113.
4. Based on its historical data, the company estimated that the bad debts were about 1% of credit sales.
5. The company used the gross method to record its purchases and sales on credit.

Instructions:
1. Prepare journal entries for each event.
2. Prepare adjusting entries.
3. Prepare adjusted trial balance.

4. Prepare Income Statement, Balance Sheet, and Statement of Cash Flows.
5. Prepare closing entries.

BLACKBERRY MOUNTAIN INC.
BALANCE SHEET
DECEMBER 31, 2012
Current Assets
Cash
62,485
Short-term Investments
51,030
Accounts Receivable
165,824
Less: Allowance for Doubtful Accounts
(1,850)
Prepaid expenses
16,252
Inventories
489,713
Total Current Assets
783,454
Non-Current Assets
Long-term Investments
Investments in held-for-maturity securities
82,000
Land held for future development
5,500
Property, Plant, and Equipment
Land
125,000
Buildings
975,800
Less: Accumulated Depreciation
(341,200)
Intangible Assets
Capitalized Development Costs
6,000
Goodwill
66,000
Other Identifiable Intangible Assets
28,000
Total Non-Current Assets
947,100
Total Assets
1,730,554
Current Liabilities
Deposit Received from Customers
4,380
Provisions Related to Warranties
12,500
Salary and Wages Payable
5,560
Interest Payable
20,500
Accounts Payable
197,532
Notes Payable
80,000
Total Current Liabilities
320,472
Non-Current Liabilities
Provisions Related to Pensions
75,000
Bonds Payable
425,000
Total Non-Current Liabilities
500,000
Total Liabilities
820,472
Stockholders' Equity
Common Stock
400,000
Preferred Stock
300,000
Paid-in-capital - Common Stock
27,500
Paid-in-capital - Preferred Stock
10,000
Retained Earnings
180,482
Accumulated Other Comprehensive Income
4,850
Less: Treasury Stock
(12,750)
Total Stockholders' Equity
910,082
Total Liabilities and Stockholders' Equity
1,730,554

Solution Summary

The expert prepares entries for each event balance sheets, adjusting entries, adjusted trial balance income statement, balance sheet, statement of cash flows and closing entries

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