Need help on this accounting questions

Malachite Company is a fictitious retail garden nursery. You have been provided the December31, 2022 balance sheet for Malachite, as well as a narrative of transactions that occurred
during 2023.
Using this information, prepare a December 31, 2023 balance sheet, and an income statement
and indirect method statement of cash flows for the year ended December 31, 2023. Note that
you will need to make some adjusting entries to account for what occurred with the passage of
time (such as the part of the insurance policy being used up by year’s end). Use the
appropriate spreadsheet tabs to input your work. While not required, I recommend starting
this exercise by filling in the pre-fab t-accounts in the “T-accounts” tab.
For this case, it will suffice for you to turn in your completed Excel spreadsheet.
Malachite Company
Balance Sheet
December 31, 2022
Assets
Current
Cash
Accounts Receivable
Inventory
Total Current Assets
Property and Equipment (net of $42,000 accumulated
depreciation)
Total Assets
Liabilities and Shareholders’ Equity
Current
Accounts Payable
Income Tax Payable
Salary Payable
Total Current Liabilities
10% Long-Term Note Payable
Total Liabilities
Common Stock
Retained Earnings
Total Liabilities and Shareholders’ Equity
4,200
2,800
14,000
21,000
70,000
91,000
36,400
0
5,600
42,000
28,000
70,000
14,000
7,000
91,000
Relevant information for 2023
1. On June 30, 2023, Malachite paid $2,400 in cash for a 2-year fire
insurance policy covering the period June 30, 2023 to June 30, 2025.
2. On November 1, 2023, Malachite made the decision hire a consulting
firm to modernize its accounting systems and entered into a one-year
contract covering the period November 1, 2023 to November 1, 2024.
Under the contract, Malachite agreed to pay $1,500 in consulting fees on
the last day of each month. (Hint: Assume that Malachite complied with
this agreement and paid the $1,500 in cash on the last day of each month.)
3. Malachite paid $70,000 in cash to purchase new equipment.
4. Equipment with a historical cost of $21,000 and accumulated
depreciation of $4,200 was sold for $19,600 in cash.
5. Depreciation was $7,000 for the year.
6. Malachite made merchandising sales of $325,000 during the year. All
sales were on account (i.e., credit sales).
7. Collections of accounts receivable totaled $300,000 cash for the year.
8. Purchases of inventory totaled $158,000 for the year. All purchases
were on account (on credit).
9. Malachite counted inventory at year-end and determined the ending
inventory balance to be $27,000.
10. Payments to suppliers for purchases on account totaled $155,000 in
cash.
11. On December 31, 2023, Malachite repaid the 10% note, along with
accrued interest, by paying the bank $30,800 cash.
12. Also on December 31, 2023, Malachite issued 5,000 shares of common
equity. Each share yielded $7 in proceeds.
13. $32,200 in cash was paid during the year for salaries to employees, and
the ending balance in salaries payable on Dec. 31, 2023 was $3,000.
14. Cash payments for other operating expenses totaled $700.
15. Malachite paid dividends of $15,000 during the year.
16. Income taxes are 25%. Malachite accured, but hasn’t yet paid, its 2023
income taxes as of Dec. 31, 2023.
Malachite Company
Journal Entries
Malachite Company
T Accounts
BB
Cash (A)
4,200
BB
Accounts Receivable (A)
2,800
BB
Inventory (A)
14,000
BB
Prepaid Insurance (A)
–
BB
Property and Equipment, Gross (A)
112,000
BB
Accumulated Depreciation (XA)
42,000
BB
Accounts Payable (L)
36,400
BB
Salary Payable (L)
5,600
BB
Income Tax Payable (L)
–
BB
10% Note Payable (L)
28,000
BB
Common Stock (SE)
14,000
BB
Retained Earnings (SE)
7,000
Sales Revenue (SE,R)
Cost of Goods Sold (SE,E)
Salaries Expense (SE,E)
Gain on Equipment Sale (SE,R)
Depreciation Expense (SE,E)
Interest Expense (SE,E)
Other Expenses (SE,E)
Insurance Expense (SE,E)
Consulting Expense (SE,E)
Income Tax Expense (SE,E)
BB = beginning balance
Malachite Company
Balance Sheets
as of December 31,
2023
Assets
Current
Cash
Accounts Receivable
Prepaid Insurance
Inventory
Total Current Assets
Property and Equipment, net
Total Assets
2022
$
$
–
Liabilities & Shareholders’ Equity
Current
Accounts Payable
Income Tax Payable
Salary Payable
Total Current Liabilities
10% Note Payable
Total Liabilities
Common Stock
Retained Earnings
Total Liabilities and Shareholders’ Equity
$
$
36,400
5,600
42,000
28,000
70,000
14,000
7,000
$
91,000
–
$
–
4,200
2,800
14,000
21,000
70,000
91,000
Malachite Company
Income Statement
For the Year Ended December 31, 2023
Sales Revenue
Cost of Goods Sold
Gross Margin
Salaries
Consulting Expense
Depreciation
Insurance
Other
Interest
Loss (Gain) on Equipment Sale
Earnings Before Tax
Tax Expense
Net Income
–
$
–
Malachite Company
Statement of Cash Flow – indirect method
For the Year Ended December 31, 2023
Cash flows from Operating Activities
Cash flows from Investing Activities
Cash flow from Financing Activities
Total cash flows for FY 2023
Cash balance, January 1, 2023
Cash balance, December 31, 2023
change in cash balance
4,200
(4,200)