Reference no: EM133083568

FUNDAMENTALS OF ACCOUNTING

REQUIRED:

1 Type your 800 number and your last name in the yellow input boxes at the top of the Facts tab.

2 Save the file as an Excel file (.xlsx) using the naming pattern: YourLast Name -

3 Post transactions to the Ledger for the corresponding year (using formulas)

4 Calculate amounts for December 31 adjustments in yellow boxes (using formulas)

5 Post adjustments to the Ledger for the corresponding year (using formulas)

6 Prepare the following financial statements (using formulas) for the corresponding year:
(a) Balance Sheet
(b) Income Statement
(c) Statement of Stockholders' Equity

Your Company was incorporated on January 1st. The business provides a full range of landscaping services, including landscape design, construction, and maintenance. The following transactions occurred during the first two years of operations:

Year 1 Given Information
1-Jan Issued common stock in exchange for cash $673,687
1-Feb Borrowed money from the bank by signing a one-year note, at a rate of 10% 148,211
10-Mar Paid for advertisements to be run during the month 6,568
1-Apr Paid in advance for a one-year insurance policy 14,821
15-May Purchased supplies on account 29,507
1-Jun Landscaping equipment is purchased for cash 538,950
18-Jul Performed lawn mowing services for cash 123,285
1-Aug Paid for maintenance on the lawn mowers in cash 9,853
20-Aug Performed landscaping services on account 95,664
1-Oct Paid in advance for two years of rent on a storage facility 37,053
30-Nov Received cash payment from a customer for future services (not yet performed) 77,474
15-Dec Paid new employees for one month of work; payday is always on the 15th of the month. 30,316

December 31st Adjustments:
a Eleven months of interest has accrued on the note (to be paid in cash on Feb 1 next year)
b Nine months have lapsed on the one-year insurance policy
c A physical count of supplies at the end of the year reveals half of the supplies were used
d The equipment is estimated to have a useful life of five years with no salvage value; depreciation must be recorded.
e The rented storage facility has been used for three months
f Employees have worked for half a month (December 16 - December 31) in the current year but won't be paid until January 15.

Year 2 Given Information
15-Jan Paid employees for one month of work $30,316
1-Feb Paid back the note payable in full, plus interest, at a rate of 10% 163,032
15-Mar Performed half of the services for customer who paid in advance 38,737
20-Jun Issued additional common stock in exchange for cash 16,093
26-Jul Collected cash from customers for services previously performed 86,098
16-Aug Performed services for cash 302,048
20-Sep Performed services on account 234,377
8-Oct Performed remaining services for customer who paid in advance 38,737
7-Nov Paid for maintenance on equipment in cash 24,139
15-Dec Paid employee salaries 333,476
30-Dec Paid a cash dividend to owners of the business 5,389

Calculate December 31st Adjustments:
a Remaining three months of one-year insurance policy were used up
b A physical count of supplies at the end of the year reveals all remaining supplies were used
c The equipment is estimated to have a useful life of five years with no salvage value; depreciation must be recorded.
d The rented storage facility has been used for twelve months
e Employees have worked for half a month in the current year but won't be paid until January 15.

Attachment:- Fundamentals of Accounting.rar