Reference no: EM131805755
Can someone help me with this Intermediate Financial Accounting Introductory Quiz? It's been awhile since I've taken an accounting course, and I'd like to work through these with a solution. Please see the attached files.
Here are the instructions (Also included in the excel workbook):
Suzanne Johnson has just provided you with the attached preliminary unadjusted trial balance for 5/31/16. Assume this trial balance has been correctly prepared. CMC's year end is June 30th.
(A) Using the Excel General Journal spreadsheet in this file, record the June transactions listed below AND the necessary month end adjusting journal entries. Label the transactions in numeric sequence corresponding to the letters below. Each of the transactions below requires a journal entry. Note that there is a debit and credit control total at the top of the general journal so that you can check after each entry to see if you are in balance.
1. $750,000 of product was sold on account. This product had a cost of goods sold of $490,000
2. $63,000 received from customer for sales made on account in previous months.
3. The following invoices totaling $64,300 were received and recorded on account:
? Legal and Accounting Expense of $19,200
? Office Supplies Expense of $5,400
? Utilities Expense of $13,700
? Repair & Maintenance of $26,000
4. $110,000 of inventory was purchased on account and received into the warehouse during June. The company uses a perpetual inventory system.
5. $91,000 of vendor invoices were paid during June. These invoices had already been accrued into accounts payable in May.
6. On June 1 a customer made a $60,000 deposit for product sales to be made in July 2016.
7. Total June wages were $95,000, of which $73,365 were paid in June and $21,635 were to be paid in July. Payroll taxes should be ignored when you record this entry.
8. On July 1, 2015, CMC sold equipment with an original cost of $10,000 and accumulated depreciation of $7,000 for $5,000. In June 2016, CMC realized this entry had not yet been recorded. Since this equipment was sold on 7/1/15, make sure not to include it in the calculation of year-end depreciation.
Suzanne also provided you the following information that she thought may be helpful in preparing the yearend financial statements.
9. On January 1, 2016, ABC Corp. had paid CMC $240,000 in advance for a year of consulting services starting on January 1, 2016. Suzanne has been properly recording consulting revenue each month.
10. Bad debt expense has been estimated at $17,807. Bad debt expense is recorded annually at the end of the year, and has not yet been recorded.
11. Interest expense accrued on long-term liabilities is $6,235. Interest should be accrued every month but has not yet been accrued for June.
12. The Prepaid Expense account includes a three-year insurance policy purchased and recorded on January 1, 2016 for $11,520. Suzanne has been properly recognizing insurance expense each month through the end of May.
13. Depreciation is recorded annually on the straight line basis at the end of the fiscal year (i.e., no depreciation expense has been recorded yet for 2016). The company owns one building which has a useful life of 30 years and is assumed to have a $200,000 salvage value.
Furniture and equpment are assumed to have a useful life of 10 years with no salvage value.
14. On March 1st, CMC declared a dividend of $212,000, to be paid on October 20, 2016. Do not use a separate Dividends account. Debit the amount directly to Retained Earnings.
(B) "Post" the journal entries from the General Journal to the Excel spreadsheet of T-accounts in this file. All necessary T-accounts have been provided. This should be completed through the use of Excel formulas rather than retyping the numbers in your T-accounts. Please also place the number of each transaction next to each journal entry (see transaction '1' in the Excel T-Account sheet for an example). TIP: Set up your spreadsheet to have debit and credit control totals so that you can check after each entry to see if you are in balance.
(C) In Excel, prepare a Balance Sheet as of 06/30/16 and a SINGLE-STEP Income Statement for the year ended 6/30/16. This should be completed through the use of Excel formulas rather than retyping the ending balances from your T-accounts in the financial statements. Note that you do not need to record closing entries to the General Journal, just use the T-account balances to create your balance sheet and income statement. You do NOT need to prepare a Statement of Shareholders' Equity or Statement of Cash Flows. Income taxes should be ignored.
All of the needed information is provided in the attached excel file, including the unadjusted trial balance.