Reference no: EM131561806
#1 Prepare Income Statement & Balance Sheet for Previous Month.
#2 Record the Journal Extries for Current Month.
#3 Post your entires to the Gernral Ledger.
#4 Record your Total Debits and Credits befote your Adjusting Entries.
#5 Record your Adjusting Entries.
#6 Record your Total DR/CR for your Adjusted Trial Balance.
#7 Prepare Income Statement & Balance Sheet for Curent month.
#8 Calculate all the Financial Ratios on last tab.
|
FINANCIAL TRANSACTION |
Transaction Amount |
| 1 |
The firm billed revenues on account. |
$50,000 |
|
|
|
| 1.1 |
Every time a sale is recorded, you must also record the charge to COGS & Inv. Use 70% of sales. |
Figure out. |
|
|
|
| 2 |
The firm purchased new machinery with a long term bank loan. |
$600,000 |
|
|
|
| 3 |
The firm redeemed investments for working capital (cash). |
$100,000 |
|
|
|
| 4 |
The firm purchased inventory on account. |
$200,000 |
|
|
|
| 5 |
The firm paid its 6 month premium for its car insurance policy. |
$10,000 |
|
|
|
| 6 |
The firm paid its week 1 payroll. |
$10,000 |
|
|
|
| 7 |
The firm purchased supplies on account. |
$5,000 |
|
|
|
| 8 |
The firm decides to bring in more investors. Sells 100,000 shares for $20/sh. Par value = $1. |
Figure out. |
|
|
|
| 9 |
The firm decides to pay some of its notes payable. Also incurs an interest penalty. |
$1,000,000 |
|
penaty -->> |
$5,000 |
|
|
|
| 10 |
The firm purchases inventory on accounnt from its vendors. |
$400,000 |
|
|
|
| 11 |
The firm records week 2 sales. 90% on account. 10% in cash. |
$180,000 |
|
|
|
| 12 |
CFO tells Accounting to make a payment on accounts payable. |
$400,000 |
|
|
|
| 13 |
The firm pays its employees for week 2 work. |
$12,000 |
|
|
|
| 14 |
Factory has a bad week. Some merchandise is returned. |
$2,500 |
|
|
|
| 15 |
The firm pays all its quarterly taxes from the previous quarter. |
Figure out. |
| ADJUSTING JOUNRAL ENTRIES |
|
|
|
|
| 16 |
The office manager does a quick supply inventory audit. She calculates supplies have been used up. |
$3,500 |
|
|
|
| 17 |
CFO tells you that all EQUIPMENT balance from last month should be depreciated using straigh line over 120 mos. |
Figure out. |
|
|
|
| 18 |
CFO tells you that all PLANT balance from last month should be depreciated using straigh line over 240 mos. |
Figure out. |
|
|
|
| 19 |
Some prepaid insurance was depleted during the month. |
$3,000 |
|
|
|
| 20 |
2 days worth of salaries need to be accrued at the end of the month, to be paid next month. |
$1,500 |
|
|
|
| 21 |
Bookkeeper forgot to record Week 3 and Week 4 sales. No cash sales for week 3 and 4. |
$138,000 |
|
|
|
| 22 |
Don't forget to record the COGS impact on the above sales transactions. |
Figure out. |
|
|
|
| 23 |
Bookeeper forgot to record Repairs & Maintenance for the month. Paid with cash. |
$1,800 |
|
|
|
| 24 |
Credit card fees of 2% of sales (for the month) were erroneously recorded to the sales account. Need JE to correct. |
Figure out. |
|
HINT: Credit should be applied to the asset account impacted when sales are recorded. |
|
|
|
|
| 25 |
Utilitiy expense invoice was found in the bookeeper drawer. Bill paid immediately. |
$28,000 |
|
|
|
| 26 |
Final entry of the month is to accrue a 30% corporarte tax on the pretax income for the month. |
Figure out. |
Financial Statements
Instructions and Guidance
1. Prepare Your Balance Sheet Below and Income Statement Below.
2. You must use ALL General Ledger accounts in both financial statements.
3. You can insert as many lines as you want. Make sure summing equaitions are correct.
4. Remember all of your data for these financial statements will come from your Trial Balance.
Attachment:- Journal Entries.xlsx