Reference no: EM133531809

Financial Management and Budget Planning

Objective 1: Understand how accounting transactions result in costs or revenues being recorded to the job cost ledger.
Objective 2: Record changes in the balance sheet, income statement and job cost ledger as the result of different transactions

Tasks:

Best in Town Construction has been hired to complete a residential renovation. The following is a list of some accounting transactions associated with the project. For each transaction, determine the changes that occur on the balance sheet, income statement, and job cost ledger as a result of that transaction and show an individual registry for each one. Summarize the year-to-date totals for the general ledger account and job cost ledger. The company uses the chart of accounts in Figure 2-1 of the textbook. The client withholds 10% holdback.

The Project uses project cost code 0012. The appropriate cost type and the indication of the type of expense (M, L, or E) needs to be added to the job cost code.

After you have entered all of the transactions, summarize the daily balance of the cash and profit accounts for the project (1 to 5).
Update Financial Statements accordingly. This are the last transactions to be registered for the year 2023.

Question 1. On January 12th the time cards were entered into the accounting system. The following costs were recorded: wages due to employees, $28,327; employee life insurance, $1,595; Medicare, $1,335; CPP, $656; EI, $978; workers' compensation, $1,924; general liability insurance, $1,092; and employer-paid health insurance, $432. Vacation $7,567

Question 2. On January 15th the employees were paid for the time entered into the accounting system on January 12th.

Question 3. On February 8th, a bill for materials and tools bought at Home Depot (nails, hardware, and small tools) in the amount of $16,521 was entered into the accounting system. The materials will be used for framing.

Question 4. On February 9th, an invoice from TCY plumbing is received for $112,000

Question 5. On February 15th, a client was billed $345,000 for January's work.

Attachment:- Spreadsheet.rar