Project 01 - Je Fs Fsa Student

7/23/2019 Project 01 - Je Fs Fsa Student

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BACKGROUND

CAUTION

STEP-BY-STEP INSTRUCTIONS

Make sure the trial balance as of 12/31/13 balances.

Compan ! is a start"up compan that starte# last ear$ in 2%13. &ou are assi'ne# to make thenecessar (ournal entries for Compan ! in 2%14. )n the follo*in' tabs ou *ill be 'i+en Companpost"closin' trial balance at the en# of 2%13 as *ell as a list of transactions for 2%14. &ou are also'i+en a blank 'eneral (ournal to recor# our transactions$ an# a blank trial balance. -he trial balanif use# correctl$ *ill help ou #etermine the en#in' balances in all accounts. at the en# of 2%14.

-he 'eneral (ournal consists of t*o parts the (ournal entries an# a#(ustin' entries 0)- -here arsi a#(ustin' entries$ three of *hich are transactions 19$ 2% an# 21. &ou *ill nee# to fi'ure out the

other three on our o*n. -ransaction 19 has been complete# an# inclu#e# in the 'eneral (ournaan eample.

ote -here are multiple tabs in+ol+e# in this assi'nment$ so be sure to look at e+er tab to make sou ha+e complete# e+erthin'.

&ou are on our honor to complete this pro(ect on our o*n *ith no help from an other li+in' persoecept for the t*o CC 3%5 -s n#re* an# n#on or our professor. -he conseuences of nobein' honorable on this assi'nment are that ou *ill recei+e a ,%, on this assi'nment$ an# the

ssociate ean o+er stu#ents in the Marriott chool *ill be notifie# of our con#uct.

:e+ie* the 2%14 transactions -ransactions 1 thru 18 on the ,-ransactions, tab an# make appropr (ournal entries. :ecor# these transactions in the ,;eneral <ournal, tab. =palnations are nee#e# ofor the a#(ustin' entries.



>ost the (ournal entries ma#e in step 5 in the appropriate columns on the ,?orksheet 12"31"14, tab

&ou *ill nee# to reference our tet to help ou remember ho* to account for certain transactions.@or eample$ three transactions that stu#ents ten# to stru''le *ith are transactions A6$ A7$ an# A8There are others. >lease re+ie* our tet first before askin' uestions of the -,s or our profess

>ost the (ournal entries ma#e in step 2 in the relate# transaction A columns in the ,?orksheet 12"314, tab.

=cel shoul# summariBe the effect of postin' the (ournal entries ma#e in step 2 in the 2%14una#(uste# trial balance. Make sure the una#(uste# trial balance balances i.e.$ #ebits cre#its.

:e+ie* transactions 19 thru 21 on the ,-ransactions, tab an# consi#er the other t*o a#(ustin' entrinee#e# an# make the appropriate a#(ustin' entries in the ,;eneral <ournal,. &ou shoul# sho* sia#ustin' entires in total.

=cel shoul# summariBe the effect of the a#(ustin' entries in the 2%14 #(uste# >re"closin' -rialDalance columns on the ,?orksheet 12"31"14, tab.

Ese the 2%13 =n#in' -rial Dalance an# the 2%14 #(uste# >re"Closin' -rial Dalance in the,?orksheet 12"31"14, tab to create a balance sheet an# income statement in the ,@inancialtatements, tab

Ese the Dalance heet an# )ncome tatement to perform the reuest analsis in the ,nalsis, taban# then ans*er the relate# uestions. ns*ers to uestions shoul# be input into the >ro(ect 1,scantron, in earnin' uite,

0alf the points 1% pts *ill be a*ar#e# for completin' the ecel *orkbook. -he other half of the po1% pts *ill be base# on the accurac of the ans*ers to uestions 1"5 in the ,nalsis, tab.



leted by:

Company X

Post-Closing Trial BalanceFor the year ended December 31, 213

!cco"nt #ame $!lphabetically% Debit Credit

!cco"nts &ecei'able 1(,)

!cco"nts Payable *2,)+

!ccr"ed iabilities 2,2.!cc"m"lated Depreciation ),+*

!dditional Paid-/n-Capital 3),(

!llo0ance or Do"bt"l !cco"nts 1,)

Bad Debt pense

Cash (,+.

Commision

Common 4toc5 2*1

Cost o &e'en"es

Depreciation pense

6ain on 4ale6ain on 4ec"rities

ncome Ta pense

ncome Ta Payable ,)

ntangible !ssets 1,)

nterest /ncome7pense

nterest Payable

oans Payable 11,

8ar5et !d9"stment ),

8ar5etable 4ec"rities 13,3.)

ther ong-Term !ssets 1,PP; 1*.,(+3

Prepaid &ent

& ; D pense

&ent pense

&etained arnings 2*,132

4alaries $6;!%

4ales ; 8ar5eting pense

4ales Disco"nts

2013 Ending Balance

(closed)



4ales &e'en"e

<nearned &e'en"e 2,

2*1,*(* 2*1,*(*



2014 Transactions for Company X

Transaction # Date Eent

1 =an"ary 1 P"rchased 8ar5etable 4ec"rites or >1,

2 8arch 1) Paid last year@s income ta liability?

3 !pril 1

( !pril 1

) !pril 1 P"rchased eA"ipment or >),?

* !pril )

. 8ay 1

="ne 3 /ss"ed 1, shares o >1 par 'al"e stoc5

+ ="ly 1) 4pent >, cash on researching ne0 prod

1 ="ly 31 Paid 4alaries $6;!% o >2,?

11 4ept 3

12 ctober 1 The "nearned re'en"e rom the prior year

13 ctober 1 /nc"rred >, in 8ar5eting penses? Pai

1( ctober 1

1) ctober 31

1* #o' 1

ad &e'en"es on acco"nt o >12,? TerThe cost o these re'en"es 0as >1), an0ere >1,? Both cost o sales and com

cash?

Prepaid >*, in rent or the net 12 mont

asset?

&ecei'ed the cash to settle >3, $gross%recorded on !pril 1? C"stomers too5 the all

A"ipment that originally cost >, and h>3, 0as sold or >(, cash?

>, is borro0ed rom a local ban5 at +/nterest is payable yearly on ct 1 $beginni

P"rchased an intangible asset rom anothercash? This asset 0ill not be amortied?

&ecei'ed >+, o payments on past !ccodisco"nts 0ere ta5en?

/nc"rred and paid >2, o costs $epens

&e'en"es



1. Dec 1

1 Dec 31

1+ Dec 31

2 Dec 31

21 Dec 31 Depreciation epense or the year totaled >

22 Dec 31

23 Dec 31 $int: ne0 loan%

2( Dec 31 $int: prepaid rent%

&ecei'ed cash o >1,. or ser'ices that 0iyear?

/ncome Ta or 21( is >1.,? >1*, i

the remainder 0ill be paid 8arch 1), 21)?

8ar5etable sec"rities $classiied as trading%>(, d"ring the year

<ses the !llo0ance 8ethod or estimating Bpercent of t!e ending " Balance is esti

"ncollectible?

/n 213, the Company borro0ed >11, at/nterest is payable on Dec 31



? Paid 0ith Cash?

r >+ cash each?

"cts?

as earned?

d in cash?

s o )71, net *?sales commissions

issions 0ere paid in

s? &ecorded as an

o the &ecei'ables0ed disco"nt $)%?

d a boo5 'al"e o

interest per year?g in 21)%?

company or >11,

"nts &ecei'able? #o

s% related to



,2?

ll be perormed net

paid this year and

increased in 'al"e by

d Debt? Ten

ated to be

interest per year?



$eneral %o&rnal

Transaction # Date "cco&nt Title'Description Deit Credit

1 =an 18ar5etable 4ec"rities 1,

Cash 1,



!D=<4T/#6 #T&/4

1+ Dec 318ar5et !d9"stment (,

6ain on 4ec"rities (,

/ncrease in 'al"e o 8ar5etable sec"rities?



Completed by:

Company X

Post-Closing Trial BalanceFor the year ended December 31, 213

!cco"nt #ame $!lphabetically% Debit

!cco"nts &ecei'able 1(,)!cco"nts Payable

!ccr"ed iabilities

!cc"m"lated Depreciation

!dditional Paid-/n-Capital

!llo0ance or Do"bt"l !cco"nts

Bad Debt pense

Cash (,+.

Commision

Common 4toc5

Cost o &e'en"esDepreciation pense

6ain on 4ale

6ain on 4ec"rities

/ncome Ta pense

/ncome Ta Payable

/ntangible !ssets 1,)

/nterest /ncome7pense

/nterest Payable

oans Payable

8ar5et !d9"stment ),8ar5etable 4ec"rities 13,3.)

ther ong-Term !ssets 1,

PP; 1*.,(+3

Prepaid &ent

& ; D pense

&ent pense

&etained arnings

4alaries $6;!%

2013 End

Balance




4ales Disco"nts

4ales &e'en"e

<nearned &e'en"e

21*4



1 2

Credit Debit Credit Debit Credit Debit

*2,)+

2,2.

),+*

3),(

1,)

1,

2*1

,)

11,

1,

2*,132

ing Trial

closed)



2,

21*4



4 +

Credit Debit Credit Debit Credit Debit Credit





Transaction #

, - . 1

Debit Credit Debit Credit Debit Credit Debit





0 11 12 13






14 1+ 1

Debit Credit Debit Credit Debit Credit





1, 1-

Debit Credit Debit Credit Debit

1(,)-

-

-

-

-

-

3,+.

-

-

--

-

-

-

-

1,)

-

-

-

),23,3.)

1,

1*.,(+3

-

-

-

-

-

2014 /nad&

Balanc



-

-

-

-

-

21*4



"d&sting E

1 2 3


-*2,)+

2,2.

),+*

3),(

1,)

-

-

-

2*1

--

-

- (,

-

,)

-

-

-

11,

-(,

-

-

-

-

-

-

2*,132

-

ted Trial

e



-

-

-

2,

-

21*4



tries

4 +

Debit Credit Debit Credit Debit Credit Debit

1(,)-

-

-

-

-

-

3,+.

-

-

--

-

-

-

-

1,)

-

-

-

+,

23,3.)

1,

1*.,(+3

-

-

-

-

-

2014 "d&sted r

Bala



-

-

-

-

-

2+*4



Credit

-*2,)+

2,2.

),+*

3),(

1,)

-

-

-

2*1

--

-

(,

-

,)

-

-

-

11,

-

-

-

-

-

-

-

2*,132

-

e'Closing Trial

ce



-

-

-

2,

-

2+*4



C"r

Tot

Tot

C"r

Tot

Tot

4to

Tot



Tot

pe

th





Company X

Balance !eet

"s of Decemer 31

ent !ssets

Cash

8ar5etable 4ec"rities

Prepaid &ent

l C&rrent "ssets

Property, Plant ; A"ipment

ess: !cc"m"lated Decpreciation

#et Property, Plant ; A"ipment

/ntangible !ssets

ther ong-Term !ssets

l "ssets

ent iabilities

!cco"nts Payable!ccr"ed iabilities

/ncome Ta Payable

/nterest Payable

<nearned &e'en"e

l C&rrent iailities

oans Payable

l iailities

5holder@s A"ity

Common 4toc5

!dditional Paid-/n-Captial

&etained arnings

l E&ity

!cco"nts &ecei'able $net o allo0ances or bad debt o >EEEEE, and >EEEErespecti'ely%



l iailities and toc5!older6s E&ity

Company X7ncome tatement

8or t!e 9ear Ended Decemer 31

4ales &e'en"e

ess 4ales Disco"nts

#et 4ales

Cost o &e'en"es

6ross Proit

ating penses:

4alaries $6;!%


Commissions

&;D pense

&ent pense

Depreciation penseBad Debt pense

/ncome rom operations

r items

/nterest income

/nterest epense

6ain on 4ale6ain on 4ec"rities

/ncome beore income ta

/ncome ta epense

#et /ncome





2014 2013

- -

- -

' '

- -

- -

hint: retained earni

- -



' '

2014

> -

> -

hint: any credit balance epe

> -

> -

hint: any interest income an

hint: interest epense sho"ld

> -

> -





ngs sho"ld eA"al the prior year balance pl"s c"rrent year net incom



nses sho"ld be entered as a negati'e n"mber

gains sho"ld be entered as a positi'e n"mber

be entered as a negati'e n"mber











/sing t!e information from t!e financial statements perform t!e follo

Comp"te Company X@s c"rrent ratio

2014

C"rrent !ssets -C"rrent iabilities -

C"rrent &atio

1Does Company X ha'e the ability to pay its debts in th

a? Hes

b? #o

Comp"te Company X@s ret"rn on sales and ret"rn on eA"ity

2014

#et /ncome -

4ales -

4toc5holder@s A"ity -

&et"rn on 4ales

&et"rn on A"ity

2 /s the 21( ret"rn on sales higher than the 21( ret"r

a? Hes

b? #o

Comp"te Company X@s asset t"rno'er ratio

2014

4ales -

Total !ssets -

!sset T"rno'er

3!re Company X@s assets being "sed more eiciently in

a? Hes

b? #o



Comp"te selected common sie income statements amo"nts or t

2014

4alaries $6;!% -

4ales ; 8ar5eting pense -

Commissions -&;D pense -

&ent pense -

Depreciation pense -

Bad Debt pense -

4Ihich operating epense has increased most as a per

a? 4alaries $6;!%

b? 4ales ; 8ar5eting pense

c? Commisssionsd? &;D pense

e? &ent pense

? Depreciation pense

g? Bad Debt pense

+o0 m"ch 0o"ld an in'estor ha'e earned in 21( or

a? >?2

b? >?2)

c? >?3

d? >?3)



:ing analyses and ans:er t!e follo:ing &estions in t!e roect 1 ;s

2013

--

short r"n at the end o 21( $i?e?, is the c"rrent ratio 1G%

n on eA"ityG

2013

),

-

21( relati'e to 213 $ass"me 213 #et 4ales 0ere >),%G



e ollo0ing epenses

2013

JD/K7L 1, 2?1 JD/K7L

JD/K7L *, .?1 JD/K7L

JD/K7L .,) ? JD/K7LJD/K7L (, (?. JD/K7L

JD/K7L (,) )?3 JD/K7L

JD/K7L 2, 2?( JD/K7L

JD/K7L 1,) 1? JD/K7L

ent o net sales $ass"ming 213 operating epense abo'e%G

'ery >1 dollar in'estedG



antron; in earning &ite



Documents

Project 01 - Je Fs Fsa Student