1. Happy Dave is the owner of Dave's Pizza Garage. At the end of the accounting period, Happy Dave has assets of $26,000 and liabilities of $22.000. Using the accounting equation, determine the following: a. Owner's equity at the end of the accounting period. (3 Points) b. Owner's equity at the end of the next accounting period assuming assets increase by $2,500 and liabilities decrease by $500. 3 Points) 2. Analyze, journalize (Pg. 3) and update the ledger accounts (gs. 5-6) for the following January, 20x7 transactions for Benard Consulting, a proprietorship owned by Olivia Benard: a. Jan: Olivia Benard makes an investment into the company of $15,000 b. 1-Jan: January rent is paid for office space in the amount of $500 C 1-Jan: An annual comprehensive insurance policy is purchased for $2,400. d. 3-Jan: Provided consulting services for $1,500, due from the customer on 2/3/2017. e. 3-Jan: Purchased supplies on account $2,250. f. 10 Jan: Provided services for cash of $2,400. g. 12-Jan: Purchased office equipment paying cash of $1,800. h. 16-Jan: Paid $1,800 to vendors on account. i. 25-Jan: Provided services on account for $1,250. j. 28-Jan: Received payment on account of $1,000. k. 30 Jan: Olivia Benard withdrew $1,000 from the company for personal use. GENERAL JOURNAL (26 Points) General Journal Page 1 Date Post Account/Description Debit Credit Ref Account: Cash General Ledger (14 points) Account No: Date Post Ref Balance Debit Credit Debit Credit Account: Accounts Receivable Account No: Post Balance Date Debit Credit Ref Debit Account: Supplies Account No: Balance Date Post Ref Debit Credit Debit Credit General Ledger (Continued) Account No: Account: Prepaid Insurance Balance Date Post Ref Debit Credit Debit Credit Account: Office Equipment Account No: Balance Date Post Ref Debit Credit Debit Credit Account: Accounts Payable Account No: Balance Date Post Ref Debit Credit Debit Credit Account: O. Benard, Capital Account No: 31 Post Balance Date Date Presto Debit Debit Credit Ref Debit Credit General Ledger (Continued) Account No: Account: 0. Benard, Drawing Balance Date Post Ref Debit Credit Debit Credit Account: Fees Earned Account No: Balance Date Post Ref Debit Debit Credit credit Debit Credit Account No: Account: Rent Expense Balance Date Post Ref Debit Credit Debit Credit 3. Using the general ledger balances on pages 5-7.create an unadjusted trial balance at 1/31/2017 (8.25 Points) UNADJUSTED TRIAL BALANCE Debit Credit Account 4. A company had prepaid insurance with a beginning balance of $9,000 and the account was debited during the year for $12,240 for premiums paid. Journalise the adjusting entry assuming the amount of unexpired prepaid insurance (what should be left in the account) at the end of the year (12/31/20x7) is $9,180.(4.85 Points) Date Account/Description Debit Credit Illustrate how the above entry will affect the accounting equation Assets Liabilities Owner's Equity Page 8 7. The estimated amount of depreciation on equipment for the current year is $16,715. Journalize the adjusting entry at year end, 8/31/20x7, to record the depreciation. (3.35 Points) Debit Credit Date Account/Description illustrate how the above entry will affect the accounting equation: Assets Liabilities Owner's Equity For questions through 11 use the following Adjusted Trial Balance Grand, Co. ADJUSTED TRIAL BALANCE At 12/31/20x7 Account Debit Credit Cash 251,280 Accounts Receivable 18,000 Supplies 1,940 Prepaid Insurance 5,200 10,800 Office Equipment Accumulated Depreciation Office Equipment 2,160 Accounts Payable 9,160 Wage Payable 6,500 Unearned Fees 6,360 Trent West, Capital 215,240 Trent West, Drawing 21,000 Fees Earned 201,160 Wage Expense Insurance Expense 78,650 31,480 18,000 Rent Expense Supplies Expense 3,150 Depreciation Expense 1,080 440,580 440,580 8. Prepare an income statement for Grand Co., for the fiscal year ended 12/31/20x7 (don't forget the date). (8.25 Points) Grand, Co. Income Statement 10. Prepare a classified balance sheet in report format for Grand Co, at 12/31/2017 don't forget the datel (13.25 Points) Grand, Co. Balance Sheet 11. Prepare the closing entries for year-end. (10.10 Points) Date Account/Description Debit Credit 12. During the current year, a company has sold merchandise of $20,000 cash and $30,000 on account. The cost of the merchandise sold is $25,000. What is the amount of the gross profit? (1.35 Points) 13. On 1/11/20x7 a company purchases $100,000 of merchandise on account from a vendor with terms of 2/10, net/30. Journalize the entry using a net method. 13.35 points Debit Credit Date Account/Description Illustrate how the above entry will affect the accounting equation: Assets Liabilities Owner's Equity 14. Make the entry to record payment of the purchase invoice recorded in #13. The payment was made on 1/19/20x7. (3.35 Points) Debit Credit Account/Description Date illustrate how the above entry will affect the accounting equation: Owner's Equity Liabilities Assets 15. On 2/18/20x7 a company sold merchandise on account for $46,500 with terms 2/15, 1/45. The cost of the merchandise sold was $26,890. Journalize the entry using the net method. (6.60 points) Date Account/Description Debit Credit illustrate how the above entry will affect the accounting equation: Assets Liabilities Owner's Equity 16. Make the entry to record the receipt of payment from the customer for the sale recorded in #15. The payment was received on 2/27/20x7.(3.35 Points) Date Account/Description Debit Credit illustrate how the above entry will affect the accounting equation: Assets Liabilities + Owner's Equity 17. in a perpetual inventory system, beginning inventory, purchases, and sales of an item are as follows: June 1 June 11 June 15 June 21 June 27 Inventory Sale Purchase Sale Purchase 60 units at $12.00 40 units at $20.00 30 units at $13.00 40 units at $16.00 56 units at $13.25 a. Using the FIFO method, calculate the gross profit for the month of June; if applicable, round answers to two decimal places (10 points): b. Using the FIFO method, calculate the cost of inventory on June 30, if applicable, round answers to two decimal places (5 points): are as 18. A company has the following information (Round all computations to two decimals): Year 2 $ 20,440.00 Year 1 $ 18,976,00 Cost of merchandise sold Inventory Beginning of year End of year $ 6,300.00 $ $ 6.825.00 $ 5,670.00 6,300.00 a Compute the inventory turnover for both years rounding answers to two decimals (4 pts): * is the trend favorable or unfavorable (5 pts)? b. Compute the days in inventory for both years rounding answers to two decimals (4 pts) is the trend favorable or unfavorable 1.5 pts)