7:57 XCSU ACT 221 Practice Set Updated... CSU ACT 221 Fall 2019 Practice Set On December 1, 2018, John and Maggie Driscoll formed Cape Clear Island, LLC. Theybegan Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation: Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Payable Capital Stock Retained Earnings Dividends Income Summary Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Taxes Expense The LLC performs adjusting entries monthly. Closing entries are performed annually on December 31 Print Open with 7:57 XCSU ACT 221 Practice Set Updated... During following transactions: Dec. Issued to John and Maggie Driscoll 20.000 shares of capital stock in exchange for a total of $200,000 cash. Dec Purchased for $240,000 the equipment formally owned by a competitor named Achill, LLP. Paid S140,000 cash and issued a one year note payable for S100,000. The note, plus all 12 months of accrued interest, are due November 30, 2019 Dec.1 Paid $12,000 to Corrigan Realty, LLP as three months' advance rent on the rental yard and office formerly occupied by Achill, LLP Dec. 4 Purchased office supplies on account from the Castlebar Office Company for $1,000. Payment due in 30 days. (These supplies are expected to last for several months.) Dec. 8 Received $8,000 cash as advance payment on equipment rental from McGinty Construction Company Dec. 12 Paid salaries for the first two weeks in December of $5,200 Dec. 15 Excluding the McGinty advance, equipment rental fees eaned during December amounted to $18,000, of which S12,000 was received in cash. the first 15 days of Dec. 17 Purchased on account from Donegal, LLP S600 in parts needed to repair a rental tractor. Payment is due in 10 days. Dec. 23 Collected $2,000 of the accounts receivable recorded on December 15. Dec. 26 Rented a backhoe to Dever Landscaping at a price of S250 per day, to be paid when the Open With Print 7:57 1 XCSU ACT 221 Practice Set Updated... Dec. 26 Rented a backhoe to Dever Landscaping at a price of S250 per day, to be paid when the backhoe is returned. Dever Landscaping expects to keep the backhoe for about two or three weeks Dec. 26 Paid biweekly salaries, $5,200. Dec. 27 Paid the account payable to Donegal, LLP S600 Dec. 28 Declared a dividend of 10 cents per share, payable on January 15, 2019 Dec. 29 Cape Clear Island, LLC was named, along with Dever Landscaping and Westport Construction as a co-defendant in a $25,000 lawsuit filed. Dever Landscaping had left the rented backhoe in a fenced construction site owned by Westport Construction. After working hours on December 26, kids had climbed the fence to play on parked construction equipment. While playing on the backhoe, one fell and broke his arm. The extent of the company's legal and financial responsibility for this accident, if any, cannot be determined at this time Dec. 29 Purchased a 12-month public liability insurance policy for $9,600. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January 1, 2019, and affords no coverage for the injuries sustained by the kids on December 26. Dec. 3 Received a bill from Corraun Utilities for the month of December for $700. Payment is due in 30 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $20 Open With Print 7:581 XCSU ACT 221 Practice Set Updated... Dec. 3 Equipment rental fees earned during the second half of December amounted to S20,000. of which $15,600 was received in cash. The advance payment of rent on December1 covered a period of three months. b The annual interest rate on the note payable to Achill, LLP is 6 percent e The rental equipment is being depreciated by the straight-line method over a period of 8 years. d. Office supplies on hand at December 31 are estimated at S600. e During December, the company earned S3,700 of the rental fees paid in advance by McGinty Construction Company on December 8. t. As of December 31, six days' rent on the backhoe rented to Dever Landscaping on December 26 has been earned. Salaries earned by employees since the last payroll date (December 26) amounted to S1,400 at month- end. .It is estimated that the company is subject to a combined federal, state and local income tax rate of 45 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in 2019 a. Perform the following steps of the accounting cycle for the month of December .Record in the general journal the December Print Open with 7:581 CSU ACT 221 Practice Set Updated a. Perform the following steps of the accounting cycle for the month of December i. Record in the general journal the December transactions and post to the appropriate ledger 2. Prepare the unadjusted trial balance on a 10-columrn worksheet for the year ended December 31. See example on page 134 (Exhibit 3B.1) in our text book. 3. Prepare the necessary adjusting entries for Post the December adjusting entries to the . Complete the 10-column worksheet for the year December. appropriate ledger accounts. ended December 31 b. In professional format, prepare an Income Statement and Statement of Shareholders' Equity for the year ended December 31, and a Balance Sheet as of December 31 c. Prepare required footnote disclosures to accompany the December 31 financial statements. Your solution should include a separate footnote addressing each of the following areas: (1) depreciation policy, (2) maturity dates of major liabilities, and (3) potential liability due to pending litigation. Look at the ge d. Prepare closing entries and post to ledger accounts e. Prepare an after closing trial balance as of December 31 f. During December, this company's cash balance has fallen from S200,000. Does it appear headed for Open With Print 7:58 X CSU ACT 221 Practice Set Updated... maturity dates of major liabilities, and (3) potential liability due to pending litigation. Look at the Eacehook annual reort's fotates peosted ta aur d. Prepare closing entries and post to ledger accounts. e. Prepare an after closing trial balance as of December f. During December, this company's cash balance has Black Board homepage 31 fallen from $200,000. Does it appear headed for insolvency in the near future? Explain your reasoning. g. Would it be ethical for Maggie Driscoll to maintain the accounting records for this company, or must they be maintained by someone who is independent of the organization? Due date is Monday April 29, 2019. Required printed hard copy and an excel worksheet by e-mail. No fancy cover/packaging required on printed hard copy. Make separate worksheet tabs in the excel workbook accounting cycle. Answer require questions in a Do not create a separate word document. Must link the excel worksheets/tabs together in the excel workbook for the worksheet tab. 7:57 XCSU ACT 221 Practice Set Updated... CSU ACT 221 Fall 2019 Practice Set On December 1, 2018, John and Maggie Driscoll formed Cape Clear Island, LLC. Theybegan Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation: Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Payable Capital Stock Retained Earnings Dividends Income Summary Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Taxes Expense The LLC performs adjusting entries monthly. Closing entries are performed annually on December 31 Print Open with 7:57 XCSU ACT 221 Practice Set Updated... During following transactions: Dec. Issued to John and Maggie Driscoll 20.000 shares of capital stock in exchange for a total of $200,000 cash. Dec Purchased for $240,000 the equipment formally owned by a competitor named Achill, LLP. Paid S140,000 cash and issued a one year note payable for S100,000. The note, plus all 12 months of accrued interest, are due November 30, 2019 Dec.1 Paid $12,000 to Corrigan Realty, LLP as three months' advance rent on the rental yard and office formerly occupied by Achill, LLP Dec. 4 Purchased office supplies on account from the Castlebar Office Company for $1,000. Payment due in 30 days. (These supplies are expected to last for several months.) Dec. 8 Received $8,000 cash as advance payment on equipment rental from McGinty Construction Company Dec. 12 Paid salaries for the first two weeks in December of $5,200 Dec. 15 Excluding the McGinty advance, equipment rental fees eaned during December amounted to $18,000, of which S12,000 was received in cash. the first 15 days of Dec. 17 Purchased on account from Donegal, LLP S600 in parts needed to repair a rental tractor. Payment is due in 10 days. Dec. 23 Collected $2,000 of the accounts receivable recorded on December 15. Dec. 26 Rented a backhoe to Dever Landscaping at a price of S250 per day, to be paid when the Open With Print 7:57 1 XCSU ACT 221 Practice Set Updated... Dec. 26 Rented a backhoe to Dever Landscaping at a price of S250 per day, to be paid when the backhoe is returned. Dever Landscaping expects to keep the backhoe for about two or three weeks Dec. 26 Paid biweekly salaries, $5,200. Dec. 27 Paid the account payable to Donegal, LLP S600 Dec. 28 Declared a dividend of 10 cents per share, payable on January 15, 2019 Dec. 29 Cape Clear Island, LLC was named, along with Dever Landscaping and Westport Construction as a co-defendant in a $25,000 lawsuit filed. Dever Landscaping had left the rented backhoe in a fenced construction site owned by Westport Construction. After working hours on December 26, kids had climbed the fence to play on parked construction equipment. While playing on the backhoe, one fell and broke his arm. The extent of the company's legal and financial responsibility for this accident, if any, cannot be determined at this time Dec. 29 Purchased a 12-month public liability insurance policy for $9,600. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January 1, 2019, and affords no coverage for the injuries sustained by the kids on December 26. Dec. 3 Received a bill from Corraun Utilities for the month of December for $700. Payment is due in 30 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $20 Open With Print 7:581 XCSU ACT 221 Practice Set Updated... Dec. 3 Equipment rental fees earned during the second half of December amounted to S20,000. of which $15,600 was received in cash. The advance payment of rent on December1 covered a period of three months. b The annual interest rate on the note payable to Achill, LLP is 6 percent e The rental equipment is being depreciated by the straight-line method over a period of 8 years. d. Office supplies on hand at December 31 are estimated at S600. e During December, the company earned S3,700 of the rental fees paid in advance by McGinty Construction Company on December 8. t. As of December 31, six days' rent on the backhoe rented to Dever Landscaping on December 26 has been earned. Salaries earned by employees since the last payroll date (December 26) amounted to S1,400 at month- end. .It is estimated that the company is subject to a combined federal, state and local income tax rate of 45 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in 2019 a. Perform the following steps of the accounting cycle for the month of December .Record in the general journal the December Print Open with 7:581 CSU ACT 221 Practice Set Updated a. Perform the following steps of the accounting cycle for the month of December i. Record in the general journal the December transactions and post to the appropriate ledger 2. Prepare the unadjusted trial balance on a 10-columrn worksheet for the year ended December 31. See example on page 134 (Exhibit 3B.1) in our text book. 3. Prepare the necessary adjusting entries for Post the December adjusting entries to the . Complete the 10-column worksheet for the year December. appropriate ledger accounts. ended December 31 b. In professional format, prepare an Income Statement and Statement of Shareholders' Equity for the year ended December 31, and a Balance Sheet as of December 31 c. Prepare required footnote disclosures to accompany the December 31 financial statements. Your solution should include a separate footnote addressing each of the following areas: (1) depreciation policy, (2) maturity dates of major liabilities, and (3) potential liability due to pending litigation. Look at the ge d. Prepare closing entries and post to ledger accounts e. Prepare an after closing trial balance as of December 31 f. During December, this company's cash balance has fallen from S200,000. Does it appear headed for Open With Print 7:58 X CSU ACT 221 Practice Set Updated... maturity dates of major liabilities, and (3) potential liability due to pending litigation. Look at the Eacehook annual reort's fotates peosted ta aur d. Prepare closing entries and post to ledger accounts. e. Prepare an after closing trial balance as of December f. During December, this company's cash balance has Black Board homepage 31 fallen from $200,000. Does it appear headed for insolvency in the near future? Explain your reasoning. g. Would it be ethical for Maggie Driscoll to maintain the accounting records for this company, or must they be maintained by someone who is independent of the organization? Due date is Monday April 29, 2019. Required printed hard copy and an excel worksheet by e-mail. No fancy cover/packaging required on printed hard copy. Make separate worksheet tabs in the excel workbook accounting cycle. Answer require questions in a Do not create a separate word document. Must link the excel worksheets/tabs together in the excel workbook for the worksheet tab