A: = = Merge & Center Font Alignment =+G52+654+G53+G55 ACCT 1115 Ltd. Term Case You are working for ABC Ltd., for accounting and financial services. ACCT 1115 corporation a new client seeking your help to complete their accounting records, to prepare all the financial statements (Statement of financial position (SFP), statement of income and statement of changes in shareholders equity). Also, they required you to perform a financial statements analysis (ratio analysis). and provide them with your professional opinion on their results. When discussing their business, you learned that ACCT 1115 is one of the largest food retailers in the Province. ACCT 1115 uses calendar year as there year end, they provide you with their SFP for the year ended Dec 31, 2018: (SFP found on the excel file) ACCT 1115 Co. Comparitive statement of Financila Position December 31, 2018 and 2017 C E F 2017 6,20,000 6,20,000 4,10,000 2,10,000 ACCT 1115 Co. Comparitive statement of Financila Position December 31, 2018 and 2017 Account 2018 Sales Revenue 7,13,000 Sales discount Net slaes 7,13,000 Cost of goods sold 4,71,500 Gross Profit 2,41,500 Operating exp: Salaries & wages exp. 17,250 Rent expense 11,500 Utility Expense 5,750 Maintenance exp. Dep. Expense (equip. & Build) 57,500 Bad debt exp 4,025 Insurance exp 13,800 Total operating exp. 1,09,825 Operating income 1,31,675 Other revenues and expenses Rent revenue Interest exp. 34,500 Income before tax 97,175 Income tax exp. 45,000 Net Income 52,175 15,000 10,000 5,000 50,000 3,500 12,000 95,500 1,14,500 30,000 84,500 42,000 42,500 656 4 A H B G 2017 1 X fx =+G52+G54+G53 G55 C D ACCT 1115 Co. Comparitive statement of Financila Position December 31, 2018 and 2017 Account 2018 Current Assets: Cash 1,00,000 Accounts Receivable 2,00,000 Inventory 1,85,000 Prepaid Insurance 24,000 Total current assets 5,09,000 Long term Investments 2,50,000 Equipment 5,00,000 Accumulated depreciation Equipment (1,50,000) Total Assets 11,09,000.00 5 0,000 1,00,000 1,25,000 36,000 3,11,000 80,000 5,00,000 (1,00,000) 7,91,000.00 60,000 Liabilities and sharholders equity Accounts Payable Wares & Salaries Payable Unearned Sales Revenue Income tax payable Total current liabilities Bonds payable Total Liabilities Common shares Retained earnings Total Liabilities and sharholders equity 1,60,000 75,000 1,07,500 45,000 3,87.500 3,50,000 7.37.500 1,00,000 2,71,500 11.09,000.00 10,000 42,000 1.12,000 3,50,000 4,62.000 1,00,000 2,29,000 7.91,000.00 coded calculation. Please DO NOT add any numbers to to this dark line or below. Number Home Insert Page Layout Formulas Data Review View Help Search AutoSum - Calibri 11 A A == Wrap Text Custom - Merge & Center - BIU. 31..A. 18 % Conditional Formatas E 888 Cell Insert Delete Format Formatting" Table Styles To Clear Font Styles Editing . : =#6524G54+G53+655 JKLMNOPQR The following transaction we the only transaction for ACCT 1115co during 2019: 1 Jan I purchased new building for 5,86,383 they paid 1,20,307 cash and they sipa 12 note payable for the balance. The notecary interest of 6 The sole principle dae with the interest on Dec 31, 2019. The building expected useful life 25 years, 65,154 ACCT 1115 uses straight line as the method of depreciation an, was payable from 2018 paid cash Jan 8they der merchandise to customer amount of 1,07 500 cost of these products are 26,061 Previously ACET 1115 received cash amount of 1,07,500 from customer and record it in Dec 18, 2018 in account (Unnamed sales revenue) Jan 12, all income tansowed from last year are paid cash Jual 3, collect from customers 1,30,307 cash 6 Jan 15, issued comon shares for 3,90,921 cash 7 Jan 16 purchased merchandise for 2,73,645 from ABC Co., ter 3 20,545, FOB destination 34 discount if paid in 20 days 8 Jan 21 seturned merchandise to ABC co amount of 13,001 9 Jan 28 paid the amounts owed to ABC Co. 10 Jan 3 paid bites 6,515 cash 11 Pa I paid salaries 10,425 cash 12 Feb 2sold merchandise of 1,56,369 cost of those goods was 1,04,246 ACCT 1115 used perpetual inventory system 13 Feb 12 sold merchandise of 78,184 to XYZ.co, ferm 2010, 30. FOB shipping point cost of those goods was 52,123 2% discount if received in 10 days 14 March 1, XY pued their account in full 15 Apr I paid rent for the most u Maramount of 16 Apr 15, purchased merchandise for cash 2.60,614 17 May I borrow from a local bank 1.30,907 by sipinga note payable 18 Aug 1, they paid for one year amount of 15.407 19 Aur 31. paid cash for main e and dating the building Sep 1, padin salaries 19.846 21 Sep 30, they rent part of the building to a local business and collect one year as advance act of 31,174 for 12 months 22 Oct 21 sold merchandise on account for 2.60,614 to BC . cost of those goods was 1,30,307 Nov 1, Bend, pand 65.134 cash on their account 24 Nov sold merchandise lo Scofor 2,73,615 tem 210.30 FOB shipping point Cost of those goods was 1,82,430 24 discount if received in 10 days Nov 14, SK paid the account in 26 Dec 3. pand income taxes out of 1. Group 2.Data JE 4GLT accounts S.Unadjusted TS 6.Ad. JE 7.Updated GL with adj. Adjusted 3.909 Data Search Share O AutoSum - A me m ert Calibeb BIU. Page Layout Formulas 11 AA == . 0.A. E Review View Help Wiap Text Custom Merge Center 18 % linsert Delete Format 38-40 Conditional Format as cell Formatting Table Styles Clear Sort & Find a Filter Select Font Alignment Number Editing - x -+65246544GS3+G55 F G K L M N O P Q 15 years DE Fease DO NOT add any number The following transaction are the only transaction for ACCT 1115 co. during 2019: 1 Jan I purchased new building for 5.80.82 they paid 1,30,307 cash and they sig 12 note payable for the balance. The note carry interest The note principle due with the interest on Dec 31, 2019. The building expected useful life residual (salvage) vale amount of 65,154 ACCT 1115 uses straight line as their method of depreciation 2 Jan 3, all wages payable from 2018 pand cash Jan , they deliver merchandise to customer amount of 1,07,500 cost of these products are 26,061 Previously ACOT 1115 recewed cash amount of 1,07,500 from customer and record it in Dec 18, 2018 in account (Unearned sales revenue) Jan 12, all income taxes owed from last year are paid cash 5 Jan), collect from custom 1.30,307 cash 6 Jan 15, issued common shares for 3,90,921 cash 7 Jan 16 purchased merchandise for 2,73,645 from ABC CO., term 320, 145. FOB destination. 3% discount if paid in 20 days 8 Jan 21 returned merchandise to ABC co amount of 13,031 9 Jan 28 pod the amounts owed to ABC.CO. 10 Jan 31 paid uhlies 6,515 cash 11 Pan 31 pand salanes 10,425 cash 12 Feb 2 sold merchandise of 1,56,369 cost of those goods was 1.04.246 ACCT 1115 used perpetual inventory system 13 Feb 12 sold merchandise of 78,181 to XYZ coterm 2/10, n. 30. FOB shipping point cost of those goods was 52,123 2% discount if received in 10 days 14 March 1, XYZ pand their account in full 15 Apr 1 paid rent for the months Jan-Mar amount of 3,909 16 Apr 15. purchased merchandise for cash 2,60,614 17 May I borrow from a local bank 1,30,307 by signing a 12 note payable 18 Aug 1, they pad for one year fent amount of 15,637 19 Aug 31. pand cash for maintenance and cleaning the building 20 Sep pad slane 19.566 6.915 Group 2. Data L 4 GLT accounts Sunadjusted To Adj. JE 7.Updated GL with ady Adjusted Term Case - Excel Sunpreet Singh Page Layout Formulas Data Review View Help Share Search Home Insert Calibri BIU. Autasum = 47 O 11 . A A .A.A. E Wrap Test Merge & Center SZ s 8-% 588 Insert Delete Format Conditional Formatos Cell Formatting Table Styles Clear Sort & Find a Filter Select - - Font Editing M N O P Q 12 months B 20 21 22 23 24 25 26 X +4524654+G534655 C D Sep 1, padin salan 19,546 Sep 30, they rent part of the building to a local business and collect one year rent in advance amount of 31.274 for Oct 21 sold merchandise on account for 2,00,014 to BC lid, cost of those goods was Nov 1, le pad 65,154 cash on their account Nov 8 sold merchandise to S co, ter 2,73,615 term 2/10, 1/30. FOB shipping point. Cost of those goods was Nov 14, SK paid the account inte Dec 31, and income taxes amount of 10.000 www 2% discount if received in 10 days Notes (assumptions): A ACCT 1115 using perpetual inventory system B. Equipment on their SFP purchased on 2016 for $500,000 with 5,00,000 10 50 residual value, depreciated straht line over 10 year estimated useful life. c. They use aping accounts receivables method to estinate any bad debt expenses. They estimated 3% of outstanding het Accounts Receivables year yoan sales at year will not be collected D. Prepaid insurance was paid on Jan 1, 2017 to cover vears insurance E No accruals deferrals other than the ones found in the above transactions Required: Following the excel sheet template Prepare: Round your answers to hearst Si dollar. This is not apply on the ratios 1 AJE for the above transactions, considering the roles assumptions above 2. Postal the transactions into the general ledger GL (T accounts 5. Prepare the adjusted trial balance before any adjustments 4. Prepare as the required adjustments (deferrals and accruals) if any, and update the GL 5. Prepare the used trial balance after you made all the adjustments 6. Prepare the following financial statements 2 Stalement of income b. Statement of changes in equity 1. Group 2. Data IJE 40 accounts S. Unadjusted TB A JE Udated GL with ad Notes (assumptions): A. ACCT 1115 using perpetual inventory system B. Equipment on their SFP purchased on 2016 for $500,000 with 5,00,000 $0 residual value, depreciated straight line over 10 year estimated useful life. C. They use aging accounts receivables method to estimate any bad debt expenses. They estimated 3% of outstanding net Accounts Receivables t year yean sales at year will not be collected D. Prepaid insurance was paid on Jan 1,2017 to cover 3 years insurance E. No accruals/deferrals other than the ones found in the above transactions, Required: Following the excel sheet template Prepare: Round your answers to nearst $i dollar. This is not apply on the ratios 1. All JE for the above transactions, considering the notes/ assumptions above 2. Post all the transactions into the general ledger GL ("T" accounts) 3. Prepare the unadjusted trial balance before any adjustments 4. Prepare all the required adjustments (deferrals and accruals) if any, and update the GL 5. Prepare the adjusted trial balance after you made all the adjustments 6. Prepare the following financial statements a. Statement of Income b. Statement of changes in equity c. Statement of Financial position 7. Prepare the following financial ratios (the list on excel file). Round ratios to 2 digits. 8. Write a memo to your client ACCT 1115 to communicate your findings by explaining the ratios, their results and any suggestions for improvements if needed. Vemo one to no pages maximum A: = = Merge & Center Font Alignment =+G52+654+G53+G55 ACCT 1115 Ltd. Term Case You are working for ABC Ltd., for accounting and financial services. ACCT 1115 corporation a new client seeking your help to complete their accounting records, to prepare all the financial statements (Statement of financial position (SFP), statement of income and statement of changes in shareholders equity). Also, they required you to perform a financial statements analysis (ratio analysis). and provide them with your professional opinion on their results. When discussing their business, you learned that ACCT 1115 is one of the largest food retailers in the Province. ACCT 1115 uses calendar year as there year end, they provide you with their SFP for the year ended Dec 31, 2018: (SFP found on the excel file) ACCT 1115 Co. Comparitive statement of Financila Position December 31, 2018 and 2017 C E F 2017 6,20,000 6,20,000 4,10,000 2,10,000 ACCT 1115 Co. Comparitive statement of Financila Position December 31, 2018 and 2017 Account 2018 Sales Revenue 7,13,000 Sales discount Net slaes 7,13,000 Cost of goods sold 4,71,500 Gross Profit 2,41,500 Operating exp: Salaries & wages exp. 17,250 Rent expense 11,500 Utility Expense 5,750 Maintenance exp. Dep. Expense (equip. & Build) 57,500 Bad debt exp 4,025 Insurance exp 13,800 Total operating exp. 1,09,825 Operating income 1,31,675 Other revenues and expenses Rent revenue Interest exp. 34,500 Income before tax 97,175 Income tax exp. 45,000 Net Income 52,175 15,000 10,000 5,000 50,000 3,500 12,000 95,500 1,14,500 30,000 84,500 42,000 42,500 656 4 A H B G 2017 1 X fx =+G52+G54+G53 G55 C D ACCT 1115 Co. Comparitive statement of Financila Position December 31, 2018 and 2017 Account 2018 Current Assets: Cash 1,00,000 Accounts Receivable 2,00,000 Inventory 1,85,000 Prepaid Insurance 24,000 Total current assets 5,09,000 Long term Investments 2,50,000 Equipment 5,00,000 Accumulated depreciation Equipment (1,50,000) Total Assets 11,09,000.00 5 0,000 1,00,000 1,25,000 36,000 3,11,000 80,000 5,00,000 (1,00,000) 7,91,000.00 60,000 Liabilities and sharholders equity Accounts Payable Wares & Salaries Payable Unearned Sales Revenue Income tax payable Total current liabilities Bonds payable Total Liabilities Common shares Retained earnings Total Liabilities and sharholders equity 1,60,000 75,000 1,07,500 45,000 3,87.500 3,50,000 7.37.500 1,00,000 2,71,500 11.09,000.00 10,000 42,000 1.12,000 3,50,000 4,62.000 1,00,000 2,29,000 7.91,000.00 coded calculation. Please DO NOT add any numbers to to this dark line or below. Number Home Insert Page Layout Formulas Data Review View Help Search AutoSum - Calibri 11 A A == Wrap Text Custom - Merge & Center - BIU. 31..A. 18 % Conditional Formatas E 888 Cell Insert Delete Format Formatting" Table Styles To Clear Font Styles Editing . : =#6524G54+G53+655 JKLMNOPQR The following transaction we the only transaction for ACCT 1115co during 2019: 1 Jan I purchased new building for 5,86,383 they paid 1,20,307 cash and they sipa 12 note payable for the balance. The notecary interest of 6 The sole principle dae with the interest on Dec 31, 2019. The building expected useful life 25 years, 65,154 ACCT 1115 uses straight line as the method of depreciation an, was payable from 2018 paid cash Jan 8they der merchandise to customer amount of 1,07 500 cost of these products are 26,061 Previously ACET 1115 received cash amount of 1,07,500 from customer and record it in Dec 18, 2018 in account (Unnamed sales revenue) Jan 12, all income tansowed from last year are paid cash Jual 3, collect from customers 1,30,307 cash 6 Jan 15, issued comon shares for 3,90,921 cash 7 Jan 16 purchased merchandise for 2,73,645 from ABC Co., ter 3 20,545, FOB destination 34 discount if paid in 20 days 8 Jan 21 seturned merchandise to ABC co amount of 13,001 9 Jan 28 paid the amounts owed to ABC Co. 10 Jan 3 paid bites 6,515 cash 11 Pa I paid salaries 10,425 cash 12 Feb 2sold merchandise of 1,56,369 cost of those goods was 1,04,246 ACCT 1115 used perpetual inventory system 13 Feb 12 sold merchandise of 78,184 to XYZ.co, ferm 2010, 30. FOB shipping point cost of those goods was 52,123 2% discount if received in 10 days 14 March 1, XY pued their account in full 15 Apr I paid rent for the most u Maramount of 16 Apr 15, purchased merchandise for cash 2.60,614 17 May I borrow from a local bank 1.30,907 by sipinga note payable 18 Aug 1, they paid for one year amount of 15.407 19 Aur 31. paid cash for main e and dating the building Sep 1, padin salaries 19.846 21 Sep 30, they rent part of the building to a local business and collect one year as advance act of 31,174 for 12 months 22 Oct 21 sold merchandise on account for 2.60,614 to BC . cost of those goods was 1,30,307 Nov 1, Bend, pand 65.134 cash on their account 24 Nov sold merchandise lo Scofor 2,73,615 tem 210.30 FOB shipping point Cost of those goods was 1,82,430 24 discount if received in 10 days Nov 14, SK paid the account in 26 Dec 3. pand income taxes out of 1. Group 2.Data JE 4GLT accounts S.Unadjusted TS 6.Ad. JE 7.Updated GL with adj. Adjusted 3.909 Data Search Share O AutoSum - A me m ert Calibeb BIU. Page Layout Formulas 11 AA == . 0.A. E Review View Help Wiap Text Custom Merge Center 18 % linsert Delete Format 38-40 Conditional Format as cell Formatting Table Styles Clear Sort & Find a Filter Select Font Alignment Number Editing - x -+65246544GS3+G55 F G K L M N O P Q 15 years DE Fease DO NOT add any number The following transaction are the only transaction for ACCT 1115 co. during 2019: 1 Jan I purchased new building for 5.80.82 they paid 1,30,307 cash and they sig 12 note payable for the balance. The note carry interest The note principle due with the interest on Dec 31, 2019. The building expected useful life residual (salvage) vale amount of 65,154 ACCT 1115 uses straight line as their method of depreciation 2 Jan 3, all wages payable from 2018 pand cash Jan , they deliver merchandise to customer amount of 1,07,500 cost of these products are 26,061 Previously ACOT 1115 recewed cash amount of 1,07,500 from customer and record it in Dec 18, 2018 in account (Unearned sales revenue) Jan 12, all income taxes owed from last year are paid cash 5 Jan), collect from custom 1.30,307 cash 6 Jan 15, issued common shares for 3,90,921 cash 7 Jan 16 purchased merchandise for 2,73,645 from ABC CO., term 320, 145. FOB destination. 3% discount if paid in 20 days 8 Jan 21 returned merchandise to ABC co amount of 13,031 9 Jan 28 pod the amounts owed to ABC.CO. 10 Jan 31 paid uhlies 6,515 cash 11 Pan 31 pand salanes 10,425 cash 12 Feb 2 sold merchandise of 1,56,369 cost of those goods was 1.04.246 ACCT 1115 used perpetual inventory system 13 Feb 12 sold merchandise of 78,181 to XYZ coterm 2/10, n. 30. FOB shipping point cost of those goods was 52,123 2% discount if received in 10 days 14 March 1, XYZ pand their account in full 15 Apr 1 paid rent for the months Jan-Mar amount of 3,909 16 Apr 15. purchased merchandise for cash 2,60,614 17 May I borrow from a local bank 1,30,307 by signing a 12 note payable 18 Aug 1, they pad for one year fent amount of 15,637 19 Aug 31. pand cash for maintenance and cleaning the building 20 Sep pad slane 19.566 6.915 Group 2. Data L 4 GLT accounts Sunadjusted To Adj. JE 7.Updated GL with ady Adjusted Term Case - Excel Sunpreet Singh Page Layout Formulas Data Review View Help Share Search Home Insert Calibri BIU. Autasum = 47 O 11 . A A .A.A. E Wrap Test Merge & Center SZ s 8-% 588 Insert Delete Format Conditional Formatos Cell Formatting Table Styles Clear Sort & Find a Filter Select - - Font Editing M N O P Q 12 months B 20 21 22 23 24 25 26 X +4524654+G534655 C D Sep 1, padin salan 19,546 Sep 30, they rent part of the building to a local business and collect one year rent in advance amount of 31.274 for Oct 21 sold merchandise on account for 2,00,014 to BC lid, cost of those goods was Nov 1, le pad 65,154 cash on their account Nov 8 sold merchandise to S co, ter 2,73,615 term 2/10, 1/30. FOB shipping point. Cost of those goods was Nov 14, SK paid the account inte Dec 31, and income taxes amount of 10.000 www 2% discount if received in 10 days Notes (assumptions): A ACCT 1115 using perpetual inventory system B. Equipment on their SFP purchased on 2016 for $500,000 with 5,00,000 10 50 residual value, depreciated straht line over 10 year estimated useful life. c. They use aping accounts receivables method to estinate any bad debt expenses. They estimated 3% of outstanding het Accounts Receivables year yoan sales at year will not be collected D. Prepaid insurance was paid on Jan 1, 2017 to cover vears insurance E No accruals deferrals other than the ones found in the above transactions Required: Following the excel sheet template Prepare: Round your answers to hearst Si dollar. This is not apply on the ratios 1 AJE for the above transactions, considering the roles assumptions above 2. Postal the transactions into the general ledger GL (T accounts 5. Prepare the adjusted trial balance before any adjustments 4. Prepare as the required adjustments (deferrals and accruals) if any, and update the GL 5. Prepare the used trial balance after you made all the adjustments 6. Prepare the following financial statements 2 Stalement of income b. Statement of changes in equity 1. Group 2. Data IJE 40 accounts S. Unadjusted TB A JE Udated GL with ad Notes (assumptions): A. ACCT 1115 using perpetual inventory system B. Equipment on their SFP purchased on 2016 for $500,000 with 5,00,000 $0 residual value, depreciated straight line over 10 year estimated useful life. C. They use aging accounts receivables method to estimate any bad debt expenses. They estimated 3% of outstanding net Accounts Receivables t year yean sales at year will not be collected D. Prepaid insurance was paid on Jan 1,2017 to cover 3 years insurance E. No accruals/deferrals other than the ones found in the above transactions, Required: Following the excel sheet template Prepare: Round your answers to nearst $i dollar. This is not apply on the ratios 1. All JE for the above transactions, considering the notes/ assumptions above 2. Post all the transactions into the general ledger GL ("T" accounts) 3. Prepare the unadjusted trial balance before any adjustments 4. Prepare all the required adjustments (deferrals and accruals) if any, and update the GL 5. Prepare the adjusted trial balance after you made all the adjustments 6. Prepare the following financial statements a. Statement of Income b. Statement of changes in equity c. Statement of Financial position 7. Prepare the following financial ratios (the list on excel file). Round ratios to 2 digits. 8. Write a memo to your client ACCT 1115 to communicate your findings by explaining the ratios, their results and any suggestions for improvements if needed. Vemo one to no pages maximum
