Question
ACC301 Accounting Theory and Practice Case Due Dates Listed Below All Case Components should be uploaded to Canvas You are an accountant at the office
ACC301 Accounting Theory and Practice
Case Due Dates Listed Below
All Case Components should be uploaded to Canvas
You are an accountant at the office of Wiley, Shaw & Massey, CPAs
You have been given an assignment to compile financial statements for a new client, Saints Computer Supply Warehouse. You were given the clients banking records that showed the business transactions that occurred during the first month of operations, July 2020. The client wants to grow the business by either seeking capital investors, or obtaining operating loans from creditors. The client would like a set of financial statements to present to potential investors and creditors.
The client does not understand accounting, so the partner wants you to not only compile the financial statements, but to also write a memo to the file so that the partner can speak with the client and explain how potential investors and creditors will use specific components on the financial statements to make business decisions. Remember your audience in writing this memo. Your audience is the partner. The partner needs clear, concise information to relay to the client. Use the ratios and ratio explanation to describe to the partner the liquidity, solvency, debt leverage, and profitability of the company based on the compiled financial statements.
Requirements: Attached to this information are transactions needed for journal entries and adjusting journal entries as well as student requirements and due date.
- Client transactions for the month of July 2020
- Student Responsibility Prepare all Journal Entries associated with the transactions that occurred in July 2020 in a General Journal. Post all journal to T-Accounts
- Due Date: Wednesday, 9/8/21 by 11:59pm
- Student Responsibility Prepare all Journal Entries associated with the transactions that occurred in July 2020 in a General Journal. Post all journal to T-Accounts
- Client adjusting transactions for the month of July 2020
- Student Responsibility Prepare all Adjusting Entries associated with the adjusting transactions for the month of July 2020 in a General Journal. Post all adjusting entries to T-Accounts. Prepare an adjusted Trail Balance
- Due Date: Wednesday, 9/15/21 by 11:59pm
- Student Responsibility Prepare all Adjusting Entries associated with the adjusting transactions for the month of July 2020 in a General Journal. Post all adjusting entries to T-Accounts. Prepare an adjusted Trail Balance
- Student Responsibility Prepare an Income Statement, Statement of Shareholders Equity, and a Balance Sheet as of July 31, 2020 (Prepare in Excel with good formatting)
- Due Date: Wednesday, 9/22/21 by 11:59pm
- Student Responsibility Calculate the following ratios and provide a 1-2 sentences explanation of what each ratio means (Prepared in Word or Excel Must show all calculations in order to receive full credit)
- Net Margin
- Return on Investment (ROI)
- Current Ratio
- Debt to Equity Ratio
- Asset Turnover
- Due Date: Wednesday, 9/29/21 by 11:59pm
- Student Responsibility - Prepare a Client Memo explaining how potential investors and creditors will use the Companys financial statements to make business decisions. (Prepared in Word. Use Memo Format. See Writing a Memo in the case module in canvas. Memo will be graded on grammar)
- Due Date: Wednesday, 10/6/21 by 11:59pm
The clients information is below:
Tom Saint opened Saints Computer Supply Warehouse on July 1, 2020. Tom sells computer supplies to businesses as well as consumers.
During July, 2020, the following transactions occurred:
- July 1 - Tom Saint purchased 1,000 common stock for $20,000 cash.
- July 1 Signed a 1-year lease on a warehouse and paid July rent in the amount of $1,000.
- July 1 Purchased truck for $6,000, paying $3,000 cash and the balance on a note payable. The note payable is considered long term because it does not mature until December 31, 2023.
- July 3 purchased computer supplies for $4,300 on account. These supplies represent inventory and a resource available to the company.
- July 5 - purchased a one-year liability insurance policy effective July 1, 2020 for $6,000.
- July 12 sold $2,500 of computer supplies to customer on account. The computer supplies had a cost of $ 1,000. Saints Computer Supply Warehouse uses the perpetual inventory system.
- July 18 - paid $1,000 cash on amount owed on truck. $200 represents interest and $800 represents principal.
- July 19 paid $2,800 on amount owed for computer supplies purchased on July 3.
- July 20 - paid $800 cash for employee salaries.
- July 22 - collected cash from customers billed on July 12.
- July 25 sold $3,000 of computer supplies to customer on account. The computer had a cost of $ 1,200. Saints Computer Supply Warehouse uses the perpetual inventory system.
- July 28 - paid gas and oil bill for the month on the truck in the amount of $200.
- July 29 paid utility bill for warehouse in the amount of $250.
- July 31 - paid a dividend to Tom Saint in the amount of $900.
- July 31 - Collected $1,200 in advance from a customer for computer supplies to be delivered in August, 2020.
Adjusting entry transactions:
1) Computer supplies sold but not yet bill to customers and uncollected at July 31 were $1,500.
2) Depreciation on truck for the month of July was $200.
3) One-twelfth (1/12) of the insurance expired. (for the month of July)
4) An inventory count shows $2,000 of computer supplies on hand at July 31.
5) Accrued but unpaid employee salaries for the month of July 2020 were $600.
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