ACCT $211$ Spring $2024$

INTEGRATED LEARNING PROJECT $2$ INSTRUCTIONS VINE

& BRANCHES $$ SUNFLOWER DESIGNS

Important: This assignment should be completed alone. Students should treat this assignment

similar to the requirements of an in$-$class open$-$book exam. That is$,$ the only resources allowed are

the textbook and the professor.

USE THE TEMPLATE PROVIDED.

$1.$ CREATE JOURNAL ENTRIES FOR THE February $2023$ TRANSACTIONS BELOW FOR SUNFLOWER

DESIGNS:

a$.$ On February $1,$ $$300$ of office supplies were purchased on credit; the terms of the invoice were

net $30.$ All of the supplies were used during the month of February $($hint: expense

immediately$).$

b$.$ On February $1,$ a computer laptop was purchased on credit totaling $$1,475.$ The estimated

useful life of the computer is three $(3)$ years and is expected to have no salvage value. The

invoice terms were $2/10,$ net $30.$

c$.$ On February $2,$ a $24-$month liability insurance policy was purchased to cover Sunflower

Designs. The full cost of the policy, $$3,500,$ was paid in cash on the same date.

d$.$ On February $4,$ payroll checks were issued for the wages payable balance.

e$.$ On February $5,$ Sunflower Designs purchased $$1,450$ worth of inventory items for resale. These

items were purchased on credit and the invoice term is $2/10,$ net $30.$

f$.$ On February $9,$ a check was issued to pay for the inventory purchased on February $5.$

g$.$ On February $10,$ Sunflower Designs paid for the office supplies purchased on credit on

February $1.$

h$.$ On February $12,$ Sunflower Designs completed and delivered an interior design layout to a

customer for $$8,700.$ The customer had paid for the services in advance in a previous month,

and Sunflower Designs had appropriately recorded the deposit.

i$.$ On February $14,$ Sunflower Designs completed, delivered, and billed an interior design layout

for $$12,141$ to a new customer. The terms of the invoice were $2/10,$ net $30.$

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j$.$ On February $14,$ Sunflower Designs paid $$1,375$ in wages to a temporary employee in cash. On

the same date, the company remitted payroll taxes of $$370,$ previously accrued, to the

appropriate government entities.

k$.$ On February $18,$ Sunflower Designs received a refund of $$75$ from their office supply vendor

for items that were returned on the February $1$ purchase.

l$.$ On February $20,$ a customer paid the balance due for an interior design layout. The invoice for

these services was sent to the customer on January $22,2022.$ The contract price was $$13,700.$

m$.$ On February $24,$ Sunflower Designs sold a side table from inventory for $$950.$ The inventory

cost for this item was $$610.$ The customer paid cash for this purchase.

n$.$ On February $26,$ $$1,775$ worth of inventory was returned to supplier because of defects. The

inventory had been purchased on account in January and had not been paid for.

o$.$ On February $28,$ the customer delivered a check for one$-$half of the interior design invoice

delivered on February $14.$

$2.$ CREATE THE FEBRUARY $28,2023$ UNADJUSTED TRIAL BALANCE

$3.$ CREATE ADJUSTING JOURNAL ENTRIES FOR FEBRUARY $28,2023$

p$.$ Record the depreciation for the laptop purchased on February $1.$

q$.$ Record the February $2023$ depreciation for all computers & software owned before the

February $1$ purchase. These items are being depreciated over $3$ years using the straight$-$line

method with no salvage value.

r$.$ Record the February $2023$ depreciation for the furniture & fixtures. These items are being

depreciated over $7$ years using the straight$-$line method with no salvage value.

s$.$ Record the adjusting entry for February$$s rent. Sunflower Designs paid $$9,000$ in advance for

$6$ months$$ rent on December $1,2022.$ All previous months$$ adjusting entries were made as

required.

t$.$ Record the adjusting entry for the consumption of prepaid insurance for the month of

February. The preexisting policy has $36-$months remaining as of February $1,$ and recall that the

new policy provides coverage for $24-$months. The previous months$$ adjusting entries were

made as required.

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u$.$ Record the amount due to employees for time worked during February, but not paid. The

amount earned by the employees was $$3,050.$ The payroll taxes should be accrued at $20\%$ of

the wages and the entry should be made, payment for these taxes will occur in March.

$4.$ CREATE THE ADJUSTED TRIAL BALANCE.

$5.$ CREATE THE FEBRUARY $28,2023$ INCOME STATEMENT.

The amount for each account must be linked from the ending balances in the Trial Balance.

All sub$-$totals and totals must be accurately calculated using Excel formulas.

$6.$ CREATE THE FEBRUARY $28,2023$ BALANCE SHEET.

The amount for each account must be linked from the ending balances in the Trial Balance.

All sub$-$totals and totals must be accurately calculated using Excel formulas.