ACCT 211 - Fall 2020 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. 1. CREATE JOURNAL ENTRIES FOR THE November 2019 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS: a. On November 1, $350 of office supplies was purchased on credit; the terms of the invoice were net 30. All of the supplies were used during the month of November. b. On November 1, a computer laptopwas purchased on credit totaling $2,000. 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 November 2, a 24-month liability insurance policy was purchased to cover Sunflower Designs. The full cost of the policy, $3,600, was paid in cash on the same date. d. On November 4, payroll checks were issued for the wages payable balance. e. On November 5, Sunflower Designs purchased $4,000 worth of inventory items for resale. These items were purchased on credit and the invoice term is 2/10, net 30. f. On November 9, a check was issued to pay for the inventory purchased on November 5. g. On November 10, Sunflower Designs paid for the office supplies purchased on credit on November 1. h. On November 12, Sunflower Designs completed and delivered an interior design layout to a customer for $6,980. The customer had paid for the services in advance in a previous month, and Sunflower Designs had appropriately recorded the deposit. i. On November 14, Sunflower Designs completed, delivered, and billed an interior design layout for $18,500 to a new customer. The terms of the invoice were 2/10, net 30. j. On November 14, Sunflower Designs paid $2,850 in wages to a temporary employee. On the same date, the company remitted payroll taxes of $880, previously accrued, to the appropriate government entities. k. On November 18, Sunflower Designs received a refund of $45 from their office supply vendor for items that were returned on the November 1 purchase. I. On November 20, a customer paid the balance due for an interior design layout. The invoice for these services was sent to the customer on July 20, 2019. The contract price was $4,450. Last edit: 5/22/20 Page I of 3Note: The trial balance may include decimals, but the financial statements should not show decimals. m. On November 24, Sunflower Designs sold a side table from inventory for $990. The GRADING RUBRIC inventory cost for this item was $430. The customer paid cash for this purchase. 1. JOURNAL ENTRIES/ADJUSTING JOURNAL ENTRIES (25%) n. On November 26, $435 worth of inventory was returned to supplier because of defects. The inventory had been purchased on account in August and had not been paid for. a. All required journal entry items are present and correctly formatted. o. On November 30, the customer delivered a check for one-half of the interior design b. Journal entries are accurate and balance. invoice delivered on November 14. 2. TRIAL BALANCE/ADJUSTMENTS/ADJUSTED TRIAL BALANCE (25%) 2. CREATE THE NOVEMBER 30, 2019 UNADJUSTED TRIAL BALANCE a. All journal entries are properly reflected on the trial balance. 3. CREATE ADJUSTING JOURNAL ENTRIES FOR NOVEMBER 30, 2019: b. All closing entries are properly reflected in the adjustments. p. Record the depreciation for the laptop purchased on November 1. c. The adjusted trial balance reflects the entries from the trial balance and the adjustments. q. Record the November 2019 depreciation for all computers & software owned before the November 1 purchase. These items are being depreciated over 3 years using the straight- d. A formula is used to determine all of the ending debit/credit balances. line method with no salvage value. e. The debits and credits are balanced for each of the 3 sections. r. Record the November 2019 depreciation for the furniture & fixtures. These items are being depreciated over 7 years using the straight-line method with no salvage value. 3. INCOME STATEMENT (25%) s. Record the adjusting entry for November's rent. Sunflower Designs paid $4,800 in advance a. All totals are linked from the ending balance amounts on the Trial Balance. for 6 months' rent on September 1, 2019. All previous months' adjusting entries were made as required. b. All sub-totals and totals are accurately calculated (using Excel formulas). t. Record the adjusting entry for the consumption of prepaid insurance for the month of c. Ensure that $ signs are used correctly. November. The preexisting policy has 41-months remaining as of November 1, and recall that the new policy provides coverage for 24-months. The previous months' adjusting entries d. Ensure that statement heading is correct. were made as required. 4. BALANCE SHEET (25%) u. Record the amount due to employees for time worked during November, but not paid. The a. All totals are linked from the ending balance amounts on the Trial Balance. amount earned by the employees was $5,100. The payroll taxes should be accrued at 20% of the wages and the entry should be made, payment for these taxes will occur in December. b. All sub-totals and totals are accurately calculated (using Excel formulas). 4. CREATE THE ADJUSTED TRIAL BALANCE. C. Ensure that $ signs are used correctly. 5. CREATE THE NOVEMBER 30, 2019 INCOME STATEMENT. d. Ensure that statement heading is correct. 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 NOVEMBER 30, 2019 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. Last edit: 5/22/20 Page 2 of 3 Last edit: 5/22/20 Page 3 of 3Date Account Debit Credit This example is 11/1/19 Cash 5,000 for Format & Accounts Receivable 5,000 content only To record customer payment on account a. b. C. d.November 1, 2019 Beginning Transactions (from journal November 30, 2019 Unadjusted Adjusting Journal Entries (Entries Balances Entries a. through o. Trial Balance p. through u.] Adjusted/Ending Trial Balance Acct # Devoription Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit 1000 Cash 91,457 00 1010 Accounts Receivable 18,800.00 1020 Inventory 9.278.00 1030 Prepaid Insurance 7 43 6 31 1040 Prepaid Rent 700 00 1100 Building 1110 Computers & Software 6,597 00 1115 Accumulated Dep Comp 583 68 1120 Furniture & Fixtures 5,775.00 1125 Accumulated Dep F&F 779.42 1130 Land 1140 Machinery & Equipment 1150 Accumulated Dep MRE 2000 Accounts Payable 3,175.00 2010 Payroll Tax Payable 880.00 2015 Wages Payable 4,400.00 2020 Sales Tax Payable 250.00 2030 Unearned Revenue 2040 Line of Credit 2050 Notes Payable 3000 Peters, J., Capital 1,000 00 3010 Peters, M., Capital 1,00000 3050 Retained Earnings 127,975 21 5000 Designing Revenue 5010 Furnishing Sales 5020 Cost of Goods Sold 6000 Vendor Compensation 6010 Contract Labor Experese 6020 Materials Experese 6030 Supplies Expense 6040 Wages Expense 6050 Depredation Expense 6060 Insurance Experie 6070 Office Rent Experie 6080 Office Supplies Experme 6090 Payroll Tax Expense 6100 Postage Experie 6110 Small Tools Experge 140 043 31 140 043 31 0.00ACCT 211 ILP 2 Template - Fall 2020-1 Q . Search Sheet "+ Share Home Insert Draw Page Layout Formulas Data Review View A1 X V fx K L M N O P Q A B C D E F G H LD 00 10 11 12 13 14 15 16 17 18 19 20 22 23 24 25 26 27 28 Journal Entries Trial Balance Income Statement Balance Sheet + + 140%ACCT 211 ILP 2 Template - Fall 2020-1 Q . Search Sheet "+ Share Home Insert Draw Page Layout Formulas Data Review View A1 X V fx K L M N O P Q A B C D E F G H LD 00 10 11 12 13 14 15 16 17 18 19 20 22 23 24 25 26 27 28 Journal Entries Trial Balance Income Statement Balance Sheet + + 140%