Answers to cybertext project. Fill in the blanks. Lengthy project. General ledger, unadjusted trail balance, statement of cash flows. adjusted trial balance, income statement. Need to finish by 11:00 PM Central time or 12:00 midnight EST

Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective Introduction Michael, when you are ready to have your work graded you will upload your file ML9200.xls or ML9200.xlsx, to the same screen that the project was downloaded from: www.cybertext.com, The Book List, Building Blocks of Accounting .. A Financial Perspective Enter password, Upload Your Excel File. Keep two copies of your spreadsheet in two separate places in case one does not work You may find it easier to work on this project if you print a hard copy of all the pages NOTE: If there are any questions about the project e-mail friedman@cybertext.com or call 305.284.6296 Your grade will be based upon answers entered into the shaded boxes F1925 160418 Elf Village Production s 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective Page 1 FAQ FAQ 01 My file used to upload, why is it not uploading? Answer: Sometimes we unknowingly add items to a workbook that inhibits the upload process. The conversion to an earlier version and then back to the current version somehow cleans the file and then the file uploads without problem. If the problem continue simple send your file as an attachment with your username and password... friedman@cybertext.com Windows Operating System Select File Select Save As Select Save As Type: Select Excel Binary Workbook (*.xlsb) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select File Close File Open and open the .xlsb file Save As Save As Type: Excel Workbook (*.xlsx) Save Upload the file at cybertext.com Apple Operating System Select File Select Save As Select Format: Select Excel Binary Workbook (*.xlsb) Select Save Select Select Select Select Select Select File Close File Open and open the .xlsb file Save As Format: Excel Workbook (*.xlsx) Save Upload the file at cybertext.com MF1234.xlsx Elf Village Production s 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective Page 2 FAQ FAQ 02 When I try to enter information in the General Journal why does an error appears indicating that the cell protected? Answer: The computer program is designed to save you time. Instead of requiring you to enter the description four times the program automatically copies the description when you enter a new account number. This process requires that the data entry is limited to those cells which contain unique information. The cells that you can enter data into are the yellow filled cells. FAQ 03 In the feedback section, what does it mean when I have points under reverse? Answer: If you pay a telephone expense of $100.00 Telephone Expense 100 Cash 100 If you debit cash and credit telephone expense you have reversed the whole entry. Cash 100 Telephone Expense 100 If you debit cash and credit anything else you have reversed part of the entry. Cash 100 Rent Expense 100 Elf Village Production s 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective FAQ FAQ 04 How does my instructor get my grade? Answer: Every time you upload your grade is recorded in a table. Your instructor can look at the table whenever they want to, although only the last grade counts. Keep a hard copy of your last upload for documentation. Page 3 Building Blocks of Accounting -- A Financial Perspective The instructions start on row 28 of this page. VERSION 1925 Elf Village Productions FIRST Michael LAST Lucka SS 9200 50 Sheet File ML9200 DATE 4/26/2016 40909 1,577 Legal Pad Building Blocks of Accounting .. A Financial Perspective Welcome Welcome to the world's first ePractice case, an individualized, internet generated and and graded case study that focuses on the analytically portion of the accounting cycle. Step 1 The Chart of Accounts includes all of the accounts that you can use to solve your case. You may want to print the chart of accounts and use it as an easy reference guide. Step 2 Journalizing the Transactions Using your unique transactions record the corresponding general journal entry, rounding to two decimal places, =Round(value,2) Step 3 Posting Post each of the journal entries to the General Ledger. Step 4 Prepare the Unadjusted Trial Balance. ... Make sure your work is correct by uploading to cybertext. Step 5 Record your Adjusting Journal Entries, Post to the general ledger and prepare the Adjusted Trial Balance as of December 31st. Step 6 Using the Adjusted Trial Balance as of December 31st as a reference, prepare the Income Statement, Statement of Stockholder's Equity, Balance Sheet and Statement of Cash Flows. Page 1 Step 7 Record the closing entries to Retained Earnings in the general journal and post to the general ledger. Step 8 Prepare the Post Closing Trial Balance Step 9 Complete the Ratio Analysis Step 10 Upload the File. Whenever you want to have cybertext.com grade your work submit it to them on the bottom of the screen that you downloaded the file. If you have a problem uploading see FAQ 01. Step 11 You will be graded on the Journal Entries and the four financial statement. The case will be computer graded, therefore make sure all numbers are in the appropriate cells. The computer will evaluate your transactions when grading your financial statements. Note: Save and make backup copies regularly. Error # Elf Village Productions 50 Sheet Legal Pad Message 1 Debit And Credit On Same Line 2 Debit Before Credit 4 8 Number 1110 1120 1121 1130 1140 1150 1160 1211 1212 1311 1312 2101 2102 2103 2105 2106 2202 2210 2212 3100 3120 3200 3300 4100 5010 5020 5030 5040 5080 5090 5100 5110 5120 5140 5150 5300 5301 Name Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Prepaid Rent Office Supplies Inventory Office Equipment Accum. Depr.-Office Equip. Computer Equipment Accum. Depr.-Computer Equip. Accounts Payable Unearned Revenue Interest Payable Salaries Payable Income Taxes Payable Notes Payable Bond Payable Premium on Bond Payable Capital Stock Paid in Capital in Excess of Par Retained Earnings Dividends Sales Revenue Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Bad Debt Expense Telephone Expense Income Tax Expense Cost of Goods Sold Error Normal Balance Debit Debit Credit Debit Debit Debit Debit Debit Credit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Debit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Need An Account Number Round To Two Decimal Places 16 Need a Description 32 Need a Date 64 Use an account number once 128 256 512 1024 A Byte of Accounting, Inc. Post Closing Trial Balance As of December 31, 2015 Account Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equipment 1212 Accum. Depr.-Office Equip. 1311 Computer Equipment 1312 Accum. Depr.-Computer Equip. 2101 Accounts Payable 2105 Salaries Payable 2106 Income Taxes Payable 3100 Capital Stock 3120 Paid in Capital in Excess of Par 3200 Retained Earnings Total Debit 33,650.00 30,000.00 Credit 1,500.00 2,400.00 900.00 67,100.00 6,400.00 20,500.00 154,550.00 4,100.00 47,330.00 820.00 6,000.00 55,200.00 9,200.00 24,000.00 154,550.00 Without cash 120,900.00 154,550.00 A Byte of Accounting, Inc. Trial Balance As of November 30, 2016 Account Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1160 Inventory 1211 Office Equipment 1212 Accum. Depr.-Office Equip. 1311 Computer Equipment 1312 Accum. Depr.-Computer Equip. 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2202 Notes Payable 3100 Capital Stock 3120 Paid in Capital in Excess of Par 3200 Retained Earnings 3300 Dividends 4100 Sales Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5140 Telephone Expense 5150 Income Tax Expense 5300 Cost of Goods Sold Total ` Balance without cash Unadjusted Trial Balance Debit Credit 55,775.00 26,000.00 $ 1,500.00 28,800.00 2,700.00 67,100.00 6,400.00 20,500.00 4,100.00 3,665.00 55,200.00 9,200.00 24,000.00 420,000.00 90,200.00 3,960.00 13,640.00 5,390.00 210,000.00 524,065.00 524,065.00 $ 468,290.00 $ 524,065.00 0.00 55,775.00 26,000.00 (1,500.00) 28,800.00 2,700.00 67,100.00 (6,400.00) 20,500.00 (4,100.00) (3,665.00) (55,200.00) (9,200.00) (24,000.00) (420,000.00) 90,200.00 3,960.00 13,640.00 5,390.00 210,000.00 55,775.00 26,000.00 1,500.00 28,800.00 2,700.00 67,100.00 6,400.00 20,500.00 4,100.00 3,665.00 55,200.00 9,200.00 24,000.00 420,000.00 90,200.00 3,960.00 13,640.00 5,390.00 - Michael Lucka Elf Village Productions ML9200 50 Sheet Legal Pad Byte of Accounting The Byte of Accounting Corporation was started by Lauryn on January 1st of last year and she was the only stockholder. They sell turn-key computer systems to midsize businesses. They do not physically inventory any hardware as everything that clients want are drop shipped directly from the suppliers to the client's location. Upon delivery of the hardware Byte is notified and Byte's employees install, modify and test the new items. Description of transaction 01. December 1: Michael Lucka made an investment in Byte of Accounting, Inc., by purchasing 2,800 shares of its common stock paying $78,400.00 in cash. The par value of the common stock was $24.00 per share. 02. December 3: Purchased a Ricoh Color copier for $4,800.00. The invoice number was 61298. We paid 10% and signed a 3 year note for the remaining balance. Interest at a rate of 6% a year will be paid semiannually. 03. December 3: Check # 6001 for $2,400.00 was paid for rent of the office space for December. Rent is journalized to the prepaid rent account. 04. December 3: In response to requests from our customers we have decided to purchase and install Super Toners at our clients locations. We received 18 Super Toners for resale to our customers at a cost of $25.00 per toner. The Invoice number was 7249, and we will pay them within 30 days. 05. December 10: Sold 13 Super toners to a customer on account for $57.00 each. The Sales order number was 12100, record the Sales Revenue. 06. December 10: Sold 13 Super toners to a customer on account for $57.00 each. The Sales order number was 12100, record the Cost of Goods Sold, using FIFO. 07. December 11: Check # 6002 was used to pay salaries of $2,050.00 to equipment operators. Ignore payroll taxes. 08. December 14: Check # 6003 was used to purchase a one-year insurance policy covering its computer equipment for $6,600.00 from Seth's Insurance. The effective date of the policy was December 16 and the invoice number was 2387. Michael Lucka Elf Village Productions ML9200 50 Sheet Legal Pad Byte of Accounting 09. December 15: Lauryn paid $2,676.00 for airline tickets to send the kids to Grandma Ellen's for the holiday. 10. December 16: Received 6 Super Toners for resale to our customers. The cost was $28.00 per toner. The Invoice number was 7359, and we will pay them within 30 days. 11. December 17: We were informed that Mr. Madoff who has an account with us will never pay the $674.00 he owes us. Record the transaction to write off Mr. Madoff's accounts receivable account using the allowance method. 12. December 17: Received invoice number 26354 in the amount of $750.00 from the local newspaper for advertising. 13. December 18: Check # 6004 was used to pay Accounts Payable in the amount of $620.00 14. December 19: Sold 6 Super toners to a customer on account for $57.00 each. The Sales order number was 12100, record the Sales Revenue. 15. December 19: Sold 6 Super toners to a customer on account for $57.00 each. The Sales order number was 12100, record the Cost of Goods Sold, using FIFO. 16. December 21: Record the cost of computers for various customers on account, $6,400.00. 17. December 21: Billed various miscellaneous local customers $12,800.00 for computers that cost us $6,400.00, record the Sales Revenue. 18. December 21: Billed various miscellaneous local customers $12,800.00 for computers that cost us $6,400.00, record the Cost of Goods Sold. 19. December 22: Check # 6005 was used to pay salaries of $2,050.00 to equipment operators. Ignore payroll taxes. 20. December 22: Received a bill for $1,315.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254. 21. December 22: Check # 6006 was used to pay the advertising bill that was previously received and recorded from the local newspaper for advertising, invoice number 26354. Michael Lucka Elf Village Productions ML9200 50 Sheet Legal Pad Byte of Accounting 22. December 22: Received 13 Super Toners for resale to our customers. The cost was $30.00 per toner. The Invoice number was 7988, and we will pay them within 30 days. 23. December 23: Cash from customers in the amount of $20,775.00 was received on billings. 24. December 23: Record the cost of computers for various customers on account, $7,650.00. 25. December 28: Billed various miscellaneous local customers $15,300.00 for computers that cost us $7,650.00, record the Sales Revenue. 26. December 28: Billed various miscellaneous local customers $15,300.00 for computers that cost us $7,650.00, record the Cost of Goods Sold. 27. December 28: Paid the bill that was previously received and recorded from Computer Parts and Repairs Co with Check # 6007 . The invoice number was 43254. 28. December 29: Cash from customers in the amount of $14,125.00 was received on billings. 29. December 29: Received a bill for the amount of $480.00 from AT&T for the telephone. The invoice number was 784537. 30. December 30: Check # 6008 was used to pay salaries of $2,050.00 to equipment operators. Ignore payroll taxes. 31. December 30: Check # 6009 was used to pay was used to pay for a cash dividend of $.40 per share to Lauryn, a shareholder of Byte. 32. December 30: Check # was used to pay was used to pay for a cash dividend of $.40 per share to Michael Lucka, a shareholder of Byte. 33. December 30: Received a $8,215.00 check from Lucka Corporation for merchandise ordered which will be delived January 16th. Please note: The bookkeeper that we had before you arrived was not very good. He never created a Trial Balance and after he left we realized that he neglected to record the issuances of the bond issued on January 1 of this year and the recording of the interest payment on June 30. Since we do not make entries into "closed" periods record the entries as of December 31st. Michael Lucka Elf Village Productions ML9200 50 Sheet Legal Pad Byte of Accounting ` 34. December 31: On January 1, Byte received $118,182.90 when they issued a $110,000.00, 7%, 10 year bond. Interest is to be paid semiannually on June 30 and December 31. The market rate was 6%. This entry was never recorded. 35. December 31: Please record the timely interest payment for the bond using the straight line method that was made on June 30th, with check # 5367. This entry was never recorded.. 36. December 31: Please record the timely interest payment for the bond using the straight line method that was made on December 31st, with check # 6010. A. Post your journal entries to the general ledger and prepare the Unadjusted Trial Balance as of December 31st. B. Make sure your work is correct by uploading to Cybertext. Michael Lucka Elf Village Productions ML9200 50 Sheet Legal Pad Byte of Accounting Adjusting Entries - Record the following adjusting entries in the general journal. Round to two decimal places, =Round(number or formula,2). 37. The monthly rent payment is $2,400.00. Expense the amount associated with twelve month's rent. 38. A physical inventory showed that only $782.00 worth of general office supplies remained on hand as of December 31. 39. The interest on the note for the Ricoh Color copier will be paid every six months. Record the December accrued interest on the note payable for the Ricoh purchase on December 1st. 40. Record a journal entry to reflect that one half month's insurance has expired. 41. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $6,250.00 for computers that cost $3,125.00, record the cost of the computers on account. 42. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $6,250.00 for computers that cost $3,125.00, record the Sales Revenue from the computers. 43. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $6,250.00 for computers that cost $3,125.00, record the Cost of Goods Sold of the computers. 44. 45. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The computer equipment was purchased last January for $20,500.00 and it has an estimated useful life of 5.0 years with no salvage value. Calculate the depreciation for one year using the straight-line method of depreciation. The Ricoh Color copier, part of the office equipment, is estimated to be able to make 480,000 copies and have a salvage value of $500.00. During December 8,500 copies were made. Calculate the depreciation for one year using the activity based method of depreciation. Michael Lucka Elf Village Productions ML9200 50 Sheet Legal Pad Byte of Accounting 46. The remaining office equipment, $67,100.00, was purchased last January and has an estimated useful life of 10.0 years with a salvage value of $3,100.00. Calculate the depreciation for one year using the straight-line method of depreciation. 47. A review of the payroll records show that unpaid salaries in the amount of $1,230.00 are owed by Byte for three days, December 28 - 31. Ignore payroll taxes. 48. Our CPA has informed us to estimate that 5.00% of the outstanding Accounts Receivable will be uncollectable. Record the bad debt expense using the allowance method. 49. Income taxes are to be computed at the rate of 25 percent of net income before taxes. [IMPORTANT NOTE: Since the income taxes are a percent of the net income you will want to prepare the Income Statements through the Net Income Before Tax line. A. Post your adjusting journal entries to the general ledger and prepare the Adjusted Trial Balance as of December 31st. B. Using the Adjusted Trial Balance as of December 31st as a reference, prepare the Income Statement, Statement of Stockholder's Equity, Balance Sheet and Statement of Cash Flows. Michael Lucka ML9200 Elf Village Productions 50 Sheet Legal Pad Byte of Accounting Closing Entries Record the closing entries to Retained Earnings in the general journal and post to the general ledger. 50. Close the revenue accounts. 51. Close the expense accounts. 52. Close the dividend account. D Prepare the Post Closing Trial Balance E Complete the Ratio Analysis Current Ratio Receivable Turnover Average Collection Period Inventory Turnover Average Days in Inventory Gross Profit Rate Profit Margin Earnings per Share (EPS) Note: You can only enter data into the yellow filled Notcells. in Balance TransactDate Account A Byte of Accounting, Inc. General Journal by $1,315.00 Name Description Debit Credit 01 01 01 Dec 01 Dec 01 Dec 01 1110 Cash Common Stock 3100 Capital Stock Common Stock 3120 Paid in Capital in ExcessCommon Stock 02 02 02 Dec 03 Dec 03 Dec 03 1211 Office Equipment 2202 Notes Payable 1110 Cash Purchase Copier Purchase Copier Purchase Copier 4,800.00 03 03 Dec 03 Dec 03 1140 Prepaid Rent 1110 Cash Prepaid Rent Prepaid Rent 2,400.00 04 04 Dec 03 Dec 03 1160 Inventory 2101 Accounts Payable Inventory Inventory 450.00 05 05 Dec 10 Dec 10 1120 Accounts Receivable 4100 Sales Revenue Sales Revenue Sales Revenue 741.00 06 06 Dec 10 Dec 10 5300 Cost of Goods Sold 1160 Inventory Sold Toner Sold Toner 325.00 07 07 Dec 11 Dec 11 5020 Salary Expense 1110 Cash Paid Salaries Paid Salaries 2,050.00 08 08 Dec 14 Dec 14 1130 Prepaid Insurance 1110 Cash Insurance Policy Insurance Policy 6,600.00 09 Dec 15 10 10 Dec 16 Dec 16 1160 Inventory 2101 Accounts Payable 11 11 Dec 17 Dec 17 1121 Allowance for Doubtful Deliquent Account 1120 Accounts Receivable Deliquent Account 674.00 12 12 Dec 17 Dec 17 5030 Advertising Expense 2101 Accounts Payable Advertising expense Advertising expense 750.00 13 13 Dec 18 Dec 18 2101 Accounts Payable 1110 Cash Accounts Payable Accounts Payable 620.00 14 14 Dec 19 Dec 19 4100 Sales Revenue 1120 Accounts Receivable Sales Revenue Debit Before Credit 342.00 342.00 15 15 Dec 19 Dec 19 5300 Cost of Goods Sold 1120 Accounts Receivable Sold Toner Sold Toner 342.00 16 16 Dec 21 Dec 21 1160 Inventory 1120 Accounts Receivable Computers Computers 6,400.00 17 17 Dec 21 Dec 21 4100 Sales Revenue 1120 Accounts Receivable Sales Revenue Debit Before Credit 12,800.00 6,400.00 18 18 Dec 21 Dec 21 5300 Cost of Goods Sold 1120 Accounts Receivable Inventory Inventory 12,800.00 19 19 Dec 22 Dec 22 2105 Salaries Payable 1110 Cash salaries payable salaries payable 20 Dec 22 2101 Accounts Payable Computer Repairs Total Balance 78,400.00 67,200.00 11,200.00 78400 (67200) (11200) 0 0 0 0 0 4,320.00 480.00 4800 (4320) (480) 0 0 0 0 0 2400 (2400) 0 0 0 0 0 0 450 (450) 0 0 0 0 0 0 741 (741) 0 0 0 0 0 0 325 (325) 0 0 0 0 0 0 2050 (2050) 0 0 0 0 0 0 6600 (6600) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 168 (168) 0 0 0 0 0 0 674 (674) 0 0 0 0 0 0 750 (750) 0 0 0 0 0 0 620 (620) 0 0 0 0 0 0 0 0 0 0 0 3 0 0 342 (342) 0 0 0 0 0 0 6400 (6400) 0 0 0 0 0 0 0 0 0 0 0 3 0 0 12800 (12800) 0 0 0 0 0 0 2050 (2050) 0 0 0 0 0 0 1315 0 0 0 0 0 0 0 21 0 0 0 0 0 0 0 0 22 0 0 0 0 0 0 0 0 23 0 0 0 0 0 0 0 0 24 0 0 0 0 0 0 0 0 25 0 0 0 0 0 0 0 0 26 0 0 0 0 0 0 0 0 27 0 0 0 0 0 0 0 0 28 0 0 0 0 0 0 0 0 2,400.00 450.00 741.00 325.00 2,050.00 6,600.00 No Entry Purchased Toner Purchased Toner 168.00 168.00 674.00 750.00 620.00 342.00 342.00 342.00 6,400.00 12,800.00 6,400.00 12,800.00 2,050.00 2,050.00 # 20 Not in Balance by $1,315.00 1,315.00 1110 1120 1121 1130 1140 1150 1160 1211 1212 1311 1312 2101 2102 2103 2105 2106 2202 2210 2212 3100 3120 3200 3300 4100 5010 5020 5030 5040 5080 5090 5100 5110 5120 5140 5150 5300 1 2 1 2 Note: You can only enter data into the yellow filled Notcells. in Balance TransactDate 29 Account A Byte of Accounting, Inc. General Journal by $1,315.00 Name Description Debit Credit 0 0 0 0 Total Balance 0 0 0 0 30 0 0 0 0 0 0 0 0 31 0 0 0 0 0 0 0 0 32 0 0 0 0 0 0 0 0 33 0 0 0 0 0 0 0 0 34 0 0 0 0 0 0 0 0 35 0 0 0 0 0 0 0 0 36 0 0 0 0 0 0 0 0 37 0 0 0 0 0 0 0 0 38 0 0 0 0 0 0 0 0 39 0 0 0 0 0 0 0 0 40 0 0 0 0 0 0 0 0 41 0 0 0 0 0 0 0 0 42 0 0 0 0 0 0 0 0 43 0 0 0 0 0 0 0 0 44 0 0 0 0 0 0 0 0 45 0 0 0 0 0 0 0 0 46 0 0 0 0 0 0 0 0 47 0 0 0 0 0 0 0 0 48 0 0 0 0 0 0 0 0 49 0 0 0 0 0 0 0 0 50 0 0 0 0 0 0 0 0 51 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 52 0 0 0 0 0 0 0 0 General Ledger 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 1110 Cash Date Trans # 1110 Nov 30 Beg Bal Debit 55,775.00 1120 Accounts Receivable Date Trans # Debit 1120 Nov 30 Beg Bal 26,000.00 GLF Credit - Balance 55,775.00 - Balance 26,000.00 Credit 1121 Allowance for Doubtful Accounts Date Trans # Debit Credit 1121 Nov 30 Beg Bal 1,500.00 Balance 1,500.00 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 1130 Prepaid Insurance Date Trans # Debit Nov 30 Beg Bal - Credit 1140 Prepaid Rent Date Trans # Debit 1140 Nov 30 Beg Bal 28,800.00 Credit 1150 Office Supplies Date Trans # Debit 1150 Nov 30 Beg Bal 2,700.00 Credit 1160 Inventory Date Trans # Nov 30 Beg Bal Debit - Balance 0.00 - Balance 28,800.00 - Balance 2,700.00 - Balance 0.00 - Balance 67,100.00 Credit - 1211 Office Equipment Date Trans # Debit 1211 Nov 30 Beg Bal 67,100.00 Credit 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 1212 Accum. Depr.-Office Equip. Date Trans # Debit 1212 Nov 30 Beg Bal - 1311 Computer Equipment Date Trans # Debit 1311 Nov 30 Beg Bal 20,500.00 Credit 6,400.00 Balance 6,400.00 Credit Balance 20,500.00 - 1312 Accum. Depr.-Computer Equip. Date Trans # Debit Credit 1312 Nov 30 Beg Bal 4,100.00 Balance 4,100.00 2101 Accounts Payable Date Trans # Debit 2101 Nov 30 Beg Bal - Credit 3,665.00 Balance 3,665.00 Credit Balance 0.00 2102 Unearned Revenue Date Trans # Debit Nov 30 Beg Bal - - 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 2103 Interest Payable Date Trans # Debit Nov 30 Beg Bal - Credit 2105 Salaries Payable Date Trans # Debit Nov 30 Beg Bal - Credit 2106 Income Taxes Payable Date Trans # Debit Nov 30 Beg Bal - Credit 2202 Notes Payable Date Trans # Debit Nov 30 Beg Bal - Credit 2210 Bond Payable Date Trans # Debit Nov 30 Beg Bal - Credit Date 2212 Premium on Bond Payable Trans # Debit Credit - Balance 0.00 - Balance 0.00 - Balance 0.00 - Balance 0.00 - Balance 0.00 Balance 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 6 7 8 Nov 30 Beg Bal 3100 Capital Stock Date Trans # 3100 Nov 30 Beg Bal - 0.00 Credit 55,200.00 Balance 55,200.00 3120 Paid in Capital in Excess of Par Date Trans # Debit Credit 3120 Nov 30 Beg Bal 9,200.00 Balance 9,200.00 3200 Retained Earnings Date Trans # Debit 3200 Nov 30 Beg Bal - Credit 24,000.00 Balance 24,000.00 Credit Balance 0.00 3300 Dividends Date Trans # Nov 30 Beg Bal Debit - - Debit - 4100 Sales Revenue Date Trans # Debit 4100 Nov 30 Beg Bal - - Credit 420,000.00 Balance 420,000.00 9 10 11 12 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 1 2 3 4 5 5010 Rent Expense Date Trans # Debit Nov 30 Beg Bal - Credit 5020 Salary Expense Date Trans # Debit 5020 Nov 30 Beg Bal 90,200.00 Credit 5030 Advertising Expense Date Trans # Debit 5030 Nov 30 Beg Bal 3,960.00 Credit 5040 Repairs & Maint. Expense Date Trans # Debit 5040 Nov 30 Beg Bal 13,640.00 Credit 5080 Supplies Expense - Balance 0.00 - Balance 90,200.00 - Balance 3,960.00 - Balance 13,640.00 1 2 3 4 5 1 2 3 4 5 6 7 8 1 2 3 4 5 1 2 3 4 5 6 7 8 1 2 3 4 5 1 Date Trans # Nov 30 Beg Bal Debit Credit - 5090 Interest Expense Date Trans # Debit Nov 30 Beg Bal - Credit 5100 Insurance Expense Date Trans # Debit Nov 30 Beg Bal - Credit 5110 Depreciation Expense Date Trans # Debit Nov 30 Beg Bal - Credit 5120 Bad Debt Expense Date Trans # Debit Nov 30 Beg Bal - Credit 5140 Telephone Expense Date Trans # Debit 5140 Nov 30 Beg Bal 5,390.00 - Balance 0.00 - Balance 0.00 - Balance 0.00 - Balance 0.00 - Balance 0.00 - Balance 5,390.00 Credit 2 3 4 5 1 2 3 4 5 1 2 3 4 5 6 7 8 9 10 5150 Income Tax Expense Date Trans # Debit Nov 30 Beg Bal 4.00 5300 Cost of Goods Sold Date Trans # Debit 5300 Nov 30 Beg Bal 210,000.00 Credit - Balance 0.00 - Balance 210,000.00 Credit A Byte of Accounting, Inc. Unadjusted Trial Balance As of December 31, 2016 Account Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1160 Inventory 1211 Office Equipment 1212 Accum. Depr.-Office Equip. 1311 Computer Equipment 1312 Accum. Depr.-Computer Equip. 2101 Accounts Payable 2102 Unearned Revenue 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2202 Notes Payable 2210 Bond Payable 2212 Premium on Bond Payable 3100 Capital Stock 3120 Paid in Capital in Excess of Par 3200 Retained Earnings 3300 Dividends Unadjusted Trial Balance Debit Credit 4100 Sales Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5140 Telephone Expense 5150 Income Tax Expense 5300 Cost of Goods Sold Total C41 C42 C43 A Byte of Accounting, Inc. Adjusted Trial Balance As of December 31, 2016 Account Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1160 Inventory 1211 Office Equipment 1212 Accum. Depr.-Office Equip. 1311 Computer Equipment 1312 Accum. Depr.-Computer Equip. 2101 Accounts Payable 2102 Unearned Revenue 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2202 Notes Payable 2210 Bond Payable 2212 Premium on Bond Payable 3100 Capital Stock 3120 Paid in Capital in Excess of Par 3200 Retained Earnings 3300 Dividends Adjusted Trial Balance Debit Credit 4100 Sales Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5140 Telephone Expense 5150 Income Tax Expense 5300 Cost of Goods Sold Total C41 C42 C43 A Byte of Accounting, Inc. Income Statement For Year Ending December 31, 2016 4100 Revenues Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses 5010 5010 5020 5030 5040 5080 5090 5100 5110 5120 5140 Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Bad Debt Expense Telephone Expense Total Net Income Before Tax Income Tax Expense (Round to two decimal places) Net Income After Tax Round to two places A Byte of Accounting, Inc. Statement of Stockholders' Equity For Year Ending December 31, 2016 Common Stock Balance, Beginning of Period Issue of Common Stock Cash Dividends Net Income Balance, End of Period Additional Paid-inCapital Retained Earnings Total Stockholders' Equity A Byte of Accounting Balance Sheet As of December 31, 2016 d Assets Current Assets Cash Accounts Receivable Allowance for Doubtful Accounts Net Receivable 1140 Prepaid Insurance 1150 Prepaid Rent Office Supplies Inventory Total 1211 1212 Long-Term Assets Office Equipment 1311 Accum. Depr.-Office Equipment 1312 Net Office Equipment Computer Equipment 1411 Accum. Depr.-Computer Equipment 1412 Net Computer Equipment Total 1510 Total Assets 1110 1120 1130 Liabilities Current Liabilities Accounts Payable Advanced Payment 2101 Interest Payable 2102 Salaries Payable 2103 Income Taxes Payable 2105 Total 2106 Long-Term Liabilities 2202 Notes Payable 2210 Bond Payable 2212 Premium on Bond Payable Net Bond Payable Total Total Liabilities Stockholder's Equity 3100 3200 Paid-in Capital Capital Stock Additional Paid-in-Capital Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity A Byte of Accounting Statement of Cash Flows - Indirect Method For Year Ending December 31, 2016 Cash Flow from Operating Activities Net Income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expenses Change in accounts receivable Change in prepaid Insurance Change in prepaid rent Change in office supplies Change in inventory Change in payables Change in income tax payable Net cash flows from operations Cash Flows from Investing Activities Purchase of equipment Net cash flows from investing activities Cash Flows from Financing Activities Issuance of common stock Proceeds from issuance of bonds payable Payment of cash dividends Net cash flows from financing activities Net increase (decrease) in cash Cash at the beginning of the period Cash at the end of the period Noncash Activities Purchased equipment by issuing note payable A Byte of Accounting, Inc. Post Closing Trial Balance As of December 31, 2016 Account Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1160 Inventory 1211 Office Equipment 1212 Accum. Depr.-Office Equip. 1311 Computer Equipment 1312 Accum. Depr.-Computer Equip. 2101 Accounts Payable 2102 Unearned Revenue 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2202 Notes Payable 2210 Bond Payable 2212 Premium on Bond Payable 3100 Capital Stock 3120 Paid in Capital in Excess of Par 3200 Retained Earnings Total Adjusting Entries Debit Credit A Byte of Accounting Ratios For Year Ending December 31, 2016 Please round to two places Current ratio = Receivable Turnover ratio = Average collection period = Inventory turnover ratio = Average days in inventory = Gross profit ratio = Profit Margin = Earnings per share = 365 days Average Account Receivables Average Inventory Average Shares of Common Stock Outstanding Average total Assets Cost of Goods Sold Current Assets Current Liabilities Gross profit Gross profit Inventory Turnover Ratio Net Credit Sales Net Income Net Sales Receivable Turnover Ratio Receivable Turnover Ratio Stockholders' Equity Total Liabilities