BA212 Financial Accounting Il Capstone Project Account & Unadjusted Trial Balance data 150,000 3,500,000 30,000 30,000 100,000 1,933 140,500 Income statement data: Advertising expense Bad Debt Expense Cost of goods sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment Gain (Loss) on asset disposal Income tax expense Insurance expense Interest expense Interest revenue Miscellaneous administrative expense Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales Sales commissions Sales salaries expense Store supplies expense 21,000 30,000 7,500 14,000 50,000 170,000 10,000 5,313,000 185,000 385,000 21,000 194,300 545,000 1,580,000 4,126,000 8,450 500,000 217,650 1,700,000 50,000 40,000 Balance sheet data: Accounts payable Accounts receivable Accumulated depreciation-office buildings and equipment Accumulated depreciation-store buildings and equipment Allowance for doubtful accounts Bonds payable Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding Cash dividends - common stock Cash dividends - preferred stock Dividends Payable - common stock Dividends Payable - preferred stock Goodwill Income tax payable Interest receivable Merchandise Inventory Land Office buildings Office Equipment Paid-in capital-Treasury Stock Paid-in capital in excess of par-common stock Paid-in capital in excess of par-preferred stock Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued) 700,000 44,000 1,200 778,000 2,000,000 4,000,000 320,000 13,000 736,800 170,000 1,280,000 Premium on bonds payable Prepaid Insurance Retained earnings Store buildings Store Equipment Treasury stock Unearned Revenues 19,000 30,000 10,409,433 9,000,000 3,560,000 178,200 112,000 1/2/21 1/2/21 1/2/21 Issued 15,000 shares of $20 par common stock at $30, receiving cash. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. Issued a 180-day, 5%, $50,000 note to a customer. The note was repaid in full including interest on the due date. 3/14/21 Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding 4/1/21 5/15/21 5/17/21 7/1/21 Paid the cash dividends declared in (d). Purchased 8,000 shares of treasury common stock at $33 per share. Purchased Store equipment on account for $105,000, to be depreciated using the straight-line method over 7 years. Assume $0 Residual Value. Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. Paid the cash dividends to the preferred stockholders. 7/15/21 8/31/21 Collected the Note issue on March 14 9/10/21 9/12/21 9/19/21 11/18/21 Sold, at $38 per share, 2,600 shares of treasury common stock purchased May Issued a 60-day, 5%, $22,500 note to a customer The note issued on 9/19/21 was not collected, so the note was reclassified as Accounts Receivable, with accrued interest. Sold Office equipment for $5,000. The equipment originally cost $32,000 when it was purchased on January 1, 2017, had no residual value, and was being depreciated using the straight-line method over 5 years. Disposed of obsolete Store equipment having an original cost of $15,000. The equipment is fully depreciated. 11/30/21 12/15/21 XYZ Co. Joumal | page 1 Credit Date Description Debit XYZ Co. Joumal page 2 Date Description Debit Credit Total 12/31/21 12/31/21 12/31/21 Record the payment of semiannual interest on the bonds issued in January 2021 and the amortization of the premium for six months. The amortization is determined using the straight-line method. Record interest due on outstanding note receivable that was converted to Accounts Receivable in November. A determination whether to write off the note as uncollectible will be made in 1Q22. Record the adjustment to Unearned Revenues. Services related to Unearned Revenues of $22,000 were performed. Amortize Prepaid Insurance. The 12-month insurance policy was purchased on Septempber 1. Record Depreciation expense on Store Buildings $20,000; Office Buildings $30,000; and Office Equipment $10,000. Record Depreciation expense of the Store Equipment: Compute Depreciation expense on the store equipment purchased in July. Depreciation expense on other Store Equipment assets is $62,500. Estimated Allowance for Doubtful Accounts is computed to be 1% of current year sales. (Hint: the amount of the adjustment should be computed starting from the unadjusted balance in Allowance for Doubtful Accounts) 12/31/21 1 12/31/21 2 12/31/21 12/31/21 3 4 5 XYZ Co. Journal page 2 continued Credit 8 Date Description Debit 1 2 3 4 5 6 B 9 XYZ Co. Journal page 3 1 2 3 4 5 7 B 1 2 3 4 5 6 Total BA212 Financial Accounting Il Capstone Project Account & Unadjusted Trial Balance data 150,000 3,500,000 30,000 30,000 100,000 1,933 140,500 Income statement data: Advertising expense Bad Debt Expense Cost of goods sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment Gain (Loss) on asset disposal Income tax expense Insurance expense Interest expense Interest revenue Miscellaneous administrative expense Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales Sales commissions Sales salaries expense Store supplies expense 21,000 30,000 7,500 14,000 50,000 170,000 10,000 5,313,000 185,000 385,000 21,000 194,300 545,000 1,580,000 4,126,000 8,450 500,000 217,650 1,700,000 50,000 40,000 Balance sheet data: Accounts payable Accounts receivable Accumulated depreciation-office buildings and equipment Accumulated depreciation-store buildings and equipment Allowance for doubtful accounts Bonds payable Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding Cash dividends - common stock Cash dividends - preferred stock Dividends Payable - common stock Dividends Payable - preferred stock Goodwill Income tax payable Interest receivable Merchandise Inventory Land Office buildings Office Equipment Paid-in capital-Treasury Stock Paid-in capital in excess of par-common stock Paid-in capital in excess of par-preferred stock Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued) 700,000 44,000 1,200 778,000 2,000,000 4,000,000 320,000 13,000 736,800 170,000 1,280,000 Premium on bonds payable Prepaid Insurance Retained earnings Store buildings Store Equipment Treasury stock Unearned Revenues 19,000 30,000 10,409,433 9,000,000 3,560,000 178,200 112,000 1/2/21 1/2/21 1/2/21 Issued 15,000 shares of $20 par common stock at $30, receiving cash. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. Issued a 180-day, 5%, $50,000 note to a customer. The note was repaid in full including interest on the due date. 3/14/21 Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding 4/1/21 5/15/21 5/17/21 7/1/21 Paid the cash dividends declared in (d). Purchased 8,000 shares of treasury common stock at $33 per share. Purchased Store equipment on account for $105,000, to be depreciated using the straight-line method over 7 years. Assume $0 Residual Value. Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. Paid the cash dividends to the preferred stockholders. 7/15/21 8/31/21 Collected the Note issue on March 14 9/10/21 9/12/21 9/19/21 11/18/21 Sold, at $38 per share, 2,600 shares of treasury common stock purchased May Issued a 60-day, 5%, $22,500 note to a customer The note issued on 9/19/21 was not collected, so the note was reclassified as Accounts Receivable, with accrued interest. Sold Office equipment for $5,000. The equipment originally cost $32,000 when it was purchased on January 1, 2017, had no residual value, and was being depreciated using the straight-line method over 5 years. Disposed of obsolete Store equipment having an original cost of $15,000. The equipment is fully depreciated. 11/30/21 12/15/21 XYZ Co. Joumal | page 1 Credit Date Description Debit XYZ Co. Joumal page 2 Date Description Debit Credit Total 12/31/21 12/31/21 12/31/21 Record the payment of semiannual interest on the bonds issued in January 2021 and the amortization of the premium for six months. The amortization is determined using the straight-line method. Record interest due on outstanding note receivable that was converted to Accounts Receivable in November. A determination whether to write off the note as uncollectible will be made in 1Q22. Record the adjustment to Unearned Revenues. Services related to Unearned Revenues of $22,000 were performed. Amortize Prepaid Insurance. The 12-month insurance policy was purchased on Septempber 1. Record Depreciation expense on Store Buildings $20,000; Office Buildings $30,000; and Office Equipment $10,000. Record Depreciation expense of the Store Equipment: Compute Depreciation expense on the store equipment purchased in July. Depreciation expense on other Store Equipment assets is $62,500. Estimated Allowance for Doubtful Accounts is computed to be 1% of current year sales. (Hint: the amount of the adjustment should be computed starting from the unadjusted balance in Allowance for Doubtful Accounts) 12/31/21 1 12/31/21 2 12/31/21 12/31/21 3 4 5 XYZ Co. Journal page 2 continued Credit 8 Date Description Debit 1 2 3 4 5 6 B 9 XYZ Co. Journal page 3 1 2 3 4 5 7 B 1 2 3 4 5 6 Total