Can anyone help with this accounting project?

Accounting 301 Project Due December 5, 2013 Zippy Lines, Inc. is a small company based in Colorado. Zippy Lines, Inc. sells specialty outdoor sporting goods and equipment used by mountain climbers. Zippy Lines sells its goods to outdoor adventure firms and holds instructional classes. It is in its second year of operation. Kirk Krazen, the accountant for the company was hurt in a climbing accident and the company has requested that you prepare the monthly close for January 2013, including preparation of the monthly financial statements. The company's fiscal year coincides with the calendar year. The monthly financial statements should include a balance sheet, income statement and cash flow statement for the month. The company's president, Al Titude, has provided you with access to all of the company's books and records and you have gathered the information that is discussed below. The company has one bank account in which all of its operating expenses are paid and all of its cash receipts are deposited. The company's general ledger records the cash disbursement transactions, and reflects the cash receipts. Exhibit 1 is a list of accounts and balances as of January 31, 2013 taken from the general ledger. Exhibit 2 is a list of all of the transactions shown on the general ledger account for cash (Account 1010001). A copy of the company's bank statement for January is provided in Exhibit 3. The company maintains a subsidiary ledger for accounts receivable. All of the company's accounts receivable balances have been updated to reflect the cash receipt, and a journal entry to the cash account and the accounts receivable has been made. There are 20 outdoor adventure firms that have accounts with Zippy with terms N30, 10 of these firms had an open balance as of January. A copy of the accounts receivable subsidiary ledger is provided in Exhibit 4. The allowance for doubtful accounts was $1,500 as of December 31, 2012. The allowance is based on estimated default rates and set at 1% of balances currently due and balances past due less than 30 days, 2% on balances past due 30 to 60 days, 15% on balances past due over 60 but less than 90 days, and 30% of balances past due more than 90 days. The company uses lower of cost or market to value its inventory. The company uses a periodic inventory system and applies FIFO cost flow assumption. Exhibit 5 contains information on its inventory. The monthly adjusting entries have not been prepared. The following information has been gathered to support the closing process. The staff has done a physical count of inventory and supplies and found the following balances as of January 31, 2013: - Supplies - $17,250 - Inventory - items shown in Exhibit 5 (valued at Lower of Cost or Market, FIFO) (see Exhibit 5) Below are other items to consider for adjusting entries: - The company has a note with TP Bank for $250,000 that is due on July 1, 2016. The note has an interest rate of 10%, which is payable on June 30th of each year. - Employees earn $1,024 per day and have received payment through January 28th, so they are owed 3 days wages. There was no salary accrued as of December 31, 2012. - The payment for health and all other benefits is $6,125 every two months. In December, the company issued the payment and it cleared in January. No payment was made in January. - The prepaid insurance balance is for an annual property and liability policy with an annual cost of $36,000, which was purchased on July 1, 2012 and expires on June 30, 2013. The company visited Big Corporation on January 31st and held an instructional course for a team-building activity for Big Corporation. Zippy charges $10,000 for the class, but has not been paid, prepared the invoice or recorded the revenue. The accrued expense of $2,125 on December 31, 2012 represented unpaid consulting bills. The company paid the consultant $1,575 on January 14th and has an estimated balance of $3,250 open as of January 31, 2013. The company uses straight-line depreciation. The depreciation periods are 20 years for the building, 10 for the equipment and 5 for office equipment. There is no salvage value for any of the property, plant and equipment assets. Requirements 1. Prepare a bank reconciliation and any journal entries. 2. Prepare a trial balances as of January 31, 2013 3. Calculate the allowance for doubtful accounts, inventory, monthly depreciation, interest, cost of goods sold etc., and prepare all necessary adjusting entries for the month of January. 4. Prepare an adjusted trial balance for the month of January. 5. Prepare the financial statements for the month of January (income statement, statement of retained earnings, balance sheet and statement of cash flow (either direct or indirect basis). EXHIBIT 1 Below is a list of accounts with their balances as of January 31, 2013 and December 31, 2012: Account Number 1000001 1000002 1000003 1000004 1000005 1000006 1010001 1010002 1010003 1010004 1010005 1010006 2000001 2000002 Account Name Cash Accounts receivable Allowance for doubtful accounts Inventory Supplies Prepaid insurance P,P & E -Store Equipment Accumulated depreciation - Store Equipment P,P & E -Office Equipment Accumulated depreciation - Office Equipment P,P & E - Building Accumulated depreciation - building Accounts payable Accrued expenses January 31, 2013 60,660 27,200 1,500 CR 33,150 21,300 18,000 178,000 17,800 CR 25,000 5,000 CR 617,500 30,875CR 34,410 CR 2,125 CR December 31, 2012 $45,125 17,500 1,500 CR 33,150 21,300 18,000 178,000 17,800 CR 25,000 5,000 CR 617,500 30,875 CR 31,525 CR 2,125 CR 2000003 2000004 Salaries payable Interest payable 0 CR 12,500 CR 0 CR 12,500 CR 2010001 Notes payable 250,000 CR 250,000 CR 3000001 3000002 3000003 3000004 4000001 5000001 5000002 5010001 5010002 5010003 5010004 5010005 5010006 5010007 5010008 5010009 5010010 5010011 5010012 Common stock Capital in excess of par Retained earnings Dividends Sales Revenue Purchases Cost of goods sold Salary expense Benefits expense Supplies expense Insurance expense Utilities expense Travel expenses Advertising expenses Interest expense Bank fees Consulting expenses Depreciation expense Bad debt expense 100,000 CR 400,000 CR 104,250 CR 0 121,000 CR 75,000 0 20,480 0 0 0 895 275 425 0 0 1,575 0 0 100,000 CR 400,000 CR 104,250 CR $0 - $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Exhibit 2 - Detail of transactions on ACCT 100001, Cash. Date Description Amount 12/31/12 1/4/13 1/4/13 1/7/13 1/11/13 1/14/13 1/14/13 1/14/13 1/21/13 1/27/13 1/28/13 1/28/13 1/28/13 Beginning Balance Cash receipts Payment for inventory Payment for salaries Payment for utilities Payment for salaries Payment for consulting Cash receipts Payment for salaries Cash receipts Payment for salaries Payment for travel Payment for advertising $61,500 $62,115 $5,120 $895 $5,120 $1,575 $26,525 $5,120 $13,275 $5,120 $275 $425 DR/C R DR DR CR CR CR CR CR DR CR DR CR CR CR Balance $45,125 $106,625 $44,510 $39,390 $38,495 $33,375 $31,800 $58,325 $53,205 $66,480 $61,360 $61,085 $60,660 DR/C R DR DR DR DR DR DR DR DR DR DR DR DR DR Note: Entries for cash receipts on accounts receivables have not been made for January. The outstanding checks as of December 31, 2012 was $6,125. There were no outstanding deposits. Exhibit 3 - Summary of Bank statement TDC Bank Denver, CO Beginning balance.........................$51,250 Deposits .........................................$61,300 Checks cleared.............................. (51,890) Bank fees....................................... (600) Ending balance.............................$60,060 Exhibit 4 - Accounts receivable subsidiary ledger Name Balance 12/31/12 Johnson Guides Adirondack Adventures Colorado Climbers Outdoor Ways Kincade Climbers Spartan Adventures Nature's Highway Billings Mountains Sky Adventures Spirit Adventures Total New Sales Balance 3/31/13 $1,200 $4,000 35,000 8,500 33,850 7,000 $2,350 $5,500 $2,000 $3,150 $650 $500 $750 $2,250 $2,000 $1,000 $17,500 12,500 $6,000 950 3,250 500 12,000 $3,000 600 500 $2,500 $6,150 $1,000 $3,200 $1,250 $2,250 $2,000 $1,000 $28,10 0 Exhibit 5 - Inventory I. Ending Counts: Item Name Units Ropes Climbing shoes Climbing Cash Receipts 100 800 100 4,350 $71,000 Replacemen t Cost 10 35 20 4,350 $61,300 Selling Price 25 60 35 Aging Schedule Due or 31-60 61-90 90 $50 $750 $2,000 $2,000 $20,40 0 Selling Costs 5 5 5 $1,000 $4,000 $2,000 Normal Profit % 30% 25% 20% $800 Hardware Helmets II. 25 40 5 Date 1/1/13 Units 50 Unit Cost 9 Total 450 100 200 200 9.5 10 10 950 2000 2000 Unit Cost 32 Total 19,200 33 34 35 33,000 6,400 35,000 Units 50 Unit Cost 18 Total 900 100 200 200 19 20 20 1,900 4,000 4,000 Unit Cost 24 Total 12,000 24 25 25 24,000 20,000 25,000 Ropes Beginning inventory Purchase Purchase Purchase End III. 600 1/11/13 1/18/13 1/25/13 1/31/13 100 Climbing Shoes Beginning inventory Purchase Purchase Purchase End Date 1/1/13 Units 600 1/11/13 1/18/13 1/25/13 1/31/13 1000 200 1000 800 IV. Climbing Hardware Date Beginning 1/1/13 inventory Purchase 1/11/13 Purchase 1/18/13 Purchase 1/25/13 End 1/31/13 V. 100 Helmets Beginning inventory Purchase Purchase Purchase End Date 1/1/13 Units 500 1/11/13 1/18/13 1/25/13 1/31/13 1,000 800 1,000 600 30%