Coin Cameron Appliance Nantucket has just purchased a franchise from Con Cameron Appliance (CCA) i Cick the icon to view the additional information Following is the chait of accounts for Colin Cameron Appliance Nantucket. As a new business, all beginning balances are 50 Click the icon to view the chart of accounts Cain Cameron polance---Nantucket completed the following Wansactions during 2024, its first year of operations Click the icon to view the transaction Read the CHE ip Cost of Goods Sold Merchandise Inventory 131,000 131.000 q. Received payment in on the maturity data from Allen Contracting for the note. Prepare a compound journal entry showing the total cash received upon maunty) Date Accounts Debit Credit Etext pages Calculator Ask my instructor Clear all Check answer 3 Type here to search O . 2 2 23-7 Ja AM 11/11/2017 Moreno 11/15/21, 9-11 AM CCA is a manufacturer of kitchen appliances. CCA markets its products via retail stores that are operated as franchises. As a CCA franchisee, Colin Cameron Appliance Nantucket will receive many benefits, including having the exclusive right to sell CCA brand appliances in Nantucket CCA appliances have an excellent reputation and the CCA name and logo are readily recognized by consumers. CCA also manages national television advertising campaigns that benefit the franchisees. In exchange for these benefits, Colin Cameron Appliance Nantucket will pay an annual franchise fee to CCA based on a percentage of sales The annual franchise fee is a separate cost and in addition to the purchase of the franchise In addition to purchasing the franchise, Colin Cameron Appliance Nantucket will also purchase land with an existing building to use for its retail store, store fixtures, and office equipment. The business will purchase appliances from CCA and resell them in its store, primarily to local building contractors for installation in new homes. Received 510.000 ch National Bank and de t. Paid Su000 cash for Paid $390,000 Sollowing d. Paid $120,000 Paid $55.000 1. Paid $700 to Paid 3424 1. Purchas Estat So 1 k. 11/15/21, 9:11 AM More Info b. c. e. 1. Received $510,000 cash from owner, B. Bamerd, in exchange for capital. Opened a new checking account at Nantucket National Bank and deposited the cash received from the owner. Paid $46,000 cash for a CCA franchise, Paid $390,000 cash and issued a $250,000, 10-year, 6% notes payable for land with an existing building. The assets had the following market values: Land, $110,000; Building, $530,000. d. Paid $120,000 for store fixtures. Paid $55,000 for office equipment. f. Paid $700 for office supplies. g. Paid $4,200 for a two-year insurance policy h. Purchased appliances from CCA (merchandise inventory) on account for $400,000. Established a petty cash fund for $250. 1. Sold appliances on account to NOP Contractors for $220,000, terms n/30 (cost, $66,000). k. Sold appliances to Allen Contracting for $160,000 (cost, $53,000), receiving a 6-month, 7% note. 1. Recorded credit card sales of $55,000 (cost, $19,500), net of processor fee of 1%. m. Received payment in full from NOP Contractors. Purchased appliances from CCA on account for $630,000. Made payment on account to CCA $280,000. Sold appliances for cash to GB Home Builders for $320,000 (cost, $131,000). Received payment in full on the maturity date from Allen Contracting for the note. Sold appliances to Deard Contracting for $260,000 (cost, $102,000), receiving a 9-month, 7% note. Made payment on account to CCA. $550,000. Sold appliances on account to various businesses for $950,000, terms 1/30 (cost, $285,000). Collected $720,000 cash on account. Paid cash for expenses: Salaries, $120,000; Utilities, $13,500 w. Replenished the petty cash fund when the fund had $117 in cash and petty cash tickets for $123 for office supplies. Bamerd withdrew $6,000. Paid the franchise fee to CCA of 4% of total sales of $1.965,000. . n. 0. p. 9. r. s. t. u. V. X. y. th Cash Colin Cameron Appliance-Nantucket Chart of Accounts Bamerd, Capital Bamerd, Withdrawals Sales Revenue Petty Cash Accounts Receivable Allowance for Bad Debts Interest Revenue Cost of Goods Sold Soc Merchandise Inventory Office Supplies Prepaid Insurance Interest Receivable Notes Receivable Land Building Accumulated Depreciation-Building Franchise Fee Expense Salaries Expense Utilities Expense Insurance Expense Supplies Expense Bad Debt Expense Bank Expense Credit Card Expense Depreciation Expense-Building Depreciation Expense-Store Fixtures Depreciation Expense-Office Equipment Amortization Expense-Franchise Interest Expense Cash Short and Over Store Fixtures Accumulated Depreciation Store Fixtures Office Equipment Accumulated Depreciation Office Equipment Franchise Accounts Payable Interest Payable Notes Payable $ 11/15/21, 9:11 AM 1. Record the transactions in the general journal. Omit explanations 2. Post to the general ledger 3. It is a common business practice to reconcile the bank accounts on a monthly basis. However, in this problem, the reconciliation of the company's checking account will be done at the end of the year, based on an annual summary. Reconcile the bank account by comparing the following annual summary statement from Nantucket National Bank to the Cash account in the general ledger, Record journal entries as needed and post to the general ledger. Use transaction z as the posting reference Beginning Balance, January 1, 2024 s Deposits and other credits: $ 510,000 54.450 220,000 320,000 720,000 Interest Revenue 1 300 1,825,750 Checks and other debits EFT to Bank Checks 140 Checks: 46,000 390,000 55.000 120,000 250 11 00 ors 4,200 700 280,000 550,000 133,500 Bank service charge 1,800 (1,581,590) $ 244,160 Ending balance, December 31, 2024 "Bank Checks is a company that prints business checks (considered a bank expense) for Colin Cameron Appliance-Nantucket 4. In preparation for preparing the adjusting entries, complete depreciation schedules for the first five years for the depreciable plant assets, assuming the assets were purchased on January 2, 2024 a. Building, straight-line, 30 years, 550,000 residual value. b. Store Foctures, straight-line, 15 years, no residual value, c. Office Equipment , double-declining-balance, five years, $4.000 residual value. 5. Record adjusting entries for the year ended December 31, 2024 a. One year of the prepaid insurance has expired. b. Management estimates that 6% of Accounts Receivable will be uncollectible. c. An inventory of office supplies indicates $623 of supplies have been used 3079 Accumulate 70 t 11/15/21, 9:11 AM Requirements Franchise punts Payable ayable d. Calculate the interest eamed on the outstanding Deard Contracting note receivable. Assume the note was received on October 31. Round to the nearest dollar. e. Record depreciation expense for the year. 1. Record amortization expense for the year on the franchise, which has a 10-year life. 9. Calculate the interest owed on the note payable. Assume the note was issued on January 1. 6. Post adjusting entries and prepare an adjusted trial balance. 7. Prepare a multi-step income statement and statement of owner's equity for the year ended December 31, 2024. Prepare a classified balance sheet as of December 31, 2024. Assume Interest Receivable is a current asset and Interest Payable is a current liability 8. Evaluate the company's success for the first year of operations by calculating the following ratios. Round to two decimal places. Comment on the results. a. Liquidity: 1. Current ratio il. Acid-test ratio Ill. Cash ratio b. Efficiency: 1. Accounts receivable turnover ii. Day's sales in receivables IR. Asset turnover Iv. Rate of return on total assets