Colin Cameron Appliance-Myrtle Beach has just purchased a tranchise from Colin Cameron Appliance (CCA) Click the icon to view the additional information) Following is the chart of accounts for Colin Cameron Appliance --Myrtle Beach As a new business, all beginning balances are 50 (Click the icon to view the chart of accounts) Colin Cameron Appliance--Myrtle Beach completed the following transactions during 2024, its first year of operations Click the icon to view the transactions) Read the equirements Requirement 1. Record the transactions in the general Journal Omit explanations (Record debits first, then credits Exclude explanations from any Journal entries) a. Received $580,000 cash from owner. S Balm Opened a new checking account at Myrtle Beach National Bank and deposited the cash received from the owner Date Accounts Debit Credit (a) meron Apl k the icon g is the ch business More info ck the icon ement 1. VOL 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-Myrtle Beach will receive many benefits, including having the exclusive right to sell CCA brand appliances in Myrtle Beach. 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-Myrtle Beach 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-Myrtle Beach 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 lived $580 fror her - X More info trar Ich ha al info Coling accou Cash Petty Cash ons in Colin Cameron Appliance-Myrtle Beach Chart of Accounts Balm, Capital Balm, Withdrawals Sales Revenue Interest Revenue Cost of Goods Sold Franchise Fee Expense Salaries Expense Utilities Expense Insurance Expense Supplies Expense Bad Debt Expense Accounts Receivable Allowance for Bad Debts Merchandise Inventory Office Supplies Prepaid Insurance Interest Receivable Notes Receivable er, S. EL Acco Land Building Wall * al info Folind accou ons in riepasurance Interest Receivable Notes Receivable Land Building Accumulated Depreciation-Building Store Fixtures Accumulated Depreciation Store Fixtures Office Equipment Accumulated Depreciation - Office Equipment Franchise Accounts Payable Interest Payable Notes Payable SaS Lxpense 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 SE Acco - x More info wing tra just matid merd nits) he get e. alm. a. Received $580,000 cash from owner, S. Balm, in exchange for capital. Opened a new checking account at Myrtle Beach National Bank and deposited the cash received from the owner. b. Paid $56,000 cash for a CCA franchise. c. Paid $215,000 cash and issued a $350,000, 10-year, 12% notes payable for land with an existing building. The assets had the following market values: Land, $60,000, Building, $505,000 d. Paid 597,500 for store fixtures Paid 560,000 for office equipment f. Paid $400 for office supplies 9. Paid $3.000 for a two-year insurance policy h. Purchased appliances from CCA (merchandise inventory) on account for $420,000 Established a petty cash fund for $160 j. Sold appliances on account to ABC Contractors for $220,000 terms n/30 (cost, 588,000) k. Sold appliances to Munro Contracting for $190,000 (cost, 581.000), receiving a 6-month 15% note. 1. Recorded credit card sales of 545,000 (cost, $21,000), net of processor fee of 1% m. Received payment in full from ABC Contractors unts i. - More info w as just ormatid Camera unts) . the get Balm m. Received payment in full from ABC Contractors n. Purchased appliances from CCA on account for $610,000. o. Made payment on account to CCA. $340,000 p. Sold appliances for cash to CB Home Builders for $340,000 (cost, 5171,000). 9. Received payment in full on the maturity date from Munro Contracting for the note. Sold appliances to Deard Contracting for $260,000 (cost, $128,000), receiving a 9-month 15% note S. Made payment on account to CCA $470,000 1. Sold appliances on account to various businesses for $970,000, terms n/30 (cost $388,000) u. Collected $740,000 cash on account V. Pald cash for expenses. Salaries, $170,000; Utilities, $13,000 w. Replenished the petty cash fund when the fund had $73 In cash and petty cash tickets for 580 for office supplies X Balm withdrew $10,000 y Paid the franchise fee to CCA of 3% of total sales of $2.025.000 counts - x Requirements pe following tran st purch lion.) Eron Api generali Opene 0 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 Myrtle Beach 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 $ Deposits and other credits 580.000 44,550 220,000 340,000 740,000 Interest Revenue 1200 1.925,750 $ - x Requirements be followir List purch ation) heron App ) Checks and other debits EFT to Bank Checks Checks $ 110 56,000 215,000 60,000 97,500 general 7 Openel 160 5 3,000 400 340 000 470,000 183.000 Bank service charge 1,700 (1.426,870) 498 88 -X Requirements he following to has just purch formation) Cameron App $ punts.) n the general Balm. Opene 498,880 Ending balance, December 31, 2024 "Bank Checks is a company that prints business checks (considered a bank expense) for Colin Cameron Appliance-Myrtle Beach 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, $25,000 residual value. b. Store Fixtures, straight-line, 15 years, no residual value. c. Office Equipment, double-declining balance, five years. $6.000 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 10% of Accounts Receivable will be uncollectible c. An inventory of office supplies indicates $260 of supplies have been used. d. Calculate the interest earned 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. f. Record amortization expense for the year on the franchise, which has a 10-year life g. Calculate the interest owed on the note payable Assume the note was issued on January 1 counts just purch mation.) meron App its.) he generali alm Opene receivable. Assume the note was received on October 31. Round to the nearest dollar e. Record depreciation expense for the year f. Record amortization expense for the year on the franchise, which has a 10-year life g. 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 Hi. Acid-test ratio ili Cash ratio b. Efficiency Accounts receivable tumover li Day's sales in receivables ili Asset tumover iv Rate of return on total assets unts >