& Comp10-1 (similar to) E Question Help Colin Cameron Appliance-Nantucket has just purchased a franchise from Colin Cameron Appliance (CCA). Click the icon to view the additional information) Following is the chart of accounts for Colin Cameron Appliance-Nantucket. As a new business, all beginning balances are SO. Colin Cameron Appliance-Nantucket completed the following transactions during 2018, its first year of operations: i (Click the icon to view the transactions ) Read the requirements. (Click the icon to view the chart of accounts) Requirement 1. Record the transactions in the general journal. Omit explanations (Record debits first, then credits. Exclude explanations from any journal entries.) a. Received $570,000 cash from owner, D. Baen. Opened a new checking account at Nantucket National Bank and deposited the cash received from the owner Date Accounts Debit Credit (a) Cash 570,000 570,000 Baen, Capital b. Paid $53,000 cash for a CCA franchise al More Info 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 ash m 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 wil purchase appliances from CCA and resell them in its store, primarily to local building contractors for installation in new homes. Print Done 8-10) 0 pts , 1 of 1 (1 complete) More Info Colin Cameron Appliance-Nantucket Chart of Accounts Cash Petty Cash Accounts Receivable Allowance for Bad Debts Merchandise Inventory Office Supplies Prepaid Insurance Interest Receivable Notes Receivable Land Building Accumulated Depreciation-Building Store Fixtures Baen, Capital Baen, Withdrawals Sales Revenue Interest Revenue Cost of Goods Sold Franchise Fee Expense Salaries Expense Utilities Expense Insurance Expense Supplies Expense Bad Debt Expense Bank Expense Credit Card Expense Print Done e here to search More Info Merchandise Inventory Office Supplies Prepaid Insurance Interest Receivable Notes Receivable Land Building Accumulated Depreciation-Building Store Fixtures Accumulated Depreciation Store Fixtures Depreciation Expense Building Office Equipment Accumulated Depreciation-Office Equipment Depreciation Expense Office Equipment Franchise Accounts Payable interest Payable Notes Payable Cost of Goods Sold Franchise Fee Expense Salaries Expense Utilities Expense Insurance Expense Supplies Expense Bad Debt Expense Bank Expense Credit Card Expense Depreciation Expense-Store Fixtures Amortization Expense Franchise Interest Expense Cash Short and Over Print Done here to search s 8 10) 100 pts f 1 (1 complete) HW Score: More Info a. Received $570,000 cash from owner, D Baen, in exchange for capital Opened a new checking account at Nantucket National Bank and deposited the cash received from the owner b. Paid $53,000 cash for a CCA franchise c, Paid $80,000 cash and issued a $450 000, 10-year 12% notes payable for land with an existing building The assets had the following market values Land, $120,000, Building $410,000 d. Paid $120,000 for store fixtures e. Paid $40,000 for office equipment f. Paid $400 for office supplies g. Paid $3,400 for a two-year insurance policy h. Purchased appliances from CCA (merchandise inventory) on account for $445,000 i. Established a petty cash fund for $280 E Sold appliances on account to BCD Contractors for $245,000, terms n/30 (cost, $98,000) k. Sold appliances to Elton Contracting for $190,000 (cost, $81,000) receiving a 6-month 15% note I. Recorded credit card sales of $50,000 (cost, $23,000), net of processor fee of 396. m. Received payment in full from BCD Contractors n. Purchased appliances from CCA on account for $670,000 o. Made payment on account to CCA, $250,000 p. Sold appliances for cash to HB Home Builders for $370,000 (cost, $183,000) Print Done More Info i. Established a petty cash fund for $280 Sold appliances on account to BCD Contractors for s245 000 terms n/30 (cost, $98 000 k. Sold appliances to Elton Contracting for $190,000 (cost, $81.000), receiving a 6-month, 15% note l. Recorded credit card sales of $50 000 (cost $23,000, net of processor fee of 3% m. Received payment in full from BCD Contractors. n. Purchased appliances from CCA on account for $670,000 o. Made paymenf on account to CCA, $250,000 p. Sold appliances for cash to HB Home Builders for $370,000 (cost, $183,000) q. Received payment in full on the maturity date from Elton Contracting for the note r. Sold appliances to Keard Contracting for S210,000 (cost, $108,000, receiving a 9-month 15% note s. Made payment on account to CCA, S450,000 t. Sold appliances on account to various businesses for $1,020,000, terms n/30 (cost, $408,000) Collected $710,000 cash on account Paid cash for expenses Salaries, $150,000, Utilities, 14,000 Replenished the petty cash fund when the fund had $128 in cash and petty cash tickets for $145 for office supplies Baen withdrew $10,000 Paid the franchise fee to CCA of 5% of total sales of $2,085,000 u. v. w. x. y. Print Done ere to search Hi rk: Lesson 10 Comprehensive Problem s 8 10) 0 pts 1 of 1 (1 complete) HW Score: 0.8 Requirements 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, 2018 Deposits and other credits: S 570,000 48,500 245,000 370,000 710,000 1,300 1.944,800 Interest Revenue Checks and other debits Print Done Clear Al Check A Requirements Checks and other debits EFT to Bank Checks Checks 100 53,000 80,000 40,000 120,000 280 3,400 400 250,000 450,000 164,000 1,400 (1,162,580) Bank service charge $ 782,220 Ending balance December 31, 2018 "Bank Checks is a company that prints business checks (considered a hank exnense) for Colin Cameron Annliance Nantucket Print Done Clear All HW Score: 0.8 G Requirements 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, 2018 a. Building, straight-line, 30 years, S50,000 residual value b. Store Fixtures, straight-line, 15 years, no residual value c. Office Equipment, double-declining-balance, 5 years, $4,000 residual value. Record adjusting entries for the year ended December 31, 2018 a. 5. One year of the prepaid insurance has expired Management estimates that 4% of Accounts Receivable will be uncollectible. c. An inventory of office supplies indicates $405 of supplies have been used d. Calculate the interest earned on the outstanding Keard 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 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 2018 Prepare a classifed balance sheet as of December 31 2018. Assume Print Done Requirements d. Calculate the interest earned on the outstanding Keard 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 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, 2018. Prepare a classified balance sheet as of December 31, 2018. Assume interest Receivable is a current asset and Interest Payable is a current liability. 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 8. i. Current ratio ii. Acid-test ratio ili Cash ratio b. Efficiency i Accounts receivable turnover i Day's sales in receivables Ii. Asset turnover iv. Rate of return on total assets Print Done Che Clear All