Complex Accounting Project #1
You are to perform the financial work for the month of January Record the transactions Post the transactions to the ledger (T accounts) Prepare a trial balance Record the adjusting entries Prepare an adjusted trial balance Prepare the 4 financial statements Pencil and paper only The first tab has the beginning balances for the month of January Create a company name for the project. Extra points are awarded for a humorous name. Net income is $1,146 Franklin & Graham January 1 Balances Cash 9,368 Accounts Rec 9,202 Allowance for doubtful accounts 920 Inventory 4,874 Prepaid Ins Land 3,000 Building 15,000 Equipment 2,080 Accum Depre 190 Accounts Pay 6,257 Note Pay 1,000 Mortgage pay (5% interest) 10,052 Stock $1 par (1,000 shares outstanding) 1,000 Additional Paid in Capital 4,000 Retained Earnings 20,105 43,524 43,524 $ 79.00 100.00 Cost of goods sold is 50% of sales 02-Jan 02-Jan Sales, on account $ 2,370.00 02-Jan Paid phone bill $ 15.00 02-Jan Paid insurance 1 year on equipment $ 24.00 3 years on building $ 180.00 04-Jan Pay freight to customer $ 23.00 04-Jan Pay sales commissions $ 200.00 04-Jan Company purchased equipment $ 200.00 Received payment from customer, terms 1/10, n/30. Paid within 10 days. (this is the amount of cash 05-Jan received.) $ 1,386.00 Company makes a payment on the mortgage note (round interest calculation to nearest even 05-Jan dollar) 06-Jan Paid advertising $ 07-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days $ 1,188.00 08-Jan 08-Jan Purchases inventory on account $ 3,822.00 08-Jan Paid freight on incoming inventory $ 68.00 08-Jan Issued additional 50 shares of stock for $5 a share 09-Jan Sales, on account $ 4,464.00 09-Jan Cash sale $ 100.00 09-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days $ 288.00 09-Jan paid vendor (accounts payable) for inventory. take a 2% discount for paying within 10 days $ 3,200.00 11-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days $ 3,465.00 12-Jan goods returned by customer $ 26.00 12-Jan paid vendor, no discount allowed $ 747.00 13-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days $ 792.00 13-Jan Returned goods to vendor $ 38.00 14-Jan Paid travel expense $ 64.00 14-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days $ 580.00 15-Jan Purchases inventory on account $ 1,480.00 15-Jan Paid freight on incoming inventory $ 24.00 15-Jan Paid property taxes $ 600.00 15-Jan Paid salary $ 1,200.00 Sales, on account $ 3,130.00 $ $ $ 16-Jan $ $ $ 250.00 100.00 20.00 18-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days 19-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days 19-Jan Collect $20 from customer written off in prior year 20-Jan 20-Jan received an allowance from a vendor on inventory 20-Jan customer returned merchandise 21-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days 21-Jan paid office expenses 21-Jan paid for delivery to customer 22-Jan Purchases inventory on account 22-Jan Paid freight on incoming inventory 23-Jan Sales, on account 25-Jan Returned goods to vendor 25-Jan write off customer as uncollectable 26-Jan purchase office supplies on account 26-Jan paid utility bill 26-Jan customer returned merchandise 27-Jan Purchases inventory on account 27-Jan Paid freight on incoming inventory 27-Jan Repurchased company stock, 10 shares for $4 each 30-Jan Sales, on account 30-Jan Cash sale 30-Jan paid freight to ship goods to customer 30-Jan paid employee travel expenses 30-Jan paid salary 30-Jan company pays a dividend $ 25.00 $ 120.00 $ 725.00 $ 50.00 $ 98.00 $ 2,340.00 $ 50.00 $ 1,010.00 $ 60.00 $ 400.00 $ 42.00 $ 90.00 $ 27.00 $ 2,630.00 $ 47.00 $ 3,390.00 $ 388.00 $ 36.00 $ 368.00 $ 2,200.00 $ 400.00 3390 30-Jan Sales, on account Cash sale paid freight to ship goods to customer paid employee travel expenses pay salary company pays a dividend 388 36 368 2200 400 Allowance for doubtful accounts is estimated to be 10% of accounts receivable Depreciation (round to nearest whole dollar) building, 30 years, straight line, 2,000 salvage equipment has two parts 1000 5 years, Straight line, no salvage 1280 units of activity, 5,000 esstimated total units, 50 units used in current period Adjust prepaid insurance Accrue interest on short term note note is due in 4 months, interest rate is 6% You are to perform the financial work for the month of January Record the transactions Post the transactions to the ledger (T accounts) Prepare a trial balance Record the adjusting entries Prepare an adjusted trial balance Prepare the 4 financial statements Pencil and paper only The first tab has the beginning balances for the month of January Create a company name for the project. Extra points are awarded for a humorous name. Net income is $1,146 Franklin & Graham January 1 Balances Cash 9,368 Accounts Rec 9,202 Allowance for doubtful accounts 920 Inventory 4,874 Prepaid Ins Land 3,000 Building 15,000 Equipment 2,080 Accum Depre 190 Accounts Pay 6,257 Note Pay 1,000 Mortgage pay (5% interest) 10,052 Stock $1 par (1,000 shares outstanding) 1,000 Additional Paid in Capital 4,000 Retained Earnings 20,105 43,524 43,524 $ 79.00 100.00 Cost of goods sold is 50% of sales 02-Jan 02-Jan Sales, on account $ 2,370.00 02-Jan Paid phone bill $ 15.00 02-Jan Paid insurance 1 year on equipment $ 24.00 3 years on building $ 180.00 04-Jan Pay freight to customer $ 23.00 04-Jan Pay sales commissions $ 200.00 04-Jan Company purchased equipment $ 200.00 Received payment from customer, terms 1/10, n/30. Paid within 10 days. (this is the amount of cash 05-Jan received.) $ 1,386.00 Company makes a payment on the mortgage note (round interest calculation to nearest even 05-Jan dollar) 06-Jan Paid advertising $ 07-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days $ 1,188.00 08-Jan 08-Jan Purchases inventory on account $ 3,822.00 08-Jan Paid freight on incoming inventory $ 68.00 08-Jan Issued additional 50 shares of stock for $5 a share 09-Jan Sales, on account $ 4,464.00 09-Jan Cash sale $ 100.00 09-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days $ 288.00 09-Jan paid vendor (accounts payable) for inventory. take a 2% discount for paying within 10 days $ 3,200.00 11-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days $ 3,465.00 12-Jan goods returned by customer $ 26.00 12-Jan paid vendor, no discount allowed $ 747.00 13-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days $ 792.00 13-Jan Returned goods to vendor $ 38.00 14-Jan Paid travel expense $ 64.00 14-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days $ 580.00 15-Jan Purchases inventory on account $ 1,480.00 15-Jan Paid freight on incoming inventory $ 24.00 15-Jan Paid property taxes $ 600.00 15-Jan Paid salary $ 1,200.00 Sales, on account $ 3,130.00 $ $ $ 16-Jan $ $ $ 250.00 100.00 20.00 18-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days 19-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days 19-Jan Collect $20 from customer written off in prior year 20-Jan 20-Jan received an allowance from a vendor on inventory 20-Jan customer returned merchandise 21-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days 21-Jan paid office expenses 21-Jan paid for delivery to customer 22-Jan Purchases inventory on account 22-Jan Paid freight on incoming inventory 23-Jan Sales, on account 25-Jan Returned goods to vendor 25-Jan write off customer as uncollectable 26-Jan purchase office supplies on account 26-Jan paid utility bill 26-Jan customer returned merchandise 27-Jan Purchases inventory on account 27-Jan Paid freight on incoming inventory 27-Jan Repurchased company stock, 10 shares for $4 each 30-Jan Sales, on account 30-Jan Cash sale 30-Jan paid freight to ship goods to customer 30-Jan paid employee travel expenses 30-Jan paid salary 30-Jan company pays a dividend $ 25.00 $ 120.00 $ 725.00 $ 50.00 $ 98.00 $ 2,340.00 $ 50.00 $ 1,010.00 $ 60.00 $ 400.00 $ 42.00 $ 90.00 $ 27.00 $ 2,630.00 $ 47.00 $ 3,390.00 $ 388.00 $ 36.00 $ 368.00 $ 2,200.00 $ 400.00 3390 30-Jan Sales, on account Cash sale paid freight to ship goods to customer paid employee travel expenses pay salary company pays a dividend 388 36 368 2200 400 Allowance for doubtful accounts is estimated to be 10% of accounts receivable Depreciation (round to nearest whole dollar) building, 30 years, straight line, 2,000 salvage equipment has two parts 1000 5 years, Straight line, no salvage 1280 units of activity, 5,000 esstimated total units, 50 units used in current period Adjust prepaid insurance Accrue interest on short term note note is due in 4 months, interest rate is 6%
