Complex Accounting Project #2 
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 Cost of goods sold is 50% of sales 2370 15 24 180 2-Jan Sales, on account Paid phone bill Paid insurance 1 year on equipment 3 years on building 4-Jan Pay freight to customer Pay sales commissions Company purchased equipment 5-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days. (this is the amount of cash received.) 23 200 200 1386 79 100 1188 3822 68 Company makes a payment on the mortgage note (round interest calculation to nearest even dollar) 6-Jan Paid advertising 7-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days 8-Jan Purchases inventory on account Paid freight on incoming inventory Issued additional 50 shares of stock for $5 a share 9-Jan Sales, on account Cash sale Received payment from customer, terms 1/10, n/30. Paid after 10 days paid vendor (accounts payable) for inventory, take a 2% discount for paying within 10 days 11-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days 12-Jan goods returned by customer paid vendor, no discount allowed 4464 100 288 3200 3465 26 747 792 38 64 580 1480 24 600 1200 3130 250 100 20 13-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days Returned goods to vendor 14-Jan Paid travel expense Received payment from customer, terms 1/10,n/30. Paid after 10 days 15-Jan Purchases inventory on account Paid freight on incoming inventory Paid property taxes Paid salary 16-Jan Sales, on account 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 Collect $20 from customer written off in prior year 20-Jan received an allowance from a vendor on inventory customer returned merchandise 21-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days paid office expenses paid for delivery to customer 22-Jan Purchases inventory on account Paid freight on incoming inventory 23-Jan Sales, on account 25-Jan Returned goods to vendor write off customer as uncollectable 26-Jan purchase office supplies on account paid utility bill customer returned merchandise 27-Jan Purchases inventory on account Paid freight on incoming inventory Repurchased company stock, 10 shares for $4 each 25 120 725 50 98 2340 50 1010 60 400 42 90 27 2630 47 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 Cost of goods sold is 50% of sales 2370 15 24 180 2-Jan Sales, on account Paid phone bill Paid insurance 1 year on equipment 3 years on building 4-Jan Pay freight to customer Pay sales commissions Company purchased equipment 5-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days. (this is the amount of cash received.) 23 200 200 1386 79 100 1188 3822 68 Company makes a payment on the mortgage note (round interest calculation to nearest even dollar) 6-Jan Paid advertising 7-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days 8-Jan Purchases inventory on account Paid freight on incoming inventory Issued additional 50 shares of stock for $5 a share 9-Jan Sales, on account Cash sale Received payment from customer, terms 1/10, n/30. Paid after 10 days paid vendor (accounts payable) for inventory, take a 2% discount for paying within 10 days 11-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days 12-Jan goods returned by customer paid vendor, no discount allowed 4464 100 288 3200 3465 26 747 792 38 64 580 1480 24 600 1200 3130 250 100 20 13-Jan Received payment from customer, terms 1/10, n/30. Paid within 10 days Returned goods to vendor 14-Jan Paid travel expense Received payment from customer, terms 1/10,n/30. Paid after 10 days 15-Jan Purchases inventory on account Paid freight on incoming inventory Paid property taxes Paid salary 16-Jan Sales, on account 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 Collect $20 from customer written off in prior year 20-Jan received an allowance from a vendor on inventory customer returned merchandise 21-Jan Received payment from customer, terms 1/10, n/30. Paid after 10 days paid office expenses paid for delivery to customer 22-Jan Purchases inventory on account Paid freight on incoming inventory 23-Jan Sales, on account 25-Jan Returned goods to vendor write off customer as uncollectable 26-Jan purchase office supplies on account paid utility bill customer returned merchandise 27-Jan Purchases inventory on account Paid freight on incoming inventory Repurchased company stock, 10 shares for $4 each 25 120 725 50 98 2340 50 1010 60 400 42 90 27 2630 47 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%
