Comprehensive Problem - Financial Statements & Flexible Budget Mac Year 1 Transachion List: 1. Acquired $550,000 by signing a note payable with a local bank 2. Sold 25,000 shares of $22 Common Stock for $1,500,000 3. Purchased Equipment 4. Purchased Inventory on Account - 25,000 Units at $1.15 per unit 5. Sold 15,000 units at $3.50 on Account 6. COGS for Sales on Account 7. Collect $70,000 on Account 8. Paid $17.250 of Accounts Payable 9. Purchased Inventory on Account - 170,000 units at $1.50 per unit 10. Sold 175.000 units at $3.50 on Account 11. COGS for Sales on Account 12. Collect $472.500 on Account 13. Paid $118.600 of Accounts Payable 14. Purchased Inventory on Account - 275.000 Units at $1.45 per unit 15. Sold 200.000 units at $3.50 on Account 16. COGS for Sales on Account 17. Collect $735,000 on Account 18. Paid $294,150 of Accounts Payable 19. Purchased Inventory on Account - 300,000 Units at $1.15 per unit 20. Paid Sales & Marketing Expenses of $30,000 21. Paid Operating Expenses of $75,708 22. Paid Wage Expenses of $40.000 23. Pald Product Une Research & Development Expenses of $150.000 24. Paid Advertising Expenses of $87.500 25. Mode the yearly required payment on the note payable. The note carries a 7% interest rote ond requires payments of $50,000 plus interest ecoh December 31 26. Record X 1 Depreciation on Eovipment with Balvage Value of $38,000 & useful life of 7 27. Deolored a $10.000 cash dividend for stockholders 28. Pald a $10.000 com dividend forstockholders Note: Your team will need to find any errors the accounting department made when recording the entries above CAUTION: When seeking help from the TAs or ACE. you will be required to present your work for them for review. They can confirm if you have corrected account balances on accounting equation worksheet or point you in the right direction if you haven't found the errors yet. They will not complete any part of the assignment for you or answer question if you cannot provide Your own work first Remember- an error in recording one event could have an impact on another event if they are related As a team, complete the following: 1. Review the completed accounting equation worksheet and correct the three entries that contain errors. Background - You are a member of the company's executive team. As a team you'll need to designate a role for each team member based on your declared major and relevant work and course experience. For example, an accounting major may be designated as the CFO, while a marketing major may be designated as the VP of marketing for the firm. Click here for a great article about who makes up on executive team. Remember - you have some flexibility here depending on your team's makeup The accounting equations worksheet was provided by your internal accounting department for your review. As part of the executive team of this company, you will correct any errors and use the corrected numbers to construct a full set of financial statements, which will help guide your decision-making process. 2. Your team will use the CORRECTED accounting equation worksheet and templates provided to complete the following financial statements: Income Statement Vertical Balance Sheet Cash Flow Statement Statement on Stockholders Equity . . LL Comprehensive Problem - Financial Statements & Flexible Budget Mac Year 1 Transachion List: 1. Acquired $550,000 by signing a note payable with a local bank 2. Sold 25,000 shares of $22 Common Stock for $1,500,000 3. Purchased Equipment 4. Purchased Inventory on Account - 25,000 Units at $1.15 per unit 5. Sold 15,000 units at $3.50 on Account 6. COGS for Sales on Account 7. Collect $70,000 on Account 8. Paid $17.250 of Accounts Payable 9. Purchased Inventory on Account - 170,000 units at $1.50 per unit 10. Sold 175.000 units at $3.50 on Account 11. COGS for Sales on Account 12. Collect $472.500 on Account 13. Paid $118.600 of Accounts Payable 14. Purchased Inventory on Account - 275.000 Units at $1.45 per unit 15. Sold 200.000 units at $3.50 on Account 16. COGS for Sales on Account 17. Collect $735,000 on Account 18. Paid $294,150 of Accounts Payable 19. Purchased Inventory on Account - 300,000 Units at $1.15 per unit 20. Paid Sales & Marketing Expenses of $30,000 21. Paid Operating Expenses of $75,708 22. Paid Wage Expenses of $40.000 23. Pald Product Une Research & Development Expenses of $150.000 24. Paid Advertising Expenses of $87.500 25. Mode the yearly required payment on the note payable. The note carries a 7% interest rote ond requires payments of $50,000 plus interest ecoh December 31 26. Record X 1 Depreciation on Eovipment with Balvage Value of $38,000 & useful life of 7 27. Deolored a $10.000 cash dividend for stockholders 28. Pald a $10.000 com dividend forstockholders Note: Your team will need to find any errors the accounting department made when recording the entries above CAUTION: When seeking help from the TAs or ACE. you will be required to present your work for them for review. They can confirm if you have corrected account balances on accounting equation worksheet or point you in the right direction if you haven't found the errors yet. They will not complete any part of the assignment for you or answer question if you cannot provide Your own work first Remember- an error in recording one event could have an impact on another event if they are related As a team, complete the following: 1. Review the completed accounting equation worksheet and correct the three entries that contain errors. Background - You are a member of the company's executive team. As a team you'll need to designate a role for each team member based on your declared major and relevant work and course experience. For example, an accounting major may be designated as the CFO, while a marketing major may be designated as the VP of marketing for the firm. Click here for a great article about who makes up on executive team. Remember - you have some flexibility here depending on your team's makeup The accounting equations worksheet was provided by your internal accounting department for your review. As part of the executive team of this company, you will correct any errors and use the corrected numbers to construct a full set of financial statements, which will help guide your decision-making process. 2. Your team will use the CORRECTED accounting equation worksheet and templates provided to complete the following financial statements: Income Statement Vertical Balance Sheet Cash Flow Statement Statement on Stockholders Equity . . LL