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Create journal entries for Quarter 3 transactions, and the Quarter 3 ending balance sheet. (Hint: you will need to create the income statement.) a SCF
Create journal entries for Quarter 3 transactions, and the Quarter 3 ending balance sheet. (Hint: you will need to create the income statement.) a SCF for Quarter 3. Round up the numbers - no decimal points
FSA - Learning Activity 1 The balance sheet of DCC Corp., as of the end of Quarter 2, is provided below. BS Assets Liab. & Owners Equity Cash A/R Inventory parts nished goods $11,300 $1,000 $600 $6,000 Accounts payable $500 Long-term debt $8,000 Common Stock $4,000 ($2 par value) Paid-in-surplus $5,000 Retained Earnings $1,400 Total Assets $18,900 Liab. & Owners Equ ### During Quarter 3: DCC purchased $3500 worth of parts, $1800 with cash, the remainder to be paid in Quarter 4. Sold 6 computers, each for $750. 4 were sold for cash, 2 were sold on credit with payment to be received in Quarter 4. The gross margin was 34% Annual interest rate on LTD is 3.5%. Interest is paid and expensed quarterly. SG&A expenses = $500 were paid in Quarter 3 The tax rate is 35% and Quarter 3 taxes will be paid in Quarter 4 The dividend payout ratio (dividends/Net Income) is 28% (paid immediately) 200 new shares of common stock were issued and sold for $1200 in Quarter 3 Purchase the warehouse DCC is located in for $20,000 cash on the first day of Quarter 3 $10,000 long-term debt was issued on the first day of Quarter 3. The warehouse will be depreciated over 20 years. Depreciation is expensed quarterly. Create journal entries for Quarter 3 transactions, and the Quarter 3 ending balance sheet. (Hint: you will need to create the income statement.) Create a SCF for Quarter 3. Round up the numbers - no decimal points Your report should present the IS, BS and SCF and should be on one page You have to use Excel to complete the assignment. Hand written work is unacceptable Revenues Services Expenses Salaries Rent Advertising Utilities on account Total Expenses Net income Inventory Parts Accounts Payable Cash 3500 Cash Accounts Receivable Inventory Parts 3000 1500 1700 1800 4500Step by Step Solution
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