Group Project 3 Duplicate Deposit Slips Problem 1 (50 points) Currency Cons 0000 Deposit sup Cash Date List of Checks GY To 91500 91510 Tupreme Company's bookkeeper prepared the bar rector May 1, 2010 The Deeper had the towing responses All being the Bunding of cash recept the won of the y bank reconcion and the depot the bank Asume that the per prepared the checks which were signed by the owner The owner on a day basisverthed and great checs that were written counted on and verified the detto cash in the cash recipes and the Credit to cash in the cash payments Jual Assume that the office mas performed at the Currency Coins TODO Deposit Ship Cash Date of Checks VO 000 Total 100000 Currency Coins 100 May 21 Bank Statement BASES Somosherreds ong Chery and other song ce of steen Deposit si Cash Date Unt of Checas W/10 897 01 00 Tot Data Currency Coins 500 Amount 53915 $1000 See Deposit shpCash Date Ust of Checks SAVO 92 1000 15011 5737 Total 1 020 22 401 S 5.815 50 S11 Transion Type Depo Depos Depow Depowe Deport DEPOLE NICHE SIVIC Change Collection Currency Coins 10000 Depost Splash Date List of Check 300 Cricton ONESE 1297100 Tota/290 Data Check . Amount 103 CONCE 3112 Currency Coins Depost cash Date LIST Check SO DY 94 . 3000 TO 133 SH 21 100 GOT 402 Currency Coins 35 305 545 Deposit Sp Cash Untot Check Sale 31 9151 Total Copies of Written Checks Supreme Company Date: 2010 390 Supreme Company Pay to the Order of Alam Date 1/1 710 391 151400 Pay to the Order of Jones & Company NOT Bank Five Hundred Rutten and not $125.00 Meme 010 NBT Bank One Hundred Twenty Five and no con 10 Super Memo: Supplies Supreme Company Date:30/10 397 Supreme Company Date: 150 Pay to the Order of onesemo 571100 302 NET Seven Hund von anden Pay to the Order of Jordan $112.00 Memo: NOT Bank One Hundred and no cents Memo: Invoice 2324 Supreme Supreme Company Date: 5010 Pay to the Order of the upper 57000 Date: 4/21/10 393 Supreme Company Pay to the Order of Jones & Company NBT Bank Sevenlunded and to $ 500.00 Memo 20 alume NET Bank Five Hundred and no cents Memo Invece Supreme Company Date: 2/12/10 399 Super Pay to the Order of Sum 3.1.00000 294 Supreme Company Date: 42410 Pay to the Order of King and Company NBT Bank One Thousand and not 521500 Mere NBT Bank Two Hundred and no per Supreme Company Date: 2010 Memoine 70 Jame Pay so the Order of the $94300 355 NOT Bank Supreme Company Date: 2010 Pay to the Order of Jones & Com Five Hundred forty tree and on 510000 Memory NET Bank One Hundred and no one Supreme Company Date: 20 431 Memowoce 20 JES Pay to the Order of ion & Company 1150 NOT Bank Four Hundry SUPREME COMPART DUURO www Pay to the Order of Com WAT Ba V Order Me May Supreme Company Date 403 CHARREGADO Cash Die GO 1000 17 32 1 57 02 SA 1901 To Pay to the Order of the 54100 NBT Bank Mere Casa Pamantecorded in common Cheese Cash Credit 484 Supreme Company Date Pay to the Order of Garner Com Thunden Memes GUE NBT Bank 1993 103 06 Supreme Company D300 406 1994 500 Fay to the Order of the $10.00 To NOT Bank Sepedepson page? Seperon copies of chicken 6 And wamen Supreme Co Date: Aty were de departe Pay to the Order of The 59 NOTAR Fundo Memor Det Car General Ledger OC supreme con Date SITO OT Pay to the Order of Ch NATA The Blowing is the bank terecht in perpared by the bookkeeper tox Apes 30, 2010 SUPREME COMPANY BANK RECONCILIATION SUPREME COMPANY May 31, 2010 BANK RECONCILIATION April 30, 2010 Change Added 116 Cash Dance ording to an Les 1915 39 $13.670 De Checks 003200 es 30 Og Check 1 3145 AR 12 300 3 1100 310 NO 71 532 31.1 Asted 11 04 GEN RE AN Ao lo con Decor CON Growth pas 111113 AR parts Problem 2 (40 points) 1. Read the following instructions and enter and submit all information on the Group Project Excel spreadsheet Problem 2 parts 2 - 6 tab and Problem 2 part 7-8 tab. 2. Open the following selected accounts recording the opening balances as of January 1 of the current year. In the (Group Project Excel Spreadsheet Problem 2 Parts 2 - 6 tab). 114.1 313 718 12,200 Credit Allowance for doubtful accounts Retained Earnings Bad debts expense 3. Record the following transactions in general journal form in the Group Project Excel Spreadsheet Problem 2 Parts 2 - 6 tab. 4. Post these transactions to the three selected accounts above and to Accounts receivable in the Group Project Excel Spreadsheet Problem 2 parts 2 - 6 tab. 5. Enter the ending balances in the three accounts above and enter the ending balance in the Accounts Receivable account. Enter those balances in the Group Project Excel Spreadsheet Problem 2 parts 2 - 6 tab. Apr 1,09 Accepted a $20,000, one-year, 8% note dated April 1 from Bruce Hanson for the sale of inventory: Cost of Goods Sold was $16,500. June 27 Wrote off the $2,375 balance owed by Miller Corp., which has no assets. Oct. 5 Received 25% of the $12,000 balance owed by F.M. Knox Co., a bankrupt, and wrote off the remainder as uncollectible. Dec. 31 Based on an analysis of the $257 724 of accounts receivable, it was estimated that $14,500 will be uncollectible Record the adjusting entry using the Aging method Dec. 31 Record the adjusting entry for interest accrued on the Bruce Hanson note Dec. 31 Record the entries to close the appropriate accounts into Retained Earnings. April 1,10 Collected the maturity value on the Hanson note. 6. Determine the net accounts receivable (the amount Summer expects to collect as of December 31 and enter in the Group Project Spreadsheet Problem 2 Parts 2 - 6 tab) 7. Compute the accounts receivable turnover and the day's sales in receivables for the year. Assume that there were $1,800,000 sales account. (You will need to refer to the Group Project Excel Spreadsheet Problem 2 part 7 - 8 tab). 8. How is Summer Company doing with collection of their accounts receivable compared to the industry? Assume the industry average for the accounts receivable turnover is 11 and the industry average for the day's sales in receivables is 37 days? (Enter in the Group Project Excel Spreadsheet Problem 2 part 7-8 tab). Submit one set of answers per group for all four problems. Make sure to include each group members name at the top of each spreadsheet. Problem 3 (30 points) Part 1 New tire re-treading equipment, acquired at a cost of $120,000 on 1/2/06, has an estimated useful life of 5 years and an estimated residual value of $10,000. The manager requested information regarding the alternative methods on the amount of depreciation expense each year Instructions: Determine the amount of depreciation expense, accumulated depreciation, and book value for the years ended December 31, 2006, 2007, 2008, 2009, 2010 by the straight line method Problem 3 (30 points) Part 1 New tire re-treading equipment, acquired at a cost of $120,000 on 1/2/06, has an estimated useful life of 5 years and an estimated residual value of $10,000. The manager requested information regarding the alternative methods on the amount of depreciation expense each year. Instructions: Determine the amount of depreciation expense, accumulated depreciation, and book value for the years ended December 31, 2006, 2007, 2008, 2009, 2010 by the straight line method the double declining balance method units of production Assume that it is estimated that the equipment will be used for 10,000 operating hours. (2,500 (06) 3,000 (07), 2.750 (08), 1,500 (09), 250 (2010). (Present and submit all of your work in the Problem 3 Part 1 Tab) Part 2 Assume that the manager decided to use the double declining balance method for the tire re- treading equipment above. Record the following journal entries: 1. On 4/15/2006, the company paid $1,000 for an ordinary repair, 2. On 1/1/07, the company paid $10,000 for a major engine overhaul. 3. On 7/01/2009, the company sold the equipment for $20,000 (Present and submit all of your work in the Problem 3 Part 2 Tab) Submit one set of answers per group for all four problems. Make sure to include each group members name at the top of each spreadsheet. Problem 4 (30 points) Evaluate the financial performance of Coca-Cola; (KO) and Pepsi (PEP) for the year ended December 31, 2020. Follow the instructions below to access each company's information and perform a financial analysis based on the financial measures we have learned in this course. 1. Select Http://www.yahoo.com/ and then select Finance. In the Search section at the top of the screen select KO for Coca-Cola and PEP for Pepsi 2. Select "Financials" and select Income Statement when accessing the Income Statement 3. Select "Financials" and select Balance Sheet when accessing the Balance Sheet 4 Do the following for KO and PEP for the year ended 12/31/20 only Perform a vertical analysis of the Income Statement for KO and PEP for the year ended 12/31/20 Include in your vertical analysis all of following as a % of total revenue: o Cost of Revenue as a % of Total Revenue Gross Profit as a % of Total Revenue Selling, gen and administrative expenses as a % of Total Revenue o Operating Income as a % of Total Revenue Paragraph Styles 5 Current Ratio Accounts Receivable turnover. Assume the total revenue on the income statement represents all sales on account for the year . Average collection period Merchandise Inventory turnover. Assume the cost of Revenue on the Income Statement is the same as the cost of Goods Sold Debt to Asset Ratio Return on Assets Ratio Asset Turnover In preparing the vertical analysis and other financial analysis above; define each measure and identify the strengths and weaknesses of KO and PEP as related to each other. Below is an example of you should set it up PEP Working Capital KO Current Assets $ 19,420,000 $ 23,001,000 - Current Liabilities $ 16,601,000 $ 23,372.000 Net Working Capital = $2,819,000 $ (371,000) Strength or Weakness Working Capital measures the ability of a company to meet its short-term obligations with current assets. Coke is performing a little better since their current assets exceed their current liabilities Working Capital measures the ability of a company to meet its short-term obligations with current assets. Coke is performing a little better since their current assets exceed their current liabilities contrasted with Pepsi's negative working capital. Requirements for Each Group 1. 2. 3. The vertical analysis prepared in 4 A above. All of your computations for the financial analysis. (4 B through 4 H) Identification of strengths and weaknesses. (Include a definition of each financial measure, a description of which company is doing better in each financial measure including the vertical analysis and explain why) All group members must submit the Report Project Team Assessment If the requirements above are not met points will be deducted from Parts of the group projects 4. 5 Enter all requirements on the Group Project Problem 4 Tab. Submit one set of answers per group for all four problems. Make sure to include each group members name at the top of each spreadsheet. Each group member should download the Group Team Assessment and evaluate themselves and everyone else in their group. This evaluation should be submitted anonymously Group Project 3 Duplicate Deposit Slips Problem 1 (50 points) Currency Cons 0000 Deposit sup Cash Date List of Checks GY To 91500 91510 Tupreme Company's bookkeeper prepared the bar rector May 1, 2010 The Deeper had the towing responses All being the Bunding of cash recept the won of the y bank reconcion and the depot the bank Asume that the per prepared the checks which were signed by the owner The owner on a day basisverthed and great checs that were written counted on and verified the detto cash in the cash recipes and the Credit to cash in the cash payments Jual Assume that the office mas performed at the Currency Coins TODO Deposit Ship Cash Date of Checks VO 000 Total 100000 Currency Coins 100 May 21 Bank Statement BASES Somosherreds ong Chery and other song ce of steen Deposit si Cash Date Unt of Checas W/10 897 01 00 Tot Data Currency Coins 500 Amount 53915 $1000 See Deposit shpCash Date Ust of Checks SAVO 92 1000 15011 5737 Total 1 020 22 401 S 5.815 50 S11 Transion Type Depo Depos Depow Depowe Deport DEPOLE NICHE SIVIC Change Collection Currency Coins 10000 Depost Splash Date List of Check 300 Cricton ONESE 1297100 Tota/290 Data Check . Amount 103 CONCE 3112 Currency Coins Depost cash Date LIST Check SO DY 94 . 3000 TO 133 SH 21 100 GOT 402 Currency Coins 35 305 545 Deposit Sp Cash Untot Check Sale 31 9151 Total Copies of Written Checks Supreme Company Date: 2010 390 Supreme Company Pay to the Order of Alam Date 1/1 710 391 151400 Pay to the Order of Jones & Company NOT Bank Five Hundred Rutten and not $125.00 Meme 010 NBT Bank One Hundred Twenty Five and no con 10 Super Memo: Supplies Supreme Company Date:30/10 397 Supreme Company Date: 150 Pay to the Order of onesemo 571100 302 NET Seven Hund von anden Pay to the Order of Jordan $112.00 Memo: NOT Bank One Hundred and no cents Memo: Invoice 2324 Supreme Supreme Company Date: 5010 Pay to the Order of the upper 57000 Date: 4/21/10 393 Supreme Company Pay to the Order of Jones & Company NBT Bank Sevenlunded and to $ 500.00 Memo 20 alume NET Bank Five Hundred and no cents Memo Invece Supreme Company Date: 2/12/10 399 Super Pay to the Order of Sum 3.1.00000 294 Supreme Company Date: 42410 Pay to the Order of King and Company NBT Bank One Thousand and not 521500 Mere NBT Bank Two Hundred and no per Supreme Company Date: 2010 Memoine 70 Jame Pay so the Order of the $94300 355 NOT Bank Supreme Company Date: 2010 Pay to the Order of Jones & Com Five Hundred forty tree and on 510000 Memory NET Bank One Hundred and no one Supreme Company Date: 20 431 Memowoce 20 JES Pay to the Order of ion & Company 1150 NOT Bank Four Hundry SUPREME COMPART DUURO www Pay to the Order of Com WAT Ba V Order Me May Supreme Company Date 403 CHARREGADO Cash Die GO 1000 17 32 1 57 02 SA 1901 To Pay to the Order of the 54100 NBT Bank Mere Casa Pamantecorded in common Cheese Cash Credit 484 Supreme Company Date Pay to the Order of Garner Com Thunden Memes GUE NBT Bank 1993 103 06 Supreme Company D300 406 1994 500 Fay to the Order of the $10.00 To NOT Bank Sepedepson page? Seperon copies of chicken 6 And wamen Supreme Co Date: Aty were de departe Pay to the Order of The 59 NOTAR Fundo Memor Det Car General Ledger OC supreme con Date SITO OT Pay to the Order of Ch NATA The Blowing is the bank terecht in perpared by the bookkeeper tox Apes 30, 2010 SUPREME COMPANY BANK RECONCILIATION SUPREME COMPANY May 31, 2010 BANK RECONCILIATION April 30, 2010 Change Added 116 Cash Dance ording to an Les 1915 39 $13.670 De Checks 003200 es 30 Og Check 1 3145 AR 12 300 3 1100 310 NO 71 532 31.1 Asted 11 04 GEN RE AN Ao lo con Decor CON Growth pas 111113 AR parts Problem 2 (40 points) 1. Read the following instructions and enter and submit all information on the Group Project Excel spreadsheet Problem 2 parts 2 - 6 tab and Problem 2 part 7-8 tab. 2. Open the following selected accounts recording the opening balances as of January 1 of the current year. In the (Group Project Excel Spreadsheet Problem 2 Parts 2 - 6 tab). 114.1 313 718 12,200 Credit Allowance for doubtful accounts Retained Earnings Bad debts expense 3. Record the following transactions in general journal form in the Group Project Excel Spreadsheet Problem 2 Parts 2 - 6 tab. 4. Post these transactions to the three selected accounts above and to Accounts receivable in the Group Project Excel Spreadsheet Problem 2 parts 2 - 6 tab. 5. Enter the ending balances in the three accounts above and enter the ending balance in the Accounts Receivable account. Enter those balances in the Group Project Excel Spreadsheet Problem 2 parts 2 - 6 tab. Apr 1,09 Accepted a $20,000, one-year, 8% note dated April 1 from Bruce Hanson for the sale of inventory: Cost of Goods Sold was $16,500. June 27 Wrote off the $2,375 balance owed by Miller Corp., which has no assets. Oct. 5 Received 25% of the $12,000 balance owed by F.M. Knox Co., a bankrupt, and wrote off the remainder as uncollectible. Dec. 31 Based on an analysis of the $257 724 of accounts receivable, it was estimated that $14,500 will be uncollectible Record the adjusting entry using the Aging method Dec. 31 Record the adjusting entry for interest accrued on the Bruce Hanson note Dec. 31 Record the entries to close the appropriate accounts into Retained Earnings. April 1,10 Collected the maturity value on the Hanson note. 6. Determine the net accounts receivable (the amount Summer expects to collect as of December 31 and enter in the Group Project Spreadsheet Problem 2 Parts 2 - 6 tab) 7. Compute the accounts receivable turnover and the day's sales in receivables for the year. Assume that there were $1,800,000 sales account. (You will need to refer to the Group Project Excel Spreadsheet Problem 2 part 7 - 8 tab). 8. How is Summer Company doing with collection of their accounts receivable compared to the industry? Assume the industry average for the accounts receivable turnover is 11 and the industry average for the day's sales in receivables is 37 days? (Enter in the Group Project Excel Spreadsheet Problem 2 part 7-8 tab). Submit one set of answers per group for all four problems. Make sure to include each group members name at the top of each spreadsheet. Problem 3 (30 points) Part 1 New tire re-treading equipment, acquired at a cost of $120,000 on 1/2/06, has an estimated useful life of 5 years and an estimated residual value of $10,000. The manager requested information regarding the alternative methods on the amount of depreciation expense each year Instructions: Determine the amount of depreciation expense, accumulated depreciation, and book value for the years ended December 31, 2006, 2007, 2008, 2009, 2010 by the straight line method Problem 3 (30 points) Part 1 New tire re-treading equipment, acquired at a cost of $120,000 on 1/2/06, has an estimated useful life of 5 years and an estimated residual value of $10,000. The manager requested information regarding the alternative methods on the amount of depreciation expense each year. Instructions: Determine the amount of depreciation expense, accumulated depreciation, and book value for the years ended December 31, 2006, 2007, 2008, 2009, 2010 by the straight line method the double declining balance method units of production Assume that it is estimated that the equipment will be used for 10,000 operating hours. (2,500 (06) 3,000 (07), 2.750 (08), 1,500 (09), 250 (2010). (Present and submit all of your work in the Problem 3 Part 1 Tab) Part 2 Assume that the manager decided to use the double declining balance method for the tire re- treading equipment above. Record the following journal entries: 1. On 4/15/2006, the company paid $1,000 for an ordinary repair, 2. On 1/1/07, the company paid $10,000 for a major engine overhaul. 3. On 7/01/2009, the company sold the equipment for $20,000 (Present and submit all of your work in the Problem 3 Part 2 Tab) Submit one set of answers per group for all four problems. Make sure to include each group members name at the top of each spreadsheet. Problem 4 (30 points) Evaluate the financial performance of Coca-Cola; (KO) and Pepsi (PEP) for the year ended December 31, 2020. Follow the instructions below to access each company's information and perform a financial analysis based on the financial measures we have learned in this course. 1. Select Http://www.yahoo.com/ and then select Finance. In the Search section at the top of the screen select KO for Coca-Cola and PEP for Pepsi 2. Select "Financials" and select Income Statement when accessing the Income Statement 3. Select "Financials" and select Balance Sheet when accessing the Balance Sheet 4 Do the following for KO and PEP for the year ended 12/31/20 only Perform a vertical analysis of the Income Statement for KO and PEP for the year ended 12/31/20 Include in your vertical analysis all of following as a % of total revenue: o Cost of Revenue as a % of Total Revenue Gross Profit as a % of Total Revenue Selling, gen and administrative expenses as a % of Total Revenue o Operating Income as a % of Total Revenue Paragraph Styles 5 Current Ratio Accounts Receivable turnover. Assume the total revenue on the income statement represents all sales on account for the year . Average collection period Merchandise Inventory turnover. Assume the cost of Revenue on the Income Statement is the same as the cost of Goods Sold Debt to Asset Ratio Return on Assets Ratio Asset Turnover In preparing the vertical analysis and other financial analysis above; define each measure and identify the strengths and weaknesses of KO and PEP as related to each other. Below is an example of you should set it up PEP Working Capital KO Current Assets $ 19,420,000 $ 23,001,000 - Current Liabilities $ 16,601,000 $ 23,372.000 Net Working Capital = $2,819,000 $ (371,000) Strength or Weakness Working Capital measures the ability of a company to meet its short-term obligations with current assets. Coke is performing a little better since their current assets exceed their current liabilities Working Capital measures the ability of a company to meet its short-term obligations with current assets. Coke is performing a little better since their current assets exceed their current liabilities contrasted with Pepsi's negative working capital. Requirements for Each Group 1. 2. 3. The vertical analysis prepared in 4 A above. All of your computations for the financial analysis. (4 B through 4 H) Identification of strengths and weaknesses. (Include a definition of each financial measure, a description of which company is doing better in each financial measure including the vertical analysis and explain why) All group members must submit the Report Project Team Assessment If the requirements above are not met points will be deducted from Parts of the group projects 4. 5 Enter all requirements on the Group Project Problem 4 Tab. Submit one set of answers per group for all four problems. Make sure to include each group members name at the top of each spreadsheet. Each group member should download the Group Team Assessment and evaluate themselves and everyone else in their group. This evaluation should be submitted anonymously