Group Project - Year i The following list summarizes the transactions that took place during a start up's first year of operations. Using the information below, prepare a list of the appropriate journal entries, including any necessary adjusting entries, and create a balance sheet and income statement. Use examples from pages 241 and 182 as templates for what your financial statements should look like. Once you have created the financial statements, provide the appropriate closing entries. The startup uses straight line when depreciating long-term assets and a perpetual inventory system. You may use the attached Journal Entry Template to map out the necessary journal entries, but for a final version of your assignment please type up your entries and financial statements in an Excel Worksheet Transactions and information for the year: a. Jan1, issued 5oo shares of common stock (so.50 par value) for s5000. b. Feb 1, paid sa5oo to purchase land. c. Feb 28h, issued 100 shares of preferred stock (sioo par value) for s20,000. d. June 3ot, paid s7s,ooo for a building (estimated useful life of 4o years; salvage value = $5,000) by signing a 5 year Note Payable, promising to pay 5% interest at of each year). the end of each of those 5 years (i.e. on June 30 e. July 1st, purchased 400 units of inventory at si5 each. s1,ooo was paid in cash, the rest was on account. f. July 30th, sold 120 units of inventory for $63 each on account g. Aug 2nd, incurred s450 of wages expense. h. Aug 5th, collected s2500 of accounts receivable. i. Aug 3ist, paid s200 of wages payable. Sept 4th, paid s6oo of accounts payable. k. Dec 3ist, incurred and paid s2,ooo of utilities expense. I. Estimated tax rate is 35%. Group Project - Year i The following list summarizes the transactions that took place during a start up's first year of operations. Using the information below, prepare a list of the appropriate journal entries, including any necessary adjusting entries, and create a balance sheet and income statement. Use examples from pages 241 and 182 as templates for what your financial statements should look like. Once you have created the financial statements, provide the appropriate closing entries. The startup uses straight line when depreciating long-term assets and a perpetual inventory system. You may use the attached Journal Entry Template to map out the necessary journal entries, but for a final version of your assignment please type up your entries and financial statements in an Excel Worksheet Transactions and information for the year: a. Jan1, issued 5oo shares of common stock (so.50 par value) for s5000. b. Feb 1, paid sa5oo to purchase land. c. Feb 28h, issued 100 shares of preferred stock (sioo par value) for s20,000. d. June 3ot, paid s7s,ooo for a building (estimated useful life of 4o years; salvage value = $5,000) by signing a 5 year Note Payable, promising to pay 5% interest at of each year). the end of each of those 5 years (i.e. on June 30 e. July 1st, purchased 400 units of inventory at si5 each. s1,ooo was paid in cash, the rest was on account. f. July 30th, sold 120 units of inventory for $63 each on account g. Aug 2nd, incurred s450 of wages expense. h. Aug 5th, collected s2500 of accounts receivable. i. Aug 3ist, paid s200 of wages payable. Sept 4th, paid s6oo of accounts payable. k. Dec 3ist, incurred and paid s2,ooo of utilities expense. I. Estimated tax rate is 35%
