Hi, I have an accounting assignment about transaction and cycle. The knowledge required is somewhere between principle accounting and intermediate accounting.

Details can be seen in the attachments. Please only take it if you are confident that you can help me get 85% of the grade. If the final grade is above 90%, I will give a $10 reward. Please please please do not take it if you dont think you can get above 85%. This assignment is really important to me!

Name: Date: Unit 2: Summative Assignment (Chapter 4-5) ACCOUNTING TRANSACTIONS ASSIGNMENT Accounting Cycle and Cases PART A: ACCOUNTING CYCLE OF BONNIE'S BATTING CAGES TOTAL: /60 marks (40 marks K/T) 1. Using the Chapter 5 Assignment Excel template, set up the T-accounts with the balances from the July 31, 2015 Balance Sheet Located in the 1st tab of the template Excel File (2 marks K) 2. Record the August TRANSACTIONS listed below into each T-account Located in the 2nd tab of the template Excel File (17 marks - T) 3. Then calculate the BALANCE of each account at the end of the August transactions. (4 marks K) 4. Create a TRIAL BALANCE to make sure your debits = credits. a) Use the template provided in the 3rd tab of the template Excel File (6 marks K) 5. Create an INCOME STATEMENT for the Month of August. b) Use the template provided in the 4th tab of the template Excel File (6 marks K) 6. Create a new BALANCE SHEET in REPORT FORM with an Expanded Owner's equity section dated August 31, 2015. c) Use the template provided in the 5th tab of the template Excel File (5 marks K) Transactions for August 1. Bonnie Birch, the owner, invested $40 000 in the business. 2. Took out a $15 000 loan from TD Bank, which was deposited in the business' bank account. 3. Paid $1 500 to Romeyn Properties Ltd. for the monthly rent. 4. Bought office and various sport supplies for $2 000 cash. 5. Purchased $43 000 worth of bats, helmets, and other sports equipment from Cannon Sports on account. The amount is due in 30 days. 6. Paid $800 cash for the heating bill received today. 7. Bought pitching machines from Ewert Equipment for $12 000 and have 30 days in which to pay. 8. Equipment was repaired for $350 from Ewert Equipment and will be paid for later. 9. Bought $7 800 of miscellaneous sports supplies on account from Sandhu Sporting Goods. Due in 30 days. 10. Sold a one-month membership to the Infield Flyers for $800 on account. Payment to be received in 15 days. 11. Sold a two-month membership to the Remdal Red Sox for $2 200 on account. The bill is due in 30 days. 12. Cash sales for the month amounted to $40 200. 13. Bank charges for services fees and interest amounted to $250, which was taken directly out of the business' bank account. 14. Paid $2 200 cash for monthly wages. 15. Sold a one-month membership cash for $1 300. 16. Paid the full amount to Ewert Equipment from transaction 8, $350. Name: 17. Owner withdrew $1 000 for personal use. Date: Name: Unit 2: Summative Assignment (Chapter 4-5) ACCOUNTING TRANSACTIONS ASSIGNMENT ACCOUNTING CYCLE & CASES PART B: CASES Date: (20 marks - C) CASE 1 The owner and accountant of Arctic Lynx Snowmobile Company were preparing Income Statements for an important meeting with potential investors. The company badly needed new investment in the company to develop new snowmobile models for next year. Two income Statements were available to illustrate last year's performance: 1 The first income statement, for the six-month period of October1 to March 31, showed a very healthy profit of $520,000. 2 However the second income statement for the period of April1 to September 30, showed a loss of $100,000. The owner, eager to please his new investors, argued with his accountant that he should only show the better income statement. He felt it didn't matter which time period they chose to measure the health of the business. Questions 1. What time period should the business choose to obtain an accurate picture of profitability for the company? 2. Why was the period from October to March so profitable? 3. Calculate the true profit for last year's operations. 4. Did the company's accountant have an obligation to reveal both income statements to the investors? Explain. What would you have done in this situation? (GAAP) CASE 2 (answer questions on next page) Tom Lafleur, a university student living in Alberta started up a new business. He formed the company Tom's Tree Service. He trims and cuts down trees. He has been fortunate to secure a contract to cut down a large number of trees for a local golf course. Tom estimates that it will take him from early June to the end of August to complete the job. The owners have agreed to give Tom three progress payments on the dates indicated below. Date Payment Amount June 30 July 31 August 31 Totals $3 000 3 000 4 000 $10 000 Tom's estimate of percentage of work completed for each month 40% 50% 10% 100% Tom would like to prepare monthly statements but cannot decide on the amount of revenue that should be recognized for each month of the contract. (note: for the purpose of this case we will ignore expenses). Name: Date: Questions 1. What inaccuracies would exist in the June and July income statements if Tom were to decide to recognize the full $10 000 in the August income statement? 2. Research (using Google) 4 methods of revenue recognition that would allow Tom to recognize some revenue on the June and July income statements List each method with a definition below. a) Method b) Method c) Method d) Method 1: 2: 3: 4: 3. How much revenue would Tom recognize in July using each these 2 methods (researched in question 2)? a) Method 1: Cash Basis (or similar name) Revenue recognized (recorded) = $ b) Method 2: Work completed (or similar name) Revenue recognized (recorded) = $ c) Which method is preferable? Explain why. Reasoning: Bonnie's Batting Cages Balance Sheet July 31, 2015 Assets Bank Liabilities ### $ Accounts Receivable 33,000.00 Accounts Payable - Cannon Sports - Infield Flyers ### - Remdal Red Sox ### Supplies ### Equipment ### 1,000.00 - Ewert Equipment 500.00 - Sandhu Sporting Goods 7,500.00 Bank Loan 50,000.00 Total Liabilities ### ### ### ### ### Owner's Equity B. Birch, Capital Total Assets ### $ ### 92,000.00 Total Liabilities and Owner's Equity### Note: *BEFORE YOU BEGIN: Use these beginning balances to set-up the ledger (include $ 10,000.00 22,000.00 500.00 25,000.00 $ 57,500.00 34,500.00 $ 92,000.00 *Tip: Use the Help Menu (F1) to learn how to put 2 worksheets side by side on your Search --> "view two sheets side by side" -up the ledger (include a beginning balance for capital) ts side by side on your screen, this can help speed up entry The Ledger of Bonnie's Batting Cages & Softball Services Asset Accounts = Liability Accounts Bank Dr. Equity Accounts A/P - Cannon Sports Cr. Dr. Cr. beginning balance + B. Birch, Capital Dr. Cr. beginning balance A/R - Infield Flyers Dr. Cr. A/P - Ewert Equipment Dr. Cr. beginning balance beginning balance B. Birch, Drawings Dr. Cr. beginning balance Revenue Accounts A/R - Remdal Red Sox Dr. Cr. A/P - Sandhu Sporting Goods Dr. Cr. beginning balance Membership Fees Dr. Cr. Dr. beginning balance Supplies Dr. Bank Loan Cr. beginning balance Dr. Cash Sales Cr. Cr. beginning balance Expense Accounts Equipment beginning balance Dr. Cr. Bank Charges Expense Dr. Cr. Heating Expense Dr. Cr. General Ledger T-Accounts Acct. # 1005 1010 1015 1020 1025 2005 2010 2015 2020 3005 3010 4005 4010 5005 5010 5015 5020 5025 Bonnie's Batting Cages and Softball Services Trial Balance August 31, 2015 Account Debits Bank A/R - Infield Flyers A/R - Remdal Red Sox Supplies Equipment A/P - Cannon Sports A/P - Ewert Equipment A/P - Sandhu Sporting Goods Bank Loan B. Birch, Capital B. Birch, Drawings Membership Fees Cash Sales Bank Charges Expense Heating Expense Rent Expense Repair Expense Wages Expense $ Credits - $ - Bonnie's Batting Cages and Softball Services Income Statement When? Accounts Amounts Totals Bonnie's Batting Cages Balance Sheet When? Assets Calculations Amounts Totals Calculations Amounts Totals Calculations Amounts Totals Total Assets Liabilities Total Liabilities Owner's Equity B. Birch, Capital Balance August 1, 2015 Investment Net Income Drawings Increase in Equity Balance August 31, 2015 Total Liabilities and Owner's Equity Name: Date: ACCOUNTING TRANSACTIONS ASSIGNMENT ACCOUNTING CYCLE & CASES PART B: CASES (20 marks - C) CASE 1 The owner and accountant of Arctic Lynx Snowmobile Company were preparing Income Statements for an important meeting with potential investors. The company badly needed new investment in the company to develop new snowmobile models for next year. Two income Statements were available to illustrate last year's performance: 1 The first income statement, for the six-month period of October1 to March 31, showed a very healthy profit of $520,000. 2 However the second income statement for the period of April1 to September 30, showed a loss of $100,000. The owner, eager to please his new investors, argued with his accountant that he should only show the better income statement. He felt it didn't matter which time period they chose to measure the health of the business. Questions 1. What time period should the business choose to obtain an accurate picture of profitability for the company? 2. Why was the period from October to March so profitable? 3. Calculate the true profit for last year's operations. 4. Did the company's accountant have an obligation to reveal both income statements to the investors? Explain. What would you have done in this situation? (GAAP) CASE 2 (answer questions on next page) Tom Lafleur, a university student living in Alberta started up a new business. He formed the company Tom's Tree Service. He trims and cuts down trees. He has been fortunate to secure a contract to cut down a large number of trees for a local golf course. Tom estimates that it will take him from early June to the end of August to complete the job. The owners have agreed to give Tom three progress payments on the dates indicated below. Date Payment Amount June 30 July 31 August 31 Totals $3 000 3 000 4 000 $10 000 Tom's estimate of percentage of work completed for each month 40% 50% 10% 100% Tom would like to prepare monthly statements but cannot decide on the amount of revenue that should be recognized for each month of the contract. (note: for the purpose of this case we will ignore expenses). Questions Name: Date: 1. What inaccuracies would exist in the June and July income statements if Tom were to decide to recognize the full $10 000 in the August income statement? 2. Research (using Google) 4 methods of revenue recognition that would allow Tom to recognize some revenue on the June and July income statements List each method with a definition below. a) Method b) Method c) Method d) Method 1: 2: 3: 4: 3. How much revenue would Tom recognize in July using each these 2 methods (researched in question 2)? a) Method 1: Cash Basis (or similar name) Revenue recognized (recorded) = $ b) Method 2: Work completed (or similar name) Revenue recognized (recorded) = $ c) Which method is preferable? Explain why. Reasoning: Name: Date: ACCOUNTING TRANSACTIONS ASSIGNMENT ACCOUNTING CYCLE & CASES PART B: CASES (20 marks - C) CASE 1 The owner and accountant of Arctic Lynx Snowmobile Company were preparing Income Statements for an important meeting with potential investors. The company badly needed new investment in the company to develop new snowmobile models for next year. Two income Statements were available to illustrate last year's performance: 1 The first income statement, for the six-month period of October1 to March 31, showed a very healthy profit of $520,000. 2 However the second income statement for the period of April1 to September 30, showed a loss of $100,000. The owner, eager to please his new investors, argued with his accountant that he should only show the better income statement. He felt it didn't matter which time period they chose to measure the health of the business. Questions 1. What time period should the business choose to obtain an accurate picture of profitability for the company? 2. Why was the period from October to March so profitable? 3. Calculate the true profit for last year's operations. 4. Did the company's accountant have an obligation to reveal both income statements to the investors? Explain. What would you have done in this situation? (GAAP) CASE 2 (answer questions on next page) Tom Lafleur, a university student living in Alberta started up a new business. He formed the company Tom's Tree Service. He trims and cuts down trees. He has been fortunate to secure a contract to cut down a large number of trees for a local golf course. Tom estimates that it will take him from early June to the end of August to complete the job. The owners have agreed to give Tom three progress payments on the dates indicated below. Date Payment Amount June 30 July 31 August 31 Totals $3 000 3 000 4 000 $10 000 Tom's estimate of percentage of work completed for each month 40% 50% 10% 100% Tom would like to prepare monthly statements but cannot decide on the amount of revenue that should be recognized for each month of the contract. (note: for the purpose of this case we will ignore expenses). Questions Name: Date: 1. What inaccuracies would exist in the June and July income statements if Tom were to decide to recognize the full $10 000 in the August income statement? 2. Research (using Google) 4 methods of revenue recognition that would allow Tom to recognize some revenue on the June and July income statements List each method with a definition below. a) Method b) Method c) Method d) Method 1: 2: 3: 4: 3. How much revenue would Tom recognize in July using each these 2 methods (researched in question 2)? a) Method 1: Cash Basis (or similar name) Revenue recognized (recorded) = $ b) Method 2: Work completed (or similar name) Revenue recognized (recorded) = $ c) Which method is preferable? Explain why. Reasoning