I need help completing part 1,2 and 3. Please review the attachment for the questions and the background of the company.

ACCT215 - Intermediate Accounting Portfolio Project This Assessment is worth 20% of your overall grade. Completing this Assessment will help you to: Course Outcomes: Describe and apply generally accepted accounting principles and prepare a worksheet that includes the journal entries and statements. Create a classified balance sheet and cash flow statement that differentiates direct and indirect methods. Prepare a multiple-step income statement and comprehensive retained earnings statement that includes earnings per share and prior period adjustments. Program Outcomes: Solve technology challenges, maintain systems, analyze data, and communicate results using business related computer applications. Judge appropriate ethical behaviors that follow the laws and regulations applicable to accounting practice. Integrate theory, knowledge and technology to interpret financial and non-financial information to aid decision makers within an organization. Justify the contributions of the increasingly internationally diverse society and defend its global and economic impact. Institutional Outcomes: Information Literacy and Communication - Utilize appropriate current technology and resources to locate and evaluate information needed to accomplish a goal, and then communicate findings in visual, written and/or oral formats. Relational Learning - Transfer knowledge, skills and behaviors acquired through formal and informal learning and life experiences to new situations. Thinking Abilities - Employ strategies for reflection on learning and practice in order to adjust learning processes for continual improvement Quantitative and Scientific Reasoning - Follow established methods of inquiry and mathematical reasoning to form conclusions and make decisions. Community and Career - Participate in social, learning, and professional communities for personal and career growth. 1 Deadline: Deliverable items for the Portfolio Project will be required at four points during our course. The timeline is as follows: Assignment Due Date Assignment for Submission Week 3 Due by the end of Week 3 at 11:59 pm, ET. Part 1 - Journal entries and completed worksheet (use T Accounts spreadsheet provided) Week 4 Due by the end of Week 4 at 11:59 pm, ET. Part 2 - Adjusted trial balance***, Balance Sheet and income statement & notes to both Grading 5% of overall grade Part 3 - Week 5 Due by the end of Week 5 at Statement of Cash flows & notes, Post-closing Trial 11:59 pm, ET. balance*** Part 4Week 6 Due by the end of Week 6 at Please upload your Portfolio Project to your 20% of overall grade 11:59 pm, ET. ePortfolio. ***Important Note: The adjusted trial balance and post-closing trial balance should be in proper format, not in the worksheet. Directions: The Portfolio Project is a real life simulation of the work you will do on the job to correctly prepare and present financial statements including the required notes and disclosures. Review the background and additional information below. Complete the required components and upload your Portfolio Project to your ePortfolio. Required: Your assignment is to set up a journal and general ledger to account for transactions during 2011. This should all be set up in an Excel Workbook. You may use different worksheets but only one workbook. The general ledger can be comprised of a set of T-accounts. To assist your preparation of financial statements, you should generate post-transaction (unadjusted), pre-closing (adjusted) and post-closing trial balances for each year. (A worksheet like you used in Accounting Principles 1 may be helpful.) You should also create a set of financial statements (balance sheet, income statement, statement of cash flows and notes to the statements) for 2011. The balance sheet should also have a comparative for 2010. You should have notes to the financial statements as necessary but as a minimum should include significant accounting policies, current assets, depreciable assets, and long-term debt. Finally, compose a reflective paragraph describing your experience working on the Portfolio Project. Specifically, describe the concepts learned from this assignment and assess whether financial statements are easier to understand as a result of this assignment. 2 Background Information: The Widget Company is a small company with only a few employees. Its line of business is to purchase several items from a line of widgets and resale them to other companies. The Company owns one small shop with two rooms, one for sales and office work, and one for product receiving and shipping. The company is owned by a group of investors and it is organized as a corporation. Widget Company uses a straight-forward financial accounting information system. Of course, accrual accounting is used. Other generally accepted accounting principles used are the $-Value LIFO of valuing product inventory, FIFO for valuing supplies, the straight-line depreciation method for matching the cost of long-term assets to periods of use (half year of depreciation in year of acquisition and disposition), and earnings per share. Widget's fiscal year extends from January 1 through December 31. Additional information: Accounts receivable is recorded at gross. The Allowance for doubtful accounts is computed at 2% of ending accounts receivable. The Office supplies inventory is valued according to FIFO. 3 The Product inventory balance of 62,754 on December 31, 2010 is based on the following information: $-Value LIFO index at January 1, 2006 1.0000 $-Value LIFO index at December 31, 2006 1.0425 $-Value LIFO index at December 31, 2007 1.0750 $-Value LIFO index at December 31, 2008 1.0675 $-Value LIFO index at December 31, 2009 1.1400 $-Value LIFO index at December 31, 2010 1.1825 Ending inventory valued at FIFO Ending inventory valued at base Base layer 2006 layer at base 2009 layer at base 2010 layer at base Ending inventory at $-Value LIFO $72,000 $60,888 $35,200 $19,250 $3,000 $3,438 $62,754 Prepaid insurance is for a six-month policy that expires on April 30, 2011. The sole Building was purchased in early 2003 for $550,000. At that time, the useful life was expected to be 25 years, and the eventual salvage value was expected to be $0. After a half year of depreciation in 2003, seven years of straight-line depreciation have been recorded at $22,000 per year. Equipment is recorded using straight-line depreciation. Accounts payable is comprised of $28,000 owed to various artisans for credit purchases, and $1,000 of accrued utilities. Wages: A healthcare deduction from employee paychecks is computed at 5% of gross wages. The Widget Company contributes an additional 5% of gross wages (record under Fringe Benefit Expense). Federal income taxes average 9% and state income taxes average 4% of income taxable wages (deductions for healthcare are not taxable for federal or state income tax purposes). State unemployment taxes are 7% on the first $12,000 of yearly accumulated wages. Federal unemployment taxes are 6.2% (credit of 5.4% granted for state unemployment taxes) on the first $7,000 of yearly accumulated wages. For social security, the tax rate on employees is 4.2%, and on employers is 6.2%. The Medicare tax rate is 1.45% on both employee and employer. Prepayments and deposits are from customer deliveries that are to be made in 2011. Note Payable: There are two loans outstanding. One is an interest-bearing note of $100,000, due on October 1, 2014. The annual interest rate is 10%, and semi-annual interest payments are made on April 1 and October 1 of each year. Accrued interest of $2,500 is for three months. 4 The second is for a 9% installment loan, with annual installments of $44,584 is due on December 31 of each year. The last scheduled payment was made. Its amortization table is: Date Jan 1, 2008 Dec 31, 2008 Dec 31, 2009 Dec 31, 2010 Dec 31, 2011 Dec 31. 2012 Dec 31. 2013 Cash Payment 44,584 44,584 44,584 44,584 44,584 44,584 18,000 15,607 13,000 10,157 7,059 3,681 Interest Expense 26,584 28,977 31,584 34,427 37.525 40,903 Amort. Loan Balance 200,000 173,416 144,439 112,855 78,428 40,903 0 Common stock issued and outstanding (December 31, 2010) consists of 47,000 shares of $1 par value. 5 Trial Balance (post-closing) December 31, 2010 Here is a trial balance prepared on December 31, 2010. It includes all accounts that you are to use. Closing entries can be made using an income summary account, or you can omit the income summary account and make closing entries directly to retained earnings. Debit Credit Cash 210,326 Accounts receivable 34,512 Allowance for uncollectible accounts 690 Office supplies inventory 2,000 Product inventory 62,754 Prepaid insurance 3,000 Land 75,000 Building 550,000 Accumulated depreciationbuilding 165,000 Equipment Group 316,000 Accumulated depreciationequipment 126,400 Accounts payable 29,000 Wages payable 30,000 Federal income taxes payable 3,420 State income taxes payable 1,520 Social security payable 4,960 Medicare payable 1,160 State unemployment tax payable 350 Federal unemployment tax payable 16 Health care payable 4,000 Prepayments & deposits 17,500 Interest payable 2,500 Note payable 212,855 Common stock Additional paid in capital Retained earnings Dividends Income summary Sales revenue Cost of goods sold expense Utilities expense Wages expense Payroll taxes expense Fringe Bad debt expense benefits expense Supplies expense Insurance expense Depreciation expense Gain on sale Loss on sale Interest expense 47,000 24,000 583,221 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,253,592 1,253,592 6 Transactions to account for during 2011 Jan 1 Reversing entries made where appropriate. Jan 1 Purchased on credit and received $160,000 of product inventory. Jan 1 Purchased on credit and received $5,000 of office supplies inventory. Jan 5 Made all payments related to 4th quarter payroll. Jan 10 Paid $1,000 utility bill for 4th quarter. Mar 31 Mar 31 Mar 31 Sold product inventory for $320,000 on credit and shipped to customers. Made payments to suppliers for $125,000. Receipts on account and prepayments from customers total $290,000. AR of $1,800 written off. Apr 1 Apr 1 Apr 1 Apr 1 Apr 5 Purchased on credit and received $185,000 of product inventory. Purchased on credit and received $3,000 of office supplies inventory. Made $5,000 interest payment on first loan. Paid dividends of 13,000 Made all payments related to 1st quarter payroll. Gross wages of $65,000, income taxes wages of $61,750, social security wages of $65,000, Medicare wages of $65,000, state unemployment wages of $52,000, federal unemployment wages of $49,000. Apr 10 Paid $1,200 utility bill for 1st quarter. May 1 Sold 80,500 shares of common stock for $140,000 May 1 Purchased $5,000 insurance policy for May 1 to October 31. June 30 June 30 June 30 Sold product inventory for $280, 000 on credit and shipped to customers. Made payments to suppliers for $130,000. Receipts on account and prepayments from customers total $310,000. AR of $1,700 written off. July 1 July 1 July 1 Purchased on credit and received $165,000 of product inventory. Purchased on credit and received $11,000 of office supplies inventory. Sold equipment with original historical cost of $20,000 for $3,000. Its depreciation table is: Equipment Date purchased Purchase cost Salvage value Year 2007 2008 2009 2010 2011 2012 #315 May 1, 2007 $20,000 $0 Depreciation expense Accumulated depreciation 2,000 2,000 4,000 6,000 4,000 10,000 4,000 14,000 4,000 18,000 2,000 20,000 Book value 18,000 14,000 10,000 6,000 2,000 0 7 July 1 July 5 July 10 Sep 30 Sep 30 Sep 30 Purchased equipment (5 year useful life and 0 salvage value) for $80,000. This will be identified as Equipment #512 Made all payments related to 2"" quarter payroll. Gross wages of $70,000, Income taxes wages of $66,500, social security wages of $70,000, Medicare wages of $70,000, state unemployment wages of $37,000, federal unemployment wages of $11,000. Paid $800 utility bill for 2nd quarter. Receipts on account and prepayments from customers total $270,000. AR of`$1,600 written off. Sold product inventory for $487,000 on credit and shipped to customers. Made payments to suppliers for $135,000. Oct 1 Oct 1 Oct 1 Oct 1 Oct 5 Made $5,000 interest payment on first loan. Purchased on credit and received $110,000 of product inventory. Purchased on credit and received $5000 of office supplies inventory. Paid dividends of 10,000 Made all payments related to 3rd quarter payroll. Gross wages of $60,000, Income taxes wages of $57,000, social security wages of $60,000, Medicare wages of $60,000, state unemployment wages of$17,000, federal unemployment wages of $5,000. Oct 10 Paid 1,100 utility bill for 3rd quarter. Oct 25 Purchased land for 60,000 Nov 1 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Purchased $6,000 insurance policy November 1 to April 30. Sold product inventory for $430,000 on credit and shipped to customers. Receipts on account and prepayments from customers total $330,000. AR of $1,500 written off. Made payments to suppliers for $125,000. Made $44,584 installment payment on second loan. Accrued for 4th quarter payroll. Gross wages of $70,000, income taxes wages of $66,500, social security wages of $70,000, Medicare wages of $70,000, state unemployment wages of $9,000, federal unemployment wages of $0. Ending product inventory of $85,000 valued at FIFO. Index value for $Value LIFO on December 31,2011, is 1.2333. Office supplies on hand, 500. Record accrued interest for loans. Record accrued utilities of 1,900. Record time passage on insurance policy. Record adjustment for uncollectible accounts. Prepayments still owed to customers amount to $18,000. Record depreciation for building. Depreciation for equipment (not including #512 or #315) is $45,200. 8 ACCT215 -Portfolio Project Rubric (Week 6) Criteria 30 pts. Balance Sheet 30 pts. Income Statement 30 pts. Statement of Cash Flows 5 pts. Grammar, Spelling, and Punctuation 5 pts. Reflection on Portfolio Exceeds Expectations Above Expectations Meets Expectations Needs Improvement 30-28 pts. Student submits Balance Sheet with all correct accounts and balances. Assets equal Liabilities and Equity. Statement follows proper format and is neat. 27-25 pts. Student submits Balance Sheet with 1-3 incorrect accounts or balances. Assets equal Liabilities and Equity. Statement follows proper format and is neat. 24-21 pts. Student submits Balance Sheet with 4-8 incorrect accounts or balances. Assets do not equal Liabilities and Equity. Statement does not follow proper format. 20-0 pts. Student does not submit a Balance Sheet, or is submitted with multiple errors, out of balance, and does not follow good format. 30-28 pts. Student submits Income Statement with all correct accounts and balances. Statement arrives at proper Net Income. Statement follows proper format and is neat. 27-25 pts. Student submits Income Statement with 1-3 incorrect accounts or balances. Statement does not arrive at proper Net Income. Statement follows proper format and is neat. 24-21 pts. Student submits Income Statement with 4-8 incorrect accounts or balances. Statement does not arrive at proper Net Income. Statement does not follow proper format. 20-0 pts. Student does not submit an Income Statement, or is submitted with multiple errors, arrives at incorrect Net Income, and does not follow good format. 30-28 pts. Student submits Statement of Cash Flows with all correct accounts and balances. Statement arrives at proper increase or decrease in cash flow. Statement contains three sections (Operations, Investing, and Financing), and follows proper format and is neat. 27-25 pts. Student submits Statement of Cash Flows with 1-3 incorrect entries for accounts and balances. Statement does not arrive at proper increase or decrease in cash flow. Statement contains three sections (Operations, Investing, and Financing), and follows proper format and is neat. 24-21 pts. Student submits Statement of Cash Flows with 4-8 incorrect entries for accounts and balances. Statement does not arrive at proper increase or decrease in cash flow. Statement does not contain three sections (Operations, Investing, and Financing). Does not follow proper format. 20-0 pts. Student submits Statement of Cash Flows with multiple incorrect entries for accounts and balances. Statement does not arrive at proper increase or decrease in cash flow. Statement does not contain three sections (Operations, Investing, and Financing). Does not follow proper format. 5 pts. Used proper grammar, spelling and punctuation. Report is neat and has professional look with 0-2 errors. 4 pts. Some grammar and spelling errors (3-5). However, Report is neat and has professional look. 3-2 pts. Contains multiple grammar and spelling errors (more than 5). Report is still neat and has professional look. 1-0 pts. Student does not submit, or contains multiple grammar and spelling errors (more than 5). Report is not professional in set-up. 5 pts. Student specifically describes concepts learned from this assignment. Student assesses whether financial statements are easier to 4 pts. Student specifically describes concepts learned from this assignment. Student does not assess whether financial statements are 3-2 pts. Student does not specifically describe concepts learned from this assignment. Student does not assess whether financial statements are 1-0 pts. Student does not submit a reflection, or does not specifically describe concepts learned from this assignment. Pts. 9 Project understand as a result of this assignment. easier to understand as a result of this assignment. easier to understand as a result of this assignment. Total Points 10