I want to ask you about the expenses T-chart and income statement and balance sheet and the stock holder's equity in the last part.
February 23rd 2/23/2022 Orca Company record a $250 service fee charged by the bank and deducted from company's bank account 2/23/2022 Orca Company provides services to a customer for $16,000, to be paid on account Orca Company pays a $10,000 dividend to its shareholders 2/23/2022 2/23/2022 Orca Company collects the $8,000) accounts receivable from the customer serviced on 2/4 (note, this adjusts an entry from submission #1) February 25th 2/25/2022 Orca Company provides the $6,000 of scheduled services to the customer from 2/7 and collects the remainder of the cash owed ($4,000). 2/25/2022 Orca Company provides services to a customer worth $12,000, to be paid on account 2/25/2022 On 2/25 Orca Company purchases 200 units of additional inventory from its supplier at $50 per unit ($10,000 total), paying using a check (cash equivalent) February 28th 2/28/2022 Orca Company sells 200 units of inventory for $80 per unit and is paid in cash. Recall that the cost of Inventory is $50 per unit. 2/28/2022 Orca Company receives a $500 dividend (revenue) for the investment it made on February 4th. 2/28/2022 Orca Company records salaries earned in February to be paid to employees in March of $25,000 2/28/2022 Orca Company records a February utilities bill for $2,000 for utilities consumed in February to be paid next month 2/28/2022 Orca Company performs its adjusting entries for February Here are the entries you need to record: -Accrue Interest for BOTH note payables (1/1 $5,000 note and 1/31 $380,000 notes) for the month of February -Record using up one month of 2/4 Prepaid Insurance ($12,000/12 months =$1,000 monthly insurance used up) -Record using up 2/4 Prepaid Rent for February ($500) - It has used up $1,250 of supplies of the $2,000 it had purchased on 2/4 March 2nd 3/2/2022 Orca Company sells 50 units of inventory for $80 per unit on account. The sale has terms of 2/10, n/30. Recall inventory was purchased for $50 per unit. 3/2/2022 It pays off the Utilities payable accrued on 2/28 3/2/2022 It pays off the salaries payable accrued on 2/28 3/2/2022 Orca Company per-pays its rent for March AND April. $500 each 3/2/2022 Orca Company records an allowance of 5% of current A/R including the transactions on March 2nd. (A/R current balance = $32,000) March 4th 3/4/2022 Orca Company collects the receivable of $16,000 from services provided on February 23rd. No update is made to the allowance. 3/4/2022 Orca Company receives payment for the inventory sold on 3/2 ($4,000). Note this payment comes within 10 days of purchase with terms 2/10 net 30 3/4/2022 Orca Company purchases 100 units of inventory at $50 per unit using cash 3/4/2022 A customer returns 20 units of inventory purchased on 2/28. The inventory is not defective, so Orca Company adds it back to its inventory supply Sales $80 Cash CGS $50 per unit 3/4/2022 Orca Company sells 100 units of inventory at $80 per unit. The customer is able to pay for half now and Orca Company records the remainder due on account with terms 1/10, n/30. 3/4/2022 Orca Company is told its customer serviced on 2/25 has gone insolvent. This requires Orca Company to record a write-off for the accounts receivable from the customer ($12,000). Orca Company is paid $11,000 of the Accounts Receivable for the insolvent customer from 2/25. Orca Company must record a recovery related to this $11,000 3/4/2022 March 21st, 23rd 3/21/2022 3/21/2022 Orca Company purchased 500 units of inventory from its supplier, on account. The supplier offered Orca Company a price of $65 per unit. Orca Company adopted the FIFO Method of inventory Orca Company negotiated a Promissory Note with the customer for the accounts receivable for purchased inventory on 3/4 ($4,000 balance). The note has terms of 6% interest owed in 6 months Orca Company sold 100 units of inventory on account. Due to recent demand, Orca Company raised its price to $100 per unit for the inventory. TO cost according to the FIFO method ($10,000+$5,000-$2,500 = $12,500/$50 = 250 units remaining in inventory priced at $50 before 500 unit of inventory purchased. So price the inventory sold $50 per unit cost x 100 units sold = $5,000 3/23/2022 ACP Submission #2-3 Key saved - Student Part 2-3 with beginining balances posted in Taccounts FF.xlsx I have updated the excel sheet T accounts with the beginning balances for part 2-3. I have also added the T accounts for the accounts added in parts 2-3 and the included the added accounts in your financial statement worksheets. Your Net Income from you income statement will auto post to the S/E statement Net Income. You will need to input the common stock balance in the S/E statement. Your total stock and Retained Earnings balances in your Stockholders' Equity Statement will automatically post to your balance sheet You want to get the Green Yes to confirm that your Balance Sheet Balance. Plugged numbers result is more stiff point deductions. At the bottom of your T account worksheet I have included a check and balance for you: These are the totals from the beginning balances posted to the T accounts from the ending totals of part #1 As you post transactions for parts 2 and 3 into your T accounts check after each journal entry that: Debits Totals - Credit Totals That you expanded accounting equation balances out to zero 0 A-L-S-R+E=0? Must = 0 to balance You must balance the expanded accounting equation so after posting a journal check to see this is a 0... Check Debits Total 600,525 Credits Total 600,525 Assets Total 573,600 Liabilities Total 487,025 meaning it balances. Stock 75,000 Revenue 38,500 Expense 26,925 Net Income 11,575 Dividends 0 The calculation is Assets - Liabilities - Stock - Revenue + Expenses+ Dividends = 0. Ending R/E 11,575 Balance Sheet Assets Cash 13,100 Supplies 2,000 Inventory 10,000 0 0 0 13,100 13,100 2,000 2,000 10,000 10,000 Pre-Paid Rent Equipment 3,000 Building 495,000 500 500 0 3,000 3,000 500 495,000 495,000 Accounts Receivable 8,000 Pre-Paid Insturance 12,000 LT Investment 1 30,000 0 8,000 8,000 12,000 12,000 30,000 30,000 Allowance for Uncolllectible Notes Receivable 0 0 0 Olo 0 Liabilities Note Payable Accounts Payable Salaries Payable 485,000 0 0 0 0 0 485,000 485,000 0 Interest Payable Deferred Revenue Salaries Payable 25 2,000 0 25 O ol 2,000 2,000 25 0 0 25 0 0 2,000 2,000 Olo 25 Utilities Payable 0 olo 0 Equity Common Stock Dividends 75,000 0 0 75,000 75,000 Income Statement Revenues Sales Sales Discount Service Revenue 38,500 0 0 0 38,500 38,500 0 0 Dividend Revenue Sales Returns 0 0 0 0 0 Expenses Salaries Expense 20,000 Utilities Expense 1,750 Supplies Expense 250 0 250 20,000 20,000 1,750 1,750 250 Service Fee Expense Rent Expense 500 Interest Expense 25 500 0 25 0 0 olo 500 25 Cost of Goods Sold Advertising Expense 4,400 0 0 0 0 0 4,400 4,400 0 Insurance Expense Bad Debt Expense 0 0 0 0 0 Olo Olo 0 0 0 A-L-S-R+E=0? Must = o to balance Check Debits Total Credits Total Assets Total Liabilities Total Stock Revenue Expense Net Income Dividends 600,525 600,525 573,600 487,025 75,000 38,500 26,925 11,575 0 Ending R/E 11,575 Orca Company Income Statement For Period Ended April 30th Sales Revenue Sales Revenue (Sales Discounts) (Sales Return) Net Sales Cost of Goods Sold (Cost of Goods Sold) Gross Profit Orca Company Statement of Stockholders' Equity For Period Ending April 30th Common Stock Retained Earnings Total Equity Beginning Balance Issuance of Common Stock Net Income Dividends Ending Balance Operating Revenues Service Revenue Total Operating Revenue Operating Expenses (Salaries Expense) (Supplies Expense) (Rent Expense) (Advertising Expense) (Utilities Expense) (Insurance Expense) (Bad Debt Expense) (Service Fee Expense) Total Operating Expenses Income/(Loss) from Operations Orca Company Balance Sheet For Period Ending April 30th Current Assets Cash Accounts Receivable Less: (Allowance for Uncollecitible Accounts) Inventory Supplies Pre-Paid Rent Note Receivable Prepaid Insurance Total Current Assets Long-Term Assets Investment Equipment Buildings (Accumulated Depreciation) Total Assets Current Liabilities Accounts Payable Salaries Payable Deferred Revenue Interest Payable Total Current Liabilities Long-Term Liabilities Long-Term Notes Payable Bond Payable Total Long-Term Liabilities Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities & Stockholder's Equity Interest, Gains or Losses Interest Revenue (Interest Expense) Dividend Revenue (Loss) Income before Taxes (Income Tax Expense - 20%) Net Income/(Loss) Assets - Liabilites + Equity?L Yes February 23rd 2/23/2022 Orca Company record a $250 service fee charged by the bank and deducted from company's bank account 2/23/2022 Orca Company provides services to a customer for $16,000, to be paid on account Orca Company pays a $10,000 dividend to its shareholders 2/23/2022 2/23/2022 Orca Company collects the $8,000) accounts receivable from the customer serviced on 2/4 (note, this adjusts an entry from submission #1) February 25th 2/25/2022 Orca Company provides the $6,000 of scheduled services to the customer from 2/7 and collects the remainder of the cash owed ($4,000). 2/25/2022 Orca Company provides services to a customer worth $12,000, to be paid on account 2/25/2022 On 2/25 Orca Company purchases 200 units of additional inventory from its supplier at $50 per unit ($10,000 total), paying using a check (cash equivalent) February 28th 2/28/2022 Orca Company sells 200 units of inventory for $80 per unit and is paid in cash. Recall that the cost of Inventory is $50 per unit. 2/28/2022 Orca Company receives a $500 dividend (revenue) for the investment it made on February 4th. 2/28/2022 Orca Company records salaries earned in February to be paid to employees in March of $25,000 2/28/2022 Orca Company records a February utilities bill for $2,000 for utilities consumed in February to be paid next month 2/28/2022 Orca Company performs its adjusting entries for February Here are the entries you need to record: -Accrue Interest for BOTH note payables (1/1 $5,000 note and 1/31 $380,000 notes) for the month of February -Record using up one month of 2/4 Prepaid Insurance ($12,000/12 months =$1,000 monthly insurance used up) -Record using up 2/4 Prepaid Rent for February ($500) - It has used up $1,250 of supplies of the $2,000 it had purchased on 2/4 March 2nd 3/2/2022 Orca Company sells 50 units of inventory for $80 per unit on account. The sale has terms of 2/10, n/30. Recall inventory was purchased for $50 per unit. 3/2/2022 It pays off the Utilities payable accrued on 2/28 3/2/2022 It pays off the salaries payable accrued on 2/28 3/2/2022 Orca Company per-pays its rent for March AND April. $500 each 3/2/2022 Orca Company records an allowance of 5% of current A/R including the transactions on March 2nd. (A/R current balance = $32,000) March 4th 3/4/2022 Orca Company collects the receivable of $16,000 from services provided on February 23rd. No update is made to the allowance. 3/4/2022 Orca Company receives payment for the inventory sold on 3/2 ($4,000). Note this payment comes within 10 days of purchase with terms 2/10 net 30 3/4/2022 Orca Company purchases 100 units of inventory at $50 per unit using cash 3/4/2022 A customer returns 20 units of inventory purchased on 2/28. The inventory is not defective, so Orca Company adds it back to its inventory supply Sales $80 Cash CGS $50 per unit 3/4/2022 Orca Company sells 100 units of inventory at $80 per unit. The customer is able to pay for half now and Orca Company records the remainder due on account with terms 1/10, n/30. 3/4/2022 Orca Company is told its customer serviced on 2/25 has gone insolvent. This requires Orca Company to record a write-off for the accounts receivable from the customer ($12,000). Orca Company is paid $11,000 of the Accounts Receivable for the insolvent customer from 2/25. Orca Company must record a recovery related to this $11,000 3/4/2022 March 21st, 23rd 3/21/2022 3/21/2022 Orca Company purchased 500 units of inventory from its supplier, on account. The supplier offered Orca Company a price of $65 per unit. Orca Company adopted the FIFO Method of inventory Orca Company negotiated a Promissory Note with the customer for the accounts receivable for purchased inventory on 3/4 ($4,000 balance). The note has terms of 6% interest owed in 6 months Orca Company sold 100 units of inventory on account. Due to recent demand, Orca Company raised its price to $100 per unit for the inventory. TO cost according to the FIFO method ($10,000+$5,000-$2,500 = $12,500/$50 = 250 units remaining in inventory priced at $50 before 500 unit of inventory purchased. So price the inventory sold $50 per unit cost x 100 units sold = $5,000 3/23/2022 ACP Submission #2-3 Key saved - Student Part 2-3 with beginining balances posted in Taccounts FF.xlsx I have updated the excel sheet T accounts with the beginning balances for part 2-3. I have also added the T accounts for the accounts added in parts 2-3 and the included the added accounts in your financial statement worksheets. Your Net Income from you income statement will auto post to the S/E statement Net Income. You will need to input the common stock balance in the S/E statement. Your total stock and Retained Earnings balances in your Stockholders' Equity Statement will automatically post to your balance sheet You want to get the Green Yes to confirm that your Balance Sheet Balance. Plugged numbers result is more stiff point deductions. At the bottom of your T account worksheet I have included a check and balance for you: These are the totals from the beginning balances posted to the T accounts from the ending totals of part #1 As you post transactions for parts 2 and 3 into your T accounts check after each journal entry that: Debits Totals - Credit Totals That you expanded accounting equation balances out to zero 0 A-L-S-R+E=0? Must = 0 to balance You must balance the expanded accounting equation so after posting a journal check to see this is a 0... Check Debits Total 600,525 Credits Total 600,525 Assets Total 573,600 Liabilities Total 487,025 meaning it balances. Stock 75,000 Revenue 38,500 Expense 26,925 Net Income 11,575 Dividends 0 The calculation is Assets - Liabilities - Stock - Revenue + Expenses+ Dividends = 0. Ending R/E 11,575 Balance Sheet Assets Cash 13,100 Supplies 2,000 Inventory 10,000 0 0 0 13,100 13,100 2,000 2,000 10,000 10,000 Pre-Paid Rent Equipment 3,000 Building 495,000 500 500 0 3,000 3,000 500 495,000 495,000 Accounts Receivable 8,000 Pre-Paid Insturance 12,000 LT Investment 1 30,000 0 8,000 8,000 12,000 12,000 30,000 30,000 Allowance for Uncolllectible Notes Receivable 0 0 0 Olo 0 Liabilities Note Payable Accounts Payable Salaries Payable 485,000 0 0 0 0 0 485,000 485,000 0 Interest Payable Deferred Revenue Salaries Payable 25 2,000 0 25 O ol 2,000 2,000 25 0 0 25 0 0 2,000 2,000 Olo 25 Utilities Payable 0 olo 0 Equity Common Stock Dividends 75,000 0 0 75,000 75,000 Income Statement Revenues Sales Sales Discount Service Revenue 38,500 0 0 0 38,500 38,500 0 0 Dividend Revenue Sales Returns 0 0 0 0 0 Expenses Salaries Expense 20,000 Utilities Expense 1,750 Supplies Expense 250 0 250 20,000 20,000 1,750 1,750 250 Service Fee Expense Rent Expense 500 Interest Expense 25 500 0 25 0 0 olo 500 25 Cost of Goods Sold Advertising Expense 4,400 0 0 0 0 0 4,400 4,400 0 Insurance Expense Bad Debt Expense 0 0 0 0 0 Olo Olo 0 0 0 A-L-S-R+E=0? Must = o to balance Check Debits Total Credits Total Assets Total Liabilities Total Stock Revenue Expense Net Income Dividends 600,525 600,525 573,600 487,025 75,000 38,500 26,925 11,575 0 Ending R/E 11,575 Orca Company Income Statement For Period Ended April 30th Sales Revenue Sales Revenue (Sales Discounts) (Sales Return) Net Sales Cost of Goods Sold (Cost of Goods Sold) Gross Profit Orca Company Statement of Stockholders' Equity For Period Ending April 30th Common Stock Retained Earnings Total Equity Beginning Balance Issuance of Common Stock Net Income Dividends Ending Balance Operating Revenues Service Revenue Total Operating Revenue Operating Expenses (Salaries Expense) (Supplies Expense) (Rent Expense) (Advertising Expense) (Utilities Expense) (Insurance Expense) (Bad Debt Expense) (Service Fee Expense) Total Operating Expenses Income/(Loss) from Operations Orca Company Balance Sheet For Period Ending April 30th Current Assets Cash Accounts Receivable Less: (Allowance for Uncollecitible Accounts) Inventory Supplies Pre-Paid Rent Note Receivable Prepaid Insurance Total Current Assets Long-Term Assets Investment Equipment Buildings (Accumulated Depreciation) Total Assets Current Liabilities Accounts Payable Salaries Payable Deferred Revenue Interest Payable Total Current Liabilities Long-Term Liabilities Long-Term Notes Payable Bond Payable Total Long-Term Liabilities Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities & Stockholder's Equity Interest, Gains or Losses Interest Revenue (Interest Expense) Dividend Revenue (Loss) Income before Taxes (Income Tax Expense - 20%) Net Income/(Loss) Assets - Liabilites + Equity?L Yes
