INSTRUCTIONS Bob McAdoo, is applying for a line of credit at his local bank Bob is a welder and runs his welding company, McAdoo and Sons Welding LLC , as a sole proprietorship He has never kept his books using a computerized accounting system and no matter how hard you try you cannot convince him to change his ways As part of the requirement for the new loan, the bank is requiring financial statements from Bobs company You have prepared Bobs business returns for the past five years Below is the Balance Sheet information as of the end of 2015 Assets Liabilities Equity Cash 45,780 Accounts Payable 23,540 Accounts Receivable 124,600 Payroll Liabilities 3,500 Property Equipment 456,340 Note Bank of America 45,650 Accumulated Depreciation (152,300) Note SBA 156,700 Capital Bob McAdoo 245,030 Bob has provided you with a hand written sheet of all of his cash receipts and disbursements out of the company account during the year It also shows ending balances for receivables, payables, and all loans that the company has This will be attached separately for this assignment Depreciation for the year was $56,300 Bob prepaid three months of rent at the end of the year and included this amount in Rent on the hand written sheet Bobs rent is $5,000 each month Bob purchased a forklift for $75,000 from John Deere The purchase was 100 financed by John Deere Bobs ending cash balance is $68,720 REQUIREMENTS You will be required to complete financial statements (including a Balance Sheet, Income Statement, and a Statement of Owners Capital) using the Working Trial Balance form provided on Canvas The journal entries tab (marked JEs) must also be completed to detail any necessary journal entries Bob's Welding Sales 572,300 Advertising 15,260 Fuel 25,780 Insurance 42,350 License Payments 1,450 Materials 89,340 Other Supplies 2,350 Payroll 79,030 Accounting 4,500 Property Taxes 2,350 Payroll Taxes 12,400 Subscription Dues 4,520 Rent 75,000 Repairs 43,500 Subcontractors 25,000 Utilities 14,930 Loab payment Note Bank of America 7800 Note SBA 52300 John Deere Loan Personal Draws 7,400 Balances Receivables on 12 31 106,900 Payables on 12 31(all for materials) 27,900 12,000 Payroll taxes due as of 12 31 4,150 Bank of America loan 41,280 SBA Loan 118,900 John Deere loan 67,120 What I have done so far MCADOO SONS WELDING WORKING TRIAL BALANCE FYE 12 31 16 Clients Recorded Transactions Reclassifying Entries Adjusting Entries Account Bg Bal Dr Cr Adj Bal DR CR Balance Dr Cr Final Balance BALANCE SHEET Cash 45,780 22,940 68,720 68,720 68,720 Accounts Receivable 124,600 (17,700) 106,900 106,900 106,900 Property Equipment 456,360 578,360 578,360 578,360 New Truck 32,000 Forklift 75,000 Prepaid Rent 15,000 Accumulated Depreciation (152,300) (56,300) (208,600) (208,600) (208,600) Accounts Payables (23,540) (4,360) (27,900) (27,900) (27,900) Payroll Liabilities (3,500) (650) (4,150) (4,150) (4,150) Note Bank of America (45,650) 4,370 (41,280) (41,280) (41,280) Note SBA (156,700) 37,800 (118,900) (118,900) (118,900) Capital Bob Mcadoo (245,030) (237,630) (237,630) (237,630) Drawings 7,400 John Deere (75,000) 7,880 (67,120) (67,120) (67,120) INCOME STATEMENT Sales (554,300) (554,300) (554,300) (554,300) Advertising 15,260 15,260 15,260 15,260 Fuel 25,780 25,780 25,780 25,780 Insurance 42,350 42,350 42,350 42,350 License Payments 1,450 1,450 1,450 1,450 Materials 93,700 93,700 93,700 93,700 Other Supplies 2,350 2,350 2,350 2,350 Payroll 79,030 79,030 79,030 79,030 Accounting 4,500 4,500 4,500 4,500 Property Taxes 2,350 2,350 2,350 2,350 Payroll Taxes 9,550 9,550 9,550 9,550 Subscription Dues 4,520 4,520 4,520 4,520 Rent 60,000 60,000 60,000 60,000 Repairs 43,500 43,500 43,500 43,500 Subcontractors 75,000 75,000 75,000 75,000 Utilities 14,930 14,930 14,930 14,930 Depreciation 56,300 56,300 56,300 56,300 Interest on Note Bank of America 3,430 3,430 3,430 3,430 Interest on Note SBA 14,500 14,500 14,500 14,500 Interest on John Deere Loan 4,120 4,120 4,120 4,120 Rounding Total (74,980) 755,010 (633,310) 46,720 46,720 46,720 Net Income (1,680) (1,680) MCADOO SONS WELDING JOURNAL ENTRIES FYE 12 31 16 Accounts Debit Credit RECLASSIFYING ENTRIES ADJUSTING ENTRIES Accts Debit Credit (1,680)

Question

INSTRUCTIONS  Bob McAdoo, is applying for a line of credit at his local bank  Bob is a welder and runs his welding company, McAdoo and Sons Welding LLC , as a sole proprietorship  He has never kept his books using a computerized accounting system and no matter how hard you try you cannot convince him to change his ways  As part of the requirement for the new loan, the bank is requiring financial statements from Bobs company  You have prepared Bobs business returns for the past five years  Below is the Balance Sheet information as of the end of 2015  Assets Liabilities   Equity Cash 45,780 Accounts Payable 23,540 Accounts Receivable 124,600 Payroll Liabilities 3,500 Property   Equipment 456,340 Note Bank of America 45,650 Accumulated Depreciation (152,300) Note SBA 156,700 Capital Bob McAdoo 245,030 Bob has provided you with a hand written sheet of all of his cash receipts and disbursements out of the company account during the year  It also shows ending balances for receivables, payables, and all loans that the company has  This will be attached separately for this assignment  Depreciation for the year was $56,300 Bob prepaid three months of rent at the end of the year and included this amount in Rent on the hand written sheet  Bobs rent is $5,000 each month  Bob purchased a forklift for $75,000 from John Deere  The purchase was 100  financed by John Deere  Bobs ending cash balance is $68,720  REQUIREMENTS  You will be required to complete financial statements (including a Balance Sheet, Income Statement, and a Statement of Owners Capital) using the Working Trial Balance form provided on Canvas  The journal entries tab (marked JEs) must also be completed to detail any necessary journal entries  Bob's Welding Sales 572,300 Advertising 15,260 Fuel 25,780 Insurance 42,350 License Payments 1,450 Materials 89,340 Other Supplies 2,350 Payroll 79,030 Accounting 4,500 Property Taxes 2,350 Payroll Taxes 12,400 Subscription Dues 4,520 Rent 75,000 Repairs 43,500 Subcontractors 25,000 Utilities 14,930 Loab payment Note Bank of America 7800 Note SBA 52300 John Deere Loan Personal Draws 7,400 Balances  Receivables on 12 31 106,900 Payables on 12 31(all for materials) 27,900 12,000 Payroll taxes due as of 12 31 4,150 Bank of America loan 41,280 SBA Loan 118,900 John Deere loan 67,120 What I have done so far  MCADOO   SONS WELDING WORKING TRIAL BALANCE FYE 12 31 16 Clients Recorded Transactions Reclassifying Entries Adjusting Entries Account Bg Bal Dr Cr Adj Bal DR CR Balance Dr Cr Final Balance BALANCE SHEET Cash 45,780 22,940 68,720 68,720 68,720 Accounts Receivable 124,600 (17,700) 106,900 106,900 106,900 Property   Equipment 456,360 578,360 578,360 578,360 New Truck 32,000     Forklift 75,000     Prepaid Rent 15,000     Accumulated Depreciation (152,300) (56,300) (208,600) (208,600) (208,600) Accounts Payables (23,540) (4,360) (27,900) (27,900) (27,900) Payroll Liabilities (3,500) (650) (4,150) (4,150) (4,150) Note Bank of America (45,650) 4,370 (41,280) (41,280) (41,280) Note SBA (156,700) 37,800 (118,900) (118,900) (118,900) Capital Bob Mcadoo (245,030) (237,630) (237,630) (237,630) Drawings 7,400     John Deere (75,000) 7,880 (67,120) (67,120) (67,120) INCOME STATEMENT Sales (554,300) (554,300) (554,300) (554,300) Advertising 15,260 15,260 15,260 15,260 Fuel 25,780 25,780 25,780 25,780 Insurance 42,350 42,350 42,350 42,350 License Payments 1,450 1,450 1,450 1,450 Materials 93,700 93,700 93,700 93,700 Other Supplies 2,350 2,350 2,350 2,350 Payroll 79,030 79,030 79,030 79,030 Accounting 4,500 4,500 4,500 4,500 Property Taxes 2,350 2,350 2,350 2,350 Payroll Taxes 9,550 9,550 9,550 9,550 Subscription Dues 4,520 4,520 4,520 4,520 Rent 60,000 60,000 60,000 60,000 Repairs 43,500 43,500 43,500 43,500 Subcontractors 75,000 75,000 75,000 75,000 Utilities 14,930 14,930 14,930 14,930 Depreciation 56,300 56,300 56,300 56,300 Interest on Note Bank of America 3,430 3,430 3,430 3,430 Interest on Note SBA 14,500 14,500 14,500 14,500 Interest on John Deere Loan 4,120 4,120 4,120 4,120 Rounding       Total (74,980) 755,010 (633,310) 46,720       46,720     46,720 Net Income (1,680) (1,680) MCADOO   SONS WELDING JOURNAL ENTRIES FYE 12 31 16 Accounts Debit Credit RECLASSIFYING ENTRIES ADJUSTING ENTRIES Accts Debit Credit (1,680)

Accepted Answer

The Answer is in the image, click to view ...

Question

INSTRUCTIONS: Bob McAdoo, is applying for a line of credit at his local bank. Bob is a welder and runs his welding company, McAdoo and

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Short Term Rental Long Term Wealth

Students also viewed these Finance questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Assets		Liabilities & Equity
Cash	45,780	Accounts Payable	23,540
Accounts Receivable	124,600	Payroll Liabilities	3,500
Property & Equipment	456,340	Note Bank of America	45,650
Accumulated Depreciation	(152,300)	Note SBA	156,700
		Capital Bob McAdoo	245,030

Sales		572,300
Advertising		15,260
Fuel		25,780
Insurance		42,350
License/Payments		1,450
Materials		89,340
Other Supplies		2,350
Payroll		79,030
Accounting		4,500
Property Taxes		2,350
Payroll Taxes		12,400
Subscription Dues		4,520
Rent		75,000
Repairs		43,500
Subcontractors		25,000
Utilities		14,930
Loab payment
Note-Bank of America		7800
Note-SBA		52300
John Deere Loan Personal Draws 7,400 Balances: Receivables on 12/31 106,900 Payables on 12/31(all for materials) 27,900		12,000