its one question with multiple parts

All Around Appliance-Myrtle Beach has just purchased a franchise from All Around Appliance (AAA). A (Click the icon to view the additional information.) Following is the chart of accounts for All Around Appliance-Myrtle Beach. As a new business, all beginning balances are $0. i (Click the icon to view the chart of accounts.) AAA is a manufacturer of kitchen appliances. AAA markets its products via retail stores that are operated as franchises. As a AAA franchisee, All Around Appliance-Myrtle Beach will receive many benefits, including having the exclusive right to sell AAA brand appliances in Myrtle Beach. AAA appliances have an excellent reputation and the AAA name and logo are readily recognized by consumers. AAA also manages national television advertising campaigns that benefit the franchisees. In exchange for these benefits, All Around Appliance-Myrtle Beach will pay an annual franchise fee to AAA based on a percentage of sales. The annual franchise fee is a separate cost and in addition to the purchase of the franchise. In addition to purchasing the franchise, All Around ApplianceMyrtle Beach will also purchase land with an existing building to use for its retail store, store fixtures, and office equipment. The business will purchase appliances from AAA and resell them in its store, primarily to local building contractors for installation in new homes. All Around Appliance Myrtle Beach Chart of Accounts Backer, Capital Backer, Withdrawals Cash Petty Cash Accounts Receivable Sales Revenue Allowance for Bad Debts Interest Revenue Cost of Goods Sold Merchandise Inventory Office Supplies Prepaid Insurance Interest Receivable Franchise Fee Expense Salaries Expense Utilities Expense Insurance Expense Supplies Expense Notes Receivable Land Building Accumulated Depreciation Building Store Fixtures Accumulated DepreciationStore Fixtures Office Equipment Accumulated Depreciation Office Equipment Franchise Accounts Payable Interest Payable Notes Payable Bad Debt Expense Bank Expense Credit Card Expense Depreciation Expense-Building Depreciation Expense-Store Fixtures Depreciation Expense-Office Equipment Amortization Expense-Franchise Interest Expense Cash Short and Over All Around Appliance-Myrtle Beach completed the following transactions during 2018, its first year of operations: (Click the icon to view the transactions.) Read the requirements. a. b. C. d. Received $530,000 cash from owner, G. Backer, in exchange for capital. Opened a new checking account at Myrtle Beach National Bank and deposited the cash received from the owner Paid $45,000 cash for a AAA franchise. Paid $440,000 cash and issued a $500,000, 10-year, 4% notes payable for land with an existing building. The assets had the following market values: Land, $90,000; Building, $850,000 Paid $120,000 for store fixtures. Paid $65,000 for office equipment. Paid $1,100 for office supplies. Paid $4,400 for a two-year insurance policy. Purchased appliances from AAA (merchandise inventory) on account for $435,000 Established a petty cash fund for $120. Sold appliances on account to BCD Contractors for $235,000, terms n/30 (cost, $70,500) e. f. g. h. i. j. n. j. Sold appliances on account to BCD Contractors for $235,000, terms n/30 (cost, $70,500) k. Sold appliances to Curtis Contracting for $170,000 (cost, $56,000), receiving a 6-month, 5% note. 1. Recorded credit card sales of $45,000 (cost, $16,500), net of processor fee of 2%. m. Received payment in full from BCD Contractors. Purchased appliances from AAA on account for $660,000. Made payment on account to AAA, $330,000. p. Sold appliances for cash to EB Home Builders for $320,000 (cost, $131,000). 9. Received payment in full on the maturity date from Curtis Contracting for the note. Sold appliances to Deard Contracting for $220,000 (cost, $90,000), receiving a 9-month, 5% note. Made payment on account to AAA, $540,000. Sold appliances on account to various businesses for $990,000, terms n/30 (cost, $297,000) 0. T. S. t. u. v. Collected $720,000 cash on account Paid cash for expenses: Salaries, $130,000; Utilities, $13,500 w. Replenished the petty cash fund when the fund had $95 in cash and petty cash tickets for $15 for office supplies. Backer withdrew $22,000 y. Paid the franchise fee to AAA of 2% of total sales of $1,980,000. X 1. Record the transactions in the general journal. Omit explanations. 2. Post to the general ledger. 3. It is a common business practice to reconcile the bank accounts on a monthly basis. However, in this problem, the reconciliation of the company's checking account will be done at the end of the year, based on an annual summary. Reconcile the bank account by comparing the following annual summary statement from Myrtle Beach National Bank to the Cash account in the general ledger. Record journal entries as needed and post to the general ledger. Use transaction z as the posting reference. $ 0 Beginning Balance, January 1, 2018 Deposits and other credits: $ 530,000 44,100 235,000 320,000 720,000 1,500 Interest Revenue 1,850,600 Checks and other debits: EFT to Bank Checks* 75 Checks: 45,000 440,000 65,000 120,000 120 4,400 1,100 330,000 540,000 143,500 1,400 Bank service charge (1,690,595) $ 160,005 Ending balance, December 31, 2018 *Bank Checks is a company that prints business checks (considered a bank expense) for All Around Appliance-Myrtle Beach 4. In preparation for preparing the adjusting entries, complete depreciation schedules for the first five years for the depreciable plant assets, assuming the assets were purchased on January 2, 2018 a. Building, straight-line, 30 years, $10,000 residual value. b. Store Fixtures, straight-line, 15 years, no residual value. Office Equipment, double-declining-balance, 5 years, $4,000 residual value. 5. Record adjusting entries for the year ended December 31, 2018: One year of the prepaid insurance has expired. b. Management estimates that 7% of Accounts Receivable will be uncollectible. An inventory of office supplies indicates $935 of supplies have been used. d. Calculate the interest eared on the outstanding Deard Contracting note receivable. Assume the note was received on October 31. Round to the nearest dollar Record depreciation expense for the year c. a. C. e. fro f. Record amortization expense for the year on the franchise, which has a 10-year life. g. Calculate the interest owed on the note payable. Assume the note was issued on January 1 6. Post adjusting entries and prepare an adjusted trial balance. 7. Prepare a multi-step income statement and statement of owner's equity for the year ended December 31, 2018. Prepare a classified balance sheet as of December 31, 2018. Assume Interest Receivable is a current asset and Interest Payable is a current liability 8. Evaluate the company's success for the first year of operations by calculating the following ratios. Round to two decimal places. Comment on the results. a. Liquidity i. Current ratio ii. Acid-test ratio iii. Cash ratio b. Efficiency i. Accounts receivable turnover hr inte ii. Day's sales in receivables iii. Asset turnover iv. Rate of return on total assets All Around Appliance-Myrtle Beach has just purchased a franchise from All Around Appliance (AAA). A (Click the icon to view the additional information.) Following is the chart of accounts for All Around Appliance-Myrtle Beach. As a new business, all beginning balances are $0. i (Click the icon to view the chart of accounts.) AAA is a manufacturer of kitchen appliances. AAA markets its products via retail stores that are operated as franchises. As a AAA franchisee, All Around Appliance-Myrtle Beach will receive many benefits, including having the exclusive right to sell AAA brand appliances in Myrtle Beach. AAA appliances have an excellent reputation and the AAA name and logo are readily recognized by consumers. AAA also manages national television advertising campaigns that benefit the franchisees. In exchange for these benefits, All Around Appliance-Myrtle Beach will pay an annual franchise fee to AAA based on a percentage of sales. The annual franchise fee is a separate cost and in addition to the purchase of the franchise. In addition to purchasing the franchise, All Around ApplianceMyrtle Beach will also purchase land with an existing building to use for its retail store, store fixtures, and office equipment. The business will purchase appliances from AAA and resell them in its store, primarily to local building contractors for installation in new homes. All Around Appliance Myrtle Beach Chart of Accounts Backer, Capital Backer, Withdrawals Cash Petty Cash Accounts Receivable Sales Revenue Allowance for Bad Debts Interest Revenue Cost of Goods Sold Merchandise Inventory Office Supplies Prepaid Insurance Interest Receivable Franchise Fee Expense Salaries Expense Utilities Expense Insurance Expense Supplies Expense Notes Receivable Land Building Accumulated Depreciation Building Store Fixtures Accumulated DepreciationStore Fixtures Office Equipment Accumulated Depreciation Office Equipment Franchise Accounts Payable Interest Payable Notes Payable Bad Debt Expense Bank Expense Credit Card Expense Depreciation Expense-Building Depreciation Expense-Store Fixtures Depreciation Expense-Office Equipment Amortization Expense-Franchise Interest Expense Cash Short and Over All Around Appliance-Myrtle Beach completed the following transactions during 2018, its first year of operations: (Click the icon to view the transactions.) Read the requirements. a. b. C. d. Received $530,000 cash from owner, G. Backer, in exchange for capital. Opened a new checking account at Myrtle Beach National Bank and deposited the cash received from the owner Paid $45,000 cash for a AAA franchise. Paid $440,000 cash and issued a $500,000, 10-year, 4% notes payable for land with an existing building. The assets had the following market values: Land, $90,000; Building, $850,000 Paid $120,000 for store fixtures. Paid $65,000 for office equipment. Paid $1,100 for office supplies. Paid $4,400 for a two-year insurance policy. Purchased appliances from AAA (merchandise inventory) on account for $435,000 Established a petty cash fund for $120. Sold appliances on account to BCD Contractors for $235,000, terms n/30 (cost, $70,500) e. f. g. h. i. j. n. j. Sold appliances on account to BCD Contractors for $235,000, terms n/30 (cost, $70,500) k. Sold appliances to Curtis Contracting for $170,000 (cost, $56,000), receiving a 6-month, 5% note. 1. Recorded credit card sales of $45,000 (cost, $16,500), net of processor fee of 2%. m. Received payment in full from BCD Contractors. Purchased appliances from AAA on account for $660,000. Made payment on account to AAA, $330,000. p. Sold appliances for cash to EB Home Builders for $320,000 (cost, $131,000). 9. Received payment in full on the maturity date from Curtis Contracting for the note. Sold appliances to Deard Contracting for $220,000 (cost, $90,000), receiving a 9-month, 5% note. Made payment on account to AAA, $540,000. Sold appliances on account to various businesses for $990,000, terms n/30 (cost, $297,000) 0. T. S. t. u. v. Collected $720,000 cash on account Paid cash for expenses: Salaries, $130,000; Utilities, $13,500 w. Replenished the petty cash fund when the fund had $95 in cash and petty cash tickets for $15 for office supplies. Backer withdrew $22,000 y. Paid the franchise fee to AAA of 2% of total sales of $1,980,000. X 1. Record the transactions in the general journal. Omit explanations. 2. Post to the general ledger. 3. It is a common business practice to reconcile the bank accounts on a monthly basis. However, in this problem, the reconciliation of the company's checking account will be done at the end of the year, based on an annual summary. Reconcile the bank account by comparing the following annual summary statement from Myrtle Beach National Bank to the Cash account in the general ledger. Record journal entries as needed and post to the general ledger. Use transaction z as the posting reference. $ 0 Beginning Balance, January 1, 2018 Deposits and other credits: $ 530,000 44,100 235,000 320,000 720,000 1,500 Interest Revenue 1,850,600 Checks and other debits: EFT to Bank Checks* 75 Checks: 45,000 440,000 65,000 120,000 120 4,400 1,100 330,000 540,000 143,500 1,400 Bank service charge (1,690,595) $ 160,005 Ending balance, December 31, 2018 *Bank Checks is a company that prints business checks (considered a bank expense) for All Around Appliance-Myrtle Beach 4. In preparation for preparing the adjusting entries, complete depreciation schedules for the first five years for the depreciable plant assets, assuming the assets were purchased on January 2, 2018 a. Building, straight-line, 30 years, $10,000 residual value. b. Store Fixtures, straight-line, 15 years, no residual value. Office Equipment, double-declining-balance, 5 years, $4,000 residual value. 5. Record adjusting entries for the year ended December 31, 2018: One year of the prepaid insurance has expired. b. Management estimates that 7% of Accounts Receivable will be uncollectible. An inventory of office supplies indicates $935 of supplies have been used. d. Calculate the interest eared on the outstanding Deard Contracting note receivable. Assume the note was received on October 31. Round to the nearest dollar Record depreciation expense for the year c. a. C. e. fro f. Record amortization expense for the year on the franchise, which has a 10-year life. g. Calculate the interest owed on the note payable. Assume the note was issued on January 1 6. Post adjusting entries and prepare an adjusted trial balance. 7. Prepare a multi-step income statement and statement of owner's equity for the year ended December 31, 2018. Prepare a classified balance sheet as of December 31, 2018. Assume Interest Receivable is a current asset and Interest Payable is a current liability 8. Evaluate the company's success for the first year of operations by calculating the following ratios. Round to two decimal places. Comment on the results. a. Liquidity i. Current ratio ii. Acid-test ratio iii. Cash ratio b. Efficiency i. Accounts receivable turnover hr inte ii. Day's sales in receivables iii. Asset turnover iv. Rate of return on total assets