Lynn's Music Studio Balance Sheet As of May 31, 2016 8.29 AM 11/2418 Accrual Basis Lynn's Muslc Studlo Balance Sheet As of May 31, 2016 May 31, 16 ASOrTs Current Assets Checking/Smings 1010 - Cash-Operating Total Checkingsavings Accounte Recelvable 1200 - Accounts Racelvable Total Accounts Recelvable Other Current Assets 1250 - Undeposited Funds 1260 - Iementory of Gultars 1245 - Inventory of Koyboards 1270 - Inventory of Music Stands 1300- Munle Supplies 1395 - Office supplies 1420 - Prepaid Insurance Total Other Current Assets Total Current Assets Flxed Assets 1700 - Musile instruments 1725. Music instruments, Cost 1750- Accum. Dep., Masic lesstruments Total 1700 - Musle instruments 1900. Fumiture 1825 - Furniture, Cost 1950. Aceum Dep. Furnitune Total 1600 - Fumiture 1900 - Computers 1925. Computers, Cost 1950. Accum. Dep, Computers Total 1900 - Computers Total Fixed Assets TOTAL ASsETS LAaLInES \& EQUTY Aor 30, 16 5.561.065.541.087,440.007,440.00 \begin{tabular}{|c|c|} \hline 7,805.20 & 1,203.80 \\ \hline 7,805.20 & 1,20380 \\ \hline 0.00 & -050.00 \\ \hline 350.00 & 450.00 \\ \hline 30.00 & 000 \\ \hline 340,00 & 18000 \\ \hline 35500 & 430.00 \\ \hline-65000 & 300.00 \\ \hline 1,10000 & 1,100.00 \\ \hline 1,58500 & 1.810 .00 \\ \hline 14.391 .26 & 10,453.80 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \begin{tabular}{r} 4.000 .00 \\ -120.00 \\ \end{tabular} & \begin{tabular}{r} 4.000 .00 \\ -60.00 \\ \end{tabular} \\ \hline 3,86000 & 3,94000 \\ \hline \begin{tabular}{r} 2.500 .00 \\ 40.00 \\ \end{tabular} & \begin{tabular}{r} 2.500 .00 \\ 40.00 \\ \end{tabular} \\ \hline 2,46000 & 2.46 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \begin{tabular}{r} 3.000000 \\ 70000 \\ \end{tabular} & \begin{tabular}{r} , 00000 \\ .3500 \\ \end{tabular} \\ \hline 2.530 .00 & 2.065 .00 \\ \hline 2.27000 & 9.366 .00 \\ \hline 24,161.26 & 12.818 .80 \\ \hline \end{tabular} Lynn's Music Studio Profit \& Loss May 2016 Statement for review. Use the Nend to Know to find the mistires in my fepord. Need to Keows: - The owners want accounting to be done on an acerual basis, not cach batis. - Vendors are spproved by managemet, and are mainly music instrument-based vendora. - On January 1 , the company renewed its arnal insurance policy and paid the total amount at that time. - The rent for the store frant is $600 per month. - The coanpany pays the accountant and secretary through QuickBooks uting an account called Stuff Payroll Expense, and Staff Payroll Liability. - The company has an equal pryment plan set up with the electric and the phone company. - The owner purchased a new company car in the month of Apeil conting $23,595 that will be financed through My City Bank waing a Note Payable. 100% financed no moncy down. The car will be depreciated each month according to an IRS approved depreciation sehedale for 5 years. - Typically April is the best month for revenue sales as schools prepare for gradantion in May. Hislorically sales tail off in May and then pick up during the summer month. - You authorized the purchase of a new Printer/Scanner in May costing $900 - All fixed assets depreciate and are recorded monthly mether than at the end of the year since the amount isn't that moch. The acoountunt records month-end depreciation experse and eccumulated depreciation. Actioa: Revisw the two financial statements by circling accounts und dollar amoents that may be incorrect. Now is a Weed docunsent, write your concems. For example: Why is revenue so low? Next line, why weren't funds deposited? Next line, who approved this experse account? Get the idea? Just one lise per question. My job will be to beat back to my office, red faced, and fix the emon. How you cars points: Hentify and ank about at least 10 of the 21 mistakes in the two reports. You may come up with ether ertors mot identified in my reheric. Think tike a manager. Your job is to aik intelligeat questions. Submit your Woed Doc in Camves by sutemission and attaching your Woed Doc. I will pive feedback oa your nitminsion, and inclide the points carned. Background: You are the manager for Lynn's Musie Studio. You have been in business for about 2 yeans. The company is both a retailer and a service company. The company teaches piano and guitar lessons, mainly to schools and some to private individuals at both your store and at the schools. You sell guitars, keyboards, and music stands. You hired me to do your books beeanse you want to dedicate your time to sales and growing the business. Every month on Tuesdry meming at 10:30 you hold a staff meeting and go over the financial statements for the month. I pass out the Comparative Balance Shect and Income Statement for review. Use the Need to Know to find the mistakes in my reports. Need to Know: - The owners want accounting to be done en an accrual basis, not cash basis. - Vendors are approved by management, and are mainly music instrument-based vendors. - On January 1, the company renewed its annoal insurance pelicy and paid the total amount at that time. - The rent for the store front is $600 per month. - The company pays the accountant and secretary through QuickBooks using an account ealled Staff Payroll Expense, and Staff Payroll Liability. - The company has an equal payment plan set up with the electric and the phone company. - The owner parchased a new company car in the month of April costing $23,595 that will be financed through My City Bank using a Note Payable. 100% financed no mooey down. The car will be depreciated cach month aceording to an IRS approved depreciation schedtle for 5 years. - Typieally April is the best month for revenue sales as schools prepare for graduation in May. Historically sales tail off in Mry and then pick up during the summer month. - You authorized the purchase of a new Priater Scanner in May costing $900. - All fixed assets depreciate and are recorded monthly rather than at the end of the yoar vince the amount isn't that much. The accountant records moath-end depreciation expense and accurnulated depreciation Netion: Revicw the ono financtal statements by circling actounts and dollar amounts that may be incorrect. Now in a Word dociment, write your concens. For example: Why is revenue so low? Next line, shy weren't funds deposited? Next line, who approved this expence account? Gat the idea? Just one line per question My job will be to kead back to my office, red faced, and fix the erroes. How you carn points: Lynn's Music Studio Balance Sheet As of May 31, 2016 8.29 AM 11/2418 Accrual Basis Lynn's Muslc Studlo Balance Sheet As of May 31, 2016 May 31, 16 ASOrTs Current Assets Checking/Smings 1010 - Cash-Operating Total Checkingsavings Accounte Recelvable 1200 - Accounts Racelvable Total Accounts Recelvable Other Current Assets 1250 - Undeposited Funds 1260 - Iementory of Gultars 1245 - Inventory of Koyboards 1270 - Inventory of Music Stands 1300- Munle Supplies 1395 - Office supplies 1420 - Prepaid Insurance Total Other Current Assets Total Current Assets Flxed Assets 1700 - Musile instruments 1725. Music instruments, Cost 1750- Accum. Dep., Masic lesstruments Total 1700 - Musle instruments 1900. Fumiture 1825 - Furniture, Cost 1950. Aceum Dep. Furnitune Total 1600 - Fumiture 1900 - Computers 1925. Computers, Cost 1950. Accum. Dep, Computers Total 1900 - Computers Total Fixed Assets TOTAL ASsETS LAaLInES \& EQUTY Aor 30, 16 5.561.065.541.087,440.007,440.00 \begin{tabular}{|c|c|} \hline 7,805.20 & 1,203.80 \\ \hline 7,805.20 & 1,20380 \\ \hline 0.00 & -050.00 \\ \hline 350.00 & 450.00 \\ \hline 30.00 & 000 \\ \hline 340,00 & 18000 \\ \hline 35500 & 430.00 \\ \hline-65000 & 300.00 \\ \hline 1,10000 & 1,100.00 \\ \hline 1,58500 & 1.810 .00 \\ \hline 14.391 .26 & 10,453.80 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \begin{tabular}{r} 4.000 .00 \\ -120.00 \\ \end{tabular} & \begin{tabular}{r} 4.000 .00 \\ -60.00 \\ \end{tabular} \\ \hline 3,86000 & 3,94000 \\ \hline \begin{tabular}{r} 2.500 .00 \\ 40.00 \\ \end{tabular} & \begin{tabular}{r} 2.500 .00 \\ 40.00 \\ \end{tabular} \\ \hline 2,46000 & 2.46 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \begin{tabular}{r} 3.000000 \\ 70000 \\ \end{tabular} & \begin{tabular}{r} , 00000 \\ .3500 \\ \end{tabular} \\ \hline 2.530 .00 & 2.065 .00 \\ \hline 2.27000 & 9.366 .00 \\ \hline 24,161.26 & 12.818 .80 \\ \hline \end{tabular} Lynn's Music Studio Profit \& Loss May 2016 Statement for review. Use the Nend to Know to find the mistires in my fepord. Need to Keows: - The owners want accounting to be done on an acerual basis, not cach batis. - Vendors are spproved by managemet, and are mainly music instrument-based vendora. - On January 1 , the company renewed its arnal insurance policy and paid the total amount at that time. - The rent for the store frant is $600 per month. - The coanpany pays the accountant and secretary through QuickBooks uting an account called Stuff Payroll Expense, and Staff Payroll Liability. - The company has an equal pryment plan set up with the electric and the phone company. - The owner purchased a new company car in the month of Apeil conting $23,595 that will be financed through My City Bank waing a Note Payable. 100% financed no moncy down. The car will be depreciated each month according to an IRS approved depreciation sehedale for 5 years. - Typically April is the best month for revenue sales as schools prepare for gradantion in May. Hislorically sales tail off in May and then pick up during the summer month. - You authorized the purchase of a new Printer/Scanner in May costing $900 - All fixed assets depreciate and are recorded monthly mether than at the end of the year since the amount isn't that moch. The acoountunt records month-end depreciation experse and eccumulated depreciation. Actioa: Revisw the two financial statements by circling accounts und dollar amoents that may be incorrect. Now is a Weed docunsent, write your concems. For example: Why is revenue so low? Next line, why weren't funds deposited? Next line, who approved this experse account? Get the idea? Just one lise per question. My job will be to beat back to my office, red faced, and fix the emon. How you cars points: Hentify and ank about at least 10 of the 21 mistakes in the two reports. You may come up with ether ertors mot identified in my reheric. Think tike a manager. Your job is to aik intelligeat questions. Submit your Woed Doc in Camves by sutemission and attaching your Woed Doc. I will pive feedback oa your nitminsion, and inclide the points carned. Background: You are the manager for Lynn's Musie Studio. You have been in business for about 2 yeans. The company is both a retailer and a service company. The company teaches piano and guitar lessons, mainly to schools and some to private individuals at both your store and at the schools. You sell guitars, keyboards, and music stands. You hired me to do your books beeanse you want to dedicate your time to sales and growing the business. Every month on Tuesdry meming at 10:30 you hold a staff meeting and go over the financial statements for the month. I pass out the Comparative Balance Shect and Income Statement for review. Use the Need to Know to find the mistakes in my reports. Need to Know: - The owners want accounting to be done en an accrual basis, not cash basis. - Vendors are approved by management, and are mainly music instrument-based vendors. - On January 1, the company renewed its annoal insurance pelicy and paid the total amount at that time. - The rent for the store front is $600 per month. - The company pays the accountant and secretary through QuickBooks using an account ealled Staff Payroll Expense, and Staff Payroll Liability. - The company has an equal payment plan set up with the electric and the phone company. - The owner parchased a new company car in the month of April costing $23,595 that will be financed through My City Bank using a Note Payable. 100% financed no mooey down. The car will be depreciated cach month aceording to an IRS approved depreciation schedtle for 5 years. - Typieally April is the best month for revenue sales as schools prepare for graduation in May. Historically sales tail off in Mry and then pick up during the summer month. - You authorized the purchase of a new Priater Scanner in May costing $900. - All fixed assets depreciate and are recorded monthly rather than at the end of the yoar vince the amount isn't that much. The accountant records moath-end depreciation expense and accurnulated depreciation Netion: Revicw the ono financtal statements by circling actounts and dollar amounts that may be incorrect. Now in a Word dociment, write your concens. For example: Why is revenue so low? Next line, shy weren't funds deposited? Next line, who approved this expence account? Gat the idea? Just one line per question My job will be to kead back to my office, red faced, and fix the erroes. How you carn points