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NC Global Phones NC Global Phones was recently formed in early 2 0 2 4 . The company will sell slighthly older used cell phones
NC Global Phones NC Global Phones was recently formed in early The company will sell slighthly older used cell phones that are in perfect working condition Whiles these older phones quickly lose their value in the US the owner believes there is niche market for these phones in select overseas markets. In early as part of the initial year start up in addition to the owner contribution, several purchases of inventory and property plant and equipment PPE" were made, and some key expenses were 'prepaid' up front rent, supplies, insurance The company has negotiated with several suppliers to purchase inventory The inventory system is the perpetual inventory system. In terms of inventory costing, the owner has elected to use the LIFO method in order to minimize federal income taxes. The owner has contracted with a small group of customers accounts or resellers that will purchase the cell phones and then sell the phones at retail to the public. There is a small team of employees that will begin working on January Listed below are transactions that took place during the first year of operations. No transactions adjusting or closing entries have been posted. Owner is asking for help in posting transactions and year end adjusting entries so financial statements can be prepared. In fact, Owner is meeting with a prospective business partner to discuss a possible business venture. The potential partner would like to review the company's financial statements. Owner would like to present a multistep income statement a Statement of Owner's Equity and a classified balance sheet Date Transaction Details Jan Owner makes capital contribution of cash ; $ is deposited in cash operating account and $ in cash interest bearing account Jan Prepaid year insurance policy premium of $ total ; coverage effective Jan expires Dec Jan Purchased inventory : units @ each Jan Bought a new truck for $ with financing provided by local bank. The terms of the bank loan are: interest rate, balance due in months The salvage value of the truck after years is estimated to be $ Jan Prepaid warehouse rent for lease starting January to December $ total paid Jan Purchased office furniture & equipment for office $ cost; salvage value $; useful life of years Jan Spent $ on improvements to leased property such as workstations, coffee room partition, etc. Owner estimates that these improvements will last two years. Jan Purchased inventory on account : units @ each Feb Bought supplies on account total purchase Feb Purchase inventory on account : units @ each Feb Sold units for $ each to Client A in LatinAmerica on account terms n Mar Sold on account, units for $ each to Client B in Asia Pacific terms n Apr Processed and paid st Quarter payroll $ Apr Per bank statement, earned $ on interest bearing cash accout Apr Established a petty cash of $ Apr Purchased units @ on account May Paid advertising expenses of $ May Received $ interest from interest bearing cash bank account Jun Paid owed to vendor for previous inventory purchase Jul Processed and paid nd Quarter payroll $ Jul Per bank statement, earned $ on interest bearing cash accout Jul Received partial payment from Client B of $ Oct Processed and paid rd Quarter payroll $ Oct Per bank statement, earned $ on interest bearing cash accout Nov Paid advertising expenses of $ Dec Review of petty cash fund indicates that $ pertains exclusively to meals provided to employees when they work late Dec Per Client Bdue to the political and financial instability in Asia Pacific it's been difficult to transfer money out. Owner writes off $ of AR balance from Client B Dec Sold units @ to Client C on account term n Dec Based on this year's activity in Petty Cash Fund, wner decides to increase the fund amount to $ Dec Owner decides a larger truck is needed. The truck is sold for $ and the bank note is paid off with the proceeds Dec Received cash payment for portion of receivable balance $ from Client C for sale made on Dec
NC Global Phones
NC Global Phones was recently formed in early The company will sell slighthly older used cell phones that are in perfect working condition Whiles these older phones quickly lose their value in the US the owner believes there is niche market for these phones in select overseas markets. In early as part of the initial year start up in addition to the owner contribution, several purchases of inventory and property plant and equipment PPE" were made, and some key expenses were 'prepaid' up front rent, supplies, insurance The company has negotiated with several suppliers to purchase inventory The inventory system is the perpetual inventory system. In terms of inventory costing, the owner has elected to use the LIFO method in order to minimize federal income taxes. The owner has contracted with a small group of customers accounts or resellers that will purchase the cell phones and then sell the phones at retail to the public. There is a small team of employees that will begin working on January
Listed below are transactions that took place during the first year of operations. No transactions adjusting or closing entries have been posted. Owner is asking for help in posting transactions and year end adjusting entries so financial statements can be prepared. In fact, Owner is meeting with a prospective business partner to discuss a possible business venture. The potential partner would like to review the company's financial statements. Owner would like to present a multistep income statement a Statement of Owner's Equity and a classified balance sheet
Date Transaction Details
Jan Owner makes capital contribution of cash ; $ is deposited in cash operating account and $ in cash interest bearing account
Jan Prepaid year insurance policy premium of $ total ; coverage effective Jan expires Dec
Jan Purchased inventory : units @ each
Jan Bought a new truck for $ with financing provided by local bank. The terms of the bank loan are: interest rate, balance due in months The salvage value of the truck after years is estimated to be $
Jan Prepaid warehouse rent for lease starting January to December $ total paid
Jan Purchased office furniture & equipment for office $ cost; salvage value $; useful life of years
Jan Spent $ on improvements to leased property such as workstations, coffee room partition, etc. Owner estimates that these improvements will last two years.
Jan Purchased inventory on account : units @ each
Feb Bought supplies on account total purchase
Feb Purchase inventory on account : units @ each
Feb Sold units for $ each to Client A in LatinAmerica on account terms n
Mar Sold on account, units for $ each to Client B in Asia Pacific terms n
Apr Processed and paid st Quarter payroll $
Apr Per bank statement, earned $ on interest bearing cash accout
Apr Established a petty cash of $
Apr Purchased units @ on account
May Paid advertising expenses of $
May Received $ interest from interest bearing cash bank account
Jun Paid owed to vendor for previous inventory purchase
Jul Processed and paid nd Quarter payroll $
Jul Per bank statement, earned $ on interest bearing cash accout
Jul Received partial payment from Client B of $
Oct Processed and paid rd Quarter payroll $
Oct Per bank statement, earned $ on interest bearing cash accout
Nov Paid advertising expenses of $
Dec Review of petty cash fund indicates that $ pertains exclusively to meals provided to employees when they work late
Dec Per Client Bdue to the political and financial instability in Asia Pacific it's been difficult to transfer money out. Owner writes off $ of AR balance from Client B
Dec Sold units @ to Client C on account term n
Dec Based on this year's activity in Petty Cash Fund, wner decides to increase the fund amount to $
Dec Owner decides a larger truck is needed. The truck is sold for $ and the bank note is paid off with the proceeds
Dec Received cash payment for portion of receivable balance $ from Client C for sale made on Dec
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