Need help with part two of project
Uhaldjusted Trial Balance Debits Credits Adjustments Debits Credits Adjusted Trial Balance Debits Credits Closing Entry Debits Credits Post Closing Debits Credits Act # Account Name 398,000 118,250 398,000 118,250 398,000 118,250 40,625 40,625 189,600 35,000 19,500 AJE # 6 AJE # 5 AJE # 4 40,625 57,500 7,292 132,100 27,708 19,500 132,100 27,708 19,500 2,321 2,321 176,125 9,000 9,000 300 17,234 300 AJE 3 176,125 AJE # 2 AJE # 1 AJE # 7 60,000 210,000 AJE #5 150,000 100 Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 140 Inventory 151 Prepaid Insurance 160 Property & Equipment 165 Accumulated Depreciation 200 Accounts Payable 210 Wages Payable 220 Interest Payable 225 Income Tax Payable 230 Note Payable 240 Uneared Revenue 300 Common Stock 320 Dividends 330 Retained Earnings 400 Revenue 510 Cost of Sales 530 Wage Expense 540 Insurance Expense 550 Interest Expense 560 Rent Expense 570 Depreciation Expense 580 Utility Expense 590 Bad Debt Expense 595 Income Tax Expense 2,321 176,125 9,000 300 17,234 60,000 140,000 150,000 17,234 60,000 140,000 150,000 70,000 5,000 5,000 5,000 28,453 99,953 71,500 616,250 70,000 616,250 357,650 27,000 71,500 546,250 AJE # 5 AJE # 5 AJE # 2 AJE #4 AJE # 1 57,500 9,000 7,292 300 3,000 60,500 415,150 36,000 7,292 3,300 60,500 2,321 375 40,625 17,234 415,150 36,000 7,292 3,300 60,500 2,321 375 40,625 17,234 AJE 3 2,321 375 AJE # 6 AJE #7 40,625 17,234 1,213,875 1,213,875 204,272 204,272 1,283,355 1,283,355 616,250 616,250 695,558 695,558 Pre-tax Income Tax Expense $ $ 50,687 17,234 1. Submit a copy of your corrected project part 1 on Blackboard in the same method as previously submitted. 2. Submit in hard copy form at the beginning of class the financial statements and ratio analysis below. They should look like something you would give a client. Make sure the formatting is correct and that your printed project looks presentable. a. Prepare a full set of financial statements for Evans Auto Parts (EAP) using the trial balance prepared in Part 1 - this means a Balance Sheet as of December 31, 2018, as well as an Income Statement, Statement of Stockholder's Equity and Statement of Cash Flows for the year ended December 31, 2018. b. Prepare the following ratios based on EAP's final balances, and prepare brief comments on what these ratios mean: c. Return on Equity d. Debt to Equity e. Current Ratio 4 bis Net Operating Profit Margin Gross Profit Margin Times interest earned (10) July 7 Introduction To Financial Accounting Class Project - Transactions Evan's Auto Parts Sold 350 alternators to Joe's Garage for $145 each on account. EAP had previously purchased these items for S100 each. EAP also sold 1,750 oil filters to Joe's Garage on account for S6 each, They cost EAP $4. (11) August 1 Evan's Auto Parts (EAP) was established to distribute auto parts to retailers and auto shops. The company began business on November 1, 2017. The following transactions took place during the year ended December 31, 2018: EAP purchased a general insurance plan that will cover the company for two years tron August 1. 2018 through July 30, 2020. The policy cost $35,000 for the Iwo years, EAP paid for the policy in cash. Beginning Account Balances as of January 1, 2018 are as follows: (12) September 8 Collected the full amount outstanding from Bob's Brakes on the sale made in transaction (8) Cash Accounts Receivable Inventory S65,000 S10,000 $7,000 Accounts Payable Retained Earrings (13) October 3 SIO,500 $71,500 Paid the remainder of the amount due for the inventory purchased in transaction (7), and paid for the equipment purchased in transaction (S) (14) October 15 Paid a $5,000 dividend to shareholders (1) January 2 Investors contributed $150,000 cash to help in launching EAP in exchange for 50,000 shares of stock (15) October 19 (2) January 2 EAP signed a contract with an auto paris relailer to provide 5,000 oil filters on the first of every month for 6 months beginning on November 1, FAP collected the total sales price for all six month's worth of oil filters when the contract was signed, for a total of $210,000. The filters cost $5.75 cach. Evan hired two of his friends, Eric and Josh, to work for him and to help get started. He will pay his two cmployees $4,500 cach on the first day of cach quarter for the work perfomed in the prior quarter. The first payment will be made on April 1, 2018 for the work performed from January - March 2018. (16) October 31 Billed Alan's Auto Repair for S47,000 of parts sold and shipped to Alan's on that day. The cost of these items to EAP was $42,650. (3)January 31 Evan rented a building for S5,500 per month on a seven year rental contract. Rent is due on the 1" of every month beginning on February 1 (17) November 15 Roccived S165,250 worth of parts inventory purchased from Cal Parts. An invoice came with the parts dated November 15. The invoice is payable on January 15, 2019. (4) January 31 EAP obtained a $60,000 cash loan from Capital Bank. The note has a 6% annual interest rate and requires monthly interest only payments (0.5% per month) on the first day of every month heginning on March 1, 2018. The loan is due to be paid in full in two years. (18) December 15 Received a utility hill for $375, which will be paid the first of the following month (5) February 28 EAP purchased shelving, rucks, a forklift, and other equipment on account for $19,500. This equipment is expected to be usable for 7 years (19) December 31 Evan is unsure that he will collect the amount duc from Joe's Garage, since Joc's has not paid on its account since its purchase in July. Evan estimates that 50% of the balance due from Joe's Garage is potentially uncollectible. In addition, the 10,000 due from the previous year is also estimated to be uncollectible. (6) March 1 Made its first monthly interest payment to Capital Bank for the $60,000 loan it obtained in transaction (4) - Don't forget the rest of the months! (20)December 31 (7) March 28 EAP purchased oil filters, air filters, brake pads, etc. totaling $375,000 from various manufacturers an account EAP receives an order from Bob's Brakes for another 200 brake pads. EAP will deliver them on January 2011 (21) December 31 (8) June Prepare an entry to accrue income taxes that will be payable for the year ended December 31, 2018 for EAP at a standard 34% tax rate Sold 12,000 brake pads to Bob's Brakes on account. These brake pads were sold for $36.50 each, and they cost $22.75 each (9) June 15 Sent a check totaling $35,000 to a vendor as partial payment for the inventory purchased in transaction (7) Uhaldjusted Trial Balance Debits Credits Adjustments Debits Credits Adjusted Trial Balance Debits Credits Closing Entry Debits Credits Post Closing Debits Credits Act # Account Name 398,000 118,250 398,000 118,250 398,000 118,250 40,625 40,625 189,600 35,000 19,500 AJE # 6 AJE # 5 AJE # 4 40,625 57,500 7,292 132,100 27,708 19,500 132,100 27,708 19,500 2,321 2,321 176,125 9,000 9,000 300 17,234 300 AJE 3 176,125 AJE # 2 AJE # 1 AJE # 7 60,000 210,000 AJE #5 150,000 100 Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 140 Inventory 151 Prepaid Insurance 160 Property & Equipment 165 Accumulated Depreciation 200 Accounts Payable 210 Wages Payable 220 Interest Payable 225 Income Tax Payable 230 Note Payable 240 Uneared Revenue 300 Common Stock 320 Dividends 330 Retained Earnings 400 Revenue 510 Cost of Sales 530 Wage Expense 540 Insurance Expense 550 Interest Expense 560 Rent Expense 570 Depreciation Expense 580 Utility Expense 590 Bad Debt Expense 595 Income Tax Expense 2,321 176,125 9,000 300 17,234 60,000 140,000 150,000 17,234 60,000 140,000 150,000 70,000 5,000 5,000 5,000 28,453 99,953 71,500 616,250 70,000 616,250 357,650 27,000 71,500 546,250 AJE # 5 AJE # 5 AJE # 2 AJE #4 AJE # 1 57,500 9,000 7,292 300 3,000 60,500 415,150 36,000 7,292 3,300 60,500 2,321 375 40,625 17,234 415,150 36,000 7,292 3,300 60,500 2,321 375 40,625 17,234 AJE 3 2,321 375 AJE # 6 AJE #7 40,625 17,234 1,213,875 1,213,875 204,272 204,272 1,283,355 1,283,355 616,250 616,250 695,558 695,558 Pre-tax Income Tax Expense $ $ 50,687 17,234 1. Submit a copy of your corrected project part 1 on Blackboard in the same method as previously submitted. 2. Submit in hard copy form at the beginning of class the financial statements and ratio analysis below. They should look like something you would give a client. Make sure the formatting is correct and that your printed project looks presentable. a. Prepare a full set of financial statements for Evans Auto Parts (EAP) using the trial balance prepared in Part 1 - this means a Balance Sheet as of December 31, 2018, as well as an Income Statement, Statement of Stockholder's Equity and Statement of Cash Flows for the year ended December 31, 2018. b. Prepare the following ratios based on EAP's final balances, and prepare brief comments on what these ratios mean: c. Return on Equity d. Debt to Equity e. Current Ratio 4 bis Net Operating Profit Margin Gross Profit Margin Times interest earned (10) July 7 Introduction To Financial Accounting Class Project - Transactions Evan's Auto Parts Sold 350 alternators to Joe's Garage for $145 each on account. EAP had previously purchased these items for S100 each. EAP also sold 1,750 oil filters to Joe's Garage on account for S6 each, They cost EAP $4. (11) August 1 Evan's Auto Parts (EAP) was established to distribute auto parts to retailers and auto shops. The company began business on November 1, 2017. The following transactions took place during the year ended December 31, 2018: EAP purchased a general insurance plan that will cover the company for two years tron August 1. 2018 through July 30, 2020. The policy cost $35,000 for the Iwo years, EAP paid for the policy in cash. Beginning Account Balances as of January 1, 2018 are as follows: (12) September 8 Collected the full amount outstanding from Bob's Brakes on the sale made in transaction (8) Cash Accounts Receivable Inventory S65,000 S10,000 $7,000 Accounts Payable Retained Earrings (13) October 3 SIO,500 $71,500 Paid the remainder of the amount due for the inventory purchased in transaction (7), and paid for the equipment purchased in transaction (S) (14) October 15 Paid a $5,000 dividend to shareholders (1) January 2 Investors contributed $150,000 cash to help in launching EAP in exchange for 50,000 shares of stock (15) October 19 (2) January 2 EAP signed a contract with an auto paris relailer to provide 5,000 oil filters on the first of every month for 6 months beginning on November 1, FAP collected the total sales price for all six month's worth of oil filters when the contract was signed, for a total of $210,000. The filters cost $5.75 cach. Evan hired two of his friends, Eric and Josh, to work for him and to help get started. He will pay his two cmployees $4,500 cach on the first day of cach quarter for the work perfomed in the prior quarter. The first payment will be made on April 1, 2018 for the work performed from January - March 2018. (16) October 31 Billed Alan's Auto Repair for S47,000 of parts sold and shipped to Alan's on that day. The cost of these items to EAP was $42,650. (3)January 31 Evan rented a building for S5,500 per month on a seven year rental contract. Rent is due on the 1" of every month beginning on February 1 (17) November 15 Roccived S165,250 worth of parts inventory purchased from Cal Parts. An invoice came with the parts dated November 15. The invoice is payable on January 15, 2019. (4) January 31 EAP obtained a $60,000 cash loan from Capital Bank. The note has a 6% annual interest rate and requires monthly interest only payments (0.5% per month) on the first day of every month heginning on March 1, 2018. The loan is due to be paid in full in two years. (18) December 15 Received a utility hill for $375, which will be paid the first of the following month (5) February 28 EAP purchased shelving, rucks, a forklift, and other equipment on account for $19,500. This equipment is expected to be usable for 7 years (19) December 31 Evan is unsure that he will collect the amount duc from Joe's Garage, since Joc's has not paid on its account since its purchase in July. Evan estimates that 50% of the balance due from Joe's Garage is potentially uncollectible. In addition, the 10,000 due from the previous year is also estimated to be uncollectible. (6) March 1 Made its first monthly interest payment to Capital Bank for the $60,000 loan it obtained in transaction (4) - Don't forget the rest of the months! (20)December 31 (7) March 28 EAP purchased oil filters, air filters, brake pads, etc. totaling $375,000 from various manufacturers an account EAP receives an order from Bob's Brakes for another 200 brake pads. EAP will deliver them on January 2011 (21) December 31 (8) June Prepare an entry to accrue income taxes that will be payable for the year ended December 31, 2018 for EAP at a standard 34% tax rate Sold 12,000 brake pads to Bob's Brakes on account. These brake pads were sold for $36.50 each, and they cost $22.75 each (9) June 15 Sent a check totaling $35,000 to a vendor as partial payment for the inventory purchased in transaction (7)
