Need someone to look over my homework in accounting. All the work is inputted. I attached the directions as well. I just am not sure about the tabs marked in red.

Date 10/1/2012 Date 10/1/2012 Date 10/2/2012 Date 10/3/2012 Date 10/15/2012 Date 10/30/2012 Date 10/30/2012 Date 10/30/2012 Date 10/31/2012 10/31/2012 Date 11/1/2012 Date 11/1/2012 Date 11/1/2012 Date 11/3/2012 Date 11/15/2012 Date 11/16/2012 Date 11/17/2012 Date 11/17/2012 Date 11/25/2012 Date 11/30/2012 Date 11/30/2012 Date 11/30/2012 Date 11/30/2012 Date 12/1/2012 Date 12/1/2012 Date Date 12/1/2012 Date 12/1/2012 12/1/2012 Date 12/15/2012 Date 12/15/2012 Date 12/16/2012 Date 12/31/2012 Date 12/31/2012 Date 12/31/2012 Date 12/31/2012 Date 12/31/2012 Date 12/31/2012 Date 12/31/2012 Date 12/31/2012 Date 12/31/2012 Date 12/31/2012 Account Cash Common Stock APIC Common Stock Issued 100,000 share of $5 par common stock for $7 Account Cash Preferred Stock APIC Preferred Stock Issued 10,000 share of $1 par 10% preferred stock for $10 Account Inventory Accounts Payable Purchased 200 units of inventory on account at $20 per unit Account Machinery Cash Machinery Payable Purchased machinery with cash and the rest on account Account Cash Sales Sold 50 units of inventory bought at $20 and sold at $30 Cost of goods sold Inventory Sold 50 units of inventory bought at $20 and sold at $30 Account Rent Expense Cash Paid for October's rent on building Account Accounts Payable Cash Paid for portion due of accounts payable Account Machinery Payable Cash Paid for portion due of machinery payable Account Wages and Salaries Expense Federal Income Tax Payable State Income Tax Payable Local Income Tax Payable Social Security Tax Payable Medicare Tax Payable Cash Paid for employees' portion of taxes as well as paycheck for the month of October Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable FUTA Tax Payable SUTA Tax Payable Paid for company's taxes on employees for the month of October Account Inventory Cash Purchased 200 units of inventory at $25 per unit Account Investment in available for sale securities Cash Purchased 100 shares in Company A for $50 per share and 500 shares in Company B for $90 per share Account Investment in held to maturtity securities Cash Purchased with cash 20 bonds with $1000 par value 10% bonds Account Office Supplies Cash Paid for office supplies with cash Account Cash Sales Sold 100 units of inventory at $32 Cost of goods sold Inventory Sold 100 units of inventory bought at $20 and sold at $32 Account Treasury Stock Cash Reaquired 20,000 shares for a price of $10 per share Account Common Stock Dividend Common Stock Dividend Payable Declared common stock dividend payable on Dec. 15th for those owning stock on Dec. 1st Account Preferred Stock Dividend Preferred Stock Dividend Payable Declared preferred stock dividend payable on Dec. 15th to those owning stock on Dec. 1st Account Cash Sales Sold 100 units of inventory at $32 Cost of goods sold Inventory Sold 50 units of inventory bought at $20 and 50 units bought at $25; all 100 units sold at $32 per unit Account Rent Expense Cash Paid for November's rent in cash Account Accounts Payable Cash Paid for remaining portion of accounts payable due Account Machinery Payable Cash Paid for current portion due of machinery purchased on account Account Wages and Salaries Expense Federal Income Tax Payable State Income Tax Payable Local Income Tax Payable Social Security Tax Payable Medicare Tax Payable Cash Paid for employees' portion of taxes as well as paycheck for the month of November Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable FUTA Tax Payable SUTA Tax Payable Paid for company's taxes on employees for the month of November Account Inventory Cash Purchased 200 units of inventory on account at $25 per unit Account Delivery Truck Truck Payable Purchased a truck on account Account Cash Investment in Available for sale securities Gain on available for sale securities Sold 50 shares for $75 for Company A Account Cash Loss on available for sale securities Investment in Available for sale securities Sold 50 shares for $85 for Company B Account Accounts Receivable Sales Sold 200 units of inventory at $32 Cost of goods sold Inventory Sold 200 units of inventory at $32; purchased at $25 Account Common Stock dividend payable Cash Record of dividend paid; declared on 11/17/12 Account Preferred Stock dividend payable Cash Record of dividend paid; declared on 11/17/12 Account Cash Treasury Stock Additional Paid in Capital- Treasury Stock Resold 10,000 shares of treasury stock for a price of $12 per share Account Rent Expense Cash Paid for December's rent in cash Account Machinery Payable Cash Paid for current portion due of machinery purchased on account Account Wages and Salaries Expense Federal Income Tax Payable State Income Tax Payable Local Income Tax Payable Social Security Tax Payable Medicare Tax Payable Cash Paid for employees' portion of taxes as well as paycheck for the month of December Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable FUTA Tax Payable SUTA Tax Payable Paid for company's taxes on employees for the month of December Account Depreciation Expense Accumulated Depreciation-Delivery Truck Record of depreciation on truck for 10,000 miles driven Account Depreciation Expense Accumulated Depreciation-Machinery Record of depreciation for machinery used for 3 months Account Cash Interest Revenue Record of paid interest on 20 bonds with $1000 par value 10% bonds Account Supplies Expense Office Supplies Record use of supplies Account Bad Debt Expense Allowance for Uncollectible Accounts Record 2% of accounts that are uncollectible Account Fair Value Adjustment (Available for sale securities) Unrealized Gain on available for sale securities Record of change in FMV for available for sale securities (Company A) Account Fair Value Adjustment (Available for sale securities) Unrealized Loss on available for sale securities Record of change in FMV for available for sale securities (Company B) DR CR 700,000 500,000 200,000 DR CR 100,000 10,000 90,000 DR CR 4,000 4,000 DR CR 500,000 200,000 300,000 DR CR 1,500 1,500 1,000 1,000 DR CR 1,000 1,000 DR CR 2,000 2,000 DR CR 2,500 2,500 DR CR 6,666.67 1,000.00 204.67 66.67 413.33 96.67 4,885.33 923.33 413.33 96.67 53.33 360.00 DR CR 5,000 5,000 DR CR 50,000 50,000 DR CR 20,000 20,000 DR CR 1,000 1,000 DR CR 3,200 3,200 2,000 2,000 DR CR 200,000 200,000 DR CR 8,000 8,000 DR CR 1,000 1,000 DR CR 3,200 3,200 2,250 2,250 DR CR 1,000 1,000 DR CR 2,000 2,000 DR CR 2,500 2,500 DR CR 6,666.67 1,000.00 204.67 66.67 413.33 96.67 4,885.33 923.33 413.33 96.67 53.33 360.00 DR CR 5,000 5,000 DR CR 50,000 50,000 DR CR 3,750 2,500 1,250 DR CR 4,250 250 4,500 DR CR 6400 6400 5000 5000 DR CR 8,000 8,000 DR CR 1,000 1,000 DR CR 120,000 100,000 20,000 DR CR 1,000 1,000 DR CR 2,500 2,500 DR CR 6,666.67 1,000.00 204.67 66.67 413.33 96.67 4,885.33 923.33 413.33 96.67 53.33 360.00 DR CR Cost = $50,000; Estimated useful life 120,000 miles, residual value $5,000. Will use units of production method 3,750 Year 1 3750 DR CR 25,000.00 Double De 3,750 Year 3 months 25,000.00 DR CR useful life 10 years 1 2 333.33 residual 333.33 DR CR $30,000 Double declining 1st year (full) $100,000.00 Dep. Per Month $8,333.33 600 600 Dep. Exp for 1st Year DR $25,000.00 CR 3 4 5 6 7 8 9 10 128 128 DR Interest (2 Int. on all 20 months) bonds 100 16.66666667 333.3333333 CR 1,000 1,000 DR interest for one bond (full year) CR 450 450 lue $5,000. Will use units Double Declining (Machinery) Beg. Of Year Rate x Beg. Of Year End of Year $500,000.00 $25,000.00 $475,000.00 $475,000.00 $95,000.00 $380,000.00 $380,000.00 $76,000.00 $304,000.00 100000 25000 $304,000.00 $243,200.00 $194,560.00 $155,648.00 $124,518.40 $99,614.72 $79,691.78 $63,753.42 $60,800.00 $48,640.00 $38,912.00 $31,129.60 $24,903.68 $19,922.94 $15,938.36 $12,750.68 $243,200.00 $194,560.00 $155,648.00 $124,518.40 $99,614.72 $79,691.78 $63,753.42 $51,002.74 Inventory Tracker (FIFO) Date Units Cost per unit Total Cost COGS Profit 2-Oct 200 20 4000 purchase 15-Oct 50 30.00 1500 sold 1000 500 15-Oct 150 20 3000 balance 1-Nov 200 25 5000 purchase 1-Nov 150 (20); 200 (25) balance 15-Nov 100 32 3200 sold 2000 1200 15-Nov 50 (20); 200 (25) balance 25-Nov 50 (20); 50 (25) 32 3200 sold 2250 950 25-Nov 150 (25) balance 1-Dec 200 25 5000 purchase 1-Dec 350 25 8750 balance 1-Dec 200 32 6400 sold 5000 1400 1-Dec 150 25 3750 balance Truck Depreciation Cost = $50,000; Estimated useful life 120,000 miles, residual value $5,000. Will use units of production metho Year 1 3750 useful life residual Machinery Depreciation 10 years $30,000 Double declining 1st year (full) Dep. Per Month Dep. Per Day Dep. X 29 days in Oct Dep. Exp for 1st Year $100,000.00 $8,333.33 $268.82 $7,795.70 $24,462.37 Interest Revenue earned on Bonds Interest for one bond (full year) Interest (2 months) 100 16.666666667 000. Will use units of production method 750 Year Double Declining (Machinery Continued) Beg. Of Year Rate x Beg. Of Year End of Year 1 $500,000.00 $24,462.37 $475,537.63 2 $475,537.63 $95,107.53 $380,430.11 3 $380,430.11 $76,086.02 $304,344.09 4 $304,344.09 $60,868.82 $243,475.27 5 $243,475.27 $48,695.05 $194,780.22 6 $194,780.22 $38,956.04 $155,824.17 7 $155,824.17 $31,164.83 $124,659.34 8 $124,659.34 $24,931.87 $99,727.47 9 $99,727.47 $19,945.49 $79,781.98 10 $79,781.98 $15,956.40 $63,825.58 on Bonds Int. on all 20 bonds 333.333333333 Cash $ $ $ $ $ $ $ $ $ DR 700,000.00 100,000.00 1,500.00 3,200.00 3,200.00 3,750.00 4,250.00 120,000.00 333.33 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Common Stock DR CR $ 500,000.00 CR 200,000.00 1,000.00 2,000.00 2,500.00 4,885.33 5,000.00 50,000.00 20,000.00 1,000.00 200,000.00 1,000.00 2,000.00 2,500.00 4,885.33 5,000.00 8,000.00 1,000.00 1,000.00 2,500.00 4,885.33 APIC Common Stock DR CR $ 200,000.00 $ 936,233.33 $ 519,156.00 $ 417,077.33 COGS DR $ 1,000.00 $ 2,000.00 $ 2,250.00 $ 5,000.00 CR $ $ $ $ 500,000.00 $ 200,000.00 Inventory Accounts Payable DR CR DR CR 4,000.00 $ 1,000.00 $ 2,000.00 $ 4,000.00 5,000.00 $ 2,000.00 $ 2,000.00 5,000.00 $ 2,250.00 $ 5,000.00 $ 4,000.00 $ 4,000.00 $ 14,000.00 $ 10,250.00 $ 10,250.00 $ SS Tax Payable DR CR $ 413.33 $ 413.33 $ 413.33 $ 413.33 $ 413.33 $ 413.33 3,750.00 Medicare Tax Payable DR CR $ 96.67 $ 96.67 $ 96.67 $ 96.67 $ 96.67 $ 96.67 $0 $0 FUTA Tax Payable DR CR $ 53.33 $ 53.33 $ 53.33 $ 2,480.00 Treasury Stock DR CR $ 200,000.00 $ 100,000.00 $ $ 580.00 $ 160.00 Common Stock Div. Common Stock Div. Payable DR CR DR CR 8,000.00 $ 8,000.00 $ 8,000.00 $ 200,000.00 $ 100,000.00 $ 8,000.00 $ 8,000.00 $ 100,000.00 Loss on AFS securities DR CR $ 250.00 $ 8,000.00 Accounts Receivable DR CR $ 6,400.00 $ $ 6,400.00 $ 20,000.00 Allowance for Uncoll. Accts Fair Value Adj. for AFS Sec. DR CR DR CR $ 128.00 $ 1,000.00 $ 450.00 $ $ 250.00 Bad Debt Expense DR CR 128.00 128.00 $ $0.00 APIC-Treasury Stock DR CR $ 20,000.00 128.00 $ 1,450.00 Preferred Stock DR CR $ 10,000.00 APIC Pref. Stock Machinery DR CR DR CR $ 90,000.00 $ 500,000.00 Machinery Payable DR 2,500 2,500 2,500 7,500 $ $ $ $ 10,000.00 Rent Expense DR CR 1,000.00 $ 1,000.00 $ 1,000.00 $ $ 3,000.00 SUTA Tax Payable DR CR $ 360.00 $ 360.00 $ 360.00 $ $ 90,000.00 $ 500,000.00 Wages Expense Fed. Inc. Tax Payable DR CR DR CR 6,666.67 1,000.00 6,666.67 1,000.00 6,666.67 1,000.00 $ 20,000.00 Payroll Tax Expense DR CR $ 923.33 $ 923.33 $ 923.33 $ 3,000.00 Investment in AFS sec. DR CR 50,000.00 2,500.00 4,500 $ 1,080.00 $ 2,770.00 $ 50,000.00 7,000.00 Pref. Stock Div. Pref. Stock Div. Payable Delivery Truck DR CR DR CR DR CR 1,000.00 $ 1,000.00 $ 1,000.00 $ 50,000.00 State Inc. Tax Payable DR Investment in HFM sec. DR 20,000 20,000 Truck Payable DR $ 1,000.00 $ 1,000.00 $ 1,000.00 Depreciation Expense DR CR $ 3,750.00 $ 25,000.00 $ 28,750.00 Unreal. Gain on AFS Sec. DR CR $ 1,000.00 $ 1,000.00 $0.00 $ 50,000.00 Acc. Dep.-Truck Acc. Dep-Machinery DR CR DR CR $ 3,750.00 25,000.00 $ 3,750.00 Unreal. Loss on AFS Sec. DR CR $ 450.00 $ 450.00 25,000.00 Interest Revenue DR Machinery Payable CR 300,000 Sales DR CR 1,500 3,200 3,200 6400 300,000 292,500 State Inc. Tax Payable CR 204.67 204.67 204.67 614.00 Investment in HFM sec. CR Truck Payable CR 50,000.00 14,300 Local Inc. Tax Payable DR CR 66.67 66.67 66.67 200.00 Office Supplies DR CR 1,000 600.00 1,000 600.00 Gain on Sale of AFS sec. DR CR 1,250.00 50,000.00 Interest Revenue CR 333.33 333.33 1,250.00 Supplies Expense DR CR 600 600 Account Cash Inventory Accounts Receivable Supplies Machinery Truck Investment In HFM Securities Investment In AFS Securities Truck Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Machinery Payable Federal Income Tax Payable State Income Tax Payable Local Income Tax Payable Social Security Tax Payable Medicare Tax Payable DR $417,077.33 $3,750.00 $6,400.00 $400.00 $500,000.00 $50,000.00 $20,000.00 $43,000.00 $50,000.00 $160.00 $1,080.00 $292,500.00 $3,000.00 $614.00 $200.00 $2,480.00 $580.00 $500,000.00 $200,000.00 $10,000.00 $90,000.00 $20,000.00 Common Stock APIC Common Stock Preferred Stock APIC Preferred Stock APIC Treasury Stock Treasury Stock Retained Earnings Common Stock Dividends Preferred Stock Dividends Cost of Goods Sold Sales Gain on AFS Securities Interest Revenue Unrealized Gain on Available for Sale Securities Unrealized Loss on Available for Sale Securities Allowance for Uncollectible Accounts Payroll Tax Expense Wages Expense Rent Expense Depreciation Expense Supplies Expense Bad Debt Expense Loss on AFS Securities Fair Value Adjustment to Available for Sale Securities CR $100,000.00 $0.00 $8,000.00 $1,000.00 $10,250.00 $14,300.00 $1,250.00 $333.33 $1,000.00 $450.00 $128.00 $2,770.00 $20,000.00 $3,000.00 $28,750.00 $600.00 $128.00 $250.00 $1,450.00 Balance $1,216,825.33 $1,188,075.33 Preliminary Trial Balance April 30, 2012 Debit Cash Accounts Receivable Supplies Prepaid Insurance Equipment Office Equipment Land Delivery Van Building Notes Payable Accounts Payable Unearned Service Revenue Mortgage Payable Common Stock Retained Earnings Dividends Sales Salaries and Wages Expense Totals: Credit 250,000.00 0.00 0.00 0.00 300,000.00 150,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 700,000.00 0.00 Account Cash Inventory Accounts Receivable Supplies Machinery Truck Investment In HFM Securities Investment In AFS Securities Cost of Goods Sold Treasury Stock Common Stock Dividends Preferred Stock Dividends Payroll Tax Expense Wages Expense Rent Expense Depreciation Expense Supplies Expense Bad Debt Expense Loss on AFS Securities Fair Value Adjustment to Available for Sale Securities Accumulated Depreciation - Truck Accumulated Depreciation Machinery Sales Truck Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Machinery Payable Federal Income Tax Payable State Income Tax Payable Local Income Tax Payable Social Security Tax Payable Medicare Tax Payable Common Stock APIC Common Stock Preferred Stock APIC Preferred Stock APIC Treasury Stock Gain on AFS Securities Interest Revenue Unrealized Gain on Available for Sale Securities Unrealized Loss on Available for Sale Securities Allowance for Uncollectible Accounts Balance DR $417,077.33 $3,750.00 $6,400.00 $400.00 $500,000.00 $50,000.00 $20,000.00 $43,000.00 $10,250.00 $100,000.00 $8,000.00 $1,000.00 $2,770.00 $20,000.00 $3,000.00 $28,750.00 $600.00 $128.00 $250.00 $1,450.00 CR $3,750.00 $25,000.00 $14,300.00 $50,000.00 $160.00 $1,080.00 $292,500.00 $3,000.00 $614.00 $200.00 $2,480.00 $580.00 $500,000.00 $200,000.00 $10,000.00 $90,000.00 $20,000.00 $1,250.00 $333.33 $1,000.00 $450.00 $128.00 $1,216,825.33 $1,216,825.33 I/S B/S R/E Closing Entries 31-Dec Sales Income Summary (To close out the service revenue account) 31-Dec Income Summary Depreciation Expense (To close out the depreciation expense account) 31-Dec Interest Revenue Income Summary (To close out the interest revenue account) 31-Dec Income Summary Payroll Tax Expense (To close out the payroll tax expense account) 31-Dec Income Summary Wages and Salaries Expense (To close out the wages and salaries expense account) 31-Dec Income Summary Rent Expense (To close out the rent expense account) 31-Dec Income Summary Supplies Expense (To close out the supplies expense account) 31-Dec Income Summary Bad Debt Expense (To close out the bad debt expense account) 31-Dec Income Summary Bad Debt Expense (To close out the bad debt expense account) 31-Dec Income Summary Bad Debt Expense (To close out the bad debt expense account) 31-Dec Income Summary Bad Debt Expense (To close out the bad debt expense account) 31-Dec Income Summary Bad Debt Expense (To close out the bad debt expense account) DR 14,300.00 28,750 333.33 2,770 20,000 3,000 600 128 128 128 128 128 CR 14,300.00 T Accounts (for my use) 28,750 333.33 2,770 Expenses 28,750.00 20,000.00 2770 3000 600 128 20,000 3,000 600 128 128 Income Summary 28750 14,300.00 20,000.00 333.33 2,770.00 3,000.00 600.00 128.00 55248 40,614.67 14,633.33 40614.67 0.00 128 128 128 Retained Earnings -40,614.67 Sales 14,300.00 0.00 Sales 14,300.00 Mandalay Interiors Income Statement For the Period ending Dec. 31, 2012 Sales $14,300.00 COGS $10,250.00 Gross profit $4,050.00 Other revenues Interest Revenue $333.33 Gain on AFS investment $1,250.00 Gain on revaluation $1,000.00 Loss unrealized on AFS Securitie $450.00 Total revenue $7,083.33 Expenses Rent Expense $3,000.00 Depreciation Expense $28,750.00 Supplies expense $600.00 Wages Expense $20,000.00 Payroll Tax Expense $2,770.00 Bad debt expense $128.00 Loss on investment $250.00 FVA on AFS Securities $1,450.00 Total expenses $56,948.00 Net loss -$49,864.67 Mandalay Interiors Statement of Retained Earnings For the Month Ended 12/31/2012 Retained Earnings, Jan. 1 Add: Net Income 0.00 -49,864.67 Less: Common Stock Dividends -8,000.00 Less: Preferred Stock Dividends -1,000.00 Retained Earnings, Dec. 31 -$58,864.67 Mandalay Interiors Balance Sheet As of December 31, 2012 Assets Current Assets Cash AFS Securities Accounts Receivable Less Allowance for Doubtful Accounts Inventory Supplies Total Current Assets Long Term Investments HFM Securities Total Long Term Investments 417,077 43,000 6,400 -128 3,750 400 470,499 20,000 20,000 Property and Equipment, at cost: Truck Less Accumulated Depreciation (Truck) Machinery Less Accumulated Depreciation (Machinery) Total Property and Equipment Total Assets 50,000 -3,750 500,000 -25,000 521,250 1,011,749 ndalay Interiors Balance Sheet December 31, 2012 Liabilities and Shareholders' Equity Current Liabilities Social Security Tax Payable Medicare Tax Payable Federal Income Tax Payable State Income Tax Payable Local Income Tax Payable FUTA Tax Payable SUTA Tax Payable Total Current Liabilities 2,480 580 3,000 614 200 160 1080 8,114 Long Term Debt Truck Payable Machinery Payable 50,000 292,500 Total Long Term Debt Total Liabilities 342,500 350,614 Shareholders' Equity Common Stock Preferred Stock APIC Common Stock APIC Preferred Stock Treasury Stock APIC Treasury Stock Retained Earnings Total Shareholders' Equity Total Liabilities and Stockholders' Equity 500,000 10,000 200,000 90,000 -100,000 20000 -58864.67 661,135 1,011,749 Mandalay Interiors Cash Flow Statement For the year ending Operations Net Income Adjustments to reconcile to cash from operating activities Depreciation expense Increase in Inventories Increase in Accounts Receivable Increase in Supplies Increase in Wages Liability (Taxes) Net Cash Flow Provided by Operating Activities Investing Activities Sale of investment securities Purchase of Machinery Purchase of Investment Securities Net Cash Flow Provided from Investing Activities Financing Activities Issuance of Common Stock Issuance of Preferred Stock Repurchase of Stock (Treasury Stock) Net Cash Flow Provided from Financing Activities Net Increase in Cash Beginning Cash Balance Ending Cash Balance 12/31/2012 -49,865 28,750 -3,750 -6,400 -400 8,114 -23,551 1,000 -207,500 -72,872 -279,372 700,000 100,000 -80,000 720,000 417,077 0 417,077 Current Ratio Quick Ratio Accounts Receivable Turnover Days Sales in Receivable Earnings Per Share Price Per Earnings Ratio 57.99 57.52 2.280 163.36 -0.51 -23.59 MP=$12 Accounting 472: Final Project This project is worth 30% of the final grade. Instructions: Using the background information on pages 2-4 (below), complete the following tasks. Submit your project to the \"Final Project Drop Box\" as directed in ANGEL. Task 1. Prepare journal entries for listed transactions throughout the year. Task 2. Prepare balances for all accounts to be used in financial statements. Task 3. Prepare the following financial statements: a) Income Statement b) Retained Earnings Statement c) Balance Sheet d) Cash Flow Statement (Indirect Method) Task 4. Prepare the following financial ratios using the Income Statement and Balance Sheet: a) Current Ratio b) Quick Ratio c) Accounts Receivable Turnover d) Days Sales in Receivable e) Earnings Per Share f) Price Per Earnings Ratio (Assume Market Price = $12) Page | 1 Accounting 472: Final Project Background: On September 30, 2012, Angie Stowe decided to open a corporation that she will call Mandalay Interiors. Instead of doing anything in September, she decides she will begin the company the next day, October 1, 2012. Assume then that all balances on December 31, 2007, are $0. She has also decided that she will sell shares of stock to the public. Furthermore, she has decided that she will use a perpetual inventory system with the FIFO method. She determines that depreciation methods will be determined based on the items purchased. The company employs three employees. These employees earn salaries of $80,000 in total per year, paid at the end of each month. The federal income tax withheld is 15%, state taxes withheld are 3.07%, and local taxes withheld are at the rate of 1%. And of course, the company will need to remember FICA taxes of 7.65%. The state unemployment tax rate is 5.4%, and the Federal unemployment tax rate is .8%. October 01, 2012: Sold 100,000 shares of $5 par common stock for $7. Sold 10,000 shares of $1 par 10% preferred stock for $10. October 02, 2012: Purchased inventory on account for $4,000 (200 units @ $20). October 03, 2012: Purchased machinery costing $500,000, paying $200,000 in cash, and the rest on account (noninterest bearing). Name payable account: Machinery Payable. (Estimated useful life of 10 years, and residual value of $30,000.) Will use double declining method of depreciation. October 03, 2012: Entered into a lease agreement to rent a building. (No entry needed here.) October 15, 2012: Sold 50 units of inventory for $30 cash. October 30, 2012: Paid for October rent on building: $1,000. October 30, 2012: Paid portion of Accounts Payable due: $2,000 October 30, 2012: Paid portion of Machinery Payable owed: $2,500 October 31, 2012: Paid payroll for October November 1, 2012: Purchased inventory for cash for $5,000 (200 units @ $25) Page | 2 Accounting 472: Final Project November 1, 2012: With extra cash available, company decides to invest into other companies with the following investments: 100 shares of Company A stock at $50 per share 500 shares of Company B stock at $90 per share 20 $1000 par value 10% bonds at par plus accrued interest Interest paid June 31 and December 31 Investments are considered available for sale November 3, 2012: Purchased office supplies for cash of $1000. November 15, 2012: Sold 100 units of inventory for $32 cash. November 16, 2012: Reacquired 20,000 shares of stock for a price of $10. November 17, 2012: Board of directors declares 10 cents per share dividend payable December 15, 2012, for common shareholders of record on December 1, 2012. Also declares the yearly preferred dividends with the same dates. November 25, 2012: Sold 100 units of inventory for $32. November 30, 2012: Paid for November rent on building: $1,000. November 30, 2012: Paid rest of A/P, $2,000. November 30, 2012: Paid portion of Machinery Payable owed: $2,500. November 30, 2012: Paid payroll for November. December 1, 2012: Purchased inventory for cash: $5000 (200 units @ $25). December 1, 2012: Purchased new delivery truck on account for $50,000, name payable account: Truck Payable. (Estimated useful life 120,000 miles, residual value $5,000. Will use units of production method for depreciation.) December 1, 2012: Sold 50 shares of both company A & B stock for $75 and $85 respectively. December 1, 2012: Sold 200 units of inventory for $32, on account. December 15, 2012: Paid dividends owed to shareholders. December 16, 2012: Resold reacquired 10,000 shares for $12. December 31, 2012: Paid for December rent on building: $1,000. Page | 3 Accounting 472: Final Project December 31, 2012: Paid portion of Machinery Payable owed: $2,500. December 31, 2012: Paid payroll for December. December 31, 2012: Delivery truck has been used for 10,000 miles this year. December 31, 2012: A count of supplies reveals we have $400 of supplies left on hand. December 31, 2012: Fair market values of the available for sale investments: Company A: $70 per share Company B: $89 per share Bonds have no change in value December 31, 2012: We estimate that 2% of receivables will become delinquent. Page | 4