Option #2: The Accounting Cycle and Inventory Analysis
Please format them close to how the templates are posted at the bottom.
Option #2: The Accounting Cycle and Inventory Analysis Portfolio Project Option #2 is for accounting students who are intuitive learners by nature. You learn best from abstract materials like theories and concepts, enjoy challenges, and tend to be more innovative. For this assignment, you are required to complete the accounting case for Friday Line in Part 1, Bolton Consulting in Part 2, and Aranas Manufacturing in Part 3. Follow the additional instructions provided below. (The templates can be found in Module 8, and by clicking "Next" at the bottom of this page.) Part 1: Friday Line, a modeling agency, completed the following transactions during the first month of operations: April 1: Stockholders invested $65,000 cash along with equipment valued at $32,000 in the company in exchange for 1,000 shares of stock. April 3: Friday Line paid $9,500 cash to settle accounts payable. April 6: Friday Line completed services for a client and immediately received $2,500 cash. April 9: Friday Line completed a $7,500 project for a client who must pay within 30 days. April 12: Friday Line made credit purchases of $9,200 for office equipment and $4,100 for office supplies. Payment is due within 10 days. April 19: Friday Line paid $3,200 cash for the premium on a 12-month insurance policy. April 21: Friday Line pre-paid $12,000 for 12 months' rent for their office space. April 22: Friday Line received $6,000 cash as a partial payment for the work completed on April 9. April 25: Friday Line purchased $725 of additional office supplies on credit. April 26: Friday Line completed work for another client for $3,125 on credit. April 27: Friday Line paid a dividend of $6,500 cash to its stockholders. April 30: Friday Line paid $525 cash for this month's utility bill. Instructions: Prepare journals for the above economic transactions and include the effect that each transaction has on the accounting equation. Use the following assignment template for Friday Line Co. Part 2 The unadjusted trial balance of Bolton Consulting is entered on the partial worksheet below. Bolton Consulting Work Sheet For the year ended December 31 Unadjusted Trial Balance Adjusted Trial Adjustments Balance Income Statement Balance Sheet and Statement of Stockholders' Equity Account Debit Credit Debit Credit/Debit Credit Debit Credit Debit Credit Cash 31,000 Accounts Receivable 8,000 Supplies 12,500 Automobiles 175,000 Accum. Depr. Autos 52,000 Accounts payable 17,500 Unearned fees 26,500 Salaries payable Capital Stock 58,000 Dividends 42,500 Fees earned 241,750 Salary expense 91,000 Rent expense 35,750 Advertising expense Supplies expense Depreciation expense Totals 395,750 395.750 Instructions Complete the worksheet using the following information: (a) Unpaid and unrecorded salaries earned by employees, $6,500. (b) Unused supplies still on hand is $3,200. (c) Machinery depreciation, $20,000. (d) Customers who paid $12,750 in advance have received their services. (e) Advertising for last quarter of the year in the amount of $5,200 remains unpaid and unrecorded. (f) The rent expense incurred and not yet paid or recorded at fiscal year-end is $4,100. Part 3 Aranas Manufacturing, a tool retailer, began year 20x7 with 21,500 units of product in its January 1 inventory, at a cost of $12.50 for each unit. It made successive purchases of its product in year 20x7, as follows. The company uses a periodic inventory system. On December 31, 20x7, a physical count reveals that 35,000 units of its product remain in inventory. Mar. 7 25,000 units @ $16 each May 25 41,500 units @ $19 each Aug. 1 22,750 units @ $23 each Nov. 10 38,100 units @ $24 each Instructions Using the template provided below. 1. Compute the number and total cost of the units available for sale in year 20x7. 2. Compute the amounts assigned to the 20x7 ending inventory, and the cost of goods sold for FIFO, LIFO, and weighted average. 3. The 113,850 units sold are $31 each. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average, which include a detailed cost of goods sold section as part of each statement. (Round your average cost per unit to 2 decimal places.) 4. As the chief accountant of Aranas Manufacturing, provide recommendations, giving all reasons based on your research on retail industry inventory best practices, management on: a. Which inventory method (FIFO, LIFO, average cost, or specific identification) you should use. b. Whether it is a good idea to keep using the periodic system as opposed to the perpetual inventory system. Reminder: Your Part 3 paper should be two to three pages in length total and conform to CSU Global Writing Center e. Include scholarly references as needed in addition to the course textbook to support your views. The CSU Global Library is a good place to find these references. D Credit A B C 1 ACT300 Principles of Accounting | 2 Module 8: Portfolio Project Option #2 (Part 1) 3 Friday Line 4 5 Friday Line 6 Journal Entries 7 For the month ending April 30 8 Date Account Names Debit 9 1-Apr 10 11 12 13 3-Apr 14 15 16 6-Apr 17 18 19 20 9-Apr 21 22 23 12-Apr 24 25 26 27 19-Apr 28 29 30 21-Apr 31 32 33 22-Apr 34 35 36 25-Apr 37 38 39 26-Apr 40 41 42 27-Apr 43 44 30-Apr 45 46 47 1 ACT300 Principles of Accounting! 2 Module 8: Portfolio Project Template Option #2 (Part 2) 3 Worksheet for Bolton Consulting 4 5 6 Bolton Consulting Worksheet For the year ended December 31 7 Account Unadjusted trial balance Adjustments Adjusted trial balance Income statement Balance sheet & Statement of Stockholders' Equity 8 9 Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit 31,000 8,000 12,500 175,000 52,000 10 Cash 11 Accounts Receivable 12 Supplies 13 Automobiles 14 Accum. Depr. - Autos 15 Accounts payable 116 Unearned fees 17 Salaries payable 18 Capital Stock 19 Dividends 17,500 26,500 58,000 42,500 241,750 91,000 35,750 20 Fees earned 21 Salary expense 22 Rent expense 23 Advertising expense 24 Supplies expense 25 Depreciation expense 26 Totals 395,750 395,750 0 0 0 0 0 0 0 0 27 B D E 1 ACT300 Principles of Accounting 2 Module 8: Portfolio Project Template Option 2 (Part 3) 3 Aranas Manufacturing - Inventory Analysis 4 5 Units Cost Total 6 7 Beginning 8 Purchases: 9 March 7 10 May 25 11 August 1 12 November 10 Units available for 13 sale 14 15 Ending units 16 A Unit Cost FIFO LIFO Weighted Average 17 18 19 20 21 22 23 24 FIFO LIFO Weighted Average 25 26 Comparative Income Statement 27 Sales 28 Cost of goods sold 29 Gross Profit 30 21
