Please? - Aaron

Instructions: . Prepare journal entries to record external transactions. Post journal entries to general ledger T accounts. Prepare journal entries to record adjusting entries. Post the adjusting entries to the general ledger T accounts (include a balance on each account) Prepare an adjusted trial balance. Prepare, using good form, an income statement, a statement of stockholders' equity, and a classified balance sheet. Prepare closing journal entries. Post the closing entries to the general ledger T accounts (include a balance on each account). Prepare a post-closing trial balance. Calculate ratios. Once all is completed, submit your practice set in Blackboard. Once submitted, the Practice Set Quiz will be visible in Blackboard, complete this quiz based on the information from your completed practice set. Company Information: McDoogan provides printing services to customers. They began operations on January 1, 2020. In January 2021, they realized the current VP had not created the records in an accounting system, and due to a time issue, the financial information must be recorded by hand to produce GAAP based financials for the year ending 2020. As such, they have hired you as the Accountant to get the manual system completed before implementing software for 2021. The research begins: First, you find the company uses straight-line depreciation for all long-term depreciable assets. They also must use the Allowance method to account for uncollectible accounts to be in line with GAAP. The company has decided to use the calendar year, so December 31 is the company's year-end. The company hired two employees on November 1, 2020. The employees will receive a salary of $2,000 each. Payroll is processed on the 27th of the month creating the employee and the employer taxes and then net pay is paid on the last day of each month. The tax rates are 10% for Federal Income Tax, 8% for state income tax, 7.65% for FICA taxes, and 6.2% for federal and state unemployment on the first $7,000 of each employee earnings per year. Upon further investigation, you find the following information related to the company's transactions during 2020. Process the information and produce GAAP based financials for McDoogan, Inc for the year ending December 31, 2020. McDoogan Inc. engaged in the following transactions in 2020. Jan 1 The owner invested $70,000 into the company in exchange for 5,000 shares of no-par common stock Jan 1 Purchased a computer system for $32,000. Jan 14 Purchased $1,200 of supplies on account. Feb 25 Invoiced clients for services provided on account, $36,000. Mar 31 Paid rent for two years, $19,200. April 1 The company borrowed $50,000 from Bank of America. May 14 Collected $8,500 on account. June 1 Purchase a delivery van to delivery copies to customers, the van had a purchase price of $53,000, taxes on the van were $5,000 and document charges of $1,500 were paid. July 31 Paid $800 on account for supplies purchased on January 14. Aug 10 Received cash for services provided, $10,200. Sept 1 Paid utilities of $4,000. Oct 1 Received $30,000 in advance for services to be provided in the future. Nov 15 Paid for an ad in the local newspaper, $1,500. Nov 27 Processed employee payroll and employer taxes, gross earnings were $4,000. Nov 30 Paid the employee salaries, taxes are not due until January Dec 15 The company declared and paid $6,000 in dividends. Dec 30 Invoiced clients for services performed totaling $9,000. Dec 27 Processed employee payroll and employer taxes, gross earnings were $4,000. Dec 30 Paid the employee salaries, taxes are not due until January McDoogan Inc. Chart of Accounts Account Names Cash Common Stock Accounts Receivable Retained Earnings Allowance for Uncollectible Accounts Dividends Supplies Service Revenue Prepaid Rent Advertising Expense Equipment-Computer Utilities Expense Accumulated Depreciation - Computer Salaries Expense Delivery Van Depreciation Expense Accumulated Depreciation - Delivery Van Rent Expense Interest Expense Accounts Payable Supplies Expense McDoogan Inc. Journal General Date Account Name Debit Credit McDoogan Inc. Taccounts - Post External Transactions' Journal Entries, Adjusting Journal Entries, and Closing Journal Entries Cash Accounts Receivable Supplies Allowance for Uncollectible Accounts Prepaid Rent Accumulated Depreciation- Computer Equipment - Computer Delivery Van Accumulated Depreciation - Delivery Van Accounts Payable Interest Payable Deferred Revenue Salaries Payable Federal Income Taxes Payable State Income Taxes Payable FICA Taxes Payable Unemployment Taxes Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Interest Expense Advertising Expense Depreciation Expense Supplies Expense Utilities Expense Rent Expense Bad Debt Expense Payroll Tax Expense Adjusting Entries The data below was gathered for the accountant to complete December 31 adjusting entries (use the journal below and post to the ledger (T accounts) on pages 5 and 6). At December 31, the Company had $300 of supplies on hand. The computer system purchased on January 1 has a five-year useful life and a $2,000 anticipated salvage value. The delivery van purchased on June 1 has a ten-year useful life and a $5,500 anticipated salvage value. 1% of the ending balance in the accounts receivable account is estimated to become uncollectible. The prepaid rent paid on March 31 was for two years beginning April 1. The $50,000 borrowed from Bank of America on April 1 was a 4 year note with a 9% rate of interest. Principal is due in 4 years, interest is paid annually on April 1. The $30,000 received on October 1 was for services that would be completed equally over 12 months beginning October 1. McDoogan Inc. Journal General Adjusting . Date Account Name Debit Credit Debit Credit McDoogan Inc Adjusted Trial Balance December 31, 2020 Account Name Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Prepaid Rent Equipment-Computer Accumulated Depreciation - Computer Delivery Van Accumulated Depreciation - Delivery Van Accounts Payable Interest Payable Deferred Revenue Salaries Payable Federal Income Taxes Payable State Income Taxes Payable FICA Taxes Payable Unemployment Taxes Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue Advertising Expense Utilities Expense Salaries Expense Depreciation Expense Rent Expense Interest Expense Supplies Expense Bad Debt Expense Nairol Taurunan Supplies Expense Bad Debt Expense Payroll Tax Expense Totals McDoogan Inc Income Statement Year Ended 12-31-2020 McDoogan Inc. Statement of Stockholders' Equity For the Year Ended 12-31-2020 Common Stock Retained Earnings Total Stockholders' Equity McDoogan Inc. Classified Balance Sheet 12-31-2020 Once the financial statements are complete, prepare the closing entries for McDoogan Inc. (use the journal below and post to the ledger (T accounts) on pages 5 and 6). Once you post to the ledger create a post-closing trial balance. McDoogan Inc. Journal General - Closing Date Account Name Debit Credit Credit McDoogan Inc. Post-Closing Trial Balance December 31, 2020 Account Name Debit Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Prepaid Rent Equipment Computer Accumulated Depreciation - Computer Delivery Van Accumulated Depreciation - Delivery Van Accounts Payable Interest Payable Deferred Revenue Salaries Payable Federal Income Taxes Payable State Income Taxes Payable FICA Taxes Payable Unemployment Taxes Payable Notes Payable Common Stock Retained Earnings Total Ratios: Based on the financial statements. Calculate: Return on Assets Current Ratio Acid Test Ratio Debt to Equity Instructions: . Prepare journal entries to record external transactions. Post journal entries to general ledger T accounts. Prepare journal entries to record adjusting entries. Post the adjusting entries to the general ledger T accounts (include a balance on each account) Prepare an adjusted trial balance. Prepare, using good form, an income statement, a statement of stockholders' equity, and a classified balance sheet. Prepare closing journal entries. Post the closing entries to the general ledger T accounts (include a balance on each account). Prepare a post-closing trial balance. Calculate ratios. Once all is completed, submit your practice set in Blackboard. Once submitted, the Practice Set Quiz will be visible in Blackboard, complete this quiz based on the information from your completed practice set. Company Information: McDoogan provides printing services to customers. They began operations on January 1, 2020. In January 2021, they realized the current VP had not created the records in an accounting system, and due to a time issue, the financial information must be recorded by hand to produce GAAP based financials for the year ending 2020. As such, they have hired you as the Accountant to get the manual system completed before implementing software for 2021. The research begins: First, you find the company uses straight-line depreciation for all long-term depreciable assets. They also must use the Allowance method to account for uncollectible accounts to be in line with GAAP. The company has decided to use the calendar year, so December 31 is the company's year-end. The company hired two employees on November 1, 2020. The employees will receive a salary of $2,000 each. Payroll is processed on the 27th of the month creating the employee and the employer taxes and then net pay is paid on the last day of each month. The tax rates are 10% for Federal Income Tax, 8% for state income tax, 7.65% for FICA taxes, and 6.2% for federal and state unemployment on the first $7,000 of each employee earnings per year. Upon further investigation, you find the following information related to the company's transactions during 2020. Process the information and produce GAAP based financials for McDoogan, Inc for the year ending December 31, 2020. McDoogan Inc. engaged in the following transactions in 2020. Jan 1 The owner invested $70,000 into the company in exchange for 5,000 shares of no-par common stock Jan 1 Purchased a computer system for $32,000. Jan 14 Purchased $1,200 of supplies on account. Feb 25 Invoiced clients for services provided on account, $36,000. Mar 31 Paid rent for two years, $19,200. April 1 The company borrowed $50,000 from Bank of America. May 14 Collected $8,500 on account. June 1 Purchase a delivery van to delivery copies to customers, the van had a purchase price of $53,000, taxes on the van were $5,000 and document charges of $1,500 were paid. July 31 Paid $800 on account for supplies purchased on January 14. Aug 10 Received cash for services provided, $10,200. Sept 1 Paid utilities of $4,000. Oct 1 Received $30,000 in advance for services to be provided in the future. Nov 15 Paid for an ad in the local newspaper, $1,500. Nov 27 Processed employee payroll and employer taxes, gross earnings were $4,000. Nov 30 Paid the employee salaries, taxes are not due until January Dec 15 The company declared and paid $6,000 in dividends. Dec 30 Invoiced clients for services performed totaling $9,000. Dec 27 Processed employee payroll and employer taxes, gross earnings were $4,000. Dec 30 Paid the employee salaries, taxes are not due until January McDoogan Inc. Chart of Accounts Account Names Cash Common Stock Accounts Receivable Retained Earnings Allowance for Uncollectible Accounts Dividends Supplies Service Revenue Prepaid Rent Advertising Expense Equipment-Computer Utilities Expense Accumulated Depreciation - Computer Salaries Expense Delivery Van Depreciation Expense Accumulated Depreciation - Delivery Van Rent Expense Interest Expense Accounts Payable Supplies Expense McDoogan Inc. Journal General Date Account Name Debit Credit McDoogan Inc. Taccounts - Post External Transactions' Journal Entries, Adjusting Journal Entries, and Closing Journal Entries Cash Accounts Receivable Supplies Allowance for Uncollectible Accounts Prepaid Rent Accumulated Depreciation- Computer Equipment - Computer Delivery Van Accumulated Depreciation - Delivery Van Accounts Payable Interest Payable Deferred Revenue Salaries Payable Federal Income Taxes Payable State Income Taxes Payable FICA Taxes Payable Unemployment Taxes Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Interest Expense Advertising Expense Depreciation Expense Supplies Expense Utilities Expense Rent Expense Bad Debt Expense Payroll Tax Expense Adjusting Entries The data below was gathered for the accountant to complete December 31 adjusting entries (use the journal below and post to the ledger (T accounts) on pages 5 and 6). At December 31, the Company had $300 of supplies on hand. The computer system purchased on January 1 has a five-year useful life and a $2,000 anticipated salvage value. The delivery van purchased on June 1 has a ten-year useful life and a $5,500 anticipated salvage value. 1% of the ending balance in the accounts receivable account is estimated to become uncollectible. The prepaid rent paid on March 31 was for two years beginning April 1. The $50,000 borrowed from Bank of America on April 1 was a 4 year note with a 9% rate of interest. Principal is due in 4 years, interest is paid annually on April 1. The $30,000 received on October 1 was for services that would be completed equally over 12 months beginning October 1. McDoogan Inc. Journal General Adjusting . Date Account Name Debit Credit Debit Credit McDoogan Inc Adjusted Trial Balance December 31, 2020 Account Name Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Prepaid Rent Equipment-Computer Accumulated Depreciation - Computer Delivery Van Accumulated Depreciation - Delivery Van Accounts Payable Interest Payable Deferred Revenue Salaries Payable Federal Income Taxes Payable State Income Taxes Payable FICA Taxes Payable Unemployment Taxes Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue Advertising Expense Utilities Expense Salaries Expense Depreciation Expense Rent Expense Interest Expense Supplies Expense Bad Debt Expense Nairol Taurunan Supplies Expense Bad Debt Expense Payroll Tax Expense Totals McDoogan Inc Income Statement Year Ended 12-31-2020 McDoogan Inc. Statement of Stockholders' Equity For the Year Ended 12-31-2020 Common Stock Retained Earnings Total Stockholders' Equity McDoogan Inc. Classified Balance Sheet 12-31-2020 Once the financial statements are complete, prepare the closing entries for McDoogan Inc. (use the journal below and post to the ledger (T accounts) on pages 5 and 6). Once you post to the ledger create a post-closing trial balance. McDoogan Inc. Journal General - Closing Date Account Name Debit Credit Credit McDoogan Inc. Post-Closing Trial Balance December 31, 2020 Account Name Debit Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Prepaid Rent Equipment Computer Accumulated Depreciation - Computer Delivery Van Accumulated Depreciation - Delivery Van Accounts Payable Interest Payable Deferred Revenue Salaries Payable Federal Income Taxes Payable State Income Taxes Payable FICA Taxes Payable Unemployment Taxes Payable Notes Payable Common Stock Retained Earnings Total Ratios: Based on the financial statements. Calculate: Return on Assets Current Ratio Acid Test Ratio Debt to Equity