Prepare a worksheet for a proprictorship service firm.

Prepare financial statements from a worksheet.

Compare expense levels to national averages.

Alter the worksheet to include an additional adjusting entry.

Create a chart showing the amount of all expenses.

PROBLEM DATA

The trial balance of Wikki Cleaners at December $31,2012,$ the end of the current fiscal year, is below:

Information for the adjusting entries is as follows:

a$.$ Cleaning supplies on hand on December $31,2012,$$$18,750$

b$.$ Insurance premiums expired during the year, $$1,800$

REQUIRED

As the accountant for Wikki Cleaners, you have been asked to prepare financial statements for the year. Click the Answer tab and enter your name in cell C$5.$ Nex click the Worksheet tab and enter your name in cell B$1$ of the worksheet. There are eight formulas needed to complete the worksheet. Enter the formulas in the appropriate cells.

Using the information provided above about adjusting entries, enter the adjusting amounts in columns $E$ and $G.$ Also, in column D or F$,$ insert the letter corresponding to the adjusting entry $(a-d).$ Column $A$ is "frozen" on the screen to assist you in completing Requirement $3.$ Columns $H$ and I will automatically change when you enter values in columns $E$ or $G.$

Complete the income statement and balance sheet columns by entering formulas in columns J$,$ K$,$ L$,$ and M that reference the appropriate cells in columns $H$ or $1.$ Net income will be automatically calculated for the income statement and balane sheet. Check to be sure that these numbers are the same. Save the completed file a PIWORK$3.$ Print the worksheet. Also print your formulas using landscape orientation and fit$-$to$-1$ page scaling. Check, figure: Net income $($cell $,$ J$29),$ $$71,320$

WHAT$-$IF ANALYSIS

Suppose you discover that an assistant in your department had misunderstood your instructions and had provided you with wrong information on two of the Idjusting entries. Cleaning supplies consumed during the year should have been $$18,750,$ and insurance premiums unexpired at year$-$end were $$1,800.$ Make the corrections on your worksheet and save the corrected file as PIWORK$4.$ Reprint the worksheet.

Use the space provided on the Answer tab, prepare an income statement, a capital statement, and a balance sheet, using the corrected worksheet data $($P$1$WORK$4),$ Assume that no additional owner investments were made during the year

CHART ANALYSIS

With the PIWORK$4$ file open, click the Chart sheet tab. On the screen, a pie chart shows the percentage composition of the total expenses of Wikki Cleaners. On the Answer tab, compare the percentages of Wikki Cleaners with the national statistics provided. Comment on the differences noted. Why might depreciation, utilities, and rent be so far off from the national percentages?

When the assignment is complete, click the Answer tab and print the Answer sheet. Save the file again as PIWORK$4.$

TICKLERS $($optional$)$

Worksheet. One additional adjusting entry needs to be recorded:

e$.$ Included in the $$28,500$ of rent expense is $$2,000$ that is prepaid rent for $2013.$

On the PIWORK$4$ worksheet insert a new row for Prepaid Rent and record this additional adjusting entry. Preview the printout to make sure that the revised worksheet will print neatly on one page, then print the workshect. Save the revised file as PIWORKT.

Chart. Using the PIWORK$4$ file, create a $3-$D column chart showing the dollar total of each of the expenses of Wikki Cleaners. Use the Chart Data Table as a basis for preparing the chart. Use appropriate titles, legends, and formats. Put your name somewhere on the chart. Save the file again as P$1$WORK$4.$ Select the chart and then print it out.