Question: Prepare an analysis that shows how cash-based income is converted to accrual-based net income for 2018.

ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " ^ == BWrap Text General General 7 x 0 2:49 Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Clipboard Font Alignment Number Cells Editing Box A K1X for C D E F G H I J KA 1 Home Video, Inc. Cash Disbursements 1/1/2018 through 3/31/2019 13 18 Date 5/9/2018 2/1/2018 9/23/2018 1/18/2019 6/10/2018 1/15/2018 3/30/2019 1/12/2018 7/22/2018 9/16/2018 11/27/2018 10/3/2018 6/5/2018 12/27/2018 2/1/2018 12/21/2018 1/20/2018 9/15/2018 5/15/2018 12/8/2018 9/7/2018 4/5/2018 8/17/2018 1/9/2019 Category office equipment insurance office equipment office equipment office equipment rent office equipment merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise office equipment merchandise merchandise merchandise merchandise Amount 30,000 28,000 12,000 10,803 8,000 7,000 6,528 5,948 5,914 5,803 5,555 5,522 5,276 5,263 5,243 5,220 5,208 5,160 5.009 5,000 4,976 4,880 4,827 4,800 27 28 33 34 35 36 Sheet1 Ready @ -- + + 120% 2 9 /20/2019 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A / D E F G H I J KA B ASSE Home Insert Page Layout Formulas * Times New Roma - 12 - A A === BI U D A , EEE File C ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles EWrap Text D X D A Y O Sign in Share B Share Upload Paste P T I Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box K1X fac D E F G H I J K 35 36 44 46 8/17/2018 1/9/2019 11/2/2018 8/31/2018 3/26/2019 2/19/2019 10/12/2018 2/28/2019 3/29/2019 1/14/2018 3/25/2018 5/29/2018 3/14/2019 2/18/2019 7/27/2018 3/14/2019 8/13/2018 6/23/2018 3/1/2018 3/3/2019 11/30/2018 11/22/2018 3/20/2019 merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise office equipment 4,827 4.800 4,798 4,776 4,608 4,567 4,489 4,468 4.290 4,267 4,167 4,165 4,102 4,078 4,042 4,025 3,971 3,967 3,929 3,883 3,855 3,852 3.807 49 51 54 55 56 57 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A / D E F G H I J KA B ASSE Home Insert Page Layout Formulas * Times New Roma - 12 - A A === BI U D A , EEE File C ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles EWrap Text D X D A Y O Sign in Share B Share Upload Paste P T I Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box D E F G H I J KA 57 11/22/2018 3/20/2019 1/20/2018 2/3/2019 9/2/2018 5/20/2018 12/2/2018 12/18/2018 4/15/2018 12/17/2018 1/11/2019 12/25/2018 11/15/2018 11/2/2018 6/16/2018 3/6/2018 2/18/2019 9/12/2018 1/1/2019 5/15/2018 2/18/2019 3/9/2019 2/15/2019 merchandise office equipment merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise 3,852 3,807 3,710 3,618 3,529 3,446 3,317 3,170 3,138 3,092 3,025 3,018 3,000 2,855 2,544 2,537 2,410 2,300 2.212 2,139 2,132 2,119 2.089 72 74 75 76 77 78 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A A LC E F G H I J KA ES File Home Insert Page Layout Formulas D ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles * Times New Roma - 12 - A A === EWrap Text D X D A Y O Sign in Share B Share Upload Paste I P T BI U D A , EEE Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box D E F G H I J KA 77 merchandise merchandise 79 80 rent rent rent rent rent rent rent rent rent 87 88 3/9/2019 2/15/2019 2/15/2018 3/15/2018 4/15/2018 5/15/2018 6/15/2018 7/15/2018 8/15/2018 9/15/2018 10/15/2018 11/15/2018 1/5/2019 1/15/2019 2/15/2019 3/15/2019 9/25/2018 3/2/2019 6/23/2018 4/11/2018 3/23/2018 1/16/2019 4/15/2018 rent 2.119 2,089 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 1,996 1,977 1,944 1,903 1,845 1,843 1.833 89 rent rent rent rent merchandise merchandise merchandise merchandise merchandise merchandise merchandise 97 -------- 99 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A A LC E F G H I J KA ES File Home Insert Page Layout Formulas D ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles * Times New Roma - 12 - A A === EWrap Text D X D A Y O Sign in Share B Share Upload Paste I P T BI U D A , EEE Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font G Cells Box B D E F G H I J KO 117 118 119 120 121) 122 123 124 125 126 A 5/15/2018 10/21/2018 11/26/2018 10/19/2018 1/5/2019 11/12/2018 1/22/2019 9/29/2018 8/26/2018 7/19/2018 2/18/2019 1/24/2018 9/11/2018 1/9/2018 12/10/2018 2/23/2019 9/18/2018 4/19/2018 8/1/2018 6/25/2018 6/22/2018 5/2/2018 6/12/2018 127 128 supplies merchandise supplies supplies supplies supplies supplies supplies supplies supplies supplies supplies supplies merchandise supplies merchandise supplies supplies supplies supplies merchandise merchandise supplies 1.279 1,259 1.249 1,222 1,208 1,183 1,180 1,170 1,162 1,160 1,111 1,108 1,108 1,090 1,047 1,040 1.038 1,012 129 130 131 132 133 134 135 984 136 137 971 959 913 902 138 139 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A A LC E F G H I J KA ES File Home Insert Page Layout Formulas D ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles * Times New Roma - 12 - A A === EWrap Text D X D A Y O Sign in Share B Share Upload Paste I P T BI U D A , EEE Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box C D E F G H I J KO 136 971 137 138 139 140 141 959 913 902 894 825 786 773 142 143 144 766 758 145 146 147 756 6/25/2018 6/22/2018 5/2/2018 6/12/2018 4/11/2018 7/16/2018 7/31/2018 2/2/2019 7/10/2018 1/21/2019 8/28/2018 9/18/2018 1/22/2018 3/13/2019 10/4/2018 10/22/2018 2/22/2019 3/26/2019 8/12/2018 8/6/2018 6/10/2018 8/4/2018 12/12/2018 B supplies merchandise merchandise supplies supplies other expenses supplies other expenses other expenses other expenses other expenses merchandise merchandise merchandise other expenses other expenses merchandise supplies supplies merchandise other expenses supplies other expenses 148 149 150 151 152 153 154 155 752 736 722 711 686 677 677 675 671 669 646 633 156 157 158 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A A LC E F G H I J KA ES File Home Insert Page Layout Formulas D ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles * Times New Roma - 12 - A A === EWrap Text D X D A Y O Sign in Share B Share Upload Paste I P T BI U D A , EEE Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box C D E F G H I J KO 157 646 633 158 627 159 160 161 162 163 164 165 166 625 619 617 605 597 571 567 556 548 536 533 167 8/4/2018 12/12/2018 3/3/2019 4/2/2018 12/5/2018 6/25/2018 3/18/2018 7/12/2018 9/19/2018 6/17/2018 3/27/2018 5/17/2018 1/21/2018 8/18/2018 4/16/2018 2/27/2019 9/14/2018 1/29/2019 3/14/2019 1/15/2019 8/24/2018 3/25/2018 5/24/2018 168 supplies other expenses supplies merchandise merchandise supplies supplies other expenses other expenses supplies other expenses other expenses supplies supplies other expenses other expenses other expenses other expenses merchandise other expenses other expenses supplies supplies 169 170 171) 523 172 521 515 173 174 175 499 499 176 497 177 492 178 484 479 179 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A A LC E F G H I J KA ES File Home Insert Page Layout Formulas D ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles * Times New Roma - 12 - A A === EWrap Text D X D A Y O Sign in Share B Share Upload Paste I P T BI U D A , EEE Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box K1X fac D E F G H I J KA 185 186 187 188 189 190 191 442 426 394 375 373 353 343 325 322 313 192 301 193 194 195 196 197 198 199 1/27/2019 9/19/2018 3/14/2019 11/24/2018 10/12/2018 4/3/2018 3/1/2019 1/29/2018 4/19/2018 8/26/2018 7/21/2018 7/2/2018 1/25/2018 4/18/2018 10/18/2018 9/27/2018 1/27/2019 8/26/2018 11/21/2018 4/13/2018 6/15/2018 2/3/2019 4/22/2018 merchandise other expenses other expenses other expenses other expenses other expenses other expenses supplies other expenses supplies other expenses supplies other expenses supplies other expenses supplies merchandise other expenses other expenses supplies other expenses other expenses supplies 200 300 284 269 264 244 212 210 198 183 201 202 203 204 205 178 206 151 207 141 Home Video, Inc. is a retailer of home theater and wired home products. The company was founded in early 2018 by Jesse Daniels who had significant experience in the industry and numerous contacts. As a result, the business has achieved strong sales in its first year. During 2018, Home Video, Inc. recorded all cash receipts and cash disbursements. However, Home Video, Inc.'s banker is requiring an income statement and balance sheet prepared on an accrual basis. The following is a recap of the cash receipts for 2018: 3. The equipment purchased during 2018 is depreciated on a straight-line basis assuming no salvage value. The firm uses a convention where one-half year of depreciation is taken in the year of acquisition (regardless of the actual purchase date) 4. The insurance payment was for a 1-year policy starting on February 1, 2018. 5. At year-end, $21,000 is owed to suppliers for merchandise purchased on credit and received. 6. At year-end, merchandise inventory costing $53,700 and supplies totaling $6,400 remained on hand. 7. Salaries earned, but not yet paid to employees at year-end totaled $7,300. 8. The bank loan requires interest at 10% per year and was issued on June 1, 2018. The principal and interest are to be repaid together on May 31, 2019. $ Collections from customers Proceeds from bank loan Proceeds from sale of common stock 356,800 75,000 100.000 531,800 $ The cash disbursements data is available on the attached Excel sheet. However, the data needs to be analyzed, categorized, and summarized. In addition, Home Video, Inc.'s payroll disbursements for wages totaled $105,200. The data was obtained from a separate (not provided) payroll journal. Daniels', a family friend, has asked for your assistance in preparing Home Video, Inc.'s financial statements at December 31, 2018 on an accrual basis. The following additional information is available: 1. Customers owed the company $16,500 at year-end for credit sales. Also, Home Video, Inc.'s cash collections included $7,000 of amounts collected in advance from other customers for services to be performed in 2019. 2. The firm signed a 3-year lease for a retail store with rent payments starting in January 2018. The rent is due on the 15th of every month. Additionally, a security deposit of $5,000 was paid along with the first rent payment. This deposit is likely to be returned at the end of the lease term. End of document I ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " ^ == BWrap Text General General 7 x 0 2:49 Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Clipboard Font Alignment Number Cells Editing Box A K1X for C D E F G H I J KA 1 Home Video, Inc. Cash Disbursements 1/1/2018 through 3/31/2019 13 18 Date 5/9/2018 2/1/2018 9/23/2018 1/18/2019 6/10/2018 1/15/2018 3/30/2019 1/12/2018 7/22/2018 9/16/2018 11/27/2018 10/3/2018 6/5/2018 12/27/2018 2/1/2018 12/21/2018 1/20/2018 9/15/2018 5/15/2018 12/8/2018 9/7/2018 4/5/2018 8/17/2018 1/9/2019 Category office equipment insurance office equipment office equipment office equipment rent office equipment merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise office equipment merchandise merchandise merchandise merchandise Amount 30,000 28,000 12,000 10,803 8,000 7,000 6,528 5,948 5,914 5,803 5,555 5,522 5,276 5,263 5,243 5,220 5,208 5,160 5.009 5,000 4,976 4,880 4,827 4,800 27 28 33 34 35 36 Sheet1 Ready @ -- + + 120% 2 9 /20/2019 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A / D E F G H I J KA B ASSE Home Insert Page Layout Formulas * Times New Roma - 12 - A A === BI U D A , EEE File C ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles EWrap Text D X D A Y O Sign in Share B Share Upload Paste P T I Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box K1X fac D E F G H I J K 35 36 44 46 8/17/2018 1/9/2019 11/2/2018 8/31/2018 3/26/2019 2/19/2019 10/12/2018 2/28/2019 3/29/2019 1/14/2018 3/25/2018 5/29/2018 3/14/2019 2/18/2019 7/27/2018 3/14/2019 8/13/2018 6/23/2018 3/1/2018 3/3/2019 11/30/2018 11/22/2018 3/20/2019 merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise office equipment 4,827 4.800 4,798 4,776 4,608 4,567 4,489 4,468 4.290 4,267 4,167 4,165 4,102 4,078 4,042 4,025 3,971 3,967 3,929 3,883 3,855 3,852 3.807 49 51 54 55 56 57 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A / D E F G H I J KA B ASSE Home Insert Page Layout Formulas * Times New Roma - 12 - A A === BI U D A , EEE File C ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles EWrap Text D X D A Y O Sign in Share B Share Upload Paste P T I Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box D E F G H I J KA 57 11/22/2018 3/20/2019 1/20/2018 2/3/2019 9/2/2018 5/20/2018 12/2/2018 12/18/2018 4/15/2018 12/17/2018 1/11/2019 12/25/2018 11/15/2018 11/2/2018 6/16/2018 3/6/2018 2/18/2019 9/12/2018 1/1/2019 5/15/2018 2/18/2019 3/9/2019 2/15/2019 merchandise office equipment merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise merchandise 3,852 3,807 3,710 3,618 3,529 3,446 3,317 3,170 3,138 3,092 3,025 3,018 3,000 2,855 2,544 2,537 2,410 2,300 2.212 2,139 2,132 2,119 2.089 72 74 75 76 77 78 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A A LC E F G H I J KA ES File Home Insert Page Layout Formulas D ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles * Times New Roma - 12 - A A === EWrap Text D X D A Y O Sign in Share B Share Upload Paste I P T BI U D A , EEE Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box D E F G H I J KA 77 merchandise merchandise 79 80 rent rent rent rent rent rent rent rent rent 87 88 3/9/2019 2/15/2019 2/15/2018 3/15/2018 4/15/2018 5/15/2018 6/15/2018 7/15/2018 8/15/2018 9/15/2018 10/15/2018 11/15/2018 1/5/2019 1/15/2019 2/15/2019 3/15/2019 9/25/2018 3/2/2019 6/23/2018 4/11/2018 3/23/2018 1/16/2019 4/15/2018 rent 2.119 2,089 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 1,996 1,977 1,944 1,903 1,845 1,843 1.833 89 rent rent rent rent merchandise merchandise merchandise merchandise merchandise merchandise merchandise 97 -------- 99 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A A LC E F G H I J KA ES File Home Insert Page Layout Formulas D ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles * Times New Roma - 12 - A A === EWrap Text D X D A Y O Sign in Share B Share Upload Paste I P T BI U D A , EEE Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font G Cells Box B D E F G H I J KO 117 118 119 120 121) 122 123 124 125 126 A 5/15/2018 10/21/2018 11/26/2018 10/19/2018 1/5/2019 11/12/2018 1/22/2019 9/29/2018 8/26/2018 7/19/2018 2/18/2019 1/24/2018 9/11/2018 1/9/2018 12/10/2018 2/23/2019 9/18/2018 4/19/2018 8/1/2018 6/25/2018 6/22/2018 5/2/2018 6/12/2018 127 128 supplies merchandise supplies supplies supplies supplies supplies supplies supplies supplies supplies supplies supplies merchandise supplies merchandise supplies supplies supplies supplies merchandise merchandise supplies 1.279 1,259 1.249 1,222 1,208 1,183 1,180 1,170 1,162 1,160 1,111 1,108 1,108 1,090 1,047 1,040 1.038 1,012 129 130 131 132 133 134 135 984 136 137 971 959 913 902 138 139 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A A LC E F G H I J KA ES File Home Insert Page Layout Formulas D ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles * Times New Roma - 12 - A A === EWrap Text D X D A Y O Sign in Share B Share Upload Paste I P T BI U D A , EEE Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box C D E F G H I J KO 136 971 137 138 139 140 141 959 913 902 894 825 786 773 142 143 144 766 758 145 146 147 756 6/25/2018 6/22/2018 5/2/2018 6/12/2018 4/11/2018 7/16/2018 7/31/2018 2/2/2019 7/10/2018 1/21/2019 8/28/2018 9/18/2018 1/22/2018 3/13/2019 10/4/2018 10/22/2018 2/22/2019 3/26/2019 8/12/2018 8/6/2018 6/10/2018 8/4/2018 12/12/2018 B supplies merchandise merchandise supplies supplies other expenses supplies other expenses other expenses other expenses other expenses merchandise merchandise merchandise other expenses other expenses merchandise supplies supplies merchandise other expenses supplies other expenses 148 149 150 151 152 153 154 155 752 736 722 711 686 677 677 675 671 669 646 633 156 157 158 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A A LC E F G H I J KA ES File Home Insert Page Layout Formulas D ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles * Times New Roma - 12 - A A === EWrap Text D X D A Y O Sign in Share B Share Upload Paste I P T BI U D A , EEE Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box C D E F G H I J KO 157 646 633 158 627 159 160 161 162 163 164 165 166 625 619 617 605 597 571 567 556 548 536 533 167 8/4/2018 12/12/2018 3/3/2019 4/2/2018 12/5/2018 6/25/2018 3/18/2018 7/12/2018 9/19/2018 6/17/2018 3/27/2018 5/17/2018 1/21/2018 8/18/2018 4/16/2018 2/27/2019 9/14/2018 1/29/2019 3/14/2019 1/15/2019 8/24/2018 3/25/2018 5/24/2018 168 supplies other expenses supplies merchandise merchandise supplies supplies other expenses other expenses supplies other expenses other expenses supplies supplies other expenses other expenses other expenses other expenses merchandise other expenses other expenses supplies supplies 169 170 171) 523 172 521 515 173 174 175 499 499 176 497 177 492 178 484 479 179 ES ACCT 317 FA19 Excel #1 Data - Excel 0 0 - Sign in X Share File Home Insert Page Layout Formulas Data Review View Tell me what you want to do... 0 Times New Roma " 12 " A A === Wrap Tent General General 1 x 0 Ay B Paste B I U 1 A Merge & Center - $ -% 48,99 Insert Delete Format Share Upload Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells Box A A LC E F G H I J KA ES File Home Insert Page Layout Formulas D ACCT 317 FA19 Excel #1 Data - Excel Data Review View Tell me what you want to do... General E Merge & Center - $ % , 8.09 Conditional Format as Cell Formatting Table Styles Alignment Number Styles * Times New Roma - 12 - A A === EWrap Text D X D A Y O Sign in Share B Share Upload Paste I P T BI U D A , EEE Insert Delete Format Sort & Find & Filter - Select Editing Clipboard Font Cells Box K1X fac D E F G H I J KA 185 186 187 188 189 190 191 442 426 394 375 373 353 343 325 322 313 192 301 193 194 195 196 197 198 199 1/27/2019 9/19/2018 3/14/2019 11/24/2018 10/12/2018 4/3/2018 3/1/2019 1/29/2018 4/19/2018 8/26/2018 7/21/2018 7/2/2018 1/25/2018 4/18/2018 10/18/2018 9/27/2018 1/27/2019 8/26/2018 11/21/2018 4/13/2018 6/15/2018 2/3/2019 4/22/2018 merchandise other expenses other expenses other expenses other expenses other expenses other expenses supplies other expenses supplies other expenses supplies other expenses supplies other expenses supplies merchandise other expenses other expenses supplies other expenses other expenses supplies 200 300 284 269 264 244 212 210 198 183 201 202 203 204 205 178 206 151 207 141 Home Video, Inc. is a retailer of home theater and wired home products. The company was founded in early 2018 by Jesse Daniels who had significant experience in the industry and numerous contacts. As a result, the business has achieved strong sales in its first year. During 2018, Home Video, Inc. recorded all cash receipts and cash disbursements. However, Home Video, Inc.'s banker is requiring an income statement and balance sheet prepared on an accrual basis. The following is a recap of the cash receipts for 2018: 3. The equipment purchased during 2018 is depreciated on a straight-line basis assuming no salvage value. The firm uses a convention where one-half year of depreciation is taken in the year of acquisition (regardless of the actual purchase date) 4. The insurance payment was for a 1-year policy starting on February 1, 2018. 5. At year-end, $21,000 is owed to suppliers for merchandise purchased on credit and received. 6. At year-end, merchandise inventory costing $53,700 and supplies totaling $6,400 remained on hand. 7. Salaries earned, but not yet paid to employees at year-end totaled $7,300. 8. The bank loan requires interest at 10% per year and was issued on June 1, 2018. The principal and interest are to be repaid together on May 31, 2019. $ Collections from customers Proceeds from bank loan Proceeds from sale of common stock 356,800 75,000 100.000 531,800 $ The cash disbursements data is available on the attached Excel sheet. However, the data needs to be analyzed, categorized, and summarized. In addition, Home Video, Inc.'s payroll disbursements for wages totaled $105,200. The data was obtained from a separate (not provided) payroll journal. Daniels', a family friend, has asked for your assistance in preparing Home Video, Inc.'s financial statements at December 31, 2018 on an accrual basis. The following additional information is available: 1. Customers owed the company $16,500 at year-end for credit sales. Also, Home Video, Inc.'s cash collections included $7,000 of amounts collected in advance from other customers for services to be performed in 2019. 2. The firm signed a 3-year lease for a retail store with rent payments starting in January 2018. The rent is due on the 15th of every month. Additionally, a security deposit of $5,000 was paid along with the first rent payment. This deposit is likely to be returned at the end of the lease term. End of document