See attached file for questions

The firm billed revenues on account?

Every time a sale is recorded, you must also record the charge to COGS & Inv.Use 70% of sales?

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#1 #2 #3 #4 #5 #6 #7 #8 Prepare Income Statement & Balance Sheet for Previous Month. Record the Journal Extries for Current Month. Post your entires to the Gernral Ledger. Record your Total Debits and Credits befote your Adjusting Entries. Record your Adjusting Entries. Record your Total DR/CR for your Adjusted Trial Balance. Prepare Income Statement & Balance Sheet for Curent month. Calculate all the Financial Ratios on last tab. FINANCIAL TRANSACTION 1 The firm billed revenues on account. Every time a sale is recorded, you must 1.1 also record the charge to COGS & Inv. Use 70% of sales. GENERAL LEDGER ACCT Transaction Amount $50,000 Figure out. 2 The firm purchased new machinery with a long term bank loan. $600,000 3 The firm redeemed investments for working capital (cash). $100,000 4 The firm purchased inventory on account. $200,000 5 The firm paid its 6 month premium for its car insurance policy. $10,000 6 The firm paid its week 1 payroll. $10,000 7 The firm purchased supplies on account. 8 The firm decides to bring in more investors. Sells 100,000 shares for $20/sh. Par value = $1. 9 The firm decides to pay some of its notes payable. Also incurs an interest penalty. penaty -->> $5,000 Figure out. $1,000,000 $5,000 DR/(CR) 10 The firm purchases inventory on accounnt from its vendors. $400,000 11 The firm records week 2 sales. 90% on account. 10% in cash. $180,000 12 CFO tells Accounting to make a payment on accounts payable. $400,000 13 The firm pays its employees for week 2 work. 14 Factory has a bad week. Some merchandise is returned. 15 The firm pays all its quarterly taxes from the previous quarter. $12,000 $2,500 Figure out. ADJUSTING JOUNRAL ENTRIES The office manager does a quick supply 16 inventory audit. She calculates supplies have been used up. $3,500 CFO tells you that all EQUIPMENT balance 17 from last month should be depreciated using straigh line over 120 mos. Figure out. CFO tells you that all PLANT balance from 18 last month should be depreciated using straigh line over 240 mos. Figure out. Some prepaid insurance was depleted during the month. $3,000 19 2 days worth of salaries need to be 20 accrued at the end of the month, to be paid next month. Bookkeeper forgot to record Week 3 and 21 Week 4 sales. No cash sales for week 3 and 4. $1,500 $138,000 22 Don't forget to record the COGS impact on the above sales transactions. Bookeeper forgot to record Repairs & 23 Maintenance for the month. Paid with cash. Credit card fees of 2% of sales (for the 24 month) were erroneously recorded to the sales account. Need JE to correct. Figure out. $1,800 Figure out. HINT: Credit should be applied to the asset account impacted when sales are recorded. 25 Utilitiy expense invoice was found in the bookeeper drawer. Bill paid immediately. Final entry of the month is to accrue a 26 30% corporarte tax on the pretax income for the month. $28,000 Figure out. Company General Ledger SHORT TERM ASSETS Cash 50,000 50,000 50,000 - Investments 854,000 854,000 854,000 - - Inventory 180,000 180,000 180,000 Supplies 6,000 - - 1,800,000 1,800,000 - Equipment 750,000 750,000 750,000 - 300,000 300,000 - (560,000) (560,000) - (210,000) (210,000) Uneraned Revenue (25,000) - (450,000) (450,000) Goodwill 300,000 - LIABILITIES Accounts Payable (560,000) Salaries Payable (210,000) Accumulated Depreciation (450,000) Prepaid Expenses 15,000 15,000 15,000 2,500,000 2,500,000 Plant 1,800,000 Accounts Receivable 350,000 350,000 350,000 LONG TERM ASSETS Property 2,500,000 - (25,000) (25,000) Taxes Payable (75,000) - (75,000) (75,000) Notes Payable (2,000,000) - - (2,000,000) (2,000,000) EQUITY Common Stock - Paid In Capital - Preferred Stock - Treasury Stock 50,000 50,000 50,000 Retained Earnings - 6,000 6,000 - al Ledger EQUITY Common Stock (139,000) (139,000) (139,000) Paid In Capital (200,000) (200,000) (200,000) Preferred Stock (300,000) (300,000) (300,000) Treasury Stock REVENUES Sales Revenue (1,600,000) - (1,600,000) (1,600,000) Sales Discounts 20,000 20,000 20,000 - Retained Earnings (2,550,000) (2,550,000) (2,550,000) 6,000 6,000 - 225,000 225,000 - Taxes Expense 50,000 - Credit Card Fees 6,000 - 800,000 800,000 Salaries Expense 225,000 Refunds 10,000 10,000 10,000 EXPENSES COGS 800,000 50,000 50,000 - Prepaid Expense 18,000 - 18,000 18,000 - Depreciation Expense 40,000 40,000 40,000 Interest Expense 50,000 - 50,000 50,000 - Repairs & Maintence 5,000 5,000 5,000 - Utility Expense 20,000 20,000 20,000 - Insurance Expense 10,000 10,000 10,000 - Trial Balance Previous Month G/L ACCOUNT Cash DEBIT CREDIT Current Month DEBIT 50,000 50,000 Investments 854,000 854,000 Accounts Receivable 350,000 350,000 Inventory 180,000 180,000 Prepaid Expenses 15,000 15,000 Supplies 6,000 6,000 Property 2,500,000 2,500,000 Plant 1,800,000 1,800,000 Equipment 750,000 Accumulated Depreciation Goodwill CREDIT 750,000 (450,000) 300,000 (450,000) 300,000 Accounts Payable (560,000) (560,000) Salaries Payable (210,000) (210,000) Uneraned Revenue (25,000) (25,000) Taxes Payable (75,000) (75,000) Notes Payable (2,000,000) (2,000,000) Common Stock (139,000) (139,000) Paid In Capital (200,000) (200,000) Preferred Stock Treasury Stock (300,000) 50,000 (300,000) 50,000 Retained Earnings (2,550,000) (2,550,000) Sales Revenue (1,600,000) (1,600,000) Sales Discounts 20,000 20,000 Refunds 10,000 10,000 Credit Card Fees 6,000 6,000 COGS 800,000 800,000 Salaries Expense 225,000 225,000 Taxes Expense 50,000 50,000 Prepaid Expense 18,000 18,000 Depreciation Expense 40,000 40,000 Interest Expense 50,000 50,000 Repairs & Maintence 5,000 5,000 Utility Expense 20,000 20,000 Insurance Expense 10,000 10,000 Total Debits + Credits 8,109,000 Variance Total Assets 6,355,000 Total L+E+NI (6,355,000) Net Income (346,000) (8,109,000) 8,109,000 (8,109,000) Increase / Decrease DEBIT CREDIT - - Instructions and Guidance 1. Prepare Your Balance Sheet Below and Income Statement Below. 2. You must use ALL General Ledger accounts in both financial statements. 3. You can insert as many lines as you want. Make sure summing equaitions are correct. 4. Remember all of your data for these financial statements will come from your Trial Balance. Company XYZ Balance Sheet As of November 30, 2016 Previous Balance Current Balance Increase/ Decrease Current Balance Increase/ Decrease Cash Total Assets Total Liabs + Equity Company XYZ Income Statement For the Period Oct 31 to Nov 30, 2016 YTD Previous Balance Sales Net Income GivensCommon Shares O/S Employees Stock Price Annual Dividend $ $ 100,000 10 60.00 2.00 $ $ 120,000 11 65.00 2.00 Company XYZ Financial Ratios As of November 30, 2016 Previous Current Ratio Quick Ratio Accounts Receivabe Days Accounts Receivable Turnover Inventory Days Inventory Turnover Revenues / Plant & Equipment Return on Assets Total Asset Turnover Rev / Employee Net Income / Employee Accounts Payable Days Avg Interest Rate Debt Ratio Equity Ratio Return on Equity COGS Ratio Gross Profit Margin Oper Exp Ratio Operating Profit Margin Net Profit Margin Earnings per Share Price / Earnings Ratio Book Value / Share Market / Book Ratio Market Capitalization Dividend Yield Dividend Payout Ratio Current Change