Service Price per hour provided: $96.00 Sales Price per unit of inventory sold: $84.00 Cost per unit of inventory sold: $38.75

This is the information given and parts that need to be completed for the the problem:These are the blank templates that should be used to complete each part

Your company began operations on December 1. You will be required to complete the accounting cycle for your company in December and prepare financial statements as you have chosen December 31 as your corporation's fiscal year-end. You will receive unique prices for your transactions in an email sent directly to you (so check your WSU email later today) The project will not be the same for all students. Remember the financial statements are linked so make sure you end up with assets = liabilities + Stockholders' Equity on your Balance Sheet Financial Statement when you are done! Part 1 - Create a hypothetical service/merchandising company. It must include sales of merchandise along with revenue from performing services. You will determine your company name, services to be provided and the product to be sold. You will be assigned prices. You will include the following on the first page of the project (see template): Corporate name of your choice Service provided and service price Product sold, sales price, and cost of product (Your unique assigned revenue per service hour and per unit of product sold along with the cost of goods sold per unit of product sold is emailed to you) Brief Description of Mission Statement and Corporation's Operations 230 Course Project Part 2 - General Journal (L03-2) Post the following journal entries to the general journal. Trans. Date Description Sell 45,000 shares of no-par value common stock for $130,000 to obtain Dec. 1 the funds necessary to start your business. Dec. 1 Borrow $30,000 from the local bank and sign a one-year note. Interest and principal to be paid at maturity. The interest rate is 6%. Purchase equipment necessary for business operations for $25,000 cash. Dec. 1 The equipment has a five-year life with a residual value of $4,000. Dec. 1 Pay one year of rent in advance, $24,000 ($2,000 per month). Dec. 1 Purchased vehicle for $40,000. It has a 4-year useful life with residual value of $4,000. Dec. 3 Purchase supplies on account, $1,000. Dec. 3 Purchase 300 units of inventory with cash. Dec. 6 Provide 25 hours of services to customers for cash (calculate using your hourly service rate) no terms specified. Dec. 10 Sell 200 units of inventory on account. (Perpetual method = 2 entries) Dec. 12 Dec. 15 Dec. 20 Sell 50 units of inventory to a customer on account with a sales discount of 2/10, n/30. (Perpetual method= 2 entries) Purchase an additional 300 units of inventory on account with terms 4/10 net 30. The customer who purchased product on December 12th pays the amount due (within discount period). Receive cash in advance for 25 hours of services to be completed in the future. Company pays invoice for inventory purchased on December 15th within discount terms. Sell 200 units of inventory to a customer who signs a 6-month promissory note at 10% interest for the balance due. (end of month so no interest would be accrued) perpetual method = 2 entries Dec. 23 Dec. 25 Dec. 31 230 Course Project Pay employee salaries, $4,000. Dec. 31 16 Pay cash dividends to shareholders, $1,000. Dec. 31 17 Vehicle did not meet expectations sold back to dealership for $38,000. (Record depreciation at date of sale and then record sale) 18 Dec. 31 Part 3-General Ledger (LO3-2) - Post the information from the journal entries into the general ledger an calculate balances Part 4 Trial Balance (LO3-2) Prepare a trial bala nce from the information in the general ledger. Part 5-Adjusting journal Entries - (LO3-3) - Post the following adjusting entries to the general journal Record the portion of the Prepaid Rent used in December Dec. 31 Adj-1 Dec. 31 The company has $400 of supplies left at month end. Adj-2 Record one month of depreciation for the equipment purchased on December 1st. The equipment has a useful life of 5 years and a $4,000 Adj-3 Dec. 31 residual value. Provide 10 hours of services that were paid in advance on December Adj-4 Dec. 31 23rd Record the receipt of a December $300 utility bill to be paid on January 5th Adj-5 Dec. 31 Record accrued interest on the $30,000 -1 year note payable. The annual interest rate is 6%. Interest is paid on note maturity. Adj-6 Dec. 31 Employees earned $1,000 the last week in December that will be paid on January 10th of next year. Adj-7 Dec. 31 Estimate that 3% of the accounts receivable at the end of the year will Adj-8 Dec. 31 not be collected and record bad debt adjustment. Adj-9 Record Income Tax at a 21% rate to be paid next year. Dec. 31 230 Course Project Part 6 - General Ledger - Post the adjusting entries to the General Ledger. Part 7 - Adjusted Trial Balance (LO3-3) - Post the ending balances in each account from the General Ledger to the Adjusted Trial Balance. Debits should equal credits if you have done the prior steps correctly. Part 8- Prepare the end of the year Income Statement (LO3-4). Part 9 - Prepare the end of the year Retained Earnings Statement (LO3-4). Part 10 Prepare the end of the year Balance Sheet (LO3-4). Part 2 General Journal (LO3-2)- Record the external journal entries to the general journal General Journal Account Name Transaction Date Debit Credit Dec 1 2 Dec 1 Dec 1 4 Dec 1 5 Dec 1 6 Dec 3 7 Dec 3 8 Dec 6 9 Dec 10 10 Dec 12 11 Dec 15 Part 2- Continued... Dec 20 12 13 Dec 23 14 Dec 31 Dec 25 16 Dec 31 Dec 21 Dec 31 Dec. 31 Dec. 31 GENERAL LEDGER Part 3-Post External Entries and Ending balances to general ledger Cash Accounts Receivable Equipment Inventory Vehicle Allowance for Uncollectible Accumulated Depreciation Accounts Supplies ATB Notes Receivable ATB ATB Accounts Payable Pre-Paid Rent Deferred Revenue TB Notes Payable ATB ATB Interest Payable TB Utilities Payable Salaries Payable ATB Income Tax Payable ATB ATB ATB Salary Expense Sales Revenue Sales Discount Services Revenue TB Utilities Payable ATB ATB ATB Depreciation Expense Supplies Expense Interest Expense Cost of Goods Sold TB ATB ATB Bad Debt Expense Utility Expense ATB ATB ATB Retained Earnings Rent Expense Common Stock Loss on Sale 0 TB Income Tax Expense Dividends ATB TB Trial Balance (should be your balance in the account after posting the external transactions) ATB Adjusted Trial Balance (should be your balance in the account after posting the adjusting journal transactions) If there was not an adjusting entry for an account, then the TB ending balance for that account would be the amount posted in both the Trial Balance and the Adjusted Trial Balance Sample of posting to account: External journal: Purchased $500 of supplies. Adjusting journal: $300 of supplies left at the end of the year so used up $200 of supplies. $500 in Trial Balance $300 in Adjusted Trial Balance Equipment purchased for $60,000 Darkened cells - no data entry $60,000 in Trial Balance $60,000 in Adjusted Trial Balance Supplies Equipment TB 500 200 TB ATB 300 60,000 Part 4 Trial Balance (LO3-2) - Prepare a trial balance from the information in the general ledger. Some accounts will not have postings until after adjusting entries have been recorded Trial Balance December 31,2019 Account Debit Credit Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Supplies Pre-Paid Rent Note Receivable Equipment Vehicle Accumulated Depreciation Accounts Payable Notes Payable Deferred (Unearned Revenue) Salaries Payable Interest Payable Common Stock Dividends Retained Earnings (Beginning) Service Revenue Sales Revenue Sales Disc Salaries Expense Supplies Expense Cost of Goods Sold Depreciation Expense Loss on Sale Bad Debt Expense Interest Expense Total Part 5- Adjusting journal Entries - (LO3-3) Record the adjusting entries to the general journal Adj-1 Dec. 31 Adj-2 Dec. 31 Adj-3 Dec. 31 Adj-4 Dec. 31 Adj-5 Dec. 31 Adj-6 Dec. 31 Adj-7 Dec. 31 Adj-8 Dec. 31 Adj-9 Dec. 31 Part 6- GENERAL LEDGER Post Adjusting Journal Entries and Ending balances to the general ledger accounts Part 7 -Adjusted Trial Balance (LO3-3) - Post the ending balances from the General Ledger to the Adjusted Trial Balance. Debits should equal credits if you have done the prior steps correctly Adjusted Trial Balance December 31,2019 Debit Credit Account Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Supplies Pre-Paid Rent Note Receivable Equipment Vehicle Accumulated Depreciation Accounts Payable Notes Payable Deferred (Unearned Revenue) Salaries Payable Utilities Payable Interest Payable Income Tax Payable Common Stock Dividends Retained Earnings (Beginning) Service Revenue Sales Revenue Sales Disc Salaries Expense Supplies Expense Cost of Goods Sold Depreciation Expense Rent Expense Utility Expense Bad Debt Expense Income Tax Expense Interest Expense Loss on Sale Total Part 8- Prepare the end of the year Multi-Step Income Statement (LO3-4) Multi-Step Income Statement For the Year Ended December 31, 2019 Revenue: Total Revenue Less Gross Profit Expenses: Salaries Expense Supplies Expense Depreciation Expense Rent Expense Utility Expense Bad Debt Expense Total Operating Expenses Operating Income Income Before Income Taxes Income Tax Expense 21% rate round to nearest whole dollar Net Income Part 9- Prepare the end of the year Statement of Stockholders' Equity (LO3-4) Statement of Stockholders' Equity For the year ended Dec. 31, 2019 Total Stockholder's Common Stock Retained Earnings Equity Beginning Balances $ 0 Issued Stock Net Income Dividends $ Ending Balances $ S Part 10 Prepare the end of year Balance Sheet (LO3-4) Balance Sheet December 31, 2019 Liabilities Assets Current Liabilities Current Assets: S Less Total Current Assets $ Total Current Liabilities $ Long-Term Liabilities Long-Term Assets: 0 Total Liabilities Stockholders' Equity: Less Common Stock Total Long-Term Assets Retained Earnings Total Stockholders' Equity $ Total Liabilities and $ Total Assets Stockholders' Equity