Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

STUDENT ROLE: You are a recent accounting graduate and have just been hired by Johnson Accounting Firm as an entry-level accountant. Johnson Accounting is a

image text in transcribed
STUDENT ROLE: You are a recent accounting graduate and have just been hired by Johnson Accounting Firm as an entry-level accountant. Johnson Accounting is a publie accounting fimm that provides bookkeeping, accounting, payroll, wadit, tax and consulting services to local residents and businesses. Today you have been assigned your first client - Daphne Design, Inc CLIENT PROFILE: Daphne Design, Inc. is a local retail store that sells home furnishings and interior design consulting services. The business sells a wide range of products, including furniture, art, and home decor, Daphne Design, Inc. is a privately held corporation and has one shareholder-Duphine Smith. The company began operations on March 1. 2018, and Ms. Smith has been completing all bookkeeping, accounting and payroll services herself. Daphne first met with your supervisor on September 25, 2018, to inquire about accounting services. As her first business tax year was coming to a close she felt it was important to meet with an accountant. She was not exactly sure what services Johnson Accounting Firm could offer, or what help she needs but your supervisor conducted a client interview and was able to provide some advice Johnson Accounting has recommended monthly compilation services (aning accrul accounting), payroll and sales tax consultation, and corporate and individual tas return preparation ASSIGNMENT: You have been assigned the task of amisting Dephne Deng's in completing appropriate financial statements for the 2018 year. Remember that Duphase was performing her own accounting work through the end of September . Your first task is to correct Me Smith's trial balance as of December 31, 2018 Below is the trial balance Daphne's Design submitted: Account Debit Credit Cash 62.000 Accounts Receivable 8,350 Inventory 10,320 Prepaid Advertising 825 Supplies 615 Equipment 5,000 Accumulated Depreciation 287 Salaries Payable 2.050 Accounts Payable 1.000 Sales Revenue 42.835 Cost of Goods Sold 22.000 Rent Expense 7,000 Common Stock 30,000 Paid in Capital in Excess of Par 74,000 Advertising Expense 1.925 Salaries Expense 28,700 Utilities Expense 1,750 Depreciation Expense 287 Dividends 1,400 Total 67,032 233,312 Once you have corrected the Trial Balance, you need to journalize the closing entries for Daphne Designs and then prepare the Income Statement, Statement of Retained Earnings and the Balance Sheet. You must also calculate the Gross Profit %, Return on Sales, the Current Ratio and the Debt Ratio STUDENT ROLE: You are a recent accounting graduate and have just been hired by Johnson Accounting Firm as an entry-level accountant. Johnson Accounting is a publie accounting fimm that provides bookkeeping, accounting, payroll, wadit, tax and consulting services to local residents and businesses. Today you have been assigned your first client - Daphne Design, Inc CLIENT PROFILE: Daphne Design, Inc. is a local retail store that sells home furnishings and interior design consulting services. The business sells a wide range of products, including furniture, art, and home decor, Daphne Design, Inc. is a privately held corporation and has one shareholder-Duphine Smith. The company began operations on March 1. 2018, and Ms. Smith has been completing all bookkeeping, accounting and payroll services herself. Daphne first met with your supervisor on September 25, 2018, to inquire about accounting services. As her first business tax year was coming to a close she felt it was important to meet with an accountant. She was not exactly sure what services Johnson Accounting Firm could offer, or what help she needs but your supervisor conducted a client interview and was able to provide some advice Johnson Accounting has recommended monthly compilation services (aning accrul accounting), payroll and sales tax consultation, and corporate and individual tas return preparation ASSIGNMENT: You have been assigned the task of amisting Dephne Deng's in completing appropriate financial statements for the 2018 year. Remember that Duphase was performing her own accounting work through the end of September . Your first task is to correct Me Smith's trial balance as of December 31, 2018 Below is the trial balance Daphne's Design submitted: Account Debit Credit Cash 62.000 Accounts Receivable 8,350 Inventory 10,320 Prepaid Advertising 825 Supplies 615 Equipment 5,000 Accumulated Depreciation 287 Salaries Payable 2.050 Accounts Payable 1.000 Sales Revenue 42.835 Cost of Goods Sold 22.000 Rent Expense 7,000 Common Stock 30,000 Paid in Capital in Excess of Par 74,000 Advertising Expense 1.925 Salaries Expense 28,700 Utilities Expense 1,750 Depreciation Expense 287 Dividends 1,400 Total 67,032 233,312 Once you have corrected the Trial Balance, you need to journalize the closing entries for Daphne Designs and then prepare the Income Statement, Statement of Retained Earnings and the Balance Sheet. You must also calculate the Gross Profit %, Return on Sales, the Current Ratio and the Debt Ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Karla M. Johnstone, Audrey A. Gramling, Larry E. Rittenberg

8th International Edition

0538477660, 978-0538477666

More Books

Students also viewed these Accounting questions

Question

What was TALF, and why did the Fed create it?

Answered: 1 week ago

Question

7-16 Compare Web 2.0 and Web 3.0.

Answered: 1 week ago