Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the Id is not needed because I already put in all the balances in the balance sheet that are needed I journalized the accounts alrready

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

the Id is not needed because I already put in all the balances in the balance sheet that are needed

image text in transcribed

I journalized the accounts alrready i need help with #2 onwards

Below are the financial statements of Zapparoo, Inc. Zapparoo sells rubber work boots called Zips". In this assignment, you will account for complex transactions and update existing account balances Students are asked to complete the assignment on their own, but may obtain instructional assistance from the instructor. The assignment is meant to help the student get ready for the second exam. Below are the financial statements for the previous month 48.000 Income Statement (previous month) Sales Revenue 60.000 Cost of Goods Sold 12.00 Gross Profit Salaries Expense 9.000 Bad Debt Expense 6,000 Rent Fxpense 7.000 Office Supplies Expense 3.000 Depreciation Expense 8.00) Operating Income Gain on Sale of Equipment 3.00 Interest Expense (5,000) Net Income 33.XX) 15.0XX (2.000) 13.0XX) Statement of Retained Earnings (previous month) Beginning Retained Earnings 40.000 Net Income 13.000 Dividends (3.000) Ending Retained Earnings 50.000 Balance Sheet (previous month) Assets Liabilities Cash 53,000 Accounts Payable Accounts Receivable 31.000 Salaries Payable Allow For Doubtful Acets (3,000) Unearned Revenues Office Supplies 7.000 Long-term Debt Inventory 18.000 Total Liabilities Prepaid Rent 48,000 Equipment 100.000 Equities Accumulated Depreciation (35,000) Common Stock Retained Earnings Total Equities Total Assets 219.000 Total Liab and Equities 9,000 2.000 20,000 27,000 58.000 111.000 50.000 161.000 219,000 Page 2 of 5 Below are the transactions for the current month. You will notice that there is an "X" or "Y" or "Z" in many of the numbers. You MUST substitute the appropriate number from your NSU ID to get the correct answers. Each letter corresponds to the following number of your NSU ID. X = third from last number of NSU ID Number Y = second from last number of NSU ID Number Z last number of NSU ID Number For example, if your NSU ID Number is 1234567: X =S Y = 6 Z7 You must do this substitution correctly or you will not obtain the correct answers. Additional information at the BEGINNING of the month: 1. Inventory consists of 1,000 pairs of Zips", each costing $18. Zipparoo uses the LIFO inventory method. Round all inventory calculations to the nearest dollar. 2. The net method is used for recording purchases. 3. The Equipment of $100,000 was originally purchased 10 years ago. At that time, it was estimated that the equipment would have a useful life of 20 years and a salvage value of $30,000. Zipparoo uses the straight-line depreciation method. 4. Zipparoo uses the Percentage-of-Receivables method of accounting for bad debts. 5. Round all calculations to the nearest dollar. Transactions during the month: Jan. I Paid S2,400 for a one year premium on property and casualty insurance. The policy covers the period January 1, 20X1 to December 31, 20X2 Jan. 1 Sold 7X0 "Zips" to Joey on account for S6X each terms 2/10, net 30. Jan. 2 Zipparoo purchased additional equipment for cash for $27,000. The equipment has an expected life of 10 years and an estimated salvage value of S4.200. Jan. 5 Joey returned 6X pairs of Zips" because of defections. The inventory could not be resold and was disposed of Jan. 8 Purchased 6X0 pairs of "Zips from Bluey on account for $2 each, terms 3/10, net 60. Jan. 9 Office supplies totaling $7.700 were purchased on account. Jan. 9 Joey paid full amount owed. Round calculations to the nearest dollar. Jan. 12 Sold 7X0 pairs of "Zips" to Pete on account for $8X each, terms 2/10, net 30. Jan. 14 Purchased 4ZO pairs of Zips from Kanga on account for SIZ each, terms 2/10, Jan. 17 Paid full amount owed to Bluey from Jan. & purchase. Jan. 18 Paid SIX.000 for workers' salaries. This amount includes amounts owed from the month Jan. 23 Delivered 3Y0 pairs of Zips" to Flash who had purchased them in advance last month, $14.000 Jan. 24 Paid interest on Long-Term Debt. SS.700. Jan. 25 Paid dividends to stockholders, $3.200. Jan. 26 Received cash from customers billed in the previous month, SIX.CO. Jan. 27 Pete paid full amount owed. Jan. 27 Paid full amount owed to Kanga from Jan. 14 purchase. Jan. 28 One of Zapparoo's customers, Rooth, owes $2.YOO but has informed Zipparoo that he will not pay because of bankruptcy. Zippuro writes off Rooth's account as uncollectible. Jan. 30 Paid utilities for January of $475. Page 3 of 5 3/5 REQUIREMENTS: 1. Make copies of the required forms (see attached forms and instructions). Then, using the chart of accounts shown below, set up the general ledger. NOTE: YOU MUST USE THE DOWNLOADED FORMS TO RECEIVE CREDIT FOR THE PROBLEM Zipparoo Chart of Accounts Set up the entire general ledger using these accounts before you start into the project. Keep the accounts in numerical order. 11 Cash 12 Accounts Receivable 13 Allowance for Doubtful Accounts 14 Office Supplies IS Prepaid Rent 16 Inventory 17 Prepaid Insurance 18 Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Deferred Revenues 25 Long-term Debt 31 Common Stock 34 Retained Earnings 35 Dividends 41 Sales Revenue 42 Sales Returns and Allowances 43 Sales Discounts 51 Insurance Expense 52 Uncollectible Account Expense 53 Rent Expense 54 Cost of Goods Sold 55 Office Supplies Expense 56 Interest Expense 57 Depreciation Expense 58 Utilities Expense 59 Salaries Expense 60 Purchase Discount Lost Taken 2. Journalize each of the above transactions. EXPLANATIONS ARE NOT REQUIRED 3. Post the entries to the ledger. 4. Prepare a trial balance as of January 31, 20X1. USE THE FORMAT SHOWN ON PAGE 84 OF THE CLASS TEXT. S. Journalize and post the adjusting entries using the following information: a. Zapparco estimates that 10% of accounts owed to the company would not be collected. Round to the dollar. b. Office Supplies at the end of the year totaled $3.000. c. Must take depreciation for equipment use this month for both old and new equipment. Round Total depreciation to the dollar d. Salaries of $2.400 for January will not be paid until February 5 of next month. e. In a prior month, 12 months rent had been purchased in advance for 596,000. Page 4 of 5 Must record insurance use this month. A physical count of inventory indicates there is $2.500 of inventory on hand 6. Prepare an adjusted trial balance. USE THE FORMAT SHOWN ON PAGE 132 OF THE CLASS TEXT 7. Using the adjusted trial balance, prepare an income statement, a statement of retained earnings and a balance sheet. USE THE FORMATS STARTING ON PAGE 134 OF THE CLASS TEXT. You will have to include the Cost of Goods Sold requirements of the Income Statement. Note: For our problem, there are no income taxes. 8. Journalize and post the closing entries. 9. Prepare a post-closing trial balance. USE THE FORMAT SHOWN ON PAGE 142 OF THE CLASS TEXT. 10. After you have completed the problem, arrange the pages of your solution in the following order (DO NOT turn in the problem requirements packet or any pages other than those listed below!): h. Project Title Page i. Journals j. Ledger k. Trial Balance 1. Adjusted Trial Balance m. Post-closing Trial Balance 1. Income Statement o. Statement of Retained Earings p Balance Sheet 11. PRINT your name in the lower right corner of each page. Scan and upload the file to Blackboard using an actual scanner, no pictures with your phone! The project should be submitted as one document, do not submit one page at a time if at all possible. STAPLE the pages together in the upper left-hand corner and maintain for your use. IMPORTANT NOTES 1. The instructor will not accept the problem if the pages are not arranged as described in paragraph 10, above. 3. Do not type the answers or use a computer. 4. Do not write your answer in ink. Use a #2 pencil to complete the problem, 5. Form, style, and neatness will be graded. 6. THE PROBLEM MUST BE COMPLETED AND SUBMITTED ON THE DATE ANNOUNCED BY THE INSTRUCTOR. NO TIME EXTENSION WILL BE GRANTED. CHECK FIGURES There is an excel spreadsheet on Blackboard where you can enter the LAST 3 digits of your NSU Student ID to obtain your personal check figures for the project Page 5 of 5 AIZS- P Lipd. - VS - Is NY July UE . M 1950 w but wwwwww JWWW San COS 141,200 sauc Westwy Valaistuki Bu Geyis LOL Walaud de Jule WW2 vw V . W. Sto Saviz Jan 29th Dividend 370 Jan 26th All,000 Jan 27th |$65 360 Jan zon cash $16,000 acounts receivable cash |$65,360 accounts receivable uncollectable autrexpen $2,000 accounts receivabe utilities expense 4475 cash $2000 Jan 30 $475 nh 1000 Jan 1st $2,400 $50,160 Jan 1st $50, 160 $20,000 Jan and $20,000 |$4,3516 Jan sth $4,354 Jan 8th $17, 160 $17, 166 $7,000 Jangth | Prepaid insurance CASH Accounts Receivable I sales revenue Equipment - CASH sales returns accounts receivabal Inventory accounts payable office supplies accounts payable vales discounts crus cash amounts receivable Inventory accounts payable Accounts Payable cash inventory $7000 Jan 9th $916 $14,888 $ 45,804 Janly $7,990 4990 Jan 17th $17,160 $16,645 $515 Na Below are the financial statements of Zapparoo, Inc. Zapparoo sells rubber work boots called Zips". In this assignment, you will account for complex transactions and update existing account balances Students are asked to complete the assignment on their own, but may obtain instructional assistance from the instructor. The assignment is meant to help the student get ready for the second exam. Below are the financial statements for the previous month 48.000 Income Statement (previous month) Sales Revenue 60.000 Cost of Goods Sold 12.00 Gross Profit Salaries Expense 9.000 Bad Debt Expense 6,000 Rent Fxpense 7.000 Office Supplies Expense 3.000 Depreciation Expense 8.00) Operating Income Gain on Sale of Equipment 3.00 Interest Expense (5,000) Net Income 33.XX) 15.0XX (2.000) 13.0XX) Statement of Retained Earnings (previous month) Beginning Retained Earnings 40.000 Net Income 13.000 Dividends (3.000) Ending Retained Earnings 50.000 Balance Sheet (previous month) Assets Liabilities Cash 53,000 Accounts Payable Accounts Receivable 31.000 Salaries Payable Allow For Doubtful Acets (3,000) Unearned Revenues Office Supplies 7.000 Long-term Debt Inventory 18.000 Total Liabilities Prepaid Rent 48,000 Equipment 100.000 Equities Accumulated Depreciation (35,000) Common Stock Retained Earnings Total Equities Total Assets 219.000 Total Liab and Equities 9,000 2.000 20,000 27,000 58.000 111.000 50.000 161.000 219,000 Page 2 of 5 Below are the transactions for the current month. You will notice that there is an "X" or "Y" or "Z" in many of the numbers. You MUST substitute the appropriate number from your NSU ID to get the correct answers. Each letter corresponds to the following number of your NSU ID. X = third from last number of NSU ID Number Y = second from last number of NSU ID Number Z last number of NSU ID Number For example, if your NSU ID Number is 1234567: X =S Y = 6 Z7 You must do this substitution correctly or you will not obtain the correct answers. Additional information at the BEGINNING of the month: 1. Inventory consists of 1,000 pairs of Zips", each costing $18. Zipparoo uses the LIFO inventory method. Round all inventory calculations to the nearest dollar. 2. The net method is used for recording purchases. 3. The Equipment of $100,000 was originally purchased 10 years ago. At that time, it was estimated that the equipment would have a useful life of 20 years and a salvage value of $30,000. Zipparoo uses the straight-line depreciation method. 4. Zipparoo uses the Percentage-of-Receivables method of accounting for bad debts. 5. Round all calculations to the nearest dollar. Transactions during the month: Jan. I Paid S2,400 for a one year premium on property and casualty insurance. The policy covers the period January 1, 20X1 to December 31, 20X2 Jan. 1 Sold 7X0 "Zips" to Joey on account for S6X each terms 2/10, net 30. Jan. 2 Zipparoo purchased additional equipment for cash for $27,000. The equipment has an expected life of 10 years and an estimated salvage value of S4.200. Jan. 5 Joey returned 6X pairs of Zips" because of defections. The inventory could not be resold and was disposed of Jan. 8 Purchased 6X0 pairs of "Zips from Bluey on account for $2 each, terms 3/10, net 60. Jan. 9 Office supplies totaling $7.700 were purchased on account. Jan. 9 Joey paid full amount owed. Round calculations to the nearest dollar. Jan. 12 Sold 7X0 pairs of "Zips" to Pete on account for $8X each, terms 2/10, net 30. Jan. 14 Purchased 4ZO pairs of Zips from Kanga on account for SIZ each, terms 2/10, Jan. 17 Paid full amount owed to Bluey from Jan. & purchase. Jan. 18 Paid SIX.000 for workers' salaries. This amount includes amounts owed from the month Jan. 23 Delivered 3Y0 pairs of Zips" to Flash who had purchased them in advance last month, $14.000 Jan. 24 Paid interest on Long-Term Debt. SS.700. Jan. 25 Paid dividends to stockholders, $3.200. Jan. 26 Received cash from customers billed in the previous month, SIX.CO. Jan. 27 Pete paid full amount owed. Jan. 27 Paid full amount owed to Kanga from Jan. 14 purchase. Jan. 28 One of Zapparoo's customers, Rooth, owes $2.YOO but has informed Zipparoo that he will not pay because of bankruptcy. Zippuro writes off Rooth's account as uncollectible. Jan. 30 Paid utilities for January of $475. Page 3 of 5 3/5 REQUIREMENTS: 1. Make copies of the required forms (see attached forms and instructions). Then, using the chart of accounts shown below, set up the general ledger. NOTE: YOU MUST USE THE DOWNLOADED FORMS TO RECEIVE CREDIT FOR THE PROBLEM Zipparoo Chart of Accounts Set up the entire general ledger using these accounts before you start into the project. Keep the accounts in numerical order. 11 Cash 12 Accounts Receivable 13 Allowance for Doubtful Accounts 14 Office Supplies IS Prepaid Rent 16 Inventory 17 Prepaid Insurance 18 Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Deferred Revenues 25 Long-term Debt 31 Common Stock 34 Retained Earnings 35 Dividends 41 Sales Revenue 42 Sales Returns and Allowances 43 Sales Discounts 51 Insurance Expense 52 Uncollectible Account Expense 53 Rent Expense 54 Cost of Goods Sold 55 Office Supplies Expense 56 Interest Expense 57 Depreciation Expense 58 Utilities Expense 59 Salaries Expense 60 Purchase Discount Lost Taken 2. Journalize each of the above transactions. EXPLANATIONS ARE NOT REQUIRED 3. Post the entries to the ledger. 4. Prepare a trial balance as of January 31, 20X1. USE THE FORMAT SHOWN ON PAGE 84 OF THE CLASS TEXT. S. Journalize and post the adjusting entries using the following information: a. Zapparco estimates that 10% of accounts owed to the company would not be collected. Round to the dollar. b. Office Supplies at the end of the year totaled $3.000. c. Must take depreciation for equipment use this month for both old and new equipment. Round Total depreciation to the dollar d. Salaries of $2.400 for January will not be paid until February 5 of next month. e. In a prior month, 12 months rent had been purchased in advance for 596,000. Page 4 of 5 Must record insurance use this month. A physical count of inventory indicates there is $2.500 of inventory on hand 6. Prepare an adjusted trial balance. USE THE FORMAT SHOWN ON PAGE 132 OF THE CLASS TEXT 7. Using the adjusted trial balance, prepare an income statement, a statement of retained earnings and a balance sheet. USE THE FORMATS STARTING ON PAGE 134 OF THE CLASS TEXT. You will have to include the Cost of Goods Sold requirements of the Income Statement. Note: For our problem, there are no income taxes. 8. Journalize and post the closing entries. 9. Prepare a post-closing trial balance. USE THE FORMAT SHOWN ON PAGE 142 OF THE CLASS TEXT. 10. After you have completed the problem, arrange the pages of your solution in the following order (DO NOT turn in the problem requirements packet or any pages other than those listed below!): h. Project Title Page i. Journals j. Ledger k. Trial Balance 1. Adjusted Trial Balance m. Post-closing Trial Balance 1. Income Statement o. Statement of Retained Earings p Balance Sheet 11. PRINT your name in the lower right corner of each page. Scan and upload the file to Blackboard using an actual scanner, no pictures with your phone! The project should be submitted as one document, do not submit one page at a time if at all possible. STAPLE the pages together in the upper left-hand corner and maintain for your use. IMPORTANT NOTES 1. The instructor will not accept the problem if the pages are not arranged as described in paragraph 10, above. 3. Do not type the answers or use a computer. 4. Do not write your answer in ink. Use a #2 pencil to complete the problem, 5. Form, style, and neatness will be graded. 6. THE PROBLEM MUST BE COMPLETED AND SUBMITTED ON THE DATE ANNOUNCED BY THE INSTRUCTOR. NO TIME EXTENSION WILL BE GRANTED. CHECK FIGURES There is an excel spreadsheet on Blackboard where you can enter the LAST 3 digits of your NSU Student ID to obtain your personal check figures for the project Page 5 of 5 AIZS- P Lipd. - VS - Is NY July UE . M 1950 w but wwwwww JWWW San COS 141,200 sauc Westwy Valaistuki Bu Geyis LOL Walaud de Jule WW2 vw V . W. Sto Saviz Jan 29th Dividend 370 Jan 26th All,000 Jan 27th |$65 360 Jan zon cash $16,000 acounts receivable cash |$65,360 accounts receivable uncollectable autrexpen $2,000 accounts receivabe utilities expense 4475 cash $2000 Jan 30 $475 nh 1000 Jan 1st $2,400 $50,160 Jan 1st $50, 160 $20,000 Jan and $20,000 |$4,3516 Jan sth $4,354 Jan 8th $17, 160 $17, 166 $7,000 Jangth | Prepaid insurance CASH Accounts Receivable I sales revenue Equipment - CASH sales returns accounts receivabal Inventory accounts payable office supplies accounts payable vales discounts crus cash amounts receivable Inventory accounts payable Accounts Payable cash inventory $7000 Jan 9th $916 $14,888 $ 45,804 Janly $7,990 4990 Jan 17th $17,160 $16,645 $515 Na

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

Financial Accounting And Reporting

Authors: John McKeith, Bill Collins

2nd Edition

0077138368, 978-0077138363

More Books

Students also viewed these Accounting questions