This is a continuation of Part 1, FMoore Consulting Inc. An additional 11 months have passed since Part 1 (we are now at October 31, 2016 the companys yearend). The friends have expanded the shop to include sales of tablets as well as the consulting services activities. The new company name is FMoore Consulting and Sales Inc.All transactions for the company through the end of the year have been posted to the accounts EXCEPT FOR those relating to the purchasing and sales of tablets in October. You will be recording and posting those entries.Additionally, all monthly adjustments have been made EXCEPT for those related to accounting for bad debts and any inventory and cost of goods sold issues.You will be adding that information.You will then be making the required closing entries and preparing the yearend financial statements for the company. The following is a suggested series of steps for completing the project:

1. Complete the Perpetual Inventory card worksheets to reflect the October purchases and sales under the 3 different Inventory costing methods.

2. Complete the October Journal Entries to reflect the purchases and sales transactions (company uses the perpetual method) under the FIFO costing method and post.

3. Post the October entries to the worksheet columns for the October entries and complete the Trial Balance columns of the Worksheet.

4. Review the aging of accounts receivable included with the project and the current balance in the Allowance Account (see worksheet) to determine the adjustment needed for Bad Debts. Any journal entry necessary should be included on the adjusting journal entries sheet.

5. Prepare any necessary adjusting entries to reflect the Inventory count at year end. These should be included on the adjusting entries sheet.

6. Post the adjusting entries to the worksheet and complete the Adjusted Trial Balance.

7. Prepare the necessary closing entries on the closing entries sheet.

8. Prepare the 3 financial statements for the year ended October 31, 2016 (multi step income statement, classified balance sheet, and statement of retained earnings).Also you must include appropriate dollar signs and appropriate underlines and correct formatting for the statements to receive full credit.

October 2016 transactions related to buying and selling tablet inventory:

1-Oct Sold 45 tablets at $175 each on credit

3-Oct Purchased 50 tablets at a cost of $90 per tablet on credit

7-Oct Paid for one half of the tablets purchased on October 3

10-Oct Sold 55 tablets at $180 each on credit

18-Oct Received one-half payment from the customer of October 1

20-Oct Purchased 60 tablets at a cost of $100 per tablet on credit

22-Oct Received one-half payment from the customer of October 8

24-Oct Sold 55 tablets at $200 each on credit

28-Oct Purchased 35 tablets at a cost of $110 per tablet on credit

The physical count of tablet inventory on hand at October 31, 2016 shows 40 tablets at a FIFO cost of $4,350.

ACC 3010 You have been hired as an accountant for FMoore Consulting Inc. This business was created when several friends decided they wanted to earn some money to help pay for some traveling they wanted to be able to do. The business was created on November 1, 2015. The company will have a fiscal year end of October 31st. The initial formation transactions and early purchases for FMoore Consulting Inc. resulted in the balances that are included in the first 2 columns of the Worksheet. (see the worksheet tab) During November, the first month of operations, the following transactions occurred: Borrowed 98,000 from the bank for operating cash on November 1st. The note has a 3% interest rate (simple interest) and is to be paid back in 3 years Paid $10,800 for 12 months rent on office space on November 2nd Purchased office furniture for $14,250 on November 2nd. Signed a contract with the TBA Inc. on November 3rd for work to be done over the next 12 months Purchased $12,700 of additional office supplies on account on November 6th. Received $85,200 from the TBA Inc. on November 8th for the work to be performed over the next 12 months. Paid $2,750 for maintenance on the equipment on November 10th. Paid $11,500 to suppliers on November 12th for purchases previously made on account. Paid $2,170 for travel expenses for information gathering trips related to the TBA Inc. contract on November 18th. Performed services for various customers for $18,750 cash and another $43,750 on account. Record on November 20th. Paid salaries to employees totaling $10,500 for services rendered on November 25th. Paid utility bill (water) totaling $1,570 on November 26th. Collected $15,500 on November 28th as payment for amounts previously billed. Dividends of $2,000 were declared and paid on November 30th. At the end of November, the following additional information is available to help determine what adjustments are needed: a) The Prepaid insurance account (see Worksheet tab for beginning balances) represents a 1 year policy purchased November 1, 2015. b) One month of interest has accrued on the note payable for the bank loan. c) Supplies on hand are $9,500. d) Received the bill for utility services (electricity) that the firm used during November in the amount of $3,790. The company will pay the bill in December. e) One month of the services for the TBA Inc. has been performed (see November 8th activity above). f) Depreciation expense for the computer equipment is $270 and for the office furniture is $210 g) Additional work for customers of $14,270 has been performed during the last week of November but not yet billed h) Salaries of $10,500 are paid every Friday (for a 5 day work week). November 30, 2015 was a Monday. i) One month of the prepaid rent has been used up SUGGESTED STEPS FOR COMPLETION: Prepare journal entries to record the November transactions given. Post the journal entries to ledger accounts using T-accounts to represent ledger accounts. Don't forget the opening balances from the information given on the Worksheet. There is a tab to use for T Accounts if you want Prepare an unadjusted trial balance as of November 30, 2015. This will be part of the Worksheet you prepare. There is a tab in this file that you will use for this. Prepare adjusting entries for the month of November given the information provided. Post the adjusting entries to the T-accounts and to the Adjusting entries columns on the worksheet Prepare an adjusted trial balance as of November 30, 2015. This will be part of the Worksheet you prepare. There is a tab in this file that you will use for this. Prepare financial statements for the month of November 30, 2015. (Income Statement, Statement of Retained Earnings, Classified Balance Sheet ). Formatting is important and will be graded so be sure you use dollar signs and underlines as appropriate. Also be sure you have headings and proper column usage for all statements. There is a tab for these statements. Heading are PARTIALLY completed for the 3 statements. Prepare and post closing entries for the end of the period and to the T Accounts Prepare a post closing trial balance as of November 30, 2015. There is space for this included on the statements tab. JOURNAL ENTRIES - FMoore Consulting Inc DATE ACCOUNT 1-Nov Cash REF DEBIT CREDIT 98,000 Long Term Notes Payable 2-Nov Prepaid Rent 98,000 10,800 Cash 2-Nov Office Furniture 10,800 14,250 Cash 14,250 No Entry 6-Nov Office Supplies 12,700 Accounts Payable 8-Nov Cash 12,700 85,200 Unearned Revenue 10-Nov Maintenance Expense 85,200 2,750 Cash 12-Nov Accounts Payable 2,750 11,500 Cash 18-Nov Travel expenses 11,500 2,170 Cash 20-Nov Cash 2,170 18,750 Accounts Receivable 43,750 Service Revenue 25-Nov Wage Expense 62,500 10,500 Cash 26-Nov Utility expense -Water 10,500 1,570 Cash 28-Nov Cash 1,570 15,500 Accounts Receivable 30-Nov Dividend Cash 15,500 2,000 2,000 ADJUSTING JOURNAL ENTRIES - FMoore Consulting Inc DATE 30-Nov ACCOUNT Insurance expense REF DEBIT 700 Prepaid Insurance 30-Nov Interest Expense 700 245 Interest Payable 30-Nov Supplies Expense 245 14,700 Supplies 30-Nov Utility Expense Electric 14,700 3,790 Utilities Payable - electric 30-Nov Unearned Revenue 3,790 7,100 Service Revenue 30-Nov CREDIT 7,100 Depreciation Expense, Comp Equip 270 Depreciation Expense, Office Furniture 210 Accumulated Depreciation, Comp Equip Accumulated Depreciation, Off Furn 30-Nov 270 210 Accounts Receivable 14,270 Service Revenue 30-Nov Wage Expense 14,270 2,100 Wages Payable 30-Nov Rent Expense Prepaid Rent 2,100 900 900 CLOSING JOURNAL ENTRIES -FMoore Consulting Inc DATE 30-Nov ACCOUNT Service Revenue REF DEBIT 83,870 Income Summary Income Summary CREDIT 83,870 39,905 Wage Expense 12,600 Insurance Expense 700 Rent Expense 900 Supplies Expense 14,700 Utilities Expense - electric 3,790 Maintenance Expense 2,750 Travel Expense 2,170 Utilities Expense - water 1,570 Interest Expense 245 Depreciation Expense, Comp Equip 270 Depreciation Expense, Office Furniture 210 30-Nov Net Income 43,965 Retained Earnings 30-Nov Retained Earnings Dividend 43,965 2,000 2,000 BEGINNING ACCOUNT Cash NUMBERS November ENTRIES DEBIT CREDIT DEBIT CREDIT 105,800 Prepaid Insurance DEBIT 55540 15500 DEBIT 28,250 ADJUSTED TRIAL BALANCE CREDIT 267,710 43750 11,500 ADJUSTMENTS CREDIT 217450 Accounts Receivable Supplies UNADJUSTED TRIAL BALANCE 12700 DEBIT SHEET INCOME STATEMENT DEBIT CREDIT BALANCE CREDIT DEBIT CREDIT 267,710 42,520 14270 267,710 42,520 24,200 Prepaid Rent 9,500 700 7,700 7,700 10,800 10800 9,500 8,400 8,400 14700 900 9,900 9,900 Land 10,000 10,000 10,000 10,000 Computer Equipment 25,800 25,800 25,800 25,530 Accumulated Depreciation, Comp Equip - Office Furniture 14250 270 14,250 Accumulated Depreciation, Off Furn 14,250 - Accounts Payable 11,500 11500 270 210 210 12,700 12700 14,040 12,700 12,700 Utilities Payable - electric - 3790 3790 3790 Wages Payable - 2100 2100 2100 Interest Payable - 245 245 245 Unearned Revenue 85200 85,200 Long-term Notes Payable 98000 Common Stock 78,100 98,000 98,000 150,000 Retained Earnings 78,100 98,000 150,000 7100 150,000 150,000 - Dividends 2000 Service Revenue 2000 62500 Wage Expense - 10500 41965 2000 62500 10500 21370 83870 83870 2100 12600 12600 Insurance Expense 700 700 700 Rent Expense 900 900 900 14700 14700 14700 3790 3790 3790 Supplies Expense Utilities Expense - electric Maintenance Expense 2750 2750 2750 2750 Travel Expense 2170 2170 2170 2170 Utilities Expense - water 1570 1570 1570 1570 Interest Expense 245 245 245 Depreciation Expense, Comp Equip 270 270 270 Depreciation Expense, Office Furniture 210 210 210 43,965 Net Income 161,500 161,500 329,440 329,440 408,400 408,400 44,285 44,285 429,285 429,285 386,900 386,900 83,870 83,870 FMoore Consulting Inc Income Statement FMoore Consulting Inc Balance Sheet Assets Service Revenue 83,870 Less expenses Wage Expense Insurance Expense Rent Expense Supplies Expense Utilities Expense - electric Maintenance Expense Travel Expense Utilities Expense - water Interest Expense Depreciation Expense, Comp Equip Depreciation Expense, Office Furniture Total Expenses 12,600 700 900 14,700 3,790 2,750 2,170 1,570 245 270 210 39,905 43,965 Net Income FMoore Consulting Inc Statement of Retained Earnings Opening balance of Retained Earnings Add Net Income Less dividend Ending Balance of Retained Earnings 0 43,965 -2000 41,965 41,965 Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Total Current Assets Land Computer Equipment Accumulated Depreciation, Comp Equip Office Furniture Accumulated Depreciation, Off Furn Total Assets Liabilities & shareholder's equity Accounts Payable Utilities Payable - electric Wages Payable Interest Payable Unearned Revenue Total Current Liabilities Long-term Notes Payable Total Liabilities Common Stock Retained Earnings Total Liabilities & Shareholder's Equity FMoore Consulting Inc Post-Closing Trial Balance 267710 42520 9500 7700 9900 337330 10000 25800 -270 14250 -210 49570 386900 12700 3790 2100 245 78100 96935 98000 194935 150000 41965 191965 386900 Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Land Computer Equipment Accumulated Depreciation, Comp Equip Office Furniture Accumulated Depreciation, Off Furn Accounts Payable Utilities Payable - electric Wages Payable Interest Payable Unearned Revenue Long-term Notes Payable Common Stock Retained Earnings Total Debit 267710 42520 9500 7700 9900 Credit 10000 25800 270 14250 387380 210 12700 3790 2100 245 78100 98000 150000 41965 387380 Cash A/C 105800 10800 98000 14250 85200 2750 18750 11500 15500 2170 10500 1570 2000 Accounts receivable A/C 43750 15500 14270 42520 Supplies A/C 11500 14700 12700 9500 Prepaid Insurance A/C 8400 700 7700 Prepaid Rent A/C 10800 900 9900 Land A/C 10000 10000 267710 Computer equipment A/C 25800 Acc. Depreciation-Comp. EquipOffice Furniture 270 14250 Accumulated Depreciation, Accounts Payable 210 11500 Utilities Payable - e 11500 12700 3790 3790 25800 270 Wages Payable Interest Payable 2100 245 2100 14250 Unearned Revenue 245 Dividends Service Revenue 210 7100 Long-term Notes Payable 12700 Common Stock 85200 98000 150000 78100 98000 Retained Earnings 150000 Wage Expense Insurance Expense Rent Expense 2000 43965 41965 Supplies Expense 2000 62500 7100 14270 10500 2100 700 900 14700 2000 76770 12600 700 900 14700 Utilities Expense - electric Maintenance Expense Travel Expense Utilities Expense - water Interest Expense Depreciation Expen 3790 2750 2170 1570 245 270 3790 2750 2170 1570 245 270 Depreciation Expense, Office Furniture 210 210 electric s nse, Comp Equip ACC 3010 This is a continuation of Part 1, FMoore Consulting Inc. An additional 11 months have passed since Part 1 (we are now at October 31, 2016 the company's yearend). The friends have expanded the shop to include sales of tablets as well as the consulting services activities. The new company name is FMoore Consulting and Sales Inc. All transactions for the company through the end of the year have been posted to the accounts EXCEPT FOR those relating to the purchasing and sales of tablets in October. You will be recording and posting those entries. Additionally, all monthly adjustments have been made EXCEPT for those related to accounting for bad debts and any inventory and cost of goods sold issues. You will be adding that information. You will then be making the required closing entries and preparing the yearend financial statements for the company. The following is a suggested series of steps for completing the project: 1. Complete the Perpetual Inventory card worksheets to reflect the October purchases and sales under the 3 different Inventory costing methods. 2. Complete the October Journal Entries to reflect the purchases and sales transactions (company uses the perpetual method) under the FIFO costing method and post. 3. Post the October entries to the worksheet columns for the October entries and complete the Trial Balance columns of the Worksheet. 4. Review the aging of accounts receivable included with the project and the current balance in the Allowance Account (see worksheet) to determine the adjustment needed for Bad Debts. Any journal entry necessary should be included on the adjusting journal entries sheet. 5. Prepare any necessary adjusting entries to reflect the Inventory count at year end. These should be included on the adjusting entries sheet. 6. Post the adjusting entries to the worksheet and complete the Adjusted Trial Balance. 7. Prepare the necessary closing entries on the closing entries sheet. 8. Prepare the 3 financial statements for the year ended October 31, 2016 (multi step income statement, classified balance sheet, and statement of retained earnings). Also you must include appropriate dollar signs and appropriate underlines and correct formatting for the statements to receive full credit. Inventory Information Inventory on hand at the beginning of October: Units Cost / Total Cost unit Purchase # 1 25 70 $1,750 Purchase # 2 30 80 2,400 55 $4,150 October 2016 transactions related to buying and selling tablet inventory 1-Oct Sold 45 tablets at $175 each on credit 3-Oct Purchased 50 tablets at a cost of $90 per tablet on credit 7-Oct Paid for one half of the tablets purchased on October 3 10-Oct Sold 55 tablets at $180 each on credit 18-Oct Received one-half payment from the customer of October 1 20-Oct Purchased 60 tablets at a cost of $100 per tablet on credit 22-Oct Received one-half payment from the customer of October 8 24-Oct Sold 55 tablets at $200 each on credit 28-Oct Purchased 35 tablets at a cost of $110 per tablet on credit The physical count of tablet inventory on hand at October 31, 2016 shows 40 tablets at a FIFO cost of $4,350. Beginning Inventory Units 25 30 55 Cost / unit 70 80 Cost 1,750 2,400 4,150 LIFO Purchases Unit Total Date Quantity Cost Cost Cost of Goods Sold Unit Total Quantity Cost Cost Inventory on Hand Unit Total Quantity Cost Cost FIFO Purchases Unit Total Date Quantity Cost Cost Cost of Goods Sold Unit Total Quantity Cost Cost Inventory on Hand Unit Total Quantity Cost Cost Weighted Avg Purchases Date Quantity Unit Cost Cost of Goods Sold Total Cost Quantity Unit Cost Total Cost Inventory on Hand Quantity Unit Cost Total Cost October Journal Entries Adjusting Journal Entries Closing Entries FMoore Consulting and Sales Inc PARTIALLY ADJUSTED TRIAL BALANCE October 31 2015 Part Adj T/B DR CR Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Inventory Prepaid Insurance Land Building Accumulated Depr - Building Computer equipment Accumulated Depr - Comp Equip Office Furniture Accumulated Depr - Office Furniture Accounts Payable $190,750 146,800 $4,895 32,600 4,150 17,200 30,000 110,000 5,670 36,750 1,750 30,900 890 14,560 Interest Payable Utilities Payable Wages Payable Long term Note Payable 3,100 9,954 47,500 90,000 Mortgage Payable Common Stock Retained Earnings Dividends Service Revenue Tablet Sales Revenue Cost of Goods Sold Bad Debt Expense Depreciation Expense - Building Depreciation Expense - Computer Equip Depreciation Expense - Office Furn Interest Expense Insurance Expense Supplies expense Utilities Expense Wage Expense 80,000 200,000 75,661 3,000 365,250 272,400 161,800 970 240 170 3300 36,950 62,750 65,800 237,500 Subtotals Net Income TOTALS ### ### October Jes DR CR Trial Balance DR CR Adj Jes DR Adj T/B CR DR CR Income Stmt DR CR Stmt of Ret Earn DR CR Balance Sheet DR CR Total Accounts Receivable Estimated Bad Debt 0-30 $ 105,950 % Uncollectible Number of Days Outstanding 31-60 61-90 91-120 $ 31,260 $ 15,850 $ 7,250 over 120 $ 6,378 0.02 $ 6,929 0.07 0.08 0.09 0.11 2,119 2,188 1,268 653 702 FMoore Consulting and Sales Inc Multi step Income statement FMoore Consulting and Sales Inc Statement of Retained Earnings FMoore Consulting and Sales Inc Classified balance sheet