Transaction Description Received $1,500 cash in exchange for common stock Purchased Marvin Gardens for $280 cash Purchased Park Place for $350. This purchase was done 50% in cash and 50% on account/credit Purchased North Carolina Avenue for $300 cash Paid back the amount owed from the Passed Go and Collected $200 Received $35 rent pa Paid $18 rent Purchased St. Charles Place for $140 on account/credit and Passed Go (collected $200 Mortgaged St. Charles Place and received $100 from the bank as well as paid a $600 rent payment for Connecticut Avenue Received $100 cash due to Holiday Fund Maturing. Your Company has classified this as miscellaneous revenue Received $2,000 cash in exchange for common stock and spent $400 purchasing Boardwalk Passed Go (collected $200) and Paid $1,000 on account/credit for houses on Boardwalk and Park Place Paid a $200 Luxury Tax and paid $100 in repairs to your house on Park Place Sold North Carolina Avenue for $350 on account/credit (hint - read instruction/activity rules on outright sale to another pla You have decided to exchanged Marvin Gardens (cost you $280) for Boss Moss Inc.'s New York Avenue (cost to was Boss Moss $200). (hin- read instruction/activity rules on exchanges with another pla Received $50 rent pa Collected the amount owed to you from transaction #15 hase on account in transaction #3 t for Park Place t for Indiana Avenue, which is owned by Boss Moss Inc. 12 14 15 t for New York Avenue and Passed Go (Collected $200 Paid a $25 speeding fine in cash Paid $750 rent payment for Baltic Avenue Landed on Chance-Went to Jail and Paid $1,000 fine Purchased Tennessee Avenue for $150 on account/credit Paid back the Received $2,500 cash rent Received $1,500 rent payment for Park Place on account/credit Paid $300 to local ch Paid $200 for Reading Railroad Paid $200 for Waterworks Utili On October 31, 2017 On October 31, 2017 you received advanced rent payments of $6,000 cash to cover tenants rent for 19 20 21 23 24 25 26 27 28 29 able from transaction #10 nt for Boardwalk You classified this as a miscellaneous expense aid $1,500 cash to cover rent on various properties for the period Nov. 1,2017- Jan. 1,2018 (3 months d Nov. 1, 2017- Jan. 1, 2018 (3 months) ADJUSTING ENTRIES AND TABULAR ANALYSIS TEMPLATES Using the information provided below, record the six adjusting entries your company needs to record as of December 31, 2017 You will notice that the Tabular Analysis looks differently than what we covered previously. As a result of more accounts being used than could neatly be fit on one page, you will only being filling in balances for the Balance Sheet accounts (remember income statement accounts impact retained eamings). When you record a transaction that utilizes an income statement account (such as #6), you will need to list the account(s) used from the Income Statement under the "Account(s) Used" heading ( 17 of the 30 tranctions will require you to record the account(s) used from the income statement) The six adjusting entries are: 1. Consulting Revenue: On December 31, you were half way to "Passing Go" and eamed $100 of consulting revenue, which will not be paid until you fully "Pass Go" in 2018. Record the adjusting entry to reflect the $100 of consulting revenue eamed, but not yet received, as of December 31, 2017. (ADJ#1) 2. Property Taxes: On December 31, you owed property taxes of $1,000 (related to 2017). You will notpay these taxes until 2018 Record the adjusting entry to reflect the $1,000 accrued expense as of December 31, 2017 (ADJ 3. Prepaid Rent: Record the necessary adjusting entry related to the prepaid rent transaction recorded (Transaction #29). You are recording the adjusting entry as of December 31, 2017 (Hint-How Many Months Have You "Used" Up). (ADJ#3) 4. Unearned Revenue: Record the necessary adjusting entry related to the uneaned rent revenue transaction recorded (Transaction #30). You are recording the adjusting entry as of December 31, 2017 (Hint-How Many Months Have You Earned"). (ADJ#4) 5. Bribing City Official: On December 31, 2017 your company incurred a $300 fine for illegally bribing a city official. You have not yet received a bill from the city, but payment for the fine will be made in 2018. Record the adjusting entry made by your company on December 31, (ADJ#5) 6. Income Taxes: You will need to accrue income taxes equal to 25% of its net income for the year. After recording Transactions 1-30 and Adjusting Entries 1-5, you had the following information: Revenues 9,135; Expenses 5,323 and Income Before Taxes 3,812 After recording all transactions and adjusting entries, compare you total account balances to the provided check figures. SUBMISSON: Your completed Monopoly 205 Submission Packet is due at the beginning of class on the due date outined in the course schedule. LATE OR EMAILED SUBMISSIONS WILL NOT BE ACCEPTED HELPFUL INFORMATION: SELLING OR EXC For purposes of this project, use the following information to assist you in recording applicable entries (not all follow GAAP) GAINS AND ES Outright sale of one property to another player: The selling player decreases the land asset at the original purchase price (what they originally paid for asset). The offsetting entry is an increase to the cash (or accounts receivable) at the agreed-upon sales price. Any difference is assigned either to an account called gain on sale of property or to an account called loss on sale of property depending on whether the property was sold for more or less than the original purchase price Exchange of one property for another: In an exchange situation there is no agreed upon cash price, so it is necessary to find the fair market value of the asset which has been received. In a real situation, this information would probably be determined through an appraisal of the property or properties received in the transaction. Since this is not possible for our game, we invoke a special procedure for each player participating in the exchange. Once the exchange has been negotiated, record your transaction in the ollowing manner 1. Find the amount for which the other player originally purchased the property or properties. (given to you in description) 2. Add $50 to the original purchase price of the property. Assume this is the fair market value of the asset. 3. Increase assets (ie. land) for the property received at its fair market value (calculated in step 2). Also, increase assets for any other property received, including cash, at its fair market value. Decrease assets for any property which your company is giving up. For property, the decrease is made for the amount the company originally paid for the asset. Any difference between increases and decreases will be either a gain (revenue) or loss (expense) on sale. 4. 5. BALANCE SHEET INCOME STATEMENT REVENUE/GAIN/EXPENSE/LOSS Account(s) Used ASSETS LIABILITIES EQUITY Cash A/R LandnvestuildP. Rent M/P RE 5 10 12 13 14 15 BALANCE SHEET INCOME STATEMENT REVENUE/GAIN/EXPENSE/LOSS Account Used EQUITY Cash A/R Land Inves Build M/PAP FPI TIP URR SIRE Rent TOTAL 1-30 ADJ 1 ADJ 2 ADJ 3 ADJ 4 ADJ 5 ADJ 6 TOTALS SHOULD AGREE TO FINANCIAL STATEMENT CHECK FIGURES BALANCE SHEET As of December 31, 2017 INCOME STATEMENT For the Year Ended December 31, 2017 Rent Revenue Consulting Revenue Revenue Miscellanous Revenue 8,085.00 900.00 0.00 Cash Accounts Receivable Land Investments 7,112.00 1,600.00 1,290.00 400.00 Mortgage Payable Accounts Payable Fine Payable Taxes Payable Uneamed Rent Revenue 0.00 1,290.00 300.00 1,953.00 2,000.00 Gain on Sale of Pro Total Revenues Rent Expense 2,368.00 0.00 1,325.00 200.00 1.000.00 Fines & Pena ties Expense Luxury Tax Expense 1,000.00 5,543.00 3,500.00 Total Liabilities Repairs & Maintenance Expense Miscellanous Expense Prepaid Rent Common Stock Retained Eamings 500.00 00.00 Loss on Sale of Proper Income Before Taxes 3,812.00 Total E Total Liabilities and Equi 6.359.00 11,902.00 Total Assets 11,902.00 Income Tax Expense Net Income (Loss