Portfolio Project Option #2 is for accounting students who are intuitive learners by nature. You learn best from abstract materials like theories and concepts, enjoy challenges, and tend to be more innovative. For this assignment, you are required to complete the accounting case for Friday Line in Part 1, Bolton Consulting in Part 2, and Aranas Manufacturing in Part 3. Follow the additional instructions provided below. (The templates can be found in Module 8, and by clicking "Next" at the bottom of this page.) Part 1: Friday Line, a modeling agency, completed the following transactions during the first month of operations: April 1: Stockholders invested $65,000 cash along with equipment valued at $32,000 in the company in exchange for 1,000 shares of stock. April 3: Friday Line paid $9,500 cash to settle accounts payable. April 6: Friday Line completed services for a client and immediately received $2,500 cash. April 9: Friday Line completed a $7,500 project for a client who must pay within 30 days. April 12: Friday Line made credit purchases of $9,200 for office equipment and $4,100 for office supplies. Payment is due within 10 days. April 19: Friday Line paid $3,200 cash for the premium on a 12-month insurance policy. April 21: Friday Line pre-paid $12,000 for 12 months' rent for their office space. April 22: Friday Line received $6,000 cash as a partial payment for the work completed on April 9 completed on April 9. April 25: Friday Line purchased $725 of additional office supplies on credit. April 26: Friday Line completed work for another client for $3,125 on credit April 27: Friday Line paid a dividend of $6,500 cash to its stockholders. April 30: Friday Line paid $525 cash for this month's utility bill. Instructions: Prepare journals for the above economic transactions and include the effect that each transaction has on the accounting equation. Use the following assignment template for Friday Line Co. Part 2 The unadjusted trial balance of Bolton Consulting is entered on the partial worksheet below. Bolton Consulting Work Sheet For the year ended December 31 Unadjusted Trial Balance Adjusted Income Adjustments Trial Balance Statement Balance Sheet and Statement of Stockholders' Equity Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 31,000 Accounts Receivable 8,000 Supplies 12,500 Automobiles 175,000 Accum. Depr. - Autos 52,000 Accounts payable 17,500 Unearned fees 26,500 Salaries payable Capital Stock 58,000 Dividends 42,500 Fees earned 241,750 Salary expense 91,000 Rent expense 35,750 Advertising expense Supplies expense Depreciation expense .com Depreciation expense X x / Totals 395,750 395,750 Instructions Complete the worksheet using the following information: (a) Unpaid and unrecorded salaries earned by employees, $6,500, (b) Unused supplies still on hand is $3,200. (c) Machinery depreciation, $20,000. (d) Customers who paid $12,750 in advance have received their services. (e) Advertising for last quarter of the year in the amount of $5,200 remains unpaid and unrecorded. (f) The rent expense incurred and not yet paid or recorded at fiscal year-end is $4,100. ucture.com Part 3 Aranas Manufacturing, a tool retailer, began year 20x7 with 21,500 units of product in its January 1 inventory, at a cost of $12.50 for each unit. It made successive purchases of its product in year 20x7, as follows. The company uses a periodic inventory system. On December 31, 20x7, a physical count reveals that 35,000 units of its product remain in inventory. Mar. 7 25,000 units @$16 each May 25 41,500 units @ $19 each Aug. 1 22,750 units @ $23 each Nov. 10 38,100 units @ $24 each Instructions Using the template provided below. 1. Compute the number and total cost of the units available for sale in year 20x7. 2. Compute the amounts assigned to the 20x7 ending inventory, and the cost of goods sold for FIFO, LIFO, and weighted average. 3. The 113,850 units sold are $31 each. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO and weighted average, which include a detailed cost of goods sold section as part of each statement. (Round your average cost per unit to 2 decimal places.) 4. As the chief accountant of Aranas Manufacturing, provide recommendations giving all reasons based on your research on retail Places 4. As the chief accountant of Aranas Manufacturing, provide recommendations, giving all reasons based on your research on retail industry inventory best practices, management on: a. Which inventory method (FIFO, LIFO, average cost, or specific identification) you should use. b. Whether it is a good idea to keep using the periodic system as opposed to the perpetual inventory system. J14 x Priday Line Journal Entries for the month ending od 30 Debe Cred Worksheet For the year eaded December 31 Unadjusted trial balance Adjustments Adjusted trial balance Income Matement Balance sheet & Statement of Stockholders' Equity Debl 1100 e rede Debe Credit DubGredeDeb reda Debt Credit 12.50 IT 1 Account Reche Supplies Automobiles Acepto Accounts payable Unearned fees Salaries able Capital Dividends Powered 17,500 26.500 91000 Advertising Supplies Depreciation expense Totals 395.750 5.750 7 Beginning 8 Purchase March 7 May 25 August 1 Novemberto 13 Un available for sale Ending units Unit Cont 26 Comparative Income Statement 27 Sales 28 Cost of goods sold 29 Gross Profit Aranas Manufacturing +