ACCT 211 Week 8 Course Project | Accounting Assignment Help | Liberty University
- Liberty University / ACCT 211
- 08 Feb 2019
- Price: $5
- Other / Other
ACCT 211 Week 8 Course Project | Accounting Assignment Help | Liberty University
Project
v Question
1
Karla Tanner opened a web consulting
business called Linkworks and recorded the following transactions in its first
month of operations.
|
Apr. |
|
1 |
|
Tanner invests $80,000 cash along
with office equipment valued at $26,000 in the company in exchange for common
stock. |
|
Apr. |
|
2 |
|
The company prepaid $9,000 cash
for twelve months’ rent for office space. The company's policy is record
prepaid expenses in balance sheet accounts. |
|
Apr. |
|
3 |
|
The company made credit purchases
for $8,000 in office equipment and $3,600 in office supplies. Payment is due
within 10 days. |
|
Apr. |
|
6 |
|
The company completed services for
a client and immediately received $4,000 cash. |
|
Apr. |
|
9 |
|
The company completed a $6,000
project for a client, who must pay within 30 days. |
|
Apr. |
|
13 |
|
The company paid $11,600 cash to
settle the account payable created on April 3. |
|
Apr. |
|
19 |
|
The company paid $2,400 cash for
the premium on a 12-month insurance policy. The company's policy is record
prepaid expenses in balance sheet accounts. |
|
Apr. |
|
22 |
|
The company received $4,400 cash
as partial payment for the work completed on April 9. |
|
Apr. |
|
25 |
|
The company completed work for
another client for $2,890 on credit. |
|
Apr. |
|
28 |
|
The company paid $5,500 cash in dividends. |
|
Apr. |
|
29 |
|
The company purchased $600 of
additional office supplies on credit. |
|
Apr. |
|
30 |
|
The company paid $435 cash for
this month’s utility bill. |
Descriptions of items that require
adjusting entries on April 30, 2017, follow.
· a) On April 2, the company prepaid $9,000 cash for twelve
months' rent for office space.
· b) The balance in Prepaid insurance represents the premium
paid for a 12-month insurance policy the policy's coverage began on April 1.
· c) Office supplies on hand as of April 30 total $1,200.
· d) Straight-line depreciation of office equipment, based on
a 5-year life and a $4,000 salvage value, is $500 per month.
· e) The company has completed work for a client, but has not
yet billed the $1,800 fee.
- f) Wages due to employees, but not yet paid, as of
April 30 total $2,600.
Requirement
General Journal tab -For each transaction, review the
unadjusted balance and prepare the adjusting entry necessary to correctly
report the revenue earned or the expense incurred. After adjusting the
accounts, review the general ledger and trial balance for accuracy.
General Ledger tab - Each journal entry is posted automatically to the general
ledger. Use the drop-down button to view the unadjusted or adjusted balances.
Trial Balance tab- You may view either the unadjusted or adjusted trial
balance by choosing from the dropdown box below. Your choice will
determine the reported values on the financial statement tabs.
Income Statement tab - Use the drop-downs to select the
accounts properly included on the income statement. The unadjusted
or adjusted balances will appear for each account, based on your selection.
Statement
of Retained earnings tab
- The unadjusted or adjusted
balances will appear for each account, based on your selection.
Balance Sheet tab - Use the drop-downs to select the
accounts properly included on the balance sheet. The unadjusted or
adjusted balances will appear for each account, based on your selection.
Impact on Income tab -For each adjustment, indicate the
income statement and balance sheet account affected, and the impact on net
income. If an adjustment caused net income to decrease, enter the amount
as a negative value. Net income before adjustments can be found on the
income statement tab. (Hint: Select unadjusted on the dropdown.)
v Question
2
Santana Rey, owner of Business
Solutions, decides to prepare a statement of cash flows for her business using
the following financial data.
|
BUSINESS
SOLUTIONS |
|||||
|
Income
Statement |
|||||
|
For
Three Months Ended March 31, 2018 |
|||||
|
Computer services revenue |
|
|
|
$ |
24,507 |
|
Net sales |
|
|
|
|
18,193 |
|
Total revenue |
|
|
|
|
42,700 |
|
Cost of goods sold |
$ |
14,852 |
|
|
|
|
Depreciation expense—Office
equipment |
|
330 |
|
|
|
|
Depreciation expense—Computer
equipment |
|
1,190 |
|
|
|
|
Wages expense |
|
2,850 |
|
|
|
|
Insurance expense |
|
495 |
|
|
|
|
Rent expense |
|
1,875 |
|
|
|
|
Computer supplies expense |
|
1,275 |
|
|
|
|
Advertising expense |
|
570 |
|
|
|
|
Mileage expense |
|
320 |
|
|
|
|
Repairs expense—Computer |
|
900 |
|
|
|
|
Total expenses |
|
|
|
|
24,657 |
|
Net income |
|
|
|
$ |
18,043 |
|
|
|||||
|
BUSINESS
SOLUTIONS |
|||||||
|
Comparative
Balance Sheets |
|||||||
|
December
31, 2017, and March 31, 2018 |
|||||||
|
|
Mar. 31,
2018 |
|
Dec. 31,
2017 |
||||
|
Assets |
|
|
|
|
|
|
|
|
Cash |
$ |
81,097 |
|
|
$ |
56,932 |
|
|
Accounts receivable |
|
23,667 |
|
|
|
5,568 |
|
|
Inventory |
|
684 |
|
|
|
0 |
|
|
Computer supplies |
|
2,075 |
|
|
|
530 |
|
|
Prepaid insurance |
|
1,070 |
|
|
|
1,645 |
|
|
Prepaid rent |
|
795 |
|
|
|
795 |
|
|
Total current assets |
|
109,388 |
|
|
|
65,470 |
|
|
Office equipment |
|
7,500 |
|
|
|
7,500 |
|
|
Accumulated depreciation—Office
equipment |
|
(660 |
) |
|
|
(330 |
) |
|
Computer equipment |
|
19,800 |
|
|
|
19,800 |
|
|
Accumulated depreciation—Computer
equipment |
|
(2,380 |
) |
|
|
(1,190 |
) |
|
Total assets |
$ |
133,648 |
|
|
$ |
91,250 |
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
Accounts payable |
$ |
0 |
|
|
$ |
1,170 |
|
|
Wages payable |
|
945 |
|
|
|
520 |
|
|
Unearned computer service revenue |
|
0 |
|
|
|
2,200 |
|
|
Total current liabilities |
|
945 |
|
|
|
3,890 |
|
|
Equity |
|
|
|
|
|
|
|
|
Common stock |
|
111,000 |
|
|
|
79,000 |
|
|
Retained earnings |
|
21,703 |
|
|
|
8,360 |
|
|
Total liabilities and equity |
$ |
133,648 |
|
|
$ |
91,250 |
|
|
|
|||||||
Required:
Prepare a statement of cash flows for Business Solutions using the indirect
method for the three months ended March 31, 2018. Owner Santana Rey
contributed $32,000 to the business in exchange for additional stock in the
first quarter of 2018 and has received $4,700 in cash dividends. (Amounts to be deducted should be indicated with a minus
sign.)
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