project 01 - je fs fsa student
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7/23/2019 Project 01 - Je Fs Fsa Student
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BACKGROUND
CAUTION
STEP-BY-STEP INSTRUCTIONS
Make sure the trial balance as of 12/31/13 balances.
Compan ! is a start"up compan that starte# last ear$ in 2%13. &ou are assi'ne# to make thenecessar (ournal entries for Compan ! in 2%14. )n the follo*in' tabs ou *ill be 'i+en Companpost"closin' trial balance at the en# of 2%13 as *ell as a list of transactions for 2%14. &ou are also'i+en a blank 'eneral (ournal to recor# our transactions$ an# a blank trial balance. -he trial balanif use# correctl$ *ill help ou #etermine the en#in' balances in all accounts. at the en# of 2%14.
-he 'eneral (ournal consists of t*o parts the (ournal entries an# a#(ustin' entries 0)- -here arsi a#(ustin' entries$ three of *hich are transactions 19$ 2% an# 21. &ou *ill nee# to fi'ure out the
other three on our o*n. -ransaction 19 has been complete# an# inclu#e# in the 'eneral (ournaan eample.
ote -here are multiple tabs in+ol+e# in this assi'nment$ so be sure to look at e+er tab to make sou ha+e complete# e+erthin'.
&ou are on our honor to complete this pro(ect on our o*n *ith no help from an other li+in' persoecept for the t*o CC 3%5 -s n#re* an# n#on or our professor. -he conseuences of nobein' honorable on this assi'nment are that ou *ill recei+e a ,%, on this assi'nment$ an# the
ssociate ean o+er stu#ents in the Marriott chool *ill be notifie# of our con#uct.
:e+ie* the 2%14 transactions -ransactions 1 thru 18 on the ,-ransactions, tab an# make appropr (ournal entries. :ecor# these transactions in the ,;eneral <ournal, tab. =palnations are nee#e# ofor the a#(ustin' entries.
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>ost the (ournal entries ma#e in step 5 in the appropriate columns on the ,?orksheet 12"31"14, tab
&ou *ill nee# to reference our tet to help ou remember ho* to account for certain transactions.@or eample$ three transactions that stu#ents ten# to stru''le *ith are transactions A6$ A7$ an# A8There are others. >lease re+ie* our tet first before askin' uestions of the -,s or our profess
>ost the (ournal entries ma#e in step 2 in the relate# transaction A columns in the ,?orksheet 12"314, tab.
=cel shoul# summariBe the effect of postin' the (ournal entries ma#e in step 2 in the 2%14una#(uste# trial balance. Make sure the una#(uste# trial balance balances i.e.$ #ebits cre#its.
:e+ie* transactions 19 thru 21 on the ,-ransactions, tab an# consi#er the other t*o a#(ustin' entrinee#e# an# make the appropriate a#(ustin' entries in the ,;eneral <ournal,. &ou shoul# sho* sia#ustin' entires in total.
=cel shoul# summariBe the effect of the a#(ustin' entries in the 2%14 #(uste# >re"closin' -rialDalance columns on the ,?orksheet 12"31"14, tab.
Ese the 2%13 =n#in' -rial Dalance an# the 2%14 #(uste# >re"Closin' -rial Dalance in the,?orksheet 12"31"14, tab to create a balance sheet an# income statement in the ,@inancialtatements, tab
Ese the Dalance heet an# )ncome tatement to perform the reuest analsis in the ,nalsis, taban# then ans*er the relate# uestions. ns*ers to uestions shoul# be input into the >ro(ect 1,scantron, in earnin' uite,
0alf the points 1% pts *ill be a*ar#e# for completin' the ecel *orkbook. -he other half of the po1% pts *ill be base# on the accurac of the ans*ers to uestions 1"5 in the ,nalsis, tab.
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leted by:
Company X
Post-Closing Trial BalanceFor the year ended December 31, 213
!cco"nt #ame $!lphabetically% Debit Credit
!cco"nts &ecei'able 1(,)
!cco"nts Payable *2,)+
!ccr"ed iabilities 2,2.!cc"m"lated Depreciation ),+*
!dditional Paid-/n-Capital 3),(
!llo0ance or Do"bt"l !cco"nts 1,)
Bad Debt pense
Cash (,+.
Commision
Common 4toc5 2*1
Cost o &e'en"es
Depreciation pense
6ain on 4ale6ain on 4ec"rities
ncome Ta pense
ncome Ta Payable ,)
ntangible !ssets 1,)
nterest /ncome7pense
nterest Payable
oans Payable 11,
8ar5et !d9"stment ),
8ar5etable 4ec"rities 13,3.)
ther ong-Term !ssets 1,PP; 1*.,(+3
Prepaid &ent
& ; D pense
&ent pense
&etained arnings 2*,132
4alaries $6;!%
4ales ; 8ar5eting pense
4ales Disco"nts
2013 Ending Balance
(closed)
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4ales &e'en"e
<nearned &e'en"e 2,
2*1,*(* 2*1,*(*
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2014 Transactions for Company X
Transaction # Date Eent
1 =an"ary 1 P"rchased 8ar5etable 4ec"rites or >1,
2 8arch 1) Paid last year@s income ta liability?
3 !pril 1
( !pril 1
) !pril 1 P"rchased eA"ipment or >),?
* !pril )
. 8ay 1
="ne 3 /ss"ed 1, shares o >1 par 'al"e stoc5
+ ="ly 1) 4pent >, cash on researching ne0 prod
1 ="ly 31 Paid 4alaries $6;!% o >2,?
11 4ept 3
12 ctober 1 The "nearned re'en"e rom the prior year
13 ctober 1 /nc"rred >, in 8ar5eting penses? Pai
1( ctober 1
1) ctober 31
1* #o' 1
ad &e'en"es on acco"nt o >12,? TerThe cost o these re'en"es 0as >1), an0ere >1,? Both cost o sales and com
cash?
Prepaid >*, in rent or the net 12 mont
asset?
&ecei'ed the cash to settle >3, $gross%recorded on !pril 1? C"stomers too5 the all
A"ipment that originally cost >, and h>3, 0as sold or >(, cash?
>, is borro0ed rom a local ban5 at +/nterest is payable yearly on ct 1 $beginni
P"rchased an intangible asset rom anothercash? This asset 0ill not be amortied?
&ecei'ed >+, o payments on past !ccodisco"nts 0ere ta5en?
/nc"rred and paid >2, o costs $epens
&e'en"es
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1. Dec 1
1 Dec 31
1+ Dec 31
2 Dec 31
21 Dec 31 Depreciation epense or the year totaled >
22 Dec 31
23 Dec 31 $int: ne0 loan%
2( Dec 31 $int: prepaid rent%
&ecei'ed cash o >1,. or ser'ices that 0iyear?
/ncome Ta or 21( is >1.,? >1*, i
the remainder 0ill be paid 8arch 1), 21)?
8ar5etable sec"rities $classiied as trading%>(, d"ring the year
<ses the !llo0ance 8ethod or estimating Bpercent of t!e ending " Balance is esti
"ncollectible?
/n 213, the Company borro0ed >11, at/nterest is payable on Dec 31
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? Paid 0ith Cash?
r >+ cash each?
"cts?
as earned?
d in cash?
s o )71, net *?sales commissions
issions 0ere paid in
s? &ecorded as an
o the &ecei'ables0ed disco"nt $)%?
d a boo5 'al"e o
interest per year?g in 21)%?
company or >11,
"nts &ecei'able? #o
s% related to
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,2?
ll be perormed net
paid this year and
increased in 'al"e by
d Debt? Ten
ated to be
interest per year?
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$eneral %o&rnal
Transaction # Date "cco&nt Title'Description Deit Credit
1 =an 18ar5etable 4ec"rities 1,
Cash 1,
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!D=<4T/#6 #T&/4
1+ Dec 318ar5et !d9"stment (,
6ain on 4ec"rities (,
/ncrease in 'al"e o 8ar5etable sec"rities?
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Completed by:
Company X
Post-Closing Trial BalanceFor the year ended December 31, 213
!cco"nt #ame $!lphabetically% Debit
!cco"nts &ecei'able 1(,)!cco"nts Payable
!ccr"ed iabilities
!cc"m"lated Depreciation
!dditional Paid-/n-Capital
!llo0ance or Do"bt"l !cco"nts
Bad Debt pense
Cash (,+.
Commision
Common 4toc5
Cost o &e'en"esDepreciation pense
6ain on 4ale
6ain on 4ec"rities
/ncome Ta pense
/ncome Ta Payable
/ntangible !ssets 1,)
/nterest /ncome7pense
/nterest Payable
oans Payable
8ar5et !d9"stment ),8ar5etable 4ec"rities 13,3.)
ther ong-Term !ssets 1,
PP; 1*.,(+3
Prepaid &ent
& ; D pense
&ent pense
&etained arnings
4alaries $6;!%
2013 End
Balance
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4ales ; 8ar5eting pense
4ales Disco"nts
4ales &e'en"e
<nearned &e'en"e
21*4
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1 2
Credit Debit Credit Debit Credit Debit
*2,)+
2,2.
),+*
3),(
1,)
1,
2*1
,)
11,
1,
2*,132
ing Trial
closed)
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2,
21*4
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4 +
Credit Debit Credit Debit Credit Debit Credit
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Transaction #
, - . 1
Debit Credit Debit Credit Debit Credit Debit
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0 11 12 13
Credit Debit Credit Debit Credit Debit Credit
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14 1+ 1
Debit Credit Debit Credit Debit Credit
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1, 1-
Debit Credit Debit Credit Debit
1(,)-
-
-
-
-
-
3,+.
-
-
--
-
-
-
-
1,)
-
-
-
),23,3.)
1,
1*.,(+3
-
-
-
-
-
2014 /nad&
Balanc
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-
-
-
-
-
21*4
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"d&sting E
1 2 3
Credit Debit Credit Debit Credit Debit Credit
-*2,)+
2,2.
),+*
3),(
1,)
-
-
-
2*1
--
-
- (,
-
,)
-
-
-
11,
-(,
-
-
-
-
-
-
2*,132
-
ted Trial
e
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-
-
-
2,
-
21*4
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tries
4 +
Debit Credit Debit Credit Debit Credit Debit
1(,)-
-
-
-
-
-
3,+.
-
-
--
-
-
-
-
1,)
-
-
-
+,
23,3.)
1,
1*.,(+3
-
-
-
-
-
2014 "d&sted r
Bala
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-
-
-
-
-
2+*4
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Credit
-*2,)+
2,2.
),+*
3),(
1,)
-
-
-
2*1
--
-
(,
-
,)
-
-
-
11,
-
-
-
-
-
-
-
2*,132
-
e'Closing Trial
ce
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-
-
-
2,
-
2+*4
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C"r
Tot
Tot
C"r
Tot
Tot
4to
Tot
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Tot
pe
th
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Company X
Balance !eet
"s of Decemer 31
ent !ssets
Cash
8ar5etable 4ec"rities
Prepaid &ent
l C&rrent "ssets
Property, Plant ; A"ipment
ess: !cc"m"lated Decpreciation
#et Property, Plant ; A"ipment
/ntangible !ssets
ther ong-Term !ssets
l "ssets
ent iabilities
!cco"nts Payable!ccr"ed iabilities
/ncome Ta Payable
/nterest Payable
<nearned &e'en"e
l C&rrent iailities
oans Payable
l iailities
5holder@s A"ity
Common 4toc5
!dditional Paid-/n-Captial
&etained arnings
l E&ity
!cco"nts &ecei'able $net o allo0ances or bad debt o >EEEEE, and >EEEErespecti'ely%
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l iailities and toc5!older6s E&ity
Company X7ncome tatement
8or t!e 9ear Ended Decemer 31
4ales &e'en"e
ess 4ales Disco"nts
#et 4ales
Cost o &e'en"es
6ross Proit
ating penses:
4alaries $6;!%
4ales ; 8ar5eting pense
Commissions
&;D pense
&ent pense
Depreciation penseBad Debt pense
/ncome rom operations
r items
/nterest income
/nterest epense
6ain on 4ale6ain on 4ec"rities
/ncome beore income ta
/ncome ta epense
#et /ncome
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2014 2013
- -
- -
' '
- -
- -
hint: retained earni
- -
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' '
2014
> -
> -
hint: any credit balance epe
> -
> -
hint: any interest income an
hint: interest epense sho"ld
> -
> -
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ngs sho"ld eA"al the prior year balance pl"s c"rrent year net incom
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nses sho"ld be entered as a negati'e n"mber
gains sho"ld be entered as a positi'e n"mber
be entered as a negati'e n"mber
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/sing t!e information from t!e financial statements perform t!e follo
Comp"te Company X@s c"rrent ratio
2014
C"rrent !ssets -C"rrent iabilities -
C"rrent &atio
1Does Company X ha'e the ability to pay its debts in th
a? Hes
b? #o
Comp"te Company X@s ret"rn on sales and ret"rn on eA"ity
2014
#et /ncome -
4ales -
4toc5holder@s A"ity -
&et"rn on 4ales
&et"rn on A"ity
2 /s the 21( ret"rn on sales higher than the 21( ret"r
a? Hes
b? #o
Comp"te Company X@s asset t"rno'er ratio
2014
4ales -
Total !ssets -
!sset T"rno'er
3!re Company X@s assets being "sed more eiciently in
a? Hes
b? #o
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Comp"te selected common sie income statements amo"nts or t
2014
4alaries $6;!% -
4ales ; 8ar5eting pense -
Commissions -&;D pense -
&ent pense -
Depreciation pense -
Bad Debt pense -
4Ihich operating epense has increased most as a per
a? 4alaries $6;!%
b? 4ales ; 8ar5eting pense
c? Commisssionsd? &;D pense
e? &ent pense
? Depreciation pense
g? Bad Debt pense
+o0 m"ch 0o"ld an in'estor ha'e earned in 21( or
a? >?2
b? >?2)
c? >?3
d? >?3)
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:ing analyses and ans:er t!e follo:ing &estions in t!e roect 1 ;s
2013
--
short r"n at the end o 21( $i?e?, is the c"rrent ratio 1G%
n on eA"ityG
2013
),
-
21( relati'e to 213 $ass"me 213 #et 4ales 0ere >),%G
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e ollo0ing epenses
2013
JD/K7L 1, 2?1 JD/K7L
JD/K7L *, .?1 JD/K7L
JD/K7L .,) ? JD/K7LJD/K7L (, (?. JD/K7L
JD/K7L (,) )?3 JD/K7L
JD/K7L 2, 2?( JD/K7L
JD/K7L 1,) 1? JD/K7L
ent o net sales $ass"ming 213 operating epense abo'e%G
'ery >1 dollar in'estedG
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antron; in earning &ite
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