For this assignment, you are required to complete all three accounting cases: Ve
ID: 2492687 • Letter: F
Question
For this assignment, you are required to complete all three accounting cases: Venture Consultants, Power and Demolition Company, and Warnerwood. You will then present Parts 1, 2, and 3 of the Portfolio Project in Excel as journal entries, following the exact instructions that accompany each part. Assignment Template attached below
Part 1: Denzel Brooks opens a web consulting business called Venture Consultants and completes the following transactions in March: March 1: Brooks invested $150,000 cash along with $22,000 of office equipment in the company. March 2: Venture Consultants pre-paid $6,000 cash or six months’ rent for their office. March 3: Venture Consultants made credit purchases for office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days. March 6: Venture Consultants completed services for a client and immediately received $4,000 cash. March 9: Venture Consultants completed a $7,500 project for a client who must pay within 30 days. March 12: Venture Consultants paid $4,200 cash to settle the account payable created on March 3. March 19: Venture Consultants paid a $5,000 cash premium on a 12-month insurance policy. March 22: Venture Consultants received $3,500 cash as a partial payment for the work completed on March 9. March 25: Venture Consultants completed work for another client for $3,820 on credit. March 29: Brooks withdrew $5,100 cash from the company for personal use. March 30: Venture Consultants purchased $600 of additional office supplies on credit. March 31: Venture Consultants paid $500 cash for this month’s utility bill. Instructions: Prepare journals for the above economic transactions. Venture Capital Consultants. Enter your journals to the general ledger using the same file name.
Part 2: The following unadjusted trial balance is for Power and Demolition Company as of year-end for the April 30, 2015 fiscal year. The April 30, 2014 credit balance of the owner's equity account is $46,900, and the owner invested $40,000 cash in the company during 2015. NO. Account Title Debit Credit 101 Cash $7,000 126 Supplies $16,000 128 Pre-paid insurance $12,600 167 Equipment $200,000 168 Accumulated depreciation – equipment $14,000 201 Accounts payable $6,800 251 Long-term notes payable $30,000 301 Bonn, equity $86,900 302 Bonn, withdrawals $12,000 401 Demolition fees earned $187,000 623 Wage expense $41,400 633 Interest expense $3,300 640 Rent expense $13,200 683 Property tax expense $9,700 684 Repairs expense $4,700 690 Utilities expense $4,800 TOTALS $324,700 $324,700 Instructions:
a) Journalize the following adjusting entries as of fiscal year-end April 30, 2015.
b) Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
c) Create financial statements.
The supplies available at the end of fiscal 2015 year are at a cost of $7,900. The cost of expired insurance for the fiscal year is $10,600. Annual depreciation on equipment is $7,000; no other depreciation adjustment was made in 2015. The April utilities expense of $800 is not included in the adjusted trial balance, because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded.The company's employees have earned $2000 of accrued wages in the fiscal year. The rent expense not yet paid or recorded in the fiscal year is $3000. Additional property taxes of $550 have been assessed for the fiscal year, but have not yet been paid or recorded in the accounts. The $300 accrued interest for April has not yet been paid and reported.
Part 3: The Warnerwood Company uses a perpetual inventory system. It entered the following purchases and sales transactions for March into the system: Date Activities Units Acquired at Cost Cost per Unit Units Sold at Retail Price per unit March 1 Beginning inventory 100 units $50 March 5 Purchase 400 units $55 March 9 Sales 420 $85 March 18 Purchase 120 units $60 March 25 Purchase 200 units $62 March 29 Sales 160 units $95 Totals 820 units 580 units Instructions: Show all of your work in an Excel spreadsheet for the following tasks:
Compute the number of units available for sale.
Compute the number of units in ending inventory.
Compute the cost assigned to ending inventory using:
(a) FIFO, (b) LIFO, and (c) weighted average. (Round the average cost per unit to 2 decimal places.)
Compute the gross profit earned by the company for each of the three costing methods. (Round the average cost per unit to 2 decimal places.)
Explanation / Answer
Part 1
Mar. 1 Cash........................................................ 101 150,000
Office Equipment.................................... 163 22,000
Common Stock................................ 307 172,000
Owner invested cash and equipment for stock.
2 Prepaid Rent........................................... 131 6,000
Cash................................................. 101 6,000
Prepaid six months’ rent.
3 Office Equipment.................................... 163 3,000
Office Supplies....................................... 124 1,200
Accounts Payable............................ 201 4,200
Purchased equipment and supplies on credit.
6 Cash........................................................ 101 4,000
Services Revenue............................ 403 4,000
Received cash for services.
9 Accounts Receivable............................... 106 7,500
Services Revenue............................ 403 7,500
Billed client for completed work.
12 Accounts Payable................................... 201 4,200
Cash................................................. 101 4,200
Paid balance due on account.
19 Prepaid Insurance................................... 128 5,000
Cash................................................. 101 5,000
Paid premium for insurance.
22 Cash........................................................ 101 3,500
Accounts Receivable....................... 106 3,500
Collected part of amount owed by client.
25 Accounts Receivable............................... 106 3,820
Services Revenue............................ 403 3,820
Billed client for completed work.
29 Dividends................................................ 319 5,100
Cash................................................. 101 5,100
Paid cash dividends.
30 Office Supplies....................................... 124 600
Accounts Payable............................ 201 600
Purchased supplies on account.
31 Utilities Expense..................................... 690 500
Cash................................................. 101 500
Paid monthly utility bill.
Part 2
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Mar.
1
G1
150,000
150,000
2
G1
6,000
144,000
6
G1
4,000
148,000
12
G1
4,200
143,800
19
G1
5,000
138,800
22
G1
3,500
142,300
29
G1
5,100
137,200
31
G1
500
136,700
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Mar.
9
G1
7,500
7,500
22
G1
3,500
4,000
25
G1
3,820
7,820
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Mar.
3
G1
1,200
1,200
30
G1
600
1,800
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Mar.
19
G1
5,000
5,000
Prepaid Rent
Acct. No. 131
Date
Explanation
PR
Debit
Credit
Balance
Mar.
2
G1
6,000
6,000
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Mar.
1
G1
22,000
22,000
3
G1
3,000
25,000
Part 2 (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Mar.
3
G1
4,200
4,200
12
G1
4,200
0
30
G1
600
600
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
Mar.
1
G1
172,000
172,000
Dividends
Acct. No. 319
Date
Explanation
PR
Debit
Credit
Balance
Mar.
29
G1
5,100
5,100
Services Revenue
Acct. No. 403
Date
Explanation
PR
Debit
Credit
Balance
Mar.
6
G1
4,000
4,000
9
G1
7,500
11,500
25
G1
3,820
15,320
Utilities Expense
Acct. No. 690
Date
Explanation
PR
Debit
Credit
Balance
Mar.
31
G1
500
500
Part 3
Venture Consultants
Trial Balance
March 31
Debit Credit
Cash.................................................................... $136,700
Accounts receivable............................................ 7,820
Office supplies.................................................... 1,800
Prepaid insurance............................................... 5,000
Prepaid rent........................................................ 6,000
Office equipment................................................ 25,000
Accounts payable................................................ $ 600
Common stock.................................................... 172,000
Dividends............................................................ 5,100
Services revenue................................................. 15,320
Utilities expense................................................. 500
Totals.................................................................. $187,920 $187,920
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Mar.
1
G1
150,000
150,000
2
G1
6,000
144,000
6
G1
4,000
148,000
12
G1
4,200
143,800
19
G1
5,000
138,800
22
G1
3,500
142,300
29
G1
5,100
137,200
31
G1
500
136,700
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Mar.
9
G1
7,500
7,500
22
G1
3,500
4,000
25
G1
3,820
7,820
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Mar.
3
G1
1,200
1,200
30
G1
600
1,800
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Mar.
19
G1
5,000
5,000
Prepaid Rent
Acct. No. 131
Date
Explanation
PR
Debit
Credit
Balance
Mar.
2
G1
6,000
6,000
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Mar.
1
G1
22,000
22,000
3
G1
3,000
25,000
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