Financial Accounting 1A Project 2 (30 points) DUE November 9 1) Prepare the Item
ID: 2566808 • Letter: F
Question
Financial Accounting 1A
Project 2 (30 points) DUE November 9
1) Prepare the Items listed in the Required Section below using the Transactions at the Bottom.
2) Use your Text-Book and Chapter Notes as a Guide on how to prepare the Required items.
3) All Required Items must be completed using a
Computer spreadsheet
program such as Microsoft Excel.
Please see me if you have not used a computerized spreadsheet before, also we will have an in class short lesson.
4) Points will be scored based on the Following; Accounting Formats, Proper Accounting Presentation, Organization,
Neatness, Completeness and Accuracy.
5) Please make sure to record All Transactions and prepare all Required Reports even if you are not completely sure of
their accuracy as more points will be awarded for effort than for blank, skipped, or missing reports and transactions.
6) Assume you are working with the Shark-Corp and you are preparing the Financial Statements for review by Investors and
Bankers.
7) You may Do This Assignment in a Group of Two or By Yourself.(your choice) Each Group can turn in one report for the
group, but the group must prepare their Own Spreadsheets!!( Do not copy or use another groups reports)
8) Do Not WAIT until the Last Day to start this project or you will not have enough time to complete the assignment. This
project will also help you to understand the Accounting Process, Principles, and Fundamentals
REQUIRED (Prepare and Deliver in The Following Order)
1) Prepare a Cover Page as Follows.
a) Name(s), Course, Assignment, Current Date
b) No Bulky Binder or Plastic Covers Please just Pages of Paper stapled together in Order
c) Pictures on Cover or elsewhere are not required but are encouraged and look great
2) Prepare a Table of Contents (Name of Each Report and the page the report starts and ends on)
3) Prepare the Accounting Journal, record all Accounting Entries based on the Transactions Below into the Journal using
the proper Journal Format. (Include explanations and
also calculations
where needed)
4) Prepare the General Ledger/T-Accounts, post all transactions from the Journal into the GL Accounts.
Use the Accounting Transaction Reference Numbers from Below to identify amounts in your T-Accounts.
5) Prepare the Adjusted Trial Balance with Debits and Credits and Totals
6) Prepare the Income Statement for the Month ended 12-31.
7) Prepare the Retained Earnings Statement for the Month ended 12-31
8) Prepare the Balance Sheet as of 12-31
BUSINESS TRANSACTIONS for the Month of December.
1) 12-1 The Shark Corp Received $200,000 from SJ Sharkie in exchange for 5,000 shares of Common Stock.
2) 12-2 The Shark Corp Borrowed $40,000 from Wells Fargo Bank and signed a Note.
3) 12-3 The Shark Corp purchased Office Furniture for $100,000(5 year life), on account from IKEA..
4) 12-4 The Shark Corp purchased Computer Equipment for $60,000(5 year life), on account from Office Depot
5) 12-5 The Shark Corp paid $18,000 with Check#101 for Corporate Insurance for the next 12 months.(Dec-Feb)
6) 12-10 The Shark Corp paid $20,000 with Check#102 for December Rent.
7) 12-11 The Shark Corp provided a mascot Seminar for the NIKE Corp and Billed Nike $120,000 on account.
8) 12-15 The Shark Corp received the December Utility Bill from PGE in the amount of $5,000 to be paid in Jan.
9) 12-16 The Shark Corp received the December Telephone Bill from SBC for $6,000 to be paid Later.
10) 12-17 The Shark Corp received a $70,000 Check from Nike Corp on account for services previously provided.
11) 12-20 The Shark Corp paid $10,000 with check #103 to Mark’s Marketing for Professional Fees Expense.
12) 12-25 The Shark Corp paid $40,000 with Check #104 for December Salary expenses.
13) 12-27 The Shark Corp received a $25,000 Check from Buick Corp for services to be provided in January.
14) 12-28 The Shark Corp Paid $100,000 with Check#105 to IKEA Corp for the Office Furniture purchased above.
15) 12-29 The Shark Corp Paid $6,000 with Check #106 to SBC on account for the Telephone Bill.
16) 12-30 The Shark Corp Paid $11,000 with Check#107 to Mr. SJ Sharkie for Dividends to the owner.
17) 12-30 The Shark Corp paid $3,000 with check #108 to WF Bank on the note, $1,000 was for Interest Expense.
18) 12-31 The Shark Corp recorded one Month of Insurance expense from the Prepaid Insurance account.
19) 12-31 The Shark Corp recorded one Month of Depreciation Expense on the Furniture and the Computer Equip.
20) 12-31 The Shark Corp recorded Income Tax Payable and Income Tax Expense for December, which is 40% of Net
Income.(Taxes to be discussed in class)
Explanation / Answer
Please Note: 1) In case of multiple subparts only first 4 subparts needs be answered as a mandatory requirement and
2) In case of multiple questions only first full question with minimum 4 sub parts needs to be answered as a mandatory requirement.
3) Question #1 and #2 under required section cannot be answered, hence question #3 was answered, with all sub parts (against minimum of 4 sub parts)
Question # 3) Below the Journal entries for BUSINESS TRANSACTIONS for the Month of December.
1) on 12-1
Cash - Debit $200,000
To Common Stock $200,000
(recording of cash received in exchange of common stock to SJ Sharkie)
2) on 12-2
Cash - Debit $40,000
To Notes Payable - Credit $40,000
(recording of cash borrowed from Wells Fargo bank and signing a note)
3) on 12-3
Purchase - Office Furniture - Debit $100,000
To Accounts Payable - Credit $100,000
( recording purchase of office furniture form IKEA on credit)
4) on 12-4
Purchase - Computer Equipment - Debit $60,000
To Accounts Payable - Credit $60,000
( recording purchase of computer equipment form Office Depot on credit)
5) on 12-5
Prepaid Insurance - Debit $18,000
To Bank - Credit $18,000
(recording payment towards corporate insurance payment for 1 year in check)
6) on 12-10
Rent expense - Debit $20,000
To Bank - Credit $20,000
(recording payment of rental charges for December month in check)
7) on 12-11
Accounts receivable - Debit $120,000
To Revenue from seminar - Credit $120,000
(recording of billing mascot seminar for NIKE Corp)
8) on 12-15
Utilities Expenses - Debit $5,000
To Utility expense payable - Credit $5,000
(recording of Utility expenses and creating liability in the month which is pertains to (December month))
9) on 12-16
Telephone Expenses - Debit $6,000
To Telephone expense payable - Credit $6,000
(recording of Telephone expenses and creating liability in the month which is pertains to (December month))
10) on 12-17
Bank - Debit $70,000
To Accounts receivable = Credit $70,000
(recording the receipt of payment from NIKE corp for Mascot seminar)
11) on 12-20
Professional fees - Debit $10,000
To Bank - Credit $10,000
(recording the payment of professional fees to Mark's marketing)
12) on 12-25
Salary expenses - Debit $40,000
To Bank - Credit $40,000
(recording of salaries paid to its employees for the month of December)
13) on 12-27
Bank - Debit $25,000
To Deferred revenue - Credit $25,000
(recording of payment received towards services to be rendered in next month)
14) on 12-28
Accounts payable - Debit $100,000
To Bank - Credit $100,000
(recording of payment to IKEA for purchase on 12-3)
15) on 12-29
Telephone expense payable - Debit $6,000
To Bank - Credit $6,000
(recording payment of telephone expenses for December)
16) on 12-30
Dividends - Debit $11,000
To Bank - Credit $11,000
(recording payment of dividend to owner SJ Sharkie)
17) on 12-30
Interest expense - Debit $3,000
To Bank - Credit $3,000
(recording payment of interest on Notes payable to Wells fargo bank)
18) on 12-31
Insurance Expense - Debit $1,500
($18,000/12 months = $1,500)
To Prepaid Expense - Credit $1,500
(recording amortization for insurance charges for December month)
19) on 12-31
Depreciation expenses - Debit $2,666.67
Furniture - $100,000*1/60months, = 16,66.67
Computer Equip -$60,000*1/60 months, = $1,000
To Accumulated depreciation - Furniture - Credit
To Accumulated depreciation - Computer equipment - Credit $2,666.67
(recording depreciation expense for the month of December)
20) on 12-31
Income tax - Debit ($20,833.33 at 40%) - $8,333.33
(refer income statement)
To Income tax payable - Credit $8,333.33
(recording income tax payable for December)
Please note: Shark Corp received a $25,000 Check from Buick Corp for services to be provided in January.is not considered as revenire for January.
Income Statement Revenues Revenue from Mascot seminar $120,000 Total Revenues and Gains $120,000 Expenses and Loses Professional fees $10,000 Rent expense $20,000 Utility expense $5,000 Telephone expense $6,000 Depreciation expense $2,666.67 Interest expense $3,000 Salary expense $40,000 Dividend $11,000 Insurance Expense $1,500 Total Expenses and Loses $991,66.67 Net Income $20,833.33Related Questions
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