Jan. 5, 2020 Received customer payment of $15,000. Accounting Project - Part 1 Required: Jan. 20, 2020 Sold a $40,000 non-interesting bearing note to U.S. Bank Corporation. Received $38,000 cash. Note is due on January 19, 2021. 1. Prepare the following, December 31, 2019 financial statements: a. Income Statement b. Retained Earnings Statement C. Balance Sheet Note: The December 31, 2019 adjusted trial balance is provided below. 2. Prepare the fiscal year end closing entries. 3. Prepare the January 1, 2020 opening trial balance. 4. Prepare the journal entries for the first six months of 2020. Note: The owners provided a written summary of activities they believe accounting entries need to be prepared (see page 3). 5. The owners would like to know the current (as of 6/30/20) cash and inventory balance. They would like you to Jan. 29, 2020 Purchased $65,000 inventory on account. Jan. 30, 2020 Paid $65,000 to suppliers for previous purchases of inventory. Jan. 31, 2020 Paid monthly salaries to sales staff ($4,500) and administrative staff ($5,000). Paid for various supplies etc. (company policy to expense as incurred). Selling department supplies $3,200 Administrative department supplies $2,100 Feb. 15, 2020 provide a "T" account showing the activity in each account. Feb. 28, 2020 Paid monthly salaries to sales staff ($4,500) and administrative staff ($5,000). March 5, 2020 Paid $10,000 to suppliers for previous purchases of inventory. ExpressZZaPie Adjusted Trial Balance March 10, 2020 Sold $47,000 of product on account to 3Meats Pizza. Cost of the product sold was $24,000. December 31, 2019 March 31, 2020 Paid monthly salaries to sales staff ($4,500) and administrative staff ($5,000). Account Cash Debit Credit April 10, 2020 Received customer payment of $47,000. 184,000 Accounts Receivable Allowance for Doubtful Accounts 15,000 April 20, 2020 Paid $30,000 to suppliers for previous purchases of inventory. 100 Inventory Equipment- Packaging 23,000 72,000 April 30, 2020 Pald monthly salaries to sales staff ($4,500) and administrative staff ($5,000). Equipment- Office Accumulated Depreciation: Equipment- Packaging Accumulated Depreciation: Equipment- Office Accounts Payable Interest Payable SBA Loan (Long-Term) 22,000 May 2, 2020 Paid sales commis of $14,000 due to sales staff. 7,200 May 3, 2020 2,200 72,500 Paid for various supplies etc. (company policy to expense as incurred). Selling department supplies $1,650 Administrotive department supplies $1,150 10,000 110,000 $ 0.01 2,800 May 5, 2020 Sold $63,000 of product to Target Pizza. Cost of the product sold was $48,000. Common Stock Par 97,200 Additional Paid-In Capital Retained Earnings Dividends Sales (Revenue) Cost of Goods Sold (COGS) Selling Expense Administrative Expense May 31, 2020 Paid monthly salaries to sales staff ($4,500) and administrative staff ($5,000). June 5, 2020 Purchased $50,000 inventory on account. 265,000 86,000 65,000 85,000 15,000 567,000 June 10, 2020 Paid $40,000 to suppliers for previous purchases of inventory. June 14, 2020 Sold $66,000 of product on account to Picky Pizza. Cost of the product sold was $38.000. Income Tax Expense 567,000 Paid monthly salaries to sales staff ($4,500) and administrative staff ($5,000). June 30, 2020
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Required:
-
Prepare the following, December 31, 2019, financial statements:
-
Income Statement
-
Retained Earnings Statement -
Balance Sheet
-
December 31, 2019, adjusted
-
Prepare the fiscal year-end closing entries.
-
Prepare the January 1, 2020 opening trial balance.
-
Prepare the
journal entries for the first six months of 2020.
The owners provided a written summary of activities they believe accounting entries need to be prepared (see page 2).
-
The owners would like to know the current (as of 6/30/20) cash and the inventory balance. They would like you to provide a “T” account showing the activity in each account.
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Jan. 5, 2020
Received customer payment of $15,000.
Accounting Project - Part 1
Required:
Sold a $40,000 non-interesting bearing note to U.S. Bank Corporation. Received $38,000 cash.
Note is due on January 19, 2021.
Jan. 20, 2020
1. Prepare the following, December 31, 2019 financial statements:
a.
Income Statement
b. Retained Earnings Statement
Jan. 29, 2020
Purchased $65,000 inventory on account.
C.
Balance Sheet
Note: The December 31, 2019 adjusted trial balance is provided below.
Jan. 30, 2020
Paid $65,000 to suppliers for previous purchases of inventory.
2. Prepare the fiscal year end closing entries.
3. Prepare the January 1, 2020 opening trial balance.
4. Prepare the journal entries for the first six months of 2020.
Note: The owners provided a written summary of activities they believe accounting entries need to be prepared
Jan. 31, 2020
Paid monthly salaries to sales staff ($4,500) and administrative staff ($5,000).
Paid for various supplies etc. (company policy to expense as incurred).
Selling department supplies $3,200
Administrative department supplies $2,100
Feb. 15, 2020
(see page 3).
5. The owners would like to know the current (as of 6/30/20) cash and inventory balance. They would like you to
provide a "T" account showing the activity in each account.
Feb. 28, 2020
Paid monthly salaries to sales staff ($4,500) and administrative staff ($5,000).
March 5, 2020
Paid $10,000 to suppliers for previous purchases of inventory.
ExpressZZaPie
Adjusted Trial Balance
March 10, 2020
Sold $47,000 of product on account to 3Meats Pizza. Cost of the product sold was $24,000.
December 31, 2019
March 31, 2020
Paid monthly salaries to sales staff ($4,500) ond administrative staff ($5,000).
Account
Debit
Credit
Cash
April 10, 2020
Received customer payment of $47,000.
184,000
Accounts Receivable
Allowance for Doubtful ACcounts
15,000
April 20, 2020
Paid $30,000 to suppliers for previous purchases of inventory.
100
Inventory
23,000
April 30, 2020
Paid monthly salaries to sales staff ($4,500) and administrative staff ($5,000).
Equipment - Packaging
72,000
Equipment- Office
Accumulated Depreciation: Equipment - Packaging
Accumulated Depreciation: Equipment Office
Accounts Payable
Interest Payable
SBA Loan (Long-Term)
Common Stock Par
Additional Paid-In Capital
Retained Earnings
Dividends
22,000
May 2, 2020
Paid sales commission of $14,000 due to sales staff.
7,200
Paid for various supplies etc. (company policy to expense as incurred).
Selling department supplies $1,650
Administrotive department supplies $1,150
2,200
May 3, 2020
72,500
10,000
110,000
$ 0.01
2,800
May 5, 2020
Sold $63,000 of product to Target Pizza. Cost of the product sold was $48,000.
97,200
May 31, 2020
Paid monthly salaries to sales staff ($4,500) and administrative staff ($5,000).
June 5, 2020
Purchased $50,000 inventory on account.
265,000
Sales (Revenue)
Cost of Goods Sold (COGS)
Selling Expense
Administrative Expense
Income Tax Expense
86,000
Paid $40,000 to suppliers for previous purchases of inventory.
June 10, 2020
65,000
85,000
Sold $66,000 of product on account to Picky Pizza. Cost of the product sold was $38,000.
June 14, 2020
15,000
567,000
567,000
Paid monthly salaries to sales staff ($4,500) and administrative staff ($5,000).
June 30, 2020
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Date
Account
Debit
Credit
J1
Jan. 5, 2020
Cash
$15,000
Accounts Receivalbe
$ 15,000
Received customer payment of $15,000.
J2
$38,000
$ 2,000
Jan. 20, 2020
Cash
Interest Expense
Notes Payable
$ 40,000
Sold a $40,000 non-interesting bearing note to U.S. Bank Corporation. Received $38,000 cash,
Note is due on lanuary 19, 2021.
Jan. 29, 2020
Inventory
$ 65,000
Accounts Payable
$ 65,000
Purchased $65,000 inventory on account.
$65,000
Accounts Payable
Cash
J4
Jan. 30, 2020
$ 65,000
Paid $65,000 to suppliers for previous purchases of inventory.
Selling Expense
Administrative Expense
J5
Jan. 31, 2020
$ 4,500
$ 5,000
Cash
$ 9,500
Paid monthly (January) salaries to sale and administrative staff.
...
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