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ultramarineelk44Lv1

28 Sep 2019

Sparkle Spa Corporation

Transactions for 2015 and 2016

May 12, 2015 Provide service to customers on account $80,000

August 19, 2015 Recieve cash from customers on account $65,000

December 31, 2015 Estimated A/R that will not be received 20%

April 4, 2016 Provide service to customers on account $73,000

June 22, 2016 Recieve cash from customers for services $8,000

July 2, 2016 Finds out a customer who owed $2,000 now cannot pay his Account Recievable. So Sparkle Spa will write off this account $2,000

October 19, 2016 Recieve cash from customers for services $42,000

December31,2016 Estimated A/R that will not be received 20%

Sparkle Spa Corporation

2015 Journal Entries

Date Account Debit Credit

May 12, 2015 Accounts Recievable

Service Revenue

Provide services on account.

Aug 19, 2015 Cash

Accounts Recievableâ

Recieve cash on account

Dec 31, 2015 Bad Debt Expense

Allowance for Uncollectable Accounts

Estimate future bad debts

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Bunny GreenfelderLv2

29 Sep 2019

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Related questions

The comparative balance sheet of Whitman Co. at December 31,2016 and 2015, is as follows:

1		Dec. 31, 2016	Dec. 31, 2015
2	Assets
3	Cash	$918,260.00	$965,110.00
4	Accounts receivable (net)	â828,050.00	761,830.00
5	Inventories	1,268,550.00	1,163,510.00
6	Prepaid expenses	28,760.00	35,720.00
7	Land	315,810.00	479,900.00
8	Buildings	1,463,300.00	900,740.00
9	Accumulated depreciation-buildings	(408,350.00)	(381,910.00)
10	Equipment	512,470.00	454,060.00
11	Accumulated depreciation-equipment	(142,270.00)	(159,730.00)
12	Total assets	$4,784,580.00	$4,219,230.00
13	Liabilities and Stockholdersâ Equity
14	Accounts payable (merchandise creditors)	$922,360.00	$957,810.00
15	Bonds payable	270,000.00	0.00
16	Common stock, $25 par	316,000.00	116,000.00
17	Paid-in capital: Excess of issue price over parâcommon stock	775,000.00	559,000.00
18	Retained earnings	2,501,220.00	2,586,420.00
19	Total liabilities and stockholdersâ equity	$4,784,580.00	$4,219,230.00

The noncurrent asset, noncurrent liability, and stockholdersâequity accounts for 2016 are as follows:

ACCOUNT Land

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance			479,900
Apr.	20	Realized $152,430 cash from sale		164,090	315,810

ACCOUNT Buildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance			900,740
Apr.	20	Acquired for cash	562,560		1,463,300

ACCOUNT Accumulated DepreciationââBuildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				381,910
Dec.	31	Depreciation for year		26,440		408,350

ACCOUNT Equipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance			454,060
	26	Discarded, no salvage		47,260	406,800
Aug.	11	Purchased for cash	105,670		512,470

ACCOUNT Accumulated Depreciation ââEquipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				159,730
	26	Equipment discarded	47,260			112,470
Dec.	31	Depreciation for year		29,800		142,270

ACCOUNT Bonds Payable

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
May	1	Issued 20-year bonds		270,000		270,000

ACCOUNT Common Stock $25 par

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				116,000
Dec.	7	Issued 8,000 shares of common stock for $52 per share		200,000		316,000

ACCOUNT Paid-In Capital in Excess of ParââCommonStock

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				559,000
Dec.	7	Issued 8,000 shares of common stock for $52 per share		216,000		775,000

ACCOUNT Retained Earnings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				2,586,420
Dec.	31	Net loss	53,460			2,532,960
	31	Cash dividends	31,740			2,501,220

Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Refer to theLabels and Amount Descriptions list provided for the exact wordingof the answer choices for text entries. Be sure to complete theheading of the statement. In the operating activities section, usethe minus sign to indicate cash outflows, decreases in cash and anet cash outflow, if required. In the investing and financingactivities section, use a minus sign only to indicate a NET cashoutflow for the section.

Labels and Amount Descriptions

Labels andAmount Descriptions
Cash paid for acquisition ofbuilding
Cash paid for dividends
Cash paid for merchandise
Cash paid for purchase ofequipment
Cash received from customers
Cash received from issuance ofbonds payable
Cash received from issuance ofcommon stock
Cash received from land sold
December 31, 2016
Decrease in accounts payable
Decrease in accountsreceivable
Decrease in cash
Decrease in inventories
Decrease in prepaid expenses
Decrease in salaries payable
Depreciation
For the Year Ended December 31,2016
Gain on sale of investments
Gain on sale of land
Increase in accounts payable
Increase in accountsreceivable
Increase in cash
Increase in inventories
Increase in prepaid expenses
Increase in salaries payable
Issuance of common stock foracquisition of building
Issuance of common stock forpurchase of equipment
Issuance of common stock to retirebonds
Loss on sale of investments
Loss on sale of land
Net cash flow from financingactivities
Net cash flow from investingactivities
Net cash flow from operatingactivities
Net cash flow used for financingactivities
Net cash flow used for investingactivities
Net cash flow used for operatingactivities
Net income
Net loss

Statement of Cash Flows

Whitman Co.

Statement of Cash Flows

1	Cash flows from operating activities:
2
3	Adjustments to reconcile net loss to net cash flow fromoperating activities:
4
5
6	Changes in current operating assets and liabilities:
7
8
9
10
11
12
13	Cash flows from investing activities:
14
15
16
17
18
19	Cash flows from financing activities:
20
21
22
23
24
25	Cash at the beginning of the year
26	Cash at the end of the year

olivedonkey543

Explain what a transaction is; analyze the impact of business transactions on accounts; record [journalize and post] transactions in the books; construct and use a trial balance) You are a Certified Public Accountant âStudentâs name, Certified Public Accountantâ, and operate as a professional corporation (P.C.). Your business completed these transactions during the first part of August 2016:

Aug. 1 The P.C. received $20,000 cash from you, and issued you common stock.

2 Paid monthly office rent, $800

3 Purchased a computer on account for $2,500, with the computer expected to remain in service for five years.

4 Purchased office furniture for cash, $5,000, with the furniture projected to last for five years.

5 Purchased supplies on account, $800.

9 Performed tax service for a client on account, $1,500.

15 Received and paid utility expenses, $350.

20 Preformed consulting services and received cash for the full amount of $1,800.

LO USING EXCEL:

1. Journalize the transaction. Explanations are not required.

2. Post to the T-accounts. Key all items by date and determine the ending balance in each account. Denote an account balance on August 20, 2016, as Bal.

3. Prepare a trial balance at August 20, 2016.

Journal

Date

ACCOUNT TITLES AND EXPLANATION

DEBIT

CREDIT

Aug 1

Req. 2
Cash				Accounts Receivable
Aug. 1
				Bal.

Bal.	-

Supplies				Equipment

Bal.				Bal.

Furniture				Accounts Payable


Bal.						Bal.	-

Common Stock				Service Revenue


		Bal.	-			Bal.	-

Rent Expense				Utilities Expense

Bal.	-			Bal.	-

Req. 3
Student's Name, Certified Public Accountant, P.C.
Trial Balance
August 20, 2016
ACCOUNT						DEBIT	CREDIT
Cash
Accounts receivable
Supplies
Equipment
Furniture
Accounts payable
Common stock
Dividends
Service revenue
Rent expense
Utilities expense
Salary expense
Total						$ -	$ -

plumleopard605

I have already answered questions 1 and 2, I don't need help with those. I posted those for the information in case you need it for the other questions.

[The following information applies to the questions displayed below.]

Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $10. At the start of January 2015, VGCâs income statement accounts had zero balances and its balance sheet account balances were as follows:


Cash	$	2,360,000
Accounts Receivable		152,000
Supplies		19,100
Equipment		948,000
Land		1,920,000
Building		506,000
Accounts Payable		109,000
Unearned Revenue		152,000
Notes Payable (due 2018)		80,000
Common Stock		2,200,000
Retained Earnings		3,364,100

In addition to the above accounts, VGCâs chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense.

Required:

1.	Analyze the effect of the January transactions (shown below) on the accounting equation, and indicate the account, amount, and direction of the effect (+ for increase and â for decrease) of each transaction. (Enter any decreases to account balances with a minus sign.)

a.	Received $52,250 cash from customers for subscriptions that had already been earned in 2014.
b.	Received $235,000 cash from Electronic Arts, Inc. for service revenue earned in January.
c.	Purchased 10 new computer servers for $41,900; paid $12,000 cash and signed a three-year note for the remainder owed.
d.	Paid $15,600 for an Internet advertisement run on Yahoo! in January.
e.	Sold 10,100 monthly subscriptions at $10 each for services provided during January. Half was collected in cash and half was sold on account.
f.	Received an electric and gas utility bill for $5,900 for January utility services. The bill will be paid in February.
g.	Paid $310,000 in wages to employees for work done in January.
h.	Purchased $5,100 of supplies on account.
i.	Paid $5,100 cash to the supplier in (h).

	Assets		=	Liabilities		+	Stockholdersâ Equity
a.	Cash	52,250
	Accounts Receivable	(52,250)
b.	Cash	235,000					Service Revenue	235,000
c.	Equipment	41,900
	Cash	(12,000)		Notes Payable (long-term)	29,900
d.	Cash	(15,600)					Advertising Expense	(15,600)
e.	Cash	50,500					Service Revenue	101,000
	Accounts Receivable	50,500
f.				Accounts Payable	5,900		Utilities Expense	(5,900)
g.	Cash	(310,000)					Salaries and Wages Expense	(310,000)
h.	Supplies	5,100		Accounts Payable	5,100
i.	Cash	(5,100)		Accounts Payable	(5,100)

2.	Prepare journal entries for the January transactions listed in part 1, using the letter of each transaction as a reference. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

No	Transaction	General Journal	Debit	Credit
1	a	Cash	52,250
1		Accounts Receivable		52,250

2	b	Cash	235,000
2		Service Revenue		235,000

3	c	Equipment	41,900
3		Cash		12,000
3		Notes Payable (long-term)		29,900

4	d	Advertising Expense	15,600
4		Cash		15,600

5	e	Cash	50,500
5		Accounts Receivable	50,500
5		Service Revenue		101,000

6	f	Utilities Expense	5,900
6		Accounts Payable		5,900

7	g	Salaries and Wages Expense	310,000
7		Cash		310,000

8	h	Supplies	5,100
8		Accounts Payable		5,100

9	i	Accounts Payable	5,100
9		Cash		5,100

3.	Create T-accounts, enter the beginning balances shown above, post the journal entries to the T-accounts, and show the unadjusted ending balances in the T-accounts.

4.	Prepare an unadjusted trial balance as of January 31, 2015.

VANISHING GAMES CORPORATION
Unadjusted Trial Balance
At January 31, 2015
Account Name	Debit	Credit
Cash
Accounts Receivable
Supplies
Equipment
Buildings
Land
Accounts Payable
Unearned Revenue
Notes Payable (long-term)
Common Stock
Retained Earnings
Service Revenue
Salaries and Wages Expense
Advertising Expense
Utilities Expense
Total	$0	$0

5.	Prepare an Income Statement for the month ended January 31, 2015, using unadjusted balances from part 4.

VANISHING GAMES CORPORATION
Income Statement
For the Month Ended January 31, 2015
Revenues

Service Revenue
Total Revenues
Expenses
Salaries and Wages Expense
Utilities Expense
Advertising Expense

Total Expenses
Net Income

Prepare a Statement of Retained Earnings for the month ended January 31, 2015, using the beginning balance given above and the net income from part 5. Assume VGC has no dividends.

VANISHING GAMES CORPORATION
Statement of Retained Earnings
For the Month Ended January 31, 2015
Retained Earnings, January 1, 2015
Add: Net Income
Less: Dividends
Retained Earnings, January 31, 2015	$0

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Accounting 580,000

	Sparkle Spa Corporation
	Transactions for 2015 and 2016
May 12, 2015	Provide service to customers on account	$80,000
August 19, 2015	Recieve cash from customers on account	$65,000
December 31, 2015	Estimated A/R that will not be received	20%
April 4, 2016	Provide service to customers on account	$73,000
June 22, 2016	Recieve cash from customers for services	$8,000
July 2, 2016	Finds out a customer who owed $2,000 now cannot pay his Account Recievable. So Sparkle Spa will write off this account	$2,000
October 19, 2016	Recieve cash from customers for services	$42,000
December31,2016	Estimated A/R that will not be received	20%

		Sparkle Spa Corporation
		2015 Journal Entries
Date	Account		Debit	Credit
May 12, 2015	Accounts Recievable
	Service Revenue
	Provide services on account.

Aug 19, 2015	Cash
	Accounts Recievableâ
	Recieve cash on account

Dec 31, 2015	Bad Debt Expense
	Allowance for Uncollectable Accounts
	Estimate future bad debts