Using the data provided,please prepare a trial balance, an income statement, a statement ofchanges in owner's equity and a balance sheet. First, set up yourtrial balance by putting the accounts in the proper order, nextenter the amounts in the proper column and then input a formula tototal the columns. Begin by creating a trialbalance in the correct order. Then create the income statement, astatement of changes in owners equity and a balance sheet usingcell reference for the amounts. In the cell that you want theamount to appear, be sure to put the cell reference from the amounton the trial balance. Therefore, EVERY data entry (amount) into thefinancial statements will be a cell reference or a formula. (35points) Accounts payable 45 Accounts receivable 57 Accumulated depreciation 50 Cash 10 Depreciationexpense 5 Drawing 7 Equipment 100 Insuranceexpense 1 PrepaidInsurance 5 Repairexpense 2 Owners Equity(beginning) 50 Salariesexpense 10 Salaries payable 30 Service revenue 25 Utilitiesexpense 3
Using the data provided,please prepare a trial balance, an income statement, a statement ofchanges in owner's equity and a balance sheet. First, set up yourtrial balance by putting the accounts in the proper order, nextenter the amounts in the proper column and then input a formula tototal the columns. | ||
Begin by creating a trialbalance in the correct order. Then create the income statement, astatement of changes in owners equity and a balance sheet usingcell reference for the amounts. In the cell that you want theamount to appear, be sure to put the cell reference from the amounton the trial balance. Therefore, EVERY data entry (amount) into thefinancial statements will be a cell reference or a formula. (35points) | ||
Accounts payable | 45 | |
Accounts receivable | 57 | |
Accumulated depreciation | 50 | |
Cash | 10 | |
Depreciationexpense | 5 | |
Drawing | 7 | |
Equipment | 100 | |
Insuranceexpense | 1 | |
PrepaidInsurance | 5 | |
Repairexpense | 2 | |
Owners Equity(beginning) | 50 | |
Salariesexpense | 10 | |
Salaries payable | 30 | |
Service revenue | 25 | |
Utilitiesexpense | 3 |
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You have been hired as an accountantfor B&G Co., a corporation performing diverse consultingservices in Detroit, Michigan. B&G Co. prepares financialstatements on monthly bases.
ProjectScope: You are to record the transactions forDecember, prepare the monthly adjustments, and prepare thefinancial statements using the Excel workbook provided. Then youwill close the fiscal year and prepare the books for next year.
Directions: The assignment encompasses twofiles: Directions and Transactions (this Word document)and Forms (a separate Excel workbook). Your solutionshould be worked in Excel and the completed Excel workbooksubmitted for grading.
You should use Excel formula whereappropriate and cell references to carry forward values and numbersbetween worksheets within the workbook. Simply typing values inExcel will result in a reduced score, even if the correctsolution is provided. You should use formula whereverpossible.
Analyze the narrative to prepare and record the transactions forDecember to the General Journal.
Post the journal entries to ledger accounts using T-accounts(Donât forget the opening balances from the information given onthe post-closing trial balance on Nov. 30th.)
Prepare Income Statement and the Retained Earnings Statement forthe month ended December 31, 2016 and Balance Sheet as of December31, 2016 in good forms. Use the multi-step format for the IncomeStatement.
Close the temporary accounts, posting any net income or loss toretained earnings.
Due Date: Dec.8th.
Transactionsin December 2016:
Dec. | 1 | The equipment was completely destroyed by the regional earthquake. âLoss by earthquakeâ was recognized. |
1 | Lent cash to another company and received a 2 year, $20,000zero-interest-bearing note. The market rate of interest for a noteof similar risk is 9 percent. | |
1 | Purchased new equipment that costs $12,000 and issued 1,000shares of common stock (no-par stock) to the equipment seller. | |
3 | Cash payment on accounts payable amounted to $6,000. | |
4 | Sold land for $13,000 cash. | |
10 | Collected $15,000 as payment for amounts previously billed(suppose the payment was made within the discount period). | |
13 | One of the customers went bankrupt. B&G wrote off $2,000account receivable. | |
15 | Paid monthly salaries of $20,000 to employees | |
16 | Issued 1,000 shares of preferred stock at $10 per share | |
17 | Purchased 500 shares of ABC corporationâs common stock at $15(per share) and classify the securities as available-for-salessecurities | |
20 | Found that the company incorrectly overstated its Novemberaccount receivable and sales revenue by $1,000 and made a journalentry to correct the error. | |
29 | Performed services for a customer for $30,000 cash | |
30 | Performed $30,000 services on account with the following terms:2/15, n/30. B&G records credit sales using the net method | |
31 | Dividends of $5,000 were declared and paid. $ 1,025 is paid topreferred stockholders and the rest is paid to the common stockholders. | |
31 | ABC corporation declared $ 5 dividend per share (to common stockholders). It will be paid in 2017. |
* Additional information
1. Ignoretax effect.
2. Salariesexpenses incurred but not paid prior to Dec. 31sttotaled $10,500.
3. Thecompany received the bill for utility services (electricity) thatthe firm used during December in the amount of $6,000. The companywill pay the bill in Jan. 2016.
4. $3,000 ofsupplies remained at the end of December.
5. Thecompany use the âAllowanceâ method for possible accounts receivablewrite-offs in the future and estimated that 5% of the outstandingaccount receivable will not be collected.
6. The equipmentpurchased on Dec. 1st depreciates $200 per month.
7. Thecommon stock price of ABC Corporation on December 31st is still $15 per share.