ACC 3010
Project 2
Fall 2013
DUE Friday November 1, 2013– This project is due on November 1st before 4:00 pm and is to be submitted in the Accounting Lab – room 200 in the Rands House. The hours for submission of and help with the project will be posted on the class Blackboard site. You will sign your project in to create a record of its being submitted. Be sure your name and the name of your TA are on the front page of the project.
This project is a continuation of Project 1, FRM Consulting Inc. An additional 11 months have passed since Project 1 (we are now at June 30, 2013 the company’s yearend). The friends have expanded the shop to include sales of electronic tablets. The new company name is FRM Consulting & Sales Inc.
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Prepare the adjusting journal entry(s) necessary for uncollectible accounts expense using the aging of accounts receivable of accounting for bad debts as computed on the worksheet (these must be handwritten).The entry must be included with your other journal entries to receive credit.
5. Prepare any necessary adjusting entries to reflect the Inventory count at year end. These must be hand written.
6. Prepare the necessary closing entries (these must be handwritten).
7. Prepare the 3 financial statements for the year ended June 30, 2013 (multi step income statement, classified balance sheet, and statement of retained earnings). Even though you are preparing a multi-step income statement, you still need to list the various expenses individually on the income statement for consideration of full credit. These 3 statements must be typed. Also you must include appropriate dollar signs and appropriate underlines and correct formatting for the statements to receive full credit.
8. REQUIRED TO TURN IN (in this order): Typed multi-step income statement, Typed statement of retained earnings, Typed classified balance sheet, Typed Perpetual Inventory cards, Handwritten worksheet for uncollectible accounts expense calculations, and Handwritten June Journal Entries, the additional adjusting entries and all necessary closing entries. Be sure your name is on all pages.
Inventory Information
Inventory on hand at the beginning of June:
Units
Cost /
EBITDA - Earnings before interest, taxes, depreciation and amortization is an indicator of a company's financial performance which is calculated in the following manner: ("EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization Definition | Investopedia," n.d.)
1. A company’s ending accounts receivable balance and the period’s advertising expense would be found on which financial statements, respectively
1. For the year-end December 31, 2007, financial statements, what amount should M record as a liability?
a. Arrange the following asset, liability, and owner’s equity elements of the accounting equation: Cash, Accounts Receivable, Office Furniture, Van, Accounts Payable, Common Stock/Dividends, and Revenues/Expenses. (See Exhibit 1.5)
3) Prepare in proper and good form the multi-step Income Statement, Statement of Retained Earnings, and the classified Balance sheet for 20x3 and 20x4.
Answer each of the following questions on the peril of conflict and the promise of conflict resolution. Your answer to each item should be an essay of 350 to 800 words in length. (With a typical font and spacing, this comes to between 1½ and 3 pages.) It is recommended that you refer to outside sources as you consider these issues. Be sure to document your sources correctly.
At December 31, the amount of unused supplies on hand was determined by physical count to amount to $1,460. The proper adjusting entry would be: a. Debit Office Supplies Expense $1,460 and credit Office Supplies $1,460 b. Debit Accounts Payable $3,310 and credit Office Supplies $3,310 c. Debit Office Supplies $1,460 and credit Office Supplies Expense $1,460 d. Debit Office Supplies Expense $1,850 and credit Office Supplies $1,850 14. Which of the following statements about the closing process is correct: a. Balances in Income Statement accounts are reduced to zero b.
2. What are some characteristics that make capital budgeting different from other types of budgets (like a sales budget or cash budget)?
of cash flows. Since the income statement is based on the accrual method, net income
Required: a. Write journal entries for each accounting transaction in the space provided below (explanations for the journals are not necessary and you do not need to worry about any adjusting entries to be made at the end of October related to the transactions). 4 points each, 28 points. b. For each transaction, explain how the income statement could be affected. Specifically, what amount and under what category will be reported on the income statement. 2 points each, 14 points.
Consider the requirement for accurate, up to date financial records and comment on your group’s accounting practices.
Personal Financial Statement ............................................................................. 22 IX. Startup Expenses and Capitalization ................................................................ 23 X. Financial Plan ....................................................................................................... 24 XI. Appendices ........................................................................................................... 27
The four financial statements are: the balance sheet, the income statement, the statement of cash flows, and the statement of changes in shareholders’ equity. Financial are required to be audited by a neutral third party, who checks and ensures that the financial statements are prepared according to GAAP or accounting standards and that the information contained is reliable.
The formats of the Summary Statement of Income and departmental statements can of coursebe designed to provide only ODeamount column to record figures für the time period covered by the statement. While the primary purpose of any of these statements is to present the revenue and expenses für the most recent accounting period, the true significance of such amounts can only be fully understood when compared with budgets and/or the corresponding amounts für preceding periods. Accordingly, individual properties should modify the format of these statements to meet their needs ~nd requirements. For example, properties may find it useful to expand this ~asic