Bus Adm-201 A+ rated
copzelBus Adm-201 Fall 2013 EXTRA CREDIT TWO Due in DS week of November 18
GRADING: Worth 15 points. Partially completed problems will not be accepted. If you complete all items requested, you will earn at least 5 points. The remaining points are dependent on accuracy of your answers!
Green Bay Konkers Corporation prepares quarterly financial statements. The balance sheet at 12/31/13 is presented below.
|
| Balance Sheet |
|
|
|
| 12/31/2013 |
|
|
Cash | $ 26,500 |
| Accounts payable | $ 36,200 |
Accounts receivable | 22,300 |
| Common stock | 130,000 |
Allowance for doubtful accounts | (2,000) |
| Retained earnings | 50,600 |
Equipment | 35,000 |
|
|
|
Accumulated depreciation - equipment | (25,000) |
|
|
|
Land | 40,000 |
|
|
|
Building | 160,000 |
|
|
|
Accumulated depreciation - building | (40,000) |
|
|
|
| $ 216,800 |
|
| $216,800 |
During the first quarter of 2014, the following transactions occurred: |
1. Green Bay Konkers performed services during the first quarter for $162,000 on account. |
2. On 2/1/14, Green Bay Konkers collected fees of $18,000 in advance for $1,500 of services to be performed each month from 2/1/14 to 1/30/15. |
3. On 2/1/14, Green Bay Konkers purchased computer equipment for $15,000 plus sales taxes of $750. $5,000 cash was paid with the rest on account. Check #455 was used. |
4. Green Bay Konkers collected $151,000 on 3/5/14 from customers on account. |
5. Green Bay Konkers paid $42,300 on accounts payable. Check #456 was used. |
6. Paid other operating expenses of $105,230. Check #457 was used. |
7. Acquired a patent with a 10-year life for $12,000 cash on 3/1/14. Check #458 was used. |
8. Wrote off a customer receivable of $500 who went bankrupt. |
9. On 3/31/14, Green Bay Konkers sold for $2,780 cash equipment which originally cost $16,000. It had an estimated life of 5 years and salvage of $1,000. Accumulated depreciation as of 12/31/13 was $13,500 using the straight line method. Record depreciation on the equipment sold, then record the sale. |
10. AJE 3/31/14: Record revenue earned from item 2 above. |
11. AJE 3/31/14: $27,800 of accounts receivable at 3/31/14 are not due yet. The bad debt percentage for these is 5%. The balance of A/R are past due. The bad debt percentage for these is 48.5%. Record bad debt expense. HINT: You will need to compute the balance in accounts receivable and the unadjusted allowance for doubtful accounts before calculating this. |
12. AJE 3/31/14: Depreciation is recorded on the equipment still owned at 3/31/14. The new equipment purchased in February is being depreciated on a double declining basis over 5 years and salvage value was estimated at $2,000. The old equipment still owned is being depreciated over a 10 year life using straight line with no salvage value. |
13. AJE 3/31/14: Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $10,000. |
14. AJE 3/31/14: Amortization is recorded on the patent. |
15. The company reconciles its bank statement every quarter. Information from the 12/31/13 Bank Reconciliation is: Deposit in transit: 12/30/08 $1,000 Outstanding Checks #440 2,345 #452 2,030 #453 890 #454 6,555 The Bank statement received for the quarter ended 3/31/14 is as follows: Beginning balance per bank $ 37,320 Deposits: 1/2/14 $1,000, 2/2/14 $18,000, 3/6/14 $151,000 170,000 Checks: #452 $2,030, #453 $890, #456 $42,300, #457 $105,230 (150,450) Debit memo: Bank service charge (Record as operating expense) ( 75) Ending bank balance $ 56,795 |
16. AJE: The income tax rate is 30%. This amount will be paid when the tax return is due in April. Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount. |
REQUIRED: Print out the solution pages for the general ledger, journal and worksheet that follow and enter the following transactions. I suggest that you use a pencil.
- Enter the transactions 1-9 in the general journal provided on the following pages.
- Enter the 12/31/13 balances in ledger accounts. Use the ledger account running balance format accounts provided on the following pages.
- Post the journal entries to the ledger accounts for items 1 – 9.
- Prepare an unadjusted trial balance at March 31 and enter on the worksheet. Then complete the other worksheet columns. (See below.)
Worksheet requirement: Using your unadjusted trial balance above and the data for adjusting entries, prepare a 10 column worksheet similar to the one in the chapter 4 appendix of your text.
- Prepare a bank reconciliation in good form. (Item 15 above.) Use your own paper. Record the necessary AJE.
- Journalize and post all other adjusting entries. (Items 10 - 16)
- Prepare an income statement and a retained earnings statement for the quarter ended 3/31/14 and a classified balance sheet at 3/31/14. Use your own paper. (No formatted sheets are supplied as we did for the other items.)
EXTRA CREDIT TWO SOLUTION – Name ________________________
DS ____________
Part a, e and f
Extra Credit 2 – General Journal | Debit | Credit | ||
a.1. |
|
|
|
|
|
|
|
|
|
a.2. |
|
|
|
|
|
|
|
|
|
a.3. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.4. |
|
|
|
|
|
|
|
|
|
a.5. |
|
|
|
|
|
|
|
|
|
a.6. |
|
|
|
|
|
|
|
|
|
a.7. |
|
|
|
|
|
|
|
|
|
a.8. |
|
|
|
|
|
|
|
|
|
a.9. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.10. |
|
|
|
|
|
|
|
|
|
a.11. |
|
|
|
|
|
|
|
|
|
a.12. |
|
|
|
|
|
|
|
|
|
a.13. |
|
|
|
|
|
|
|
|
|
a.14. |
|
|
|
|
|
|
|
|
|
a.15. |
|
|
|
|
|
|
|
|
|
a.16. |
|
|
|
|
|
|
|
|
|
Part b, c and d
|
General Ledger
|
|
|
|
b. | CASH | DR | CR | BALANCE |
| Beginning |
|
|
|
| item 2 |
|
|
|
| item 3 |
|
|
|
| item 4 |
|
|
|
| item 5 |
|
|
|
| item 6 |
|
|
|
| item 7 |
|
|
|
| item 9 |
|
|
|
|
Item 15 |
|
|
|
|
|
|
|
|
b. | ACCOUNTS RECEIVABLE | DR | CR | BALANCE |
| Beginning |
|
|
|
| item 1 |
|
|
|
| item 4 |
|
|
|
| item 8 |
|
|
|
|
|
|
|
|
b. | ALLOW FOR DOUBTFUL ACCTS | DR | CR | BALANCE |
| Beginning |
|
|
|
| item 8 |
|
|
|
| item 11 |
|
|
|
|
|
|
|
|
b. | EQUIPMENT | DR | CR | BALANCE |
|
Beginning |
|
|
|
| Item 3 |
|
|
|
| Item 9 |
|
|
|
|
|
|
|
|
b. | ACCUM DEPR EQUIPMENT | DR | CR | BALANCE |
|
Beginning |
|
|
|
|
item 9 |
|
|
|
|
item 9 |
|
|
|
|
Item 12 |
|
|
|
|
|
|
|
|
b. | LAND | DR | CR | BALANCE |
| Beginning |
|
|
|
|
|
|
|
|
b. | BUILDING | DR | CR | BALANCE |
| Beginning |
|
|
|
|
|
|
|
|
b. | ACCUM DEPR BUILDING | DR | CR | BALANCE |
| Beginning |
|
|
|
| item 13 |
|
|
|
|
|
|
|
|
b. | PATENTS | DR | CR | BALANCE |
| item 7 |
|
|
|
| item 14 |
|
|
|
|
|
|
|
|
b. | ACCOUNTS PAYABLE | DR | CR | BALANCE |
| Beginning |
|
|
|
| item 3 |
|
|
|
| item 5 |
|
|
|
|
|
|
|
|
b. | UNEARNED REVENUE | DR | CR | BALANCE |
| item 2 |
|
|
|
|
item 10 |
|
|
|
|
|
|
|
|
b. | INCOME TAXES PAYABLE | DR | CR | BALANCE |
| item 16 |
|
|
|
|
|
|
|
|
b. | COMMON STOCK | DR | CR | BALANCE |
| Beginning |
|
|
|
|
|
|
|
|
b. | RETAINED EARNINGS | DR | CR | BALANCE |
| Beginning |
|
|
|
|
|
|
|
|
b. | SERVICE REVENUE | DR | CR | BALANCE |
| item 1 |
|
|
|
| item 10 |
|
|
|
|
|
|
|
|
b. | OPERATING EXPENSES | DR | CR | BALANCE |
| item 6 |
|
|
|
|
Item 15 |
|
|
|
|
|
|
|
|
b. | DEPRECIATION EXPENSE | DR | CR | BALANCE |
| item 9 |
|
|
|
| item 12 |
|
|
|
| item 13 |
|
|
|
|
|
|
|
|
b. | AMORTIZATION EXPENSE | DR | CR | BALANCE |
| item 14 |
|
|
|
|
|
|
|
|
b. | GAIN ON DISPOSAL | DR | CR | BALANCE |
| item 9 |
|
|
|
|
|
|
|
|
b. | BAD DEBT EXPENSE | DR | CR | BALANCE |
| item 11 |
|
|
|
|
|
|
|
|
b. | INCOME TAX EXPENSE | DR | CR | BALANCE |
| item 16 |
|
|
|
Answer: https://www.homeworktiger.com/solution-info/1022/Bus-Adm-201-A-rated-
10 years ago
Green Bay Konkers Corporation prepares quarterly financial statements. The balance
NOT RATED13 years ago
