Financial Statements

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asignment

Team project- Comprehensive Computerized Financial Statement Project
Assigned Class 3-Due at Midnight on Wednesday
150 Points
Week 8
Objective: Learn to apply the Accounting you have learned, using Excel to report Financial
Statements.
Choosing a Team: Please form your own teams via the Discussion thread in week 2. Email the
instructor the final list of your team members.
New Company:
You will be starting a new company, and develop the mission, vision and goals. You will record
the beginning journal entries, develop an Income Statement, Balance Sheet and Statement of
Cash Flow in Excel. You will have entries for lease, accounting changes, prior period
adjustments, investments and discontinued operations.
Paper part:
In your paper, you will name the company, briefly list what the purpose of the company is (does
it manufacture a product or provide a service, and what kind?), list its mission, vision and goals
of the company.
Excel part:
In Excel, you will list at least 6 journal entries including issuing stock to start the company, a
lease, accounting change, 1 prior period adjustment and one discontinued operation, in Excel.
Come up with an Income Statement, Sheet and Statement of Cash Flow in Excel.
Extra Credit for Ratios- 3 points.
General:
Provide a minimum of three credible references (cite using APA).
Students will be graded on their ability to cite examples from the text or websites (except
Wikipedia). Students are to follow the strict guidelines for papers (which means all papers will
have three sections: Introduction, Analysis and Conclusion, and you can go slightly over 2
pages). All papers are to use APA standards(Title page, RUNNING Head, etc)
You will have 2 files to submit: 1 Word file and 1 Excel file.
You must upload your filesto Blackboard under Week3 Assignments. Go to the Assignment,
scroll down to “Attach Local File” and click Browse to select YOUR file, then hit SUBMIT

Sheet2

Jan. 1 Business License 377.14 Asset
Cash 377.14
(Bought Business License)
Jan. 2 Garmet Permit 249 Asset
Cash 249
(Permits bought)
Jan. 2 Corporation Permit 100 Asset
Cash 100
(Corporation Permit to raise stock)
Jan. 4 Cash 50,000
Common Stock 50,000 Asset
(issued 5000 shares @ $10.00)
Jan. 6 Equipment 4,500 Asset
Accounts payble - Serigraphie Boutique 4,500
(Lease press machine VAsTEX-V 2000HD on 5 year lease, 10%, no salvage value)
Jan. 6 Equipment 2,090 Asset
Cash 2,090
(Bought Dri-Vault Screen drying cabinet Product no.: 200033)
Jan. 6 Equipment 800 Asset
Cash 800
(Bought Washout booth Product no.: 120009)
Jan. 7 Rent expense - Jan2013 1,000 income (IC) 3
Cash 1,000
(leased Warehouse- 2 year contract)
Jan. 8 Supplies 500 Asset/inventory
Cash 500
(buy 2 ink sets for Textile printing - product no. 200. Est. 1000 prints)
Jan. 8 Raw material (hats 500 @ $2) 1,000 Asset/inventory
Raw material (T-shirts 2000 @ $1) 2,000 Asset/inventory
Raw material (Sweat-shirts 500 @ $5) 2,500 Asset/inventory
Cash 5,500
(buy plain hats, T-shirts & Sweat-shirts)
Jan. 8 Cash 5,000
Unearn Service Revenue 5,000 Liability
(Francessta shop Order 1: 500 T-shirts @ $10.00)
Feb. 5 Cash 3,000
Unearn Service Revenue 3,000 Liability
(Tessa school- Order 2: 200 Sweat shirts @ $15.00)
Feb. 7 Rent expense-Feb 2013 1000 IC 3
Cash 1000
Feb. 14 Unearn Service Revenue 5000
Revenue - printing service 5000 IC 1
Cost of Good Sold 750 IC 2
Raw material (500 blank t-shirts) 500 inventory
Printing supplies 250 inventory
(Fulfill order#1)
Mar. 1 Cash 250
Unearn Service Revenue 250 Liability
(Soccers stadium - Order 3: 50 hats @ $5.00)
Mar. 3 Unearn Service Revenue 3000
Revenue - printing service 3000 IC 1
Cost of Good Sold 1100 IC 2
Raw material (200 sweat-shirts) 1000
Printing supplies 100
(Fulfill order#2)
Mar. 7 Rent expense - Mar.2013 1000 IC 3
Cash 1000
Mar. 28 Investment 20000 Asset
Cash 20000
(Buy stock on Texana oil company 1000 shares)
Mar. 28 Cash 3000
Unearn Service Revenue 3000 Liability
(Tessa school- Order 4: 200 Sweat shirts @ $15.00)
Feb. 14 Unearn Service Revenue 250
Revenue - printing service 250 IC 1
Cost of Good Sold 125 IC 2
Raw material (50 hats) 100
Printing supplies 25
(Fulfill order#3)
Mar. 31 Interst expense - 1rst qtr 2013 112.5 IC 6
Accounts Payable - Serigraphie Boutique 375
Cash 487.5
(payment to Serifraphie Boutique for lease equipment)
Mar. 31 Equipment expense 375 IC 4
Accumulate Dep. 375
(Vastex V-2000HD)
Mar. 31 Equipment expense 52.25 IC 4
Accumulate Depreciation - no.: 200033 52.25
Mar. 31 Equipment expense 20 IC 4
Accumulated Depreciation- no.: 120009 20
Mar. 31 Accum. Depreciation (prod.no.1105) 67.5
Loss on disposal of prod no. 1105 22.5 IC 7
Equipment no. 1105 90
(Dispose of Screenprinting blade 85 shores. Product no. 1105 bought Jun.30 2012 est. one year life)

planning sheet

Type of business: Silk Screein Service Note Cost
production line: printing Logos, images
Products: T-shirt
Hats
Jackets
Sweatshirts
mouspad
bumper sticker
shower curtains
binder covers
office Rent
Startup Cost: 10,000.00 Estimate
Equipment-Vastex Printing machine V-2000 HD http://www.serigraphie-boutique.fr/Equipment-for-textile-printing/V-2000 4,500.00
screen
Screen Mesh
Ink degradant To break down and loosen emusion from screen mesh
Soft brush to clean screen mesh
degreaser to clean screen mesh
E-flash for "flashing" the colors
Coating "trough'' tray to hold liquid emusion
Liquid Emusion
Spray booth spray color
Drying machine Econo Red Drying the ink
Exposit ultraviolet screen
Vastex Registration System
Drying Cabinet
Transport vehicle: lease truck
Material (see supplies tab) starter kit $ 260.00

Accounts set up

Dues and Subscriptions:
• Franchise Tax Board
Ø Filing fees
 Also see if we need to decide if we want to sell online or sell to department stores:
• Vendor accounts
• Purchase
Ø Return purchase
• Accounts Payable
• Customer accounts
Revenue
• Printing Service
Ø UnEarn (deferred) revenue. 
• Sales
• ;Accounts Receivable
You will be starting a new company, and develop the mission, vision and goals. You will record
the beginning journal entries, develop an Income Statement, Balance Sheet and Statement of
Cash Flow in Excel. You will have entries for lease, accounting changes, prior period
adjustments, investments and discontinued operations.
In Excel, you will list at least 6 journal entries including issuing stock to start the company, a
lease, accounting change, 1 prior period adjustment and one discontinued operation, in Excel.
Come up with an Income Statement, Sheet and Statement of Cash Flow in Excel.
Extra Credit for Ratios- 3 points.

supplies

purchase order
http://www.serigraphie-boutique.fr/epages/62058141.sf/en_GB/?ObjectPath=/Shops/62058141/Categories/%22Kit%20Complet%20pour%20la%20s%C3%A9rigraphie%22

equipment

A Buisine. Printing supplies and equipment shop. Retrived from:
http://www.serigraphie-boutique.fr/epages/62058141.sf/en_GB/?ObjectPath=/Shops/62058141/Categories/%22Machines%20de%20s%C3%A9rigraphie%22/Carrousel_automatique
http://www.ebay.com/sch/i.html?_nkw=screen+t+shirt+printing
http://www.serigraphie-boutique.fr/Equipment-for-textile-printing/V-2000
http://www.serigraphie-boutique.fr/epages/62058141.sf/en_GB/?ObjectPath=/Shops/62058141/Categories/%22Machines%20de%20s%C3%A9rigraphie%22/Flasheur

Journal entries

Date Accounts and Explanation Debit Credit Accting code
Jan. 1 Business License 377.14 Asset
Cash 377.14 cash
(Bought Business License)
Jan. 2 Garmet Permit 249 Asset
Cash 249 cash
(Permits bought)
Jan. 2 Corporation Permit 100 Asset
Cash 100
(Corporation Permit to raise stock)
Jan. 4 Cash 30,000 cash
Common Stock 30,000 equity
(issued 600 shares @ $50.00)
Jan. 6 Equipment 4,500 PP&E
Accounts payble - Serigraphie Boutique 4,500 liability
(Lease press machine VAsTEX-V 2000HD on 5 year lease, 10%, no salvage value)
Jan. 6 Equipment 2,090 PP&E
Cash 2,090 cash
(Bought Dri-Vault Screen drying cabinet Product no.: 200033)
Jan. 6 Equipment 800 PP&E
Cash 800 cash
(Bought Washout booth Product no.: 120009)
Jan. 7 Rent expense - Jan2013 500 3
Cash 500 cash
(leased Warehouse- 2 year contract)
Jan. 8 Supplies 500 inventory
Cash 500 cash
(buy 2 ink sets for Textile printing - product no. 200. Est. 1000 prints)
Jan. 8 Raw material (hats 500 @ $2) 1,000 inventory
Raw material (T-shirts 1000 @ $1) 1,000 inventory
Raw material (Sweat-shirts 500 @ $5) 2,500 inventory
Cash 4,500 cash
(buy plain hats, T-shirts & Sweat-shirts)
Jan. 8 Cash 2,500 cash
Unearn Service Revenue 2,500 liability
(Francessta shop Order 1: 500 T-shirts @ $10.00)
Feb. 5 Cash 3,000 cash
Unearn Service Revenue 3,000 liability
(Tessa school- Order 2: 200 Sweat shirts @ $15.00)
Feb. 7 Rent expense-Feb 2013 500 3
Cash 500
Feb. 14 Unearn Service Revenue 2500 liability
Revenue - printing service 2500 1
Cost of Good Sold 750 2
Raw material (500 blank t-shirts) 500 inventory
Printing supplies 250 inventory
(Fulfill order#1)
Mar. 1 Cash 500 cash
Unearn Service Revenue 500 liability
(Little Soccers - Order 3: 50 hats @ $10.00)
Mar. 3 Unearn Service Revenue 3000 liability
Revenue - printing service 3000 1
Cost of Good Sold 1100 2
Raw material (200 sweat-shirts) 1000 inventory
Printing supplies 100 inventory
(Fulfill order#2)
Mar. 7 Rent expense - Mar.2013 500 3
Cash 500 cash
Mar. 28 Investment 10000 Asset
Cash 10000 cash
(short term investment - 10%)
Mar. 28 Cash 3000 cash
Unearn Service Revenue 3000 liability
(Tessa school- Order 4: 200 Sweat shirts @ $15.00)
Feb. 14 Unearn Service Revenue 250 liability
Revenue - printing service 250 1
Cost of Good Sold 125 2
Raw material (50 hats) 100 inventory
Printing supplies 25 inventory
(Fulfill order#3)
Mar. 31 Interst expense - 1rst qtr 2013 112.5 6
Accounts Payable - Serigraphie Boutique 375 liability
Cash 487.5 cash
(payment to Serifraphie Boutique for lease equipment)
Mar. 31 Equipment expense 375 4
Accumulate Dep. 375 PP&E
(Vastex V-2000HD)
Mar. 31 Equipment expense 52.25 4
Accumulate Depreciation - no.: 200033 52.25 PP&E
Mar. 31 Equipment expense 20 4
Accumulated Depreciation- no.: 120009 20 PP&E
Mar. 31 Accum. Depreciation (prod.no.1105) 67.5 PP&E
Loss on disposal of prod no. 1105 22.5 7
Equipment no. 1105 90 PP&E
(Dispose of Screenprinting blade 85 shores. Product no. 1105 bought Jun.30 2012 est. one year life)
Note #1 Financials are reported Quarterly & on accrual basis.
Note #2 Est.Equipment life 5 years. Straight line Depreciation method. All equipment data and supplies are from A Busine website http://www.serigraphie-boutique.fr/epages/62058141.sf/en_GB/?ObjectPath=/Shops/62058141/Categories (Pretend in Dollar and ignore delivery & sale tax)
Note #3 Account payble - Serigraphie Boutique (3 year/ 10%, payment made quarterly )
Note #4 Investment company name is ficticious
&C&"-,Bold"&16Journal

Income

PRINTESSENTIAL INC.
INCOME STATEMENT
FOR QUARTER ENDING MARCH 31, 2013
1 Revenues 8,000.00
2 Cost of good sold 1,850.00
Gross profit 6,150.00
3 Selling, General and Administrative expense 1,500.00
4 Depreciation/Armotization 447.25
Income from Operation 4,202.75
Other revenue and gains
5 Interest revenue 0 - 0
Other expenses & losses
6 Interest expense 112.5
7 Loss on disposal of starter kit. 22.5 135.00
Income from continuing operations before income tax 4,067.75
Income tax 1,627.10
Income from continuing operations 2,440.65
Discontinue operation
8 Income from Hat printing line, net of tax $50 75
9 Loss on disposal of Hat printing line, net of tax $0 900 825.00
Income before extra ordinary item 1,615.65
10 Extraordinary item - 0
Net income 1,615.65
Per share of common stock
income from continuing operation 4.07
income from operation of discontinued product line, net of tax 0.13
Loss on disposal of discontinued operation, net of tax 1.50
income before extra ordinary item 2.69
Extraordianry loss, net of tax - 0
Net income 2.69

Balance Sheet

Cash Flow