Financial Account Class Project

_mba5850_class_project_04-15-2017_.xlsx

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Journal Entries

#1	Prepare Income Statement & Balance Sheet for Previous Month.
#2	Record the Journal Extries for Current Month.
#3	Post your entires to the Gernral Ledger.
#4	Record your Total Debits and Credits befote your Adjusting Entries.
#5	Record your Adjusting Entries.
#6	Record your Total DR/CR for your Adjusted Trial Balance.
#7	Prepare Income Statement & Balance Sheet for Curent month.
#8	Calculate all the Financial Ratios on last tab.
	FINANCIAL TRANSACTION		GENERAL LEDGER ACCT	DR/(CR)
		Transaction Amount
1	The firm billed revenues on account.	$50,000
1.1	Every time a sale is recorded, you must also record the charge to COGS & Inv. Use 70% of sales.	Figure out.
2	The firm purchased new machinery with a long term bank loan.	$600,000
3	The firm redeemed investments for working capital (cash).	$100,000
4	The firm purchased inventory on account.	$200,000
5	The firm paid its 6 month premium for its car insurance policy.	$10,000
6	The firm paid its week 1 payroll.	$10,000
7	The firm purchased supplies on account.	$5,000
8	The firm decides to bring in more investors. Sells 100,000 shares for $20/sh. Par value = $1.	Figure out.
9	The firm decides to pay some of its notes payable. Also incurs an interest penalty.	$1,000,000
	penaty -->>	$5,000
10	The firm purchases inventory on accounnt from its vendors.	$400,000
11	The firm records week 2 sales. 90% on account. 10% in cash.	$180,000
12	CFO tells Accounting to make a payment on accounts payable.	$400,000
13	The firm pays its employees for week 2 work.	$12,000
14	Factory has a bad week. Some merchandise is returned.	$2,500
15	The firm pays all its quarterly taxes from the previous quarter.	Figure out.
ADJUSTING JOUNRAL ENTRIES
16	The office manager does a quick supply inventory audit. She calculates supplies have been used up.	$3,500
17	CFO tells you that all EQUIPMENT balance from last month should be depreciated using straigh line over 120 mos.	Figure out.
18	CFO tells you that all PLANT balance from last month should be depreciated using straigh line over 240 mos.	Figure out.
19	Some prepaid insurance was depleted during the month.	$3,000
20	2 days worth of salaries need to be accrued at the end of the month, to be paid next month.	$1,500
21	Bookkeeper forgot to record Week 3 and Week 4 sales. No cash sales for week 3 and 4.	$138,000
22	Don't forget to record the COGS impact on the above sales transactions.	Figure out.
23	Bookeeper forgot to record Repairs & Maintenance for the month. Paid with cash.	$1,800
24	Credit card fees of 2% of sales (for the month) were erroneously recorded to the sales account. Need JE to correct.	Figure out.
	HINT: Credit should be applied to the asset account impacted when sales are recorded.
25	Utilitiy expense invoice was found in the bookeeper drawer. Bill paid immediately.	$28,000
26	Final entry of the month is to accrue a 30% corporarte tax on the pretax income for the month.	Figure out.

General Ledger

Company General Ledger
SHORT TERM ASSETS		LONG TERM ASSETS		LIABILITIES		EQUITY		REVENUES		EXPENSES
Cash		Property		Accounts Payable		Common Stock		Sales Revenue		COGS
50,000		2,500,000			(560,000)		(139,000)		(1,600,000)	800,000
50,000	- 0	2,500,000	- 0	- 0	(560,000)	- 0	(139,000)	- 0	(1,600,000)	800,000	- 0
50,000		2,500,000			(560,000)		(139,000)		(1,600,000)	800,000
Investments		Plant		Salaries Payable		Paid In Capital		Sales Discounts		Salaries Expense
854,000		1,800,000			(210,000)		(200,000)	20,000		225,000
854,000	- 0	1,800,000	- 0	- 0	(210,000)	- 0	(200,000)	20,000	- 0	225,000	- 0
854,000		1,800,000			(210,000)		(200,000)	20,000		225,000
Accounts Receivable		Equipment		Uneraned Revenue		Preferred Stock		Refunds		Taxes Expense
350,000		750,000			(25,000)		(300,000)	10,000		50,000
350,000	- 0	750,000	- 0	- 0	(25,000)	- 0	(300,000)	10,000	- 0	50,000	- 0
350,000		750,000			(25,000)		(300,000)	10,000		50,000
Inventory		Accumulated Depreciation		Taxes Payable		Treasury Stock		Credit Card Fees		Prepaid Expense
180,000			(450,000)		(75,000)	50,000		6,000		18,000
180,000	- 0	- 0	(450,000)	- 0	(75,000)	50,000	- 0	6,000	- 0	18,000	- 0
180,000			(450,000)		(75,000)	50,000		6,000		18,000
Prepaid Expenses		Goodwill		Notes Payable		Retained Earnings				Depreciation Expense
15,000		300,000			(2,000,000)		(2,550,000)			40,000
15,000	- 0	300,000	- 0	- 0	(2,000,000)	- 0	(2,550,000)			40,000	- 0
15,000		300,000			(2,000,000)		(2,550,000)			40,000
Supplies										Interest Expense
6,000										50,000
6,000	- 0									50,000	- 0
6,000										50,000
										Repairs & Maintence
										5,000
										5,000	- 0
										5,000
										Utility Expense
										20,000
										20,000	- 0
										20,000
										Insurance Expense
										10,000
										10,000	- 0
										10,000

Trial Balance

Trial Balance
	Previous Month		Current Month		Increase / Decrease
G/L ACCOUNT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
Cash	50,000		50,000		- 0
Investments	854,000		854,000		- 0
Accounts Receivable	350,000		350,000		- 0
Inventory	180,000		180,000		- 0
Prepaid Expenses	15,000		15,000		- 0
Supplies	6,000		6,000		- 0
Property	2,500,000		2,500,000		- 0
Plant	1,800,000		1,800,000		- 0
Equipment	750,000		750,000		- 0
Accumulated Depreciation		(450,000)		(450,000)		- 0
Goodwill	300,000		300,000		- 0
Accounts Payable		(560,000)		(560,000)		- 0
Salaries Payable		(210,000)		(210,000)		- 0
Uneraned Revenue		(25,000)		(25,000)		- 0
Taxes Payable		(75,000)		(75,000)		- 0
Notes Payable		(2,000,000)		(2,000,000)		- 0
Common Stock		(139,000)		(139,000)		- 0
Paid In Capital		(200,000)		(200,000)		- 0
Preferred Stock		(300,000)		(300,000)		- 0
Treasury Stock	50,000		50,000		- 0
Retained Earnings		(2,550,000)		(2,550,000)		- 0
Sales Revenue		(1,600,000)		(1,600,000)		- 0
Sales Discounts	20,000		20,000		- 0
Refunds	10,000		10,000		- 0
Credit Card Fees	6,000		6,000		- 0
COGS	800,000		800,000		- 0
Salaries Expense	225,000		225,000		- 0
Taxes Expense	50,000		50,000		- 0
Prepaid Expense	18,000		18,000		- 0
Depreciation Expense	40,000		40,000		- 0
Interest Expense	50,000		50,000		- 0
Repairs & Maintence	5,000		5,000		- 0
Utility Expense	20,000		20,000		- 0
Insurance Expense	10,000		10,000		- 0
Total Debits + Credits	8,109,000	(8,109,000)	8,109,000	(8,109,000)	- 0	- 0
Variance
Total Assets	6,355,000
Total L+E+NI	(6,355,000)
Net Income	(346,000)

Financial Statements

Instructions and Guidance
1. Prepare Your Balance Sheet Below and Income Statement Below.
2. You must use ALL General Ledger accounts in both financial statements.
3. You can insert as many lines as you want. Make sure summing equaitions are correct.
4. Remember all of your data for these financial statements will come from your Trial Balance.
Company XYZ
Balance Sheet
As of November 30, 2016
		Previous Balance	Current Balance	Increase/ Decrease
	Cash
	Total Assets
	Total Liabs + Equity
Company XYZ
Income Statement
For the Period Oct 31 to Nov 30, 2016
		YTD Previous Balance	Current Balance	Increase/ Decrease
	Sales
	Net Income

Fin Ratios

Givens	Common Shares O/S	100,000	120,000
	Employees	10	11
	Stock Price	$ 60.00	$ 65.00
	Annual Dividend	$ 2.00	$ 2.00
Company XYZ
Financial Ratios
As of November 30, 2016
		Previous	Current	Change
	Current Ratio
	Quick Ratio
	Accounts Receivabe Days
	Accounts Receivable Turnover
	Inventory Days
	Inventory Turnover
	Revenues / Plant & Equipment
	Return on Assets
	Total Asset Turnover
	Rev / Employee
	Net Income / Employee
	Accounts Payable Days
	Avg Interest Rate
	Debt Ratio
	Equity Ratio
	Return on Equity
	COGS Ratio
	Gross Profit Margin
	Oper Exp Ratio
	Operating Profit Margin
	Net Profit Margin
	Earnings per Share
	Price / Earnings Ratio
	Book Value / Share
	Market / Book Ratio
	Market Capitalization
	Dividend Yield
	Dividend Payout Ratio