Financial account Class Project make correction

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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 Accounts Receivable 50,000 Dr
Sales Revenue 50,000 Cr
1.1 Every time a sale is recorded, you must also record the charge to COGS & Inv. Use 70% of sales. Figure out. COGS 35,000 Dr
Inventory 35,000 Cr
2 The firm purchased new machinery with a long term bank loan. $600,000 Plant 600,000 Dr
Notes Payable 600,000 Cr
3 The firm redeemed investments for working capital (cash). $100,000 Investments 100,000 Dr
Cash 100,000 Cr
4 The firm purchased inventory on account. $200,000 Inventory 200,000 Dr
Accounts Payable 200,000 Cr
5 The firm paid its 6 month premium for its car insurance policy. $10,000 Insurance Expense 10,000 Dr
Cash 10,000 Cr
6 The firm paid its week 1 payroll. $10,000 Salaries Expense 10,000 Dr
Cash 10,000 Cr
7 The firm purchased supplies on account. $5,000 Supplies 5,000 Dr
Accounts Payable 5,000 Cr
8 The firm decides to bring in more investors. Sells 100,000 shares for $20/sh. Par value = $1. Figure out. Cash 2,000,000 Dr
Common Stock 100,000 Cr
Paid In Capital 1,900,000 Cr
9 The firm decides to pay some of its notes payable. Also incurs an interest penalty. $1,000,000 Notes Payable 1,000,000 Dr
penaty -->> $5,000 Interest Expense 5,000 Dr
Cash 1,005,000 Cr
10 The firm purchases inventory on accounnt from its vendors. $400,000 Inventory 400,000 Dr
Accounts Payable 400,000 Cr
11 The firm records week 2 sales. 90% on account. 10% in cash. $180,000 Cash 18,000 Dr
Accounts Receivable 162,000 Dr
Sales Revenue 180,000 Cr
12 CFO tells Accounting to make a payment on accounts payable. $400,000 Accounts Payable 400,000 Dr
Cash 400,000 Cr
13 The firm pays its employees for week 2 work. $12,000 Salaries Expense 12,000 Dr
Cash 12,000 Cr
sales returns
14 Factory has a bad week. Some merchandise is returned. $2,500 Inventory 2,500 Dr $4,250
COGS 2,500 Cr
15 The firm pays all its quarterly taxes from the previous quarter. Figure out. Taxes Payable 75,000 Dr
Cash 75,000 Cr
ADJUSTING JOUNRAL ENTRIES
16 The office manager does a quick supply inventory audit. She calculates supplies have been used up. $3,500 Supplies 3,500 Dr
Supplies 3,500 Cr
17 CFO tells you that all EQUIPMENT balance from last month should be depreciated using straigh line over 120 mos. Figure out. Depreciation Expense 6,250 Dr
Accumulated Depreciation 6,250 Cr
18 CFO tells you that all PLANT balance from last month should be depreciated using straigh line over 240 mos. Figure out. Depreciation Expense 7,500 Dr
Accumulated Depreciation 7,500 Cr
19 Some prepaid insurance was depleted during the month. $3,000 Insurance Expense 3,000 Dr
Prepaid Expenses 3,000 Cr
20 2 days worth of salaries need to be accrued at the end of the month, to be paid next month. $1,500 Salaries Expense 1,500 Dr
Salaries Payable 1,500 Cr
21 Bookkeeper forgot to record Week 3 and Week 4 sales. No cash sales for week 3 and 4. $138,000 Accounts Receivable 138,000 Dr
Sales Revenue 138,000 Cr
22 Don't forget to record the COGS impact on the above sales transactions. Figure out. COGS 96,600 Dr
Inventory 96,600 Cr
23 Bookeeper forgot to record Repairs & Maintenance for the month. Paid with cash. $1,800 Repairs & Maintence 1,800 Dr 368
Cash 1,800 Cr 7.31
7310
24 Credit card fees of 2% of sales (for the month) were erroneously recorded to the sales account. Need JE to correct. Figure out. Sales Revenue 7,000 Dr
HINT: Credit should be applied to the asset account impacted when sales are recorded. Credit Card Fees 7,000 Dr
25 Utilitiy expense invoice was found in the bookeeper drawer. Bill paid immediately. $28,000 Utility Expense 28,000 Dr
Cash 28,000 Cr
26 Final entry of the month is to accrue a 30% corporarte tax on the pretax income for the month. Figure out. Taxes Expense 22,500 Dr
Taxes Payable 22,500 Cr

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 (100,000) 2,500,000 400,000 (560,000) (139,000) 7,000 (1,600,000) 800,000 (2,500)
100,000 (10,000) (200,000) (100,000) 4,250 (50,000) 35,000
2,000,000 (1,005,000) (5,000) (180,000) 96,600
18,000 (400,000) (400,000) (138,000)
(12,000)
(75,000)
(1,800)
(28,000)
2,168,000 (1,631,800) 2,500,000 - 0 400,000 (1,165,000) - 0 (239,000) 11,250 (1,968,000) 931,600 (2,500)
536,200 2,500,000 (765,000) (239,000) (1,956,750) 929,100
Investments Plant Salaries Payable Paid In Capital Sales Discounts Salaries Expense
854,000 1,800,000 (210,000) (200,000) 20,000 225,000 (12,000)
100,000 600,000 (1,500) (1,900,000) 10,000
1,500
954,000 - 0 2,400,000 - 0 - 0 (211,500) - 0 (2,100,000) 20,000 - 0 236,500 (12,000)
954,000 2,400,000 (211,500) (2,100,000) 20,000 224,500
Accounts Receivable Equipment Uneraned Revenue Preferred Stock Refunds Taxes Expense
350,000 750,000 (25,000) (300,000) 10,000 1,750 50,000
50,000 22,500
162,000
138,000
700,000 - 0 750,000 - 0 - 0 (25,000) - 0 (300,000) 10,000 1,750 72,500 - 0
700,000 750,000 (25,000) (300,000) 11,750 72,500
Inventory Accumulated Depreciation Taxes Payable Treasury Stock Credit Card Fees Prepaid Expense
180,000 (35,000) (450,000) 75,000 (75,000) 50,000 6,000 18,000
200,000 (96,600) (6,250) (22,500) 7,000
400,000 (7,500)
2,500
782,500 (131,600) - 0 (463,750) 75,000 (97,500) 50,000 - 0 13,000 - 0 18,000 - 0
650,900 (463,750) (22,500) 50,000 13,000 18,000
Prepaid Expenses Goodwill Notes Payable Retained Earnings Depreciation Expense
15,000 (3,000) 300,000 1,000,000 (2,000,000) (2,550,000) 40,000
(600,000) 6,250
7,500
15,000 (3,000) 300,000 - 0 1,000,000 (2,600,000) - 0 (2,550,000) 53,750 - 0
12,000 300,000 (1,600,000) (2,550,000) 53,750
Supplies Interest Expense
6,000 (3,500) 50,000
5,000 5,000
11,000 (3,500) 55,000 - 0
7,500 55,000
Repairs & Maintence
5,000
1,800
6,800 - 0
6,800
Utility Expense
20,000
28,000
48,000 - 0
48,000
Insurance Expense
10,000
10,000
3,000
23,000 - 0
23,000

Trial Balance

Trial Balance
Previous Month Current Month Increase / Decrease
G/L ACCOUNT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
Cash 50,000 536,200 486,200
Investments 854,000 954,000 100,000
Accounts Receivable 350,000 700,000 350,000
Inventory 180,000 650,900 470,900
Prepaid Expenses 15,000 12,000 (3,000)
Supplies 6,000 7,500 1,500
Property 2,500,000 2,500,000 - 0
Plant 1,800,000 2,400,000 600,000
Equipment 750,000 750,000 - 0
Accumulated Depreciation (450,000) (463,750) (13,750)
Goodwill 300,000 300,000 - 0
Accounts Payable (560,000) (765,000) (205,000)
Salaries Payable (210,000) (211,500) (1,500)
Uneraned Revenue (25,000) (25,000) - 0
Taxes Payable (75,000) (22,500) 52,500
Notes Payable (2,000,000) (1,600,000) 400,000
Common Stock (139,000) (239,000) (100,000)
Paid In Capital (200,000) (2,100,000) (1,900,000)
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) (1,956,750) (356,750)
Sales Discounts 20,000 20,000 - 0
Refunds 10,000 11,750 1,750
Credit Card Fees 6,000 13,000 7,000
COGS 800,000 929,100 129,100
Salaries Expense 225,000 224,500 (500)
Taxes Expense 50,000 72,500 22,500
Prepaid Expense 18,000 18,000 - 0
Depreciation Expense 40,000 53,750 13,750
Interest Expense 50,000 55,000 5,000
Repairs & Maintence 5,000 6,800 1,800
Utility Expense 20,000 48,000 28,000
Insurance Expense 10,000 23,000 13,000
Total Debits + Credits 8,109,000 (8,109,000) 10,336,000 (10,233,500) 2,227,000 (2,124,500)
Variance
Total Assets 8,346,850
Total L+E+NI (8,244,350)
Net Income (481,350)

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 50,000 536,200 486,200
Investments 854,000 954,000 100,000
Accounts Receivable 350,000 700,000 350,000
Inventory 180,000 650,900 470,900
Prepaid Expenses 15,000 12,000 (3,000)
Supplies 6,000 7,500 1,500
Property 2,500,000 2,500,000 - 0
Plant 1,800,000 2,400,000 600,000
Equipment 750,000 750,000 - 0
Treasury Stock 50,000 50,000 - 0
Total Assets 6,555,000 8,560,600 2,005,600
Accumulated Depreciation (450,000) (463,750) (13,750)
Accounts Payable (560,000) (765,000) (205,000)
Salaries Payable (210,000) (211,500) (1,500)
Uneraned Revenue (25,000) (25,000) - 0
Taxes Payable (75,000) (22,500) 52,500
Notes Payable (2,000,000) (1,600,000) 400,000
Common Stock (139,000) (239,000) (100,000)
Paid In Capital (200,000) (2,100,000) (1,900,000)
Preferred Stock (300,000) (300,000) - 0
Retained Earnings (2,550,000) (2,550,000) - 0
Total Liabs + Equity (6,509,000) (8,276,750) (1,767,750)
Company XYZ
Income Statement
For the Period Oct 31 to Nov 30, 2016
YTD Previous Balance Current Balance Increase/ Decrease
Sales (1,600,000) (1,956,750) -356750 increase
Sales Discounts 20,000 20,000 0
Refunds 10,000 11,750 1750
Credit Card Fees 6,000 13,000 7000 increase
COGS 800,000 929,100 129100 increase
Penalty Expense - 0 5,000 5000 increase
Salaries Expense 225,000 224,500 -500 decrease
Taxes Expense 50,000 72,500 22500 increase
Prepaid Expense 18,000 18,000 0
Depreciation Expense 40,000 53,750 13750 increase
Interest Expense 50,000 55,000 5000 increase
Repairs & Maintence 5,000 6,800 1800 increase
Utility Expense 20,000 48,000 28000 increase
Insurance Expense 10,000 23,000 13000 increase
Net Income (346,000) (476,350) -130350 increase

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 1.7 2.8 1.1
Quick Ratio 1.4 2.1 0.7
0.0
Accounts Receivabe Days 30 11 -19.3
Accounts Receivable Turnover 0.76 0.93 0.2
0.0
Inventory Days 82 256 173.6
Inventory Turnover 0.38 0.44 0.1
0.0
Revenues / Plant & Equipment 0.63 0.62 -0.0
0.0
Return on Assets 5.0% 4.9% -0.0 381000 371945
Total Asset Turnover 5.3% 6.5% 0.0 7557800 7557800
0.0 0.0504114954 0.0492133954
Rev / Employee 160000 177886 17886.4
Net Income / Employee 34600 43305 8704.5
Accounts Payable Days 21 25 3.7
Avg Interest Rate 30% 30% 0
Debt Ratio 0.31 0.19 -0.12
Equity Ratio 0.49 0.61 0.12
Return on Equity 0.11 0.09 -0.02
COGS Ratio 49% 47% -0.02
Gross Profit Margin 1422% 9228% 78.1
Oper Exp Ratio 0.26 0.26 -0
Operating Profit Margin 28% 31% 0.03
Net Profit Margin 22% 24% 0.03
Earnings per Share 1.83 9.53 7.70
Price / Earnings Ratio 32.77 6.82 -26.0
Book Value / Share 13.7 91.8 78.1
Market / Book Ratio 60 65 5.0
Market Capitalization $ 5,340,000 $ 3,250,000 -2090000
Dividend Yield 0.033 0.031 -0.00
Dividend Payout Ratio $ 1.09 $ 0.21 -0.88