In: Accounting
DIFFERENT NUMBERS ARE INVOLVED, NOT THE SAME AS THE SIMILAR PROJECT Q/A TO THIS.
**VERY IMPORTANT**
**VERY IMPORTANT**
Accounting Cycle Project
Transaction Practice Set – SUNG Co.
ACC5100 – Winter 2019 – Prof. Chung
You have been hired as an accountant for SUNG Co., a corporation performing diverse consulting services in Detroit, Michigan. SUNG Co. prepares financial statements on monthly bases.
Project Scope: You are to record the transactions for December, prepare the monthly adjustments, and prepare the financial statements using the Excel workbook provided. Then you will close the fiscal year and prepare the books for next year.
Directions: The assignment encompasses two files: Directions and Transactions (this Word document) and Forms (a separate Excel workbook). Your solution should be worked in Excel and the completed Excel workbook submitted for grading.
You should use Excel formula where appropriate and cell references to carry forward values and numbers between worksheets within the workbook. Simply typing values in Excel will result in a reduced score, even if the correct solution is provided. You should use formula wherever possible.
Due Date: Apr. 24th, 2019.
Transactions in December 2018:
Dec. |
1 |
The equipment was completely destroyed by the regional earth quake. “Loss by earthquake” was recognized. |
1 |
Lent cash to another company and received a 2 year, $30,000 zero-interest-bearing note. The market rate of interest for a note of similar risk is 9 percent. |
|
1 |
Purchased new equipment that costs $12,000 and issued 1,200 shares of common stock (no-par stock) to the equipment seller. |
|
3 |
Cash payment on accounts payable amounted to $6,000. |
|
4 |
Sold land for $13,000 cash. |
|
10 |
Collected $16,000 as payment for amounts previously billed (suppose the payment was made within the discount period). |
|
13 |
One of the customers went bankrupt. SUNG Co. wrote off $1,500 account receivable. |
|
15 |
Paid monthly salaries of $20,000 to employees |
|
16 |
Issued 1,000 shares of preferred stock at $15 per share |
|
17 |
Purchased 500 shares of ABC corporation’s common stock at $20 (per share) and classify the securities as available-for-sales securities |
|
20 |
Found that the company incorrectly overstated its November account receivable and sales revenue by $2,000 and made a journal entry to correct the error. |
|
29 |
Performed services for a customer for $40,000 cash |
|
30 |
Performed $30,000 services on account with the following terms: 2/15, n/30. SUNG Co. records credit sales using the net method |
|
31 |
Dividends of $5,000 were declared and paid. $ 1,500 is paid to preferred stockholders and the rest is paid to the common stock holders. |
|
31 |
ABC corporation declared $ 5 dividend per share (to common stock holders). It will be paid in 2018. |
* Additional information
SUNG Co. | |||
Post-closing Trial Balance | |||
November 30th, 2018 | |||
ACCOUNT | DEBIT | CREDIT | |
Cash | $42,500 | ||
Accounts Receivable | 20,000 | ||
Allowance for doubtful account | 1,000 | ||
Supplies | 9,000 | ||
Equipment | 10,000 | ||
Accumulated Depreciation | $5,000 | ||
Land | 10,500 | ||
Accounts Payable | 8,000 | ||
Salaries Payable | 10,000 | ||
Common Stock* | 50,000 | ||
Retained Earnings | 18,000 | ||
$92,000 | $92,000 | ||
* 50,000 shares authorized, 20,000 shares issued and outstanding |