Question

In: Accounting

Option #1: The Accounting Cycle and Stockholders’ Equity Analysis Portfolio Project Option #1 is for accounting...

Option #1: The Accounting Cycle and Stockholders’ Equity Analysis

Portfolio Project Option #1 is for accounting students who are sensing learners, and learn best from concrete materials and examples. If this is your learning style preference, you are practical and careful with detail. For this assignment, you are required to complete all three accounting cases: Arizona Consultants Inc., Power and Demolition Company, and Warnerwood. You will then present Parts 1, 2, and 3 of the Portfolio Project in Excel as journal entries, following the exact instructions that accompany each part.

Assignment Template attached below

Part 1:

Arizona Consultants, Inc. opened in March and completed the following transactions:

March 1: Arizona Consultants Inc. issued 17,200 shares of $10 par value capital stock for $150,000 cash and equipment with fair market value of $22,000.

March 2: Arizona Consultants Inc. pre-paid $6,000 cash or six months’ rent for their office.

March 3: Arizona Consultants Inc. made credit purchases for office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days.

March 6:  Arizona Consultants Inc. completed services for a client and immediately received $4,000 cash.

March 9:  Arizona Consultants Inc. completed a $7,500 project for a client who must pay within 30 days.

March 12: Arizona Consultants Inc. paid $4,200 cash to settle the account payable created on March 3.

March 19: Arizona Consultants Inc. paid a $5,000 cash premium on a 12-month insurance policy.

March 22: Arizona Consultants Inc. received $3,500 cash as a partial payment for the work completed on March 9.

March 25: Arizona Consultants Inc. completed work for another client for $3,820 on credit.

March 29: Arizona Consultants Inc. declared dividends of $5,000 to its shareholders on record. Dividends were paid in cash the following day.

March 30: Arizona Consultants Inc. purchased $600 of additional office supplies on credit.

March 31: Arizona Consultants Inc. paid $500 cash for this month’s utility bill.

Instructions:

Using the following template, prepare journal entries for the above economic transactions. Enter your journals to the general ledger using the same file name. The following accounts should be used in recording your transactions: cash, accounts receivable, prepaid rent, office equipment, capital stock, prepaid insurance, office supplies, accounts payable, consulting revenue, dividends, and utility expense.

Journal Entries Template for Arizona Consultants Inc.

*Note: To edit the template, you have two options:

Edit in Google docs
1) Click "File" > "Make a Copy"

Download as an Excel file
1) Click "File" > "Download as" > Microsoft Excel (.xlsx)

Part 2:

The following unadjusted trial balance is for Montana Construction Company as of year-end for the December 31, 20x7 fiscal year. The December 31, 20x6 credit balance of the stockholders’ equity account is $46,900, and the stockholders invested $40,000 cash in the company during 20x7.

NO.      Account Title                          Debit               Credit

101      Cash                                         $7,000

126      Supplies                                   $16,000

128      Pre-paid insurance                   $12,600

167      Equipment                               $200,000

168      Accumulated depreciation – equipment $14,000

201      Accounts payable $6,800

251      Long-term notes payable $30,000

301      Stockholders’ equity $86,900

302      Dividends                                 $12,000

401      Demolition fees earned $187,000

623      Wage expense $41,400

633      Interest expense                     $3,300

640     Rent expense                          $13,200

683     Property tax expense               $9,700

684      Repairs expense                      $4,700

690     Utilities expense                      $4,800

TOTALS $324,700         $324,700

Instructions:

a) Journalize the following adjusting entries as of fiscal year-end December 31, 20x7.

b) Using the worksheet, post the adjusting entries using the adjustments column and prepare the adjusted trial balance.

c) Create financial statements. Namely, i) the income statement, ii) statement of stockholders’ equity, and iii) the balance sheet for 20x7.

Adjustments needed:

The supplies available at the end of fiscal 20x7 year are at a cost of $7,900.

The cost of expired insurance for the fiscal year is $10,600.

Annual depreciation on equipment is $7,000; no other depreciation adjustment was made in 20x7.

The December utilities expense of $800 is not included in the adjusted trial balance because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded.

The company's employees have earned $2000 in accrued wages for the fiscal year.

The rent expense not yet paid or recorded in the fiscal year is $3000.

Additional property taxes of $550 have been assessed for the fiscal year, but have not yet been paid or recorded in the accounts.

The $300 accrued interest for December has not yet been paid and reported.

Montana Construction Co, Adjustment December 31, 20X7
Adjust #

Account Names

Debit Credit
1
2
3
4
5
6
7
8
Montana Construction Co, Adjustment December 31, 20X7 Continued
UTB ADJUSTMENT ATB
Acct #

Account Names

Debit Credit Debit Credit Debit Credit
TOTALS

BE SURE TO CREATE A FINANCIAL STATEMENT FROM THE ABOVE ATB

ACT300 Principles of Accounting I
Module 8: Portfolio Project Template Option #1, Part 2 BE SURE TO CREATE A FINANCIAL STATEMENTS FROM THE ADJUSTED TRIAL BALANCE
Montana Construction Company
Montana Construction Co, Adjustments December 31, 20X7 [Company Name]
Adjust # Account Names Debit Credit Income Statement
1 [date]
          
2
Revenues:
3    List names $         -
4 Expenses:
   List names 0
5 0
0
6 0
0
7 0
0
8    Total expenses $         -
Net income             -
Montana Construction Co, Adjustments December 31, 20X7
Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Acct # Account Names Debit Credit Debit Credit Debit Credit
101 Cash $7,000
126 Supplies $16,000
128 Prepaid insurance $12,600 [Company Name]
167 Equipment $200,000 Statement of Stockholders' Equity
168 Accumulated depreciation - equipment $14,000 [date]
201 Accounts payable $6,800           
251 Long-term notes payable $30,000
301 Stockholders' equity $86,900
302 Dividends $12,000 Stockholders' Equity, [date] $       -  
401 Demolition fees earned $187,000 Plus: Additional shareholder investment 0
623 Wage expense $41,400 Net income 0
633 Interest expense $3,300
640 Rent expense $13,200 Less: Dividends $         -
683 Property tax expense $9,700 Stockholders' Equity, [date] $       -  
684 Repair expense $4,700
690 Utilities expense $4,800
[Company Name]
Balance Sheet
TOTALS $324,700 $324,700 $0 $0 $0 $0 [Date]
          
Assets Liabilities & Stockholders' Equity
$               -     $         -
                  -             -
                  -             -
                  - Total Liabilities             -
                  -
$         -
            -
Total stockholders' equity $         -
Total Assets $               - Total liabilities and stockholders' equity $         -

Solutions

Expert Solution

Question 1

Question 2:


Related Solutions

Portfolio Project Option #1 is for accounting students who are sensing learners, and learn best from...
Portfolio Project Option #1 is for accounting students who are sensing learners, and learn best from concrete materials and examples. If this is your learning style preference, you are practical and careful with detail. For this assignment, you are required to complete all three accounting cases: Arizona Consultants Inc., Power and Demolition Company, and Warnerwood. You will then present Parts 1, 2, and 3 of the Portfolio Project in Excel as journal entries, following the exact instructions that accompany each...
Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of...
Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of Eldon Company appeared as follows: Preferred stock, $40 par value, 5,000 shares authorized, ? shares issued $200,000 Common stock, ? par, 10,000 shares authorized, 10,000 shares issued 100,000 Additional paid-in capital—Preferred 9,000 Additional paid-in capital—Common 800,000 Additional paid-in capital—Treasury stock 2,000 Total contributed capital $1,111,000 Retained earnings 39,000 Treasury stock, preferred, 100 shares (3,300) Total stockholders’ equity $ ? Required: Determine the following items...
Portfolio Project Option #2 is for accounting students who are intuitive learners by nature. You learn...
Portfolio Project Option #2 is for accounting students who are intuitive learners by nature. You learn best from abstract materials like theories and concepts, enjoy challenges, and tend to be more innovative. For this assignment, you are required to complete the accounting case for Denver Works Co in Part 1, KPWC Service in Part 2, and Virginia Company in Part 3. Follow the additional instructions provided below. Part 1: Denver Works Co, a global marketing company, completed the following transactions...
1. The accounting equation is defined as: a. Common Stock + Retained Earnings = Stockholders’ Equity....
1. The accounting equation is defined as: a. Common Stock + Retained Earnings = Stockholders’ Equity. b. Revenues - Expenses = Net Income. c. Revenues - Expenses - Dividends = Retained Earnings. d. Assets = Liabilities + Stockholders’ Equity. 2. On January 1, Art Inc. started the year with a $492,000 balance in Retained Earnings and a $605,000 balance in Common Stock. During the year, the company earned net income of $92,000, paid a dividend of $15,200, and issued more...
1. Prepare an income statement, statement of stockholders' equity and balance sheet The accounting records of...
1. Prepare an income statement, statement of stockholders' equity and balance sheet The accounting records of Campus company for the year ended February 28, 2018 Required: Multiple-step income statement, Statement of changes in stockholder’s equity and Balance Sheet. Use following information: Accumulated depreciation building $200,000 Retained earnings 158,000 Cost of goods sold 4,800,000 Prepaid insurance 10,000 Sales Revenue 7,805,000 Treasury Stocks 351,000 Accounts receivables 445,000 Merchandise Inventory 597,000 Mortgage payable (90,000 of this mortgage is to be pd within a...
Multiple Choice Question 82 An analysis of stockholders' equity of Bonita Industries as of January 1,...
Multiple Choice Question 82 An analysis of stockholders' equity of Bonita Industries as of January 1, 2018, is as follows: Common stock, par value $20; authorized 100,000 shares; issued and outstanding 85000 shares $1700000 Paid-in capital in excess of par 850000 Retained earnings 769000 Total $3319000 Bonita uses the cost method of accounting for treasury stock and during 2018 entered into the following transactions: Acquired 2460 shares of its stock for $78720. Sold 1890 treasury shares at $36 per share....
Option #1: Accounting Cycle Part A Listed below are the transactions for Ajayi Art, Inc. for...
Option #1: Accounting Cycle Part A Listed below are the transactions for Ajayi Art, Inc. for the month of July: July 1 Ajayi Art, Inc. is started with an investment of $250,000 cash. July 1 Ajayi purchases office equipment for $22,250 by signing a 10% note (interest and principal to be paid over the next 12 months). July 6 Pays rent for the art gallery in advance for the next three months with a check for $3,000. July 8 Purchases...
1. Provide a flowchart of the cycle for Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders' Equity,...
1. Provide a flowchart of the cycle for Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders' Equity, and Income Statement Accounts. Prepare an audit program. Describe the cycle and include any risks involved with this cycle.
Stockholders’ Equity: Transactions and Balance Sheet Presentation The stockholders’ equity of Summit Corporation at January 1...
Stockholders’ Equity: Transactions and Balance Sheet Presentation The stockholders’ equity of Summit Corporation at January 1 follows: 7 Percent preferred stock, $100 par value, 20,000 shares authorized; 5,000 shares issued and outstanding $500,000 Common stock, $15 par value, 100,000 shares authorized; 40,000 shares issued and outstanding 600,000 Paid-in capital in excess of par value-Preferred stock 24,000 Paid-in capital in excess of par value-Common stock 360,000 Retained earnings 325,000 Total Stockholders' Equity $1,809,000 The following transactions, among others, occurred during the...
Stockholders’ Equity: Transactions and Balance Sheet Presentation The stockholders’ equity of Summit Corporation at January 1...
Stockholders’ Equity: Transactions and Balance Sheet Presentation The stockholders’ equity of Summit Corporation at January 1 follows: 7 Percent preferred stock, $100 par value, 20,000 shares authorized; 5,000 shares issued and outstanding $500,000 Common stock, $15 par value, 100,000 shares authorized; 40,000 shares issued and outstanding 600,000 Paid-in capital in excess of par value-Preferred stock 24,000 Paid-in capital in excess of par value-Common stock 360,000 Retained earnings 325,000 Total Stockholders' Equity $1,809,000 The following transactions, among others, occurred during the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT