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ACC 3010

PROJECT 1

WINTER 2018

DUE February 3 by 5pm submitted to the assignment link in Canvas

NAME

ACCESS ID

During November, the first month of operations, the following transactions occurre

d:

Event

Paid $7,200 for 12 months rent on office space

Purchased office furniture for $8,950.

Purchased $11,354 of additional office supplies on account.

Received $10,800 from Fortuna Inc. for work to be performed over the next 12 months.

Paid $1,560 for utilities.

Performed services for various customers for $13,200 cash and another $18,100 on account.

Paid $8,650 for purchases of supplies previously made on account.

Paid salaries to employees totaling $5,200 for 1 week.

Collected $12,300 as payment for amounts previously billed.

Dividends of $3,000 were declared and paid.

One month of the prepaid rent has been used up

Supplies on hand are $8,150.

One month of interest has accrued on the note payable for the bank loan.

One month of the services for the Fortuna Inc. has been performed (see above).

Salaries of $5,200 are paid every Friday (for a 5 day work week). November 30, 2017 was a Thursday.

Additional work for customers of $9,580 has been performed during the last week of November but not yet billed

Depreciation expense for the computer equipment is $140 and for the office furniture is $120

SUGGESTED STEPS FOR COMPLETION OF THE PROJECT:

You have been hired as an accountant for NFT Consulting Inc. This business was create

d when some friends decided

to make use of their newly minted college degrees and go into business together. The business was crea

ted on

November 1, 2017. The company will have a fiscal year end of October 31st. The initia

l formation transactions and

early purchases for NFT Consulting Inc. resulted in the balances that are included in the

first 2 columns of the

Worksheet. (see the worksheet tab)

Borrowed 20,000 from the bank for operating cash. The note has a 3% interest rate (simple i

nterest) and is to be paid

back in 4 years

At the end of November, the following additional information is available to he

lp determine what adjustments

are needed:

Prepare journal entries to record the November transactions given. Please refer t

o the Worksheet tab for Account Titles

you may need.

Prepare adjusting entries for the month of November given the information provided.

Post the adjusting entries to the Adjusting entries columns on the worksheet

Prepare closing entries for the end of the period

INCENTIVE POINTS

Add the November journal entry information to the Worksheet in the November columns. Y

ou can do this in one of 2

ways - (1) Post the journal entries to ledger accounts using T-accounts to represent ledger acc

ounts and then use those

totals to post to the worksheet or (2) use excel to add all entries for a particular account i

nto the correct column in the

worksheet (ie., add all cash debits from the journal entries into the cash debit column for N

ovember entries). There is a

tab to use for T Accounts if you want but they are NOT required

Prepare an unadjusted trial balance as of November 30, 2017. This will be part of the W

orksheet you prepare. There is a

tab in this file that you will use for this. Excel formulas must be used throughout the project to obta

in full credit.

Prepare an adjusted trial balance as of November 30, 2017. This will be part of the

Worksheet you prepare. There is a

tab in this file that you will use for this.

Prepare financial statements for the month ending November 30, 2017. (Income Stateme

nt, Statement of Retained

Earnings, Classified Balance Sheet ). Formatting is important and will be graded so be sur

e you use dollar signs and

underlines as appropriate. Also be sure you have headings and proper column usage for all statements.

There is a tab for

these statements. Heading are PARTIALLY completed for the 3 statements.

Copy the Worksheet from the Worksheet tab to the Worksheet formulas tab and the Fina

ncial Statements from the

Financial Statements tab to the Financial Statements tab. Highlight the entir

e worksheet/financial statements area

respecively and press the "ctrl" key and the "~" key. This will cause the formul

as used to display instead of the

numbers. Save your file with the formulas displayed.

Answer 1

The opening trial balance is not provided. All the entries for the month have been done. Need to ad the amounts from the opening trial banalce.

NFT Consulting Inc.
Journal entries for the month of November, 2017
Date	Account title	Debit	Credit
Nov. 2017	Cash	20000
	Note payable		20000
	(Amount borrowed for opeartions)
Nov. 2017	Prepaid Rent	7200
	Cash		7200
	(Rent paid for 12 months for office space)
Nov. 2017	Office Furniture	8950
	Cash		8950
	(Purchase of office furniture)
Nov. 2017	Office Supplies	11354
	Accounts Payable		11354
	(Purchase of office supplies on account)
Nov. 2017	Cash	10800
	Unearned Revenue		10800
	(Amount received from Fortuna Inc. For future service for 12 months)
Nov. 2017	Utilities expense	1560
	Cash		1560
	(Payment for uitilities )
Nov. 2017	Cash	13200
	Accounts Receivable	18100
	Service Revenue		31300
Nov. 2017	Accounts Payable	8650
	Cash		8650
	(Paymant made to suppiers on account)
Nov. 2017	Salaries expense	5200
	Cash		5200
	(Payment of salaries to employees)
Nov. 2017	Cash	12300
	Accounts Receivable		12300
	(Collection from customers )
Nov. 2017	Dividends	3000
	Cash		3000
	(Payment of dividends)
NFT Consulting Inc.
Adjusting journal entries for the month of November, 2017
Date	Account title	Debit	Credit
Nov.30, 2017	Rent Expense	600
	Prepaid Rent		600
	(Rent for November recorded)
	Supplies Expense	3204
	Office Supplies		3204
	(Supplies expense for November - $11,354 - $8,150)
	Interest Expense	50
	Interest Payable		50
	(Interest on $20,000 @3% for one month)
	Unearned Servie Revenue	900
	Service Revenue		900
	(One month service performed for Fortuna Inc.)
	Salaries Expense	4160
	Salaries Payable		4160
	(Salary for the last week - for 4 days @5,200 for a 5-day week )
	Accounts Receivable	9580
	Service Revenue		9580
	(Unbliied service performed)
	Depreciation expense	260
	Accumulated Depreciation - Computer equipment		140
	Accumulated depreciation - office furniture		120
	(Depreciation expense for the month )

NFT Consulting Inc.
Worksheet for the month of Novmber , 2017
	Transactions		Unadjusted		Adjustments		Adjusted
Account	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	56300	34560	21740				21740
Acounts Receivable	18100	12300	5800		9580		15380
Prepaid Rent	7200		7200			600	6600
Office Supplies	11354		11354			3204	8150
Office furniture	8950		8950				8950
Accumulated Depreciation - Computer Equipment			0			140		140
Accumulated Depreciation - Office Furniture						120		120
Accounts Payable	8650	11354		2704				2704
Unearned Revenue		10800		10800	900			9900
Interest payable						50		50
Salaries Payable						4160		4160
Note payable		20000		20000				20000
Dividends	3000		3000				3000
Service Revenue		31300		31300		10480		41780
Salaries expense	5200		5200		4160		9360
Utilities Expense	1560		1560				1560	0
Rent Expense			0		600		600
Supplies Expense			0		3204		3204
Interest Expense					50		50
Depreciation expense					260		260
Total	120314	120314	64804	64804	18754	18754	78854	78854