Question

This project will be submitted in 3 parts. The submission dates and required parts to be completed for each submission are:

Submission 1 - due Monday September 10 before 5pm - You must submit your completed July Journal entries, the Worksheet complete through the Trial Balance, and the worksheet formulas tab complete through the Trial Balance. Your file must be named correctly - "Your name (first and last) Project 1 part 1. Failure to name your file correctly will result in a 1 point deduction

Submission 2 - due Monday September 17 before 5pm - You must submit your completed Adjusting Journal Entries, the worksheet with the Trial Balance and adjustments and Adjusted Trial Balance Columns, and the Worksheet formulas tabs completed .   Your file must be named correctly - "Your name (first and last) Project 1 part 2. Failure to name your file correctly will result in a 1 point deduction

Submission 3 - due Monday September 24 before 5pm - You must submit your completed Closing entries, the financial statements completed, and the financial statements formulas tab completed.   Your file must be named correctly - "Your name (first and last) Project 1 part 3. Failure to name your file correctly will result in a 1 point deduction

YOU MUST USE FORMULAS TO BE CONSIDERED FOR FULL CREDIT ON THE PROJECTS

PROJECT INFORMATION

You have been hired as an accountant for KTZFIG Consulting Inc. This business was created when some friends decided to make use of their newly minted college degrees and go into business together. The business was created on July 1, 2018. The company will have a fiscal year end of June 30.   The initial formation transactions and early purchases for KTZFIG Consulting Inc. resulted in the balances that are included in the first 2 columns of the Worksheet. (see the worksheet tab)

During July, the first month of operations, the following transactions occurred:

Event

Borrowed 25,000 from the bank for operating cash. The note has a 6% interest rate (simple interest) and is to be paid back in 5 years

Purchased office furniture for $9,865.

Paid $13,800 for 12 months rent on office space

Received $11,400 from SBoard Inc. for work to be performed over the next 12 months.

Paid $1,275 for utilities.

Paid $8,975 for purchases of supplies previously made on account.

Performed services for various customers for $12,750 cash and another $15,780 on account.

Collected $11,680 as payment for amounts previously billed.

Purchased $10,660 of additional office supplies on account.

Paid salaries to employees totaling $3,850 for 1 week.

Dividends of $1,000 were declared and paid.

At the end of July, the following additional information is available to help determine what adjustments are needed:

Additional work for customers of $5,980 has been performed during the last week of July but not yet billed

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

Supplies on hand are $4,785.

One month of the prepaid rent has been used up

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

Salaries of $3,850 are paid every Friday (for a 5 day work week). July 30, 2018 was a Tuesday.

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

SUGGESTED STEPS FOR COMPLETION OF THE PROJECT:

Prepare journal entries to record the July transactions given. Please refer to the Worksheet tab for Account Titles you may need.

Add the July journal entry information to the Worksheet in the July columns. You can do this in one of 2 ways - (1) Post the journal entries to ledger accounts using T-accounts to represent ledger accounts and then use those totals to post to the worksheet or (2) use excel to add all entries for a particular account into the correct column in the worksheet (ie., add all cash debits from the journal entries into the cash debit column for July entries). There is a tab to use for T Accounts if you want but the T Accounts are NOT required

Prepare an unadjusted trial balance as of July 31, 2018. This will be part of the Worksheet you prepare. There is a tab in this file that you will use for this. Excel formulas must be used throughout the project to obtain full credit.

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

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

Prepare an adjusted trial balance as of July 31, 2018. 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 July 31, 2018. (Income Statement, Statement of Retained Earnings, Classified Balance Sheet ). Formatting is important and will be graded so be sure 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.

Prepare closing entries for the end of the period

Copy the Worksheet from the Worksheet tab to the Worksheet formulas tab and the Financial Statements from the Financial Statements tab to the Financial Statements tab. Highlight the entire worksheet/financial statements area respecively and press the "ctrl" key and the "~" key. This will cause the formulas used to display instead of the numbers. Save your file with the formulas displayed. JOURNAL ENTRIES - KTZFIG Consulting Inc DATE ACCOUNT DEBIT CREDIT 1-Jul Cash 25,000 Cash DB         Notes Payable 25,000 Cash CR 3-Jul Office Furniture 9,865 Cash DB-CR         Cash 9,865 4-Jul Prepaid Rent 13,800 Accounts Receivable DB            Cash 13,800 Accounts Receivable CR 8-Jul Cash 11,400 Accounts Receivable DB-CR         Unearned Service Revenue 11,400 10-Jul Utilities 1,275 Accounts Payable DB            Cash 1,275 Accounts Payble CR 14-Jul Accounts Payable 8,975 Accounts Payable DB-CR          Cash 8,975 15-Jul Cash 12,750 Accounts Receivable 15,780          Service Revenue 28,530 26-Jul Cash 11,680          Accounts Receivable 11,680 28-Jul Supplies 10,660          Accounts Payable 10,660 29-Jul Wage Expenses 3,850          Cash 3,850 31-Jul Dividends 1,000          Cash 1,000 126,035 126,035 ADJUSTING JOURNAL ENTRIES - KTZFIG Consulting Inc DATE ACCOUNT DEBIT CREDIT Worksheet - KTZFIG Consulting Inc BEGINNING NUMBERS JULY ENTRIES UNADJUSTED TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE ACCOUNT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash 120,500 22,065 142,565 Accounts Receivable 4,100 4,100 Supplies 8,975 10,660 19,635 Prepaid Rent 13,800 13,800 Land 30,000 30,000 Computer Equipment 49,500 49,500 Accumulated Depreciation, Comp Equip Office Furniture 9,865 9,865 Accumulated Depreciation, Off Furn Accounts Payable 8,975 1,685 10,660 Salaries Payable Interest Payable Unearned Revenue 11,400 11,400 Long-term Notes Payable 25,000 25,000 Common Stock 200,000 200,000 Retained Earnings Dividends 1,000 1,000 Service Revenue 28,530 28,530 Salaries Expense 3,850 3,850 Rent Expense Supplies Expense Utilities Expense 1,275 1,275 Interest Expense Depreciation Expense, Comp Equip Depreciation Expense, Office Furniture 208,975 208,975 66,615 66,615 275,590       275,590 Please include formuals

Answer 1

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Adjusting Entries:
Date	Account	Debit	Credit
Jul 31	Accounts Receivable	$       5,980
Jul 31	Service Revenue		$       5,980
Jul 31	Interest Expense	$           125		25000*6%/12
Jul 31	Interest Payable		$           125
Jul 31	Supplies Expense	$     14,850		8975+10660-4785
Jul 31	Supplies		$     14,850
Jul 31	Rent Expense	$       1,150		13800/12
Jul 31	Prepaid Rent		$       1,150
Jul 31	Unearned Service Revenue	$           950		11400/12
Jul 31	Service Revenue		$           950
Jul 31	Wages Expense	$       1,540		3850/5*2
Jul 31	Wages Payable		$       1,540
Jul 31	Depreciation Expense, Comp Equip	$           140
Jul 31	Accumulated Depreciation, Comp Equip		$           140
Jul 31	Depreciation Expense, Office Furniture	$           120
Jul 31	Accumulated Depreciation, Off Furn		$           120

Worksheet - KTZFIG Consulting Inc
	BEGINNING		JULY		Unadjusted		ADJUSTMENTS		Adjusted
ACCOUNT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
Cash	120,500		22,065		142,565				142,565
Accounts Receivable			4,100		4,100		5980		10,080
Supplies	8,975		10,660		19,635			14850	4,785
Prepaid Rent			13,800		13,800			1150	12,650
Land	30,000				30,000				30,000
Computer Equipment	49,500				49,500				49,500
Accumulated Depreciation, Comp Equip								140		140
Office Furniture			9,865		9,865				9,865
Accumulated Depreciation, Off Furn								120		120
Accounts Payable		8,975		1,685		10,660				10660
Salaries Payable								1540		1540
Interest Payable								125		125
Unearned Revenue				11,400		11,400	950			10450
Long-term Notes Payable				25,000		25,000				25000
Common Stock		200,000				200,000				200000
Retained Earnings
Dividends			1,000		1,000				1,000
Service Revenue				28,530		28,530		6930		35460
Salaries Expense			3,850		3,850		1540		5,390
Rent Expense							1150		1,150
Supplies Expense							14850		14,850
Utilities Expense			1,275		1,275				1,275
Interest Expense							125		125
Depreciation Expense, Comp Equip							140		140
Depreciation Expense, Office Furniture							120		120
	208,975	208,975	66,615	66,615	275,590	275,590	24,855	24,855	283,495	283,495