Quarter 3 – Opening Entries: • Purchase more supplies for $100 with cash • Colle
ID: 2469337 • Letter: Q
Question
Quarter 3 – Opening Entries:
• Purchase more supplies for $100 with cash
• Collected $350 as a deposit from customer
• Purchased a building for headquarters $1000 and signed a 10 year note payable with 6% APR
• Pay $500 towards A/P payable
• Collect $300 from A/R
• Write off an A/R of $30
• Purchase another 10 units for $14 each on account
• Invest another $150 into your investment account
Optional Transactions:
• Sell another 100 shares $30 each if you made a profit in Q2 or $25 each if you incurred a loss
Last two entries of Quarter 3:
1. Sold 30 units for $22 each on account.
2. Customer returned 2 units on account
• Transfer all transactions to your t-accounts and determine ending balances (don’t forget about the initial entries and the two entries above)
• Transfer all ending balances to worksheet and complete the unadjusted trial balance
• Journalize the following adjustments and place them on your worksheet in the adjusted column:
o Supplies used = $20
o Bad debt expense = 5% on net sales
o Depreciation on houses, equipment (straight line) and depreciation on building using declining balance where useful life = 10 years and residual value = $200
o Also any bullet trains or solar plants should be depreciated using straight line depreciation where the useful life 5 and no residual value
o Interest on all loans
o Amount earned from the deposit collected by customer at the beginning of Q3 = $150
o Interest on investments
o Insurance expense
o Remainder of prepaid rent
o Amortization on the intangible
o COGS using LIFO
• Finish the worksheet
• Prepare the following ratios: EPS, Debt/Equity, Inventory turnover, A/P turnover, Current Ratio, Working Capital & Fixed Asset turnover
quarter 1:
quarter 2:
Balance Unadjusted Adjustments Adjusted TrialIncome Trial balance Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit $1922 1922 500 150 360 120 Invento 25 aid Ins. 75 1200 45 Prepaid Rent Equipment Propert Accumulated Dep Investment Accounts Payable Unearned Rev Interest Payable Notes Payable Common Stock Additional Paid in capital 1200 1200 6 1700 400 200 1700 200 45 1800 45 1800 1000 45 1800 1000 200 2 2 200 2 Service Revenue 200 200 2 5 Interest Revenue Supplies ex Interest Ex Depreciation Ex Insurance Rent Exp Retained earnin Rent. Rev Misc. Rev Utility Exp Misc Total 25 45 25 45 162 45 207 207 53 200 200 24. 24 24 5358 5358 431 431 5459 5459 4114645048 5048 53 411Explanation / Answer
The schedule is created except for the Balance sheet.
Other questions are not answered due to time constraint
Quarter 3 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Debit Credit Debit Credit Debit Credit Debit Credit Cash 2092 858 750 2200 Deposit from customer 350 350 Inventory 410 140 410 140 Supplies 130 100 20 210 Prepaid Insurance 240 60 180 Prepaid Rent 30 30 0 Equipment 1200 1200 Building 1000 1000 Property 620 620 Acc: Depreciation 100 370 470 Investment 414 159 573 Rent Payable 15 15 Accounts Payable 1560 500 140 1200 Unearned Revenue 0 Interest Payable 99 105 204 Notes payable 1800 1000 2800 Common Stock 2000 0 2000 Additional Paid in Capital 400 0 400 Service Revenue 0 Interest Revenue 9 9 9 Supplies Expense 20 20 20 Interest Expense 105 105 105 Depreciation expense 370 370 370 Insurance expense 60 60 60 Rent expense 45 45 45 Retained Earnings 407 0 407 Sales return 44 44 44 Rent Revenue 58 58 58 Misc Revenue 150 150 150 Utility Expense 0 Misc Expense 0 Provision Bad debts 45 30 33 48 48 COGS 410 410 Sales Revenue 660 660 660 Amortisation 25 25 25 Intangible 375 25 350 Accounts Receivable 900 660 374 1186 Bad debts 33 33 Total 6411 6411 4559 4559 8771 8771 717 877 160