Quarter 4 Opening Entries: 1. Sold 100 shares of preferred stock (par value $15,
ID: 2478204 • Letter: Q
Question
Quarter 4 Opening Entries:
1. Sold 100 shares of preferred stock (par value $15, 10% dividend) for $25 each.
2. Prepay rent for the next year for $120.
3. Purchase supplies of $30
4. Collect $300 on accounts receivable
5. Pay $400 towards accounts payable
6. Invest another $200 into your investment account
7. Purchase another 15 units for $15 on account
8. Purchase back 30 shares of common stock for $15 each
9. Write off a bad debt (A/R) of $20
10. Collect another $300 from customers as a deposit towards future rent.
Quarter 4 Final Entries:
1. Sold 20 on account for $25 each
2. Customer returned 3 units on account.
3. Company declared a $300 dividend.
End of quarter work:
1. Transfer all transactions into t-accounts and determine ending balance.
2. Prepare the trial balance on your worksheet
3. Do the following adjustments: worksheet and journal
a. Supplies used = $25
b. COGS – use LIFO
c. Interest on all loans and investments
d. Depreciation on all houses, hotels, equipment, building, trains, solar plants
e. Bad debt expense = 6% of net sales
f. Amount earned from “unearned revenue” account = $200
g. Prepaid rent and prepaid insurance – record the amount expired this last quarter
h. Amortization on your intangible
4. Finish the worksheet
5. Do the following ratios:
a. EPS
b. Current ratio and working capital
c. Debt/Equity
d. Inventory turnover
e. A/P Turnover
f. Fixed Asset turnover
g. Quick Ratio
THIS IS ALL THE INFORMATION I HAVE.
WORKSHEETS IS WHAT IS NEEDED
quarter 1:
QUARTER 2:
QUARTER 3:
HELP ON WORKSHEETS LIKE THE ONES ABOVE.
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
Part (a), (b) & (c) Transfer of entries in T-accounts and ending balances along with detailed trial balance
Part (e) Ratios
1. EPS = Profit/Loss for Current Year / Common Stock
= $ 445 / 17 = $ (26.18)
2. Current Ratio and Working Capital
Current Ratio = Current Asset / Current Liability
Current Asset = Cash + Supplies + Prepaid Insurance and Rent + Accounts Receivable
= $ 4,130 + $ 240 + $120 + $120 + $ 1,291 = $ 5,901
Cuurent Liability = Rent Payable + Account Payable + Interest Payable + Notes Payable + Unearned Revenue + Dividend Payable
= $15+ $1055 + $204 + $2,800 + $100 + 300 = $ 4474
Cuurent Ratio = $ 5,901/$ 4,474 = 1.32
Wroking Capital = $ 5901 - $ 4474 = $1427
3. Debt/Equity Ratio cannot be calculated as details of loans are not available
4. Inventory Turnover ratio is nil as no stock of inventory is available at the closing
5. A/P turnover = Total Supplies / Average Creditors
Total Supplier = Inventory purchased
= $ 360 + $ 140 + $ 225 = $ 725
Average Creditors = ($ 1,700 + $ 1,055)/2 = $ 1377.5
= 0.526 times
6. Fixed Asset Turnover Ratio = Revenue / Total Fixed Assets
Revenue = Sales + Service = $ 2,460
Total Assets = Equipment + Building + Intangible = $ 2,525
= 0.9745 times
7. Quick Ratio = Current Asset - Prepaid Asset - Supplies
= $ 5901 - $240 - $120 - $120 = $ 5421
Particulars Debit Credit Cash $ 4,130 $ - Deposit from Customer $ - $ 350 Supplies $ 240 $ - Prepaid Insurance $ 120 $ - Prepaid Rent $ 120 $ - Equipment $ 1,200 $ - Building $ 1,000 $ - Property $ 620 $ - Acc. Dep $ - $ 470 Investment $ 773 $ - Rent payable $ - $ 15 Account Payable $ - $ 1,055 Interest Payable $ - $ 204 Notes Payable $ - $ 2,800 Common Stock $ - $ 1,700 Additional Paid in Capital $ - $ 250 Interest Revenue $ - $ 23 Supplies Expense $ 95 $ - Interest Expenses $ 204 $ - Depreciation expenses $ 470 $ - Insurance Expense $ 240 $ - Rent expense $ 297 $ - Retained Earning $ - $ 107 Sales Return $ 119 $ - Rent Revenue $ - $ 116 Misc. Revenue $ - $ 550 Provision for Bad Debt $ - $ 66 COGS $ 1,225 $ - Sales Revenue $ - $ 2,060 Amortisation $ 50 $ - Intangible $ 325 $ - Accounts Receivable $ 1,291 $ - Bad Debts $ 78 $ - Preferred Stock (10% Dividend) $ - $ 1,500 Premium on Preferred Stock $ - $ 1,000 Unearned Revenue $ - $ 100 Dividend payable $ - $ 300 Utility expenses $ 24 $ - Service Revenue $ - $ 400 Current Year Profit and Loss $ 445 $ - Total $ 13,066 $ 13,066