Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Submission 3 (12 points) - due Tuesday April 24 before 5pm - You must submit you

ID: 2516191 • Letter: S

Question

Submission 3 (12 points) - due Tuesday April 24 before 5pm - You must submit your total excel file with the equity option section of the financing options worksheet tab completed, the equity option section of the partial balance sheets tab completed, the ratios tab completed, the choice and reasons tab completed, and the balance sheet and ratios formula tabs completed.   Your file must be named correctly - "Your name (first and last) Project 3 part 3. Failure to name your file correctly will result in a 1 point deduction

$          2,787,816

Submission 1 (6 points) - due Tuesday April 10 before 5pm - You must submit your completed Depreciation schedules and the Depreciation formulas tab. Your file must be named correctly - "Your name (first and last) Project 3 part 1. Failure to name your file correctly will result in a 1 point deduction Submission 2 (12 points ) - due Tuesday April 17 before 5pm - You must submit your completed Bonds portion of the financining options tab and the Bonds portion of the partial balance sheets. . Your file must be named correctly - "Your name (first and last) Project 3 part 2. Failure to name your file correctly will result in a 1 point deduction

Submission 3 (12 points) - due Tuesday April 24 before 5pm - You must submit your total excel file with the equity option section of the financing options worksheet tab completed, the equity option section of the partial balance sheets tab completed, the ratios tab completed, the choice and reasons tab completed, and the balance sheet and ratios formula tabs completed.   Your file must be named correctly - "Your name (first and last) Project 3 part 3. Failure to name your file correctly will result in a 1 point deduction

NFT Consulting and Sales Inc Post Closing Trial Balance October 31, 2018 Cash $              304,900 Accounts Receivable                    76,580 Allowance for Uncollectible Accounts $                  5,690 Supplies                    56,500 Inventory                    68,596 Prepaid Insurance                    57,890 Land                  260,000 Building                  550,000 Accumulated Depr – Building                    25,650 Office Equipment                  856,850 Accumulated Depr – Office Equip                    22,500 Computer Equipment                  556,500 Accumulated Depr - Computer Equip                    10,250 Accounts Payable                    56,560 Utilities Payable                    16,850 Wages Payable                    58,950 Interest Payable                    25,000 Long term Note Payable                 390,000 Mortgage Payable                 406,800 Common Stock ($1 par, 1,000,000,                 400,000 shares authorized, 400,000 issued      and outstanding) Retained Earnings              1,369,566 $           2,787,816

$          2,787,816

Additional information related to the $200,000 delivery equipment purchase: It is ESTIMATED that the equipment will be ABLE TO DRIVE 150,000 total miles over its lifetime. To complete the depreciation schedule, PRESUME that the actual miles driven for its useful life are as indicated below. Also, round depreciation expense per unit to the nearest cent and depreciation expense to the nearest dollar. Year 1      12,560 Year 2      32,560 Year 3      31,650 Year 4      29,850 Year 5      26,500 Year 6      22,350 155,470 Building Depreciation Schedule Depreciation for the Year Asset Dep'ble Depreciation Accumulated Book Date Cost basis Rate Expense Depreciation Value 11/1/2018 10/31/2019 10/31/2020 10/31/2021 10/31/2022 Office Equipment Depreciation Schedule Depreciation for the Year Asset Dep'ble Depreciation Accumulated Book Date Cost basis Rate Expense Depreciation Value 4/1/2019 10/31/2019 10/31/2020 10/31/2021 10/31/2022 10/31/2023 Delivery Equipment Depreciation Schedule Depreciation for the Year Depreciation Asset per unit Units of Depreciation Accumulated Book Date Cost Production Expense Depreciation Value 5/1/2019 10/31/2019 10/31/2020 10/31/2021 10/31/2022 10/31/2023 10/31/2024

Explanation / Answer

1) Depreciaton for the year for Building = (Cost-Salvage Value)/Useful Life

= ($465,500-$15,500)/30 yrs = $15,000 per year

Depreciation Rate = 1/30 = 3.33%

Building Depreciation Schedule (Amounts in $)

2) Depreciation for year for Office Equipment = (Cost-Salvage Value)/Useful Life

= ($150,500-$10,500)/4 yrs = $35,000 per year

Depreciation Rate = 1/4 = 25%

Depreciation for first year = $35,000*7/12 (from April to October)

= $20,417

Depreciation for last year = $35,000*5/12 = $14,583

Office Equipment Depreciation Schedule (Amounts in $)

3) Depreciation per mile = (Cost-Salvage Value)/Estimated Production

= ($200,000-$20,000)/150,000 miles = $1.20 per mile

Deliver Equipment Depreciation Schedule (Amounts in $)

Date Asset Cost (A) Depreciable basis (B = A-$15,500)) Rate (C) Depreciation Expense (B*C) Accumulated Depreciation (D) Book Value (A-D) 11/1/18 465,500 450,000 - 0 0 465,500 10/31/19 465,500 450,000 3.3333% 15,000 15,000 450,500 10/31/20 465,500 450,000 3.3333% 15,000 30,000 435,500 10/31/31 465,500 450,000 3.3333% 15,000 45,000 420,500 10/31/22 465,500 450,000 3.3333% 15,000 60,000 405,500