Homework help

Anonymous
timer Asked: Feb 5th, 2019
account_balance_wallet $9.99

Question Description

Note: You do NOT have to write a Word “paper” as such. Instead, in part B of both options you are asked to prepare a PowerPoint Presentation. As part of each slide you need to prepare Speaker Notes. Use these Speaker Notes to earn your points for writing, grammar, and citations. Make sure I can access the Speaker Notes please.

Note: Include a properly formatted cover page and one page for the references you cited in the Speaker Notes.

Turn in the following please (and preferably in this order):

  1. Cover page with page of references in Word.
  2. Part A in an excel spreadsheet.
  3. Part B in a PowerPoint with Speaker Notes

The cost of the inventor for all sales was $38.

Replace the “transactions” tab in the student template with the following and add a tab for the ratio part of option 1 part A.



Option 1

Portfolio Project

Computer Depot was incorporated on January 1st. The business maintains a retail personal computer replacement parts store, and also provides

a full range of services, including computer diagnostic services, virus removal, hardware replacement, software installation and upgrades, and optimization services.

The Company uses a 2 year life, zero salvage value, and straight line method for depreciation on all equipment. Consider any equipment purchased in the first half of the month owned for the entire month. Consider any equipment purchased in the second half of the month not owned for the month of purchase.

The Company uses a perpetual inventory system and accounts for costs using the Last-In-First-Out cost flow assumption. Hint: as you make your journal entries keep up with your purchases and sales.

The following transactions occurred during the first twelve months of operations:

Units

Unit Cost

January 1st

Common stock is issued in exchange for cash in the amount of ………….………….………………………

350,000

February 8th

The company purchases and pays for 300 units of computer replacement parts at a price of $25 per unit …………..

7,500

300

25

March 1st

The company pays cash for a one-year insurance policy in the amount of ……………….………………………..…..

10,752

March 31st

Rent on a retail space for 12 months is paid in the amount of …..……….………………………………………

10,512

April 1st

Diagnostic tools and testing equipment with a useful life of 2 years is purchased for cash in the amount of ……Use straight-line depreciation and a zero salvage value when making the adjusting entry for depreciation.

23,460

April 10th

PC tuning supplies purchased on account in the amount of …………..……………………………………………

4,250

May 15th

The company purchases and pays for another 300 units of computer replacement parts at a price of $38 per unit …..

11,400

300

38

May 30th

PC repair services are performed on account in the amount of …………………………………………………………..…………

10,538

June 1st

The company pays for advertisements to be run for the next 12 months in the amount of ……………………….

1,540

June 30th

The company signed a 5-year note payable with their bank for $100,000 and and interest at an annual rate of 8%. Interest is due on June 30th each year and the principal will be paid in full at the end of the 5 year period.

100,000

July 25th

Software installation & upgrade services are performed on account in the amount of …...……………………………..…………

10,759

July 31st

120 units of computer replacement parts are sold for $75 per unit with terms 2/10, n/30. The sale is recorded using the net method.

9,000

-120

38

August 2nd

Hardware replacement services are provided on account in the amount of ……………………………………………………………….

9,820

August 6th

The company receives full payment from the customer for the July 31st sale ………………………………………

8,820

September 15th

Virus removal services are performed on account in the amount of ……………………..…………………………….…………..

6,295

September 29th

Customer payments are received for services previously provided in the amount of ………………………………..

1,520

October 13th

136 units of computer replacement parts are sold for $75 per unit with terms 2/10, n/30. The sale is recorded using the net method.

10,200

-136

38

October 29th

The company receives payment for half of the October 13th sale ………………………………………………………

5,100

November 1st

Equipment originally purchased on April 1st for $3,000 is sold for $1,500 cash

November 15th

A bookkeeper is hired to help the company with daily accounting, taxes, and annual tax preparation

December 15th

The bookkeeper is paid $4,500 for the previous month's services

4,500

Additional information:

a.

PC tuning supplies on hand at the end of the year are as follows: …………………………………….

2,550

b.

The year-end balance reported at the end of the year for the Allowance for Doubtful Accounts is estimated as 2.5% of outstanding gross receivables at the end of the year.

c.

The Company uses a perpetual inventory system and accounts for costs using the Last-In-First-Out cost flow assumption. On December 31st, a count of ending inventory revelas that there are 344 units of computer replacement parts on hand.

d.

All revenue is recorded in the "Sales Revenue" account and reported net of cash discounts on the income statement.

e.

The effective interest method is used to amortize bond premiums and discounts

f.

Adjustments are made at the end of the year for prepaid insurance, rent, advertising, depreciation, interest expense, and salaries expense. Use life of 2 years, no salvage value and straight line depreciation method.

g.

The bookkeeper is paid a salary of $4,500 on the 15th of every month.

h.

The company declared dividends of $700 for the year. Record and post as an adjusting journal entry.

i.

Assume selling expenses include advertising and supplies expense. All other expenses, other than depreciation and interest expense, are considered general & administrative.

REQUIRED:

1.

Prepare journal entries for each transaction listed above (with descriptions).

2.

Post journal entries to the general ledger accounts.

3.

Prepare an unadjusted trial balance dated as of December 31, 2019.

4.

Prepare all necessary adjusting journal entries (with descriptions) dated December 31, 2019

and post to the general ledger.

5.

Prepare an adjusted trial balance as of December 31, 2019

6.

Prepare closing entries, post to the general ledger, and carryforward balances to January 1, 2020.

7.

Prepare the following financial statements dated as of December 31, 2019. (Ignore income taxes)

a. Income Statement (multi-step, see Example in textbook)

b. Statement of Stockholders' Equity

c. Balance Sheet (classified)

d. Statement of Cash Flows (indirect method)

8.

Create another tab labeled "Ratios" and prepare a ratio analysis of your company and include the industry averages. Calculate at least one ratio from each category listed: Liquidity, Solvency, and Profitability, and provide an explanation on what it means to the company.

Tutor Answer

TutorLarra
School: Boston College

Hello ...

flag Report DMCA
Review

Anonymous
awesome work thanks

Similar Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors