Accounting Cycle

Business Finance

Question Description

You need to finished the excel. And you only need to fill in all cells that are shaded in the light teal color.

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Template: A template has been provided to you which contains the beginning balance sheet and a chart of accounts containing all accounts you will use. Please use the appropriate tabs for each portion of the assignment. You will need to fill in all cells that are shaded in the light teal color. I strongly suggest linking items from tab to tab so that your spreadsheet flows properly and so that you can easily fix mistakes at the end! This is going to save you a great deal of time! For example, instead of typing in each account name when making your journal entries, enter “=” and then go find the account you want to use in the chart of accounts, click on it, and press enter. Then the account title will show up in your journal entry where you placed it. Also, link the t-accounts to the beginning balance sheet and your journal entries, and then link the t-account ending balances to your trial balance. That way, if you don’t balance, you can play around with your prior work and find your mistake instead of having to go back and do everything over! Required: • Prepare the journal entries required to record the transactions for the year in the ‘Transaction Entries’ tab. Please enter your journal entries in the template using the same numbering system as listed with the transaction details. • Prepare the adjusting entries in the ‘Adjusting Entries’ tab using the same system within the template. • Post all journal entries to the appropriate t-accounts. Be sure to enter the beginning balances in the accounts. The T-accounts are all provided in the ‘T-accounts’ tab for your postings. • Prepare a trial balance in the appropriate tab. • Prepare closing entries in the appropriate tab. • Prepare the income statement and balance sheet in the appropriate tabs. BALDWIN COMPANY INFO: • Baldwin has a fiscal year end of March 31st. You will be working through the accounting cycle from April 1, 2019March 31, 2020. • Inventory is periodic FIFO. o *Note: Since Baldwin uses a periodic inventory system, you will account for the COGS at the end of the year (not along with the sales transactions). • Baldwin sells the duffle bags for $295 each and the backpacks for $240 each. • For simplicity, the sales and sales return entries for all bags sold individually in the shop will be recorded at the end of each quarter. BEGINNING BALANCES: • The inventory layers at 3/31/19 were as follows: o Duffels ▪ 45 duffles @ $150 each = $6,750 (first in) ▪ 72 duffles @ $130 each = $9,360 ▪ 12 duffles @ $165 each = $1,980 (last in) o Backpacks ▪ 92 backpacks @ $79 each = $7,268 (first in) ▪ 60 backpacks @ $75 each = $4,500 ▪ 8 backpacks @ $100 each = $800 ▪ 38 backpacks @ $70 each = $2,660 (last in) • An annual (12 month) rent payment of $54,000 was made on July 1, 2018. • A note payable of $100,000 was taken out on January 1, 2018, and is due on June 30, 2019. 2019-2020 TRANSACTIONS: 1. On April 22nd, Baldwin purchased 35 duffle bags at $180 per bag on account. 2. On April 28th, Baldwin collected the cash for a receivable totaling a. If your first name starts with A-G; $4,000 b. If your first name starts with H-O; $5,500 c. If your first name starts with P-Z; $7,000 3. On May 7th, Baldwin purchased 50 backpacks at $72 per bag on account. 4. Upon receiving the May 7th backpack order, it was discovered that 12 backpacks had faulty stitching. All faulty bags were returned to the supplier on May 14th, and Baldwin’s account was credited. 5. On June 30th, Baldwin recorded the individual in-shop sales for 89 duffles and 90 backpacks during the 1st quarter. All in-shop sales were cash sales. 6. On June 30th, Baldwin paid wages for the quarter of $14,280 plus paid the amount due for wages earned and not yet paid as of the previous quarter. You may ignore payroll taxes. 7. On June 30th, you realized that the bookkeeper forgot to accrue interest on the $100,000 note for the entire fiscal year ending March 30, 2019. Please make the correcting entry for interest due for the fiscal year ending March 30, 2019. The note required interest at the following percentage: a. If your last name starts with A-E; 5% b. If your last name starts with F-K; 7% c. If your last name starts with L-S; 9% d. If your last name starts with T-Z; 11% 8. On June 30th, all interest due was paid and the note was paid. 9. On June 30th, the 2018 annual rent payment expired. 10. On July 1st, Baldwin made the annual rent payment of $54,000 and recorded it as prepaid rent. 11. On July 19th, Baldwin purchased 35 duffles at $210 per bag on account. 12. On August 2nd, Baldwin made a large order sale for 100 backpacks on account. 13. On August 15th, Baldwin paid off an account payable totaling a. If your birth month lies within January-April; $30,000 b. If your birth month lies within May-August; $40,000 c. If your birth month lies within September-December; $50,000 14. On September 8th, Baldwin purchased and paid for 90 backpacks at $79 per bag. 15. On September 30th, Baldwin recorded the individual in-store sales for 70 duffles and 45 backpacks during the 2nd quarter. All in-store sales were cash sales. 16. On September 30th, Baldwin paid wages for the quarter of $14,280. 17. On Oct. 10th, Baldwin purchased 250 duffles at $160 per bag and 200 backpacks at $75 per bag on account. 18. On December 31st, Baldwin recorded the individual in-store sales for 230 duffles and 195 backpacks during the 3rd quarter. All in-store sales were cash sales. 19. Baldwin’s return policy allows returns with the receipt. During the 3rd quarter (Oct.-Dec.), customers made sales returns as follows: a. If your birth date lies within 1-10; 50 duffles b. If your birth date lies within 11-20; 30 duffles c. If your birth date lies within 21-31; 10 duffles *Customers were given a cash refund for returned merchandise. 20. On December 31st, Baldwin paid wages for the quarter of $14,280. 21. On Jan. 18th, Baldwin purchased 100 duffles at $175 per bag and 80 backpacks at $85 per bag for cash. 22. On Feb. 10th, Baldwin paid off an account payable totaling a. If your birth month lies within January-April; $60,000 b. If your birth month lies within May-August; $40,000 c. If your birth month lies within September-December; $20,000 23. On March 1, Baldwin collected on the receivable from the August 2 nd sale. 24. On March 31st, Baldwin recorded the individual in-store sales for 140 duffles and 90 backpacks during the 4th quarter. All in-store sales were cash sales. 25. On March 31st, Baldwin paid wages for the quarter of $14,280. 2020 ADJUSTING ENTRIES: 26. Adjust for Inventory. The physical inventory count indicated there were the following inventory items on hand: a. If your first name starts with A-G; 65 duffles & 35 backpacks b. If your first name starts with H-O; 48 duffles & 32 backpacks c. If your first name starts with P-Z; 25 duffles & 34 backpacks *Remember: Threads uses a periodic FIFO inventory method *HINT: The first adjusting entry effectively gets the inventory account balance corrected, gets the purchase and purchase returns accounts down to zero, and calculates what COGS should be. The COGS value is a plug so you should not have that value until you know the others. You want to adjust merchandise inventory to get the old balance of inventory off the books as that was “sold” according to our FIFO method. You also want to separately adjust it (one will be a credit and the other a debit) to put the inventory value that should be reflected on the quarter ending balance sheet into the account. You then want to empty out the purchase and purchase return accounts. After all of this, the COGS value is just a plug of the other values listed so that your debits equal your credits. The first calculations/pieces of the entry identify everything we need to figure out what the COGS value should be. 27. Adjust for rent expense. 28. Equipment has a salvage value equal to $500 times the number of letters in your first name ( 5 ). Straight line depreciation is used, and the life of the equipment is 7 years. Baldwin Balance Sheet As of March 31, 2019 Assets Cash Accounts Receivable Prepaid Rent Merchandise Inventory Total Current Assets Equipment Less: Accumulated Depreciation Net Equipment Total Assets $625,000 $10,500 $13,500 $33,318 $682,318 $112,000 $33,600 $78,400 $760,718 Liabilities and Stockholders' Equity Accounts Payable Wages Payable Interest Payable Notes Payable Total Liabilities $58,000 $2,160 $0 $100,000 $160,160 Retained Earnings Total Liabilities and Stockholders' Equity $600,558 $760,718 Chart of Accounts Cash Accounts Receivable Prepaid Rent Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Notes Payable Retained Earnings Income Summary Sales Sales Returns Purchases Purchase Returns Cost of Goods Sold Wage Expense Rent Expense Interest Expense Depreciation Expense TRANSACTION JOURNAL ENTRIES based on transaction info provided in your project instructions Trans. # 1 2 3 4 5 6 7 8 9 10 11 12 13 Date Debit Credit Debit $ Credit $ 14 15 16 17 18 19 20 21 22 23 24 25 ADJUSTING ENTRIES based on edjusting info provided in your project instructions Trans. # 26 27 28 Date Debit Credit Debit $ ions Credit $ T-Accounts Beg. Bal. these should tie to the beginning balance sheet, transaction entries, & adjusti Cash Accounts Receivable Beg. Bal. End. Bal. End. Bal. Merchandise Inventory Equipment Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Payable Wages Payable Beg. Bal. End. Bal. Notes Payable Retained Earnings Beg. Bal. End. Bal. Sales Returns Beg. Bal. Purchases Beg. Bal. End. Bal. End. Bal Cost of Goods Sold Wage Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal Interest Expense Depreciation Expense Beg. Bal. Beg. Bal. End. Bal End. Bal. unts t, transaction entries, & adjusting entries ceivable Prepaid Rent Beg. Bal. End. Bal. ent Accumulated Depreciation Beg. Bal. End. Bal. yable Interest Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. arnings ses Sales Beg. Bal. Beg. Bal. End. Bal. End. Bal. Purchase Returns Beg. Bal. End. Bal. ense Expense Rent Expense Beg. Bal. End. Bal. Trial Balance These should tie to your t-accounts Debit Cash Accounts Receivable Prepaid Rent Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Notes Payable Retained Earnings Sales Sales Returns Purchases Purchase Returns Cost of Goods Sold Wage Expense Rent Expense Interest Expense Depreciation Expense TOTAL Credit CLOSING ENTRIES Review standard closing entries in ALEKS if needed Trans. # 29 30 31 Date Debit Credit Debit Amt Credit Amt Baldwin Income Statement For the Year Ended March 31, 2020 Sales Minus: Sales Returns Net Sales Beginning Merchandise Inventory Plus: Purchases Minus: Purchase Returns Minus: Ending Merchandise Inventory Cost of Goods Sold Wage Expense Rent Expense Interest Expense Depreciation Expense Total Expenses Net Income Baldwin Balance Sheet As of March 31, 2020 Assets Cash Accounts Receivable Prepaid Rent Merchandise Inventory Total Current Assets Equipment Less: Accumulated Depreciation Net Equipment Total Assets Liabilities and Stockholders' Equity Accounts Payable Wages Payable Interest Payable Notes Payable Total Liabilities Retained Earnings Total Liabilities and Stockholders' Equity ...
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