Business Finance
American InterContinental University Accounting Cycle & Financial Analysis Worksheet

American InterContinental University

Question Description

I need support with this Accounting question so I can learn better.

the company is HP

https://www8.hp.com/us/en/home.html

I need work documents and the attached excel sheet


Identifying a Business Issue

Wed,10/14/20

Numeric

100

Points Earnednot available

1-2 pages; journal entries, trial balances, financial statements, and ratio calculation


Assignment Details

Assignment Description

This company is an American multinational information technology company. In this assignment, you are going to complete the entire accounting cycle for the last month of the physical year ending May 31, 2015:

The company uses the following accounts:

  • Cash Capital Stock
  • Accounts Receivable
  • Inventory Retained Earnings
  • Prepaid Rent Dividends
  • Unexpired Insurance Income Summary
  • Office Supplies Sales
  • Rental Equipment Salaries Expense
  • Accumulated Depreciation: Computer Equipment Repair Expense
  • Cable Expense
  • Notes Payable Utilities Expense
  • Accounts Payable Rent Expense
  • Interest Payable Office Supplies Expense
  • Salaries Payable Depreciation Expense
  • Dividends Payable Interest Expense
  • Unearned Sales

The company performs adjusting entries monthly. Closing entries are performed annually on May 31.

During May, the corporation entered into the following transactions:

  • May 1: Issued 40,000 shares of capital stock in exchange for a total of $400,000 cash.
  • May 1: Purchased a piece of equipment to be used in the operations of the business for $300,000 that will assist with a more efficient production. Paid $100,000 cash and issued a two-year note payable for $200,000. The note plus all 24 months of accrued interest are due April 30, 2017. The interest rate on the note is 5%.
  • May 1: Paid $15,000 to SSR as three months’ advance rent on the warehouse used in daily manufacturing.
  • May 4: Paid salaries in May totaling $27,000. (Ignore payroll taxes.)
  • May 8: Purchased office supplies (e.g., copy paper, ink toner, pens, etc.) on account from Office Depot, $4,200. Payment due in 30 days.
  • May 15: Excluding the Wilmington General advance, fees earned during the first 15 days of May amounted to $95,100, of which $47,000 was received in cash. The remaining amount will be customer purchases on account.
  • May 18: Purchased on account from Parts Plus, Inc., $1,700 in parts needed to repair a server for a local law firm. (Debit an expense account.) Payment is due in 10 days.
  • May 23: Collected $22,000 of the accounts receivable recorded on May 15.
  • May 26: Paid salaries in May totaling $27,000. (Ignore payroll taxes.)
  • May 27: Paid the account payable to Parts Plus., $1,700.
  • May 28: Declared a dividend of 10 cents per share, payable on June 15, 2015.
  • May 29: Paid the May utilities in the amount of $985.
  • May 31: Purchased a 24-month warranty insurance policy for $24,000. This policy protects the company against liability for defects and warranties for the computer equipment that is sold and leased. The policy goes into effect on June 1, 2015.
  • May 31: Paid monthly cable bill of 684 to Suddenlink.
  • May 31: Collected Sales earned during the second half of May, which amounted to $120,700 and of which $86,300 was received in cash. The remaining amount is customer purchases on account.

Data for Adjusting Entries

  1. The advance payment of rent on May 1 covered a period of three months.
  2. The annual interest rate on the note payable is 5 percent.
  3. The machine purchased May 1, 2015 is being depreciated by the straight-line method over a period of five years.
  4. Office supplies on hand at May 31 are estimated at $440.
  5. Employee salaries earned by employees since the last payroll date (May 26) amounted to $9,642 at the month end.

Instructions

Complete the following for this assignment:

  • Journalize the May transactions.
  • Prepare an unadjusted trial balance.
  • Prepare the necessary adjusting entries for May.
  • Prepare an adjusted trial balance.
  • Prepare a balance sheet, an income statement, and a statement of retained earnings for the year ended May 31, 2015.
  • Prepare closing entries.
  • Prepare a post-closing trial balance. The post-closing trial balance should reveal only permanent accounts that remain open for the next accounting period.
  • Prepare 3 profitability ratios, 3 liquidity ratios, and 2 solvency ratios (be sure to show your calculations).
  • After completing the accounting cycle and financial analysis, summarize the results in a double-spaced paper of 1-2 pages. The paper should be properly developed and formatted according to APA formatting guidelines.

Please submit your assignment.

Unformatted Attachment Preview

General Journal Date Account Titles PR Journal DEBIT CREDIT Trial Balance Unadjusted Trial Balance Debit Totals Credit 0 0 General Journal Date Account Titles General Journal PR CREDIT DEBIT Trial Balance Adjusted Trial Balance Debit Totals Credit 0 0 Name Income Statement Company Name Income Statement For Month Ended Date, Year Name Balance Sheet Company Name Statement of Changes in Owner's Equity For Month Ended Date, Year Company Name Balance Sheet Date, Year General Journal Date Account Titles PR urnal CREDIT DEBIT Trial Balance Post Closing Trial Balance Debit Totals Credit 0 0 ...
Purchase answer to see full attachment
Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Final Answer

Attached.

Running Head: IDENTIFYING A BUSINESS ISSUE

Identifying a Business Issue
Author’s Name
Institutional Affiliation

1

IDENTIFYING A BUSINESS ISSUE

2

Summary of the Accounting Cycle and Financial Analysis.
As of May 31st, 2016, the unadjusted trial balance had both debit and credit of $824,000.
After adjustment, the figure rose to $ 848,642. The total revenue generated was $215,800.
Total expenses amounted to $90,771. Therefore the income earned was (revenue- expenses)
$125,029.
Total current assets per the balance sheet were $453,871, whereas the total Fixed Assets
less depreciation was $295,000. The total net assets were $748 871. This put the company in a
good position as it had way more assets than the liabilities. The current liabilities were at $17...

UT Austin

Anonymous
Thanks for the help.

Anonymous
Outstanding. Studypool always delivers quality work.

Anonymous
Tutor was very helpful and took the time to explain concepts to me. Very responsive, managed to get replies within the hour.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

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