Venture Consultants, Power and Demolition Company, and Warnerwood Accounting Cases

Anonymous
timer Asked: Jan 3rd, 2018
account_balance_wallet $30

Question description

Portfolio Project Option #1 is for accounting students who are sensing learners, and learn best from concrete materials and examples. If this is your learning style preference, you are practical and careful with detail. For this assignment, you are required to complete all three accounting cases: Venture Consultants, Power and Demolition Company, and Warnerwood. You will then present Parts 1, 2, and 3 of the Portfolio Project in Excel as journal entries, following the exact instructions that accompany each part.

Assignment Template attached below

Part 1:

Denzel Brooks opens a web consulting business called Venture Consultants and completes the following transactions in March:

March 1: Brooks invested $150,000 cash along with $22,000 of office equipment in the company.
March 2: Venture Consultants pre-paid $6,000 cash or six months’ rent for their office.
March 3: Venture Consultants made credit purchases for office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days.
March 6: Venture Consultants completed services for a client and immediately received $4,000 cash.
March 9: Venture Consultants completed a $7,500 project for a client who must pay within 30 days.
March 12: Venture Consultants paid $4,200 cash to settle the account payable created on March 3.
March 19: Venture Consultants paid a $5,000 cash premium on a 12-month insurance policy.
March 22: Venture Consultants received $3,500 cash as a partial payment for the work completed on March 9.
March 25: Venture Consultants completed work for another client for $3,820 on credit.
March 29: Brooks withdrew $5,100 cash from the company for personal use.
March 30: Venture Consultants purchased $600 of additional office supplies on credit.
March 31: Venture Consultants paid $500 cash for this month’s utility bill.

Instructions:

Prepare journals for the above economic transactions. Use the file called "Assignment Template" in the assignment section for Part #1, Venture Capital Consultants. Enter your journals to the general ledger using the same file name.

Part 2:

The following unadjusted trial balance is for Power and Demolition Company as of year-end for the April 30, 2015 fiscal year. The April 30, 2014 credit balance of the owner's equity account is $46,900, and the owner invested $40,000 cash in the company during 2015.

NO.

Account Title

Debit

Credit

101

Cash

$7,000

126

Supplies

$16,000

128

Pre-paid insurance

$12,600

167

Equipment

$200,000

168

Accumulated depreciation – equipment

$14,000

201

Accounts payable

$6,800

251

Long-term notes payable

$30,000

301

Brooks, equity

$86,900

302

Brooks, withdrawals

$12,000

401

Demolition fees earned

$187,000

623

Wage expense

$41,400

633

Interest expense

$3,300

640

Rent expense

$13,200

683

Property tax expense

$9,700

684

Repairs expense

$4,700

690

Utilities expense

$4,800

TOTALS

$324,700

$324,700

Instructions:

a) Journalize the following adjusting entries as of fiscal year-end April 30, 2015.
b) Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
c) Create financial statements.

  1. The supplies available at the end of fiscal 2015 year are at a cost of $7,900.
  2. The cost of expired insurance for the fiscal year is $10,600.
  3. Annual depreciation on equipment is $7,000; no other depreciation adjustment was made in 2015.
  4. The April utilities expense of $800 is not included in the adjusted trial balance, because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded..
  5. The company's employees have earned $2000 of accrued wages in the fiscal year.
  6. The rent expense not yet paid or recorded in the fiscal year is $3000.
  7. Additional property taxes of $550 have been assessed for the fiscal year, but have not yet been paid or recorded in the accounts.
  8. The $300 accrued interest for April has not yet been paid and reported.

Part 3:

The Warnerwood Company uses a perpetual inventory system. It entered the following purchases and sales transactions for March into the system:

Date

Activities

Units Acquired at Cost

Cost per Unit

Units Sold at Retail

Price per unit

March 1

Beginning inventory

100 units

$50

March 5

Purchase

400 units

$55

March 9

Sales

420

$85

March 18

Purchase

120 units

$60

March 25

Purchase

200 units

$62

March 29

Sales

160 units

$95

Totals

820 units

580 units

Instructions:

Show all of your work in an Excel spreadsheet for the following tasks:

  1. Compute the number of units available for sale.
  2. Compute the number of units in ending inventory.
  3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and (c) weighted average. (Round the average cost per unit to 2 decimal places.)
  4. Compute the gross profit earned by the company for each of the three costing methods. (Round the average cost per unit to 2 decimal places.)

Portfolio Project Option 1 Student Template Option #1: Venture Consultants, Power and Demolition Company, and Warnerwood Accounting Cases PART 1: Date Venture Consultants The month of March transactions Account Names Debit Credit 1-Mar 2-Mar 3-Mar 6-Mar 9-Mar 12-Mar 19-Mar 22-Mar 25-Mar 29-Mar 30-Mar 30-Apr $216,420 $216,420 Power and Demolition Co, Adjustment April 30, 2015 PART 2A Adjust # Account Names 1 Debit Credit 2 3 4 5 6 7 8 PART 2B Acct # 101 126 128 167 201 251 301 302 401 623 633 640 683 684 690 Power and Demolition Co, Adjustment April 30, 2015 Continued ATB UTB ADJUSTMENT Account Names Debit Credit Debit Credit Debit Credit Cash $7,000 $7,000 Supplies $16,000 Pre-paid insurance $12,600 Equipment $200,000 Accumulated. Depreciation $14,000 Account payable $6,800 Utilities payable Wages payable Rent Payable PropertyTxPayable Interest payable Long-term notes payable $30,000 Bonn, Equity $86,900 Bonn, Withdrawals $12,000 Demolition fees earned $187,000 Wage expense $41,400 Interest expense $3,300 Rent expense $13,200 Property tax expense $9,700 Repairs expense $4,700 Utilities expense $4,800 Supply expense Insurance expense Depreciation expense TOTALS $324,700 $324,700 BE SURE TO CREATE A FINANCIAL STATEMENT FROM THE ABOVE ATB Warnerwood Company Column-> A B C D E F Date Activities # Units BuyCost/unit #Units SoldPrice/unit Cost GAS Sales 1-Mar BI 5-Mar TI 9-Mar TO 18-Mar TI 25-Mar TI 29-Mar TO TOTAL PART 3 Q1. Units in Available for Sales is BI + TI (Column B)= Q2. BI + TI - TO = EI= 820 minus 580 Units (BI + TI) = equals Q3. FIFO Q3. LIFO Q3. Weighted Average Weighted cost/unit= Cost EI= Q.4 Q4. FIFO Q4. LIFO Q4. WtAvg Sales COGS/Method G Gross Profit 240

Tutor Answer

Fin Acc Guru
School: Carnegie Mellon University

Here is the answer. Thank you.Please let me know if any clarification to answer is required. I will provide that. Thank you

Portfolio Project Option 1 Student Template
Option #1: Venture Consultants, Power and Demolition Company, and Warnerwood Accounting Cases
PART 1:
Date
1-Mar

2-Mar

Venture Consultants
Account Names
Cash
Office Equipment
Capital

100
105
300

150000
22000

Prepaid Rent

101
100

6000

Office Equipment
Office Supplies
Accounts Payable

105
104
200

3000
1200

Cash
Service Revenue

100
401

4000

Accounts Receivable

103
401

7500

200
100

4200

102
100

5000

Cash
Accounts Receivable

100
103

3500

Accounts Receivable

103
401

3820

302
100

5100

104
200

600

500
100

500

Cash
3-Mar

6-Mar

9-Mar

Service Revenue

12-Mar

Accounts Payable
Cash

19-Mar

Prepaid Insurance
Cash

22-Mar

25-Mar

Service Revenue
29-Mar

Drawings
Cash

30-Mar

Office Supplies
Accounts Payable

30-Apr

The month of March transactions
Led Ref
Debit
Credit

Utilities Expense

Cash

172000

6000

4200

4000

7500

4200

5000

3500

3820

5100

600

500
$216,420

$216,420

Power and Demolition Co, Adjustment April 30, 2015

PART 2A
Adjust #

Account Names
1 Supplies Expense
Office Supplies
2 Insurance Expense
Prepaid Insurance
3 Depreciation Expense
Accumulated Depreciation
Utilities
expense
4
Utilities payable
5 Wages expense
Wages payable
6 Rent expense
Rent Payable
7 Property tax expense
Property Tax Payable
8 Interest expense
Interest payable

PART 2B
Acct #
101
126
128
167
201

251
301
302
401
623
633
640
683
684
690

Debit

Credit
8100
8100

10600
10600
7000
7000
800
800
2000
2000
3000
3000
550
550
300

Power and Demolition Co, Adjustment April 30, 2015
UTB
A...

flag Report DMCA
Review

Anonymous
Goes above and beyond expectations !

Similar Questions
Hot 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