Question

part 3 and 4 a,b,c part 6, 7 need done asap!

All work must be completed using this Excel spreadsheet. Al journal extries, financial statements, etc. must be prepared in cean, proper form. Reference your textbook and past courses for examples or templates to model Use the current year for dating purposes. This project is valued at 120 points. The grading rubric is available on the last sheet labeled "Grading Rubric." Information on using Excel can be found in the Excel Notes section below. Please be aware, points are allocated for the use of Excel (see rubrie), Click on the tabs at the bottom of the bottom to familiarize yourself with the project. Check figures are provided for 3 key items to help ensure you are on the correct track. EXCEL NOTES: Use Excel to link all of your journal entries and financial statements. This will be great practice and it reduces the likelihood of errors. There is a video available in Blackboard to guide you on using Excel and navigating the project. * Also be sure to take advantage of Excel by using formulas to calculate/sum groups of numbers. - DO NOT force any cels to match check figures given. Any adjustments in the T-Accounts or financial statements not supported by legitimate adjusting or closing entries will be considered financial statement misrepresentation, sufficient to result in a falling grade. *Use the format button to add dollar signs, underlining and double underlining when appropriate. DO NOT put dollar signs on every line as it will cost you points. REQUIREMENTS: Part 1 Post the Unadjusted Trial Balance totals to the T.Accounts on the sheet labeled "Accounts. These numbers will represent your beginning balances Part 2 Record the adjusting journal entries required for items AND post them to the T-accounts. Add or extend lines on any T Accounts if necessary. art 3 Prepare an Adjusted Trial Balance for Gatsby, Inc. using the updated T-Accounts Adjusted TB check figure $1,279,200 art 4 Prepare, in good form, Financial statements on each specified sheet in the following order: a Multi-Step Income Statement and prepare a bar or ple chart for a visual representation of expenses. b Statement of Stockholders' Equity Classified Balance Sheet Total Assets check figure: $850,750 art 5 Using the financial statements, calculate the following ratios on the specified sheet and briefly 2 or 3 sentences) interpret the ratios for Gatsby, Inc. a Working Capital b Current Ratio Quick Ratio (Acid Test) d Debt to Equity e Times Interest Earned "art 6 Record closing journal entries AND post them to the T-accounts. art 7 Prepare a Post-Closing Trial Balance using the updated T-accounts. Total debit check figure: $924,750

Answer 1

Gatsby Inc. Adjusting Enteries Date Particulars 31.12.XX Wages Expense a/c Dr. To Wages Payable (Wages accrued) 3000 x 2/5 Debit in $ Credit in $ 1200 1200 8000 8000 31.12.XX Depreciation Expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) (160000-0)/10 = 16000 / 2 = 8000 30000 31.12.XX Unearned Revenue a/c Dr. To Revenue (Revenue earned) 45000 x 2/3 30000 31.12.XX Insurance Expense a/c Dr. 6000 To Prepaid Insurance (Insurance paid for 3 months) 24000 x 3/12 Adjusted Trial Balance For the period ending 31.12.XX Particulars Cash Accounts Receivable Prepaid Insurance Supplies Inventory Land Building Accum. Depre - Building Equipment Accum. Depre - Equipment Accounts Payable Interest Payable Wages Payable Unearned Revenue - Alarm Systems Long Term Bank Note Payable Common Stock Retained Earnings Dividends Revenue Cost of goods sold Depreciation Expense Insurance Expense Interest Expense Rent Expense Supplies Expense Utilities Expense Wages Expense Totals Post Closing Debit in $ Credit in $ Debit in $ Credit in $ 121550 121550 265000 265000 18000 18000 200 200 85000 85000 75000 75000 200000 200000 50000 50000 160000 160000 16000 16000 160500 160500 3750 3750 1200 1200 15000 15000 150000 150000 310000 310000 124750 218300 7000 440000 132500 18000 21000 3750 24000 4300 9700 126200 1271200 1271200 924750 924750 6000 29000 31.12.xx Accounts Receivable a/c Dr. To Revenue (Revenue on account) 29000 31.12.xx Interest Expense a/c Dr. 3750 To Interest Payable (Interest accrued) 150000 x 5% x 6/12 3750 31.12.XX Supplies Expense a/c Dr. 4300 To Supplies (Supplies expensed) 300 +4200 - 200 4300 10000 10000 31.12.XX Depreciation Expense a/c Dr. To Accum. Depre- Build (To record depreciation) (200000-0)/20 = 10000

Statement of Income For the period ending 31.12.XX Revenue Cost of goods sold Gross Profit 440000 -132500 307500 Operating Expenses: Depreciation Expense Insurance Expense Rent Expense Supplies Expense Utilities Expense Wages Expense Operating Income Non Operating items Interest Expense Net Income 18000 21000 24000 4300 9700 126200 203200 104300 -3750 100550 Statement of Retained Earnings For the period ending 31.12.XX Beginning 124750 Net Income 100550 225300 Dividends -7000 218300

Amounts in $ Amounts in $ 160500 3750 1200 15000 180450 Balance sheet As at 31.12.XX Assets Amounts in $ Amounts in $ Liabilities Current Assets Current Liabilities Cash 121550 Accounts Payable Accounts Receivable 265000 Interest Payable Prepaid Insurance 18000 Wages Payable Supplies 200 Unearned Revenue - Alarm Systems Inventory 85000 489750 Non Current Liabilities Non Current Assets Long Term Bank Note Payable Land 75000 Building 200000 Accum. Depre - Building -50000 150000 Shareholders Equity Equipment 160000 Common Stock Accum. Depre - Equipment - 16000 144000 Retained Earnings Total Assets 858750 Total Liabilities & Equity 150000 310000 218300 528300 858750 Working Capital = Current Assets - Current Liabilities = 489750 - 180450 = 309300 Current Ratio = Current Assets / Current Liabilities = 489750/180450 = 2.71 Quick Ratio - Quick Assets / Current Liabilities = (121550 + 265000) / 180450 = 2.14 Debt to Equity = Total Liabilities/Total Equity = ( 180450 + 150000)/528300 = 0.625 Times Interest Earned = Operating Income / Interest Expense = 104300 / 3750 = 27.81 times