Question

Question

Part A Adomain is a start-up company that started last year, in Year 0. You are assigned to make the necessary adjustments for Adomain in Year 1. In the following tabs you will be given Adomain's Year 0 Balance Sheet and Income Statement, as well as a list of transactions for Year 1. You are also given a blank transaction analysis sheet where you should record the Year 1 transactions. The transaction analysis page, if used correctly, will help you determine the ending balances in all accounts. The transactions include normal economic events during the course of the year and adjustments that need to be recorded at the end of the year (HINT: There are potential adjusting entries, which are transactions 3, 4, 10 and 11. You will need to consider the facts on your own to determine the adjustments). Hints: Whenever possible, use formulas to reference cells. This not only reduces the likelihood of error, but makes it easier for us to understand why you got the number you did. This applies to all assignments. in using the transaction analysis sheet, link beginning balances in the top row to the Year o ending balances in the balance sheet. Be sure to calculate ending balances at the bottom of the sheet. These ending balances will link to the Year 1 Balance Sheet.

YR 0 Income Statement

YR 0 Balence Sheet

Transactions

Transaction Analysis

YR 1 Income Statement

YR 1 Balance Sheet

(In using the transaction analysis sheet, link the beginning balances in the top row to the Year 0 ending balences in the balance sheet. Be sure to calculate balances at the bottom of the sheet. These ending balances will link to the Year 1 balance sheet.)

Answer 1

	Assets									=	Liabilities						+	Equity
	Cash	Marketable Securities	Accounts Receiavble	Inventory	Prepaid Asset	Supplies	PP&E (net)	Intangible Assets	Other long term Assets		Accounts Payable	Notes Payable	Unearned Revenue	Income Tax Payable	Salaries Payable	Interest Payable		Common Stock	Retained Earnings
Beg Bal	$         80,000	$          6,700	$         20,000	$         25,000			$        34,700	$        10,500	$        15,000		$        45,000	$        28,500	$        50,000	$          4,300				$         45,000	$         19,100
1	$        -32,000							$        32,000
2	$        -18,500								$        18,500
3	$        -36,000				$         36,000
4	$         60,000																	$         60,000
5a			$       120,000																$       120,000
5b				$       -16,000															$        -16,000
5c	$        -10,000																		$        -10,000
6	$        -13,400																		$        -13,400
7	$         24,000												$        24,000
8	$         65,000		$        -65,000
9	$          -4,300													$         -4,300
10	$          -3,000			$         15,000							$        12,000
11	$         20,000		$        -20,000
12a	$          -7,000		$            7,000
12b			$          -7,000			$          7,000
13	$          -6,000	$          6,000
14	$         20,000											$        20,000
15	$          -4,000														$        30,000				$        -34,000
16	$          -3,500													$          2,000					$          -5,500
17					$       -27,000														$        -27,000
18													$         -4,000						$            4,000
19						$         -5,000													$          -5,000
20																$              500			$              -500
Totals	$       131,300	$        12,700	$         55,000	$         24,000	$           9,000	$          2,000	$        34,700	$        42,500	$        33,500		$        57,000	$        48,500	$        70,000	$          2,000	$        30,000	$              500		$       105,000	$         31,700

Assets
Cash	$      131,300
Marketable Securities	$        12,700
Accounts Receiavble	$        55,000
Inventory	$        24,000
Prepaid Asset	$          9,000
Supplies	$          2,000
PP&E (net)	$        34,700
Intangible Assets	$        42,500
Other long term Assets	$        33,500
Total Assets	$      344,700
Liabilities & Equity
Accounts Payable	$        57,000
Notes Payable	$        48,500
Unearned Revenue	$        70,000
Income Tax Payable	$          2,000
Salaries Payable	$        30,000
Interest Payable	$              500
Common Stock	$      105,000
Retained Earnings	$        31,700
Total Liabilities & Equity	$      344,700

Income Statement
Revenues
Sales Revenue	$      120,000
Service Revenue	$          4,000
Expenses
Cost of Goods Sold	$        16,000
Sales Commission	$        10,000
Research & Development Costs	$        13,400
Salaries Expense	$        34,000
Supplies Expense	$          5,000
Rent Expense	$        27,000
Income from Operations	$        18,600
Interest Expense	$              500
Income before Taxes	$        18,100
Income Tax	$          5,500
Net Income	$        12,600