Question

Part A

Listed below are the transactions for Ajayi Art, Inc. for the month of October:

• October 1 Started with an investment of $300,000 cash.
• October 1 Purchased office equipment for $25,500 by signing a 10% note (interest and principal to be paid over the next 12 months).
• October 6 Paid rent for the art gallery in advance for the next three months with a check for $4,050.
• October 8 Purchased art supplies from Wacky Art Co. on credit for $12,500.
• October 9 Received of $4,850 from a customer who has commissioned a piece of custom art to be completed by the end of the year.
• October 11 Paid miscellaneous office expenses totaling $514 in cash.
• October 13 Billed customers $10,340 for art classes provided in September.
• October 15 Paid $5,830 to Wacky Art Co.
• October 20 Received $4,020 from customers on account.
• October 30 Recorded $5,180 in salaries for the month of October. Paychecks will be disbursed to employees on November 2^nd.

Using an Excel spreadsheet, prepare the following:

1. Using the ACT350_CTTemplate_Mod2.xlsx file (in the module folder), enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies on Hand, Office Equipment, Accumulated Depreciation, Accounts Payable, Common Stock, Service Revenue, Rent Expense, Miscellaneous Office Expense, Office Salaries Expense, Supplies Expense, Depreciation Expense, Retained Earnings, Unearned Revenue, Office Salaries Payable, Notes Payable, Interest Payable, and Interest Expense.
2. Prepare an unadjusted trial balance.
3. Record depreciation using a five-year life on the office equipment, the straight-line method, and no salvage value. Round to whole numbers. Also, record an adjustment for art supplies used in the amount of $2,660 and record interest expense for the note.
4. Prepare an adjusted trial balance.

5. Prepare an income statement, a statement of retained earnings, and an unclassified balance sheet.
6. Prepare closing entries.

Please refer to the CSU-Global Library (Links to an external site.)Links to an external site. for Lynda.com tutorials on using Microsoft Excel or use the Excel Tutorials link found in the classroom if you need assistance completing the assignment in the software.

Part B

In a one-page memo conforming to the CSU-Global Guide to Writing and APA Requirements (Links to an external site.)Links to an external site., analyze the month's performance. Write a memo as if you are providing an analysis of this month’s financial performance to Ajayi Art's management team.

Answer 1

Part B :-

Answer :-

• The CSU-Global Guide to APA Requirements characterizes primary desires and gauges that encourage interest in the trading of thoughts and discourse through the best possible attribution and documentation of data sources.
• Amid your courses at CSU-Global, you will be solicited to take a gander at an assortment from materials for your assignments.
• In basic reasoning and composing, the utilization of scholarly sources is the establishment of sound research.
• There is a contrast between famous writing, (for example, mainstream magazines, papers, and educational sites) and insightful work, (for example, peer-evaluated inquire about articles).

Things to remember:

• Mainstream writing might be one-sided relying upon the writers, editors and the likelihood that the material announced isn't looked into.
• This writing needs audit so as to assess for legitimacy and validity.
• Insightful or scholastic writing is very much explored and companion audited by people in the set up field of work.
• The motivation behind insightful work is to advise and chat with the scholarly world about research.
• This writing will frequently contain a writing survey, strategy for research, the consequences of the examination, end and References.
• Motivation for research subjects can emerge out of news or other mainstream sources yet most of your exploration is relied upon to originate from insightful sources.
• Each exploration case will expect you to decide how to utilize these assets couple with each other.