Question

Southern New Hampshire University ACC 308 - Intermediate Accounting II INSTRUCTIONS FOR MILESTONE 1 (Due Module 3) IMPORTANT NOTE: Make sure to completely review the Rubric for Milestone 1 Use the data from this Milestone and begin working on your final presentation due in Final Project (Module ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs): GENERAL You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare 1 for the year-end audit. Additionally, the company is interested in expanding its business within the next year. Th in assessing their ability to meet their goals. TRIAL BALANCE 2017 TAB Using the Peyton Approved financial data (see bottom of page): Create the necessary adjusting journal entries. Use the REF column to reference the entry to each es Complete the adjusted trial balance REVISED FINANCIAL STATEMENTS Using the preliminary financial statements (yellow tabs) and the Trial Balance 2012. prepare the following Balance Sheet(BS 2017 Revised tab) Income Statement (15 2017 Revised tab) Retained Earnings Statement (RE 2017 Revised tabl Statement of Cash Flows CE 2017 Revised tabl RATIO ANALYSIS Using the revised 2017 financial statements, 2016 financial statements (orange tabs), and 2015 financial prepare a ratio analysis with the following ratios: Current Ratio (Working Capital) Quick Ratio AVR Turnover

Answer 1

PEYTON APPROVED TRIAL BALANCE As of Dec 31, 2017 Adjusting entries Dr Unadjusted TB Dr 67,520.04 68,519.91 700.00 15,506.70 1,238.07 -200.00 200.00 2,114.55 2,114.55 170.49 14,000.00 -2,000.00 1,606.44 -1,200.00 1,000.00 -1,000.00 Cash Accounts Receivable Other receivable - Insurance Baking Supplies Merchandise Inventory Consignment Inventory Prepaid rent Prepaid Insurance Misc. Supplies Baking Equipment Accumulated Depreciation Customer Deposit Accounts Payable Wages Payable Interest Payable Notes Payable Common Stock Beginning Retained Earnings Dividends Bakery Sales Merchandise Sales COGS - Baked COGS - Merchandise Rent expenses Wages expenses Misc. Supplies exp Business license expenses Mis. Expenses Depreciation insurance exp Advertisement expenses Interest exp Telephone exp Gain/Loss on Disposal of equipment 20,262.11 3,383.28 211.46 5,000.00 20,000.00 50,144.84 Adjusted TB Dr 67,520.04 68,519.91 700.00 15,506.70 1,038.07 200.00 2,114.55 2,114.55 170.49 12,000.00 406.44 1,000.00 19,262.11 3,383.28 211.46 5.000.00 20,000.00 50,144.84 1,05,000.00 3,27,322.55 1,205.64 1,05,834.29 859.77 24,549.19 10,670.72 3,000.46 2,045.77 1,363.84 677.86 1,091.08 1,549.74 818.31 490.98 100.00 1,05,000.00 3,27,322.55 1,205.64 1,05,834.29 859.77 24,549.19 10,670.72 3,000.46 2,045.77 1,363.84 677.86 1,091.08 1,549.74 818.31 490.98 100.00 4,29,136.32 4,29,136.32 4,27,936.32 4,27,936.32

PEYTON APPROVED Balance Sheet As of Dec 31, 2017 Liabilities and Owners' Equity Current Liabilities: Accounts Payable Wages Payable Interest Payable Customer Deposit 19,262.11 3,383.28 211.46 1,000.00 Assets Current Assets: Cash Accounts Receivable Baking Supplies Merchandise Inventory Prepaid rent Prepaid Insurance Misc. Supplies Other receivable - Insurance Consignment Inventory Total Current Assets 67,520.04 68,519.91 15,506.70 1,038.07 2,114.55 2,114.55 170.49 700.00 200.00 1,57,884.31 Total Current Liabilities 23,856.85 Long term/Fixed Assets: Baking equipment Accumulated Depreciation Net Fixed Assets 5,000.00 Long term Liabilities Notes Payable Total Long term Liabilities 12,000.00 -406.44 5,000.00 11,593.56 Total Liabilities 28,856.85 Common stock Retained earnings 20,000.00 1,20,621.02 Total Equity 1,40,621.02 Total Assets 1,69,477.87 Total Liabilities and Equity 1,69,477.87

PEYTON APPROVED Income Statement For year ended 12/31/2017 3,27,322.55 1,205.64 3,28,528.19 Bakery Sales Merchandise Sales Total Revenue COGS - Baked COGS - Merchandise Total COGS 1,05,834.29 859.77 1,06,694.06 Gross Profit 2,21,834.13 Operating Expenses Rent expenses Wages expenses Misc. Supplies exp Business license expenses Mis. Expenses Depreciation insurance exp Advertisement expenses Interest exp Telephone exp Gain/Loss on Disposal of equipment Total Operating Expenses 24,549.19 10,670.72 3,000.46 2,045.77 1,363.84 677.86 1,091.08 1,549.74 818.31 490.98 100.00 46,357.95 Net Income 1,75,476.18

PEYTON APPROVED Statement of Retained Earnings For year ended 12/31/2017 Beginning Balance (+) Net Income 50,144.84 1,75,476.18 (-) Dividends 1,05,000.00 Ending Balance 1,20,621.02