Option #1: The Accounting Cycle and Stockholders’ Equity Analysis
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 Part 1, Part 2, and Part 3. You will present Parts 1 and 2 in Excel, and Part 3 of the Portfolio Project in a Word document, following the exact instructions that accompany each part.
Use the assignment templates are attached below.
Part 1:
Katy McCall opens a tax consulting business called Horizon Consultants Inc. and completes the following transactions in March:
March 1: As a sole shareholder, McCall invested $125,000 cash along with $45,000 of office equipment in the company.
March 2: Horizon Consultants Inc. completed services for a client and immediately received $4,000 cash.
March 3: Horizon made credit purchases for office equipment for $1,500 and office supplies for $2,100. Payment is due within 10 days.
March 6: Horizon Consultants Inc. pre-paid $6,000 cash for six months’ rent for their office.
March 10: Horizon completed a $4,250 project for a client who must pay within 45 days.
March 12: Horizon paid $3,600 cash to settle the account payable created on March 3.
March 19: Horizon paid a $6,000 cash premium on a 12-month insurance policy.
March 22: Horizon received $3,250 cash as a partial payment for the work completed on March 10.
March 25: Horizon completed work for another client for $4,250 on credit.
March 29: McCall paid herself a dividend of $3,000 cash.
March 30: Horizon purchased $750 of additional office supplies on credit.
March 31: Horizon paid $350 cash for this month’s utility bill.
Instructions:
Using the following chart of accounts and template, prepare journal entries for the above economic transactions. Include the effect that each transaction has on the accounting equation. Enter your journals to the general ledger using the same file name.
Chart of accounts: cash, office equipment, capital stock, prepaid rent, prepaid insurance, office supplies, accounts payable, consulting revenue, accounts receivable, dividend, utility expense.
Part 2:
The following unadjusted trial balance is for Groenke Construction Company as of year-end for the December 31, 20x7 fiscal year. The December 31, 20x6 credit balance of the stockholders’ equity account is $50,500, and the stockholders invested $45,000 cash in the company during 20x7.
101 Cash $15,000
126 Supplies $8,500
128 Pre-paid insurance $11,200
167 Equipment $175,000
168 Accumulated depreciation – equipment $19,000
201 Accounts payable $9,250
251 Long-term notes payable $45,000
301 Shareholders’ equity $106,900
302 Dividends $15,750
401 Construction Revenue $153,000
623 Wage expense $61,800
633 Interest expense $6,250
640 Rent expense $15,750
683 Property tax expense $12,500
684 Repairs expense $6,100
690 Utilities expense $5,300
TOTALS $333,150 $333,150
Instructions:
Use the template provided to:
Adjustments needed:
Part 3
Assume you are the chief accountant making a presentation during the stockholders’ annual meeting for your corporation. Provide a brief explanation to stockholders on each of the following questions:
Shares
Dividends
Retained Earnings
e) Explain why companies place restrictions on some of their retained earnings.
Reminder: Your Part 3 paper should be two to three pages in length total and conform to CSU-Global Guide to Writing and APA (Links to an external site.)Links to an external site.. Include scholarly references as needed in addition to the course textbook to support your views. The CSU-Global Library is a good place to find these references.
Option #1: The Accounting Cycle and Stockholders’ Equity Analysis Portfolio Project Option #1 is for accounting...
Option #1: The Accounting Cycle and Stockholders’ Equity Analysis 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 Part 1, Part 2, and Part 3. You will present Parts 1 and 2 in Excel, and Part 3 of the Portfolio Project in a Word document, following the...
ortfolio 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 Part 1, Part 2, and Part 3. You will present Parts 1 and 2 in Excel, and Part 3 of the Portfolio Project in a Word document, following the exact instructions that accompany each part. (The templates can...
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 Part 1, Part 2, and Part 3. You will present Parts 1 and 2 in Excel, and Part 3 of the Portfolio Project in a Word document, following the exact instructions that accompany each part. (The templates can...
Part 1: Katy McCall opens a tax consulting business called Horizon Consultants Inc. and completes the following transactions in March: March 1: As a sole shareholder, McCall invested $125,000 cash along with $45,000 of office equipment in the company. March 2: Horizon Consultants Inc. completed services for a client and immediately received $4,000 cash. March 3: Horizon made credit purchases for office equipment for $1,500 and office supplies for $2,100. Payment is due within 10 days. March 6: Horizon Consultants Inc....
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 Part 1, Part 2, and Part 3. You will present Parts 1 and 2 in Excel, and Part 3 of the Portfolio Project in a Word document, following the exact instructions that accompany each part. Use the assignment...
Option #2: The Accounting Cycle and Inventory Analysis Portfolio Project Option #2 is for accounting students who are intuitive learners by nature. You learn best from abstract materials like theories and concepts, enjoy challenges, and tend to be more innovative. For this assignment, you are required to complete the accounting case for Friday Line in Part 1, Bolton Consulting in Part 2, and Aranas Manufacturing in Part 3. Follow the additional instructions provided below. (The templates can be found in...
Part 1: Katy McCall opens a tax consulting business called Horizon Consultants Inc. and completes the following transactions in March: March 1: As a sole shareholder, McCall invested $125,000 cash along with $45,000 of office equipment in the company. March 2: Horizon Consultants Inc. completed services for a client and immediately received $4,000 cash. March 3: Horizon made credit purchases for office equipment for $1,500 and office supplies for $2,100. Payment is due within 10 days. March 6: Horizon Consultants Inc....
Part 2: The following unadjusted trial balance is for Groenke Construction Company as of year-end for the December 31, 20x7 fiscal year. The December 31, 20x6 credit balance of the stockholders’ equity account is $50,500, and the stockholders invested $45,000 cash in the company during 20x7. Account Title Debit Credit 101 Cash $15,000 126 Supplies $8,500 128 Pre-paid insurance $11,200 167 Equipment $175,000 168 Accumulated depreciation – equipment $19,000 201 Accounts payable $9,250 251 Long-term notes payable $45,000 301 Shareholders’ equity $106,900 302 Dividends $15,750 401 Construction Revenue $153,000 623 Wage expense $61,800 633 Interest expense $6,250 640 Rent expense $15,750...
Part 2: The following unadjusted trial balance is for Groenke Construction Company as of year-end for the December 31, 20x7 fiscal year. The December 31, 20x6 credit balance of the stockholders' equity account is $61,900, and the stockholders invested $45,000 cash in the company during 20x7. 1. Account Title Debit Credit 101 Cash $15,000 126 Supplies $8.500 128 Pre-paid insurance $11,200 167 Equipment $175,000 168 Accumulated depreciation - equipment $19,000 201 Accounts payable $9,250 251 Long-term notes payable $45,000 301...
The following unadjusted trial balance is for Groenke Construction Company as of year-end for the December 31, 20x7 fiscal year. The December 31, 20x6 credit balance of the stockholders’ equity account is $50,500, and the stockholders invested $45,000 cash in the company during 20x7. Account Title Debit Credit 101 Cash $15,000 126 Supplies $8,500 128 Pre-paid insurance $11,200 167 Equipment $175,000 168 Accumulated depreciation – equipment $19,000 201 Accounts payable $9,250 251 Long-term notes...