Question

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 be found in Module 8, and by clicking "Next" at the bottom of this page.) 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

Answer 1

Groenke Construction Company Adjusting Enteries Date Particulars Debit in $ Credit in $ 31.12.20x7 Supplies Expense a/c Dr. 2800 To Supplies 2800 (Supplies expensed) 8500 - 5700 = 2800 Dr. 3500 31.12.20x7 Wages Expense a/c To Wages Payable (Wages accrued) 3500 Dr. 8600 31.12.20x7 Insurance Expense a/c To Prepaid Insurance (Insurance expensed) 8600 Dr. 2250 31.12.20x7 Rent Expense a/c To Rent Payable (Rent accrued) 2250 8000 31.12.20x7 Depreciation Expense a/c Dr. To Accum. Depreciation - Equip. (To record depreciation) 8000 Dr. 450 31.12.20x7 Interest Expense a/c To Interest Payable (Interest accrued) 450 625 31.12.20x7 Property Taxes expense a/c Dr. To Property Tax Payable (Property tax accrued) 625 Dr. 425 31.12.20X7 Utilities Expense a/c To Accounts Payable (Expense accrued) 425

Worksheet For the period ending 31.12.20X7 No. Particulars 101 Cash 126 Supplies 128 Prepaid Insurance 167 Equipment 168 Accum. Depreciation - Equip. 201 Accounts Payable Wages Payable Rent Payable Interest Payable Property Tax Payable 251 Long Term Notes Payable 301 Common Stock Retained Earnings 302 Dividends 401 Construction Revenue 623 Wages Expense 633 Interest Expense 640 Rent Expense 683 Property Tax Expense 684 Repairs Expense 690 Utilities Expense Supplies Expense Insurance Expense Depreciation Expense Totals Unadjusted Adjustments Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 15000 15000 15000 8500 2800 5700 5700 11200 8600 2600 2600 175000 175000 175000 19000 8000 27000 27000 9250 425 9675 9675 3500 3500 3500 2250 2250 2250 450 450 450 625 625 625 45000 45000 45000 45000 45000 45000 61900 61900 64800 15750 15750 153000 153000 61800 3500 65300 6250 450 6700 15750 2250 18000 12500 625 13125 6100 6100 5300 425 5725 2800 2800 8600 8600 8000 8000 333150 333150 26650 26650 3 48400 348400 198300 198300

153000 Statement of Income For the period ending 31.12.20X7 Construction Revenue Less: Wages Expense 65300 Interest Expense 6700 Rent Expense 18000 Property Tax Expense 13125 Repairs Expense 6100 Utilities Expense 5725 Supplies Expense 2800 Insurance Expense 8600 Depreciation Expense 8000 Net Income 134350 18650 Statement of Retained Earnings For the period ending 31.12.20x7 Beginning Balance 61900 Net Income 18650 Less:Dividends - 15750 64800

Balance sheet As at 31.12.20X7 Assets Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Assets Current Liabilities Cash 15000 Accounts Payable 9675 Supplies 5700 Wages Payable 3500 Prepaid Insurance 2600 23300 Rent Payable 2250 Interest Payable 450 Non Current Assets Property Tax Payable 625 16500 Equipment 175000 Accum. Depreciation - Equip. -27000 148000 Non Current Liabilities Long Term Notes Payable 45000 Shareholders Equity Common Stock Retained Earnings 171300 Total Liabilities & Equity 45000 64800 109800 171300 Total Assets