Question

I am in desperate need of help with this project. Apparently my answers are all wrong.

3:02 PM Thu Feb 27 4796% AC 321 Intl - FA19 - Comprehensive Project Insert Draw Formulas Data Review View 8 Q o Calibri (Body) 12 B U Home B ^ A = 1 EE tx ã į 19 2 3 4 All work must be completed using this Excel spreadsheet. All journal extries, financial statements, etc. must be prepared in clean, proper form. Reference your textbook and past courses for examples or templates to model. Use the current year for dating purposes. This project is valued at 120 points. The grading rubric is available on the last sheet labeled "Grading Rubric." Information on using Excel can be found in the Excel Notes section below. Please be aware, points are allocated for the use of Excel (see rubric). Click on the tabs at the bottom of the bottom to familiarize yourself with the project. Check figures are provided for 3 key items to help ensure you are on the correct track 6 7 & 10 EXCEL NOTES: *Use Excel to link all of your journal entries and financial statements. This will be great practice and it reduces the likelihood of errors. There is a video available in Blackboard to guide you on using Excel and navigating the project. * Also be sure to take advantage of Excel by using formulas to calculate/sum groups of numbers. * DO NOT force any cells to match check figures given. Any adjustments in the T-Accounts or financial statements not supported by legitimate adjusting or closing entries will be considered financial statement misrepresentation, sufficient to result in a failing grade. *Use the format button to add dollar signs, underlining and double underlining when appropriate. DO NOT put dollar signs on every line as it will cost you points. REQUIREMENTS: Part 1 Post the Unadjusted Trial Balance totals to the T-Accounts on the sheet labeled "T-Accounts." These numbers will represent your beginning balances. 22 Part 2 Record the adjusting journal entries required for items AND post them to the T-accounts. Add or extend lines on any T-Accounts if necessary. 24 Part 3 Prepare an Adjusted Trial Balance for Gatsby, Inc. using the updated T Accounts Adjusted TB check figure: $1,279,200 26 Part 4 Prepare, in good form, financial statements on each specified sheet in the following order: a Multi-Step Income Statement and prepare a bar or ple chart for a visual representation of expenses. b Statement of Stockholders' Equity Classified Balance Sheet Total Assets check figure: $850,750 31 Part 5 Using the financial statements, calculate the 5 following ratios on the specified sheet and briefly ( 2 or 3 sentences) interpret the ratios for Gatsby, Inc. a Working Capital b Current Ratio C Quick Ratio (Acid Test d Debt to Equity e Times Interest Earned 29 Part 6 Record closing journal entries AND post them to the T-accounts. Part 7 Prepare a Post-Closing Trial Balance using the updated T-accounts. 40 Total debit check figure: $924,750 Project Instructions Unadjusted Trial Bal... Adjusting Journal En.. T-Accounts Adjusted Trial Balance Income Statement Statement Shar +

Answer 1

From the information given above, i have prepared Adjusted trial balance, Journal entries, Statement of Income,Statement of Retained Earnings, Statement of Shareholders Equity & Balance Sheet, Relevant Ledger Accounts.

Gatsby Inc Journal Entries Dr A Date Accounts Cr 31, Dec Wages expense 1200 To Wages payable 1200 (Wages for 5 days $3000, for wages on 30 & 31 December 3000/5=600*2=1200) Date Accounts Dr Cr 31, Dec Interest Expense 3750 To Interest Payable 3750 (Note Payable 150000 at a 5% interest, 150000*5%= 7500 from 1July to 31, Dec (7500*6)/12=3750) B G 4300 4300 31, Dec Depreciation expense 16000 Accumulated Depreciation 16000 Equipment (cost=160000, useful life=10 years=160000/10=16000 annually) 31, Dec Supplies expense To Supplies Opening balance Add: Purchases Less: Closing Balance Supplies expense 300 4200 200 4300 C 31, Dec Unearned Revenue 30000 To Revenue 30000 (Completed 2 out of 3, advance received $45000 45000/3=15000*2=30000) H 31, Dec Building 10000 Accumulated Depreciation 10000 Building (Cost=200000, useful life=20 years=200000/20=10000 annually) D 6000 6000 31, Dec Insurance expense To Prepaid Insurance (Insurance paid 24000 on 1, October From Oct to Dec 24000/12 *3=6000) E 31, Dec 29000 Accounts Receivable To Revenue 29000

Gatsby Inc UnAdjusted Trial Balance - Dr I cr 121550 236000 24000 4500 85000 75000 200000 40000 160000 8000 160500 Adjusted Trial Balance Dr I ar 121550 265000 18000 200 85000 75000 200000 50000 4 Account 5 Cash 6 Accounts Receivable 7 Prepaid Insurance 8 Supplies 9 Inventory 10 Land 11 Building 12 Accumulated Depreciation- Building 13 Equipment 14 Accumulated Depreciation-Equipment 15 Accounts Payable 16 Interest Payable 17 Wages Payable 18 Unearned Revenue-Alarm systems 19 long Term Bank Note Payable 20 Common Stock 21 Retained Earnings 22 Dividends 23 Revenue 24 Cost of goods sold 25 Depreciation expense 26 Insurance expense 160000 24000 160500 3750 45000 150000 310000 124750 1200 15000 150000 310000 124750 7000 7000 381000 440000 132500 132500 26000 21000 15000

24000 4500 85000 75000 200000 18000 200 85000 75000 200000 40000 50000 160000 160000 24000 8000 160500 160500 7 Prepaid Insurance 8 Supplies 9 Inventory 10 Land 11 Building 12 Accumulated Depreciation-Building 13 Equipment 14 Accumulated Depreciation-Equipment 15 Accounts Payable 16 Interest Payable 17 Wages Payable 18 Unearned Revenue-Alarm systems 19 long Term Bank Note Payable 20 Common Stock 21 Retained Earnings 22 Dividends 23 Revenue 24 Cost of goods sold 25 Depreciation expense 26 Insurance expense 27 Interest expense 28 Rent expense 29 Supplies expense 30 Utilities expense 31 Wages expense 32 Total 33 45000 150000 310000 124750 3750 1200 15000 150000 310000 124750 7000 7000 381000 440000 132500 15000 132500 26000 21000 3750 24000 4300 24000 9700 125000 1219250 9700 126200 1279200 1219250 1279200

35 34 Gatsby Inc Income Statement for the period ending 31, December 36 Particulars Amount Amount 37 Revenue 440000 38 Less:Cost of goods sold 132500 39 Gross Profit 307500 40 Less:Operating Expenses 41 Wages expense 126200 42 Rent expense 24000 43 Supplies expense 4300 44 Insurance expense 21000 45 Utilities expense 9700 46 Depreciation expense 26000 211200 47 Operating Income 96300 48 Less:Interest Expense 3750 49 Net Income 92550 50 51 Gatsby Inc 52 Statement of Retained Earnings for the period ending 31, December 53 54 Particulars Amount 55 Beginning Balance 124750 56 Add: Net Income 92550 57 217300 58 Less: Dividends 7000 59 Ending Balance 210300

Amount Amount Cash 160500 3750 1200 15000 180450 Gatsby Inc Balance Sheet as on 31, December Assets Amount Amount Liabilities Current Assets Current Liabilities 121550 Accounts Payable Accounts Receivable 265000 Interest Payable Prepaid Insurance 18000 Wages Payable Supplies 200 Unearned Revenue-Alarm systems Inventory 85000 489750 Long term Liabilities Property, Plant & Equipment Long Term Bank Note Payable Land 75000 Building 200000 Shareholders Equity Less:Accumulated Depreciation-Building 50000 150000 Common Stock Equipment 160000 Retained Earnings Less:Accumulated Depreciation Equipment 24000 136000 Total Assets 850750 Total Liabilities & Equity 150000 310000 210300 520300 850750 Gatsby Inc Statement of Shareholders Equity for the period ending 31, December Particulars Amount Common Stock 310000 Paid in Capital Retained Earnings 210000 Accum comprehensive (loss)income Total 520000

Ledger Accounts Cash Amount Particulars 121550 Closing balance Particulars Opening balance Particulars Opening balance Amount 121550 Supplies Amount Particulars 4500 Supplies expense Closing balance 4500 Amount 4300 200 4500 Amount Particulars Opening balance Revenue Account Receivable Amount Particulars 236000 29000 Closing balance 265000 Particulars Supplies Supplies expense Amount Particulars 4300 Closing balance Amount 4300 265000 265000 Particulars Opening balance Building Amount Particulars 20000 Closing balance Amount 20000 Particulars Opening balance Prepaid Insuranse Amount Particulars 24000 Insurance expense Closing balance 24000 Amount 6000 18000 24000 Particulars Prepaid Insuranse Insuranse expense Amount Particulars 6000 Closing balance Amount 6000 Accumulated Depreciation-Building Particulars Amount Particulars Amount Opening balance 40000 Closing balance 50000 Depreciation expense 10000 50000 50000 Equipment Particulars Amount Particulars Amount Opening balance 160000 Closing balance 160000 Particulars Opening balance Land Amount Particulars 75000 Closing balance Amount 75000

Accumulated Depreciation-Equipment Particulars Amount Particulars Amount Opening balance 8000 Closing balance 24000 Depreciation expense 16000 24000 24000 Particulars Opening balance Wages payable Wages expense Amount Particulars 125000 Closing balance 1200 126200 Amount | 126200 126200 Accounts Payable Amount Particulars 160500 Opening balance Particulars Closing balance Amount 160500 Particulars Revenue Closing balance Unearned Revenue Amount Particulars Amount 30000 Opening balance 45000 15000 45000 45000 Interest Payable Amount Particulars Amount Particulars Closing balance 3750 Interest expense 3750 Amount 26000 Interest expense Amount Particulars 3750 Closing balance Particulars Interest payable Amount Depreciation expense Particulars Amount Particulars Accumulated Depreciation 16000 Closing balance Equipment Accumulated Depreciation Building 10000 26000 3750 26000 Wages Payable Amount Particulars 1200 Wages expense Particulars Closing balance Amount 1200