Part B:
The second part of this assignment is very similar to Part A (which is below). You may reference the solution to the transaction analysis spreadsheet from Part A to help you in Part B. Your assignment in Part B is to first prepare journal entries in the General Journal tab of this spreadsheet for the same transactions that you analyzed in Part A. After preparing your journal entries, post your entries to the T-accounts in the General Ledger (T-Accounts) tab. Start by inserting the beginning balances in the T-accounts from the Year 0 Balance Sheet and then post your journal entries from the General Journal. Next, calculate the ending balance in each account. Then, prepare Year 1 financial statements based on the ending balances in each T-account. Finally, go back to the General Journal and prepare closing entries. Post your closing entries to the General Ledger T-accounts. Finally, prepare a Post-Closing Trial Balance.
Hints:
Whenever possible, use formulas to reference cells. This not only reduces the likelihood of error, it makes it easier for us to understand why you got the number you did. This applies to all assignments.
Use dates or transaction numbers in your T-accounts to facilitate tracing your journal entries to the T-accounts.
Note that when you prepare closing entries, you will calculate a new (final) balance in retained earnings. This is the balance that should appear in your balance sheet.
Note that there are multiple tabs involved in this assignment, so be sure to look at every tab to make sure you have completed everything.
If you need tutorials on excel, visit https://support.office.com/en-us/article/Excel-video-training-9bc05390-e94c-46af-a5b3-d7c22f6990bb?ui=en-US&rs=en-US&ad=US
Okay the numbers should be clearer now! And now the red text is showing. My bad!
Homework Answers
| Journal Entries | Debit | Credit | |
| 1) | Purchase of intangible Assets | ||
| Intangible Assets | 27000 | ||
| Cash | 27000 | ||
| 2) | Amount paid for future expense (Prepaid) | ||
| Prepaid Assets | 36000 | ||
| Cash | 36000 | ||
| 3) | Property plant & Equipment (PPE) Purchased | ||
| PP& E | 20500 | ||
| Cash | 20500 | ||
| 4) | Capital introduced | ||
| Cash | 50000 | ||
| Capital | 50000 | ||
| 5a) | Sales on credit | ||
| Receivable | 137000 | ||
| Sales (Profit & Loss Account) | 137000 | ||
| 5b) | Inventory Consumed | ||
| COGS (Profit & Loss) | 20000 | ||
| Inventory | 20000 | ||
| 5c) | Commission paid on sales | ||
| Sales commission (Profit & Loss) | 12000 | ||
| Cash | 12000 | ||
| 6) | Expense on R&D | ||
| R & D Expense (Profit & Loss) | 15400 | ||
| Cash | 15400 | ||
| 7) | Unearned Revenue | ||
| Cash | 24000 | ||
| Unearned Revenue | 24000 | ||
| 8) | Payment received from customers | ||
| Cash | 72000 | ||
| Accounts Receivables | 72000 | ||
| 9) | Income Tax Paid | ||
| Income Tax Payable | 4300 | ||
| Cash | 4300 | ||
| 10) | Payment received from customers | ||
| Cash | 25000 | ||
| Accounts Receivables | 25000 | ||
| 11) | Material purchase | ||
| Inventory | 20000 | ||
| Cash | 4500 | ||
| Accounts Payable | 15500 | ||
| 12 a) | Assets purchase | ||
| PP & E | 7000 | ||
| Cash | 7000 | ||
| 12b) | Rectification of 12 a) as supplies purchase not assets | ||
| Supplies | 7000 | ||
| PPE | 7000 | ||
| 13) | Marketable securities purchase | ||
| Marketable securities | 7000 | ||
| Cash | 7000 | ||
| 14) | Cash received from Notes Payable | ||
| Cash | 30000 | ||
| Notes Payable | 30000 | ||
| 15) | Salaries Expense | ||
| Salary (Profit & loss) | 39000 | ||
| Cash | 7000 | ||
| Salary payable | 32000 | ||
| 16) | Income Tax Expense | ||
| Income Tax (Profit & loss) | 7500 | ||
| Cash | 4500 | ||
| Income tax payable | 3000 | ||
| 17) | Expense incurred against prepaid | ||
| Prepaid expense (Profit & Loss) | 27000 | ||
| Prepaid Assets | 27000 | ||
| 18) | Reduction in unearned Revenue | ||
| Unearned Revenue | 8000 | ||
| Sales Revenue (Profit & loss) | 8000 | ||
| 19) | Supplies issue | ||
| Supplies Expense (Profit & Loss) | 6000 | ||
| Supplies | 6000 | ||
|
20) Interest Expense 750 Interest payable 750 |
|||
| T Accounts | |||
| Intangible Assets | |||
| Debit | Credit | ||
| Beginning balance | 10500 | Closing Balance | 37500 |
| Cash | 27000 | ||
| 37500 | 37500 | ||
| Prepaid Assets | |||
| Debit | Credit | ||
| Beginning balance | 0 | Prepaid Expense | 27000 |
| Cash | 36000 | Closing Balance | 9000 |
| 36000 | 36000 | ||
| PP& E | |||
| Debit | Credit | ||
| Beginning balance | 34700 | Closing balance | 55200 |
| Cash | 20500 | ||
| 55200 | 55200 | ||
| Common Stock | |||
| Debit | Credit | ||
| Closing balance | 95000 | Beginning balance | 45000 |
| Cash | 50000 | ||
| 95000 | 95000 | ||
| Receivables | |||
| Debit | Credit | ||
| Beginning balance | 20000 | Cash | 72000 |
| Sales (Profit & Loss) | 137000 | Cash | 25000 |
| Closing balance | 60000 | ||
| 157000 | 157000 | ||
| Inventory | |||
| Debit | Credit | ||
| Beginning balance | 25000 | COGS(Profit & Loss) | 20000 |
| Accounts Payable | 15500 | Closing Balance | 25000 |
| Cash | 4500 | ||
| 45000 | 45000 | ||
| Unearned Revenue | |||
| Debit | Credit | ||
| Sales | 8000 | Beginning balance | 50000 |
| Cloaing balance | 66000 | Cash | 24000 |
| 74000 | 74000 | ||
| Income Tax Payable | |||
| Debit | Credit | ||
| Cash | 4300 | Beginning balance | 4300 |
| Closing Balance | 3000 | Income Tax | 3000 |
| 7300 | 7300 | ||
| Accounts Payable | |||
| Debit | Credit | ||
| Closing balance | 60500 | Beginning balance | 45000 |
| Inventory | 15500 | ||
| 60500 | 60500 | ||
| Supplies | |||
| Debit | Credit | ||
| Beginning balance | 0 | Supplies expense | 6000 |
| Cash | 7000 | Closing balance | 1000 |
| 7000 | 7000 | ||
| Marketable Securities | |||
| Debit | Credit | ||
| Beginning balance | 6700 | Closing balance | 13700 |
| Cash | 7000 | ||
| 13700 | 13700 | ||
| Notes payable | |||
| Debit | Credit | ||
| Closing balance | 58500 | Beginning balance | 28500 |
| Cash | 30000 | ||
| 58500 | 58500 | ||
| Cash | |||
| Debit | Credit | ||
| Beginning balance | 80000 | Intangible Assets | 27000 |
| Common Stock | 50000 | Prepaid Assets | 36000 |
| Unearned Revenue | 24000 | PPE | 20500 |
| Accounts Receivable | 72000 | Sales Commission | 12000 |
| Accounts Receivable | 25000 | R& D Expense | 15400 |
| Notes payable | 30000 | Income Tax payable | 4300 |
| Inventory | 4500 | ||
| Supplies | 7000 | ||
| Marketable Securities | 7000 | ||
| Salary | 7000 | ||
| Income tax | 4500 | ||
| Closing Balance | 135800 | ||
| 281000 | 281000 | ||
| Salary Payable | |||
| Debit | Credit | ||
| Closing Balance | 32000 | Beginning balance | 0 |
| Salary expense | 32000 | ||
| 32000 |
Part B:
The second part of this assignment is very similar to Part A
(which is below). You may reference the solution
to the transaction analysis spreadsheet from Part A to help you in
Part B. Your assignment in Part B is to first prepare journal
entries in the General Journal tab of this spreadsheet for the same
transactions that you analyzed in Part A. After preparing your
journal entries, post your entries to the T-accounts in the General
Ledger...
Part B: The second part of this assignment is very similar to Part A. You may reference the solution to the transaction analysis spreadsheet from Part A to help you in Part B. Your assignment in Part B is to first prepare journal entries in the General Journal tab of this spreadsheet for the same transactions that you analyzed in Part A. After preparing your journal entries, post your entries to the T-accounts in the General Ledger (T-Accounts) tab. Start...
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