Overview: You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the company’s financials for the year-end audit. Additionally, the company is interested in expanding its business within the next year. They would like your support in assessing their ability to meet their goals.
Refer to the data below and use the Final Project Workbook that includes the income statement, balance sheet, retained earnings statement and cash flow statement to complete the final project and associated milestones.
Peyton Approved Financial Data: Preliminary Financial Statements have already been prepared (2017 statements in the Final Project Workbook). Final adjusting entries have not yet been made. See table for possible adjustments that indicate what will be recorded at 12/31/17 (fiscal year end). Use the following to complete year-to-year documentation and notes for managing depreciation, inventory, and long-term debt.
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The company is planning to open another location in 2018. Prepare pro forma financials for 2018 for the new location using the following information:
Cost of leasing commercial space: $1,500 per month. |
Cost of new equipment: $15,000, purchased with a long-term note. Use straight line depreciation assuming a seven-year life, no residual value. Use full year’s depreciation for the first year. |
Cost of hiring and training new employees: three at $25,000 each for the first year. |
Except as noted below, assets, current liabilities, sales, costs, and expenses are expected to be 80% of the existing store (from preliminary statements) except no stock. Retained earnings = net income. |
Cash: $7,000. Accounts receivable amount to 4.0 turns (accounts receivable turnover will be 4.0); inventory amount to show 3.0 turns (inventory turnover will be 3.0). No stock will be issued. Retained earnings are to equal net income. Additional financing of $5,000 will be long-term. Add remaining amount needed to balance into accounts payable. |
Please help me prepare the revised balance sheet.
Peyton Approved | |||||
Balance Sheet | |||||
As of December 31,2017 | |||||
Assets | Liabilities and owner's equity | ||||
Current assets: | Current Liabilities | ||||
Cash | 68,520.04 | ||||
Merchandise inventory | 4413.07 | Accounts Payable | 23437.11 | ||
Accounts Receivable | 68519.91 | Customer deposit | 1000 | ||
Banking supplies | 15506.7 | Wages Payable | 3383.28 | ||
Prepaid Rent | 2114.55 | Interest Payable | 211.46 | ||
Prepaid Insurance | 2114.55 | ||||
Misc. Supplies | 170.49 | Total Current Liabilities | 28031.85 | ||
Insurance receivable | 700 | ||||
Consignment Inventory | 200.00 | Long Term Liabilities: | |||
Total Current Assets | 162259.31 | Notes Payable | 5000 | ||
Total Long Term Liabilities | 5000 | ||||
Long Term/Fixed Assets: | |||||
Baking Equipment | 12000 | Common Stock | 20000 | ||
Accumulated Depreciation | -406.44 | Retained earnings | 120821.02 | ||
Net Fixed assets | 11593.56 | Total Equity | 140821.02 | ||
Total Assets | 173852.87 | Total Liabilities & Equity | 173852.87 |
Notes:
1. Shipped $ 3,000 Merchandise inventory by supplier; Inventory & Accounts payable will increase by $ 3,000, Freight $ 175 payable is a liability and this expense was deducted from Retained earnings.
2. Received $ 1,000 from customer, goods yet to be sent in January, Therefore Cash increased by $ 1,000 and Liability increased(Unearned revenue) by $ 1,000
3. $ 2,000 equipment destroyed by a forklift, so Equipment cost reduced by $2,000 & $ Accumulated depreciation reduced by $ 1,200. Net equipment cost of destroyed = $ 2,000 - $ 1,200 = $ 800, Insurance will agreed to pay $ 700.
Therefore insurance receivable is $ 700 & Loss was deducted from retained earnings $ 100 ( $ 800 - $ 700)
Overview: You just began a position as a financial accountant at Peyton Approved. In this role, y...
You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the company’s financials for the year-end audit. Additionally, the company is interested in expanding its business within the next year. They would like your support in assessing their ability to meet their goals. 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...
Overview: You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the company’s financials for the year-end audit. Additionally, the company is interested in expanding its business within the next year. They would like your support in assessing their ability to meet their goals. Refer to the data below and use the Final Project Workbook that includes the income statement, balance sheet, retained earnings statement and cash flow statement...
Overview: You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the company’s financials for the year-end audit. Additionally, the company is interested in expanding its business within the next year. They would like your support in assessing their ability to meet their goals. Refer to the data below and use the Final Project Workbook that includes the income statement, balance sheet, retained earnings statement and cash flow statement...
The company is planning to open another location in 2018. Using the Preliminary Statements as a base, prepare pro forma (budgeted) financials for 2018 for the new location using the following information: Cost of leasing commercial space: $1,500 per month.Cost of new equipment: $15,000, purchased with a long-term note. Use straight line depreciation assuming a seven-year life, no residual value. Use full year’s depreciation for the first year. Equipment purchase was financed with a long-term note.Cost of...
I received an answer on my Cadh Flow problem. the answer that I received was Equipment was (5300). i was reading the answer and I was confused. It said that the opening balance for Equipment was $8,000. That was the closing balance for 2016. In 2017 their was a purchase of $6,000 making the opening balance for 2017 as $14,000. There was a loss of equipment for $2,000. Accumulated Dep. for $1.200, Other Receivable -Insurance $700 from the insurance which...
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...
need help balancing the statement of cash flow 2- me ) = Insert Page Layout Formulas Data Final Milestone - Review View Ariel - 12 - - A - / U - - A ormat Painter ard Wrap Test Merge & Center S. . 1 Conditional Format Formatting Table Normal Check Cell . Font Alignment Warning Automatic update of links has been disabled Options - Peyton Approved Peyton Approved Balance Sheet As of December 31, 2017 Assets Current Assets: Cash...
Create financial statements by properly employing prescribed methods in accordance with generally accepted accounting principles: A. Step Eight: Prepare the financial statements. Note that you must use your adjusted trial balance to prepare the income statement, statement of owner’s equity, and balance sheet. You must complete these statements in this order, as there are interdependencies among them. Adjusting entries Debit Credit Peyton Approved Trial Balance 2018 Unadjusted trial balance Debit Credit 32,236.75 18,500.00 175.65 1,500.00 2,400.00 6,000.00 17,400.00 400.00 250.00...
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