Financial Project -

December Transactions

December 1. Paid rent for December, $4,000.

2. Paid Munson November balance.

3. Purchased merchandise on account from Lingard Co., terms 2/10,30 FOB Shipping Point, $25,000

4. Paid freight on purchases from Dec. 3, $1,000

6. Sold merchandise on account to Holt Co., terms 2/10, n/30, FOB shipping point, $40,000.  The cost of the merchandise sold was $24,000.

7. Received cash from Flatt Co. on account.  They paid their account in full.

9. Received cash from Kelly Corp. on account for 11/30 invoice.

10. Sold merchandise for cash, $90,000 plus sales tax of $4,500 was collected.  The cost of the merchandise sold was $50,000.

13. Paid for merchandise purchased on December 3, less discount.

14. Received merchandise returned on sale on December 6, $7,000.  The cost of the merchandise returned was $4,500.

15. Paid advertising expense for the last half of December, $19,000.

15. Paid balance owed to Lingard for November 15th invoice.

16. Paid sales tax collected in November.

16. Received cash from sale on December 6, less return made on December 14, and discount.

19. Purchased merchandise for cash, $122,000.

Record the following on the next page in your General Journal

20. Withdrew $50,000 for personal use.

20. Sold merchandise on account to Reedley Co., terms 1/10, n30, FOB shipping point, $140,000.  The cost of the merchandise sold was $125,000.

21. For the convenience of Reedley, we paid the freight on the sale to them on December 20, $3,100.

21. Received cash from Owen, as payment on their account, $27,600.

21. Purchased merchandise on account from Munson Co., terms 1/10, n30, FOB destination, $32,000.

24. Returned $5,000 of damaged merchandise purchased on December 21, received credit on account from vendor.

26. Refunded cash on sale made for cash, $12,000 plus sales tax of $600.  The cost of the merchandise returned was $7,200.

28. Paid sales salaries of $22,800 and office salaries of $20,200.

29. Purchased store supplies for cash, $2,400.

30. Sold merchandise on account to Dix Co., terms 2/10, n30 FOB shipping point, $38,750.  The cost of the merchandise sold was $21,250.

30. Prepaid for advertising for January, $15,000.

30. Received cash from sale made on December 20, less discount, plus freight that was paid on December 21.

31. Paid for purchase made on December 21, less return on December 24, and discount was taken.

31. Cash sales of $130,000 plus sales tax collected of $6,500.  Cost of merchandise sold was $90,000.

End of Fiscal Year Information:

Merchandise Inventory on December 31 was $505,000. Record any variance to a Shrinkage Account (add to end of expenses).

Adjust for December Insurance that has expired.

Adjust for December Advertising Expense.

Store supplies on hand on December 31 was $3,900.

Depreciation for December:  Store Equipment - $5,600; Office Equipment - $3,750.

Accrued salaries on December 31:  Sales Salaries - $3,200; Office Salaries - $5,000.

Analyzed Goodwill and found the balance should be $240,000.

Requirements:

1. Create/ modify all necessary templates:  general ledger, general journal, financials (income statement, Statement of Owner's Equity, Balance Sheet), and worksheet for December, 2016.

2. Prepare General Ledger (enter beginning balances), journalize December transactions, post transactions.

3. Complete worksheet for December.

4. Complete all year end entries and postings as needed in the proper order.

5. Prepare financial statements for Year Ended December 31, 2016.  For Income Statement and Balance Sheet - prepare year to year comparisons (for 2016 and 2015).

6. Prepare a post-closing trial balance. 5 points

7. Prepare a memo to the controller, J. Mundo.  Rubric requirements for the memo:

a. No spelling, grammar or punctuation errors.

b. Utilize proper memo format

c. Memo content:

i. First paragraph: Comments about financials you prepared, include 2-5 accounts that require additional analysis and why.

ii. Second paragraph: Calculate five ratios (your choice from the following list).  Include the details of your calculation and one to two sentences of analysis/commentary for each of the ratios.

iii. Third paragraph:  content of your own chose

iv. Ratio options:  Receivable Turnover, Inventory Turnover, Return on Assets, Gross Profit Ratio, Asset Turnover, Profit Margin, Ave. Collection Period, and Ave. Days in Inventory.

d. Memo is pass/fail based on any errors.

Attachment:- Assignment Files.rar