Ask Question, Ask an Expert


Ask Financial Accounting Expert

This project should be completed using Excel (with formulas and linked data). The parameters of the project are below:

A) Prepare an Income Statement for the year ended 2011. This statement should be flexibly designed (formulas in cells). This must be a multi-step income statement (see video and/or exhibit 4.1 on pg. 4-5). To the right of your dollars in this statement, show common-sized percentages based on sales (vertical analysis).

B) Show journal entries, adjusting entries and closing entries for the below additional information…none of the journal entries have been posted to the ledger (many journal entries have been booked to get you started, however none of the entries for 2011 have been posted). You can add a transaction analysis (not required), however you must show actual journal entries that include debits and credits.

C) Prepare a Statement of Retained Earnings for the year ended 2011. This statement must be flexibly designed.

D) Prepare a Balance Sheet dated Dec. 31, 2011.  Have the Balance Sheets for 12/31/10 and 12/31/11 on the same Excel sheet labeled Balance Sheets.  Again, a flexible design is needed so any changes will automatically update the balance sheet.

E) Prepare a Statement of Cash Flows by using the indirect method for the year ended 2011. The Statement of Cash Flows (operating section) must automatically change when suppositions are changed.  The ending cash as shown on the statement of cash flows will then flow to the Balance Sheet.

F) Analysis: On a separate sheet titled “Analysis” find out the given and show in a table (show your work below your table); your table must look similar to:

a) ROE for 2011
b) ROA for 2011
c) RNOA for 2011
d) Stockholders’ Equity for 2010 and 2011
e) Net Income for 2011
f) NOPAT for 2011
g) NOA for 2010 and 2011
h) NOPM for 2011
i) NOAT for 2011
j) NNO for 2010 and 2011
k) Current Ratio for 2010 and 2011
l) Quick Ratio for 2010 and 2011
m) Liabilities-to-Equity Ratio for 2010 and 2011

47_balance sheet.jpg

Additional Information (for all entries; please see the posted Excel spreadsheet with a few journal entries already provided):

1) Sales for 2011 are $310,000. All the sales are on credit.

2) Gross Margin ratio is 40 percent.

3) Accounts Receivable:

i) $190,000 of the accounts receivable is paid by the end of the year (the remaining balance remains on the balance sheet). 
ii) $4,000 of A/R is written off during the year.   
iii) 5% of Accounts Receivable (after prepare-off and collections) is considered to be uncollectible.

4) Inventory:

i) Inventory purchases are $180,000, all on credit. 
ii) All accounts payable is from inventory purchases; all however $12,000 of inventory purchased is paid by the end of the year.

5) Additional equipment is purchased on 4/1/11 for $20,000 cash. All the equipment when new, including the new purchase, has/had a five year life, no salvage value, and is depreciated by using the straight-line method.

6) The building depreciates at $5,000 per year.

7) Half of the marketable securities were sold for $1,200. The FMV and cost of the other half of the securities are similar, so no adjustment to FMV is needed.

8) Salaries are $2,200 per month (12 months of salaries expense should be booked). This is expected that one-half month will be owed on 12/31/11 because of when payday falls (thus, 11.5 months of salaries have been paid and ½ month is still owed to the employees at year end).

9) $55,000 in cash is borrowed on 9/30/11 by issuing a Note Payable. Interest is 8% per year.

10) The bonds were sold at face value last December and pay interest on Dec. 31, 2011.

11) 10,000 additional shares of stock were sold for $3 a share.

12) Insurance costing $18,000 was purchased on 6/1/11 (the same time in which the policy purchased in 2010 expired. The latest policy was for 12 months).

13) On Dec. 31, 1000 shares of stock are repurchased from the market at $2.90/share (treasury stock).

14) The tax rate is 30 %. Income taxes for the present year are due and thus paid during the first two months of the next year (you will have complete an entry to pay the 2010 taxes, though the 2011 taxes will not be paid till the end of January 2012).

15) Dividends of $3,000 were paid during 2011.

16) The unearned revenue has been earned throughout the year (classified as other revenue on the multi-step income stmt.).

Required Labeled Sheets (all statements should be for 2011):

1) Data Sheet for Additional Data

2) Entries: Basic and Adjusting (you don’t have to show closing entries, however keep in mind all temporary accounts are closed to retained earnings)

3) Adjusted Trial Balance for 2011 (comprises the posted amounts of all entries and adjusting entries)

4) Multi-step Income Statement.
5) Retained Earnings Statement.

6) Classified Balance Sheet.

7) Cash Flow Statement.

8) Post-Close Trial Balance for 2011.

9) Analysis.

The Post-Close Trial Balance for 2010 is given below (based on the above balance sheet). This can be employed as a starting point or you can use the above Balance Sheet; keep in mind all debits and credits ALWAYS equal AND Assets = Liabilities + Equity:

1652_trial balance.jpg

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M9403

Have any Question? 

Related Questions in Financial Accounting

Final project guidelinesoverviewto be successful all

Final Project Guidelines Overview To be successful, all businesses must perform periodic assessments to determine the efficiency of operations. Whether you are an owner, a manager, or a front- line employee, at some time ...

Assignment business accounting and youthe goal of this

Assignment: Business, Accounting, and You The goal of this graded project is to create the following financial statements for J & L Accounting, Inc.: Balance sheet Income statement Statement of retained earnings Post-clo ...

Iexercises1 an extract from the trial balance of armstrong

I. Exercises 1. An extract from the trial balance of Armstrong Corp. at June 30, 2016 is reproduced below:   Account Amount in unadjusted trial balance Amount in adjusted trial balance 1 Prepaid insurance $1,200 $  800 2 ...

Assignmentangies empanadas cvp and cost behaviortired of

Assignment Angie's Empanadas: CVP and Cost Behavior Tired of the corporate life Angie opened Angie's Empanadas in on April 1st near a large university campus. She had long been told that her empanadas were the best in to ...

Module problem-solution assignmentproblem 1brogan inc

Module Problem-Solution Assignment: Problem 1 Brogan, Inc., reports bad debt expense using the allowance method. For tax purposes the direct write-off method is used. At the end of the current year, Brogan has accounts r ...

Select a violent female offender 2 pages bull describe the

Select a violent female offender 2 pages • Describe the violent female offender you selected. • Describe any social, environmental, psychological, and/or biological factors that may have contributed to the crime and expl ...

Project part i peyton approved - budget variance reportyou

Project Part I Peyton Approved - Budget Variance Report You are a manager for Peyton Approved, a pet supplies manufacturer. This responsibility requires you to create budgets, make pricing decisions, and analyze the resu ...

Problem 1on january 1 2010 branson designers issued 900

Problem 1 On January 1, 2010, Branson Designers issued $900 Million of its 8% bonds $836 million. The bonds were then prices to yield 10%. The interest will be payable on June 30 and December 31. Branson records interest ...

Assignmentscenarioyou are a first year staff person working

Assignment Scenario You are a first year staff person working with a multidiscipline team to report on a potential company your firm is considering to invest in. The president of your company will review your team's writ ...

Forecasting and preparing financial statementstina one of

Forecasting and Preparing Financial Statements Tina, one of your friends, approached you and proposed a partnership in a new venture that she is planning to start-a fashion boutique that will sell women's clothing and ac ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro