On Dec. 1, 2014, Pete Flore opened Fiore Consulting Services, Inc. He provides marketing seminars guaranteed...

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On Dec. 1, 2014, Pete Flore opened Fiore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by 5%. The first fiscal (calendar) year will end December 31, 2014. One salaried employee was hired on December 1, 2014. No benefits accrue for six months. Mr. Fiore does not take a salary at this time. During the month, he completed the following transactions for the company: Dec.. 1 Began business by depositing $100,000 in a bank account in the name of the company in exchange for 100,000 shares of $1 par value common stock. 1 Paid the rent for his office store for current month, $10,000. 1 Paid the premium on a one-year insurance policy, $24,000. 1 Purchased computer & office equipment on credit for $41,000. 5 Purchased office supplies from DEF Company on credit, $1,765. 8 Paid cash for an advertisement in a local newspaper, $300. 15 Billed consulting revenue for the first half of the month, $25,000. 21 Paid DEF Company on account, $500. 31 Billed consulting revenue for the second half of July, $35,000. 31 Declared and paid a cash dividend, $10,000. 31 Accrue one (1)month salary for sole employee paid on January 3, 2015-$8,000. 31 Accrue one (1)month payroll taxes for sole employee paid on January 3, 2015-7.65% of Salary Expense. 31 Industry history indicates 1% of sales must be accrued as provided as expense to cover expected warranty costs. The company experienced a clean month in Dec. 2014. Journalize this expense. 31 Mr. Fiore expects that uncollectible account expense will amount to .5%. (1/2 of 1%). Journalize. 31 I JCP Inc., a customer declares bankruptcy necessitating writing off the amount owed by them from A/R.-$1,000. REQUIRED FOR DECEMBER . Prepare journal entries to record the December transactions. Explanations supplied. . Open the following accounts: Cash (111); Accounts Receivable (113); Prepaid Insurance (117); Office Supplies (19); Computer & Office Equipment (144); Accumulated Depreciation-Computer & Office Equipment (145); ccounts Payable (212); Income Taxes Payable (213); Salaries Payable (214); Allowance for Uncollectable Accounts 14); Estimated Consulting Warranty Liability (217); Common Stock (311); Retained Earnings (312); ividends (313); Income Summary (314); Consulting Revenue (411); Salary Expense (510) Payroll Taxes Payable 16); Rent Expense (511); Advertising Expense (512); Insurance Expense (513);Office Supplies Expense (514); epreciation Expense-Computer & Office Equipment (515); Income Taxes Expense (530); Consulting Warranty <pense (525); Uncollectable Account Expense (526). Payroll Tax Expense (527); Salary Expense (510). ost the DECEMBER entries to the to the general ledger accounts.. Using the following information, record adjusting entries in the journal and post to the ledger accounts: ) one month's insurance has expired; (b) remaining inventory of unused repair supplies, $1,000; )The computer & office equipment purchased on Dec. 1 has a useful life of four (4) years and a salvage value of L,000. You must complete the depreciation schedule and divide the first years calculated by twelve (12). eord journal entry. Use double decling method. Worksheet supplied. ) estimated income taxes for the month, $5,000. From the accounts in the ledger, prepare an adjusted trial balance. (Note: Normally a trial balance is epared before adjustments but is omitted here to save time.) From the adjusted trial balance, prepare an income statement, a statement of retained earnings, id a balance sheet for December. Income Taxes is to be shown as part of total expenses. Prepare and post closing entries. Explanations required. Prepare a post-closing trial balance. B ECIAL PROJECT 1. Entries for December prepared 3. Adjusting entries for December prepared Closing entries for December prepared 6. S D₁ ce e n es R th 76 (1. SP. 2014 Dec. Lia F); ( xp₁ ce. ben et Date dad 1 1 1 1 5 General Journal Description To issue stock To pay one month's rent To purchase one-year policy To purchase computer & office equipment To purchase repair supplies on credit from DEF Company Post. Ref. Debit Page 1 Credit 8 15 21 To purchase newspaper advertisement To record receipt of revenue for the first half of the month To make payment on account to DEF Company Date 2014 Dec. 31 31 31 31 31 31 General Journal Description To record receipt of revenue for the last half of the month To declare and pay dividend To record salary expense To accrue payroll tax expense To estimate warranty costs To accrue estimated bad debts Post. Ref. Debit Page 2 Credit 31 To accrue estimated bad debts Monies owed by JCP deemed uncollectible. 1 1 Si at res yl 2014 Dec. 31 BE offic CIAL PROJECT-CLOSING ENTRIES Exp Date Closing entries: 31 Income Summary 31 31 General Journal Description Income Summary To close the credit balance account To close the debit balance accounts To close the Income Summary account To close the Dividends account Ref. Debit Page 4 Credit FILL IN FILL IN Cash (111) Accounts Receivable (113) Allowance for Uncollectable Accounts (114) Prepaid Insurance (117) Office Supplies (119) Computer & Office Equipment (144) Accumulated Depreciation-Computer & Office Equipment (145) Accounts Payable (212) Income Taxes Payable (213) Salaries Payable (214) Payroll Taxes Payable (216) Estimated Consulting Product Warranty (217) Common Stock (311) Retained Earnings (312) Dividends 3) Consulting Revenue (411) Salary Expense (510) 1). Rent Expense (511) Advertising Expense (512) ic Insurance Expense (513) Pi ne Depreciation Expense-Computer & Office Equipment (515) d Consulting Warranty Expense (525) e Uncollectable Account Expense (526) SE St ho Office Supplies Expense (514) OC Payroll Tax Expense (527) Income Taxes Expense (530) TOTAL 5. May income Statement, prepared FILL IN FILL IN Revenue Consulting Revenue Expenses Salary Expense (510) Rent Expense (511) Fiore Consulting Services, Inc. Advertising Expense (512) Insurance Expense (513) Office Supplies Expense (514) Depreciation Expense-Computer & Office Equipment (515) Consulting Warranty Expense (525) Uncollectable Account Expense (526) Payroll Tax Expense (527) Income Taxes Expense (530) Total expenses Net income FILL IN FILL IN Net income Subtotal Less dividends Fiore Consulting Services, Inc. YOU MUST COMPLETE ALL SHADED AREAS ALL IN FILL IN PROJECT Accounts Receivable Allowance for Uncollectable Accounts Less Accumulated Depreciation Total assets Total liabilities ic pe he Fiore Consulting Services, Inc. 1). Total Liabilities and Stockholders' equity Dec.post-closing trial balance prepared Assets Liabilities Stockholders' Equity Fiore Consulting Services, Inc. Post-Closing Trial Balance December 31, 2014 Cash Date 2014 Dec. Accouts Receivable Date 2014 Dec. Item Date 2014 Dec. Item Allowance for Uncollectable Accounts Post. Ref. Item Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 111 Balance Debit Account No. 113 Balance Debit Credit Debit Credit Account No. 114 Balance Credit 6 F i 31 m na Prepaid Insurance 2014 Dec. Date Date 2014 Dec. AL PROJECT Office Supplies Item Item Ref. Post. Ref. Debit Credit Account No. 11/ Balance Debit Debit Credit Credit Account No. 119 Balance Debit Credit Computer & Office Equipment Date d 2014 Dec. Date Accumulated Depreciation-Computer Equipment 2014 Dec. Accounts Payable Date 7 2011 Dec. Item Item Post. Ref. Debit Credit Item Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 144 Balance Debit Credit Account No. 145 Balance Debit Credit Account No. 212 Balance Debit Credit come Taxes Payable Date 2014 Dec. Salaries Payable Date 2014 Dec. Date 2014 Dec. AL PRO Payroll Taxes Payable Date 2014 Dec. Common Stock Item Date 2014 Item Estimated Consulting Warranty Liability Item Item Post. Ref. Item Ref. Ref. Ref. Post. Ref. Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Account No. 213 Balance Debit Account No. 214 Balance Debit Debit Credit Account No. 216 Balance Debit Credit Account No. 217 Balance Debit Credit Credit Account No. 311 Balance Credit u ia Er th, Retained Earnings an Tax re 2014 ed Date Fons Dec. 31 31 Dividends Date 2014 Dec. Item Item Post. Ref. Post. Ref. Debit Debit Credit Credit Account No. 312 Balance Debit Credit Account No. 313 Balance Debit Credit come Summary Date 2014 Dec. Consulting Revenue Date 2014 Dec. 31 Salary Expenxe Date 2014 Dec. Item Item Item Post. Ref. Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 314 Balance Debit Account No. 411 Balance Debit Credit Debit Credit Account No. 510 Balance Credit Rent Expense Date 2014 Dec. M CIAL PROJECT Advertising Expense Date 2014 Dec. Item Insurance Expense Date 2014 Dec. Item Item Post. Ref. Debit Credit Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 511 Balance Debit Credit Account No. 512 Balance Debit Credit Account No. 513 Balance Debit Credit m T. 31 1 sir ( ht to 20 (b) St an he n in xes Office Supplies Expense rch tio Depreciation Expense-Repair Equipment me Date 2014 Dec. 2014 Dec. Date 2014 Dec. Date Item CIAL PROJECT consulting Warranty Expense Item Post. Ref. Debit Credit Item Post. Ref. Debit Post. Ref. Debit Credit Account No. 514 Balance Debit Credit Account No. 515 Balance Credit Debit Credit Account No. 525 Balance Debit Credit ec Uncollectable Account Expense t m T ra Y₁ isi & un 2014 Dec. re ed; ( pur Date ciat ng m nth, Payroll Tax Expense Date 2014 Dec. Item Date Income Tax Expense 2014 Dec. Item Item Ref. Debit Credit Ref. Debit Ref. Debit Credit Credit Account No. 526 Balance Debit Credit Account No. 527 Balance Debit Credit Account No. 530 Balance Debit Credit c. Double- ME ecc Depreciation Method declining- balance ,re Year 1 2 3 4 ( me Ta rar. ry ( 2. Current Liabilities tisir & Current Liabilities = punt 5 to 3. Computation of Current Ratio Current Assets = + t + years = ** To reduce to estimated residual value Note: To receive full credit you must complete schedule above. 2. Please answer the following questions: + Current Ratio (Account Names) = Computation X X + X a. Is it a good idea for Mr. Fiore to take out more in dividends than his than his company earns? Explain why or why not? What will eventually happen? + 1 b. Compute the current ratio & working capital below. Be advised that you have to identify and list current assets & current liabilities below: 1. Current Assets Depreciation Tapic x 2 = Depreciation + divided by + + equals equals Carrying Value ² חי 3. Computation of Current Ratio Current Ratio (Account Names) = Current Ratio ($) = Current Ratio (TWO DECIMAL POINTS) = ax ons Working Capital State Formula: Working Capital ($) = Working Capital Equals: $ less less divided by divided by On Dec. 1, 2014, Pete Flore opened Fiore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by 5%. The first fiscal (calendar) year will end December 31, 2014. One salaried employee was hired on December 1, 2014. No benefits accrue for six months. Mr. Fiore does not take a salary at this time. During the month, he completed the following transactions for the company: Dec.. 1 Began business by depositing $100,000 in a bank account in the name of the company in exchange for 100,000 shares of $1 par value common stock. 1 Paid the rent for his office store for current month, $10,000. 1 Paid the premium on a one-year insurance policy, $24,000. 1 Purchased computer & office equipment on credit for $41,000. 5 Purchased office supplies from DEF Company on credit, $1,765. 8 Paid cash for an advertisement in a local newspaper, $300. 15 Billed consulting revenue for the first half of the month, $25,000. 21 Paid DEF Company on account, $500. 31 Billed consulting revenue for the second half of July, $35,000. 31 Declared and paid a cash dividend, $10,000. 31 Accrue one (1)month salary for sole employee paid on January 3, 2015-$8,000. 31 Accrue one (1)month payroll taxes for sole employee paid on January 3, 2015-7.65% of Salary Expense. 31 Industry history indicates 1% of sales must be accrued as provided as expense to cover expected warranty costs. The company experienced a clean month in Dec. 2014. Journalize this expense. 31 Mr. Fiore expects that uncollectible account expense will amount to .5%. (1/2 of 1%). Journalize. 31 I JCP Inc., a customer declares bankruptcy necessitating writing off the amount owed by them from A/R.-$1,000. REQUIRED FOR DECEMBER . Prepare journal entries to record the December transactions. Explanations supplied. . Open the following accounts: Cash (111); Accounts Receivable (113); Prepaid Insurance (117); Office Supplies (19); Computer & Office Equipment (144); Accumulated Depreciation-Computer & Office Equipment (145); ccounts Payable (212); Income Taxes Payable (213); Salaries Payable (214); Allowance for Uncollectable Accounts 14); Estimated Consulting Warranty Liability (217); Common Stock (311); Retained Earnings (312); ividends (313); Income Summary (314); Consulting Revenue (411); Salary Expense (510) Payroll Taxes Payable 16); Rent Expense (511); Advertising Expense (512); Insurance Expense (513);Office Supplies Expense (514); epreciation Expense-Computer & Office Equipment (515); Income Taxes Expense (530); Consulting Warranty <pense (525); Uncollectable Account Expense (526). Payroll Tax Expense (527); Salary Expense (510). ost the DECEMBER entries to the to the general ledger accounts.. Using the following information, record adjusting entries in the journal and post to the ledger accounts: ) one month's insurance has expired; (b) remaining inventory of unused repair supplies, $1,000; )The computer & office equipment purchased on Dec. 1 has a useful life of four (4) years and a salvage value of L,000. You must complete the depreciation schedule and divide the first years calculated by twelve (12). eord journal entry. Use double decling method. Worksheet supplied. ) estimated income taxes for the month, $5,000. From the accounts in the ledger, prepare an adjusted trial balance. (Note: Normally a trial balance is epared before adjustments but is omitted here to save time.) From the adjusted trial balance, prepare an income statement, a statement of retained earnings, id a balance sheet for December. Income Taxes is to be shown as part of total expenses. Prepare and post closing entries. Explanations required. Prepare a post-closing trial balance. B ECIAL PROJECT 1. Entries for December prepared 3. Adjusting entries for December prepared Closing entries for December prepared 6. S D₁ ce e n es R th 76 (1. SP. 2014 Dec. Lia F); ( xp₁ ce. ben et Date dad 1 1 1 1 5 General Journal Description To issue stock To pay one month's rent To purchase one-year policy To purchase computer & office equipment To purchase repair supplies on credit from DEF Company Post. Ref. Debit Page 1 Credit 8 15 21 To purchase newspaper advertisement To record receipt of revenue for the first half of the month To make payment on account to DEF Company Date 2014 Dec. 31 31 31 31 31 31 General Journal Description To record receipt of revenue for the last half of the month To declare and pay dividend To record salary expense To accrue payroll tax expense To estimate warranty costs To accrue estimated bad debts Post. Ref. Debit Page 2 Credit 31 To accrue estimated bad debts Monies owed by JCP deemed uncollectible. 1 1 Si at res yl 2014 Dec. 31 BE offic CIAL PROJECT-CLOSING ENTRIES Exp Date Closing entries: 31 Income Summary 31 31 General Journal Description Income Summary To close the credit balance account To close the debit balance accounts To close the Income Summary account To close the Dividends account Ref. Debit Page 4 Credit FILL IN FILL IN Cash (111) Accounts Receivable (113) Allowance for Uncollectable Accounts (114) Prepaid Insurance (117) Office Supplies (119) Computer & Office Equipment (144) Accumulated Depreciation-Computer & Office Equipment (145) Accounts Payable (212) Income Taxes Payable (213) Salaries Payable (214) Payroll Taxes Payable (216) Estimated Consulting Product Warranty (217) Common Stock (311) Retained Earnings (312) Dividends 3) Consulting Revenue (411) Salary Expense (510) 1). Rent Expense (511) Advertising Expense (512) ic Insurance Expense (513) Pi ne Depreciation Expense-Computer & Office Equipment (515) d Consulting Warranty Expense (525) e Uncollectable Account Expense (526) SE St ho Office Supplies Expense (514) OC Payroll Tax Expense (527) Income Taxes Expense (530) TOTAL 5. May income Statement, prepared FILL IN FILL IN Revenue Consulting Revenue Expenses Salary Expense (510) Rent Expense (511) Fiore Consulting Services, Inc. Advertising Expense (512) Insurance Expense (513) Office Supplies Expense (514) Depreciation Expense-Computer & Office Equipment (515) Consulting Warranty Expense (525) Uncollectable Account Expense (526) Payroll Tax Expense (527) Income Taxes Expense (530) Total expenses Net income FILL IN FILL IN Net income Subtotal Less dividends Fiore Consulting Services, Inc. YOU MUST COMPLETE ALL SHADED AREAS ALL IN FILL IN PROJECT Accounts Receivable Allowance for Uncollectable Accounts Less Accumulated Depreciation Total assets Total liabilities ic pe he Fiore Consulting Services, Inc. 1). Total Liabilities and Stockholders' equity Dec.post-closing trial balance prepared Assets Liabilities Stockholders' Equity Fiore Consulting Services, Inc. Post-Closing Trial Balance December 31, 2014 Cash Date 2014 Dec. Accouts Receivable Date 2014 Dec. Item Date 2014 Dec. Item Allowance for Uncollectable Accounts Post. Ref. Item Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 111 Balance Debit Account No. 113 Balance Debit Credit Debit Credit Account No. 114 Balance Credit 6 F i 31 m na Prepaid Insurance 2014 Dec. Date Date 2014 Dec. AL PROJECT Office Supplies Item Item Ref. Post. Ref. Debit Credit Account No. 11/ Balance Debit Debit Credit Credit Account No. 119 Balance Debit Credit Computer & Office Equipment Date d 2014 Dec. Date Accumulated Depreciation-Computer Equipment 2014 Dec. Accounts Payable Date 7 2011 Dec. Item Item Post. Ref. Debit Credit Item Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 144 Balance Debit Credit Account No. 145 Balance Debit Credit Account No. 212 Balance Debit Credit come Taxes Payable Date 2014 Dec. Salaries Payable Date 2014 Dec. Date 2014 Dec. AL PRO Payroll Taxes Payable Date 2014 Dec. Common Stock Item Date 2014 Item Estimated Consulting Warranty Liability Item Item Post. Ref. Item Ref. Ref. Ref. Post. Ref. Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Account No. 213 Balance Debit Account No. 214 Balance Debit Debit Credit Account No. 216 Balance Debit Credit Account No. 217 Balance Debit Credit Credit Account No. 311 Balance Credit u ia Er th, Retained Earnings an Tax re 2014 ed Date Fons Dec. 31 31 Dividends Date 2014 Dec. Item Item Post. Ref. Post. Ref. Debit Debit Credit Credit Account No. 312 Balance Debit Credit Account No. 313 Balance Debit Credit come Summary Date 2014 Dec. Consulting Revenue Date 2014 Dec. 31 Salary Expenxe Date 2014 Dec. Item Item Item Post. Ref. Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 314 Balance Debit Account No. 411 Balance Debit Credit Debit Credit Account No. 510 Balance Credit Rent Expense Date 2014 Dec. M CIAL PROJECT Advertising Expense Date 2014 Dec. Item Insurance Expense Date 2014 Dec. Item Item Post. Ref. Debit Credit Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 511 Balance Debit Credit Account No. 512 Balance Debit Credit Account No. 513 Balance Debit Credit m T. 31 1 sir ( ht to 20 (b) St an he n in xes Office Supplies Expense rch tio Depreciation Expense-Repair Equipment me Date 2014 Dec. 2014 Dec. Date 2014 Dec. Date Item CIAL PROJECT consulting Warranty Expense Item Post. Ref. Debit Credit Item Post. Ref. Debit Post. Ref. Debit Credit Account No. 514 Balance Debit Credit Account No. 515 Balance Credit Debit Credit Account No. 525 Balance Debit Credit ec Uncollectable Account Expense t m T ra Y₁ isi & un 2014 Dec. re ed; ( pur Date ciat ng m nth, Payroll Tax Expense Date 2014 Dec. Item Date Income Tax Expense 2014 Dec. Item Item Ref. Debit Credit Ref. Debit Ref. Debit Credit Credit Account No. 526 Balance Debit Credit Account No. 527 Balance Debit Credit Account No. 530 Balance Debit Credit c. Double- ME ecc Depreciation Method declining- balance ,re Year 1 2 3 4 ( me Ta rar. ry ( 2. Current Liabilities tisir & Current Liabilities = punt 5 to 3. Computation of Current Ratio Current Assets = + t + years = ** To reduce to estimated residual value Note: To receive full credit you must complete schedule above. 2. Please answer the following questions: + Current Ratio (Account Names) = Computation X X + X a. Is it a good idea for Mr. Fiore to take out more in dividends than his than his company earns? Explain why or why not? What will eventually happen? + 1 b. Compute the current ratio & working capital below. Be advised that you have to identify and list current assets & current liabilities below: 1. Current Assets Depreciation Tapic x 2 = Depreciation + divided by + + equals equals Carrying Value ² חי 3. Computation of Current Ratio Current Ratio (Account Names) = Current Ratio ($) = Current Ratio (TWO DECIMAL POINTS) = ax ons Working Capital State Formula: Working Capital ($) = Working Capital Equals: $ less less divided by divided by On Dec. 1, 2014, Pete Flore opened Fiore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by 5%. The first fiscal (calendar) year will end December 31, 2014. One salaried employee was hired on December 1, 2014. No benefits accrue for six months. Mr. Fiore does not take a salary at this time. During the month, he completed the following transactions for the company: Dec.. 1 Began business by depositing $100,000 in a bank account in the name of the company in exchange for 100,000 shares of $1 par value common stock. 1 Paid the rent for his office store for current month, $10,000. 1 Paid the premium on a one-year insurance policy, $24,000. 1 Purchased computer & office equipment on credit for $41,000. 5 Purchased office supplies from DEF Company on credit, $1,765. 8 Paid cash for an advertisement in a local newspaper, $300. 15 Billed consulting revenue for the first half of the month, $25,000. 21 Paid DEF Company on account, $500. 31 Billed consulting revenue for the second half of July, $35,000. 31 Declared and paid a cash dividend, $10,000. 31 Accrue one (1)month salary for sole employee paid on January 3, 2015-$8,000. 31 Accrue one (1)month payroll taxes for sole employee paid on January 3, 2015-7.65% of Salary Expense. 31 Industry history indicates 1% of sales must be accrued as provided as expense to cover expected warranty costs. The company experienced a clean month in Dec. 2014. Journalize this expense. 31 Mr. Fiore expects that uncollectible account expense will amount to .5%. (1/2 of 1%). Journalize. 31 I JCP Inc., a customer declares bankruptcy necessitating writing off the amount owed by them from A/R.-$1,000. REQUIRED FOR DECEMBER . Prepare journal entries to record the December transactions. Explanations supplied. . Open the following accounts: Cash (111); Accounts Receivable (113); Prepaid Insurance (117); Office Supplies (19); Computer & Office Equipment (144); Accumulated Depreciation-Computer & Office Equipment (145); ccounts Payable (212); Income Taxes Payable (213); Salaries Payable (214); Allowance for Uncollectable Accounts 14); Estimated Consulting Warranty Liability (217); Common Stock (311); Retained Earnings (312); ividends (313); Income Summary (314); Consulting Revenue (411); Salary Expense (510) Payroll Taxes Payable 16); Rent Expense (511); Advertising Expense (512); Insurance Expense (513);Office Supplies Expense (514); epreciation Expense-Computer & Office Equipment (515); Income Taxes Expense (530); Consulting Warranty <pense (525); Uncollectable Account Expense (526). Payroll Tax Expense (527); Salary Expense (510). ost the DECEMBER entries to the to the general ledger accounts.. Using the following information, record adjusting entries in the journal and post to the ledger accounts: ) one month's insurance has expired; (b) remaining inventory of unused repair supplies, $1,000; )The computer & office equipment purchased on Dec. 1 has a useful life of four (4) years and a salvage value of L,000. You must complete the depreciation schedule and divide the first years calculated by twelve (12). eord journal entry. Use double decling method. Worksheet supplied. ) estimated income taxes for the month, $5,000. From the accounts in the ledger, prepare an adjusted trial balance. (Note: Normally a trial balance is epared before adjustments but is omitted here to save time.) From the adjusted trial balance, prepare an income statement, a statement of retained earnings, id a balance sheet for December. Income Taxes is to be shown as part of total expenses. Prepare and post closing entries. Explanations required. Prepare a post-closing trial balance. B ECIAL PROJECT 1. Entries for December prepared 3. Adjusting entries for December prepared Closing entries for December prepared 6. S D₁ ce e n es R th 76 (1. SP. 2014 Dec. Lia F); ( xp₁ ce. ben et Date dad 1 1 1 1 5 General Journal Description To issue stock To pay one month's rent To purchase one-year policy To purchase computer & office equipment To purchase repair supplies on credit from DEF Company Post. Ref. Debit Page 1 Credit 8 15 21 To purchase newspaper advertisement To record receipt of revenue for the first half of the month To make payment on account to DEF Company Date 2014 Dec. 31 31 31 31 31 31 General Journal Description To record receipt of revenue for the last half of the month To declare and pay dividend To record salary expense To accrue payroll tax expense To estimate warranty costs To accrue estimated bad debts Post. Ref. Debit Page 2 Credit 31 To accrue estimated bad debts Monies owed by JCP deemed uncollectible. 1 1 Si at res yl 2014 Dec. 31 BE offic CIAL PROJECT-CLOSING ENTRIES Exp Date Closing entries: 31 Income Summary 31 31 General Journal Description Income Summary To close the credit balance account To close the debit balance accounts To close the Income Summary account To close the Dividends account Ref. Debit Page 4 Credit FILL IN FILL IN Cash (111) Accounts Receivable (113) Allowance for Uncollectable Accounts (114) Prepaid Insurance (117) Office Supplies (119) Computer & Office Equipment (144) Accumulated Depreciation-Computer & Office Equipment (145) Accounts Payable (212) Income Taxes Payable (213) Salaries Payable (214) Payroll Taxes Payable (216) Estimated Consulting Product Warranty (217) Common Stock (311) Retained Earnings (312) Dividends 3) Consulting Revenue (411) Salary Expense (510) 1). Rent Expense (511) Advertising Expense (512) ic Insurance Expense (513) Pi ne Depreciation Expense-Computer & Office Equipment (515) d Consulting Warranty Expense (525) e Uncollectable Account Expense (526) SE St ho Office Supplies Expense (514) OC Payroll Tax Expense (527) Income Taxes Expense (530) TOTAL 5. May income Statement, prepared FILL IN FILL IN Revenue Consulting Revenue Expenses Salary Expense (510) Rent Expense (511) Fiore Consulting Services, Inc. Advertising Expense (512) Insurance Expense (513) Office Supplies Expense (514) Depreciation Expense-Computer & Office Equipment (515) Consulting Warranty Expense (525) Uncollectable Account Expense (526) Payroll Tax Expense (527) Income Taxes Expense (530) Total expenses Net income FILL IN FILL IN Net income Subtotal Less dividends Fiore Consulting Services, Inc. YOU MUST COMPLETE ALL SHADED AREAS ALL IN FILL IN PROJECT Accounts Receivable Allowance for Uncollectable Accounts Less Accumulated Depreciation Total assets Total liabilities ic pe he Fiore Consulting Services, Inc. 1). Total Liabilities and Stockholders' equity Dec.post-closing trial balance prepared Assets Liabilities Stockholders' Equity Fiore Consulting Services, Inc. Post-Closing Trial Balance December 31, 2014 Cash Date 2014 Dec. Accouts Receivable Date 2014 Dec. Item Date 2014 Dec. Item Allowance for Uncollectable Accounts Post. Ref. Item Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 111 Balance Debit Account No. 113 Balance Debit Credit Debit Credit Account No. 114 Balance Credit 6 F i 31 m na Prepaid Insurance 2014 Dec. Date Date 2014 Dec. AL PROJECT Office Supplies Item Item Ref. Post. Ref. Debit Credit Account No. 11/ Balance Debit Debit Credit Credit Account No. 119 Balance Debit Credit Computer & Office Equipment Date d 2014 Dec. Date Accumulated Depreciation-Computer Equipment 2014 Dec. Accounts Payable Date 7 2011 Dec. Item Item Post. Ref. Debit Credit Item Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 144 Balance Debit Credit Account No. 145 Balance Debit Credit Account No. 212 Balance Debit Credit come Taxes Payable Date 2014 Dec. Salaries Payable Date 2014 Dec. Date 2014 Dec. AL PRO Payroll Taxes Payable Date 2014 Dec. Common Stock Item Date 2014 Item Estimated Consulting Warranty Liability Item Item Post. Ref. Item Ref. Ref. Ref. Post. Ref. Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Account No. 213 Balance Debit Account No. 214 Balance Debit Debit Credit Account No. 216 Balance Debit Credit Account No. 217 Balance Debit Credit Credit Account No. 311 Balance Credit u ia Er th, Retained Earnings an Tax re 2014 ed Date Fons Dec. 31 31 Dividends Date 2014 Dec. Item Item Post. Ref. Post. Ref. Debit Debit Credit Credit Account No. 312 Balance Debit Credit Account No. 313 Balance Debit Credit come Summary Date 2014 Dec. Consulting Revenue Date 2014 Dec. 31 Salary Expenxe Date 2014 Dec. Item Item Item Post. Ref. Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 314 Balance Debit Account No. 411 Balance Debit Credit Debit Credit Account No. 510 Balance Credit Rent Expense Date 2014 Dec. M CIAL PROJECT Advertising Expense Date 2014 Dec. Item Insurance Expense Date 2014 Dec. Item Item Post. Ref. Debit Credit Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 511 Balance Debit Credit Account No. 512 Balance Debit Credit Account No. 513 Balance Debit Credit m T. 31 1 sir ( ht to 20 (b) St an he n in xes Office Supplies Expense rch tio Depreciation Expense-Repair Equipment me Date 2014 Dec. 2014 Dec. Date 2014 Dec. Date Item CIAL PROJECT consulting Warranty Expense Item Post. Ref. Debit Credit Item Post. Ref. Debit Post. Ref. Debit Credit Account No. 514 Balance Debit Credit Account No. 515 Balance Credit Debit Credit Account No. 525 Balance Debit Credit ec Uncollectable Account Expense t m T ra Y₁ isi & un 2014 Dec. re ed; ( pur Date ciat ng m nth, Payroll Tax Expense Date 2014 Dec. Item Date Income Tax Expense 2014 Dec. Item Item Ref. Debit Credit Ref. Debit Ref. Debit Credit Credit Account No. 526 Balance Debit Credit Account No. 527 Balance Debit Credit Account No. 530 Balance Debit Credit c. Double- ME ecc Depreciation Method declining- balance ,re Year 1 2 3 4 ( me Ta rar. ry ( 2. Current Liabilities tisir & Current Liabilities = punt 5 to 3. Computation of Current Ratio Current Assets = + t + years = ** To reduce to estimated residual value Note: To receive full credit you must complete schedule above. 2. Please answer the following questions: + Current Ratio (Account Names) = Computation X X + X a. Is it a good idea for Mr. Fiore to take out more in dividends than his than his company earns? Explain why or why not? What will eventually happen? + 1 b. Compute the current ratio & working capital below. Be advised that you have to identify and list current assets & current liabilities below: 1. Current Assets Depreciation Tapic x 2 = Depreciation + divided by + + equals equals Carrying Value ² חי 3. Computation of Current Ratio Current Ratio (Account Names) = Current Ratio ($) = Current Ratio (TWO DECIMAL POINTS) = ax ons Working Capital State Formula: Working Capital ($) = Working Capital Equals: $ less less divided by divided by On Dec. 1, 2014, Pete Flore opened Fiore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by 5%. The first fiscal (calendar) year will end December 31, 2014. One salaried employee was hired on December 1, 2014. No benefits accrue for six months. Mr. Fiore does not take a salary at this time. During the month, he completed the following transactions for the company: Dec.. 1 Began business by depositing $100,000 in a bank account in the name of the company in exchange for 100,000 shares of $1 par value common stock. 1 Paid the rent for his office store for current month, $10,000. 1 Paid the premium on a one-year insurance policy, $24,000. 1 Purchased computer & office equipment on credit for $41,000. 5 Purchased office supplies from DEF Company on credit, $1,765. 8 Paid cash for an advertisement in a local newspaper, $300. 15 Billed consulting revenue for the first half of the month, $25,000. 21 Paid DEF Company on account, $500. 31 Billed consulting revenue for the second half of July, $35,000. 31 Declared and paid a cash dividend, $10,000. 31 Accrue one (1)month salary for sole employee paid on January 3, 2015-$8,000. 31 Accrue one (1)month payroll taxes for sole employee paid on January 3, 2015-7.65% of Salary Expense. 31 Industry history indicates 1% of sales must be accrued as provided as expense to cover expected warranty costs. The company experienced a clean month in Dec. 2014. Journalize this expense. 31 Mr. Fiore expects that uncollectible account expense will amount to .5%. (1/2 of 1%). Journalize. 31 I JCP Inc., a customer declares bankruptcy necessitating writing off the amount owed by them from A/R.-$1,000. REQUIRED FOR DECEMBER . Prepare journal entries to record the December transactions. Explanations supplied. . Open the following accounts: Cash (111); Accounts Receivable (113); Prepaid Insurance (117); Office Supplies (19); Computer & Office Equipment (144); Accumulated Depreciation-Computer & Office Equipment (145); ccounts Payable (212); Income Taxes Payable (213); Salaries Payable (214); Allowance for Uncollectable Accounts 14); Estimated Consulting Warranty Liability (217); Common Stock (311); Retained Earnings (312); ividends (313); Income Summary (314); Consulting Revenue (411); Salary Expense (510) Payroll Taxes Payable 16); Rent Expense (511); Advertising Expense (512); Insurance Expense (513);Office Supplies Expense (514); epreciation Expense-Computer & Office Equipment (515); Income Taxes Expense (530); Consulting Warranty <pense (525); Uncollectable Account Expense (526). Payroll Tax Expense (527); Salary Expense (510). ost the DECEMBER entries to the to the general ledger accounts.. Using the following information, record adjusting entries in the journal and post to the ledger accounts: ) one month's insurance has expired; (b) remaining inventory of unused repair supplies, $1,000; )The computer & office equipment purchased on Dec. 1 has a useful life of four (4) years and a salvage value of L,000. You must complete the depreciation schedule and divide the first years calculated by twelve (12). eord journal entry. Use double decling method. Worksheet supplied. ) estimated income taxes for the month, $5,000. From the accounts in the ledger, prepare an adjusted trial balance. (Note: Normally a trial balance is epared before adjustments but is omitted here to save time.) From the adjusted trial balance, prepare an income statement, a statement of retained earnings, id a balance sheet for December. Income Taxes is to be shown as part of total expenses. Prepare and post closing entries. Explanations required. Prepare a post-closing trial balance. B ECIAL PROJECT 1. Entries for December prepared 3. Adjusting entries for December prepared Closing entries for December prepared 6. S D₁ ce e n es R th 76 (1. SP. 2014 Dec. Lia F); ( xp₁ ce. ben et Date dad 1 1 1 1 5 General Journal Description To issue stock To pay one month's rent To purchase one-year policy To purchase computer & office equipment To purchase repair supplies on credit from DEF Company Post. Ref. Debit Page 1 Credit 8 15 21 To purchase newspaper advertisement To record receipt of revenue for the first half of the month To make payment on account to DEF Company Date 2014 Dec. 31 31 31 31 31 31 General Journal Description To record receipt of revenue for the last half of the month To declare and pay dividend To record salary expense To accrue payroll tax expense To estimate warranty costs To accrue estimated bad debts Post. Ref. Debit Page 2 Credit 31 To accrue estimated bad debts Monies owed by JCP deemed uncollectible. 1 1 Si at res yl 2014 Dec. 31 BE offic CIAL PROJECT-CLOSING ENTRIES Exp Date Closing entries: 31 Income Summary 31 31 General Journal Description Income Summary To close the credit balance account To close the debit balance accounts To close the Income Summary account To close the Dividends account Ref. Debit Page 4 Credit FILL IN FILL IN Cash (111) Accounts Receivable (113) Allowance for Uncollectable Accounts (114) Prepaid Insurance (117) Office Supplies (119) Computer & Office Equipment (144) Accumulated Depreciation-Computer & Office Equipment (145) Accounts Payable (212) Income Taxes Payable (213) Salaries Payable (214) Payroll Taxes Payable (216) Estimated Consulting Product Warranty (217) Common Stock (311) Retained Earnings (312) Dividends 3) Consulting Revenue (411) Salary Expense (510) 1). Rent Expense (511) Advertising Expense (512) ic Insurance Expense (513) Pi ne Depreciation Expense-Computer & Office Equipment (515) d Consulting Warranty Expense (525) e Uncollectable Account Expense (526) SE St ho Office Supplies Expense (514) OC Payroll Tax Expense (527) Income Taxes Expense (530) TOTAL 5. May income Statement, prepared FILL IN FILL IN Revenue Consulting Revenue Expenses Salary Expense (510) Rent Expense (511) Fiore Consulting Services, Inc. Advertising Expense (512) Insurance Expense (513) Office Supplies Expense (514) Depreciation Expense-Computer & Office Equipment (515) Consulting Warranty Expense (525) Uncollectable Account Expense (526) Payroll Tax Expense (527) Income Taxes Expense (530) Total expenses Net income FILL IN FILL IN Net income Subtotal Less dividends Fiore Consulting Services, Inc. YOU MUST COMPLETE ALL SHADED AREAS ALL IN FILL IN PROJECT Accounts Receivable Allowance for Uncollectable Accounts Less Accumulated Depreciation Total assets Total liabilities ic pe he Fiore Consulting Services, Inc. 1). Total Liabilities and Stockholders' equity Dec.post-closing trial balance prepared Assets Liabilities Stockholders' Equity Fiore Consulting Services, Inc. Post-Closing Trial Balance December 31, 2014 Cash Date 2014 Dec. Accouts Receivable Date 2014 Dec. Item Date 2014 Dec. Item Allowance for Uncollectable Accounts Post. Ref. Item Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 111 Balance Debit Account No. 113 Balance Debit Credit Debit Credit Account No. 114 Balance Credit 6 F i 31 m na Prepaid Insurance 2014 Dec. Date Date 2014 Dec. AL PROJECT Office Supplies Item Item Ref. Post. Ref. Debit Credit Account No. 11/ Balance Debit Debit Credit Credit Account No. 119 Balance Debit Credit Computer & Office Equipment Date d 2014 Dec. Date Accumulated Depreciation-Computer Equipment 2014 Dec. Accounts Payable Date 7 2011 Dec. Item Item Post. Ref. Debit Credit Item Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 144 Balance Debit Credit Account No. 145 Balance Debit Credit Account No. 212 Balance Debit Credit come Taxes Payable Date 2014 Dec. Salaries Payable Date 2014 Dec. Date 2014 Dec. AL PRO Payroll Taxes Payable Date 2014 Dec. Common Stock Item Date 2014 Item Estimated Consulting Warranty Liability Item Item Post. Ref. Item Ref. Ref. Ref. Post. Ref. Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Account No. 213 Balance Debit Account No. 214 Balance Debit Debit Credit Account No. 216 Balance Debit Credit Account No. 217 Balance Debit Credit Credit Account No. 311 Balance Credit u ia Er th, Retained Earnings an Tax re 2014 ed Date Fons Dec. 31 31 Dividends Date 2014 Dec. Item Item Post. Ref. Post. Ref. Debit Debit Credit Credit Account No. 312 Balance Debit Credit Account No. 313 Balance Debit Credit come Summary Date 2014 Dec. Consulting Revenue Date 2014 Dec. 31 Salary Expenxe Date 2014 Dec. Item Item Item Post. Ref. Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 314 Balance Debit Account No. 411 Balance Debit Credit Debit Credit Account No. 510 Balance Credit Rent Expense Date 2014 Dec. M CIAL PROJECT Advertising Expense Date 2014 Dec. Item Insurance Expense Date 2014 Dec. Item Item Post. Ref. Debit Credit Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 511 Balance Debit Credit Account No. 512 Balance Debit Credit Account No. 513 Balance Debit Credit m T. 31 1 sir ( ht to 20 (b) St an he n in xes Office Supplies Expense rch tio Depreciation Expense-Repair Equipment me Date 2014 Dec. 2014 Dec. Date 2014 Dec. Date Item CIAL PROJECT consulting Warranty Expense Item Post. Ref. Debit Credit Item Post. Ref. Debit Post. Ref. Debit Credit Account No. 514 Balance Debit Credit Account No. 515 Balance Credit Debit Credit Account No. 525 Balance Debit Credit ec Uncollectable Account Expense t m T ra Y₁ isi & un 2014 Dec. re ed; ( pur Date ciat ng m nth, Payroll Tax Expense Date 2014 Dec. Item Date Income Tax Expense 2014 Dec. Item Item Ref. Debit Credit Ref. Debit Ref. Debit Credit Credit Account No. 526 Balance Debit Credit Account No. 527 Balance Debit Credit Account No. 530 Balance Debit Credit c. Double- ME ecc Depreciation Method declining- balance ,re Year 1 2 3 4 ( me Ta rar. ry ( 2. Current Liabilities tisir & Current Liabilities = punt 5 to 3. Computation of Current Ratio Current Assets = + t + years = ** To reduce to estimated residual value Note: To receive full credit you must complete schedule above. 2. Please answer the following questions: + Current Ratio (Account Names) = Computation X X + X a. Is it a good idea for Mr. Fiore to take out more in dividends than his than his company earns? Explain why or why not? What will eventually happen? + 1 b. Compute the current ratio & working capital below. Be advised that you have to identify and list current assets & current liabilities below: 1. Current Assets Depreciation Tapic x 2 = Depreciation + divided by + + equals equals Carrying Value ² חי 3. Computation of Current Ratio Current Ratio (Account Names) = Current Ratio ($) = Current Ratio (TWO DECIMAL POINTS) = ax ons Working Capital State Formula: Working Capital ($) = Working Capital Equals: $ less less divided by divided by On Dec. 1, 2014, Pete Flore opened Fiore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by 5%. The first fiscal (calendar) year will end December 31, 2014. One salaried employee was hired on December 1, 2014. No benefits accrue for six months. Mr. Fiore does not take a salary at this time. During the month, he completed the following transactions for the company: Dec.. 1 Began business by depositing $100,000 in a bank account in the name of the company in exchange for 100,000 shares of $1 par value common stock. 1 Paid the rent for his office store for current month, $10,000. 1 Paid the premium on a one-year insurance policy, $24,000. 1 Purchased computer & office equipment on credit for $41,000. 5 Purchased office supplies from DEF Company on credit, $1,765. 8 Paid cash for an advertisement in a local newspaper, $300. 15 Billed consulting revenue for the first half of the month, $25,000. 21 Paid DEF Company on account, $500. 31 Billed consulting revenue for the second half of July, $35,000. 31 Declared and paid a cash dividend, $10,000. 31 Accrue one (1)month salary for sole employee paid on January 3, 2015-$8,000. 31 Accrue one (1)month payroll taxes for sole employee paid on January 3, 2015-7.65% of Salary Expense. 31 Industry history indicates 1% of sales must be accrued as provided as expense to cover expected warranty costs. The company experienced a clean month in Dec. 2014. Journalize this expense. 31 Mr. Fiore expects that uncollectible account expense will amount to .5%. (1/2 of 1%). Journalize. 31 I JCP Inc., a customer declares bankruptcy necessitating writing off the amount owed by them from A/R.-$1,000. REQUIRED FOR DECEMBER . Prepare journal entries to record the December transactions. Explanations supplied. . Open the following accounts: Cash (111); Accounts Receivable (113); Prepaid Insurance (117); Office Supplies (19); Computer & Office Equipment (144); Accumulated Depreciation-Computer & Office Equipment (145); ccounts Payable (212); Income Taxes Payable (213); Salaries Payable (214); Allowance for Uncollectable Accounts 14); Estimated Consulting Warranty Liability (217); Common Stock (311); Retained Earnings (312); ividends (313); Income Summary (314); Consulting Revenue (411); Salary Expense (510) Payroll Taxes Payable 16); Rent Expense (511); Advertising Expense (512); Insurance Expense (513);Office Supplies Expense (514); epreciation Expense-Computer & Office Equipment (515); Income Taxes Expense (530); Consulting Warranty <pense (525); Uncollectable Account Expense (526). Payroll Tax Expense (527); Salary Expense (510). ost the DECEMBER entries to the to the general ledger accounts.. Using the following information, record adjusting entries in the journal and post to the ledger accounts: ) one month's insurance has expired; (b) remaining inventory of unused repair supplies, $1,000; )The computer & office equipment purchased on Dec. 1 has a useful life of four (4) years and a salvage value of L,000. You must complete the depreciation schedule and divide the first years calculated by twelve (12). eord journal entry. Use double decling method. Worksheet supplied. ) estimated income taxes for the month, $5,000. From the accounts in the ledger, prepare an adjusted trial balance. (Note: Normally a trial balance is epared before adjustments but is omitted here to save time.) From the adjusted trial balance, prepare an income statement, a statement of retained earnings, id a balance sheet for December. Income Taxes is to be shown as part of total expenses. Prepare and post closing entries. Explanations required. Prepare a post-closing trial balance. B ECIAL PROJECT 1. Entries for December prepared 3. Adjusting entries for December prepared Closing entries for December prepared 6. S D₁ ce e n es R th 76 (1. SP. 2014 Dec. Lia F); ( xp₁ ce. ben et Date dad 1 1 1 1 5 General Journal Description To issue stock To pay one month's rent To purchase one-year policy To purchase computer & office equipment To purchase repair supplies on credit from DEF Company Post. Ref. Debit Page 1 Credit 8 15 21 To purchase newspaper advertisement To record receipt of revenue for the first half of the month To make payment on account to DEF Company Date 2014 Dec. 31 31 31 31 31 31 General Journal Description To record receipt of revenue for the last half of the month To declare and pay dividend To record salary expense To accrue payroll tax expense To estimate warranty costs To accrue estimated bad debts Post. Ref. Debit Page 2 Credit 31 To accrue estimated bad debts Monies owed by JCP deemed uncollectible. 1 1 Si at res yl 2014 Dec. 31 BE offic CIAL PROJECT-CLOSING ENTRIES Exp Date Closing entries: 31 Income Summary 31 31 General Journal Description Income Summary To close the credit balance account To close the debit balance accounts To close the Income Summary account To close the Dividends account Ref. Debit Page 4 Credit FILL IN FILL IN Cash (111) Accounts Receivable (113) Allowance for Uncollectable Accounts (114) Prepaid Insurance (117) Office Supplies (119) Computer & Office Equipment (144) Accumulated Depreciation-Computer & Office Equipment (145) Accounts Payable (212) Income Taxes Payable (213) Salaries Payable (214) Payroll Taxes Payable (216) Estimated Consulting Product Warranty (217) Common Stock (311) Retained Earnings (312) Dividends 3) Consulting Revenue (411) Salary Expense (510) 1). Rent Expense (511) Advertising Expense (512) ic Insurance Expense (513) Pi ne Depreciation Expense-Computer & Office Equipment (515) d Consulting Warranty Expense (525) e Uncollectable Account Expense (526) SE St ho Office Supplies Expense (514) OC Payroll Tax Expense (527) Income Taxes Expense (530) TOTAL 5. May income Statement, prepared FILL IN FILL IN Revenue Consulting Revenue Expenses Salary Expense (510) Rent Expense (511) Fiore Consulting Services, Inc. Advertising Expense (512) Insurance Expense (513) Office Supplies Expense (514) Depreciation Expense-Computer & Office Equipment (515) Consulting Warranty Expense (525) Uncollectable Account Expense (526) Payroll Tax Expense (527) Income Taxes Expense (530) Total expenses Net income FILL IN FILL IN Net income Subtotal Less dividends Fiore Consulting Services, Inc. YOU MUST COMPLETE ALL SHADED AREAS ALL IN FILL IN PROJECT Accounts Receivable Allowance for Uncollectable Accounts Less Accumulated Depreciation Total assets Total liabilities ic pe he Fiore Consulting Services, Inc. 1). Total Liabilities and Stockholders' equity Dec.post-closing trial balance prepared Assets Liabilities Stockholders' Equity Fiore Consulting Services, Inc. Post-Closing Trial Balance December 31, 2014 Cash Date 2014 Dec. Accouts Receivable Date 2014 Dec. Item Date 2014 Dec. Item Allowance for Uncollectable Accounts Post. Ref. Item Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 111 Balance Debit Account No. 113 Balance Debit Credit Debit Credit Account No. 114 Balance Credit 6 F i 31 m na Prepaid Insurance 2014 Dec. Date Date 2014 Dec. AL PROJECT Office Supplies Item Item Ref. Post. Ref. Debit Credit Account No. 11/ Balance Debit Debit Credit Credit Account No. 119 Balance Debit Credit Computer & Office Equipment Date d 2014 Dec. Date Accumulated Depreciation-Computer Equipment 2014 Dec. Accounts Payable Date 7 2011 Dec. Item Item Post. Ref. Debit Credit Item Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 144 Balance Debit Credit Account No. 145 Balance Debit Credit Account No. 212 Balance Debit Credit come Taxes Payable Date 2014 Dec. Salaries Payable Date 2014 Dec. Date 2014 Dec. AL PRO Payroll Taxes Payable Date 2014 Dec. Common Stock Item Date 2014 Item Estimated Consulting Warranty Liability Item Item Post. Ref. Item Ref. Ref. Ref. Post. Ref. Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Account No. 213 Balance Debit Account No. 214 Balance Debit Debit Credit Account No. 216 Balance Debit Credit Account No. 217 Balance Debit Credit Credit Account No. 311 Balance Credit u ia Er th, Retained Earnings an Tax re 2014 ed Date Fons Dec. 31 31 Dividends Date 2014 Dec. Item Item Post. Ref. Post. Ref. Debit Debit Credit Credit Account No. 312 Balance Debit Credit Account No. 313 Balance Debit Credit come Summary Date 2014 Dec. Consulting Revenue Date 2014 Dec. 31 Salary Expenxe Date 2014 Dec. Item Item Item Post. Ref. Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 314 Balance Debit Account No. 411 Balance Debit Credit Debit Credit Account No. 510 Balance Credit Rent Expense Date 2014 Dec. M CIAL PROJECT Advertising Expense Date 2014 Dec. Item Insurance Expense Date 2014 Dec. Item Item Post. Ref. Debit Credit Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 511 Balance Debit Credit Account No. 512 Balance Debit Credit Account No. 513 Balance Debit Credit m T. 31 1 sir ( ht to 20 (b) St an he n in xes Office Supplies Expense rch tio Depreciation Expense-Repair Equipment me Date 2014 Dec. 2014 Dec. Date 2014 Dec. Date Item CIAL PROJECT consulting Warranty Expense Item Post. Ref. Debit Credit Item Post. Ref. Debit Post. Ref. Debit Credit Account No. 514 Balance Debit Credit Account No. 515 Balance Credit Debit Credit Account No. 525 Balance Debit Credit ec Uncollectable Account Expense t m T ra Y₁ isi & un 2014 Dec. re ed; ( pur Date ciat ng m nth, Payroll Tax Expense Date 2014 Dec. Item Date Income Tax Expense 2014 Dec. Item Item Ref. Debit Credit Ref. Debit Ref. Debit Credit Credit Account No. 526 Balance Debit Credit Account No. 527 Balance Debit Credit Account No. 530 Balance Debit Credit c. Double- ME ecc Depreciation Method declining- balance ,re Year 1 2 3 4 ( me Ta rar. ry ( 2. Current Liabilities tisir & Current Liabilities = punt 5 to 3. Computation of Current Ratio Current Assets = + t + years = ** To reduce to estimated residual value Note: To receive full credit you must complete schedule above. 2. Please answer the following questions: + Current Ratio (Account Names) = Computation X X + X a. Is it a good idea for Mr. Fiore to take out more in dividends than his than his company earns? Explain why or why not? What will eventually happen? + 1 b. Compute the current ratio & working capital below. Be advised that you have to identify and list current assets & current liabilities below: 1. Current Assets Depreciation Tapic x 2 = Depreciation + divided by + + equals equals Carrying Value ² חי 3. Computation of Current Ratio Current Ratio (Account Names) = Current Ratio ($) = Current Ratio (TWO DECIMAL POINTS) = ax ons Working Capital State Formula: Working Capital ($) = Working Capital Equals: $ less less divided by divided by On Dec. 1, 2014, Pete Flore opened Fiore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by 5%. The first fiscal (calendar) year will end December 31, 2014. One salaried employee was hired on December 1, 2014. No benefits accrue for six months. Mr. Fiore does not take a salary at this time. During the month, he completed the following transactions for the company: Dec.. 1 Began business by depositing $100,000 in a bank account in the name of the company in exchange for 100,000 shares of $1 par value common stock. 1 Paid the rent for his office store for current month, $10,000. 1 Paid the premium on a one-year insurance policy, $24,000. 1 Purchased computer & office equipment on credit for $41,000. 5 Purchased office supplies from DEF Company on credit, $1,765. 8 Paid cash for an advertisement in a local newspaper, $300. 15 Billed consulting revenue for the first half of the month, $25,000. 21 Paid DEF Company on account, $500. 31 Billed consulting revenue for the second half of July, $35,000. 31 Declared and paid a cash dividend, $10,000. 31 Accrue one (1)month salary for sole employee paid on January 3, 2015-$8,000. 31 Accrue one (1)month payroll taxes for sole employee paid on January 3, 2015-7.65% of Salary Expense. 31 Industry history indicates 1% of sales must be accrued as provided as expense to cover expected warranty costs. The company experienced a clean month in Dec. 2014. Journalize this expense. 31 Mr. Fiore expects that uncollectible account expense will amount to .5%. (1/2 of 1%). Journalize. 31 I JCP Inc., a customer declares bankruptcy necessitating writing off the amount owed by them from A/R.-$1,000. REQUIRED FOR DECEMBER . Prepare journal entries to record the December transactions. Explanations supplied. . Open the following accounts: Cash (111); Accounts Receivable (113); Prepaid Insurance (117); Office Supplies (19); Computer & Office Equipment (144); Accumulated Depreciation-Computer & Office Equipment (145); ccounts Payable (212); Income Taxes Payable (213); Salaries Payable (214); Allowance for Uncollectable Accounts 14); Estimated Consulting Warranty Liability (217); Common Stock (311); Retained Earnings (312); ividends (313); Income Summary (314); Consulting Revenue (411); Salary Expense (510) Payroll Taxes Payable 16); Rent Expense (511); Advertising Expense (512); Insurance Expense (513);Office Supplies Expense (514); epreciation Expense-Computer & Office Equipment (515); Income Taxes Expense (530); Consulting Warranty <pense (525); Uncollectable Account Expense (526). Payroll Tax Expense (527); Salary Expense (510). ost the DECEMBER entries to the to the general ledger accounts.. Using the following information, record adjusting entries in the journal and post to the ledger accounts: ) one month's insurance has expired; (b) remaining inventory of unused repair supplies, $1,000; )The computer & office equipment purchased on Dec. 1 has a useful life of four (4) years and a salvage value of L,000. You must complete the depreciation schedule and divide the first years calculated by twelve (12). eord journal entry. Use double decling method. Worksheet supplied. ) estimated income taxes for the month, $5,000. From the accounts in the ledger, prepare an adjusted trial balance. (Note: Normally a trial balance is epared before adjustments but is omitted here to save time.) From the adjusted trial balance, prepare an income statement, a statement of retained earnings, id a balance sheet for December. Income Taxes is to be shown as part of total expenses. Prepare and post closing entries. Explanations required. Prepare a post-closing trial balance. B ECIAL PROJECT 1. Entries for December prepared 3. Adjusting entries for December prepared Closing entries for December prepared 6. S D₁ ce e n es R th 76 (1. SP. 2014 Dec. Lia F); ( xp₁ ce. ben et Date dad 1 1 1 1 5 General Journal Description To issue stock To pay one month's rent To purchase one-year policy To purchase computer & office equipment To purchase repair supplies on credit from DEF Company Post. Ref. Debit Page 1 Credit 8 15 21 To purchase newspaper advertisement To record receipt of revenue for the first half of the month To make payment on account to DEF Company Date 2014 Dec. 31 31 31 31 31 31 General Journal Description To record receipt of revenue for the last half of the month To declare and pay dividend To record salary expense To accrue payroll tax expense To estimate warranty costs To accrue estimated bad debts Post. Ref. Debit Page 2 Credit 31 To accrue estimated bad debts Monies owed by JCP deemed uncollectible. 1 1 Si at res yl 2014 Dec. 31 BE offic CIAL PROJECT-CLOSING ENTRIES Exp Date Closing entries: 31 Income Summary 31 31 General Journal Description Income Summary To close the credit balance account To close the debit balance accounts To close the Income Summary account To close the Dividends account Ref. Debit Page 4 Credit FILL IN FILL IN Cash (111) Accounts Receivable (113) Allowance for Uncollectable Accounts (114) Prepaid Insurance (117) Office Supplies (119) Computer & Office Equipment (144) Accumulated Depreciation-Computer & Office Equipment (145) Accounts Payable (212) Income Taxes Payable (213) Salaries Payable (214) Payroll Taxes Payable (216) Estimated Consulting Product Warranty (217) Common Stock (311) Retained Earnings (312) Dividends 3) Consulting Revenue (411) Salary Expense (510) 1). Rent Expense (511) Advertising Expense (512) ic Insurance Expense (513) Pi ne Depreciation Expense-Computer & Office Equipment (515) d Consulting Warranty Expense (525) e Uncollectable Account Expense (526) SE St ho Office Supplies Expense (514) OC Payroll Tax Expense (527) Income Taxes Expense (530) TOTAL 5. May income Statement, prepared FILL IN FILL IN Revenue Consulting Revenue Expenses Salary Expense (510) Rent Expense (511) Fiore Consulting Services, Inc. Advertising Expense (512) Insurance Expense (513) Office Supplies Expense (514) Depreciation Expense-Computer & Office Equipment (515) Consulting Warranty Expense (525) Uncollectable Account Expense (526) Payroll Tax Expense (527) Income Taxes Expense (530) Total expenses Net income FILL IN FILL IN Net income Subtotal Less dividends Fiore Consulting Services, Inc. YOU MUST COMPLETE ALL SHADED AREAS ALL IN FILL IN PROJECT Accounts Receivable Allowance for Uncollectable Accounts Less Accumulated Depreciation Total assets Total liabilities ic pe he Fiore Consulting Services, Inc. 1). Total Liabilities and Stockholders' equity Dec.post-closing trial balance prepared Assets Liabilities Stockholders' Equity Fiore Consulting Services, Inc. Post-Closing Trial Balance December 31, 2014 Cash Date 2014 Dec. Accouts Receivable Date 2014 Dec. Item Date 2014 Dec. Item Allowance for Uncollectable Accounts Post. Ref. Item Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 111 Balance Debit Account No. 113 Balance Debit Credit Debit Credit Account No. 114 Balance Credit 6 F i 31 m na Prepaid Insurance 2014 Dec. Date Date 2014 Dec. AL PROJECT Office Supplies Item Item Ref. Post. Ref. Debit Credit Account No. 11/ Balance Debit Debit Credit Credit Account No. 119 Balance Debit Credit Computer & Office Equipment Date d 2014 Dec. Date Accumulated Depreciation-Computer Equipment 2014 Dec. Accounts Payable Date 7 2011 Dec. Item Item Post. Ref. Debit Credit Item Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 144 Balance Debit Credit Account No. 145 Balance Debit Credit Account No. 212 Balance Debit Credit come Taxes Payable Date 2014 Dec. Salaries Payable Date 2014 Dec. Date 2014 Dec. AL PRO Payroll Taxes Payable Date 2014 Dec. Common Stock Item Date 2014 Item Estimated Consulting Warranty Liability Item Item Post. Ref. Item Ref. Ref. Ref. Post. Ref. Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Account No. 213 Balance Debit Account No. 214 Balance Debit Debit Credit Account No. 216 Balance Debit Credit Account No. 217 Balance Debit Credit Credit Account No. 311 Balance Credit u ia Er th, Retained Earnings an Tax re 2014 ed Date Fons Dec. 31 31 Dividends Date 2014 Dec. Item Item Post. Ref. Post. Ref. Debit Debit Credit Credit Account No. 312 Balance Debit Credit Account No. 313 Balance Debit Credit come Summary Date 2014 Dec. Consulting Revenue Date 2014 Dec. 31 Salary Expenxe Date 2014 Dec. Item Item Item Post. Ref. Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 314 Balance Debit Account No. 411 Balance Debit Credit Debit Credit Account No. 510 Balance Credit Rent Expense Date 2014 Dec. M CIAL PROJECT Advertising Expense Date 2014 Dec. Item Insurance Expense Date 2014 Dec. Item Item Post. Ref. Debit Credit Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 511 Balance Debit Credit Account No. 512 Balance Debit Credit Account No. 513 Balance Debit Credit m T. 31 1 sir ( ht to 20 (b) St an he n in xes Office Supplies Expense rch tio Depreciation Expense-Repair Equipment me Date 2014 Dec. 2014 Dec. Date 2014 Dec. Date Item CIAL PROJECT consulting Warranty Expense Item Post. Ref. Debit Credit Item Post. Ref. Debit Post. Ref. Debit Credit Account No. 514 Balance Debit Credit Account No. 515 Balance Credit Debit Credit Account No. 525 Balance Debit Credit ec Uncollectable Account Expense t m T ra Y₁ isi & un 2014 Dec. re ed; ( pur Date ciat ng m nth, Payroll Tax Expense Date 2014 Dec. Item Date Income Tax Expense 2014 Dec. Item Item Ref. Debit Credit Ref. Debit Ref. Debit Credit Credit Account No. 526 Balance Debit Credit Account No. 527 Balance Debit Credit Account No. 530 Balance Debit Credit c. Double- ME ecc Depreciation Method declining- balance ,re Year 1 2 3 4 ( me Ta rar. ry ( 2. Current Liabilities tisir & Current Liabilities = punt 5 to 3. Computation of Current Ratio Current Assets = + t + years = ** To reduce to estimated residual value Note: To receive full credit you must complete schedule above. 2. Please answer the following questions: + Current Ratio (Account Names) = Computation X X + X a. Is it a good idea for Mr. Fiore to take out more in dividends than his than his company earns? Explain why or why not? What will eventually happen? + 1 b. Compute the current ratio & working capital below. Be advised that you have to identify and list current assets & current liabilities below: 1. Current Assets Depreciation Tapic x 2 = Depreciation + divided by + + equals equals Carrying Value ² חי 3. Computation of Current Ratio Current Ratio (Account Names) = Current Ratio ($) = Current Ratio (TWO DECIMAL POINTS) = ax ons Working Capital State Formula: Working Capital ($) = Working Capital Equals: $ less less divided by divided by On Dec. 1, 2014, Pete Flore opened Fiore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by 5%. The first fiscal (calendar) year will end December 31, 2014. One salaried employee was hired on December 1, 2014. No benefits accrue for six months. Mr. Fiore does not take a salary at this time. During the month, he completed the following transactions for the company: Dec.. 1 Began business by depositing $100,000 in a bank account in the name of the company in exchange for 100,000 shares of $1 par value common stock. 1 Paid the rent for his office store for current month, $10,000. 1 Paid the premium on a one-year insurance policy, $24,000. 1 Purchased computer & office equipment on credit for $41,000. 5 Purchased office supplies from DEF Company on credit, $1,765. 8 Paid cash for an advertisement in a local newspaper, $300. 15 Billed consulting revenue for the first half of the month, $25,000. 21 Paid DEF Company on account, $500. 31 Billed consulting revenue for the second half of July, $35,000. 31 Declared and paid a cash dividend, $10,000. 31 Accrue one (1)month salary for sole employee paid on January 3, 2015-$8,000. 31 Accrue one (1)month payroll taxes for sole employee paid on January 3, 2015-7.65% of Salary Expense. 31 Industry history indicates 1% of sales must be accrued as provided as expense to cover expected warranty costs. The company experienced a clean month in Dec. 2014. Journalize this expense. 31 Mr. Fiore expects that uncollectible account expense will amount to .5%. (1/2 of 1%). Journalize. 31 I JCP Inc., a customer declares bankruptcy necessitating writing off the amount owed by them from A/R.-$1,000. REQUIRED FOR DECEMBER . Prepare journal entries to record the December transactions. Explanations supplied. . Open the following accounts: Cash (111); Accounts Receivable (113); Prepaid Insurance (117); Office Supplies (19); Computer & Office Equipment (144); Accumulated Depreciation-Computer & Office Equipment (145); ccounts Payable (212); Income Taxes Payable (213); Salaries Payable (214); Allowance for Uncollectable Accounts 14); Estimated Consulting Warranty Liability (217); Common Stock (311); Retained Earnings (312); ividends (313); Income Summary (314); Consulting Revenue (411); Salary Expense (510) Payroll Taxes Payable 16); Rent Expense (511); Advertising Expense (512); Insurance Expense (513);Office Supplies Expense (514); epreciation Expense-Computer & Office Equipment (515); Income Taxes Expense (530); Consulting Warranty <pense (525); Uncollectable Account Expense (526). Payroll Tax Expense (527); Salary Expense (510). ost the DECEMBER entries to the to the general ledger accounts.. Using the following information, record adjusting entries in the journal and post to the ledger accounts: ) one month's insurance has expired; (b) remaining inventory of unused repair supplies, $1,000; )The computer & office equipment purchased on Dec. 1 has a useful life of four (4) years and a salvage value of L,000. You must complete the depreciation schedule and divide the first years calculated by twelve (12). eord journal entry. Use double decling method. Worksheet supplied. ) estimated income taxes for the month, $5,000. From the accounts in the ledger, prepare an adjusted trial balance. (Note: Normally a trial balance is epared before adjustments but is omitted here to save time.) From the adjusted trial balance, prepare an income statement, a statement of retained earnings, id a balance sheet for December. Income Taxes is to be shown as part of total expenses. Prepare and post closing entries. Explanations required. Prepare a post-closing trial balance. B ECIAL PROJECT 1. Entries for December prepared 3. Adjusting entries for December prepared Closing entries for December prepared 6. S D₁ ce e n es R th 76 (1. SP. 2014 Dec. Lia F); ( xp₁ ce. ben et Date dad 1 1 1 1 5 General Journal Description To issue stock To pay one month's rent To purchase one-year policy To purchase computer & office equipment To purchase repair supplies on credit from DEF Company Post. Ref. Debit Page 1 Credit 8 15 21 To purchase newspaper advertisement To record receipt of revenue for the first half of the month To make payment on account to DEF Company Date 2014 Dec. 31 31 31 31 31 31 General Journal Description To record receipt of revenue for the last half of the month To declare and pay dividend To record salary expense To accrue payroll tax expense To estimate warranty costs To accrue estimated bad debts Post. Ref. Debit Page 2 Credit 31 To accrue estimated bad debts Monies owed by JCP deemed uncollectible. 1 1 Si at res yl 2014 Dec. 31 BE offic CIAL PROJECT-CLOSING ENTRIES Exp Date Closing entries: 31 Income Summary 31 31 General Journal Description Income Summary To close the credit balance account To close the debit balance accounts To close the Income Summary account To close the Dividends account Ref. Debit Page 4 Credit FILL IN FILL IN Cash (111) Accounts Receivable (113) Allowance for Uncollectable Accounts (114) Prepaid Insurance (117) Office Supplies (119) Computer & Office Equipment (144) Accumulated Depreciation-Computer & Office Equipment (145) Accounts Payable (212) Income Taxes Payable (213) Salaries Payable (214) Payroll Taxes Payable (216) Estimated Consulting Product Warranty (217) Common Stock (311) Retained Earnings (312) Dividends 3) Consulting Revenue (411) Salary Expense (510) 1). Rent Expense (511) Advertising Expense (512) ic Insurance Expense (513) Pi ne Depreciation Expense-Computer & Office Equipment (515) d Consulting Warranty Expense (525) e Uncollectable Account Expense (526) SE St ho Office Supplies Expense (514) OC Payroll Tax Expense (527) Income Taxes Expense (530) TOTAL 5. May income Statement, prepared FILL IN FILL IN Revenue Consulting Revenue Expenses Salary Expense (510) Rent Expense (511) Fiore Consulting Services, Inc. Advertising Expense (512) Insurance Expense (513) Office Supplies Expense (514) Depreciation Expense-Computer & Office Equipment (515) Consulting Warranty Expense (525) Uncollectable Account Expense (526) Payroll Tax Expense (527) Income Taxes Expense (530) Total expenses Net income FILL IN FILL IN Net income Subtotal Less dividends Fiore Consulting Services, Inc. YOU MUST COMPLETE ALL SHADED AREAS ALL IN FILL IN PROJECT Accounts Receivable Allowance for Uncollectable Accounts Less Accumulated Depreciation Total assets Total liabilities ic pe he Fiore Consulting Services, Inc. 1). Total Liabilities and Stockholders' equity Dec.post-closing trial balance prepared Assets Liabilities Stockholders' Equity Fiore Consulting Services, Inc. Post-Closing Trial Balance December 31, 2014 Cash Date 2014 Dec. Accouts Receivable Date 2014 Dec. Item Date 2014 Dec. Item Allowance for Uncollectable Accounts Post. Ref. Item Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 111 Balance Debit Account No. 113 Balance Debit Credit Debit Credit Account No. 114 Balance Credit 6 F i 31 m na Prepaid Insurance 2014 Dec. Date Date 2014 Dec. AL PROJECT Office Supplies Item Item Ref. Post. Ref. Debit Credit Account No. 11/ Balance Debit Debit Credit Credit Account No. 119 Balance Debit Credit Computer & Office Equipment Date d 2014 Dec. Date Accumulated Depreciation-Computer Equipment 2014 Dec. Accounts Payable Date 7 2011 Dec. Item Item Post. Ref. Debit Credit Item Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 144 Balance Debit Credit Account No. 145 Balance Debit Credit Account No. 212 Balance Debit Credit come Taxes Payable Date 2014 Dec. Salaries Payable Date 2014 Dec. Date 2014 Dec. AL PRO Payroll Taxes Payable Date 2014 Dec. Common Stock Item Date 2014 Item Estimated Consulting Warranty Liability Item Item Post. Ref. Item Ref. Ref. Ref. Post. Ref. Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Account No. 213 Balance Debit Account No. 214 Balance Debit Debit Credit Account No. 216 Balance Debit Credit Account No. 217 Balance Debit Credit Credit Account No. 311 Balance Credit u ia Er th, Retained Earnings an Tax re 2014 ed Date Fons Dec. 31 31 Dividends Date 2014 Dec. Item Item Post. Ref. Post. Ref. Debit Debit Credit Credit Account No. 312 Balance Debit Credit Account No. 313 Balance Debit Credit come Summary Date 2014 Dec. Consulting Revenue Date 2014 Dec. 31 Salary Expenxe Date 2014 Dec. Item Item Item Post. Ref. Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 314 Balance Debit Account No. 411 Balance Debit Credit Debit Credit Account No. 510 Balance Credit Rent Expense Date 2014 Dec. M CIAL PROJECT Advertising Expense Date 2014 Dec. Item Insurance Expense Date 2014 Dec. Item Item Post. Ref. Debit Credit Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 511 Balance Debit Credit Account No. 512 Balance Debit Credit Account No. 513 Balance Debit Credit m T. 31 1 sir ( ht to 20 (b) St an he n in xes Office Supplies Expense rch tio Depreciation Expense-Repair Equipment me Date 2014 Dec. 2014 Dec. Date 2014 Dec. Date Item CIAL PROJECT consulting Warranty Expense Item Post. Ref. Debit Credit Item Post. Ref. Debit Post. Ref. Debit Credit Account No. 514 Balance Debit Credit Account No. 515 Balance Credit Debit Credit Account No. 525 Balance Debit Credit ec Uncollectable Account Expense t m T ra Y₁ isi & un 2014 Dec. re ed; ( pur Date ciat ng m nth, Payroll Tax Expense Date 2014 Dec. Item Date Income Tax Expense 2014 Dec. Item Item Ref. Debit Credit Ref. Debit Ref. Debit Credit Credit Account No. 526 Balance Debit Credit Account No. 527 Balance Debit Credit Account No. 530 Balance Debit Credit c. Double- ME ecc Depreciation Method declining- balance ,re Year 1 2 3 4 ( me Ta rar. ry ( 2. Current Liabilities tisir & Current Liabilities = punt 5 to 3. Computation of Current Ratio Current Assets = + t + years = ** To reduce to estimated residual value Note: To receive full credit you must complete schedule above. 2. Please answer the following questions: + Current Ratio (Account Names) = Computation X X + X a. Is it a good idea for Mr. Fiore to take out more in dividends than his than his company earns? Explain why or why not? What will eventually happen? + 1 b. Compute the current ratio & working capital below. Be advised that you have to identify and list current assets & current liabilities below: 1. Current Assets Depreciation Tapic x 2 = Depreciation + divided by + + equals equals Carrying Value ² חי 3. Computation of Current Ratio Current Ratio (Account Names) = Current Ratio ($) = Current Ratio (TWO DECIMAL POINTS) = ax ons Working Capital State Formula: Working Capital ($) = Working Capital Equals: $ less less divided by divided by On Dec. 1, 2014, Pete Flore opened Fiore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by 5%. The first fiscal (calendar) year will end December 31, 2014. One salaried employee was hired on December 1, 2014. No benefits accrue for six months. Mr. Fiore does not take a salary at this time. During the month, he completed the following transactions for the company: Dec.. 1 Began business by depositing $100,000 in a bank account in the name of the company in exchange for 100,000 shares of $1 par value common stock. 1 Paid the rent for his office store for current month, $10,000. 1 Paid the premium on a one-year insurance policy, $24,000. 1 Purchased computer & office equipment on credit for $41,000. 5 Purchased office supplies from DEF Company on credit, $1,765. 8 Paid cash for an advertisement in a local newspaper, $300. 15 Billed consulting revenue for the first half of the month, $25,000. 21 Paid DEF Company on account, $500. 31 Billed consulting revenue for the second half of July, $35,000. 31 Declared and paid a cash dividend, $10,000. 31 Accrue one (1)month salary for sole employee paid on January 3, 2015-$8,000. 31 Accrue one (1)month payroll taxes for sole employee paid on January 3, 2015-7.65% of Salary Expense. 31 Industry history indicates 1% of sales must be accrued as provided as expense to cover expected warranty costs. The company experienced a clean month in Dec. 2014. Journalize this expense. 31 Mr. Fiore expects that uncollectible account expense will amount to .5%. (1/2 of 1%). Journalize. 31 I JCP Inc., a customer declares bankruptcy necessitating writing off the amount owed by them from A/R.-$1,000. REQUIRED FOR DECEMBER . Prepare journal entries to record the December transactions. Explanations supplied. . Open the following accounts: Cash (111); Accounts Receivable (113); Prepaid Insurance (117); Office Supplies (19); Computer & Office Equipment (144); Accumulated Depreciation-Computer & Office Equipment (145); ccounts Payable (212); Income Taxes Payable (213); Salaries Payable (214); Allowance for Uncollectable Accounts 14); Estimated Consulting Warranty Liability (217); Common Stock (311); Retained Earnings (312); ividends (313); Income Summary (314); Consulting Revenue (411); Salary Expense (510) Payroll Taxes Payable 16); Rent Expense (511); Advertising Expense (512); Insurance Expense (513);Office Supplies Expense (514); epreciation Expense-Computer & Office Equipment (515); Income Taxes Expense (530); Consulting Warranty <pense (525); Uncollectable Account Expense (526). Payroll Tax Expense (527); Salary Expense (510). ost the DECEMBER entries to the to the general ledger accounts.. Using the following information, record adjusting entries in the journal and post to the ledger accounts: ) one month's insurance has expired; (b) remaining inventory of unused repair supplies, $1,000; )The computer & office equipment purchased on Dec. 1 has a useful life of four (4) years and a salvage value of L,000. You must complete the depreciation schedule and divide the first years calculated by twelve (12). eord journal entry. Use double decling method. Worksheet supplied. ) estimated income taxes for the month, $5,000. From the accounts in the ledger, prepare an adjusted trial balance. (Note: Normally a trial balance is epared before adjustments but is omitted here to save time.) From the adjusted trial balance, prepare an income statement, a statement of retained earnings, id a balance sheet for December. Income Taxes is to be shown as part of total expenses. Prepare and post closing entries. Explanations required. Prepare a post-closing trial balance. B ECIAL PROJECT 1. Entries for December prepared 3. Adjusting entries for December prepared Closing entries for December prepared 6. S D₁ ce e n es R th 76 (1. SP. 2014 Dec. Lia F); ( xp₁ ce. ben et Date dad 1 1 1 1 5 General Journal Description To issue stock To pay one month's rent To purchase one-year policy To purchase computer & office equipment To purchase repair supplies on credit from DEF Company Post. Ref. Debit Page 1 Credit 8 15 21 To purchase newspaper advertisement To record receipt of revenue for the first half of the month To make payment on account to DEF Company Date 2014 Dec. 31 31 31 31 31 31 General Journal Description To record receipt of revenue for the last half of the month To declare and pay dividend To record salary expense To accrue payroll tax expense To estimate warranty costs To accrue estimated bad debts Post. Ref. Debit Page 2 Credit 31 To accrue estimated bad debts Monies owed by JCP deemed uncollectible. 1 1 Si at res yl 2014 Dec. 31 BE offic CIAL PROJECT-CLOSING ENTRIES Exp Date Closing entries: 31 Income Summary 31 31 General Journal Description Income Summary To close the credit balance account To close the debit balance accounts To close the Income Summary account To close the Dividends account Ref. Debit Page 4 Credit FILL IN FILL IN Cash (111) Accounts Receivable (113) Allowance for Uncollectable Accounts (114) Prepaid Insurance (117) Office Supplies (119) Computer & Office Equipment (144) Accumulated Depreciation-Computer & Office Equipment (145) Accounts Payable (212) Income Taxes Payable (213) Salaries Payable (214) Payroll Taxes Payable (216) Estimated Consulting Product Warranty (217) Common Stock (311) Retained Earnings (312) Dividends 3) Consulting Revenue (411) Salary Expense (510) 1). Rent Expense (511) Advertising Expense (512) ic Insurance Expense (513) Pi ne Depreciation Expense-Computer & Office Equipment (515) d Consulting Warranty Expense (525) e Uncollectable Account Expense (526) SE St ho Office Supplies Expense (514) OC Payroll Tax Expense (527) Income Taxes Expense (530) TOTAL 5. May income Statement, prepared FILL IN FILL IN Revenue Consulting Revenue Expenses Salary Expense (510) Rent Expense (511) Fiore Consulting Services, Inc. Advertising Expense (512) Insurance Expense (513) Office Supplies Expense (514) Depreciation Expense-Computer & Office Equipment (515) Consulting Warranty Expense (525) Uncollectable Account Expense (526) Payroll Tax Expense (527) Income Taxes Expense (530) Total expenses Net income FILL IN FILL IN Net income Subtotal Less dividends Fiore Consulting Services, Inc. YOU MUST COMPLETE ALL SHADED AREAS ALL IN FILL IN PROJECT Accounts Receivable Allowance for Uncollectable Accounts Less Accumulated Depreciation Total assets Total liabilities ic pe he Fiore Consulting Services, Inc. 1). Total Liabilities and Stockholders' equity Dec.post-closing trial balance prepared Assets Liabilities Stockholders' Equity Fiore Consulting Services, Inc. Post-Closing Trial Balance December 31, 2014 Cash Date 2014 Dec. Accouts Receivable Date 2014 Dec. Item Date 2014 Dec. Item Allowance for Uncollectable Accounts Post. Ref. Item Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 111 Balance Debit Account No. 113 Balance Debit Credit Debit Credit Account No. 114 Balance Credit 6 F i 31 m na Prepaid Insurance 2014 Dec. Date Date 2014 Dec. AL PROJECT Office Supplies Item Item Ref. Post. Ref. Debit Credit Account No. 11/ Balance Debit Debit Credit Credit Account No. 119 Balance Debit Credit Computer & Office Equipment Date d 2014 Dec. Date Accumulated Depreciation-Computer Equipment 2014 Dec. Accounts Payable Date 7 2011 Dec. Item Item Post. Ref. Debit Credit Item Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 144 Balance Debit Credit Account No. 145 Balance Debit Credit Account No. 212 Balance Debit Credit come Taxes Payable Date 2014 Dec. Salaries Payable Date 2014 Dec. Date 2014 Dec. AL PRO Payroll Taxes Payable Date 2014 Dec. Common Stock Item Date 2014 Item Estimated Consulting Warranty Liability Item Item Post. Ref. Item Ref. Ref. Ref. Post. Ref. Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Account No. 213 Balance Debit Account No. 214 Balance Debit Debit Credit Account No. 216 Balance Debit Credit Account No. 217 Balance Debit Credit Credit Account No. 311 Balance Credit u ia Er th, Retained Earnings an Tax re 2014 ed Date Fons Dec. 31 31 Dividends Date 2014 Dec. Item Item Post. Ref. Post. Ref. Debit Debit Credit Credit Account No. 312 Balance Debit Credit Account No. 313 Balance Debit Credit come Summary Date 2014 Dec. Consulting Revenue Date 2014 Dec. 31 Salary Expenxe Date 2014 Dec. Item Item Item Post. Ref. Post. Ref. Ref. Debit Debit Debit Credit Credit Credit Account No. 314 Balance Debit Account No. 411 Balance Debit Credit Debit Credit Account No. 510 Balance Credit Rent Expense Date 2014 Dec. M CIAL PROJECT Advertising Expense Date 2014 Dec. Item Insurance Expense Date 2014 Dec. Item Item Post. Ref. Debit Credit Post. Ref. Debit Credit Post. Ref. Debit Credit Account No. 511 Balance Debit Credit Account No. 512 Balance Debit Credit Account No. 513 Balance Debit Credit m T. 31 1 sir ( ht to 20 (b) St an he n in xes Office Supplies Expense rch tio Depreciation Expense-Repair Equipment me Date 2014 Dec. 2014 Dec. Date 2014 Dec. Date Item CIAL PROJECT consulting Warranty Expense Item Post. Ref. Debit Credit Item Post. Ref. Debit Post. Ref. Debit Credit Account No. 514 Balance Debit Credit Account No. 515 Balance Credit Debit Credit Account No. 525 Balance Debit Credit ec Uncollectable Account Expense t m T ra Y₁ isi & un 2014 Dec. re ed; ( pur Date ciat ng m nth, Payroll Tax Expense Date 2014 Dec. Item Date Income Tax Expense 2014 Dec. Item Item Ref. Debit Credit Ref. Debit Ref. Debit Credit Credit Account No. 526 Balance Debit Credit Account No. 527 Balance Debit Credit Account No. 530 Balance Debit Credit c. Double- ME ecc Depreciation Method declining- balance ,re Year 1 2 3 4 ( me Ta rar. ry ( 2. Current Liabilities tisir & Current Liabilities = punt 5 to 3. Computation of Current Ratio Current Assets = + t + years = ** To reduce to estimated residual value Note: To receive full credit you must complete schedule above. 2. Please answer the following questions: + Current Ratio (Account Names) = Computation X X + X a. Is it a good idea for Mr. Fiore to take out more in dividends than his than his company earns? Explain why or why not? What will eventually happen? + 1 b. Compute the current ratio & working capital below. Be advised that you have to identify and list current assets & current liabilities below: 1. Current Assets Depreciation Tapic x 2 = Depreciation + divided by + + equals equals Carrying Value ² חי 3. Computation of Current Ratio Current Ratio (Account Names) = Current Ratio ($) = Current Ratio (TWO DECIMAL POINTS) = ax ons Working Capital State Formula: Working Capital ($) = Working Capital Equals: $ less less divided by divided by

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