The service company Falcon Flags, Inc. (FFI) had the following balances as of December 31, 2018....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The service company Falcon Flags, Inc. (FFI) had the following balances as of December 31, 2018. $ 25,000 $ 20,500 $ 1,200 Common Stock Retained Earnings Land Utilities Payable Notes Payable Accounts Payable Salaries Payable Unearned Revenue Cash Accounts Receivable Supplies During 2019, FFI engaged in the following transactions: 1. Issued common stock for $15,000 cash. 2. $ 20,000 $ 13,900 $ 8,000 $ 800 On January 2, purchased office equipment for $7,700 cash. The equipment has a 7-year useful life and no salvage value. Performed $85,000 of services during the year: $32,000 for cash and $53,000 on account. Paid $14,500 for utilities during the year.. $ 10,000 $ 1,500 $ 1,000 $ 7,500 3. 4. 5. Purchased $5,300 of supplies on account. 6. On May 1, paid $16,200 cash to rent a warehouse for one year. 7. On July 1, borrowed $18,000 by signing a promissory note with a local bank. The note payable is due in one year (6/30/20). 8. Paid $40,000 for salaries during the year. 9. Collected $55,500 of accounts receivable during the year. 10. Paid $6.200 for supplies previously purchased on account. 11. Paid cash dividends of $8,500 to the owners. 12. Paid $10,000 for advertising during 2019. Twenty-five percent of the advertising expenditure is for ads to be run during 2020. 13. On December 1, purchased land for $21,000. An appraisal at the end of the year valued the land at $23,500. Adjusting Entries 14. Adjusted $1,100 for depreciation on office equipment in item #2. 15. Adjusted the rent from item #6. 16. Accrued interest on the notes payable. The interest rate on the note in item #7 is 6%. The note payable in the beginning balance has a 4% interest rate. It is a five-year note that was borrowed in 2017 and will be repaid in 2022. Interest is paid annually. FFI last paid interest on December 31, 2018. The company will pay any current interest due on January 3, 2020. 17. Received a $950 bill for December utilities. The bill will be paid in 2020. 18. Accrued salaries on December 31 were $3,300. 19. Recognized revenue from the unearned revenue (see opening balances above). The unearned revenue relates to a $9,000 payment received on October 1, 2018 for an 18-month contract beginning on that date. 20. On December 31, a physical count of supplies indicated there was $1,450 of supplies remaining. Required: Analyze the transactions above. Use the Excel spreadsheet template to post the transactions to T-accounts. After posting all regular and adjusting entries for the year, create a trial balance using Excel. Use the trial balance to prepare closing entries and financial statements. FFI's financial statements must be prepared for the year ended December 31, 2019. You must create a Classified Balance Sheet, Multi-step Income Statement, Statement of Ownership Equity, and Statement of Cash Flows. The financial statements must be prepared using Excel. Use Excel to automate the calculations and flow all of the information from the T-accounts to the financial statements. Account balances and account titles should update from the T-accounts, through the trial balance to the financial statements. Use Excel formulas as much as possible for maximum flexibility. Pay attention to the accounting (beginning balances, accruals, deferrals, etc.). This homework assignment is worth 10 points. Half of your grade will be based on accuracy of the financial statements and supporting schedules. The other half of your grade will be based on level of Excel flexibility and integration. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 -40 41 42 43 44 45 46 47 A B Debit (+) Cash Credit (-) D E T-Accounts Accounts Payable Debit (-) F Credit (+) G H Common Stock Debit (-) Debit (-) Service Revenue Credit (+) I Credit (+) Salaries Expense Debit (+) Credit (-) J 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 A Totals Totals B Account Titles Account Titles Trial Balance Closing Entries D Debit Debit E F Credit Credit G 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 A B Assets Total Assets Liabilities Total Liabilities Equity Total Equity Total Liab. & Equity C Balance Sheet Statement of Changes in Equity Beginning Common Stock. Plus: Stock Issued Ending Common Stock Total Equity D EF Financial Statements - As of and For the Year Ended Beginning Retained Earnings Plus: Net Income Less: Dividends Ending Retained Earnings Revenues Expenses Net Income G Income Statement Statement of Cash Flows Cash Flows From Operating Activities Net Cash Flows From Operating Activities Cash Flows From Investing Activities Net Cash Flows From Investing Activities Cash Flows From Financing Activities Net Cash Flows From Financing Activities Net Change in Cash Plus: Beginning Cash Balance Ending Cash Balance H The service company Falcon Flags, Inc. (FFI) had the following balances as of December 31, 2018. $ 25,000 $ 20,500 $ 1,200 Common Stock Retained Earnings Land Utilities Payable Notes Payable Accounts Payable Salaries Payable Unearned Revenue Cash Accounts Receivable Supplies During 2019, FFI engaged in the following transactions: 1. Issued common stock for $15,000 cash. 2. $ 20,000 $ 13,900 $ 8,000 $ 800 On January 2, purchased office equipment for $7,700 cash. The equipment has a 7-year useful life and no salvage value. Performed $85,000 of services during the year: $32,000 for cash and $53,000 on account. Paid $14,500 for utilities during the year.. $ 10,000 $ 1,500 $ 1,000 $ 7,500 3. 4. 5. Purchased $5,300 of supplies on account. 6. On May 1, paid $16,200 cash to rent a warehouse for one year. 7. On July 1, borrowed $18,000 by signing a promissory note with a local bank. The note payable is due in one year (6/30/20). 8. Paid $40,000 for salaries during the year. 9. Collected $55,500 of accounts receivable during the year. 10. Paid $6.200 for supplies previously purchased on account. 11. Paid cash dividends of $8,500 to the owners. 12. Paid $10,000 for advertising during 2019. Twenty-five percent of the advertising expenditure is for ads to be run during 2020. 13. On December 1, purchased land for $21,000. An appraisal at the end of the year valued the land at $23,500. Adjusting Entries 14. Adjusted $1,100 for depreciation on office equipment in item #2. 15. Adjusted the rent from item #6. 16. Accrued interest on the notes payable. The interest rate on the note in item #7 is 6%. The note payable in the beginning balance has a 4% interest rate. It is a five-year note that was borrowed in 2017 and will be repaid in 2022. Interest is paid annually. FFI last paid interest on December 31, 2018. The company will pay any current interest due on January 3, 2020. 17. Received a $950 bill for December utilities. The bill will be paid in 2020. 18. Accrued salaries on December 31 were $3,300. 19. Recognized revenue from the unearned revenue (see opening balances above). The unearned revenue relates to a $9,000 payment received on October 1, 2018 for an 18-month contract beginning on that date. 20. On December 31, a physical count of supplies indicated there was $1,450 of supplies remaining. Required: Analyze the transactions above. Use the Excel spreadsheet template to post the transactions to T-accounts. After posting all regular and adjusting entries for the year, create a trial balance using Excel. Use the trial balance to prepare closing entries and financial statements. FFI's financial statements must be prepared for the year ended December 31, 2019. You must create a Classified Balance Sheet, Multi-step Income Statement, Statement of Ownership Equity, and Statement of Cash Flows. The financial statements must be prepared using Excel. Use Excel to automate the calculations and flow all of the information from the T-accounts to the financial statements. Account balances and account titles should update from the T-accounts, through the trial balance to the financial statements. Use Excel formulas as much as possible for maximum flexibility. Pay attention to the accounting (beginning balances, accruals, deferrals, etc.). This homework assignment is worth 10 points. Half of your grade will be based on accuracy of the financial statements and supporting schedules. The other half of your grade will be based on level of Excel flexibility and integration. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 -40 41 42 43 44 45 46 47 A B Debit (+) Cash Credit (-) D E T-Accounts Accounts Payable Debit (-) F Credit (+) G H Common Stock Debit (-) Debit (-) Service Revenue Credit (+) I Credit (+) Salaries Expense Debit (+) Credit (-) J 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 A Totals Totals B Account Titles Account Titles Trial Balance Closing Entries D Debit Debit E F Credit Credit G 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 A B Assets Total Assets Liabilities Total Liabilities Equity Total Equity Total Liab. & Equity C Balance Sheet Statement of Changes in Equity Beginning Common Stock. Plus: Stock Issued Ending Common Stock Total Equity D EF Financial Statements - As of and For the Year Ended Beginning Retained Earnings Plus: Net Income Less: Dividends Ending Retained Earnings Revenues Expenses Net Income G Income Statement Statement of Cash Flows Cash Flows From Operating Activities Net Cash Flows From Operating Activities Cash Flows From Investing Activities Net Cash Flows From Investing Activities Cash Flows From Financing Activities Net Cash Flows From Financing Activities Net Change in Cash Plus: Beginning Cash Balance Ending Cash Balance H
Expert Answer:
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
Each alternative has a 10 year useful life and no salvage value. A B C Initial Cost $3000 $6000 $2000 Uniform Annual Benifits 410 980 350 a) Construct a choice table for interest rates from 0% to...
-
6 Dunder Mifflin, Inc. had the following balances as of 1/1/20X1: 7 Raw Materials: $19,000 8 Work in Process: $40,000 Finished Goods: $17,000 9 10 11 Additional information: 12 a. Raw materials...
-
Thompson Industrial Supply had the following balances as of December 31, 2012: Total Current Assets............................................................................................ $...
-
Determine which of the fundamental laws of algebra is demonstrated. 8(3 2) = 8(3) 8(2)
-
Spiffy Dry Cleaners has recently changed management, and the new owners want to revise the current layout. The store performs six main services: (1) Laundry, (2) Dry cleaning, (3) Pressing, (4)...
-
Two ties are taken at random from a bag of three plain and five striped ties. By use of a tree diagram, or otherwise, find the probability that both ties are: a. Plain b. Striped.
-
Explain the difference between design, analysis, and patterns.
-
Podsednik Corporation has 20 employees who each earn $140 a day. The following information is available. 1. At December 31, Podsednik recorded vacation benefits. Each employee earned 5 vacation days...
-
In what ways does HR assist managers in handling employee performance issues or conflicts within their teams? What role does HR play in helping managers navigate challenges related to allegations and...
-
Reconsider the example of choosing the advertising budget for the VRX2000 that is presented in Section 1.4. There it was determined that the optimal level of advertising spending was $135,392 leading...
-
Your rating in a job interview is high in contrast to the candidate who was interviewed directly before you, who was rated extremely low. Your own high rating might be partially attributed to which...
-
Perhaps the most spectacular technological advance in recent history has been the development and growth of computing and the tools and applications that have come with it. Almost all of us use...
-
An economist wants to estimate mean annual income from the first year of work for college graduates who have had the profound wisdom to take a statistics course. How many such incomes must be found...
-
True Or False The national median for jury awards has steadily increased since 1990.
-
The ocean is mostly heated from the top, by light from the sun. The warmer surface water doesn't mix much with the colder deep ocean water. This lack of mixing can be ascribed to a lack of A....
-
Consider an ETF with the following trading costs and management fees: Excluding compound effects, the expected total holding-period cost for investing in the ETF over a nine-month holding period is...
-
You are retained as a financial consultant by Small retail outlet analyse to two proposed capital Investment projects: Project X and Project Y. Each project. has a cost of $10,000 and the cost of...
-
Write electron configurations for the following ions, and determine which have noble-gas configurations: (a) Cd2+ (b) p3- (c) Zr4+ (d) Ru3+ (e) As3- (f) Ag+
-
Dobbs Wholesale Antiques makes all sales under terms of FOB shipping point. The company usually ships inventory to customers approximately one week after receiving the order. For orders received late...
-
Which principle states that businesses should use the same accounting methods and procedures from period to period?
-
What method is used for investments in equity securities with more than 50% ownership? Briefly describe this method.
-
In the research on leader behaviors, which style of leadership describes the preferred high-high combination? (a) transformational (b) transactional (c) laissez-faire (d) democratic
-
When managers use offers of rewards and threats of punishments to try to get others to do what they want them to do, they are using which type of power? (a) formal authority (b) position (c) referent...
-
In terms of leadership behaviors, someone who focuses on doing a very good job of planning work tasks, setting performance standards, and monitoring results would be described as _________. (a) task...
Study smarter with the SolutionInn App