$4$:$31$

$76$

Practice Set Wild, part $4.$p$...$

ACCT $305$ Essentials of Financial Accounting I

Practice Set, Part $4$ SU$24$

Part $4$

Ramona is applying for a line of credit with a local bank and has been requested to provide financial statements for the month ended March $31,2024.$ As a result, you will need to prepare a worksheet using the unadjusted trial balance and then adjusting the balances for the following additional items prior to financial statement preparation.

Since it is the policy of Computer Solutions to only record adjusting entries at year end you will not record adjusting entries in the general journal or post to the general ledger, but will instead complete a worksheet to arrive at the adjusted balances at March $31,2024$

a$.$ The March $31$ amount of computer supplies still available totals $$1134.$

b$.$ Three more months have expired since the company purchased its annual insurance policy at a $$2,340$ cost for $12$ months of coverage.

c$.$ Lyn Addie has not been paid for seven days of work at the rate of $$150$ per day.

d$.$ Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $$875.$

e$.$ Depreciation on the computer equipment for January $1$ through March $31$ is $$950.$

f$.$ Depreciation on the office equipment for January $1$ through March $31$ is $$125.$

g$.$ The March $31$ amount of merchandise inventory still available totals $$760.$

Required:

Open your file YourName$\_$ACCT$305\_$PS$3$ and save as YourName$\_$ACCT$305\_$PS$4.$

Before starting Part $4$ you should ensure that your general ledger balances agree with the March $31,2024$ balances provided in this folder.

$(10$ points$)$ Using the Unadjusted trial balance you prepared in part $3,$ prepare a partial work sheet in Excel consisting of the first seven columns that includes the unadjusted trial balance, the March $31$ adjustments $($a$)$ through $($ g $),$ and the adjusted trial balance. Use formulas where applicable. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger.

$(20$ points$)$ Prepare the following financial statements:

a$.$ Income statement for the three months ended March $31,2024.$ Use a single$-$step format.

b$.$ Statement of retained earnings for the three months ended March $31,2024.$

c$.$ Classified balance sheet $($from the adjusted trial balance$)$ as of March $31,2024.$

d$.$ Statement of cash flows using the indirect method for the three months ended March $31,2024.$ Owner Raymond Santana contributed $$25,000$ to the business in exchange for additional stock in the first quarter of $2024$ and has received $$4,500$ in cash dividends.

Upload your completed Excel spreadsheet and financial statements to Canvas.

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