ACCT 2301-003 Principles of Financial Accounting Fall 2022 Final exam-Quake Quantum Quays (QQQ) Project (35 points)...

Transcribed Image Text:

ACCT 2301-003 Principles of Financial Accounting Fall 2022 Final exam-Quake Quantum Quays (QQQ) Project (35 points) Financial Accounting Spiceland 6th Edition QQQ was founded in 2021 Below is the post-closing trial balance as of 12/31/2021 Requirements: This project must be handwritten NOT computer generated or typed Prepare all Jan entries and adjusting journal entries on the journal sheet provided (15 points) ATTACHMENT A Post all Jan transactions and adjusting entries to the provided T accounts (15 points) ATTACHMENT B Prepare the financial statements at end of Jan 2022 on ATTACHMENT C (5 points) ACCOUNT TITLE DR CR Cash 10,500 Accounts receivable 9,450 Allowance for Bad Debts 885 Inventory 11,970 Prepaid Insurance 1,600 Equipment 25,000 Accumulated Depreciation 2,400 Accounts Payable Sales Tax Payable FICA Taxes Payable FIT Taxes Payable Wages Payable Unemployment Taxes Payable Unearned Revenue Interest Payable Notes Payable Common Stock APIC Beginning R/E Treasury Stock TOTALS ADDITIONAL INFORMATION: 1. QQQ has a policy of selling inventory at $120 per unit. 2. Sales tax is 5%. 500 400 450 1,175 100 4,800 1,200 24,000 13,800 10,000 3,310 4,800 63,320 63,320 3. QQQ uses the FIFO method and records COGS on a perpetual system. 4. Wages are $3,000 per month and paid on the 16" for the first half of the month and the 1" of the following month for the second half of the month. 5. Income taxes withheld are $225 for each paycheck 6. FICA taxes are $100 per paycheck 7. Both the withholding and employer's matching contribution are paid on the 2nd day of each month 8. Unemployment taxes of $50 are accrued with each payroll and paid on March 31. 9. Beginning Inventory is $11,970 (190 units) 10. Prepaid Insurance is for January to April 2022 11. Equipment was purchased on July 1, 2021; residual value is $1,000; expected life is 5 years. Depreciation is on a straight-line method. 12. Unearned Revenue is for 40 units for 2 customers to be filled in the following year. 13. Notes Payable is a loan for $24,000 written on July 1, 2021, with a 10% annual interest. 14. The par value on common stock is $1. TRANSACTIONS FOR JAN. 2021 #1 Jan 1 Paid the December payroll previously accrued #2 Jan 2 A $90,000 5% 6-year bond is issued. The effective rate is 6% 5% 6% Present Value of $1 factor .7462 .7050 5.0757 4.9173 Present Value of an annuity of $1 factor #3 Jan 2 A truck is purchased for $20,000 with cash; estimated usage is 100,000 miles; salvage value is $1,000 #4 Jan 2 Payroll taxes payable (FIT & FICA) recorded in Dec. 2021 is sent to IRS #5 Jan 5 #6 Jan #7 Jan 11 #8 Jan 15 this order 6# Jan 16 unemployment taxes #10 Jan 20 #11 Jan 21 $950 is written off as uncollectible Sales on account of 170 units were made; sales tax is 5% 70 units of inventory were purchased on account for $4,550 30 units of the advance of 40 units is delivered; there is no sales tax on Record and pay payroll for Jan 1 to 15, and employer's FICA and 400 shares of treasury stock is sold for $10 a share $7,500 was collected from sales on account #13 Jan 30 for Jan is recorded #14 Jan 31 final payoff The equipment purchased for $25,000 is sold for $21,000; depreciation QQQ pays off the note in full. Interest for one month is recorded in Adjusting Entries a. Jan. 31 Record depreciation on truck. In Jan., the truck clocked 1,000 miles b. Jan. 31 It is estimated 2% of the ending accounts receivable will be uncollectible c. Jan. 31 Record Jan Insurance expired d. Accrue Jan 31 payroll payable on Feb 1, and record employer's FICA taxes Journal Entries for Jan. 1 ATTACHMENT A Account Name DEBIT CREDIT ATTACHMENT B Cash Cash Cash Revenue Expenses Net Income ATTACHMENT C Income Statement For the period Jan 1 to Jan 31, 2010 ASSETS FTD, Inc. Balance Sheet As of Jan 31, 2010 LIABILITIES Total Liabilities STOCKHOLDERS' EQUITY Total Assets Total Stock. Equity and Liabilities ACCT 2301-003 Principles of Financial Accounting Fall 2022 Final exam-Quake Quantum Quays (QQQ) Project (35 points) Financial Accounting Spiceland 6th Edition QQQ was founded in 2021 Below is the post-closing trial balance as of 12/31/2021 Requirements: This project must be handwritten NOT computer generated or typed Prepare all Jan entries and adjusting journal entries on the journal sheet provided (15 points) ATTACHMENT A Post all Jan transactions and adjusting entries to the provided T accounts (15 points) ATTACHMENT B Prepare the financial statements at end of Jan 2022 on ATTACHMENT C (5 points) ACCOUNT TITLE DR CR Cash 10,500 Accounts receivable 9,450 Allowance for Bad Debts 885 Inventory 11,970 Prepaid Insurance 1,600 Equipment 25,000 Accumulated Depreciation 2,400 Accounts Payable Sales Tax Payable FICA Taxes Payable FIT Taxes Payable Wages Payable Unemployment Taxes Payable Unearned Revenue Interest Payable Notes Payable Common Stock APIC Beginning R/E Treasury Stock TOTALS ADDITIONAL INFORMATION: 1. QQQ has a policy of selling inventory at $120 per unit. 2. Sales tax is 5%. 500 400 450 1,175 100 4,800 1,200 24,000 13,800 10,000 3,310 4,800 63,320 63,320 3. QQQ uses the FIFO method and records COGS on a perpetual system. 4. Wages are $3,000 per month and paid on the 16" for the first half of the month and the 1" of the following month for the second half of the month. 5. Income taxes withheld are $225 for each paycheck 6. FICA taxes are $100 per paycheck 7. Both the withholding and employer's matching contribution are paid on the 2nd day of each month 8. Unemployment taxes of $50 are accrued with each payroll and paid on March 31. 9. Beginning Inventory is $11,970 (190 units) 10. Prepaid Insurance is for January to April 2022 11. Equipment was purchased on July 1, 2021; residual value is $1,000; expected life is 5 years. Depreciation is on a straight-line method. 12. Unearned Revenue is for 40 units for 2 customers to be filled in the following year. 13. Notes Payable is a loan for $24,000 written on July 1, 2021, with a 10% annual interest. 14. The par value on common stock is $1. TRANSACTIONS FOR JAN. 2021 #1 Jan 1 Paid the December payroll previously accrued #2 Jan 2 A $90,000 5% 6-year bond is issued. The effective rate is 6% 5% 6% Present Value of $1 factor .7462 .7050 5.0757 4.9173 Present Value of an annuity of $1 factor #3 Jan 2 A truck is purchased for $20,000 with cash; estimated usage is 100,000 miles; salvage value is $1,000 #4 Jan 2 Payroll taxes payable (FIT & FICA) recorded in Dec. 2021 is sent to IRS #5 Jan 5 #6 Jan #7 Jan 11 #8 Jan 15 this order 6# Jan 16 unemployment taxes #10 Jan 20 #11 Jan 21 $950 is written off as uncollectible Sales on account of 170 units were made; sales tax is 5% 70 units of inventory were purchased on account for $4,550 30 units of the advance of 40 units is delivered; there is no sales tax on Record and pay payroll for Jan 1 to 15, and employer's FICA and 400 shares of treasury stock is sold for $10 a share $7,500 was collected from sales on account #13 Jan 30 for Jan is recorded #14 Jan 31 final payoff The equipment purchased for $25,000 is sold for $21,000; depreciation QQQ pays off the note in full. Interest for one month is recorded in Adjusting Entries a. Jan. 31 Record depreciation on truck. In Jan., the truck clocked 1,000 miles b. Jan. 31 It is estimated 2% of the ending accounts receivable will be uncollectible c. Jan. 31 Record Jan Insurance expired d. Accrue Jan 31 payroll payable on Feb 1, and record employer's FICA taxes Journal Entries for Jan. 1 ATTACHMENT A Account Name DEBIT CREDIT ATTACHMENT B Cash Cash Cash Revenue Expenses Net Income ATTACHMENT C Income Statement For the period Jan 1 to Jan 31, 2010 ASSETS FTD, Inc. Balance Sheet As of Jan 31, 2010 LIABILITIES Total Liabilities STOCKHOLDERS' EQUITY Total Assets Total Stock. Equity and Liabilities