Question 12

Work done already:

REQUIREMENT \#6: Prepare an Adjusted Trial Balance in the space below. REQUIREMENT \#1: Prepare joumal entries to record the Mach fransactions in the Genera Joumal below. Remember that Debits must equa Creats-Aill of your Jouma Entries shouid baiance. Once you've completed this requirement print your General Journal to complete Requirement #2 on the General Ledger worksheet. Requirement \#4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) One month's insurance has expired. b) The remaining inventory of repair supplies is $200. c) The estimated depreciation on repair equipment is $150. d) The estimated income taxes are $100. Requirement \#5: Post the adjusting entries on March 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed. Requirement \#7: Prepare the financial statements for Howard's Flight Radio Management Corporation as of March 31 in the space below. You will only be preparing the Income Statement, Statement of Retained Earning, and the Balance Sheet. The Statement of Cash Flows is a required Financial Statement, but is not required for this project. Howard's Flight Radio Management Corporation Income Statement For the Month Ending March 31 Howard's Flight Radio Management Corporation Statement of Retained Earnings For the Month Ending March 31 Howard's Flight Radio Management Corporation Balance Sheet March 31 Please enter what each of the ratio results from Spreadsheet 11 mean for the company. REQUIREMENT W2: Past the March journa entries bo the fallowing T-Acoounts and compuile ending balances. \begin{tabular}{l|l} \hline \multicolumn{2}{|c}{ Prepaid insurance (117) } \\ \hline 1-Max Cash & \\ \hline & \\ \hline & \\ \hline & \end{tabular} \begin{tabular}{|c|c|} \multicolumn{2}{|c}{ Store Rent Expense (611) } \\ \cline { 2 - 3 } 1-Mar Cash & 1,800 \\ \cline { 2 - 2 } 31-Mar Retained Earrings & 1,800 \\ \hline \end{tabular} \begin{tabular}{l|l} \multicolumn{2}{c|}{ Telophone Expense (512) } \\ \cline { 2 - 2 } 10-Max Cash & 400 \\ \hline Relained Earrings & 400 \\ \hline & \\ \hline & \end{tabular} \begin{tabular}{r|r} \multicolumn{2}{|c|}{ Repair Equipment (144) } \\ \cline { 2 - 3 } 3-Mar Cash & 2,200 \\ \hline 3-Mar Acoourt Payable & 3,600 \\ \hline 31-Mar Balance & 5,800 \\ \hline & \end{tabular} \begin{tabular}{l|l} \hline Aceum. Deor-Repair Equipment (145) \\ \hline & \\ \hline & \\ & \end{tabular} \begin{tabular}{r|r} \multicolumn{2}{|c}{ Repair Supplies Expense (514) } \\ 8-Max Acoounts Payable & 450 \\ \hline 31-Mar Retainad Earring & 450 \\ \hline & \\ \hline & \end{tabular} \begin{tabular}{l|r} \multicolumn{2}{|c}{ Accounts Payable (212) } \\ 3-Mar Repsir Equipmert & 3,600 \\ 8-Mar Regair Sugpies & 650 \\ 18-Mar Cash & 400 \\ 31-Mar Balance & 3,850 \\ \hline & \\ \hline \end{tabular} \begin{tabular}{l|r} \hline Depr. Exp.-Repair Equipment (516) \\ \hline & 150 \\ \hline & \\ \hline & \\ \hline \end{tabular} Requirement \#10: Prepare a post-closing trial balance as of March 31 in the space below. Howard's Flight Radio Management Corporation Post-Closing Trial Balance March 31 Requirement \#8: Prepare the closing entrles at March 31 In the General Journal below. Hint: Use the balances for each account which appear on the Adjusted Trlal Balance for your closing entrles. Requirement \#9: Post the closing entries to the T-Accounts on the General Ledger worksheet and compute ending balances. Just add to the adjusted balances already listed. \begin{tabular}{l|r} \hline \multicolumn{2}{c}{ Retained Earnings (312) } \\ \hline Bicycle Repair Revenue & 5,950 \\ Rent Expense & 1,800 \\ Repair Supplies & 650 \\ \hline Telephone Expenses & 400 \\ Electricity Expenses & 300 \end{tabular} Requirement \#11: Ratios Using the data from Income Statement and Balance Sheet prepared by you In step 7 compute the following ratios. Current Ratio Formula Current Assets / Current Llabilites Leverage Ratio Formula Average Total Assets / Average Common Stockholders" Equily Asset Turnover Ratio Formula Net Sales / Average Total Assets Net Profit Margin Ratios Formula Net Income - Preferred Dividends / Net Sales Rate of Return on Total Assets Formula Net Profit Margin Ratio X Assets Turnover Ratio (Net Income - Preferred Dividends/ Net Sales ) X(Net Sales / Average Total Assets) Computation 3,95022,370= Computation 24,07028,020= 1.16 Computation 0.21 Computation 5,9502,570= Computation 0.43 x 0.21 = 0.090 Alternatively Computation Net Income - Preferred Dividends / Average Total Assets 28,0202,570=0.092