For this assignment, you are required to complete all three accounting cases: Ve
ID: 2490484 • Letter: F
Question
For this assignment, you are required to complete all three accounting cases: Venture Consultants, Power and Demolition Company, and Warnerwood. You will then present Parts 1, 2, and 3 of the Portfolio Project in Excel as journal entries, following the exact instructions that accompany each part.
Assignment Template attached below
Part 1:
Denzel Brooks opens a web consulting business called Venture Consultants and completes the following transactions in March:
March 1: Brooks invested $150,000 cash along with $22,000 of office equipment in the company.
March 2: Venture Consultants pre-paid $6,000 cash or six months’ rent for their office.
March 3: Venture Consultants made credit purchases for office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days.
March 6: Venture Consultants completed services for a client and immediately received $4,000 cash.
March 9: Venture Consultants completed a $7,500 project for a client who must pay within 30 days.
March 12: Venture Consultants paid $4,200 cash to settle the account payable created on March 3.
March 19: Venture Consultants paid a $5,000 cash premium on a 12-month insurance policy.
March 22: Venture Consultants received $3,500 cash as a partial payment for the work completed on March 9.
March 25: Venture Consultants completed work for another client for $3,820 on credit.
March 29: Brooks withdrew $5,100 cash from the company for personal use.
March 30: Venture Consultants purchased $600 of additional office supplies on credit.
March 31: Venture Consultants paid $500 cash for this month’s utility bill.
Instructions:
Prepare journals for the above economic transactions. Use the file called "Assignment Template" in the assignment section for Part #1, Venture Capital Consultants. Enter your journals to the general ledger using the same file name.
Part 2:
The following unadjusted trial balance is for Power and Demolition Company as of year-end for the April 30, 2015 fiscal year. The April 30, 2014 credit balance of the owner's equity account is $46,900, and the owner invested $40,000 cash in the company during 2015.
NO.
Account Title
Debit
Credit
101
Cash
$7,000
126
Supplies
$16,000
128
Pre-paid insurance
$12,600
167
Equipment
$200,000
168
Accumulated depreciation – equipment
$14,000
201
Accounts payable
$6,800
251
Long-term notes payable
$30,000
301
Bonn, equity
$86,900
302
Bonn, withdrawals
$12,000
401
Demolition fees earned
$187,000
623
Wage expense
$41,400
633
Interest expense
$3,300
640
Rent expense
$13,200
683
Property tax expense
$9,700
684
Repairs expense
$4,700
690
Utilities expense
$4,800
TOTALS
$324,700
$324,700
Instructions:
a) Journalize the following adjusting entries as of fiscal year-end April 30, 2015.
b) Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
c) Create financial statements.
The supplies available at the end of fiscal 2015 year are at a cost of $7,900.
The cost of expired insurance for the fiscal year is $10,600.
Annual depreciation on equipment is $7,000; no other depreciation adjustment was made in 2015.
The April utilities expense of $800 is not included in the adjusted trial balance, because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded..
The company's employees have earned $2000 of accrued wages in the fiscal year.
The rent expense not yet paid or recorded in the fiscal year is $3000.
Additional property taxes of $550 have been assessed for the fiscal year, but have not yet been paid or recorded in the accounts.
The $300 accrued interest for April has not yet been paid and reported.
Part 3:
The Warnerwood Company uses a perpetual inventory system. It entered the following purchases and sales transactions for March into the system:
Date
Activities
Units Acquired at Cost
Cost per Unit
Units Sold at Retail
Price per unit
March 1
Beginning inventory
100 units
$50
March 5
Purchase
400 units
$55
March 9
Sales
420
$85
March 18
Purchase
120 units
$60
March 25
Purchase
200 units
$62
March 29
Sales
160 units
$95
Totals
820 units
580 units
Instructions:
Show all of your work in an Excel spreadsheet for the following tasks:
Compute the number of units available for sale.
Compute the number of units in ending inventory.
Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and (c) weighted average. (Round the average cost per unit to 2 decimal places.)
Compute the gross profit earned by the company for each of the three costing methods. (Round the average cost per unit to 2 decimal places.)
NO.
Account Title
Debit
Credit
101
Cash
$7,000
126
Supplies
$16,000
128
Pre-paid insurance
$12,600
167
Equipment
$200,000
168
Accumulated depreciation – equipment
$14,000
201
Accounts payable
$6,800
251
Long-term notes payable
$30,000
301
Bonn, equity
$86,900
302
Bonn, withdrawals
$12,000
401
Demolition fees earned
$187,000
623
Wage expense
$41,400
633
Interest expense
$3,300
640
Rent expense
$13,200
683
Property tax expense
$9,700
684
Repairs expense
$4,700
690
Utilities expense
$4,800
TOTALS
$324,700
$324,700
Explanation / Answer
Part 1 Economis Transactions
Cash A/c Dr.
Office Equipment A/c Dr.
To Capital A/c
(Being Capital introduced)
$150000
$22000
$172000
Rent A/c Dr.
To Cash a/c
(Being Rent Paid)
$6000
Office Equipment A/c Dr.
Office Supplies A/c Dr.
To Accounts Payable
(Being Office equipments and supplies purchased)
$3000
$1200
$$4200
Cash A/c Dr.
To Revenue A/c
(Being Sale made)
$4000
Accounts Receivable A/c Dr.
To Revenue A/c
(Being Project Completed)
$7500
Account Payable A/c Dr.
To Cash A/c
(Being account settled)
$4200
Insurance Expense A/c Dr.
To Cash A/c
(Being insurance expense paid)
$5000
Cash A/c Dr.
To Accounts Receivable A/c
(Being payment received)
$3500
Accounts Receivable A/c Dr.
To Revenue A/c
(Being Services provided)
$3820
Capital A/c Dr.
To Cash A/c
(Being cash withdrawn for personal use)
$5100
Ofice Supplies A/c Dr.
To Account Payable A/c
(Being Office supplies purchased)
$600
Utility Bill A/c Dr.
To Cash A/c
(Being utility bill paid)
$500
Part 3
No. of Unit Available for Sale = (100 + 400 + 120 + 200 ) = 820 Units
No. of units in ending inventory = (820 - 420 - 160) = 240 Units
Cost assigned to ending inventory
(a) FIFO = (200 x $62) + (40 x $60) = $14800
(b) LIFO = (100 x $50) + (140 x $55) = $12700
(c) Weighted Average = (240 x Weighted Avg Cost Per Unit)
= (240 x 56.83) = $13639.2
Weighted Avg Cost Per Unit = ((100 x $50) + (400 x $55) + (120 x $60) + (200 x $62)) / 820 units
= $56.83
Computation of Gross Profit
Date Particulars Debit Credit March 1Cash A/c Dr.
Office Equipment A/c Dr.
To Capital A/c
(Being Capital introduced)
$150000
$22000
$172000
March 2Rent A/c Dr.
To Cash a/c
(Being Rent Paid)
$6000
$6000 March 3Office Equipment A/c Dr.
Office Supplies A/c Dr.
To Accounts Payable
(Being Office equipments and supplies purchased)
$3000
$1200
$$4200
March 6Cash A/c Dr.
To Revenue A/c
(Being Sale made)
$4000
$4000 March 9Accounts Receivable A/c Dr.
To Revenue A/c
(Being Project Completed)
$7500
$7500 March 12Account Payable A/c Dr.
To Cash A/c
(Being account settled)
$4200
$4200 March 19Insurance Expense A/c Dr.
To Cash A/c
(Being insurance expense paid)
$5000
$5000 March 22Cash A/c Dr.
To Accounts Receivable A/c
(Being payment received)
$3500
$3500 March 25Accounts Receivable A/c Dr.
To Revenue A/c
(Being Services provided)
$3820
$3820 March 29Capital A/c Dr.
To Cash A/c
(Being cash withdrawn for personal use)
$5100
$5100 March 30Ofice Supplies A/c Dr.
To Account Payable A/c
(Being Office supplies purchased)
$600
$600 March 31Utility Bill A/c Dr.
To Cash A/c
(Being utility bill paid)
$500
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