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ACC 3010

PROJECT 1

WINTER 2018

DUE February 3 by 5pm submitted to the assignment link in Canvas

NAME

ACCESS ID

During November, the first month of operations, the following transactions occurre

d:

Event

Paid $7,200 for 12 months rent on office space

Purchased office furniture for $8,950.

Purchased $11,354 of additional office supplies on account.

Received $10,800 from Fortuna Inc. for work to be performed over the next 12 months.

Paid $1,560 for utilities.

Performed services for various customers for $13,200 cash and another $18,100 on account.

Paid $8,650 for purchases of supplies previously made on account.

Paid salaries to employees totaling $5,200 for 1 week.

Collected $12,300 as payment for amounts previously billed.

Dividends of $3,000 were declared and paid.

One month of the prepaid rent has been used up

Supplies on hand are $8,150.

One month of interest has accrued on the note payable for the bank loan.

One month of the services for the Fortuna Inc. has been performed (see above).

Salaries of $5,200 are paid every Friday (for a 5 day work week). November 30, 2017 was a Thursday.

Additional work for customers of $9,580 has been performed during the last week of November but not yet billed

Depreciation expense for the computer equipment is $140 and for the office furniture is $120

SUGGESTED STEPS FOR COMPLETION OF THE PROJECT:

You have been hired as an accountant for NFT Consulting Inc. This business was create

d when some friends decided

to make use of their newly minted college degrees and go into business together. The business was crea

ted on

November 1, 2017. The company will have a fiscal year end of October 31st. The initia

l formation transactions and

early purchases for NFT Consulting Inc. resulted in the balances that are included in the

first 2 columns of the

Worksheet. (see the worksheet tab)

Borrowed 20,000 from the bank for operating cash. The note has a 3% interest rate (simple i

nterest) and is to be paid

back in 4 years

At the end of November, the following additional information is available to he

lp determine what adjustments

are needed:

Prepare journal entries to record the November transactions given. Please refer t

o the Worksheet tab for Account Titles

you may need.

Prepare adjusting entries for the month of November given the information provided.

Post the adjusting entries to the Adjusting entries columns on the worksheet

Prepare closing entries for the end of the period

INCENTIVE POINTS

Add the November journal entry information to the Worksheet in the November columns. Y

ou can do this in one of 2

ways - (1) Post the journal entries to ledger accounts using T-accounts to represent ledger acc

ounts and then use those

totals to post to the worksheet or (2) use excel to add all entries for a particular account i

nto the correct column in the

worksheet (ie., add all cash debits from the journal entries into the cash debit column for N

ovember entries). There is a

tab to use for T Accounts if you want but they are NOT required

Prepare an unadjusted trial balance as of November 30, 2017. This will be part of the W

orksheet you prepare. There is a

tab in this file that you will use for this. Excel formulas must be used throughout the project to obta

in full credit.

Prepare an adjusted trial balance as of November 30, 2017. This will be part of the

Worksheet you prepare. There is a

tab in this file that you will use for this.

Prepare financial statements for the month ending November 30, 2017. (Income Stateme

nt, Statement of Retained

Earnings, Classified Balance Sheet ). Formatting is important and will be graded so be sur

e you use dollar signs and

underlines as appropriate. Also be sure you have headings and proper column usage for all statements.

There is a tab for

these statements. Heading are PARTIALLY completed for the 3 statements.

Copy the Worksheet from the Worksheet tab to the Worksheet formulas tab and the Fina

ncial Statements from the

Financial Statements tab to the Financial Statements tab. Highlight the entir

e worksheet/financial statements area

respecively and press the "ctrl" key and the "~" key. This will cause the formul

as used to display instead of the

numbers. Save your file with the formulas displayed.

Explanation / Answer

The opening trial balance is not provided. All the entries for the month have been done. Need to ad the amounts from the opening trial banalce.

NFT Consulting Inc. Journal entries for the month of November, 2017 Date Account title Debit Credit Nov. 2017 Cash 20000 Note payable 20000 (Amount borrowed for opeartions) Nov. 2017 Prepaid Rent 7200 Cash 7200 (Rent paid for 12 months for office space) Nov. 2017 Office Furniture 8950 Cash 8950 (Purchase of office furniture) Nov. 2017 Office Supplies 11354 Accounts Payable 11354 (Purchase of office supplies on account) Nov. 2017 Cash 10800 Unearned Revenue 10800 (Amount received from Fortuna Inc. For future service for 12 months) Nov. 2017 Utilities expense 1560 Cash 1560 (Payment for uitilities ) Nov. 2017 Cash 13200 Accounts Receivable 18100 Service Revenue 31300 Nov. 2017 Accounts Payable 8650 Cash 8650 (Paymant made to suppiers on account) Nov. 2017 Salaries expense 5200 Cash 5200 (Payment of salaries to employees) Nov. 2017 Cash 12300 Accounts Receivable 12300 (Collection from customers ) Nov. 2017 Dividends 3000 Cash 3000 (Payment of dividends) NFT Consulting Inc. Adjusting journal entries for the month of November, 2017 Date Account title Debit Credit Nov.30, 2017 Rent Expense 600 Prepaid Rent 600 (Rent for November recorded) Supplies Expense 3204 Office Supplies 3204 (Supplies expense for November - $11,354 - $8,150) Interest Expense 50 Interest Payable 50 (Interest on $20,000 @3% for one month) Unearned Servie Revenue 900 Service Revenue 900 (One month service performed for Fortuna Inc.) Salaries Expense 4160 Salaries Payable 4160 (Salary for the last week - for 4 days @5,200 for a 5-day week ) Accounts Receivable 9580 Service Revenue 9580 (Unbliied service performed) Depreciation expense 260 Accumulated Depreciation - Computer equipment 140 Accumulated depreciation - office furniture 120 (Depreciation expense for the month )

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