AC312– Comprehensive Intermediate Accounting Project


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Connie Comprehensive Intermediate Accounting Project (3).doc AC312– Comprehensive Intermediate Accounting Project You are the owner of ERP Consultants and you have been asked to create financial statements for the below company (use your name in place of “Your Name” in the financials). You are provided with the below information from your client. This client does not have a formal accounting system in place and needs your help to create GAAP compliant statements based on the information they have maintained. A different consulting firm prepared their statements for last year. You have decided to accept this engagement which requires the completion of the below 1-7 items. This project should be completed using Excel (with formulas and linked data). The details are your Excel spreadsheet are located after the “additional information” below. The parameters of the project include: 1. Prepare journal entries, adjusting entries and closing entries for the below additional information…none of the journal entries have been journalized or posted to the ledger. 2. Prepare an Adjusted Trial Balance for 2014 3. Prepare an Income Statement for the year ended 2014. This statement should be flexibly designed (formulas in cells). This should be a multi-step income statement. To the right of your dollars in this statement, show common-sized percentages based on sales (vertical analysis). 4. Prepare a Statement of Retained Earnings for the year ended 2014. This statement should be flexibly designed. 5. Prepare a Balance Sheet dated Dec. 31, 2014. Have the Balance Sheets for 12/31/13 and 12/31/14 on the same Excel sheet labeled Balance Sheets. Again, a flexible design is required so any changes will automatically update the balance sheet. 6. Prepare a Post-Close Trial Balance dates Dec. 31, 2014. Make sure only permanent accounts are listed on your post-close trial balance. 7. Prepare a Statement of Cash Flows using the indirect method for the year ended 2014. The Statement of Cash Flows (operating section) should automatically change when assumptions are changed. The ending cash as shown on the statement of cash flows will then flow to the Balance Sheet. Your Name, Inc. Balance Sheet 12/31/2013 Current Assets Cash $17,000 Marketable Securities (Short-term) 2,000 Accounts Receivable 14,000 Allowance for Bad Debt (2,000) Inventory 15,000 Prepaid Insurance 5,000 Total Current Assets $51,000 Property, Plant, and Equipment Land Building Accumulated Dep. – Building Equipment Accumulated Dep. – Equipment Total PPE Total Assets $30,000 150,000 (45,000) 100,000 (20,000) $215,000 $266,000 Current Liabilities Accounts Payable Unearned Revenue Income Taxes Payable Total Current Liabilities 3,000 $15,000 Long-term Liabilities Bonds, 10%, due in 2018 $100,000 $9,000 3,000 Equity Common Stock $ 50,000 (100,000 authorized, 50,000 issued) Additional Pd.-in Capital 80,000 Retained Earnings 21,000 Total Equity $151,000 Total Liabilities & Equity $266,000 Additional Information (for all entries; please see the posted Excel spreadsheet with a few journal entries already provided): 1. Sales for 2014 are $310,000. All sales are on credit. 2. Gross Margin ratio is 35 percent 3. Accounts Receivable: i. $185,000 of the accounts receivable is paid by the end of the year (the remaining balance remains on the balance sheet). ii. $4,000 of A/R is written off during the year. iii. 5% of Accounts Receivable (after write-off and collections) is considered to be uncollectible (% of AR- Balance Sheet ap

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