(Solved)BUA 201 Spring 2016


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How do you fill in the numbers for the trial balance sheet? Using the attached file. Henri_Project 3 Spring2016 (1).doc Name ___________________________________ BUA 201 Spring 2016 Project 3 (70 pts) # ___________ BUA 201 – Spring 2016 Final Project (70 pts) Dr. Henri Akono Notice: You are required to submit your solution in hardcopy, handwritten form in class on the due date: Thursday May 5th, 2015. Score: ________________________________________________ 1 Maine Business School_Principles of Financial Accounting | Project #3_Spring 2016 Name ___________________________________ BUA 201 Spring 2016 Project 3 (70 pts) # ___________ "On my honor, as a student of The University of Maine, I will uphold the highest standards of academic integrity and personal accountability for the advancement of the dignity and the reputation of our university and myself.” Student Signature _____________________________________________ 1 Maine Business School_Principles of Financial Accounting | Project #3_Spring 2016 Name ___________________________________ BUA 201 Spring 2016 Project 3 (70 pts) # ___________ General Information Introduction Jones Widget Company (JWC) incorporated at the beginning of 2014. Below is the post closing trial balance as of 12/31/14. Account Title Balance Cash 10,700 Accounts Receivable 12,300 Allowance for Doubtful Account (685) Inventory 12,300 Prepaid Rent 1,500 Equipment 25,000 Accumulated Depreciation-Equipment (2,400) Total assets 58,715 Sales Tax payable 800 FICA Taxes Payable 600 FIT (i.e., Federal Income) Taxes Payable 500 Wages Payable 1,600 Unearned Revenue 6,500 Interest Payable 440 Notes Payable 22,000 Common Stock 23,100 Retained Earning 3,175 Total liabilities + stockholders’ equity 58,715 1 Maine Business School_Principles of Financial Accounting | Project #3_Spring 2016 Name ___________________________________ BUA 201 Spring 2016 Project 3 (70 pts) # ___________ Additional Information: JWC establishes a policy that it will sell inventory at $130 per unit. Sales taxes are 5%. JWC will use the FIFO method and record COGS on a perpetual basis. Employee wages are $4,000 per month, the federal income taxes (FIT) withheld are $500 and the FICA taxes are $300 per month payable on the first (1st) and sixteenth (16th) of the month. The Beginning inventory of $12,300 consists of 200 units. The Prepaid Rent balance is for the month of January. The equipment was purchased on July 1, 2014. It has a residual value of $1,000 and an expected life of five years. It is being depreciated using the straight line method. Unearned Revenue is for 50 units ordered by two customers in late December. One order will be filled in January, the remainder in early February. The Notes payable represents a $22,000 bank loan received on November 1 at 12% annual interest. State unemployment taxes amount to $200 and Federal unemployment taxes amount to $250 per month. Common stock includes 4,260 shares at $5 par value. Round all transactions to the nearest dollar. 1 Maine Business School_Principles of Financial Accounting | Project #3_Spring 2016 Name ___________________________________ BUA 201 Spring 2016 Project 3 (70 pts) # ___________ Below are transactions for January 2015 Jan 1: A $100,000 6% six year bond is issued at 105.074. The market rate at issue of the bond is 5%. Jan 1: A truck (record as Truck) is purchased for $10,000 cash. It is estimated the truck will be used for 50,000 miles and will have no salvage value. The truck will be depreciated using the units-ofproduction method. Jan 2: Machinery (record as Furniture) is purchased for $120,000 cash. The machinery will be used for 8 years, has a salvage value of $8,000, and will be depreciated using the double-declining balance method. Jan 3: Paid December 31 payroll (“wages payable”) on Jan 1. Jan 4: Payroll taxes withheld (FIT payable & FICA payable) during December are remitted to the IRS. Jan 5: A $500 customer account is writ

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