Question Details

[solution] » The goal of this graded project is to create the

Brief item decscription

Step-by-step solution file


Item details:

The goal of this graded project is to create the
More:

please refer to attached file. questions asked in attached file need to be answered with correct formatting.


The goal of this graded project is to create the following

 

financial statements for Ice Cream Systems (ICS):

 

? Balance sheet

 

? Income statement

 

? Post-closing trial balance

 

The financial statements must be created in one Word document

 

(.doc or .docx file). Alternatively, an Excel workbook may be

 

used (.xls or .xlsx file). A Rich Text Format (.rtf file) may be

 

used by Mac users. The Word, Excel, or Rich Text Format

 

file will be uploaded for grading.

 


 

The following financial statements are provided for ICS:

 

1. Chart of Accounts

 

2. Post-Closing Trial Balance

 

3. Schedule of Accounts Receivable

 

4. Schedule of Accounts Payable

 

5. Schedule of Employer Payroll Taxes Allocation

 

6. Format for the Income Statement

 

7. Format for the Balance Sheet

 

8. Job Cost Record

 


 

Chart of Accounts

 

Assets (1000?1999)

 

Account Number Account Title

 

1100 Cash

 

1200 Accounts Receivable

 

1300 Direct Materials

 

1350 Indirect Materials and Factory Supplies

 

1400 Work in Process

 


 

1500 Finished Goods

 

1600 Prepaid Advertising

 

1650 Prepaid Insurance

 

1700 Office Supplies

 

1800 Factory Equipment

 

1800.1 Accumulated Depreciation?Factory Equipment

 

1850 Office Equipment

 

1850.1 Accumulated Depreciation?Office Equipment

 

Liabilities (2000?2999)

 

2100 Accounts Payable

 

2200 Salaries Payable

 

2300 Federal Withholding Tax (FWT) Payable

 

2325 FICA Tax Payable

 

2350 FUTA Tax Payable

 

2375 SUTA Tax Payable

 

2500 Unearned Revenue

 

Owner?s Equity (3000?3999)

 

3100 Common Stock ($10 Par)

 

3150 Paid-In Capital in Excess of Par?Common Stock

 

3700 Retained Earnings

 

3900 Income Summary

 

Revenues (4000?4999)

 

4100 Sales

 

4200 Sales Discounts

 

Expenses (5000?5999)

 

5100 Cost of Goods Sold

 

5150 Factory Overhead

 

5200 Sales Salaries Expense

 

5225 Officers? Salaries Expense

 


 

5250 Office Salaries Expense

 

5300 Rent Expense

 

5350 Advertising Expense

 

5400 Utilities Expense

 

5450 Office Supplies Expense

 

5500 Postage Expense

 

5550 Telephone Expense

 

5575 Insurance Expense

 

5600 Depreciation Expense

 

5700 Payroll Tax Expense

 

5800 Bad Debt Expense

 

5900 Miscellaneous Expense

 


 

Trial Balance

 

January 1, 20?

 

ACCOUNT NO. DESCRIPTION DEBIT CREDIT

 

1100 Cash $117,964.23

 

1200 Accounts Receivable 51,484.00

 

1300 Direct Materials 64,350.00

 

1350 Indirect Materials &

 

Factory Supplies

 

18,772.00

 

1400 Work in Process 142,695.00

 

1500 Finished Goods 27,696.00

 

1600 Prepaid Advertising ?

 

1650 Prepaid Insurance ?

 

1700 Office Supplies 342.25

 

1800 Factory Equipment 246,857.00

 

1800.1 Accumulated Depreciation?

 


 

Factory Equipment 99,653.35

 

1850 Office Equipment 38,567.00

 

1850.1 Accumulated Depreciation?

 

Office Equipment 18,845.66

 

2100 Accounts Payable 9,814.00

 

2200 Salaries Payable ?

 

2300 FWT Payable 1,613.11

 

2325 FICA Tax Payable 822.68

 

2350 FUTA Tax Payable 1,032.39

 

2375 SUTA Tax Payable 1,871.20

 

2500 Unearned Revenue ?

 

3100 Common Stock ($10 Par) 350,000.00

 

3150 Paid-In Capital in Excess of

 

Par?Common

 

32,500.00

 

3700 Retained Earnings 192,575.09

 

TOTALS $708,727.48 $708,727.48

 


 

ICE CREAM SYSTEMS

 

Schedule of Accounts Receivable

 

January 1, 20?

 

Name Balance

 

Horsfield Happy Ice Cream $17,345.00

 

Messina Missions 9,458.00

 

Ashman Alcove Designs 24,681.00

 

Day Dreamer?s Ice Cream 0.00

 

Total Accounts Receivable $51,484.00

 


 

ICE CREAM SYSTEMS

 


 

Schedule of Accounts Payable

 

January 1, 20?

 

Name Balance

 

O-Ring Enterprises $6,941.00

 

Smith Synthetics 0.00

 

Rockaway Metal 2,873.00

 

OfficeMax 0.00

 

Total Accounts Payable $9,814.00

 


 

ICE CREAM SYSTEMS

 

Schedule of Employer Payroll Tax Allocation

 

January 31, 20?

 

Employer Payroll Taxes

 

Job Wages

 

FWT

 

(15%)

 

FICA

 

(7.65%)

 

FUTA

 

(0.8%)

 

SUTA

 

(1.45%)

 

Total

 

Employer

 

Taxes

 

Net

 

Pay

 

Direct

 

Labor

 


 

Totals

 

Sales

 

Salaries

 

Officers?

 

Salaries

 

Office

 

Salaries

 


 

EXAMPLE COMPANY

 

Income Statement

 

For the Period Ending January 31, 20XX

 

Operating Revenue

 

Sales $ XXXXX.XX

 

Less: Sales Discounts XXX.XX

 

Total Operating Revenue $ XXXXX.XX

 

Cost

 

COGS?Cost of Goods Sold XXXXX.XX

 

Total Cost XXXXX.XX

 

Gross Profit XXXXX.XX

 

Operating Expenses

 

Sales Salaries Expense XXXXX.XX

 

Officers? Salaries Expense XXXXX.XX

 

Office Salaries Expense XXXXX.XX

 

Rent Expense XXXXX.XX

 

Advertising Expense XXXXX.XX

 

Utilities Expense XXXXX.XX

 

Office Supplies Expense XXXXX.XX

 

Postage Expense XXXXX.XX

 


 

Telephone Expense XXXXX.XX

 

Insurance Expense XXXXX.XX

 

Depreciation Expense XXXXX.XX

 

Payroll Tax Expense XXXXX.XX

 

Bad Debt Expense XXXXX.XX

 

Miscellaneous Expense XXXXX.XX

 

Total Operating Expenses XXXXX.XX

 

Net Profit/(Loss) $XXXXX

 


 

EXAMPLE COMPANY

 

Balance Sheet

 

As of January 31, 20?

 

ASSETS

 

Current Assets

 

Cash $XXXXX.XX

 

Accounts Receivable XXXX.XX

 

Direct Materials XXXX.XX

 

Indirect Materials and Factory Supplies XXXX.XX

 

Work In Process XXXX.XX

 

Finished Goods XXXX.XX

 

Prepaid Advertising XXXX.XX

 

Prepaid Insurance XXXX.XX

 

Office Supplies XXXX.XX

 

Total Current Assets $XXXXX.XX

 

Property, Plant & Equipment

 

Factory Equipment $XXXXX.XX

 

Less: Accumulated Depreciation?

 

Factory Equipment XXXXX.XX XXXXX.X

 


 

Less: Accumulated Depreciation?

 

Factory Equipment XXXXX.XX XXXXX.XX

 

Office Equipment XXXX.XX

 

Less Accumulated Depreciation?

 

Office Equipment XXXX.XX XXXX.XX

 

Total Property Plant & Equipment XXXXX.XX

 

TOTAL ASSETS $XXXXX.XX

 

LIABILITIES

 

Accounts Payable $XXXX.XX

 

Salaries Payable XXXX.XX

 

FWT Payable XXXX.XX

 

FICA Tax Payable XXXX.XX

 

FUTA Tax Payable XXXX.XX

 

SUTA Tax Payable XXXX.XX

 

Unearned Revenue XXXX.XX

 

TOTAL LIABILITIES $XXXXX.XX

 

STOCKHOLDERS? EQUITY

 

Common Stock ($10 Par) $XXXXXX.XX

 

Paid-In Capital in Excess of Par?Common Stock XXXXXX.XX

 

Retained Earnings XXXXXX.XX

 

TOTAL STOCKHOLDERS? EQUITY XXXXXX.XX

 

TOTAL LIABILITIES AND

 

STOCKHOLDERS? EQUITY $XXXXXX.XX

 


 

JOB COST RECORD

 

Job Number: Date Promised:

 

Customer Name: Date Started:

 

Job Description: Date Completed:

 

Date

 


 

Materials

 

(Direct & Indirect) Labor Factory Overhead

 

Estimate Actual Estimate Actual Date Estimate Actual

 


 

PROJECT INSTRUCTIONS

 


 

1. Set up the General Ledger accounts, Accounts Receivable,

 

and Accounts Payable accounts. Use the following blank

 

forms (make as many copies as necessary). Insert the

 

beginning balances from the Trial Balance and

 

Schedules of Accounts Receivable and Payable

 


 

DATE- ITEM-POST REF-DEBIT-CREDIT-BALANCE-DEBIT-CREDIT

 


 

1.Journalize the following entries for the month of

 

January in the General Journal. Use the following blank

 

forms (make as many copies as necessary). When using

 

the Work in Process account, be sure to post to the

 

appropriate Job Cost Record

 


 

DATE -ACCOUNTS-POSTREF.-Dr- Cr

 


 

Narrative of Transactions

 


 

January 2?Paid Mass Media $4,200.00 for prepaid advertising in local newspapers for the

 

next 12 months.

 

January 2?Paid Pierce Properties $2,750.00 for January rent. Of this amount, 25% is for office

 


 

facilities and 75% is for factory facilities.

 

January 2?Paid Owen?s Insurance $6,000.00 for prepaid insurance for the first quarter of the year.

 

January 3?Received a check from Horsfield Happy Ice Cream as partial payment on account in

 

the amount of $5,000.00.

 

January 3?Paid Rockaway Metal the balance of $2,873.00 on account.

 

Narrative of Transactions

 

January 2?Paid Mass Media $4,200.00 for prepaid advertising in local newspapers for the

 

next 12 months.

 

January 2?Paid Pierce Properties $2,750.00 for January rent. Of this amount, 25% is for office

 

facilities and 75% is for factory facilities.

 

January 2?Paid Owen?s Insurance $6,000.00 for prepaid insurance for the first quarter of the year.

 

January 3?Received a check from Horsfield Happy Ice Cream as partial payment on account in

 

the amount of $5,000.00.

 

January 3?Paid Rockaway Metal the balance of $2,873.00 on account.

 

January 10?Receive a check from Horsfield Happy Ice Cream as partial payment on account in

 

the amount of $5,000.00.

 

January 10?Receive a phone bill in the amount of $1,402.22 from Unique Telephone Systems

 

on account.

 

January 15?Paid Liberty Bank $2,535.79 for December payroll taxes payable for the amounts of

 

FWT Payable, $1,613.11; FICA Tax Payable, $822.68.

 

January 15?Assign Job 76 to Cold Refrigeration for the purchase of a refrigeration system. The start

 

date will be January 16th. The completion date will be no later than February 28th. The estimated direct

 

material is $9,175.00. The estimated indirect material is $1,860.00. The estimated

 

direct labor is $15,600.00. The contract amount is $45,800.00.A deposit of $10,000.00 was provided by

 

Cold Refrigeration in signing the contract. The deposit is unearned revenue. Half of the

 

contract will be billed upon 50% completion with the deposit applied against that billing with the

 

remaining amount due immediately. A quarter of the contract will be billed upon 75% completion

 

of the contract with the amount due immediately. The remaining amount of the contract is to be billed

 

when the job is 100% complete and is payable within 30 days of the billing.

 

January 16?Purchased $4,441.00 of factory supplies from Johnston Equipment paid in cash.

 


 

January 16?Purchased $2,965.00 of direct materials from Smith Synthetics on account.

 

January 16?Purchased $427.50 of office supplies from OfficeMax on account.

 

January 19?Apply from direct materials requisition $2,800.00 of direct materials. Apply from indirect

 

materials requisition $325.00 of indirect materials. Apply from time cards s $7,950.00 of direct labor to

 

Job 74 completing the job.Applied factory overhead is based on 25% of direct labor cost. Transfer the

 

completed job to the COGS account from Direct Material and Indirect Material and Factory Overhead

 

accounts. When making the journal entry for applying direct labor debit COGS for the gross pay and

 

credit FWT Payable and FICA Tax Payable for the appropriate amounts with the net pay going to

 

Salaries Payable.

 

January 20. ?Paid the electric bill from Susquehanna Electric in the amount of $2,356.21 for the

 

month of December. Allocate 30% to Factory Overhead

 

January 20?Paid the FUTA Tax Payable for the previous year.

 

January 20?Paid the SUTA Tax Payable for the previous year.

 

January 23?Ashman Alcove Designs paid the balance on account.

 

January 27?Paid O-Ring Enterprises the balance owed on account.

 

January 27?Paid post office $300.00 cash for postage added to postage meter

 

January 28?Apply from direct materials requisition $4,600.00 of direct materials. Apply from indirect

 

materials requisition $950.00 of indirect materials. Apply $8,000.00 (from time cards) of direct labor

 

and factory overhead to Job 76 irect materials. Apply $8,000.00 (from time cards) of direct labor and

 

factory overhead to Job 76, completing 50% of the job. Factory overhead is based on 25% of direct

 

labor cost. Transfer the partially completed job from Direct Material and Indirect Material to WIP.

 

When making the journal entry for applying direct labor, debit WIP for the gross

 

pay and credit FWT Payable and FICA Tax Payable for the appropriate amounts with the net pay going

 

to Salaries Payable. Set up the accounts receivable and bill Cold Refrigeration for 50% of

 

the contract on account, applying the initial $10,000.00 deposit against the billing.

 

January 29?Received a check from Cold Refrigeration in the amount of $9,976.25 on account.

 

January 31?Received the following data for the monthly payroll:

 

Direct labor (already recorded) $19,600.00

 

Sales commission 5,132.50

 

Officers? salaries 5,000.00

 

Office salaries 1,920.00

 

Record the monthly payroll. Direct labor payroll has already been recorded, as it was incurred in

 

January. Debit other salary expense accounts for the appropriate amounts; credit FWT Payable for 15%

 


 

of gross pay; credit FICA Tax Payable for 7.65% of gross pay; and credit Salaries Payable for the net

 

pay. Record the payroll taxes imposed on the employer for all personnel for the month of January.

 

(Prepare the ?Schedule of Employer Payroll Taxes Allocation? using the appropriate tax rates.)

 

January 31?Received a check from Messina Missions for the balance on account

 

January 31?Received a check from Horsfield Happy Ice Cream for the remaining balance on account.

 

January 31?Paid all employee wages earned in January.

 


 

3. Post the general journal entries to the General Ledger,

 

the Accounts Receivable Ledger, and the Accounts Payable

 

Ledger. Use the Post Ref. column to ensure that each line

 

item of the journal entries is posted correctly to each

 

general ledger account. Posting from the journal to the

 

ledger is nothing more than rearranging the information;

 

however, focus and concentrate because it?s easy to make

 

a mistake.

 


 

4. Calculate the balances in the general ledger accounts. Use

 

an Excel spreadsheet or a printing calculator to run the

 

numbers several times. Don?t use a hand-held calculator,

 

as it?s far too easy to make a mistake using it.

 

5. Prepare the Schedules of Accounts Receivable and

 

Accounts Payable.

 

6. Prepare an Unadjusted Trial Balance using the balances

 

from the general ledger accounts.

 


 

ACCOUNT

 


 

DEBIT

 


 

CREDIT

 


 

7. Journalize the following adjusting entries in the

 

general journal.

 


 

Adjusting Entries

 

January 31?Expense Prepaid Advertising for the month of January.

 

January 31?Expense Prepaid Insurance for the month of January.

 

January 31?Office supplies physical inventory as of January 31 is $276.21.

 

January 31?Depreciation for the month of January for Factory Equipment is $2,987.12.

 

Depreciation for Office Equipment is $266.99.

 

January 31?Close out Factory Overhead of $190.24 to Cost of Goods Sold.

 


 

8. Post the adjusting journal entries to their respective

 

ledger accounts, and calculate new balances for

 

those accounts.

 

9. Prepare an Adjusted Trial Balance using the balances

 

from the general ledger accounts. Use the blank form

 

provided in step six.

 

10. Prepare an Income Statement following the formats

 

shown in the Example Company Statements using

 

the following blank form as a worksheet:

 


 

11. Journalize and post the closing journal entries in the

 

general journal.

 

Jan. 31?Prepare closing entries to close revenue and

 

expense accounts to Income Summary, and transfer the

 

net income to Retained Earnings.

 

12. Post the closing journal entries to the respective ledger

 

accounts, and calculate new balances for those

 

accounts.

 


 

13. Prepare a Post-Closing Trial Balance using the balances

 

from the general ledger accounts. Use the blank form

 

that was provided in step six.

 

14. From the Post-Closing Trial Balance, create the Balance

 

Sheet following the formats shown in the Example

 

Company Statements using the following blank form as

 

a worksheet:

 


 

Use tables in the Word document if you feel you need them

 

to format the financial statements. Alternatively, you can

 

space and tab in Word to format the statements correctly.

 

Formatting is important; keep in mind that points will be

 

deducted for incorrect capitalization, spelling, underlining,

 

and double underlining

 


 

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Feb 21, 2020

PRICE: $24

Solution~000605088.zip (18.37 KB)

Buy this answer for only: $24

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now