Reference no: EM131146826
T Accounts and Financial Statements
What You Submit to the Dropbox:
1. A single Excel spreadsheet containing financial statements for:
A. Mary Berg Case
B. Fung Research Case
C. Dick's Repair Service in Moose Jaw (Problem 4B-4)
A. Mary Berg Case
Mary Berg, a young lawyer, began her own practice and completed these transactions during September of the current year:
1. 9/2 Sold a personal investment in Xerox stock for $2,845 and invested $2,500 of the proceeds in the law practice.
2. 9/2 Rented the furnished office of a lawyer who was retiring, and paid three months' rent in advance $1,050.
3. 9/2 Purchased the law library of the retiring lawyer for $1,750, paying $750 in cash and agreeing to pay the balance in one year.
4. 9/5 Purchased office supplies for cash, $75.
5. 9/6 Purchased law books from West Publishing company on credit, $250.
6. 9/8 Completed legal work for Security Bank on credit, $700.
7. 9/15 Paid for the law books purchased on credit on September 6.
8. 9/19 Completed legal work for Coast Realty on credit, $600.
9. 9/25 Received $700 from Security Bank for the work completed on September 15.
10. 9/30 Paid office secretary's salary, $800.
11. 9/30 Paid the monthly telephone bill, $25.
12. 9/30 Recognized that one month's rent on the office had expired and become an expense.
13. 9/30 Took an inventory of unused office supplies and determined that $20 of supplies had been used thus expensible.
A. T accounts
B. Trial Balance for September 30
C. Balance Sheet for the month ending September 30
D. Income Statement for the month of September
Everything is done in an Excel spreadsheet which you will prepare and submit with tabs.
Fung Research Services (FRS) Case
On August 2014, Grace Fung incorporates and opens Fung Research Services Inc. (FRS). During the company's first ten days of operations, it completes the following transactions:
1. To begin operations, Grace Fung deposits $400,000 of personal funds in a bank account entitled Fung's Research Services Inc. and the business issues shares of common stock in the amount of $400,000. Grace had obtained the $400,000 by selling off RRSPs that she had saved over the years. $400,000 was the proceeds used from the sale of $500,000 worth of RRSPs.
2. FRS pays $300,000 cash for a small house which is to be used as an office.
3. Grace has a personal use residential property from which she does some work although the bulk of her days are spent at the FRS offices in the other small house. She does repairs on the residential property in the amount of $10,000 although this is not to be expensed against the business as such an expenditure is considered to be a personal and living expense.
4. Grace goes over to Staples/Business Depot and buys $500 worth of office supplies for the business. She opens up a charge account with Staples/Business Depot and thus has 30 days to pay.
5. FRS finds a government surplus office equipment sale in the newspaper and goes to an auction to buy office equipment. A bargain is found and FRS pays $6,000 cash for office furniture.
6. The company pays $250 on the Staples/Business Depot purchase in #4.
7. Grace decided she needs a vacation and pays herself a $1,000 dividend out of FRS.
8. FRS does some research work for the Hamilton Tiger Cats and bills them $15,000. She receives $5,000 immediately in cash and the balance is to be paid in 90 days (the Ti-Cats are in dire straits from a cash-flow point of view, but Grace is understanding, plus she needs the work).
9. Grace realizes that she has used $100 worth of supplies and decides to expense it accordingly.
Prepare the t-account entries and key the transactions according to what happened above.
a) Post the entries to the T-accounts and calculate ending balances.
b) Prepare the trial balance of FRS at August 10, 2014.
c) Prepare the financial statements for the first 10 days of operations at FRS.
Use the T Account Template provided in Weeks 2/3 and employ the tabs feature in Excel.
Dick's Repair Servicein Moose Jaw Case
Required: Prepare the analyses and financial statements requested in the caseproblem 4B-4, Page 179 of your textbook using an Excel spreadsheet. Note the check figure provided (Net Income = $1,012).