![Project 3: Recording Daily and Adjusting Entries, and Preparing
and Evaluating Financial Statements
[The following information applies to the questions displayed
below.]
Introduction
Jones Widget Company (JWC) incorporated at the beginning of
2014. Below is the post closing trial balance as of 12/31/2014.
Account Title
Balance
Cash
9,600
Accounts Receivable
8,300
Allowance for Doubtful Accounts
900
Inventory
12,060
Prepaid Rent
1,700
Equipment
26,000](https://image.slidesharecdn.com/project3recordingdailyandadjustingentriesandpreparingand-221127193730-16b04394/85/Project-3-Recording-Daily-and-Adjusting-Entries-and-Preparing-and-docx-1-320.jpg)
![sin(180°-θ)=sinθ
Cango Ratio Analysis
BUS 308 Week 4 Assignments Problems 9.13, 9.22
SCI 220 Nutrition and Health
Employee Performance
CRJ 201 Week 3 Assignment ( Final Paper Preparation ) ~ (
Latest Syllabus - Updated Jan, 2015 - Perfect Tutorial - Scored
100% )
Project 3
NOT RATED
Project 3: Recording Daily and Adjusting Entries, and Preparing
and Evaluating Financial Statements
[The following information applies to the questions displayed
below.]
Introduction
Jones Widget …
7 years ago
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Project 3 Recording Daily and Adjusting Entries, and Preparing and .docx
- 1. Project 3: Recording Daily and Adjusting Entries, and Preparing and Evaluating Financial Statements [The following information applies to the questions displayed below.] Introduction Jones Widget Company (JWC) incorporated at the beginning of 2014. Below is the post closing trial balance as of 12/31/2014. Account Title Balance Cash 9,600 Accounts Receivable 8,300 Allowance for Doubtful Accounts 900 Inventory 12,060 Prepaid Rent 1,700 Equipment 26,000
- 2. Accumulated Depreciation 2,500 Accounts Payable 0 Sales Tax payable 550 FICA Taxes Payable 700 Federal Income Tax (FIT) Payable 550 Wages Payable 1,600 Unemployment taxes payable 350 Unearned Revenue 6,400 Interest Payable 300
- 3. Notes Payable 15,000 Common Stock 13,800 Add'l PIC 9,710 RE - December 31, 2014 8,900 Treasury Stock 3,600 Additional Information: • JWC establishes a policy that it will sell inventory at $160 per unit. Sales taxes are 6%. JWC will use the FIFO method and record COGS on a perpetual basis. • Employee wages are $4,100 per month. Employees are paid on the 16th for the first half of the month and on the first of the following month for the second half of each month. The income taxes withheld are $275 each paycheck, and the FICA taxes are $175 per paycheck. The withholding and the employer’s matching contribution are paid monthly on the second day of the month. In addition, unemployment taxes of $55 are accrued with
- 4. each payroll. The taxes are paid on March 31. • The Beginning inventory of $12,060 consists of 180 units. • The Prepaid Rent balance is for January 2015. • The equipment was purchased on July 1, 2014. It is being depreciated using the straight line method. • Unearned Revenue is for 40 units ordered and paid for in advance by two customers in late December. One order will be filled in January, the remainder in early February. • The Notes payable represents a $15,000 bank loan received on October 1, 2013 at 8% annual interest. • The par value on the common stock is $2. • The treasury stock account has 600 shares. • Record all transactions to the nearest dollar. Below are transactions for January 2015 Jan 1 Paid December 31 payroll previously accrued. Jan 2 A $91,000 6% six year bond is issued. The effective yield is 7%. 6% 7% Present Value of $1 factors .7050
- 5. .6663 Present Value of an Annuity of $1 factors 4.9173 4.7665 Jan 2 A truck is purchased for $10,500 cash. It is estimated the truck will be used for 50,000 miles and will have no salvage value. (Record the purchase to the account "Vehicles"). Jan 2 Payroll taxes payable (FIT & FICA) recorded in December are remitted to the IRS. Jan 5 A $900 customer account is written off as uncollectible. Jan 6 Sales on account of 175 units of inventory occur during January. Include sales tax of 6%. Jan 10 Sales taxes of $550 which had been collected and recorded in December are paid to the state. Jan 11 An additional 75 units of inventory are purchased on account for $4,800. Jan 12 The equipment purchased in 2014 for $26,000 is sold for $24,000. No additional depreciation is recorded for January. Jan 14 Having sold the equipment, JWC pays off the note in full. The amount paid is $15,345 which includes an additional $45 interest through Jan 14. Jan 15 A portion of the advance order from December (35 units) is delivered. There is no sales tax on this order. Jan 16
- 6. Record and pay payroll for January 1-15. Record the employer’s matching share of FICA taxes And the unemployment taxes also. Jan 20 400 shares of the treasury stock are sold for $4,800. Jan 21 Collections from sales on account totaled $8,600. Jan 27 Sold the other 200 shares of the treasury stock for $1,000. Jan 28 JWC declares and distributes a 10% Stock dividend. The market price of the stock at the time is $5 per share. (Hint on the statement of retained earnings, this amount will should be shown as a dividend). Jan 31 (Adjusting 1) Record depreciation on the truck. During January, the truck is driven 2,000 miles. Jan 31 (Adjusting 2) It is estimated that 3% of the ending accounts receivable balance will be uncollectible. Jan 31 (Adjusting 3) Record January rent expired. Jan 31 (Adjusting 4) Accrue January 31 payroll, which will be payable on February 1. Record the employer’s matching share of FICA taxes also. Jan 31 (Adjusting 5) Record ONE MONTH’S interest expense and amortization of premium or discount on the bond. Round to the nearest dollar. References Section Break Project 3: Recording Daily and Adjusting Entries, and Preparing and Evaluating Financial Statements 1.
- 7. value: 10.00 points Required information You did not receive credit for this question in a previous attempt Project 3: Part 1a Required: 1-a. Prepare all January journal entries and adjusting entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) References General Journal Project 3: Part 1a Difficulty: Hard Check my work Previous attempt 2. value: 10.00 points Required information You did not receive credit for this question in a previous attempt Project 3: Part 1b 1-b. Post all January entries (transactions and adjustments) to the T- accounts and complete the adjusted trial balance. (Please enter 0 in the adjusted trial balance for zero-balance accounts.)
- 8. References Worksheet Project 3: Part 1b Difficulty: Hard Check my work Previous attempt 3. value: 10.00 points Required information You did not receive credit for this question in a previous attempt Project 3: Part 1c 1-c. Prepare the financial statements at the end of January, 2015. (Balance Sheet only, items to be deducted must be indicated with a negative amount.) References Financial Statements Project 3: Part 1c Difficulty: Hard Check my work Previous attempt 4. value: 10.00 points
- 9. Required information You did not receive credit for this question in a previous attempt Project 3: Part 2 2-1. Did the carrying value of the bond increase or decrease after the recording of interest expense? 2-3. What will the carrying value of JWC’s bond at the end of 2015? (12/31/15) 2-4. What will the annual bond interest expense be for 2015? 2-5. What was the gain or loss recognized on the January 12 sale of equipment? 2-6. What was the gain or loss recognized on the sale of Treasury stock on Jan. 20? (Loss amounts should be indicated with a minus sign.)
- 10. 2-7. What was JWC’s total compensation expense for January, 2015? 2-8. What was the average issue price per share for the common stock on 1/1/15? (Round your answer to 2 decimal places.) 2-9. How many shares were issued by JWC by the end of January, 2015? 2-10. Assume JWC had distributed a 40% stock dividend, instead of the 10% dividend. Prepare JWC’s journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2-11. JWC’s issuance of the bonds in January generated a large amount of cash at a low effective rate. Most of this cash will be
- 11. used to purchase new Widget manufacturing equipment in the future. But the equipment purchases are not expected to occur until three years from now. JWC expects to need $99,000 for the purchases in three years. Below are the PV and FV Factors for 6% three years FV (Table C.1) PV (Table C.2) FVA (Table C.3) PVA (Table C4) 1.1910 .8396 3.1836 2.6730 a. How much cash should be set aside and invested now if JWC can earn 6% compounded annually for the three-year period? (Round your answer to 2 decimal places.) b. How much cash would need to be invested equally over the next 3 years to have $99,000 at the end of three years?
- 12. c. If JWC decided to invest $61,000 today, how much would they have in 3 years? d. If JWC decided to invest $26,000 each year for the next 3 years, how much would they have in 3 years? (Round your answer to 2 decimal places.) 7 years ago 23.11.2015 20 Report Issue Answer ( 0 ) Bids ( 0 ) other Questions ( 10 ) Interpret the Role of Ethics in Business Biology Homework ED6001 Activity 1 11
- 13. sin(180°-θ)=sinθ Cango Ratio Analysis BUS 308 Week 4 Assignments Problems 9.13, 9.22 SCI 220 Nutrition and Health Employee Performance CRJ 201 Week 3 Assignment ( Final Paper Preparation ) ~ ( Latest Syllabus - Updated Jan, 2015 - Perfect Tutorial - Scored 100% ) Project 3 NOT RATED Project 3: Recording Daily and Adjusting Entries, and Preparing and Evaluating Financial Statements [The following information applies to the questions displayed below.] Introduction Jones Widget … 7 years ago Applied Sciences Architecture and Design Biology Business & Finance Chemistry Computer Science Geography Geology Education Engineering English Environmental science Spanish Government History Human Resource Management Information Systems Law Literature
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