80.2K

Verified Solution

Link Copied!

Group Project - Year The following list summarizes the transactions that took place during a start up's first year of operations. Using the information below, prepare a list of the appropriate journal entries, including any necessary adjusting entrics, and create a balance sheet and income statement. Use examples from pages 241 and 182 as templates for what your financial statements should look like. Onee you have created the financial statements, provide the appropriate closing entries. The startup uses straight line when depreciating long-term assets and a perpelual inventory system. You may use the attached Journal Entry Template to map out the necessary journal entries, but for a final version of your assignment please type up your entries and financial stalements in an Excel Worksheet. Transactions and information for the year a. Jan i, issued 50o shares of common stock (so.50 par value) for $5000 b. Feb 1, paid s2500 to purchase land. c. Feb 28, issued 100 shares of preferred stock (sio0 par value) for $zo,ooo. d. June 30th, paid $75,000 for a building (estimated useful life of 40 years; salvage value = $5,000) by signing a 5 year Note payable, promising to pay 5% interest at the end of each of those 5 years (i.e. on June 30th of each year). e. July rt, purchased 400 units of inventory at si5 each. $L,ooo was paid in cash, the rest was on account. f. July 30th, sold 120 units of inventory for s63 each on account. g. Aug 2"d, incurred $450 of wages expense. h. Aug sth, collected s2500 of accounts receivable. i. Aug 31st, paid s2oo of wages payable j. Sept 4th paid si6o0 of accounts payable. k. Dec 31st, incurred and paid $2,ooo of utilities expense. l. Estimated tax rate is 35%

Answer & Explanation Solved by verified expert

See Answer