ACC 3010 Project 2 Version 1 Winter 2016
ACC 3010
Project 2 Version 1
Winter 2016
NAME
STUDENT
NUMBER
DUE Saturday March 12, 2016 – This project is due on March 12 before 8:00 pm and is to be
submitted to the final project 2 submission link on Blackboard. The hours for help with the
project will be posted on the class Blackboard site. Your file must be named – "Your name
(first and last) your TAs last name" so that the TAs can do the initial grading.
This project is a continuation of Project 1, FMoore Consulting Inc. An additional 11 months have
passed since Project 1 (we are now at October 31, 2016 the company’s yearend). The friends have
expanded the shop to include sales of tablets as well as the consulting services activities. The new
company name is FMoore Consulting and Sales Inc. All transactions for the company through the
end of the year have been posted to the accounts EXCEPT FOR those relating to the purchasing
and sales of tablets in October. You will be recording and posting those entries. Additionally, all
monthly adjustments have been made EXCEPT for those related to accounting for bad debts and
any inventory and cost of goods sold issues. You will be adding that information. You will then be
making the required closing entries and preparing the yearend financial statements for the
company. The following is a suggested series of steps for completing the project:
1. Complete the Perpetual Inventory card worksheets to reflect the October purchases and sales
under the 3 different Inventory costing methods.
2. Complete the October Journal Entries to reflect the purchases and sales transactions (company
uses the perpetual method) under the FIFO costing method and post.
3. Post the October entries to the worksheet columns for the October entries and complete the
Trial Balance columns of the Worksheet.
4. Review the aging of accounts receivable included with the project and the current balance in
the Allowance Account (see worksheet) to determine the adjustment needed for Bad Debts. Any
journal entry necessary should be included on the adjusting journal entries sheet.
5. Prepare any necessary adjusting entries to reflect the Inventory count at year end. These should
be included on the adjusting entries sheet.
6. Post the adjusting entries to the worksheet and complete the Adjusted Trial Balance.
7. Prepare the necessary closing entries on the closing entries sheet.
8. Prepare the 3 financial statements for the year ended October 31, 2016 (multi step income
statement, classified balance sheet, and statement of retained earnings). Also you must include
appropriate dollar signs and appropriate underlines and correct formatting for the statements to
receive full credit.
9. Each student must submit an ORIGINALexcel file to the final project 2 assignment link in
Blackboard. While students are encouraged to work together, each student must process and
format his/her own set of statements. Duplicate submissions (format, not numbers) will result in the
students receiving a 0 for the assignment. Just changing the font size or orientation/placement is
not really an "original effort".
REQUIRED TO BE SUBMITTED – You must submit your excel file which must include all Journal
entries, trial balances, the worksheet and the financial statements to the correct assignments link on the
class Blackboard site by 8 pm Saturday March 12. Your file must be named – "Your name (first and
last) your TAs last name" so that the TAs can do the initial grading.
INCENTIVE POINTS FOR PROJECT 2 – to earn the incentive points, you must submit your whole
excel file to the appropriate assignment link on the class Blackboard site before 9 pm on the date
indicated. Your submission must be correct to earn the incentive points.
March 2 Incentive Point – You must submit your completed October Journal entries, AND your
completed Inventory Cards for all 3 Inventory costing methods. If your Inventory Cards are
completed using formulas, you will be awarded an additional incentive point.
March 9 Incentive Point – You must submit your completed Adjusting Journal Entries, your closing
entries, and the worksheet with the Trial Balance and adjustments and Adjusted Trial Balance
Paige Roberts
Fn0734
Inventory Information
Inventory on hand at the beginning of October:
Units
Purchase # 1
Cost / Total Cost
unit
25
70
$1,750
Purchase # 2
30
55
80
2,400
$4,150
October 2016 transactions related to buying and selling tablet inventory
1-Oct Sold 45 tablets at $175 each on credit
3-Oct Purchased 50 tablets at a cost of $90 per tablet on credit
7-Oct Paid for one half of the tablets purchased on October 3
10-Oct Sold 55 tablets at $180 each on credit
18-Oct Received one-half payment from the customer of October 1
20-Oct Purchased 60 tablets at a cost of $100 per tablet on credit
22-Oct Received one-half payment from the customer of October 8
24-Oct Sold 55 tablets at $200 each on credit
28-Oct Purchased 35 tablets at a cost of $110 per tablet on credit
The physical count of tablet inventory on hand at October 31, 2016 shows 40 tablets at
a FIFO cost of $4,350.
Beginning
Inventory
Units
25
30
55
Cost /
unit
70
80
Cost
1,750
2,400
4,150
LIFO
Date
Quantity
Purchases
Unit
Total
Cost
Cost
Cost of Goods Sold
Unit
Total
Quantity
Cost
Cost
Beginning Balance
Inventory on Hand
Unit
Total
Quantity
Cost
Cost
25
70
1,750
80
2,400
4,150
–
30
50
90
1,050
3,450
10
10
70
10
70
700
90
4,500
5,200
10
70
700
0
10
10
0
90
700
700
–
4,500
10-Oct
20-Oct
2,400
70
50
60
3-Oct
80
15
1-Oct
30
55
0
55
60
100
90
4,950
6,000
24-Oct
35
110
3,850
100
6,000
5
65
28-Oct
60
90
450
6,450
80
70
90
60
70
10
100
5
15
10
5
90
35
50
110
70
70
90
700
700
6,000
6,700
700
450
1,150
700
450
3,850
5,000
FIFO
Date
Quantity
Purchases
Unit
Total
Cost
Cost
Cost of Goods Sold
Unit
Total
Quantity
Cost
Cost
Beginning Balance
25
1-Oct
25
50
90
70
1,750
20
3-Oct
80
1,600
3,350
4,500
10-Oct
10
60
100
80
800
45
20-Oct
90
4,050
4,850
6,000
24-Oct
5
35
110
3,850
90
450
50
28-Oct
Inventory on Hand
Unit
Total
Quantity
Cost
Cost
100
5,000
5,450
70
1,750
30
55
0
80
2,400
4,150
–
10
10
10
80
50
60
0
90
5
5
5
90
60
65
0
100
10
10
10
100
35
45
110
70
80
80
90
90
100
800
800
800
4,500
5,300
450
450
450
6,000
6,450
1,000
1,000
1,000
3,850
4,850
Weighted Avg
Date
Quantity
Purchases
Unit
Total
Cost
Cost
Cost of Goods Sold
Unit
Total
Quantity
Cost
Cost
Beginning Balance
Inventory on Hand
Unit
Total
Quantity
Cost
Cost
25
50
90
55
60
100
55
35
110
87.58
4,817
6,000
24-Oct
28-Oct
3,398
4,500
10-Oct
20-Oct
75.5
3,850
99.04
5,447
2,400
4,150
10
10
10
75.50
75.50
75.50
755
755
755
90.00
87.58
4,500
5,255
5
5
5
87.58
87.58
87.58
438
438
438
60
65
3-Oct
45
1,750
80
75.5
50
60
1-Oct
70
30
55
100.00
99.04
6,000
6,438
10
10
10
99.04
99.04
99.04
990
990
990
35
45
110
107.57
3,850
4,840
October Journal Entries
Date
Account titles & Explanation
1-Oct Accounts receivable
Sales Revenue
Debit
Credit
7875
7,875
Cost of goods Sold
Inventory
3350
3-Oct Inventory
Accounts Payable
4500
7-Oct Accounts Payable
Cash
2250
10-Oct Accounts receivable
Sales Revenue
Cost of goods Sold
Inventory
18-Oct Cash
3,350
4,500
2,250
9900
9,900
4850
4,850
3938
Accounts Receivable
3,938
20-Oct Inventory
Accounts Payable
6000
22-Oct Cash
3938
6,000
Accounts Receivable
24-Oct Accounts receivable
Sales Revenue
3,938
11000
11,000
Cost of goods Sold
Inventory
5450
28-Oct Inventory
Accounts Payable
3850
5,450
3,850
Adjusting Journal Entries
31-Oct Cost of goods Sold
Inventory
31-Oct Bad debts expense
Allowance for bad Debts
Closing Entries
500
500
2,034
2,034
FMoore Consulting and Sales Inc
PARTIALLY ADJUSTED TRIAL BALANCE
October 31 2015
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Supplies
Inventory
Prepaid Insurance
Land
Building
Accumulated Depr – Building
Computer equipment
Accumulated Depr – Comp Equip
Office Furniture
Accumulated Depr – Office Furniture
Accounts Payable
Interest Payable
Utilities Payable
Wages Payable
Long term Note Payable
Mortgage Payable
Common Stock
Retained Earnings
Dividends
Service Revenue
Tablet Sales Revenue
Cost of Goods Sold
Bad Debt Expense
Depreciation Expense – Building
Depreciation Expense – Computer Equip
Depreciation Expense – Office Furn
Interest Expense
Insurance Expense
Supplies expense
Utilities Expense
Wage Expense
Subtotals
Net Income
TOTALS
Part Adj T/B
DR
CR
$190,750
146,800
$4,895
32,600
4,150
17,200
30,000
110,000
5,670
36,750
1,750
30,900
890
14,560
3,100
9,954
47,500
90,000
80,000
200,000
75,661
3,000
365,250
272,400
161,800
970
240
170
3300
36,950
62,750
65,800
237,500
###
###
October Jes
DR
CR
DR
Trial Balance
CR
Adj Jes
DR
Adj T/B
CR
DR
CR
Income Stmt
DR
CR
Stmt of Ret Earn
DR
CR
Balance Sheet
DR
CR
Total
Accounts Receivable
Estimated Bad Debt
0-30
$ 105,950
% Uncollectible
Number of Days Outstanding
31-60
61-90
91-120
$
31,260
$
15,850
$
7,250
over 120
$
6,378
0.02
$
6,929
0.07
0.08
0.09
0.11
2,119
2,188
1,268
653
702
FMoore Consulting and Sales Inc
Multi step Income statement
FMoore Consulting and Sales Inc
Statement of Retained Earnings
FMoore Consulting and Sales Inc
Classified balance sheet