ACCT3303 Project One
Question # 00028756
Posted By:
Updated on: 10/20/2014 11:51 AM Due on: 10/30/2014
CAPTAIN FISHING INC.
BALANCE SHEET
DECEMBER 31, 2014
Current Assets
Cash
Notes Receivable
Accounts Receivable
Less: Allowance for Doubtful Accounts
Inventories
Prepaid Insurance
Total Current Assets
Non-Current Assets
Long-term Investments
Investments in held-for-maturity securities
Land held for future development
Property, Plant, and Equipment
Land
Buildings
Less: Accumulated Depreciation
Intangible Assets
Capitalized Development Costs
Goodwill
Other Identifiable Intangible Assets
Total Non-Current Assets
Total Assets
Current Liabilities
Notes Payable
Accounts Payable
Unearned Revenues
Income Taxes Payable
Property Taxes Payable
Interest Payable
Total Current Liabilities
Non-Current Liabilities
Provisions Related to Pensions
Bonds Payable
Total Non-Current Liabilities
Total Liabilities
Stockholders' Equity
Common Stock
Preferred Stock
Paid-in-capital - Common Stock
Paid-in-capital - Preferred Stock
Retained Earnings
Accumulated Other Comprehensive Income
Less: Treasury Stock
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
51,800
16,000
41,800
(3,000)
40,000
540
147,140
51,000
45,500
85,000
675,000
(187,500)
8,000
76,000
48,000
801,000
948,140
110,000
33,500
12,000
9,440
6,600
1,500
173,040
93,100
300,000
393,100
566,140
100,000
100,000
27,500
10,000
152,250
5,000
(12,750)
382,000
948,140
The 2014 balance sheet of the Captain Fishing Inc. is attached. During 2015, the following events occurred.
1. On January 10, sold merchandise on account to Rayms $8,000 and Fischer $7,600. Terms 2/10, n/30.
2. On January 12, purchased merchandise on account from Zapfel $3,200 and Liotta $2,600. Terms 1/10, n/30.
3. On January 14, received checks, $4,500 from Longhini and $2,500 from Hall, for sales on account after discount period has lapsed.
4. On January 15, sent checks to Joosten for 9,000 less 3% cash discount, and to Maida for $10,000 less 2% cash discount.
5. On January 16, issued credit of $600 to Fischer for merchandise returned.
6. On January 21, paid off the balances to Zapfel and Liotta for the purchases made on January 12.
7. On Feburary 9, received payment in full from Rayms and Fischer.
8. On March 1, paid rent of $9,600 for a two-year term starting from July 1, 2015.
9. On April 1, the company CEO paid $49,999 from her savings bank account to purchase a car for personal use.
10. On April 12, paid $900 cash for office supplies.
11. Cash dividends totaling $1,500 were declared on June 13 and paid to stockholders on June 23.
12. Issued a note of $120,000 to bank (one year, annual interest rate 4%) for cash on July 1.
13. On July 5, purchased merchandise from Maida $32,000, terms 3/10, n/30.
14. On July 7, issued common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $16,000.
15. On July 8, returned $300 of merchandise to Maida and received credit.
16. On August 1, sold merchandise to Lachey on account $80,000, term 1/10, n/30.
17. Paid off the balance to Maida on August 4.
18. On Auguest 8, paid utilities expense, $10,920.
19. On August 18, Lachey paid off its balance.
20. On September 1, paid cash $7,500 to Farmington for merchandise purchased last year.
21. On October 1, paid off notes payable $110,000 (issued in 2014) and associated interest $5,000 (this amount includes $1,500 interest payable on the balance sheet).
22. Over the year, cash sales to other retail customers were $16,500.
23. Over the year, sales and office employees earned $26,500 in salaries and wages, of which $2,500 remained as payable at the end of year.
24. On Dec 31, received an utilities bill of $1,250 (for December 2015) and paid off the bill on January 10, 2016.
25. On Dec 31, paid 5% interest on bonds payable.
Additional Information at the end of the year:
1 .Depreciation expense for the year was $13,500.
2. The company estimated that it will pay federal income tax, $4,250.
3. After physically counting, the company decided that the ending inventories was $42,164.
4. Based on its historical data, the bad debts expense are about $1,000.
5. Unearned revenue was decreased by $11,000.
6. The company expenses all of the supplies purchased during the year.
7. No insurance policy was effective during the year (will be effective from Jan 1, 2016).
8. The company uses the gross method to record its purchases and sales on credit.
9. The company adopts the periodic inventory system.
10. Rayms, Fischer, and Lachey had zero balance on account as of Jan 1, 2015.
Instructions:
1. Prepare journal entries for each event.
2. Prepare adjusting entries.
3. Prepare adjusted trial balance.
4. Prepare Income Statement, Retained Earnings Statement and Balance Sheet.
5. Prepare closing entries.
Cash
Trial Balance Total
Net Income
Total assets
49,908
1,286,390
6,072
950,112
BALANCE SHEET
DECEMBER 31, 2014
Current Assets
Cash
Notes Receivable
Accounts Receivable
Less: Allowance for Doubtful Accounts
Inventories
Prepaid Insurance
Total Current Assets
Non-Current Assets
Long-term Investments
Investments in held-for-maturity securities
Land held for future development
Property, Plant, and Equipment
Land
Buildings
Less: Accumulated Depreciation
Intangible Assets
Capitalized Development Costs
Goodwill
Other Identifiable Intangible Assets
Total Non-Current Assets
Total Assets
Current Liabilities
Notes Payable
Accounts Payable
Unearned Revenues
Income Taxes Payable
Property Taxes Payable
Interest Payable
Total Current Liabilities
Non-Current Liabilities
Provisions Related to Pensions
Bonds Payable
Total Non-Current Liabilities
Total Liabilities
Stockholders' Equity
Common Stock
Preferred Stock
Paid-in-capital - Common Stock
Paid-in-capital - Preferred Stock
Retained Earnings
Accumulated Other Comprehensive Income
Less: Treasury Stock
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
51,800
16,000
41,800
(3,000)
40,000
540
147,140
51,000
45,500
85,000
675,000
(187,500)
8,000
76,000
48,000
801,000
948,140
110,000
33,500
12,000
9,440
6,600
1,500
173,040
93,100
300,000
393,100
566,140
100,000
100,000
27,500
10,000
152,250
5,000
(12,750)
382,000
948,140
The 2014 balance sheet of the Captain Fishing Inc. is attached. During 2015, the following events occurred.
1. On January 10, sold merchandise on account to Rayms $8,000 and Fischer $7,600. Terms 2/10, n/30.
2. On January 12, purchased merchandise on account from Zapfel $3,200 and Liotta $2,600. Terms 1/10, n/30.
3. On January 14, received checks, $4,500 from Longhini and $2,500 from Hall, for sales on account after discount period has lapsed.
4. On January 15, sent checks to Joosten for 9,000 less 3% cash discount, and to Maida for $10,000 less 2% cash discount.
5. On January 16, issued credit of $600 to Fischer for merchandise returned.
6. On January 21, paid off the balances to Zapfel and Liotta for the purchases made on January 12.
7. On Feburary 9, received payment in full from Rayms and Fischer.
8. On March 1, paid rent of $9,600 for a two-year term starting from July 1, 2015.
9. On April 1, the company CEO paid $49,999 from her savings bank account to purchase a car for personal use.
10. On April 12, paid $900 cash for office supplies.
11. Cash dividends totaling $1,500 were declared on June 13 and paid to stockholders on June 23.
12. Issued a note of $120,000 to bank (one year, annual interest rate 4%) for cash on July 1.
13. On July 5, purchased merchandise from Maida $32,000, terms 3/10, n/30.
14. On July 7, issued common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $16,000.
15. On July 8, returned $300 of merchandise to Maida and received credit.
16. On August 1, sold merchandise to Lachey on account $80,000, term 1/10, n/30.
17. Paid off the balance to Maida on August 4.
18. On Auguest 8, paid utilities expense, $10,920.
19. On August 18, Lachey paid off its balance.
20. On September 1, paid cash $7,500 to Farmington for merchandise purchased last year.
21. On October 1, paid off notes payable $110,000 (issued in 2014) and associated interest $5,000 (this amount includes $1,500 interest payable on the balance sheet).
22. Over the year, cash sales to other retail customers were $16,500.
23. Over the year, sales and office employees earned $26,500 in salaries and wages, of which $2,500 remained as payable at the end of year.
24. On Dec 31, received an utilities bill of $1,250 (for December 2015) and paid off the bill on January 10, 2016.
25. On Dec 31, paid 5% interest on bonds payable.
Additional Information at the end of the year:
1 .Depreciation expense for the year was $13,500.
2. The company estimated that it will pay federal income tax, $4,250.
3. After physically counting, the company decided that the ending inventories was $42,164.
4. Based on its historical data, the bad debts expense are about $1,000.
5. Unearned revenue was decreased by $11,000.
6. The company expenses all of the supplies purchased during the year.
7. No insurance policy was effective during the year (will be effective from Jan 1, 2016).
8. The company uses the gross method to record its purchases and sales on credit.
9. The company adopts the periodic inventory system.
10. Rayms, Fischer, and Lachey had zero balance on account as of Jan 1, 2015.
Instructions:
1. Prepare journal entries for each event.
2. Prepare adjusting entries.
3. Prepare adjusted trial balance.
4. Prepare Income Statement, Retained Earnings Statement and Balance Sheet.
5. Prepare closing entries.
Cash
Trial Balance Total
Net Income
Total assets
49,908
1,286,390
6,072
950,112
-
Rating:
/5
Solution: ACCT3303 Project One