The objective is to prepare a comprehensive balance sheetpresented in good form and derived from a list of various accounts.The amounts relative to each account will be given and the studentwill learn to determine whether an account is a balance sheetaccount or a temporary account that belongs to the incomestatement. The accounts will be comprised of all the varioussubgroupings in the balance sheet (current assets, investment,fixed assets, intangibles, and other assets, as well as currentliabilities, long-term liabilities, and the equity sections).Guidelines include the following. Obtain the list of accounts underthe section Course Project Listing of Accounts. Determine whichaccounts belong to the balance sheet and which accounts belong tothe income statement. Determine to which subgroup each accountbelongs. Arrange the accounts in proper order and functionality.Prepare a comprehensive balance sheet in good form. Prepare asingle-step income statement in good form. Put the Course Projectin the Dropbox for the project in Week 8. Grading Rubric CategoryPoints % Description Making proper selection of accounts relativeto the balance sheet or the income statement 30 20 From theprovided listing of accounts, determine which accounts are balancesheet accounts and which accounts are income statement accounts.Putting the accounts into the proper subgroup according tofunctionality 15 10 Each account belongs to a particular subgroup.The student is to determine to which subgroup the account belongs.This should be done according to functionality. Prepare the balancesheet in good form 45 30 Proper form is important in thepreparation of the balance sheet. Examples can be found in thetext. Prepare the income statement in good form 45 30 Proper formis important in the preparation of the income statement. Examplescan be found in the text. Ensuring that the balance sheet and theincome statement have been computed correctly 15 10 A quality paperwill meet or exceed all of the above requirements. Total 150 100Course Project Listing of Accounts Accounts Payable 197,532 AccountReceivable 165,824 Accrued Interest on Notes Payable 500 AccruedLiabilities 9,500 Accumulated Depreciations 341,200 AdditionalPaid-In Capital 37,500 Administrative Expenses 350,000 Allowancefor Doubtful Accounts 1,850 Building 975,800 Cash 42,485 CommonStock 400,000 Copyrights 105,000 Cost of Goods Sold 1,000,000Customer Deposits (expected to be paid next year) 420 Deposits WithVendors (based on a long-term purchase contract) 50,000Depreciation Expense (40% Selling, 60% Administrative) 100,000Dividend Income 30,000 Goodwill 100,000 Income Tax Expense 82,250Income Taxes Payable 62,520 Interest Revenue 25,000 Inventories499,493 Investments in Warren Co. 87,500 Land 125,000 MortgagePayable ($1,500 per month) 308,000 Notes Payable to Banks 50,000Notes Receivable (due next year) 23,000 Patents 125,000 PreferredStock, 7% 300,000 Prepaid Expenses 16,252 Rental Income 50,000Retained Earnings 162,582 Selling Expenses 300,000 Salaries Payable52,000 Sales Discounts 120,000 Sales Revenue 2,000,000 Securities(available for sale) at Fair Market Value 28,250 Trademarks 80,000Twenty-year, 12% Bonds, Due 1/1/2013 500,000
The objective is to prepare a comprehensive balance sheetpresented in good form and derived from a list of various accounts.The amounts relative to each account will be given and the studentwill learn to determine whether an account is a balance sheetaccount or a temporary account that belongs to the incomestatement. The accounts will be comprised of all the varioussubgroupings in the balance sheet (current assets, investment,fixed assets, intangibles, and other assets, as well as currentliabilities, long-term liabilities, and the equity sections).Guidelines include the following. Obtain the list of accounts underthe section Course Project Listing of Accounts. Determine whichaccounts belong to the balance sheet and which accounts belong tothe income statement. Determine to which subgroup each accountbelongs. Arrange the accounts in proper order and functionality.Prepare a comprehensive balance sheet in good form. Prepare asingle-step income statement in good form. Put the Course Projectin the Dropbox for the project in Week 8. Grading Rubric CategoryPoints % Description Making proper selection of accounts relativeto the balance sheet or the income statement 30 20 From theprovided listing of accounts, determine which accounts are balancesheet accounts and which accounts are income statement accounts.Putting the accounts into the proper subgroup according tofunctionality 15 10 Each account belongs to a particular subgroup.The student is to determine to which subgroup the account belongs.This should be done according to functionality. Prepare the balancesheet in good form 45 30 Proper form is important in thepreparation of the balance sheet. Examples can be found in thetext. Prepare the income statement in good form 45 30 Proper formis important in the preparation of the income statement. Examplescan be found in the text. Ensuring that the balance sheet and theincome statement have been computed correctly 15 10 A quality paperwill meet or exceed all of the above requirements. Total 150 100Course Project Listing of Accounts Accounts Payable 197,532 AccountReceivable 165,824 Accrued Interest on Notes Payable 500 AccruedLiabilities 9,500 Accumulated Depreciations 341,200 AdditionalPaid-In Capital 37,500 Administrative Expenses 350,000 Allowancefor Doubtful Accounts 1,850 Building 975,800 Cash 42,485 CommonStock 400,000 Copyrights 105,000 Cost of Goods Sold 1,000,000Customer Deposits (expected to be paid next year) 420 Deposits WithVendors (based on a long-term purchase contract) 50,000Depreciation Expense (40% Selling, 60% Administrative) 100,000Dividend Income 30,000 Goodwill 100,000 Income Tax Expense 82,250Income Taxes Payable 62,520 Interest Revenue 25,000 Inventories499,493 Investments in Warren Co. 87,500 Land 125,000 MortgagePayable ($1,500 per month) 308,000 Notes Payable to Banks 50,000Notes Receivable (due next year) 23,000 Patents 125,000 PreferredStock, 7% 300,000 Prepaid Expenses 16,252 Rental Income 50,000Retained Earnings 162,582 Selling Expenses 300,000 Salaries Payable52,000 Sales Discounts 120,000 Sales Revenue 2,000,000 Securities(available for sale) at Fair Market Value 28,250 Trademarks 80,000Twenty-year, 12% Bonds, Due 1/1/2013 500,000
Related questions
In addition to presenting the computed answers, please also discuss how you arrived at each answers the accounting problem asks. The accounting problem presents a companyâs balance sheet and income statement. The Diamond Gem Cleaning and Maintenance Service Company is in the business of contracting its cleaning and maintenance services to office buildings. The balance sheet and income statement have blank lines. Determine the values that would be appropriate for each blank line. Provide a narrative of how you arrived at each value. In doing so, explain the account being valued and its relationship to the other financial data. For example, if the accounts payable line was missing, explain that you can derive its value based on knowing all the other values of the current liabilities section. Then explain what an account liability is, as well as why it would belong in the current liabilities section of the balance sheet
Please refer to the income statement and balance sheet of the Diamond Gem Cleaning and Maintenance Service Company available down:
Superior papers will mention and explain the following elements when responding to the assignment question:
Provide correct balances for the blank financial account lines.
Provide a narrative about how the values were determined.
Provide a definition and explanation of each account line that was completed
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Prepare the Income Statement, Statement of Ownersâ Equity and the Balance Sheet for the fiscal year ending September 30, 2017. To support your work prepare the appropriate journal entries and post to the related Accounting Equation or âT-accounts".
The attached Balance Sheet gives your firm's position at the end of fiscal 2016. During fiscal 2017, your firm has the following transactions:
Your firm has total sales for the year of $1,210,500. Included in the total sales figure are $1,010,500 sales on credit. During the year, the firm received $792,000 of payments on account. Customers returned $7,800 for cash refunds during the year.
During the year, the firm determined that accounts totaling $2,900 were uncollectible. Moreover, a $375 receivable written off during the year was subsequently collected. The $375 is not included in âA.â above.
Your firm uses the allowance method to record bad debts. Specifically, the firm uses the percentage of receivables method to compute the allowance for doubtful accounts. The firm uses the following information to determine the allowance:
| Age of Receivables | Percent of current balance | Percent expected uncollectible |
| <30 days | 70% | 2% |
| < 60 days | 23% | 10% |
| >60 days | 7% | 50% |
| Your Firm | |||
| Balance Sheet | |||
| September 30, 2016 | |||
| Assets | |||
| Cash | $ 102,530 | ||
| Accounts receivable | $ 101,640 | ||
| Allowance for doubtful accounts | (6,160) | ||
| Accounts receivable, net | 95,480 | ||
| Inventories | 136,400 | ||
| Trading securities | 111,100 | ||
| Prepaid insurance | 17,100 | ||
| Total Current Assets | 462,610 | ||
| Property, Plant and Equipment, gross | $ 1,633,500 | ||
| Accumulated depreciation | (546,975) | ||
| Property, Plant and Equipment, net | 1,086,525 | ||
| Total Assets | $ 1,549,135 | ||
| Liabilities and Shareholders' Equity | |||
| Accounts payable | $ 89,645 | ||
| Salaries payable | 31,575 | ||
| Dividends payable | 4,400 | ||
| Total Current Liabilities | 125,620 | ||
| Long-term note payable | 380,000 | ||
| Total Liabilities | 505,620 | ||
| Common stock, no par | 490,000 | ||
| Retained Earnings | 591,215 | ||
| Accumulated Other Comprehensive Income | 4,300 | ||
| Treasury stock | (42,000) | ||
| Total Shareholder's Equity | 1,043,515 | ||
| Total Liabilities and Shareholder's Equity | $ 1,549,135 | ||
