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Can I please have a journal entries, balance statement, income statement for year 2 (you don't have to do year 1)!!

Group Project Year 1

The following list summarizes the transactions that took place during a start ups first year of operations. Using the information below, prepare a list of the appropriate journal entries, including any necessary adjusting entries, and create a Balance Sheet and Income Statement. The startup uses straight line when depreciating longterm assets and a perpetual inventory system.

Transactions and information for the year:

1. Jan 1st, issued 500 shares of common stock ($0.50 par value) for $5000.

2. Feb 1st, paid $2500 to purchase land.

3. Feb 28th, issued 100 shares of preferred stock ($100 par value) for $20,000.

4. 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).

5. July 1st, purchased 400 units of inventory at $15 each. $1,000 was paid in cash, the

   rest was on account.

6. July 30th, sold 120 units of inventory for $63 each on account.

7. Aug 2nd, incurred $450 of wages expense.

8. Aug 5th, collected $2500 of accounts receivable.

9. Aug 31st, paid $200 of wages payable.

10. Sept 4th, paid $1600 of accounts payable.

11. Dec 31st, incurred and paid $2,000 of utilities expense.

12. Dec 31st, Purchased a patent for $10,000. The patent has a 20year useful life and no

    residual value.

13. Estimated tax rate is 35%.

Group Project Year 2

The following list summarizes the transactions that took place during a start ups second year of operations. Using the information below (and assuming FIFO for inventory), prepare a list of the appropriate journal entries, including any necessary adjusting entries, and create a Balance Sheet and Income Statement. Once you have created the financial statements, provide the appropriate closing entries.

Recall that there were 280 units of inventory left at the end of Year One. While the company uses FIFO for internal reporting purposes, it reports Inventory under LIFO for financial statement purposes. Therefore, you will need to calculate what the LIFO reserve adjustment would be in Year Two and provide the necessary adjusting entry.

Transactions and information for the year:

1. Jan 2nd, ordered and received 200 units of inventory purchased on account for $14 each

2. Jan 15th, paid $3,400 of accounts payable.

3. Feb 3rd, ordered and received 100 units of inventory purchased on account for $16

   each

4. Feb 22nd, sold 250 units of inventory at $55 each on account.

5. March 1st, incurred $900 of wages expense

6. Mar 30th, collected $5000 of accounts receivable

7. April 1st, paid $700 of wages payable

8. May 2nd, Paid $1000 of accounts payable

9. June 1st, Paid $196 of taxes payable

10. June 30th, made first interest payment on Note Payable.

11. Oct 12th, sold 100 units of inventory at $56 each.

12. Dec 31st, spent $5000 at end of year to repair PPE ($1500) and to improve PPE

    ($3500). Revised useful life is 5 more years. Since the improvements occurred at the end of Year Two, the revised depreciation scheme will only apply to Year Three.

13. Estimated that 5% of Year 2 sales on account would not be collected.

14. Estimated tax rate is 35%

The LIFO Reserve is 4200. Can I please have a journal entries, balance statement, income statement for year 2.

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