90.2K

Verified Solution

Link Copied!

TK M N O P Q R S COBU 201 Fall 2019 Assessment Case INSTRUCTIONS: This project is to be worked individually. The submission must be typed and submitted in THIS Excel file. Prepare the submission as if you are interested in this company and looking to use the company's financial statements to make some decisions. Show and label all work for the problems. VSU Accounting, Inc. General Ledger Cash (11) 26,000 Accounts Receivable (12) Bal. 27,000 Accounts Payable (21) 52,000 Bal Common Stock (31) 56,000 Bal. Bal. 26,000 27,000 52,000 56,000 Wages Payable (22) Prepaid Insurance (15) Bal. 11,000 Office Supplies (14) 25,000 Retained Earnings (33) 55,500 Bal. Bal. 25,000 55,500 11,000 Accumulated Depreciation - Equipment (17) 35,000 Bal. Equipment (16) 144,000 Dividends (32) 29,000 28 Bal Bal 29,000 35,000 144,000 Accumulated Depreciation - Sheet1 B C D E M N O P Q R S Trucks (18) 79,000 F Accumulated Depreciation - Trucks (19) 38,000 Bal. Bal. Bal. Wages Expense $1,000 Service Revenue (41) 198,000 Bal 79,000 38,000 51,000 198,000 Rent Expense (57) 17,000 Supplies Expense (51) Depreciation Expense- Equipment (53) Depreciation Expense- Trucks (54) Bal. 17,000 Truck Expense (56) 12,500 Miscellaneous Expense (58) Bal. 13,000 Insurance Expense (52) Bal. 12,500 13.000 The unadjusted balances in VSU Accounting, Inc. accounts as of December 31st, 2018 are shown in the General Ledger above. Additional information: The data needed to determine year-end adjustments are as follows: a) Supplies on hand at December 31, 2018 are: 5,700 b) Insurance premiums expired during 2018 are: 5,900 c) Depreciation of equipment during 2018 is: 11,100 d) Depreciation of trucks during 2018 is: 9.200 e) Wages accrued but not paid at December 31, 2018 are 7,900 Tues B C D . E .... F . ........ .... J K L M N 0 P Tasks: 1) Use the additional information provided at year-end to record the adjusting entries and post them into the ledger accounts to calculate the new year-end balances. 2) Prepare the Adjusted Trial Balance. Fill out lines with Account Names and fill in boxes with Dollar Numbers. Cash Adjusted Trial Balance Unadjusted Bal Adjustments Adjusted Bal. Dr. Cr. Dr. Cr. Dr. Cr. 26.000 Accounts Receivable 27,000 Office supplies 25,000 Prepaid Insurance 11,000 Equipment 144,000 Accumulated Depreciation - Equipm 35,000 Trucks 79,000 Accumulated Depreciation - Trucks 38,000 Accounts Payable 52.000 Wages Payable Common Stock 56,000 Dividends 29,000 Retained Earnings 55,500 Service Revenue 198,000 Supplies Expense Insurance Expense Depreciation Expense - Equipment Depreciation Expense - Trucks Wages Expense 51,000 Truck Expense 12,500 Rent Expense 17.000 Miscellaneous Expense 13,000 Totals 134,500 134,500 C D E F G H I J K L 3) Use the updated general ledger balances to prepare the following 2018 financial statements for VSU Accounting, Inc. [in proper order): Fill out lines with Account Names and fill in boxes with Dollar Numbers. a) Income Statement Income Statement VSU Accounting, Inc. For The Year Ended 12/31/2018 b) Statement of Retained Earnings Statement Of Retained Earnings VSU Accounting, Inc. For The Year Ended 12/31/2018 C D E F G H J K b) Statement of Retained Earnings 130 131 132 133 Statement Of Retained Earnings VSU Accounting, Inc. For The Year Ended 12/31/2018 134 135 136 137 138 139 C) Balance sheet Balance Sheet VSU Accounting, Inc. As Of 12/31/2018 ASSETS 155 156 159 160 161 162 162 Sheet1 A B C D E F G H I M N O P Q R S 159 160 163 164 LIABILITIES 165 166 167 169 170 STOCKHOLDER'S EQUITY 171 173 174 175 176 177 4) Use the information on the financial statements to answer the following questions: a) Was VSU Accounting, Inc. profitable in 2018? From a management persepctive, what are your thoughts about the company's financial perfromance? 181 183 18s 186 187 188 190 191 b) Has the stockholders' equity grown? How does stockholder's equity grow, and is this good for the business? Sheet1 A B P Q R S C D E F 1 J K L M N O b) Has the stockholders' equity grown? How does stockholder's equity grow, and is this good for the business? T 189 190 191 192 193 194 195 196 c) If looking for a loan, can VSU Accounting, Inc. expect to get the loan? Give your reasons for your response. (Hint: Calculate some appropriate ratios, such as Current ratio, Cash Ratio, Quick ratio, Return on Assets, and Working Capital. These ratio may help.) Current Ratio D Answer Quick Ratio Answer Cash Ratio Working Capital D Answer 221 Return on Assets 222 223 Answer Sheet1 B C D E F G H I 1 K L M N O P Q R S T U Return on Assets d) If you are looking for an investment opportunity, would you invest in VSU Accounting, Inc.? What specifically about the company is appealing? 5) IVSU Accounting, Inc. establishes another branch of the business in Panama City, Panama, what accounting standards will the company use to record the accounting activities and prepare the financial statements? 251 253 254 265 Sheet1 9 M

Answer & Explanation Solved by verified expert

See Answer