I have a big accounting project that thats due soon and I am just not understanding how to do it….

I have a big accounting project that thats due soon and I am just not understanding how to do it. I need to get this finished soon! But being an Animal Science major accounting is not my cup of tea…For the project we are given the trial balance for a company for June 30, 2012. Along with transactions from July with adjusting entries that need to be recorded. We are to prepare a Trial Balance for July after all journal entries and adjusting entries have been posted. Then we are to prepare a balance sheet, income statement, and statement of stockholders equity for july. I have the Journal entries and adjusting journal entries completed, but I’m struggling from where to go from there!! Please Help! This is my last semester and I need to pass this class to graduate! I have all the information on an excel…please someone help! 

2

>Info

2, HAMILTON

on

0, 20

2

is given below

Camp, Inc.
June

, 2012

1,500

10,000

and after)

,000

(due before June 2013)

5,000

10,000

257,510

1-Jul

1-Jul

0 on account

. The cost of inventory was $

9-Jul

. Received $10,000 in cash and issued a receivable for $

. The terms of the note were 6 months, 10% interest. The equipment had originally been purchased for $

three years ago. Accumulated depreciation of $15,000 related to the equipment has been recorded.

0

0

28-Jul

. The cost of inventory was $800

31-Jul

31-Jul

31-Jul

31-Jul

1

2

3

4

of accounts receivable will be uncollectible

5

6

7

ACCT 2

5

Semester Project

M

7

0

The trial balance for

Camp, Inc.

June

3

1

Trial Balance

30

Account

Debit

Credit

Cash

1

5,000

Accounts Receivable

9,

500

Allowance for Doubtful Accounts

1,500

Prepaid Rent

Interest Receivable

510

Inventory

10,000

Note Receivable (due before June 2013)

1

2,000

Land

Plant, Property &

Equipment

150,000

Accumulated Depreciation

55,000

Goodwill

12,000

Note Receivable (due 201

4

3

6

Accounts Payable

5,

800

Notes Payable

Interest Payable

1,

200

Bonds Payable (Long-Term)

Discount on Bonds Payable

1,000

Notes Payable (due 2014 and after)

30,000

Common Stock, $10 par value, 800 shares issued and outstanding

80,000

Paid in Capital in Excess of Par Value

20,000

Retained Earnings

49,010

257,510

STEP 1: Record July transactions:

1-Jul

Takes out a loan for $10,000 to purchase equipment for $12,000 (paid $2,000 in cash). The terms of the loan are 12-month, 8% interest. 1st payment is due August 1.

Record collection of note receivable of $12,000. Original note was issued January 1 as a 7-month, 8.5% interest note. Interest has been accrued monthly.

Purchased inventory of $

250

2-Jul

Sells merchandise for cash of $

4500

1200

3-Jul

Declared a cash dividend of $0.75/share cash dividend

9-Jul

The president of the company authorizes a write-off of $250 owed by Down the Drain LLC. Camp, Inc uses the allowance method of accounting for bad debts.

Paid salaries of $

3,000

11-Jul

Sold equipment for $

15,000

5000

25,000

15-Jul

Sells merchandise for $5,000, terms 2/10, n/30. The cost of inventory was $

100

17-Jul

Paid for liability insurance premiums for June 2012 of $

300

23-Jul

$250 worth of merchandise sold on July 15 is returned. The original cost of inventory was $100.

27-Jul

Made payment of $800 to accounts payable

28-Jul

Paid cash for additional land of $1

600

Sells merchandise for cash of $

3600

29-Jul

Receives balance due for merchandise sold on July 15

30-Jul

Purchased inventory of $500 on account

31-Jul

Paid cash dividend declared on July 3

Paid one year flood insurance of $3600

Pays in full the outstanding payable for inventory purchased on July 1

Received interest from checking account of $100

Paid bank fees of $30

Step 2: The following adjusting entries need to be recorded at the end of the month

Calculate & record monthly depreciation on following fixed assets using straight line depreciation

Building – Depreciable Cost $75,000; Salvage Value = $3,000; Useful Life = 20 Years

Vehicles – Depreciable Cost $30,000; Salvage Value = 0; Life = 5 years

Equipment – Depreciable Cost $10,000; Salvage Value = $400; annual rate of depreciation 25%

Accrued interest on long-term note receivable is $500

On January 1, $9,000 rent for equipment was prepaid for 6 months. Record the adjustment, if any, necessary for June

It is estimated that $

1000

Salaries incurred by the month end but not yet paid is $

2300

Compute and record the accrued interest on note payable taken out on July 1.

The president of the company thinks Goodwill is understated and wants to write it up to $20,000

Step 3: Complet T-Accounts. This will NOT be graded, but will prove to be extremely beneficial to you in completing the rest of the assignment.

Step 4: Prepare a Trial Balance after all JE’s and AJE’s have been posted

Step 5: Prepare a balance sheet, income statement, and statement of stockholders equity for July

STEP 1 JE

Account

1-Jul Equipment 12,000
Cash 2,000
Notes Payable 10,000
1-Jul Cash

12,000

510

1-Jul Inventory

Accounts Payable 2,500
2-Jul Cash

4,500

1,200

Inventory 1,200
3-Jul

600

600

9-Jul Allowance for Doubtful Accounts 250

– Down the Drain LLC

250

9-Jul

3,000

Cash 3,000
11-Jul Cash 10,000
Notes Recievable 5,000

15,000

Equipment 25,000

5,000

15-Jul Accounts Recievable 5,000
Sales Revenue 5,000

1,000

Inventory 1,000
17-Jul

300

Cash 300
23-Jul

250

Accounts Recievable 250
Inventory 100

100

27-Jul Accounts Payable 800
Cash 800
28-Jul Land

Cash 16,000
28-Jul Cash

Sales Revenue 3,600

800

Inventory 800
29-Jul Cash

Accounts Payable 4,750
30-Jul Inventory 500
Accounts Payable 500
31-Jul Dividends Payable 600
Cash 600
31-Jul

3,600

Cash 3,600
31-Jul

Cash

31-Jul

100

Accounts Payable 100
31-Jul Cash 30

30

	Date		DR		CR
(purchased equipment for cash and 12-month, 8% note payable)
	12,510
			Notes Recievable
		Interest Revenue
	2,500
			4,500
				Sales Revenue
		Cost of Goods Sold
		Cash	Dividends
		Dividends Payable
(record declaration of cash dividend)
				Accounts Recievable
	Salaries Expense
Accumlated Depreciation-Equpiment
Gain on Disposal of Plant Assets
(On Terms of 2/10, n/30)
Cost of Goods sold
	Insurance Expense
(Paid insurance premium)
Sales Returns and Allowances
Cost of goods sold
				16,000
						3,600
Cost if Goods sold
		4,	750
(Collection of balance due from sale on July-15)
(purchase of inventory)
(Payment of dividend)
		Prepaid Insurance
(paid 1-year flood insuance)
Account Payable		10,0						67
	10,067
(paid accounts payable July-1 in full with 1month interest)
		Interest Recievable
(intrest received from Checking Account)
Service Revenue
(Record the bank fees)

Step 2 AJE

Date Account DR CR

31-Jul

300

300

31-Jul Depreciation Expense 500

500

31-Jul Depreciation Expense 200

200

(monthly depreciation)

31-Jul

500

Interest Revenue 500
31-Jul

1,000

Allowance for Doubtful Accounts 1,000
31-Jul

2,300

31-Jul

67

67

31-Jul

				Depreciation Expense
Accumulated Depreciation-Building
(to record monthly depreciation)
Accumulated Depreciation-Vehicles
	(monthly depreciation)
Accumulated Depreciation-Equipment
Intrest Receviable
(record of accured intrest of long-term notes recievable)
		Bad Debits Expense
(to record the estimated accounts recievable uncollected)
Salary Expense			2,300
Salaries Payable
(to record Accured Salaries)
		Interest Expense
Intrest Payable
(to record monthly intrest on note payable)
Good will cannot be changed unless there is an exchange transaction that involves the purchase of an entire business. Goodwill is the excess of cost over the fair value of the net assets aquired.

Step 3 T-Accounts

Cash Accounts Recievable Allowance for Doubtful Accounts Land

Accounts Payable

12,510 2,000 250 250 1,000 16,000

800

250

10,000 3,000 5,000 250 2300 10,067 500
4,500 300

3,600 800

4,750 16,000
30 600 Equipment

Accumulated Depreciation Prepaid Insurance

3,600 12,000 25,000 300 15,000 300 3600
10,067

500

200

s

510 5000
Interest Recievable 500 Notes Recievable Notes Payable Depreciation Expense Bad Debits Expense

500

5000

10,000 300 1000 30

100 500

200

Sales Revenue Cash Dividends Inventory debit 1000
4500 600 2500 1200 Cost of Goods Sold Dividends Payable

Interest Expense Interest Payable

5000 100 1000 1200 100 600 600 2300 67 67
3600

500 800 1000

800

0

This is NOT required, but is recommended and will be helpful to complete the assignment.
I have started a couple of accounts, you can add accounts as you feel is necessary
Salary expense		Sales Returns & Allowances
3000		2500
Debit 16,000	Debit 5300	100+4750
debit	3,017	debit 250
Insurance expense
debit 4,500	credit 750
credit 977
Intrest Revenue		Gain on Disposal of Asset	Credit	13,000	debit 300	debit	14,000	Debit 3600
	Service Expense
credit	1010	Credit 5000	12000
debit 600	credit 7,000	credit 10,000		debit 1000	Debit 30
Salary Payable
Debit 600
Credit	13,100	Debit 100
Debit 2900	Credit 2300	debit 67	credit 67

Step 4 TB

Trial Balance
Cash

Accounts Recievable 4,500
Bad Debits Expense 1,000
Interest Recievable 600
Inventory 100
Notes Recievable

Prepaid Insurance 3,600
Land 16,000
Equipment 13,000

14,000

Accounts Payable 3,017
Notes Payable 10,000
Interest Payable 67

2,300

Salaries Expense

Sales Returns & Allowances 250
Retained Earnings 0
Allowance for Doubtful Accounts 750
Interest Revenue 1010
Sales Revenue 13,100
Gain on Disposal of Asset 5,000
Cost of Goods Sold

Insurance Expense 300
Depreciation Expense 1,000
Service Expense 30
Cash Dividends 600
Interest Expense 67
Dividends 0

53,234

Dr.	Cr.
$977
7000
Accumulated Depreciation-Equipment, building, vehicles
Salaries Payable-Accrued
5,300
2,900
	53,234

Step 5 Balance Sheet

Step 5 Income Statement

Step 5 Statement of SE