These can be done by hand and scanned in or can be in excel!

1.

Record the following entries in T accounts for the first year of our compay.

a. sells 10000 shares of stock for 450000 Stock A/c Dr To Sales A/c (being 10000share sales for stock)

b. pays 3 000 for a 3 year lease !ease A/c To "ank A/c

c. p#rchases 3$00 of s#pplies for cash %#rchase A/c T& 'ash A/c Dr

c. b#ys 41000 of in(entory on acco#nt %#rchase a/c )r To *n(entory A/c

). b#ys +10000 of e,#ip-ent for 1.0000cash an) 30000 notes payable /,#ip-ent A/c Dr To 'ash To 0ote %ayable A/c +10000 1.0000 300000

e. pays the (en)or bill in )

1en)or "ill A/c Dr To "ank A/c

g. b#ys 45000 of in(entory on acco#nt again p#rchase a/c )r to in(entory A/c h. pays stockhol)ers 10000 for )i(i)en)s Di(i)en) A/c Dr To "ank a/c

i.

has cash sales of 150000 an) cre)it sales of +0000. in(entory cost is $0000

'ash A/c )r To sales a/c 0a-e A/c to sales a/c p#rchase a/c to in(entory a/c

2. pays +5000 for salary e3pense Salary a/c Dr To 'ash or "ank a/c

k. pays 3500 for #tility e3pense 4tility a/c )r To 'ash or "ank a/c

l. has $00 of s#pplies left

-. #se) one year of the lease

n. e,#ip-ent 56ore o#t5 by 30000 Depreciation A/c )r To /,#ip-ent A/c

o. o6es (hasn7t yet pai)) interest of 1500 for the notes payable *nterest A/c Dr To 0otepayable

p. is in a 108 ta3 bracket an) 6ill pay the irs ne3t year. (post the payable) Ta3 A/c )r to &#tstan)ing Ta3 A/c

total the t accounts and prepare the four financial statements using excel or manually. Please include a trial balance.

2.Note: This pro ect may be completed with !xcel" The T#$ccount Tool or manually. %t is an independent assignment.

1. Record the following entries for year 1:

a.

The corporation sells 955:000 of stock (1:000 shares). 'ash A/c Dr to sales a/c

b.

The corporation pays 9 :000 for a si3;year lease. lease a/c to cash

c. The corporation p#rchases 91:$00 of s#pplies for cash. p#rchase a/c )r to cash a/c

).

The corporation b#ys 910: 00 of in(entory on acco#nt.

%#rchase a/c to in(entory a/c

e.

The corporation b#ys 95:000 of e,#ip-ent for 93:000 cash an) 9+:000 notes payable.

%ass the sa-e entry as * )o in 1 f. The corporation pays the (en)or bill in ()). (en)or bill a/c )r to bank a/c g. The corporation b#ys 94:500 of in(entory on acco#nt again. %#rchase a/c to in(entory a/c

h.

The corporation pays the stockhol)ers 93:000 for )i(i)en)s. Di(i)en) a/c )r to bank

i. The corporation has cash sales of 91.:000 an) cre)it sales of 9+:000. The in(entory cost is 9<:000. %ass the sa-e entry as * )o in 1 2. The corporation pays 9+00 for cons#lting e3pense.

cons#lting e3pense )r to bank k. The corporation pays 9300 for a)(ertising e3pense.

a)(ertising e3pense )r to bank l. The corporation pays 9+:+00 for salaries e3pense.

salaries e3pense )r to bA0=

-.

The corporation pays 9+50 for #tilities e3pense.

#tilities e3pense

to bank n. The corporation has 9$00 of s#pplies left.

o.

The corporation #se) one year of the lease.

p.

The e,#ip-ent >6ore o#t? by 9500.

Depreciation A/c to /,#ip-ent ,. The corporation o6es (hasn@t pai) yet) interest of 9100 for the notes payable.

%ass the sa-e entry as * )o in 1

r.

The co-pany is in a 108 ta3 bracket an) accr#es no6 for ta3es it 6ill pay later.

%ass the sa-e entry as * )o in 1

2. Prepare the financial statements for year 1. %nclude a Trial balance. Remember to carry the beginning balances forward in the permanent accounts as the first &ear 2 transaction before you begin the year 2 transactions below.

'. Record the following entries for year 2:

The corporation pays the acco#nts payable balance fro- year 1.

The corporation pays the interest payable fro- year 1.

The corporation pays the inco-e ta3 payable fro- year 1.

The corporation recei(es the acco#nts recei(able balance fro- year 1.

The corporation b#ys a))itional in(entory for 9.:000 on acco#nt.

The corporation has cash sales of 9+5:000. The in(entory cost is 911:000.

The corporation pays 9+50 for cons#lting e3pense.

The corporation pays 93+5 for a)(ertising e3pense.

The corporation pays 9+:500 for salaries e3pense.

The corporation pays 9+$5 for #tilities e3pense.

The corporation has 9100 of s#pplies left.

The corporation #se) one year of the lease.

The e,#ip-ent >6ore o#t? by 9500.

The corporation o6es (hasn@t pai) yet) interest of 9100 for the notes payable.

The co-pany is in a 108 ta3 bracket an) 6ill pay the inco-e ta3es later.

(. Prepare the financial statements for year 2. %nclude a trial balance.

). Prepare a *ertical and hori+ontal analysis of the income statement and balance sheet for both years.

,. -or each analysis prepared in .)" discuss significant changes that ha*e occurred.

/alculate the following ratios for year 2 0N1&:

'#rrent ratio

Total Asset T#rno(er

0et %rofit Aargin (Bet#rn on Sales)

Bet#rn on /,#ity

Bet#rn on Assets

*n(entory T#rno(er

Debt to /,#ity Batio

Ti-es *nterest /arne) (*nterest 'o(erage ratio)