Description of this paper

Veneskey?s photo shop is a start up business that sells photography equipment, fixes cameras and




Veneskey?s photo shop is a start up business that sells photography equipment, fixes cameras and develops pictures. You will be the accountant hired to get this store up and running from an accounting stand point. I will provide you with the transactions that happened during year and it?s your job to make sense of it all. The objective is to complete this year?s transactions in Peachtree, complete a depreciation schedule in Excel for each asset, provide payment schedules for each long-term loan, provide financial reports for Dec. 31, 2008, and prepare Mr. Veneskey?s 2009 1040 tax return.;Any non-financial information not provided (company address, email, etc.) you make up.;Starting new company defaults;- In the new company setup screen select ? Use a Sample business (the first option);- On the business type screen select ? Photographer;- Start Date Aug. 08;Delete the following accounts;10100, 10300, 10400, 10500, 12100, 14100, 14700, 15200, 15300, 15400, 17200, 19100, 19150, 19900, 24100, 24900, 40200, 50500, 58500, 60500;Edit/Add the following accounts;10200 ? Veneskey checking;12000 ? Inventory ? Digital Cameras;12050 ? Inventory ? Film;13000 (add) ? Inventory ? Disposable Cameras;39006 ? Capital-Veneskey;39007 ? Drawings Veneskey;40000 ? Sales - Digital Cameras;40600 ? Sales ? Disposable Cameras;40700 ? Sales ? Sales ? Developing;40800 ? Sales ? Repairs;50000 ? Cost of Digital Camera;51000 ? Cost of Film;51500 ? Cost of Disposable Cameras;68500 ? Internet Expense;Only need 1 inventory account and 1 cost of goods account. 2008 is the beginning year. There are some 2009 typos is document, change to 2008;You will need to have the following on an Excel Spreadsheet. Fixed assets are discussed in the appendix of your textbook starting on page 537. An example of a MACRS depreciation schedule is shown in table A-6. A better place to look will be in the intermediate text. It has a very clear listing of tax lives of different classes of assets and MACRS rates up to 20-year life. These tables can also be found online.;1. Depreciation schedule for each asset (using MACRS) If asset has a longer life than 10 years, you need only to list the first 10 years. Do not use Sect. 179;Set up a spreadsheet to show the depreciation expense per year. You might want to look at the depreciation schedule templates at if you aren?t sure where to begin. There is not a template at would work perfectly without modification, however, this should give you a starting point.;2. N/P schedule for each Loan - unless otherwise specified, show each payment (remember, a schedule is simply a listing of the information. Basically, track each loan showing payments and balances at the end of each year.;Aug. 1 Signed all LLC papers and named the store Veneskey?s photo shop;Aug 15 I invested $20,000 into my company.;Sept. 1 As a way to further finance the company without giving up ownership, I took out a $10,000 3 year note payable from Chase Bank that states 8% compounding interest. Equal monthly payments of $313.37 are due starting Sept. 30, 2009.;(Edit account 27000 to make more appropriate);Sept 1 I purchased the following 4 assets with cash;** All PPE will be depreciated using MACRS tables. **;Office Desk (acct 15000) - $800 7 year tax life;Book Shelves (acct 15000) - $700 7 year tax life;1 Computers (acct 15100) - $700 5 year tax life;1 Cash Register (acct 15100) - $300 7 year tax life;Office Space (acct # 15500) - $ 70,000 (you determine tax life);Land (acct #16900) - $ 30,000 (you determine tax life);The Building and Land payments are to the same company. A total of $12,000 was due at signing. The remaining is put on a note payable to Star Financial Bank (Edit Acct 27100). The note is to be repaid monthly and has an 8% compounding interest rate. Each monthly payment is $840.98.They can be paid in one lump sum. They were listed separately for your convenience. This is a 15 year note.;Sept. 30. Received a loan from ?The Other Bank:? (acct 27200). You will also need to set up account 27201 for the Discount on the Note. It is a zero interest loan of $15,000 that must be paid back in 2 years. I must repay them $18,150 in two years, otherwise no payments are due until then. Since there are no payments due until the end of year 2, show the adjusting entries on your Excel worksheet and the final payment.;Sept. 30 ? We will begin to pay all utility bills at the end of the month (electric, gas, telephone and internet). I will list the Gas and Electric bill amounts at the end of each month since they vary, but the telephone and internet bills remain the same. I will not list these after this month. Start with check #500 and progress from there.;Gas (You make up the name) - $104;Electric (again make up the name) - $87;Telephone ? (make up name) - $45;Internet ? (make up name) - $40;* Pay loans *;Oct 1. Purchased Lab Equipment (7 year tax life) from ?Photonics? ?;Photonics offered me a zero interest loan for $20,000 (total).;The note is due in 5 years. We must make monthly payments beginning today. A similar situation would bear an 8% compounding interest. No S.V.;** Remember, you must figure the actual cost of the Lab Equipment**;You will need to use a Financial Calc. which can be found online. This is an annuity due type loan. (payments made day one);Oct. 15. Purchased 3 types of inventory to sell in the business (received bill and inventory from Polaroid) ? Invoice # 700;30 digital cameras - Each cost me $60. I will sell them for $110.;70 rolls of film ? Each cost me $4. I will sell them for $8;100 disposable cameras ? Each cost me $5. I will sell them for $12.;Oct. 31 - Gas - $167, Electric - $85;* Pay Loans *;Nov. 14 Paid Polaroid the amount due;Nov. 16 Purchased photo paper for use in dev. pictures for $250 (use acct 61000);Nov. 30 - Gas - $200, Electric - $90;* Pay Loans *;Dec. 1 Opened up photo shop. Due to numerous sales/ day, you will make an entry once a week of the week?s sale. All sales are in Cash unless otherwise specified. Each time cash in collected it needs to be deposited in the bank. Veneskey?s store is located in Indiana (7% sales tax on Goods sold?not services (i.e. fixing cameras or developing film);Indiana Sales tax Agency ID # 350010010;Use account 23100 for the sales Tax;EIN = 35-1112223;Dec. 1 Hired 2 employees who are paid semi-monthly.;Dec. 6th Sold 3 digital cameras;16 rolls of film;21 disposable cameras;Developed 23 rolls of film @ $5.50 a roll;Fixed Sam Snead?s camera ? bill for $70;Fixed John Markson?s camera ? bill for $50;Dec 10th ? John Markson paid in full;Dec. 13th. Sold 4 digital cameras;19 rolls of film;24 disposable cameras;Developed 20 rolls of film @ $5.50 a roll;Fixed 3 cameras ? all paid in cash?total collected $155;Dec. 14th My photo crew earned their first paychecks;Employee #1 (you make up the name) makes $7.5/hr Single ? 0 allowances and worked 24 hours;Employee #2 (you make up the name) makes $6.5/hr Single ? 0 allowances and worked 22 hours;Setup payroll defaults ? Employee State W/H should go to Acc 23600;Employee County W/H (Madison) should go to Acc 23800;Employer FUTA should go to Acct 23500;Employer SUTA should go to Acc 23700;Payroll Tax percentages;F/W @ Look up in a Circular E for each pay period;St/W @ Find Indiana?s withholding rate;Local W/H Find Wayne County?s (resident) rate;FUTA @ .8% (capped at $7,000 per employee);SUTA @ 2.7% (capped at $7,000 per employee);Dec. 19th - Purchased inventory (received bill and inventory from Polaroid) Invoice # 750;15 digital cameras;40 rolls of film;50 disposable cameras;Dec. 22nd. Sold 6 digital cameras;17 rolls of film;26 disposable cameras;Developed 22 rolls of film @ $5.50 a roll;Fixed 3 cameras ? all paid in cash?total collected $135;Dec. 30th Sold 8 digital cameras;14 rolls of film;29 disposable cameras;Developed 29 rolls of film @ $5.50 a roll;Fixed 4 cameras ? all paid in cash?total collected $195;Dec. 31st My photo crew earned their second paycheck;Employee #1 worked 34 hours;Employee #2 worked 30 hours;Dec. 31st ? Gas - $220;Electric - $110;* Pay Loans (and pay the Jan. 1 bill due to Photonics) *;I have provided the rest of Mr. Veneskey?s tax information for 2009. You need to complete the entire 2009 Federal return to be mailed to the IRS.;Below is Tyler Veneskey?s W-2 info from his prior job before starting the business;Mr. Tyler Veneskey ? SSN: 314-09-1020;Address: 5002 E 200 N, Richmond, IN 47374;Employer: Dell, Inc. Address: 3000 N 82nd St. Castleton, IN 46250;Employer ID, 35-0780111;Box 1: $35,935;Box 2: $3,560.25;Box 3: $38,400;Box 4: $2,380.80;Box 5: $38,400;Box 6: $ 556.80;Box 12a: D $2,465;Box 13: ?check mark? in Retirement Plan Box;Box 15: IN 3590324001;Box 16: $35,935 Box 17: $1,221.79 Box 18: $35,935 Box 19: $ 449.19;Box 20: Madison;Additional Info;Mr. Tyler Veneskey has 2 children that live with him all year and have never been married. He also pays for over half of the kids expenses;Mr. Veneskey?s DOB = 10/31/64;Kids;Jacob Veneskey SSN: 312-38-1090 DOB: 6/10/89 Works full time as a car mechanic earning about $20,000 last year. Saving the money for college;Elijiah Veneskey SSN: 312-38-1091 DOB 8/1/97 Full time high school student. Works part time at Subway and earned about $5,500 last year.;Items to Submit;** All In the same Excel file: save as ? Photo ? (your name);(same Excel rules apply);- Each Long term loan should have it?s own tab;- All Small Depreciable items ($2,500) should be on the next tab (fit to 1 page);- Reports from Peachtree ? need to be in Peachtree layout (not raw data);o Cash Receipts Journal Entries ? fit to 2 appropriate pages;o Cash Disbursement Journal Entries ? fit to 4 appropriate pages (page break approx every 30 rows);o General Journal Entries ? fit to 1 page;o General Ledger Trial Balance ?fit to 1 page (do not show $0 accounts);o Standard Income Statement ? fit to 1 page (do not show $0 accounts);o Statement of Cash Flows ? fit to 2 appropriate pages;o Audit Trail ? (Dates: 10/1/09 ? Date you ended project);** Peachtree file saved as - Photo ? (your name);** Necessary Tax forms ? Complete the forms in one of the following ways (any other way of submission will not be graded);-Fill in forms (found at the IRS website);- H&R Block software;- VITA Practice Lab password learntwo, set up account;** Finally type out your analysis of his start up business ? save as: Analysis-(your name).;Include a brief summary of his business (how it is doing);Everything that is included in your Excel Report and Tax Forms;Things that look good AND Suggestions for improvement;And answering his question on why there is a positive cash flow for Dec, yet a net loss?


Paper#25441 | Written in 18-Jul-2015

Price : $27