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COMM 1101 Assignment 1

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Question;I need to make a journal entries for these transactions: took place between Jan 1, 2013- June 30, 2013.March 1: Purchased a building for $140000. They paid $40000 in cash amd borrowed the balance. The loan is due in 5 years and has an interest rate of 8% per annum. Interest payments are due quarterly.May 1: Signed a 4 year lease with SL company to rent out the top floor of the building. SL is required to make quarterly rental payments of $12000. The first rental payment was received today for the first 3 months (May 1- July 31st). the next rent payment is due Aug 1, and every 3 months subsequently for the next 4 years.May 15: Received 38000 cash and bulled customers on account 85000 for total sales of 132000. Cost of goods sold: 52000;COMM 1101;Assignment 1;The;assignment can be done INDIVIDUALLY OR in groups of TWO (2) students MAX ? no;exceptions. YOU must list both names;on your submission or marks will not be awarded after the fact (regardless of;reason). Only 1 submission per group;of 2 is necessary. The assignment can;also be done individually.;The;assignment MUST be done using either;MS;Excel or MS Word. NO hand-written;submissions;DUE;per date & time indicated on BBL. Submissions must be uploaded to BBLearn;by the due date and time indicated on BBL via the assignment upload link only.;No;emails, hard copies will be accepted.;And no late submissions will be accepted either for any reason.;The Infiti Company started business;on January 1, 2013. The following;transactions took place during the six-months;January 1, 2013 ? June 30, 2013.;DATE;TRANSACTION;1.;January 1;Issued 100, 000 shares at a price of;$8 per share;2.;Feb 1;Purchased manufacturing equipment for;$180,000. Paid cash;3.;Feb 15;Purchased inventory for $135,000 on;account.;4.;March 1;Purchased a building for $140,000.;They paid $40,000 in cash and borrowed the balance. The loan is due in five;years and has an interest rate of 8% per annum. Interest payments are due quarterly.;5.;March 20;Paid suppliers on account $40,000.;6.;March 30;Paid cash expenses: salaries $20,000;operating expenses $7,000.;7.;April 1;Purchased an insurance policy with 5;years coverage. They paid cash today of $8,000 for the first year?s;coverage. Equal annual payments of;$8,000 are due on April 1.;8.;May 1;Signed a 4 year lease with SL Company;to rent out the top floor of the building. SL is required to make quarterly;rental payments of $12,000. The first rental payment was received today for;the first 3 months (May 1 ? July 31). The next rent payment is due Aug 1, and;every 3 months subsequently for the next 4 years.;9.;May 15;Received;$38,000 cash and billed customers on account $85,000 for total sales of $123,000.;Cost of goods sold: $52,000;10.;June 1;Paid interest on loan.;11.;June 15;Received $14,000 from customers on;account.;12.;June 30;Paid cash expenses: salaries $22,000;operating expenses $5,000.;13.;June 30;Declared a dividend of 2 cents per;share ($0.02 per share);Other;Information;The;equipment is depreciated straight-line over 8 years. The estimated residual value;is $0.;The;building is depreciated straight line over 10 years. The estimated residual;value is $40,000.;Operating;expenses related to the period which will be paid in July are: 1,900.;Income;tax rate: 30%. Income taxes are due on Nov 15, 2013.;REQUIRED;1);Analyze the transactions;1 ? 13 within the framework of the Basic Accounting Equation using a;spreadsheet.;2);Prepare Journal Entries;to record the transactions entered into during the six-months ended June 30;2013.;3);Prepare an unadjusted;Trial Balance at June 30, 2013.;4);Prepare ADJUSTING Journal;Entries or June 30, 2013.;5);Prepare CLOSING ENTRIES.;6);Prepare the following;Financial Statements;i) Income Statement for the six-months ended June 30, 2013.;ii) Statement of Retained Earnings for the six-months ended June 30;2013.;iii) The Classified Statement of Financial Position (ie, classify by;liquidity, listing current assets and liabilities separately from non-current);as at June 30, 2013.

 

Paper#43661 | Written in 18-Jul-2015

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