| Lastname, firstname |
| Option 1 |
| Portfolio Project |
| ACT 350 Module 8 |
| Computer Depot is a major computer store chain with locations across North America, Europe, and Africa. The company is preparing to report on business transactions that occurred In its first year of operations. |
| Download the Excel spreadsheet for Computer Depot in the module folder. The spreadsheet includes the following tabs: |
| Units |
Unit Cost |
| January 1st |
Common stock is issued in exchange for cash in the amount of ………….………….……………………… |
350,000 |
| February 8th |
The company purchases and pays for 300 units of computer replacement parts at a price of $25 per unit ………….. |
7,500 |
300 |
25 |
| March 1st |
The company pays cash for a one-year insurance policy in the amount of ……………….………………………..….. |
10,752 |
| March 31st |
Rent on a retail space for 12 months is paid in the amount of …..……….……………………………………… |
10,512 |
| April 1st |
Diagnostic tools and testing equipment with a useful life of 2 years is purchased for cash in the amount of …… |
23,460 |
| April 10th |
PC tuning supplies purchased on account in the amount of …………..…………………………………………… |
4,250 |
| May 15th |
The company purchases and pays for another 300 units of computer replacement parts at a price of $38 per unit ….. |
11,400 |
300 |
38 |
| May 30th |
PC repair services are performed on account in the amount of …………………………………………………………..………… |
10,538 |
| June 1st |
The company pays for advertisements to be run for the next 12 months in the amount of ………………………. |
1,540 |
| June 30th |
The company issues a 5-year notes payable with their bank for $100,000 and interest at an annual rate of 8%. |
| Interest is due on June 30th each year and the principal will be paid in full at the end of the 5 year period. |
100,000 |
| July 25th |
Software installation & upgrade services are performed on account in the amount of …………………………………..………… |
10,759 |
| July 31st |
120 units of computer replacement parts are sold for $75 per unit with terms 2/10, n/30. The sale is recorded using |
| the gross method in the amount of (see note c for cost flow assumptions) ……………………………………………………………………………………. |
9,000 |
-120 |
38 |
| August 2nd |
Hardware replacement services are provided on account in the amount of ………………………………………………………………. |
9,820 |
| August 6th |
The company receives full payment from the customer for the July 31st sale ……………………………………… |
8,820 |
| September 15th |
Virus removal services are performed on account in the amount of ……………………..…………………………….………….. |
6,295 |
| September 29th |
Customer payments are received for services previously provided in the amount of ……………………………….. |
1,520 |
| October 13th |
136 units of computer replacement parts are sold for $75 per unit with terms 2/10, n/30. The sale is recorded using |
| the gross method in the amount of ………………………………………………………………………………………. |
10,200 |
-136 |
38 |
| October 29th |
The company receives payment for half of the October 13th sale ……………………………………………………… |
5,100 |
| November 1st |
Equipment originally purchased on April 1st for $3,000 is sold for $1,500 cash |
| November 15th |
A bookkeeper is hired to help the company with daily accounting taxes and annual tax preparation |
| December 15th |
The bookkeeper is paid $4,500 for the previous month’s services |
4,500 |
| Additional information: |
| a. |
PC tuning supplies on hand at the end of the month are as follows: ……………………………………. |
2,550 |
| b. |
The year-end balance reported at the end of the year for the Allowance for Doubtful Accounts |
| is estimated as 2.5% of outstanding receivables at the end of the year |
| c. |
The Company uses a perpetual inventory system and accounts for costs using the Last-In-First-Out cost |
| flow assumption. On December 31st, a count of ending inventory reveals that there are 344 units of computer |
| replacement parts on hand. |
| d. |
All revenue is recorded in the “Sales Revenue” account and reported net of cash discounts on the income statement. |
| e. |
The effective interest method is used to amortize bond premiums and discounts |
| f. |
Adjustments are made at the end of the year for prepaid insurance, rent, advertising, depreciation, and interest expense. |
| g. |
The bookkeeper is paid a salary of $4,500 on the 15th of every month. |
| h. |
The company declared dividends of $700 for the year |
| i. |
Assume selling expenses include advertising and supplies expense. All other expenses, other than depreciation |
| and interest expense, are considered general & administrative. |
| REQUIRED: |
PART A |
| 1. |
Prepare journal entries for each transaction listed above (with descriptions). |
| 2. |
Post journal entries to the general ledger accounts. |
| 3. |
Prepare an unadjusted trial balance. |
| 4. |
Prepare all necessary adjusting journal entries (with descriptions) |
| and post to the general ledger. |
| 5. |
Prepare an adjusted trial balance on December 31st. |
| 6. |
Prepare closing entries, post to the general ledger, and carryforward balances to January 1st of the next year. |
| 7. |
Prepare the following financial statements on December 31st (ignore income taxes): |
| a. Income Statement (multi-step, see Example 5.2 in textbook) |
| b. Statement of Stockholders’ Equity |
| c. Balance Sheet (classified) |
| d. Statement of Cash Flows (indirect method) |
| 8. |
Include a ratio analysis of your company and include the industry averages. Refer to Yahoo Finance or a comparable financial site to locate industry averages for your company. Calculate at least one ratio from each category listed: |
| Liquidity, Solvency, and Profitability, and provide an explanation on what it means to the company (See Chapter 3 in the textbook, pages 128 – 133 and Chapter 4 in the textbook, pages 193 – 199). |
| 9. |
Rename the excel file Lastname_PortfolioProject_Option1.xls and submit your completed project online. |
| REQUIRED: |
PART B |
| 1. In your current position as financial accounting manager, it is your turn to present the financial statements at the monthly leadership meeting. Prepare a PowerPoint presentation (at least four slides but no more than seven slides) analyzing the company’s financial performance for the year of 2019, formatted according to the CSU-Global Guide to Writing and APA Requirements (Links to an external site.)Links to an external site. In your PowerPoint presentation please include speaker notes for each slide. The speaker notes should be written and cited as you would do in a Word paper. |
| 2. Turn in for this portfolio project the following items: |
| a. A cover page with one page of references that match the citations in your speaker notes. |
| b. The completed Excel file from Part A above |
| c. The PowerPoint slides with speaker notes |
