Assignment:
Financial Statements Assignment
Using the Guest Hotel in Learning Module 8 as an example, based on transactions provided below, please:
1. Journalizing all transactions,
2. Creating a ledger and post journal entries to ledger,
3. Creating an Income Statement,
4. Creating a Statement of Retained Earning, and
5. Creating a Balance Sheet.
Assuming the income tax rate for Glion Hotel is 35%.
Requirements:
• Please use the format of the Guest Hotel example to complete this assignment. In other words, please follow the example step by step to complete this assignment.
• Assume all transactions are cash transactions; no credit cards or checks
• The submission must be a MS Word file.
Transactions:
Glion Hotel Inc. started on January 1st, 20x0. The business uses calendar year as its fiscal year. Below are the transactions occurred during the first year of its operation:
1. January 1st, 20x0: Glion Hotel issued 200,000 shares of common stocks at $2.52 per share.
2. January 1st, 20x0: Glion Hotel borrowed $30,000 from Bank of Ames at annual interest rate of 4.5%. According to the note, Glion Motel will have to pay back the money in three years (i.e. pay interest annually on December, 31st and pay the total amount borrowed at the end of the third year.).
3. January 1st, 20x0: Glion Hotel bought $420,000 worth of furniture by cash. Using straight-line depreciation method, all furniture will be fully depreciated in 18 years.
4. During the year, Glion Hotel had room sales of $142,000
5. On December 31st, 20x0, Glion Hotel paid $3,750 by cash for landscaping services performed for the hotel during the year.
6. During the year, total labor cost was $32,700. Assuming Glion Hotel pays its employees once a year on December 31st.
7. During the year, other operating cost was $38,000. Assuming Glion Hotel pays its bills once a year on December 31st.
8. Glion Hotel is built on a parcel of leased land and the annual lease charge is $13,000. On January 1st, 20x0, to get a bargain price, Glion Hotel paid the landlord the sum of $65,000 for the lease charge of 20x0, 20x1, 20x2, 20x3, and 20x4.
9. On December 30th, 20x0, Glion Hotel received a deposit of $6,300 from Travel Agency for the reservations of 25 rooms from March 1st, 20x1 through March 20th, 20x1.
10. On December 31st , 20x0, Glion Hotel distributed dividends of 3 cents per share.