Cindy's Cards
Cindy Kerns has always been good at putting together rhymes for any occasion. Cindy has decided that she is going to put her talent to use and earn money from home.
Her plan is to start small, designing the cards on the new computer that she is planning to purchase. Cindy also decided to offer classes in greeting card design to other aspiring greeting card producers. After much thought she has decided to name her business "Cindy's Cards."
In September 2016, Cindy incorporated Cindy's Cards, to lessen her personal liability, and began the process of getting her business up and running. The following events occurred during the month of September 2016:
Daily Transactions -
Sept 1. Cindy deposited $10,000 that she had saved into a new opened business checking account. She received common stock in exchange.
Sept. 2. Cindy designed a brochure that she will use to promote her greeting cards at local stationary stores
Sept. 4. Cindy paid Frank Schwind $50 dollars to critique her brochure before undertaking her final design and printing.
Sept 4. Cindy purchased a new iMac computer tablet, specialized graphic arts software, and commercial printer for the company, paying $4,800 in cash. She decided to record all of these items under the same equipment account. Cindy determined that all of her equipment will have a useful life of 4 years at which time it will not have any resale or scrape value.
Sept. 5. Cindy purchased supplies such as paper and ink for $350 from the local stationary store. She opened a business account with the store and was granted 30 days credit on all purchases, including the one she had just made.
Sept 8. Cindy designed her first 5 cards and prepared to show them to potential customers.
Sept. 10. The owner of the stationary store where Cindy opened her account was impressed with Cindy's work and ordered 1,000 of each of the five card designs at a cost of $1 per card, or $5,000 in total. Cindy tells the customer that she will have them printed and delivered within the week.
Sept. 10. Cindy purchased additional supplies, on account, in the amount of $1,500.
Sept. 17. Cindy delivered the 5,000 cards. Because the owner knows that Cindy is just starting out, he paid her immediately in cash. He informed here that if the cards sell well that he will be ordering more, but would expect a 30-day credit period like the one that he grants to his own business customers. The cost to Cindy for the order was $1,750 of the supplies that she had purchased.
Sept. 18. Cindy paid her balance due for the supplies in full.
Sept. 20. Cindy decided that she should have special renters' insurance to cover the business equipment she now owns. She purchased a one-year policy for $1,200, paying the entire amount in cash.
Sept. 30. Cindy paid herself a salary of $1,000 for the month.
Adjustments -
Because Cindy's business is an accrual based business she must make a few adjustments to record all of here expenses for the month. Use 365 as # of days. Round your answer to the nearest dollar.
Sept. 30 The depreciation for the equipment, computer and printer, need to be expensed for the period (she purchased it on the 4th of the month.)
Sept. 30. Cindy needs to record the insurance consumed or used during the period (insurance was purchased on the 20th of the month.)
Requirements:
You must use the worksheet that I have provided for the work that you complete. You will see sheets for each of the items that are required. When you submit your work you will only submit the excel workbook. Make sure to name your file with last name first initial and your section #.
Enter journal entries for the events that occurred in September which fit the criteria of a journal entry. If they involve money they are to be entered, this includes anything purchased on account. If they are promises of money or business they are not to be entered. Use the examples and project guidelines for understanding. Enter explanations for each entry.
Post the journal entries to the ledger. Make sure and fill out the posting references in both the journal and the ledger.
Create a Sept 2016 Trial Balance.
Journalize the adjusting entries using the date shown.
Post the adjusting entries to the ledger.
Create an Adjusting Trial Balance
Create a Statement of Retained Earnings.
Create an Income Statement
Create a Balance Sheet.
Close all temporary accounts by journalizing and posting the required entries.
Create a post-closing Trial Balance.
Attachment:- Assignment.rar