ACCOUNTING WORKSHEET - TRANSACTIONS TRANSACTIONS 1. A new company started on October 1, 2017. It's name is Enjoy Haggis,

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Accounting Worksheet Transactions Transactions 1 A New Company Started On October 1 2017 It S Name Is Enjoy Haggis 1 (63.77 KiB) Viewed 56 times

Accounting Worksheet Transactions Transactions 1 A New Company Started On October 1 2017 It S Name Is Enjoy Haggis 2 (64.72 KiB) Viewed 56 times

ACCOUNTING WORKSHEET - TRANSACTIONS TRANSACTIONS 1. A new company started on October 1, 2017. It's name is Enjoy Haggis, Inc. 2. Co. sold 1,000 shares of common stock for $50,000 on October 1. 3. Co. borrowed $90,000 from the bank on October 2. The terms are 5% payable semi-annually with the principal due in full five years out. 4. On October 4 this co bought trucks for $90,000 with $10,000 down and the balance due with interest at 6% payable semiannually, plus a principal payment of $5,000 every 6 months. 5. On October 5, the company purchased equipment for $70,000. The terms are 8% interest payable every 6 months and the principal balance due in total in three years. 6. On October 6, the company signed a contract for product sales totaling $70,000 over the next 8 months. 7. Oct 6 -- Supplies of $3,000 were purchased on account. 8. Oct 7 - Liability Insurance for the next 12 months, was acquired for $5,000 on account. 9. Oct 7-signed a contract with a major supplier totaling $35,000 covering the next 8 months. 10. Oct 8 - Inventory costing $40,000 was purchased on account and received by Oct 14. 11. Cash sales -- $10,000 products, $20,000 services 12. Credit sales -- $30,000 products, $30,000 services 13. Cost of goods sold was estimated at 50% of selling price 14. $3,000 rent paid for 6 months 15. Payroll - Gross $2,500, $300 deducted from payroll, $2,200 net paid 16. Utilities of $286 were incurred. $100 was paid currently, the balance is due next month 17. Also incurred $7,500 utilities not due until next month 18. Supplies - used $2,000 and paid $500 for additional supplies 19. Vehicle expenses of $914, incurred but not paid 20. Repairs of $914 incurred and not paid 21. Attorney fees of $5,000 due and unpaid 22. Collected $ 4,300 on accounts receivable 23. Paid $3,598 on accounts payable
YEAR END ADJUSTING ENTRIES Whenever accountants are preparing financial statements, they need to be sure all the information needed has been captured. The regular books do not capture everything during the year. Some pieces of information need to be computed at the end of the year. For this company, the following additional information was found. 1. While doing the bank reconciliation, it was discovered that the bank had charged fees of $150 that were not on the accounting books. 2. A discussion with the credit department revealed that one customer had gone bankrupt owing the company $700 and that there was no prospect of recovery. 3. Management estimates that 3.5% of the accounts receivable balance will not be collected. 4. Depreciation needs to be recorded. See the information on the Transactions list and use the Depreciation page in this excel workbook. 5. A count was made of the supplies on hand. The total on hand amounted to $1,450. 6. The employer's share of the payroll taxes in the amount of $200 had not been recorded. 7. The water bill of $750 had not been recorded. 8. The tax department computed the income tax expense to be $150,000 (all current liability and no deferred taxes). 9. Rent had been paid for parts of both years. The expense for this year has not been recorded as an expense. 10. Interest expense on the loans needs to be accrued. See the information in Transactions and the separate page for Interest in the Excel workbook 11. Insurance had been paid, but the portion applicable to his year has not been expensed.