Accounting | Final Project Congratulations! You secured a job as the accountant for a startup company, Spector Cosmetic

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Accounting Final Project Congratulations You Secured A Job As The Accountant For A Startup Company Spector Cosmetic 1 (71.38 KiB) Viewed 39 times

Accounting | Final Project Congratulations! You secured a job as the accountant for a startup company, Spector Cosmetic Kits. The company buys makeup kits and sells them to customers. Since you have full control of the accounting, you decide the company will use accrual-based accounting and a FIFO perpetual inventory system You round all numbers to zero decimal proces Your tasks: 1. The following events happened in December that you record journal entries for and post to the ledgers). You always enter explanations for your journal entries so that there is full transparency Dec 1 Operations started with a $14200 cash and S5000 sales merchandise 150 kits) contribution from the CEO and owner Marc Spector in exchange for common stock Dec 3 You found a great deal on insurance for the company and purchased two years of coverage in advance for $2,400 cash total Dec 4 Marc sold 10 kits on account to customer Wanda Maximoff for $1,500. Sales tax on the transaction is 5% Remember, the company is on a perpetual inventory system and uses the FIFO method Dec 15 Mary Jane Watson purchased 5 kits from the company for $800. Sales tax on the transaction is 5% Dec 17 Marc purchased and received 75 more kits for merchandise inventory. He received a bulk discount for the large order so the total price was $6.750. The transaction was paid for with a note payable that has to be paid back in 120 days with a rate of 5% Dec 19 At a live demonstration event, Marc sold 70 kits for cash totalling $10,000 Sales tax on the transactions was 5% Dec 23 Marc decided the company needed a delivery truck. He purchased one for $2440 cash Dec 27 Mare convinced a customer to go ahead and pay for an order of lots that won't be delivered until January. The cash received for the order was $5020 Dec 31 The company paid dividends to the owner, $780. 2 Subtotal all of the ledger accounts and prepare the unadjusted trial baldnice as of December 31, 2021 3. You've got to make sure the ending financials for 2021 meet GAAP revenue and expense recognition principles and determine the following adjustments need to be made for the end of the year. You record the journals and post to the ledgers) a Salaries for the month of Dec total $1920 gross and will be paid on lan 5. Deductions: 5180 federal income taxes, S120 state income taxes; 6.2% FICA Social Security tac 145% FICA Medicare ta: 5150 medical insurance b. You accrue the employer liabilities for payroll taxes both FICA taxes are the same as the employee's: FUTA 6X SUTA is 5,4% c. You decide to use straight-line depreciation for the truck and think there will be 5500 salvage value. After a little research, you determine it will probably last about three years. You record the depreciation for December d. The December portion of the insurance you prepaid has expired. e. After reconciling the cash account to the bank statement, you find that payment was received in full from Wanda Maximoff and you neglected to record it. You correct the books f. You expect utilities for Dec to be about $180 and record the liability You record December's interest on the note payable, using 360 days per year for the calculation 4. Subtotal the ledger accounts and prepare the adjusted trial balance as of December 31, 2021 since all year-end adjusting entries are posted S. Prepare the financial statements to provide Mare with the company's performance for the year, remember to format neatly is signs in correct places, etc): a Multiple-Step Income Statement b. Statement of Retained Earnings c Balance Sheet 6. Time to close out the yearl Prepare all of the closing entries and post them to the ledger 7. Subtotal the balance in each ledger account and prepare a post-closing trial balance as of December 31, 2021 Pg 1 of 12 REASSIST 8