Explain those accounts that remain open and why..
These two assignments are DUE in 8 hours!!!
For your Farm Branch Rental project, complete the following:
Journalize the following December 2015 transactions in the computerized accounting system selected:
- December 1: Issued to Larry and Samantha West 10,000 shares of common/capital stock each, in exchange for a total of $200,000 cash.
- December 1: Purchased for $240,000 all of the equipment formerly owned by LMNOP Rental. Paid $140,000 cash, and issued a one-year note payable for $100,000.
- December 1: Paid $12,000 to HJW Realty as three months advance rent on the rental yard and the office formerly occupied by LMNOP Rentals.
- December 4: Purchased office supplies on account from Modern Office Supply Co. for $1,000. Payment is due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.)
- December 8: Received $8,000 cash as advance payment on an equipment rental from Geller Construction Company. (Credit unearned rental fees.)
- December 12: Paid salaries for the first two weeks in December, in the amount of $5,200.
- December 15: Excluding the Geller advance payment of $8,000, equipment rental fees earned during the first 15 days of December amounted to $18,000, $12,000 of which was received in cash and $6,000 AR to be collected from Gellar.
- December 17: Purchased on account from Relocating, Inc., were $600 in parts needed to repair a rental tractor. (Debit an expense account). Payment is due in 10 days.
- December 23: Collected $2,000 of the accounts receivable recorded on December 15 from Geller.
- December 23: Rented a back hoe to Rocks Etc. at a price of $250 per day, to be paid when the backhoe is returned. Rocks Etc. expects to keep the backhoe for about 10 days. (The company is using accrual basis method of accounting)
- December 26: Paid biweekly salaries, in the amount of $5,200.
- December 27: Paid the account payable to Relocating, Inc., in the amount of $600.
- December 28: Declared a dividend of 10 cents per share, payable on January 15, 2016.
- December 31: Received a bill from Progress Energy Utilities for the month of December for $700, due on January 12, 2016.
- December 31: Equipment rental fees earned during the second half of December amounted to $20,000, $15,600 of which was received in cash from Geller Construction Company and $4,400 in AR for Rocks.
Journalize the following adjustments:
- The advance payment of rent on December 1 covered a period of three months.
- The annual interest rate on the note payable to LMNOP Rental is 6%.
- The rental equipment is being depreciated using the straight-line method over a useful life of 8 years; there is no salvage value.
- The office supplies on hand at December 31 equal about $600.
- As of December 31, six days of rent on the backhoe rented to Rocks Etc. on December 23 has been earned.
- During December, the company earned $3,700 of the rental fees paid in advance by Geller Construction, on December 8.
- Salaries earned by employees since the last payroll date (December 26) amounted to $1,400 at month end.
Present a trial balance to show the balancing of accounts. (There are a few accounts that will need to be added in order to successfully complete the journal entries and adjustments).
Upon completion of the journal entries and adjustments, review and print a PDF report in the software that will show the activity of the company. Write a summary of 2–3 paragraphs explaining how the tasks that you have completed previously (course objectives) impacted your ability to perform these entries.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course materials.
Farm Branch Rentals has come to you and wants a review of the current financial position of the company as of December 31, 2015. Complete the following:
- Prepare the 4 closing entries. Discuss the closing process and explain why these accounts are closed and certain accounts remain open without posting transactions to the computerized accounting system selected.
- Explain those accounts that remain open and why.
- In the review of the financials, be sure that you include all of the journal entries, adjustments, and employees that have been set up.
- Discuss the 3 main financial statements and what information is revealed about the company’s current position and other related financials that are used during financial analysis.
- Include at least 5 common financial ratios that help users of the financials understand the position of the company. Be sure to show your work on these ratios and explain why you are using specific numbers.
- Include disclosures to accompany the December 31, 2015 financial statements.
- Be sure to include a separate note addressing each of the following:
- Maturity dates of major liabilities
- Depreciation policy
- Several examples of calculations of each to provide a thorough understanding
- A memo of 350–500 words explaining the financial position of the company.
The deliverables for this part of the assignment are as follows:
- PDF revealing the income statement
- PDF revealing the balance sheet
- PDF revealing the journal entry for the 4 closing processes
- Memo of 350–500 words explaining the financial position of the company
Incorporate this final assignment into your key assignment from the previous week. In your final assignment, incorporate feedback that you have received from your instructor and classmates.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course mater
Explain those accounts that remain open and why.
