Using the data provided, perform the steps below to complete the final project. On December 1, 2019, SoccerBox Inc. started operations. The following transactions occurred during December 2019. NOTE: There are no beginning balances-this is a new company. Dec 1 Randol Espy invested $80,000 cash in the company for common stock. 2 SoccerBox purchased soccer equipment for $20,000 cash. 2 SoccerBox rented an old warehouse for $30,000 cash for the first year's (December 2019-November 2020) rent. 3 SoccerBox purchased $500 of office supplies with cash. 10 SoccerBox paid $12,000 cash for an annual insurance policy. 14 SoccerBox paid $4,000 cash for the first payroll earned by its employees. 24 SoccerBox received $85,000 cash from soccer fees paid by parents for a private youth soccer lesson. 28 SoccerBox paid $4,000 cash for 2 weeks' salaries earned by its employees. 29 SoccerBox paid $200 cash for minor repairs to its soccer equipment. 30 SoccerBox paid $150 cash for this month's telephone bill. 30 Dividends of $1,000 cash were paid by SoccerBox to its current shareholders. Using this spreadsheet and the information above, complete the following: Record the journal entries that occurred during the month of December. Prepare an unadjusted trial balance. Create adjusting journal entries at the end of the year (December 31) based on the following adjustment data: One month's insurance coverage has expired (refer to the December 10 entry). The company occupied the warehouse space for the month of December (refer to the December 2 entry). At the end of the month, $100 worth of office supplies are still available (refer to the December 3 entry). This month's depreciation on the soccer equipment is $250. Employees earned $300 of unpaid and unrecorded salaries as of month-end. Prepare an adjusted trial balance. Prepare an income statement, a statement of retained earnings, and a classified balance sheet as of December 31, 2019. what would be the income statement, retained earnings, closing entries and post closing balance?
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Assignment Details
Using the data provided, perform the steps below to complete the final project.
On December 1, 2019, SoccerBox Inc. started operations. The following transactions occurred during December 2019.
NOTE: There are no beginning balances-this is a new company.
| Dec 1 |
Randol Espy invested $80,000 cash in the company for common stock. |
| 2 |
SoccerBox purchased soccer equipment for $20,000 cash. |
| 2 |
SoccerBox rented an old warehouse for $30,000 cash for the first year's (December 2019-November 2020) rent. |
| 3 |
SoccerBox purchased $500 of office supplies with cash. |
| 10 |
SoccerBox paid $12,000 cash for an annual insurance policy. |
| 14 |
SoccerBox paid $4,000 cash for the first payroll earned by its employees. |
| 24 |
SoccerBox received $85,000 cash from soccer fees paid by parents for a private youth soccer lesson. |
| 28 |
SoccerBox paid $4,000 cash for 2 weeks' salaries earned by its employees. |
| 29 |
SoccerBox paid $200 cash for minor repairs to its soccer equipment. |
| 30 |
SoccerBox paid $150 cash for this month's telephone bill. |
| 30 |
Dividends of $1,000 cash were paid by SoccerBox to its current shareholders. |
Using this spreadsheet and the information above, complete the following:
- Record the
journal entries that occurred during the month of December. - Prepare an unadjusted
trial balance . - Create
adjusting journal entries at the end of the year (December 31) based on the following adjustment data:- One month's insurance coverage has expired (refer to the December 10 entry).
- The company occupied the warehouse space for the month of December (refer to the December 2 entry).
- At the end of the month, $100 worth of office supplies are still available (refer to the December 3 entry).
- This month's
depreciation on the soccer equipment is $250. - Employees earned $300 of unpaid and unrecorded salaries as of month-end.
- Prepare an adjusted trial balance.
- Prepare an income statement, a statement of
retained earnings , and a classified balance sheet as of December 31, 2019.
what would be the income statement, retained earnings, closing entries and post closing balance?
The question is based on the concept of Financial Accounting.
As per the Bartleby guidelines we are allowed to answer only the first three sub-parts in case of multiple sub-parts.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 5 images
