ACC225: Principles of Accounting I Module 5 Homework Assignment

Homework
Assignment 5

 

 

 

 

 

 

 

 

Homework
Assignment 5

Stephanie
Noland

Allied
American University

 

 

 

 

 

 

 

 

Author
Note

This
paper was prepared for ACC 225, Homework Assignment 5 taught by Debbie Wilson

 

 

ACC225: Principles
of Accounting I

Module 5 Homework
Assignment

 

Directions:
Please use an Excel Spreadsheet to present your homework (note: if you have a
Mac, you may use Pages). Accounting
homework cannot be accomplished in Microsoft Word. Please use the presentations that have been
provided with the course as reference. Also,
you may use the Generic Working Papers Excel Workbook found in the Course
Resources to complete this assignment.
Please visit the Course Resources section. Please note that you may have additional
written homework alongside these application assignments.

 

Please complete the following exercises found at the
end of Chapter 7:

  • Exercise
    7-10
  • Exercise
    7-11
  • BTN
    7-5 (Taking It to the Net)

    • Answer
      questions #1-5. For question #5,
      please note the following:

Question 5.
Read the following papers and analysis of Dell by IDC. Discuss how Dell is showing a 513% Return on
Investment for its flash storage and why this is important globally. Since cloud storage is an intangible asset,
how do you think this affects Dell’s global portfolio? (Note
that Dell became a private company in late 2013; therefore, it no longer
reports to the SEC.)

BTN 7-8 (Global Decision) The
five regional segments are Korea, China, America, Europe and finally Asia.

Samsung does have a dominant
regional segment, which is Korea. The footnote shows that Korea brought the
most revenue to Samsung.

This information is important
because it shows investors and the company itself where its main market is and
which segment Samsung has to focus on, to receive more revenue. (As posted in
discussion board this week)

 

COURSE-LONG
PROJECT DIRECTIONS
: This course contains
a course-long project in which you will work on a variety of problems in
regards to a computer services company called Business Solutions. Each module will build upon one another, so
it is important to complete each part successfully.

 

Please note that
there are 4 total parts to the course-long project. You will have 2 weeks to complete each
part. Please note the schedule below:

 

  • Part 1 will be due at the end of Module 2.
  • Part II will be due at the end of Module 4.
  • Part III will be due at the end of Module 6.
  • Part IV will be due at the end of Module 8.

This course-long
project is a serial problem taken from your textbook. You can view the problem starting in Chapter
1. It will continue through Chapter
4. Please use the Generic Working Papers
Excel Workbook found in the Course Resources to complete this project.

 

COURSE-LONG PROJECT: PART III (Modules 5 and 6)

 

Scenario:
After the success of the company’s first two months, Santana Rey continues to
operate Business Solutions.
(Transactions for the first two months are described in the serial
problem of Chapter 2.) The November 30,
2015, unadjusted trial balance of Business Solutions (reflecting its
transactions for October and November of 2015) follows.

 

No. Account Title Debit Credit
101 Cash $38,264
106 Accounts
receivable
12,618
126 Computer
supplies
2,545
128 Prepaid
insurance
2,220
131 Prepaid
rent
3,300
163 Office
equipment
8,000
164 Accumulated
depreciation—Office equipment
$0
167 Computer
equipment
20,000
168 Accumulated
depreciation—Computer equipment
0
201 Accounts
payable
0
236 Unearned
computer services revenue
0
301 S.
Rey, Capital
73,000
302 S.
Rey, Withdrawals
5,600
403 Computer
services revenue
25,659
612 Depreciation
expense—Office equipment
0
613 Depreciation
expense—Computer equipment
0
623 Wages
expense
2,625
637 Insurance
expense
0
640 Rent
expense
0
652 Computer
supplies expense
0
655 Advertising
expense
1,728
676 Mileage
expense
704
677 Miscellaneous
expenses
250
684 Repairs
expense—Computer
805
Totals $98,659 $98,659

Business
Solutions had the following transactions and events in December 2015.

 

Dec. 2 Paid
$1,025 cash to Hillside Mall for Business Solutions’ share of mall
advertising costs.
3 Paid
$500 cash for minor repairs to the company’s computer.
4 Received
$3,950 cash from Alex’s Engineering Co. for the receivable from November.
10 Paid
cash to Lyn Addie for six days of work at the rate of $125 per day.
14 Notified
by Alex’s Engineering Co. that Business Solutions’ bid of $7,000 on a
proposed project has been accepted. Alex’s paid a $1,500 cash advance to
Business Solutions.
15 Purchased
$1,100 of computer supplies on credit from Harris Office Products.
16 Sent
a reminder to Gomez Co. to pay the fee for services recorded on November 8.
20 Completed
a project for Liu Corporation and received $5,625 cash.
22-26 Took
the week off for the holidays.
28 Received
$3,000 cash from Gomez Co. on its receivable.
29 Reimbursed
S. Rey for business automobile mileage (600 miles at $0.32 per mile).
31 S.
Rey withdrew $1,500 cash from the company for personal use.

The following
additional facts are collected for use in making adjusting entries prior to
preparing financial statements for the company’s first three months:

 

  1. The
    December 31 inventory count of computer supplies shows $580 still
    available.
  2. Three
    months have expired since the 12-month insurance premium was paid in
    advance.
  3. As
    of December 31, Lyn Addie has not been paid for four days of work at $125
    per day.
  4. The
    computer system, acquired on October 1, is expected to have a four-year
    life with no salvage value.
  5. The
    office equipment, acquired on October 1, is expected to have a five-year
    life with no salvage value.
  6. Three
    of the four months’ prepaid rent has expired.

Please complete the following:

 

  1. Prepare
    journal entries to record each of the December transactions and events for
    Business Solutions. Post those
    entries to the accounts in the ledger.
  2. Prepare
    adjusting entries to reflect a through f. Post those entries to the
    accounts in the ledger.
  3. Prepare
    an adjusted trial balance as of December 31, 2015.
  4. Prepare
    an income statement for the three months ended December 31, 2015.
  5. Prepare
    a statement of owner’s equity for the three months ended December 31,
    2015.
  6. Prepare
    a balance sheet as of December 31, 2015.

Note:
You will submit your work at the end of the Module 6 Homework Assignment.