Hello Guys, I Have This Accounting Project And No Idea

Hello Guys I Have This Accounting Project And I Have No Idea What To

Hello Guys I Have This Accounting Project And I Have No Idea What To

Hello guys, i have this accounting project and i have no idea what to do. Please help. You have been hired as an accountant for FigMint Computer Consulting Inc. This business was created when Fig and several of his friends decided they wanted to start their own business. The business was created on April 1, 2012.

The company will have a fiscal year end of March 31st. The initial formation transactions and early purchases for FigMint Computer Consulting Inc. resulted in the following balances prior to them starting the actual business operations: Cash $ 40,800, Accounts Payable $ 19,000, Supplies $ 19,000, Mortgage Payable $ 120,000, Prepaid Insurance $ 19,200, Building $ 150,000, Land $ 10,000, Common Stock $ 100,000. Total Assets $239,000. Total Liabilities + Equity $239,000.

During April, the first month of operations, the following transactions occurred:

  • Borrowed 30,000 from the bank for operating cash on April 2. The note has a 4% interest rate (simple interest) and is to be paid back in 4 years.
  • Purchased computer equipment for $34,000 on April 2.
  • Signed a contract with GVSU Computer Products on April 3 for consulting work to be done over the next 12 months.
  • Purchased $2,300 of additional office supplies on account on April 6.
  • Received $36,000 from GVSU Computer Products on April 8 for the consulting work to be performed over the next 12 months.
  • Paid $2,750 for maintenance on the computer equipment on April 10.
  • Paid $19,000 to suppliers on April 12 for purchases previously made on account.
  • Paid $2,750 for travel expenses for information gathering trips related to the GVSU consulting contract on April 18.
  • Performed services for various customers for $45,000 cash and another $75,700 on account. Record on April 20th.
  • Paid salaries to employees totaling $15,000 for services rendered on April 23rd.
  • Paid utility bill (water) totaling $1,470 on April 26th.
  • Collected $35,000 on April 28 as payment for amounts previously billed.
  • Dividends of $5,000 were declared and paid on April 30th.

At the end of April, the following additional information is available to help determine what adjustments are needed:

  • The Prepaid insurance account represents a 1-year policy purchased April 1, 2012.
  • One month of interest has accrued on the note payable.
  • Supplies on hand are $5,650.
  • Received the bill for utility services (electricity) that the firm used during April in the amount of $3,975. The company will pay the bill in May.
  • One month of the services for GVSU Computer Products have been performed (see item 5 above).
  • Depreciation expense for the equipment is $430 and for the building is $400.
  • Additional work for customers of $12,500 has been performed during the last week of April but not yet billed.
  • Salaries of $25,000 are paid every Friday (for a 5-day work week). April 30, 2012, was a Thursday.

Paper For Above instruction

As an accountant for FigMint Computer Consulting Inc., the assignment involves preparing a comprehensive set of financial documents for April 2012, including journal entries, ledger accounts, trial balances, adjustments, financial statements, closing entries, and post-closing trial balance. This process ensures the accurate recording, adjustment, and presentation of the company's financial position and performance during its first month of operations, following standard accounting principles.

The initial step requires recording all the transactions listed for April through journal entries, utilizing a provided chart of accounts that includes assets, liabilities, equities, revenues, and expenses. Correct journal entries reflect the financial impact of each transaction, such as borrowing funds, purchasing equipment, signing contracts, purchasing supplies, billing and collecting revenue, paying expenses, and dividends.

Next, these journal entries need to be posted to T-accounts to lead into the creation of an unadjusted trial balance, which summarizes all account balances before adjustments. Adjusting entries are then prepared based on the additional information, such as accrued interest, supplies on hand, prepaid insurance, depreciation, unbilled revenue, accrued salaries, and utility bills. These are posted to the T-accounts, resulting in an adjusted trial balance.

The core of the assignment involves preparing the financial statements: an income statement, a statement of retained earnings, and a classified balance sheet as of April 30, 2012. These statements communicate the company’s revenue, expenses, net income, retained earnings, assets, liabilities, and equity for the first month of operations.

Finally, closing entries are made to transfer temporary account balances to retained earnings, followed by preparing a post-closing trial balance to verify ledger accuracy. All work must be meticulously documented in handwritten journal pages and trial balances, while the financial statements are to be typed or printed, following proper formatting and neatness requirements specified in the project guidelines.

This comprehensive process allows accurate reflection of the company's financial status, helps in decision-making, and ensures compliance with accounting standards. It also develops essential skills in accounting cycle procedures, financial reporting, and presentation, which are critical for a professional accountant handling real-world business scenarios.

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