Model The Decision Problem Faced By The Plant Manager ✓ Solved
Model the decision problem faced by the plant manager
(a) Model the decision problem faced by the plant manager. (b) If the plant manager wishes to base her decision on an EMV policy, what should be her optimum strategy?
The company was incorporated on January 1, 2021. The business provides a full range of landscaping services, including landscape design, construction, and maintenance. The following transactions occurred during the first three months of operations: January 1: Common stock is issued in exchange for cash in the amount of $410,000. The company borrows money from the bank by signing a promissory note in the amount of $86,000. The company pays cash for a one-year insurance policy in the amount of $12,000. Rent on a storage facility for the month is paid in the amount of $10,000. Landscaping equipment is purchased for cash in the amount of $328,000. Supplies are purchased on account in the amount of $17,000. The company pays for advertisements to be run during the current month in the amount of $1,000. Services are performed for cash in the amount of $34,000. Services are performed on account in the amount of $17,000. A customer pays cash in advance for future services in the amount of $6,000. Gasoline for the lawn mowers for the current month is paid in cash in the amount of $2,306. February 1: Rent on the storage facility for the month is paid in the amount of $10,000. Salaries for the previous month are paid in the amount of $20,000. A partial payment is made on account for supplies purchased earlier in the amount of $15,000. The company pays for advertisements to be run during the current month in the amount of $1,000. Services are performed for cash in the amount of $35,000. Services are performed on account in the amount of $18,000. Cash is received from credit customers for services performed in the previous month in the amount of $15,000. Services performed for the customer who paid in advance totaled $2,000. Gasoline for the lawn mowers for the current month is paid in cash in the amount of $2,422. March 1: Rent on the storage facility for the month is paid in the amount of $10,000. Salaries for the previous month are paid in the amount of $21,000. Supplies are purchased on account in the amount of $19,000. The company pays for advertisements to be run during the current month in the amount of $1,000. Services are performed for cash in the amount of $40,000. Services are performed on account in the amount of $20,000. Cash is received from credit customers for services performed in the previous month in the amount of $17,000. A partial payment is made on account for supplies purchased earlier in the amount of $14,000. Services performed for the customer who paid in advance totaled $1,000. Gasoline for the lawn mowers for the current month is paid in cash in the amount of $2,000. Dividends are paid in cash to stockholders in the amount of $4,100.
ACTG 2200: Information for Monthly Adjusting Entries includes supplies on hand, depreciation, accrued salaries, interest, and prepaid insurance adjustments for each month.
REQUIRED: Prepare journal entries for each transaction, post to general ledger, prepare unadjusted and adjusted trial balance, prepare financial statements (Income Statement, Statement of Stockholders' Equity, Balance Sheet), and perform closing entries. This project must be completed in Excel. Follow all instructions for submission and formatting.