Practice set of Accounting Problems as a Project

Fill out each section of the file. It goes through the whole accounting cycle

Company Information & Summary of Significant Account Policies
Macon Machines Company began operations on November 1, 2024. The main operating goal of the company is to sell high end
robots. Customers may pay using cash or if appropriate, credit is extended to customers with terms 3/15, n/30 .
The company uses the perpetual inventory method and a FIFO cost system. The company follows a calendar year, with all
adjusting entries made at the end of the accounting period, December 31. The company uses the straight-line depreciation
for all depreciable assets. The company has decided to use the Allowance method to account for uncollectible accounts. At
the end of the period, based on industry standards, the company believes 2% of the balance in accounts recievable will be
uncollectible. The company purchases robots for resale only as such they carry them as inventory.
The company has two employees, one is a sales technician, salary of $2000 per month and the other employee is the office
manager with a salary of $3000 per month. Payroll is processed on the last day of the month, and paid on the first day of the
following month. This means the November 30 payroll with accrue into Salaries Payable and then be paid on Decemember 1.
Required:
1) Make sure your student ID is correct, this will change the information. Macon Machines Company engaged in the following transactions for
November and December. Record the following transactions on the Daily Transactions tab.
Note: Place debits first, credits second but do NOT indent credits. If more than one debit or credit, please list in alphabetical order to receive full
credit. Round to the penny unless otherwise noted.
1-Nov The owner invested $560000 into the company in exchange for 5,000 shares of common stock.
1-Nov The company purchased a computer system for $10000 and signed a one-year note for the entire balance. The note is due on
November 1, 2025 and has an annual rate of interest of 3%.
2-Nov Paid for two years rent on the office space, $11200.
3-Nov Purchased 10 robots at a total cost of $5000 each for cash, FOB Destination.
4-Nov Purchased $2500 of supplies on account, term n/30.
15-Nov Purchased 12 robots at a total cost of $5500 each on account, terms n/30, FOB Destination. Shipping of $150 was paid to the shipping
company by the appropriate party.
17-Nov Paid for the supplies purchased on November 4.
18-Nov Paid for a two-year insurance policy for the store, $6000. The policy was effective beginning December 1, 2024.
20-Nov Sold 15 robots for $8500 each on account, terms 3/15, n/30, the company uses FIFO to find the cost of goods sold. The robots were
shipped FOB Shipping Point. Record the sales revenue first.
28-Nov Received payment in full on account from the November 20 sale.
29-Nov Paid for November’s utilities bill $5600.
Prepared payroll for the month of November, the first payroll for the company. Record the Salares Expense entry first. The tax rates
30-Nov are as follows:
Federal Income Tax Rate – 15%.
NC State Income Tax Rate – 10%.
FICA Tax Rate – 7.65%.
Unemployment Tax Rate – 6% on the first $7000 of each employees earnings per year.
1-Dec Paid the employees the amount due to them from the November 30 payroll, taxes will be paid in January.
The company borrowed $15000 from Bank of America by signing a 15-year, 6% note. The note requires annual payments of $1544
1-Dec
beginning December 1, 2025.
1-Dec Purchased a new delivery truck to save customers on shipping. The total cost of the Delivery Truck was $30000.
4-Dec Paid the amount due from the November 15 purchase.
5-Dec Declared and paid $2000 in cash dividends to the stockholders of the company.
6-Dec Purchased $3000 of supplies on account, term n/30.
7-Dec Purchased 20 robots at a cost of $6050 each on account, terms n/30, FOB Destination.
Sold 22 robots for $9350 each on account, terms 2/10, n/30, FOB Shipping Point, the company uses FIFO to find the cost of goods sold.
15-Dec
Record the sales revenue first.
18-Dec Paid for an ad in the local newspaper, $5000.
24-Dec Received $74800 payment for 8 robots to be shipped on January 8, 2025.
31-Dec Prepared payroll for the month of December, the first payroll for the company. Record the Salaries Expense entry first. The tax rates
are as follows:
Federal Income Tax Rate – 15%.
NC State Income Tax Rate – 10%.
FICA Tax Rate – 7.65%.
Unemployment Tax Rate – 6% on the first $7000 of each employees earnings per year.
2) Post all the Daily Transactions to the Ledger on the Ledger tab.
3) As of December 31, a search revealed the following information. Record any necessary adjusting entries for the year on the Adjusting Entries
tab.
1 The computer equipment purchased on November 1 has a 5-year life and an expected residual (salvage) value of $1000.
2 Record any interest that has accrued on the note signed on November 1 for the computer system.
3 The rent paid on November 2 is for two years beginning on November 1.
4 The insurance policy purchased on November 18 is effective beginning December 1.
5 Supplies on hand as of December 31 totaled $1100.
6 The delivery truck purchased on December 1 has a 10-year life and an expected residual (salvage) value of $3000.
7 Accrue the interest, if needed, on the note signed on December 1.
8 Record any bad debt expense for the year ended December 31. Round answer to the whole dollar if needed.
9 Utilites accrued but not yet paid as of December 31 totaled $5600.
4) Post all the Adjusting Entires to the Ledger on the Ledger tab.
5) Based on the account balances in the ledger, create an adjusted trial balance on the Adjusted Trial Balance tab.
6) Based on the adjusted trial balance, prepare a multi-step income statement on the Income Statement tab.
7) Based on the adjusted trial balance, prepare the statement of stockholders’ equity on the Equity Statement tab.
8) Based on the adjusted trial balance, prepare the balance sheet on the Balance Sheet tab.
9) Prepare the closing entries (DO NOT POST them to the ledger, just produce the entries). When journaling, close the accounts in the order they
appear on the Trial Balance. Do one entry for revenue accounts, one for expense accounts and one for dividend accounts.
10) Calculate the ratios on the Ratios tab.
Enter your student ID #:
920123456
Company Name:
Macon Machines
Product Sold:
robots
Daily Transactions Journal Page
Date
Account
1-Nov
1-Nov
2-Nov
3-Nov
4-Nov
15-Nov
17-Nov
18-Nov
20-Nov
20-Nov
DR
28-Nov
29-Nov
30-Nov
30-Nov
1-Dec
1-Dec
1-Dec
4-Dec
5-Dec
6-Dec
7-Dec
15-Dec
15-Dec
18-Dec
24-Dec
31-Dec
31-Dec
CR
Adjusting Entries Journal Page
Account
1
2
3
4
5
6
7
8
9
DR
CR
General Ledger (T-Account)
Cash
Accounts Receivable
Allowance for Uncollectible
Accounts
–
–
Supplies
–
Accumulated Depreciation Computer
–
Accounts Payable
–
–
–
Interest Payable
–
Notes Payable
–
–
–
–
Computer Equipment
–
Prepaid Rent
–
–
Deferred Revenue
–
Federal Income Tax Payable
–
Delivery Truck
–
NC State Income Tax Payable
–
Unemployment Tax Payable
–
–
Sales Revenue
–
–
–
–
–
–
–
Sales Discounts
–
Salaries Expense
–
Interest Expense
Payroll Tax Expense
–
–
Utilities Expense
Rent Expense
–
–
Retained Earnings
Service Revenue
Advertising Expense
–
Common Stock
Supplies Expense
–
–
Insurance Expense
–
–
–
NOTE: Three accounts have c
Transactions, your Cash, Accoun
balance will show
unt)
owance for Uncollectible
Accounts
–
Prepaid Rent
Inventory
–
–
Prepaid Insurance
–
–
–
Accumulated Depreciation Delivery Truck
Delivery Truck
Deferred Revenue
–
–
Salaries Payable
–
State Income Tax Payable
–
–
–
FICA Tax Payable
–
–
Retained Earnings
Cash Dividends
Sales Discounts
–
–
Cost of Goods Sold
Salaries Expense
–
–
Depreciation Expense
Supplies Expense
–
–
Bad Debt Expense
–
–
–
OTE: Three accounts have check figures. After posting the Daily
sactions, your Cash, Accounts Receivable, and Cost of Goods Sold
balance will show GREEN if it is correct.
Adjusted Trial Balance
December 31, 2024
Account Name
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Supplies
Prepaid Rent
Prepaid Insurance
Computer Equipment
Accumulated Depreciation – Computer
Delivery Truck
Accumulated Depreciation – Delivery Truck
Accounts Payable
Interest Payable
Deferred Revenue
Salaries Payable
Notes Payable
Federal Income Tax Payable
NC State Income Tax Payable
FICA Tax Payable
Unemployment Tax Payable
Common Stock
Retained Earnings
Dividends
Sales Revenue
Service Revenue
Sales Discounts
Cost of Goods Sold
Advertising Expense
Utilities Expense
Salaries Expense
Depreciation Expense
Debit
Rent Expense
Interest Expense
Supplies Expense
Bad Debt Expense
Payroll Tax Expense
Insurance Expense
Totals
–
Credit
–
Macon Machines Company
Multiple-Step Income Statement
For the Year Ended, December 31, 2024
Gross Profit
Total Operating Expenses
Operating Income
Net Income
024
Macon Machines Company
Statement of Stockholders’ Equity
For the Year Ended, December 31, 2024
Common Stock
Balance, January 1
Balance, December 31
Company
olders’ Equity
cember 31, 2024
Retained Earnings
Total Stockholders’ Equity
Macon Machines Company
Classified Balance Sheet
At December 31, 2024
Total Current Assets
Total Assets
Total Current Liabilities
Total Liabilities
Total Stockholders’ Equity
Total Liabilities & Stockholders’ Equity
Closing Entries Journal Page
Date
Account
31-Dec
31-Dec
31-Dec
DR
CR
For each ratio, in the answer cell, use FORMULAS to calculate the
ratio, do not type in the answer.
Ratio
Formula
Answer
Current Ratio
Current Assets/Current Liabilities
Debt to Equity
Total Liabilities/Stockholders Equity
Gross profit ratio GP/Net Sales
Profit margin
Net income/Net sales
Return on Assets Net income/Average total assets
Use A Formula
Use A Formula
Use A Formula
Use A Formula
Use A Formula