Utilizing an Excel Spreadsheet, complete a Horizontal Financial
Statement and verify the accuracy of the Financial Statements. Each
year should have their own financial statemen, an Income Statement,
a Statement of Stockholder’s Equity, a Balance Sheet and a Cash
Flow Statement. Assume no taxes are paid.

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Question: Utilizing an Excel Spreadsheet, complete a Horizontal Financial Statement and verify the accuracy…
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Minnesota Manufacturing Company was formed on
January 1, 2014.

Events Affecting the 2014 Accounting
Period:

1. Acquired cash of $103,000 from the issue of common stock.

2. Purchased $4,300 of supplies on account.

3. Purchased a machine press that cost $62,000 cash.

4. Purchased $98,500 of inventory on account.

5. Paid $2,600 cash to settle some of the accounts payable
created in Event 2.

6. Sold inventory that cost $68,900 for $131,700. Sales were
made on account.

7. On Oct. 1, Minnesota Manufacturing loaned $6,000 to Oak Co.
The note had an 6% interest rate and a one-year term.

8. Collected $66,400 cash from accounts receivable.

9. Paid $22,000 cash for other operating expenses.

10. Paid a cash dividend of $2,200.

Information for Adjusting Entries

Adj 1. Recognized Salaries of $5,900 on December 31, 2014.

Adj 2. Had $1,600 of supplies on hand at the end of the
accounting period.

Adj 3. Record $1,200 of Uncollectible Accounts Expense.

Adj 4. Record the accrued interest for Oak Co. loan as of
December 31, 2014.

Adj 5. Adjust the records to reflect the use of the machine
press for 2014. The machine, purchased on January 1, 2014, has an
expected useful life of 10 years and an estimated salvage value of
$2,000. Use straight-line depreciation.

Events Affecting the 2015 Accounting
Period:

1. Acquired and additional cash of $38,000 from the issue of
common stock.

2. Paid $5,900 cash to settle the salaries payable
obligation.

3. Purchased $40,100 of inventory on account.

4. On March 1, paid $12,000 cash in advance for a one-year lease
on a new facility.

5. Received $7,050 cash in advance from Pine Co. for services to
be performed in the future.

6. Purchased $1,700 of supplies on account during the year.

7. Sold inventory that cost $62,450 for $109,100. Sales were
made on account.

8. Oak Company paid off their loan, including the interest, on
September 30, 2015. (See pg 174-175 in the text for how to record
this).

9. Paid $22,500 cash for other operating expenses.

10. Collected $108,000 cash from accounts receivable.

11. Paid a cash dividend of $1,200.

12. Paid $98,000 cash for accounts payable.

Information for Adjusting Entries

Adj 1. Recognized Salaries of $4,500 on December 31, 2015.

Adj 2. Had $600 of supplies on hand at the end of the accounting
period.

Adj 3. Record the lease accrual for the new facility (See Event
4 above).

Adj 4. On December 31, 2015, 1/3 of the services for Pine Co.
have been performed.

Adj 5. Adjust the records to reflect the use of the machine
press for 2015. The machine, purchased on January 1, 2014, has an
expected useful life of 10 years and an estimated salvage value of
$2,000. Use straight-line depreciation.

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