Henri_Project 3 Fall2015 - Name BUA 201 Fall 2015 Project 3(70 pts BUA 201 Fall 2015 Final Project(70 pts Dr Henri Akono Notice You are required to

Henri_Project 3 Fall2015 - Name BUA 201 Fall 2015 Project...

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1 Name ___________________________________ BUA 201 Fall 2015 Project 3 (70 pts) # ___________ BUA 201 – Fall 2015 Final Project (70 pts) Dr. Henri Akono Notice : You are required to submit your solution in hardcopy, handwritten form in class on the due date: Wednesday December 9 th , 2015 . I will not accept any project submitted after this date. Instructor’s comment: ________________________________________________ Maine Business School_Principles of Financial Accounting | Project #3_Fall 2015
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1 Name ___________________________________ BUA 201 Fall 2015 Project 3 (70 pts) # ___________ "On my honor, as a student of The University of Maine, I will uphold the highest standards of academic integrity and personal accountability for the advancement of the dignity and the reputation of our university and myself.” Student Signature _____________________________________________ Maine Business School_Principles of Financial Accounting | Project #3_Fall 2015
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1 Name ___________________________________ BUA 201 Fall 2015 Project 3 (70 pts) # ___________ General Information Introduction Jones Widget Company (JWC) incorporated at the beginning of 2014. Below is the post closing trial balance as of 12/31/14. Maine Business School_Principles of Financial Accounting | Project #3_Fall 2015 Account Title Balance Cash 10,700 Accounts Receivable 12,300 Allowance for Doubtful Account (685) Inventory 12,300 Prepaid Rent 1,500 Equipment 25,000 Accumulated Depreciation-Equipment (2,400) Total assets 58,715 Sales Tax payable 800 FICA Taxes Payable 600 FIT (i.e., Federal Income) Taxes Payable 500 Wages Payable 1,600 Unearned Revenue 6,500 Interest Payable 440 Notes Payable 22,000 Common Stock 23,100 Retained Earning 3,175 Total liabilities + stockholders’ equity 58,715
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1 Name ___________________________________ BUA 201 Fall 2015 Project 3 (70 pts) # ___________ Additional Information:JWC establishes a policy that it will sell inventory at $130 per unit. Sales taxes are 5%. JWC will use the FIFOmethod and record COGSon a perpetualbasis. Employee wages are $4,000 per month, the federal income taxes (FIT) withheld are $500 and the FICAtaxes are $300 per monthpayable on the first (1st) and sixteenth (16th) of the month.The Beginning inventory of $12,300 consists of 200 units.The Prepaid Rent balance is for the month of January.The equipment was purchased on July 1, 2014. It has a residual value of $1,000 and an expected life offive years. It is being depreciated using the straight line method.UnearnedRevenue is for 50 unitsordered by two customers in late December. One order will be filled in January, the remainder in early February.
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