ACCT300 Portfolio Project (Venture Consultants, Power and Demolition
Company, and Warnerwood Accounting Cases)
Option #1: Venture Consultants, Power and Demolition
Company, and Warnerwood Accounting Cases
Portfolio Project Option #1 is for accounting students who are sensing
learners, and learn best from concrete materials and examples. If this is your
learning style preference, you are practical and careful with detail. For this
assignment, you are required to complete all three accounting cases: Venture
Consultants, Power and Demolition Company, and Warnerwood. You will then
present Parts 1, 2, and 3 of the Portfolio Project in Excel as journal entries,
following the exact instructions that accompany each part.
Part 1:
Denzel Brooks opens a web consulting business called Venture Consultants
and completes the following transactions in March:
March 1: Brooks invested $150,000 cash along with $22,000 of office equipment
in the company.
March 2: Venture Consultants pre-paid $6,000 cash or six months’ rent for their
office.
March 3: Venture Consultants made credit purchases for office equipment for
$3,000 and office supplies for $1,200. Payment is due within 10 days.
March 6: Venture Consultants completed services for a client and immediately
received $4,000 cash.
March 9: Venture Consultants completed a $7,500 project for a client who must
pay within 30 days.
March 12: Venture Consultants paid $4,200 cash to settle the account payable
created on March 3.
March 19: Venture Consultants paid a $5,000 cash premium on a 12-month insurance
policy.
March 22: Venture Consultants received $3,500 cash as a partial payment for the
work completed on March 9.
March 25: Venture Consultants completed work for another client for $3,820 on
credit.
March 29: Brooks withdrew $5,100 cash from the company for personal use.
March 30: Venture Consultants purchased $600 of additional office supplies on
credit.
March 31: Venture Consultants paid $500 cash for this month’s utility bill.
Instructions:
Prepare journals for the above economic transactions. Use the file
called "Student Template" in the assignment section for Part #1, Link
Works Co. Enter your journals to the general ledger using the same file name.
Part 2:
The following unadjusted trial balance is for Power and Demolition
Company as of year-end for the April 30, 2015 fiscal year. The April 30, 2015
credit balance of the owner's equity account is $46,900, and the owner invested
$40,000 cash in the company during 2015
NO. Account Title Debit Credit
101 Cash $7,000
126 Supplies $16,000
128 Pre-paid insurance $12,600
167 Equipment $200,000
168 Accumulated depreciation – equipment $14,000
201 Accounts payable $6,800
251 Long-term notes payable $30,000
301 Bonn, equity $86,900
302 Bonn, withdrawals $12,000
401 Demolition fees earned $187,000
623 Wage expense $41,400
633 Interest expense $3,300
640 Rent expense $13,200
683 Property tax expense $9,700
684 Repairs expense $4,700
690 Utilities expense $4,800
TOTALS $324,700 $324,700
Instructions:
a) Journalize the following adjusting entries as of fiscal year-end
April 30, 2015.
b) Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
c) Create financial statements.
b) Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
c) Create financial statements.
The supplies available at the end of fiscal 2015 year are at a cost of
$7,900.
The cost of expired insurance for the fiscal year is $10,600.
Annual depreciation on equipment is $7,000; no other depreciation
adjustment was made in 2015.
The April utilities expense of $800 is not included in the adjusted
trial balance, because the bill arrived after the trial balance was prepared.
The $800 amount owed needs to be recorded..
The company's employees have earned $2000 of accrued wages in the fiscal
year.
The rent expense not yet paid or recorded in the fiscal year is $3000.
Additional property taxes of $550 have been assessed for the fiscal
year, but have not yet been paid or recorded in the accounts.
The $300 accrued interest for April has not yet been paid and reported.
Part 3:
The Warnerwood Company uses a perpetual inventory system. It entered the
following purchases and sales transactions for March into the system:
Date Activities Units Acquired at Cost Cost per Unit Units Sold at
Retail Price per unit
March 1 Beginning inventory 100 units $50
March 5 Purchase 400 units $55
March 9 Sales 420 $85
March 18 Purchase 120 units $60
March 25 Purchase 200 units $62
March 29 Sales 160 units $95
Totals 820 units 580 units
Instructions:
Show all of your work in an Excel spreadsheet for the following tasks:
Compute the number of units available for sale.
Compute the number of units in ending inventory.
Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO,
and (c) weighted average. (Round the average cost per unit to 2 decimal
places.)
Compute the gross profit earned by the company for each of the four
costing methods. (Round the average cost per unit to 2 decimal places.)
Portfolio Project Option 1 Student Template
Option #1: Venture Consultants, Power and Demolition Company, and Warnerwood
Accounting Cases
TUTORIAL PREVIEW
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201
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Account payable
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$6,800
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$6,800
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Utilities payable
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800
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800
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Wages payable
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2000
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2000
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Rent Payable
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3000
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3000
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PropertyTxPayable
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550
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550
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Interest payable
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300
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300
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