{"id":1762,"date":"2024-07-15T10:00:56","date_gmt":"2024-07-15T10:00:56","guid":{"rendered":"https:\/\/britainwriters.com\/answers\/?p=1762"},"modified":"2024-07-15T10:00:58","modified_gmt":"2024-07-15T10:00:58","slug":"desjardins-companys-financial-statement-question-assignment","status":"publish","type":"post","link":"https:\/\/britainwriters.com\/answers\/desjardins-companys-financial-statement-question-assignment\/","title":{"rendered":"Desjardins Company\u2019s Financial Statement Question Assignment"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><strong>Assignment Task<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Question 1.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The following account balances relate to the Desjardins Company\u2019s December 31, 2017 year-end financial statements:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Retained earnings, Jan. 1, Year 7<\/td><td>$ 26,000<\/td><td>&nbsp;<\/td><td>Cash<\/td><td>56,000<\/td><\/tr><tr><td>Income tax expense<\/td><td>24,000<\/td><td>&nbsp;<\/td><td>Consulting revenue<\/td><td>250,000<\/td><\/tr><tr><td>Note payable<\/td><td>55,000<\/td><td>&nbsp;<\/td><td>Repairs expense<\/td><td>10,000<\/td><\/tr><tr><td>Utilities expense<\/td><td>15,000<\/td><td>&nbsp;<\/td><td>Supplies expense<\/td><td>14,000<\/td><\/tr><tr><td>Supplies<\/td><td>4,000<\/td><td>&nbsp;<\/td><td>Salaries expense<\/td><td>100,000<\/td><\/tr><tr><td>Accumulated depreciation, equipment<\/td><td>5,000<\/td><td>&nbsp;<\/td><td>Interest expense<\/td><td>6,000<\/td><\/tr><tr><td>Equipment<\/td><td>65,000<\/td><td>&nbsp;<\/td><td>Dividends \u2013 Common<\/td><td>25,000<\/td><\/tr><tr><td>Common shares, Jan, 1, Year 7<\/td><td>1,000<\/td><td>&nbsp;<\/td><td>Accounts receivable<\/td><td>18,000<\/td><\/tr><tr><td>Accounts payable<\/td><td>3,000<\/td><td>&nbsp;<\/td><td>Depreciation expense<\/td><td>3,000<\/td><\/tr><tr><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Notes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There were no common shares issued or repurchased during the year.<\/li>\n\n\n\n<li>The current portion of the Bank Loan payable was $4,000.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">All accounts have a normal balance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Required<\/strong>:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">a.) Prepare an income statement for the year ended December 31, 2017.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">b.) Prepare a statement of changes in equity for the year ended December 31, 2017.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">c.) Prepare a Balance Sheet as at December 31, 2017. (6 marks) d.) Compute the company\u2019s debt ratio.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Question 2<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The following transactions occurred for Mary\u2019s Consulting in the company\u2019s first month \u2013 January, 2018 \u2013 record journal entries for each transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">January 1 Mary deposited $2,000 in to the company\u2019s bank account in exchange she received 100 common shares in the company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">January 5 The company purchased $500 of office furniture on account. Payment is due on February 5. January 8 The company did consulting work for a client. Billed $3,000. Received half of the money, with the other half due in one week.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">January 10 Paid employee\u2019s wages of $200.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">January 13 Collected the amount due from January 8.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">January 15 Paid the bill from January 5.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Question 3<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fred\u2019s Security has the following transactions and items requiring December 31, 2017 adjustments. Prepare journal entries as necessary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">a.) i.) The company purchased a 12-month insurance policy for $2,000 cash on March 1, 2017.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;ii.) A December 31 adjustment is required.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">b.) i.) The company entered into a contract to provide security work for a client. The client paid Fred\u2019s security $10,000 on October 1, 2017. The company was required to provide security service for 12 months, from October 1, 2017 \u2013 November 30, 2018.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ii.) A December 31 adjustment is required (assume the company provided security service as promised up to December 31).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">c.) The company pays salaries of $8,000 every week on Sunday, based on a 7-day workweek. Assume salaries are earned at the same rate each day. This year, December 31 falls on a Thursday. Record the necessary adjustment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">d.) i.) The company purchased a car for $15,000 cash on February 1, 2017. The car is expected to have a 10-year useful life and no residual value. The company\u2019s accountant wishes to use straight line depreciation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;ii.) A December 31 adjustment is required.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Question 4<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The July 31, 2018 adjusted trial balance of Anderson Company is found below:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Cash<\/td><td>$ 1,000<\/td><td>&nbsp;<\/td><\/tr><tr><td>Accounts receivable<\/td><td>1,500<\/td><td>&nbsp;<\/td><\/tr><tr><td>Supplies<\/td><td>500<\/td><td>&nbsp;<\/td><\/tr><tr><td>Notes receivable<\/td><td>600<\/td><td>&nbsp;<\/td><\/tr><tr><td>Equipment<\/td><td>32,000<\/td><td>&nbsp;<\/td><\/tr><tr><td>Accumulated depreciation, equipment<\/td><td>&nbsp;<\/td><td>$ 14,000<\/td><\/tr><tr><td>Land<\/td><td>58,000<\/td><td>&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Accounts payable<\/td><td>&nbsp;<\/td><td>500<\/td><\/tr><tr><td>Notes payable<\/td><td>&nbsp;<\/td><td>1,000<\/td><\/tr><tr><td>Mortgage payable<\/td><td>&nbsp;<\/td><td>30,000<\/td><\/tr><tr><td>Common shares<\/td><td>&nbsp;<\/td><td>100<\/td><\/tr><tr><td>Retained earnings<\/td><td>&nbsp;<\/td><td>32,000<\/td><\/tr><tr><td>Dividends<\/td><td>2,000<\/td><td>&nbsp;<\/td><\/tr><tr><td>Repairs revenue<\/td><td>&nbsp;<\/td><td>55,000<\/td><\/tr><tr><td>Wages expense<\/td><td>20,000<\/td><td>&nbsp;<\/td><\/tr><tr><td>Supplies expense<\/td><td>1,000<\/td><td>&nbsp;<\/td><\/tr><tr><td>Depreciation expense<\/td><td>3,000<\/td><td>&nbsp;<\/td><\/tr><tr><td>Maintenance expense<\/td><td>5,000<\/td><td>&nbsp;<\/td><\/tr><tr><td>Interest expense<\/td><td>2,000<\/td><td>&nbsp;<\/td><\/tr><tr><td>Income tax expense<\/td><td>6,000<\/td><td>&nbsp;<\/td><\/tr><tr><td>Totals<\/td><td>$132,600<\/td><td>$132,600<\/td><\/tr><tr><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Required: Prepare closing entries for the company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Question 5<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Smith Inc.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank Reconciliation<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; July 31, 2017<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Balance per bank<\/td><td>&nbsp;<\/td><td>$3,359<\/td><td>Balance per book<\/td><td>$2,550<\/td><\/tr><tr><td>Add: deposit in transit<\/td><td>&nbsp;<\/td><td>817<\/td><td>NSF cheque J Brown<\/td><td>(300)<\/td><\/tr><tr><td>Deduct:&nbsp; Outstanding cheques #<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><td>Collected note receivable<\/td><td>408*<\/td><\/tr><tr><td>232<\/td><td>$1,061<\/td><td>&nbsp;<\/td><td>Bank fees<\/td><td>(18)<\/td><\/tr><tr><td>234<\/td><td>240<\/td><td>&nbsp;<\/td><td>Bookkeeper error<\/td><td>(9)<\/td><\/tr><tr><td>195<\/td><td>195<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>49<\/td><td>49<\/td><td>(1,545)<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>Balance<\/td><td>&nbsp;<\/td><td>$2,631<\/td><td>Balance<\/td><td>$ 2,631<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;(*) The collection included the original note of $380 and interest of $28. (**) The bookkeeper made an error recording a payment on account. They recorded the cheque, a payment on account for $1,590, the actual amount of the cheque was $1,599.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Required: Based on the completed Bank Reconciliation above, please record any required journal entries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Question 6&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Smith Company shows the following information on December 31, 2017, the company\u2019s fiscal year-end: Account&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Debit&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts receivable&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;$17,000<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Allowance for doubtful accounts&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 400<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;Sales ($5,000 of cash sales)&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; $75,000<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company\u2019s accountant generated the following aging schedule of accounts receivable:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Number of Days Outstanding&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amount Receivable&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated Uncollectible<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;0-30 days&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $10,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 1%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">31-60 days&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 4,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">61-90 days&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 2,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over 90 days&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 1,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Required:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">a.) Prepare the adjustment to allowance for doubtful accounts based on the information above.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">b.) Show how accounts receivable, net would be disclosed on the balance sheet.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">c.) What is the most likely cause of the allowance for doubtful accounts being in a debit balance?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">d.) On February 15, 2018, the company writes off a $300 account receivable from Marco Inc. Record the journal entry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Question 7&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Aberdeen Auto Mart uses a perpetual inventory system and reports the following transactions for the month of May for one of its products:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Date&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Explanation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Units&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost\/Price<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">August 1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning inventory&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $25.00<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;August 4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;20&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;28.00<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">August 15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sale&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;50&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;60.00<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">August 21&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 20&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;29.00<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">August 26&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;30.00<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">August 31&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sale&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;40&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;60.00<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;Required:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">a.) Prepare an inventory record using the weighted average method.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">b.) Prepare journal entry\/entries for August 31 sale<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>&nbsp;Question 8<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On June 30, 2017, ABC Company purchased a piece of equipment for $25,000. The equipment was expected to be useful for 5 years after which time it would be sold for $5,000. The company\u2019s accountant wishes to use double-declining balance depreciation. The company\u2019s fiscal year end is December 31.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;Required:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Compute depreciation expense for each year of the asset\u2019s life (2017, 2018, 2019, 2020, 2021, 2022). \u2013 No Journal Entries needed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Question 9&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On October 1, 2017, XYZ Company buys a new truck for $60,000 cash. The truck has an estimated useful life of 10 years and an estimated residual value of $10,000. The company\u2019s accountant wishes to use straight line depreciation. On July 1, 2019 the company sells the truck for $54,000 cash.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Required: Record all journal entries for the life of the truck.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Question 10&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On August 31, Year 7, DEF Company issues a $1,000,000 10-year 5% bond. The market rate of interest is 5.5%. The bond quote is 96.1932.&nbsp; The company\u2019s fiscal year end is July 31. The bond pays interest semi-annually on February 28, and August 31 each year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;Required:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">a.) Prepare a bond amortization table as outlined below for the first 2 years of the bond.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">b.) Record the journal entry for the issuance of the bond (August 31, Year&nbsp; 7)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">c.) Record the journal entry for the first semi-annual payment. (February 28, Year 8)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">d.) Record the journal entry for the year end adjustment. (July 31, Year 8)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">e.) Record the journal entry for the second semi-annual payment. (August 31, Year 8)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bond amortization table&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Assignment Task Question 1. The following account balances relate to the Desjardins Company\u2019s December 31, 2017 year-end financial statements: Retained earnings, Jan. 1, Year 7 $ 26,000 &nbsp; Cash 56,000 Income tax expense 24,000 &nbsp; Consulting revenue 250,000 Note payable 55,000 &nbsp; Repairs expense 10,000 Utilities expense 15,000 &nbsp; Supplies expense 14,000 Supplies 4,000 &nbsp; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1762","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Desjardins Company\u2019s Financial Statement Question Assignment - My Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/britainwriters.com\/answers\/desjardins-companys-financial-statement-question-assignment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Desjardins Company\u2019s Financial Statement Question Assignment - My Blog\" \/>\n<meta property=\"og:description\" content=\"Assignment Task Question 1. 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