HFT 2401 Accounting for the Hospitality Industry Project For FAll 2023 semester
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HFT 2401 Accounting for the Hospitality Industry
Project For FAll 2023 semester
Note: 1. The Project must be submitted in this form and should be handwritten. 2. You should prepare a cover for the project with the name and Panther ID on it. 3. The project will due on Oct. 1, 2023 |
Information:
At the current month of operations, the Smart Touch Learning (STL) INC. has the following transactions:
Transaction |
Description of transactions |
1 |
December 1: STL received $2,860,000 cash from Lisa Taylor and issued common stock. |
2 |
December 1: STL received $1,700,000 in cash from Sheena Bright and issued common stock. |
3 |
December 1: STL purchased a building and the land it is on for $1,200,000, to house its repair facilities and to store computer equipment. The land which the building is located is valued at $800,000. The balance of the cost is to be allocated to the building. |
4 |
December 2: A down payment of $30,100 in cash was made on office furniture that was purchased for $120,000. A one-year, 9% note payable was executed by STL for the balance. |
5 |
December 3: A one-year insurance was purchased by STL for $2,800 in cash. Put the total amount into the Prepaid Insurance account. |
6 |
December 4: Office supplies costing $800 was purchased in cash. |
7 |
December 6: STL purchase of $10,500 worth of computers on account from Sanders LTD, terms of 3/10, n/30. STL also pays a $200 freight charge. Paid salaries $11,200 to employees for the week ending December 5. |
8 |
December 10: STL sold 5 computers for $600 each, making a $3,000 sale on account with terms of 2/10, n/30. The goods cost $ 2,200. |
9 |
December 11: Received a bill of $390 from the local newspaper for advertising. Returned 2 computers valued at a total of $700 to Sanders LTD. |
10 |
December 13: Paid Sanders LTD, less return. Paid salaries $11,200 to employees for the week ending December 12. |
11 |
December 20: A customer returned one computer purchased on account with a sales price of $500. The cost of the goods was $350. |
12 |
December 22: Paid salaries $11,200 to employees for the week ending December 19. |
13 |
December 22: Paid the advertising bill that was received on December 11. |
14 |
December 23: Cash in the amount of $19,500 was received on computer consultation service provided. |
15 |
December 25: Purchased office supplies for $1,140 on account. |
16 |
December 28: Billed $6,700 to customers for services performed to December 25. |
17 |
December 30: Received a utility bill for the amount of $290 from Ward Oil and Gas Co. |
18 |
December 31: Paid a cash dividend of $3,800 to stockholder, Lisa Taylor ; Paid a cash dividend of $2,160 to stockholder, Sheena Bright. |
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Adjusting Entries |
19 |
A physical inventory showed that only $650 worth of office supplies remained on hand as of December 31. |
20 |
The insurance payment made on December 3 was for next one year. Expense the amount associated with one month's insurance. |
21 |
The office furniture that was purchased with note payable. Record the accrued interest expense associated with one month’s interest. |
22 |
A review of STL worksheets shows that there are uncollectible receivable in the amount of $370 for the period of December. Applying the allowance method to account for uncollectible. |
23 |
Each Monday, STL pays employees for the previous week’s work. The amount of weekly payroll is $11,200 for a seven-day workweek ((Monday to Sunday).This year, December 31 falls on Friday. |
24 |
The fixed assets have estimated useful lives as follows: |
Building - 60 years |
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Office Furniture - 15 years |
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Use the straight-line method of depreciation. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The building’s residual value is $0. The office equipment has a scrap value of $300. |
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Closing Entries |
25 |
Close the revenue accounts. |
26 |
Close the expense accounts. |
27 |
Close the income summary account. |
28 |
Close the dividends account. |
Instruction:
(1) Record each transaction in the journal. Explanations are not required.
GENERAL JOURNAL |
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Date |
Account Titles and Explanations |
Ref. |
Debit |
Credit |
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Dec. |
1 |
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(2) Journalize the adjusting entries on December 31.
STL INC. Work Sheet For the Month of December 31 |
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Account Titles |
Trial Balance |
Adjustment |
Adjusted Trial Balance |
Income Statement |
Balance Sheet |
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Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
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(3) Prepare an Income Statement and a Retained Earnings Statement for the month, and a classified Balance Sheet.
STL INC. Income Statement For the Month of December 31 |
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STL INC. Retained Earnings Statement For the Month of December 31 |
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STL INC. Balance Sheet December 31 |
Assets
Liabilities and Stockholders’ Equity |
(4) Prepare the adjusting entries for the month.
GENERAL JOURNAL |
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Date |
Account Titles and Explanation |
Ref. |
Debit |
Credit |
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Adjusting entries |
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(5) Prepare the closing entries for the month.
GENERAL JOURNAL |
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Date |
Account Titles and Explanation |
Ref. |
Debit |
Credit |
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Closing entries |
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(6) Prepare a post-closing trial balance for the month (Assume all the adjusting entries and closing entries have been posted).
STL INC. Post-closing Trial Balance December 31 |
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Account Title |
Debit |
Credit |
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Total |
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2023-09-23