Accounting Homework Help
Intermediate Accounting Mini-Project #1:
CLIENT PROFILE: Daphne Design, Inc. is a local retail store that sells home furnishings and interior design consulting services. The business sells a wide range of products, including furniture, art, and home décor. Daphne Design, Inc. is a privately held corporation and has one shareholder – Daphne Smith. The company began operations on March 1, 2018, and Ms. Smith has been completing all bookkeeping, accounting and payroll services herself. Daphne first met with your supervisor on September 25, 2018, to inquire about accounting services. As her first business tax year was coming to a close she felt it was important to meet with an accountant. She was not exactly sure what services Johnson Accounting Firm could offer, or what help she needs, but your supervisor conducted a client interview and was able to provide some advice. Johnson Accounting has recommended monthly compilation services (using accrual accounting), payroll and sales tax consultation, and corporate and individual tax return preparation.
ASSIGNMENT: You have been assigned the task of assisting Daphne Design’s in completing appropriate financial statements for the 2018 year. Remember that Daphne was performing her own accounting work through the end of September. Your first task is to correct Ms. Smith’s trial balance as of December 31, 2018.
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Below is the trial balance Daphne’s Design submitted:
|Cost of Goods Sold||22,000|
|Paid in Capital in Excess of Par||74,000|
Once you have corrected the Trial Balance, you need to journalize the closing entries for Daphne Designs and then prepare the Income Statement, Statement of Retained Earnings and the Balance Sheet. You must also calculate the Gross Profit %, Return on Sales, the Current Ratio and the Debt Ratio.
*Adapted from Chegg.com .Accounting Homework Help