GCU Develop a Trial Balance for Page Business Solutions Incorporated Excel Task

This will be what is required

Required

1. Complete journal entries for each of the transactions. The numbers in the journal entries can be rounded to the nearest dollar. Please record the journal entries using the numbers NOT the dates!

2. Develop a trial balance for Page Business Solutions Incorporated as of March 31, 2023.

3. Develop a single income statement representing January through March in good form for Page Business Solutions Incorporated for the first three months of 2023. Federal Income Tax Rate is 21%.

4. Develop a single statement of retained earnings in good form as of March 31, 2023 for Page Business Solutions Incorporated.

5. Develop a balance sheet in good form as of March 31, 2023 for Page Business Solutions Incorporated.

6. Provide one comment based on your analysis after you complete the financial statements to Page Business Solutions Incorporated.

Jonathan Page- Page Business Solutions Incorporated (PBSI)
Jonathan Page was a very inquisitive child growing up. He was a great student in school
and always asked a lot of questions. While growing up he was a typical American guy
and enjoyed soccer and golf. But once Jonathan was given a computer for his 12th
birthday he fascinated with electronics. He like everyone else enjoyed playing on the
computer but his curiosity went a little further. He opened up his computer to see how it
actually worked. He opened up his laptop, computer and cellphone to see how the
electronics worked on the inside. His parents were frustrated at first, but when they saw
his interest was in how they worked and not just being mischievous, they encouraged him
in electronics.
Jonathan enrolled in a computer class in high school and became certified in Microsoft
Office. During his summers while he was in high school, He worked for a local computer
store in the small town they lived near. While he was just the receptionist and provided
customer service, when it was slow the owner would teach him about how a computer
worked. When it came time to apply for college, He knew what he wanted to major in
computer science at the University of Maryland. His long term desire was to own his own
computer consulting business and help clients set up their computer networks and all
their computer needs.
After earning undergraduate degree, Jonathan got a job a local bank as an IT
troubleshooter. He learn a lot but still wanted to own his own business. So after five years
at the local bank, He began his own computer consulting business. While doing computer
consulting for the past five years has been successful, many of the company’s clients
wanted to purchase the computer equipment from the business as well. So recently PBSI
has begun offering computer equipment as well as consulting services. So now the
company offers computer consulting and computer equipment to small businesses. (Hintremember you will record these two revenues differently because one is a service and one
is merchandise!)
After several years of running a successful small business PBSI has the following balance
sheet shown below. Jonathan did not get an MBA so he does not know how to do that
much accounting. He has found out that you recently graduated with your MBA. He
believes that you have enough experience to help him with his accounting for a few
months.
The Page Business Solutions Incorporated had the following balance sheet as of
December 31, 2022. The transactions for the first three months of 2023 are also
presented along with other information about specific accounts.
Page Business Solutions Incorporated
Balance Sheet
December 31, 2022
ASSETS
Cash
Marketable Securities
Accounts Receivable
All. Uncoll. Accounts
Inventory
Supplies
Prepaid Insurance
Total Current Assets
$116,250
20,000
83,000
-4,000
84,000
5,000
9,000
$262,500
Land
Equipment
Accum. Depreciation-Eq
Building
Accum. Depreciation-Bl.
Intangible Assets
Total Long-Term Assets
$111,500
217,000
-97,000
590,000
-110,000
60,000
$771,500
Total Assets
1,084,750
LIABILITIES
Accounts Payable
Wages Payable
Taxes Payable
Short-Term Note Payable
Interest Payable
Unearned Revenue
Unearned Consulting Rev.
Total Current Liabilities
$ 40,000
10,800
7,200
70,000
8750
30,000
20,000
$ 186,750
Long-Term Notes Payable
Bonds Payable
Mortgage Payable
Total Long-Term Liabilities
Total Liabilities
STOCKHOLDER EQUITY
Common Stock
Paid in Capital-CS
Retained Earnings
Total Stockholders Equity
Total Liabilities & Equity
$ 50,000
100,000
350,000
$500,000
686,750
$200,000
38,000
160,000
$398,000
1,084,750
Additional Information
Accounts Receivable
The following table indicates the historical breakout of accounts receivable
Days
Percent of Balance
Percent Collectible
Current
50%
95%
30 to 60
30%
90%
60 to 90
15%
80%
The company uses the gross method of recording all sales on accounts.
Over 90
5%
60%
Marketable Securities
The interest rate earned on marketable securities is 8.0%.
Inventory
In 202x, the company had used the gross method to record inventory purchases on
account.
Prepaid Insurance
A three-year insurance policy in the amount of $10,800 was purchased on July 1, 2022.
Equipment
Equipment is depreciated at an average amount of $4,000 per month.
Building
The current building was purchased on January 1, ten years ago and has an expected 40year life at which time its salvage value will be $40,000.
Intangible Assets
Intangible assets were initially valued at $60,000 and are being depreciated over 30 years
at $2,000 per year.
Short-Term Notes Payable
The one-year short-term note payable is due on March 1, 2023. The interest rate is
15.0% which is payable at maturity.
Long-Term Notes Payable
The long-term notes payable are due in ten years. The interest rate on the notes is 6.0%.
Bonds Payable
The bonds payable mature in twenty years. The interest rate on the bonds is 10.0%.
Mortgage Payable
The following amortization schedule can be used for the January, 2023 mortgage
payment on the 5.0%, 30- year mortgage.
Month
Payment
Interest
Principal
January
February
March
$2,500
$2,500
$2,500
$1,437
$1,417
$1,397
$1,063
$1,083
$1,103
Balance
$350,000
$348,937
$347,854
$346,751
Capital Stock
The capital stock is common stock at $10 par value with 50,000 shares authorized, and
20,000 shares issued and outstanding.
Journal Entries
(1) Jan 1 Jonathan invested $60,000 cash into the business by purchasing 5,000 share of
capital stock at $10.00 par value.
(2) Jan 2 The Company borrowed $50,000 on a short-term 90 day, 14.0% note payable.
(3) Jan 3 The Company paid $36,000 in advance for the 12 month rental of a warehouse.
(4) Jan 5 PBSI’s Board of Directors declared a dividend of $.50 cents per share payable
on February 10, 2023 to all shareholders of record on January 20, 2023.
(5) Jan 6 The amount in wages payable and taxes payable was paid in full.
(6) Jan 8 The Company paid a total of $25,000 on accounts payable less the 2% in
purchase discounts for early payment.
(7) Jan 15 Cash sales for two weeks equaled $45,000. The cost of inventory sold equaled
$28,000. Please use Sales Revenue.
(8) Jan 18 Consulting services revenue during the first two weeks was $15,000 cash.
Please use Consulting Service Revenue.
(9) Jan 20 Supplies in the amount of $5,000 were purchased for cash.
(10) Jan 21 A customer who owed $30,000 on an account receivable, agreed to sign a 60day note receivable with an interest rate of 12.0%. The interest earned on the note will be
paid at the maturity date of the note receivable.
(11) Jan 29 The balance of $20,000 in accounts payable was paid after the discount
period.
(12) Jan 30 The Company purchased $65,000 of inventory on account with the terms
2/10, net 30.
(13) Jan 30 The Company paid freight charges of $3,500 on the inventory purchase.
(14) Jan 31 Cash sales for two weeks equaled $43,800. The cost of inventory sold
equaled $25,000.
(15) Jan 31 Sales on account for the month of January totaled $86,000 with the terms
2/10, net 30. The cost of inventory sold equaled $48,000.
(16) Jan 31 The unearned revenue represented the rental of special equipment that was
used by another company on weekends and $10,000 of the revenue was earned in
January.
(17) Jan 31 Collected $40,000 from an accounts receivable, and there was a sales
discount for the payment of receivables within the ten day discount period.
(18) Jan 31 Salary expenses in the amount of $15,000 and tax expenses in the amount of
$8,000 were paid.
(19) Jan 31 The Company paid property taxes bill of $10.500.
(20) Jan 31 A bill in the amount of $3,500 for advertising expenses incurred during the
month of January was received (use advertising payable).
(21) Jan 31 The monthly payment for January of the mortgage payable was made-(see
table.)
(22) Jan 31 Consulting services on account for the month were $35,000. Included in this
amount was $20,000 advanced payment previously received in the unearned consulting
revenue account.
(23) Jan 31 In order to make a sale the company paid $1,200 to have goods shipped to a
customer.
(24) Feb 1 The Company made a new issue of 10,000 shares of $10.00 par value common
stock for cash. The market price of the stock was $25 per share.
(25) Feb 2 A petty cash fund in the amount of $1,000 was established.
(26) Feb 3 The Company bought back 2,000 shares of its own common stock for $20 per
share and reports the purchase as treasury stock.
(27) Feb 8 The purchase of inventory on account on Jan 30th which was reported at the
gross amount was paid in full less the discount.
(28) Feb 10 The dividend declared on January 5th was paid.
(29) Feb 15 Cash sales for two weeks equaled $44,000. The cost of inventory sold
equaled $20,500.
(30) Feb 15 Consulting services for cash for two weeks was $38,000.
(31) Feb 20 The Company purchases $50,000 of inventory on account with the terms
2/10, net 30.
(32) Feb 20 The Company paid freight charges of $3,500 for the inventory purchase.
(33) Feb 27 The Company paid an advertising bill for $7,500 which included the
February advertising expense of $4,000 plus the balance due from January.
(34) Feb 28 Cash sales for two weeks equaled $55,000. The cost of inventory sold
equaled $28,000.
(35) Feb 28 Consulting services for the on credit for the two weeks totaled $29,000.
(36) Feb 28 The monthly payment for February of the mortgage payable was made-(see
table.)
(37) Feb 28 The Company collected on an accounts receivables for $80,000 less a total
sales discount for the payment of receivables within the ten day discount period.
(38) Feb 28 Salary expenses in the amount of $18,000 and tax expenses in the amount of
$9,000 were paid.
(39) Feb 28 The Company paid a repair bill of $5,800.
(40) Feb 28 Sales on account for the month of February totaled $90,000 with the terms
2/10, net 30. The cost of inventory sold equaled $55,800.
(41) Feb 28 A customer complained that some of the goods they received were damaged.
So PBSI gave them an allowance of $5,800 to keep the customer satisfied.
(42) Mar 1 The short-term note payable of $70,000 that was due on March 1st plus all
appropriate interest was paid.
(43) Mar 3 The amount of the petty cash fund was increased by $700.
(44) Mar 10 Supplies in the amount of $9,800 were purchased on account.
(45) Mar 15 Cash sales for two weeks equaled $28,000. The cost of inventory sold
equaled $13,500.
(46) Mar 15 The consulting service revenue for cash for two weeks totaled $35,000.
(47) Mar 20 The Company reissued 1000 shares of its own treasury stock for $35 per
share.
(48) Mar 21 The note receivable from January 21st had been paid in full plus interest.
(49) Mar 25 The Company purchased $60,000 of inventory on account using the gross
method with the terms 2/10, net 30.
(50) Mar 28 The purchase of inventory on account on February 20th was paid in full.
(51) Mar 29 The petty cash fund had $400 in cash and receipts in total amounts for the
following expense categories: entertainment-$240, travel- $365, miscellaneous-$90,
postage $290, and supplies $280. The petty cash fund was replenished.
(52) Mar 30 Cash sales for two weeks equaled $40,000. The cost of inventory sold
equaled $24,500.
(53) Mar 30 The unearned revenue represented the rental of special equipment that was
used by another company on weekends. The $20,000 of the revenue was earned in
February and March.
(54) Mar 31 Sales on account for the month of March totaled $95,000 with the terms
2/10, net 30. The cost of inventory sold equaled $55,000.
(55) Mar 31 The Company paid legal fees of $4,500.
(56) Mar 31 Collected $80,000 from an accounts receivable less a total sales discount of
for the payment of receivables within the ten day discount period.
(57) Mar 31 Consulting revenue on credit for the month totaled $23,000.
(58) Mar 31 The company returned $8,000 of inventory that we purchased earlier in the
month.
(59) Mar 31 A warehouse building was acquired for $525,000. Closing costs on the
acquisition equaled $9,500, and there were costs of $29,900 to get the building into an
operational condition to be used by the company. The company paid $50,000 in cash as a
down payment with the balance due being added to the mortgage payable account.
(60) Mar 31 The wrote off a customer’s account because the company went bankrupt.
The account receivable was for $10,500.
(61) Mar 31 The Company repaid the 90 day note payable from January 2nd in full plus
interest.
(62) Mar 31 A customer sent an advance payment of $21,000 for the use of special
equipment in April and May and June.
(63) Mar 31 A customer returned $6,000 of merchandise in good condition. The cost of
the merchandise as $2,900.
(64) Mar 31 The Company reimbursed management for mileage for the quarter a total of
$6,500. Please use mileage expense account.
(65) Mar 31 Equipment with a historical cost of $35,000 and an accumulated depreciation
of $20,000 was sold for $21,000 cash. (Hint-first update the depreciation for the 3
months-January through March which was $500)
(66) Mar 31 Equipment with a historical cost of $28,000 and an accumulated depreciation
of $25,000 was disposed of with an additional disposal cost of $1,200. (Hint-first update
the depreciation for the 3 months-January through March which was $500.)
(67) Mar 31 The monthly payment for March of the mortgage payable was made-(see
table.)
Record these adjusting entries for the quarter so Financial Statements are correct!
A1-Mar 31 The equipment depreciation entry for the three months of 202x was
completed.
A2 Mar 31 The depreciation entry for the building for the months of January, February,
and March was entered.
A3 Mar 31 The amortization of intangible assets for the three months of 202x was
completed.
A4 Mar 31 The bad debt expense based on 1.50 % of credit sales for the quarter was
recorded.
A5 Mar 31 Salary expenses incurred during the month of March but not yet paid equaled
$18,500
A6 Mar 31 Tax expenses incurred during the month of March but not yet paid equaled
$9,900.
A7 Mar 31 A physical inventory of supplies indicated a total amount of $3,000 of
supplies still on hand. A journal entry was completed for the supplies used during the
quarter.
A8 Mar 31 The amount of rent expense for the warehouse for the first three months of
202x was recognized.
A9 Mar 31 The Company provided services to a customer in the amount of $20,000
during March but a bill has not been sent.
A10 Mar 31 The amount of insurance expense for the first three months of 202x was
recognized.
A11 Mar 31 The amount of interest earned on marketable securities for the three months
of 202x was recognized.
A12 Mar 31 The amount of interest expense for the total long-term notes payable for the
first three months of 202x was recognized.
A13 Mar 31 The amount of interest expense for the bonds payable for the three months of
202x was recognized.
Required
1. Complete journal entries for each of the transactions. The numbers in the
journal entries can be rounded to the nearest dollar. Please record the journal
entries using the numbers NOT the dates!
2. Develop a trial balance for Page Business Solutions Incorporated as of March
31, 2023.
3. Develop a single income statement representing January through March in good
form for Page Business Solutions Incorporated for the first three months of
2023. Federal Income Tax Rate is 21%.
3. Develop a single statement of retained earnings in good form as of March 31,
2023 for Page Business Solutions Incorporated.
4. Develop a balance sheet in good form as of March 31, 2023 for Page Business
Solutions Incorporated.
5. Provide one comment based on your analysis after you complete the financial
statements to Page Business Solutions Incorporated. Do not forget to include a
ratio to support your comment, recommendation or analysis!