Excel Answer Template for the Unit 5 IP Assignment

  Answer






Dec1Cash 60000
Common Stock 60000
2Property, Plant and Equipments 17500
 Cash 17500
2Prepaid Rent 18000
Cash 18000
3Office Supplies 1500
Accounts Payable 1500
10Prepaid Insurance 3600
Cash 3600
14Salaries and Wages Expenses 10750
Cash 10750
24Cash 54000
Commission Revenue 54000
28Salaries and Wages Expenses 12125
Cash 12125
29Repairs Expenses 350
Cash 350
30Utilities Expenses 450
Cash 450
30Dividends 3000
Cash 3000
 
   
   
   
   
   
   
   
Trap Adventures, Inc.
Unadjusted Trial Balance
December 31, 2015
Cash$ 48225
Office Supplies 1500
Prepaid Rent 18000
Prepaid Insurance 3600
Property, Plant and Equipments 17500
Accounts Payable1500
Common Stock$ 60000
Dividends 3000
Commission Revenue 54000
Salaries and Wages Expenses 22875
Utilities Expenses 450
 Repairs Expenses 350
 Totals$ 115500$ 115500
 
 
Dec31Insurance Expenses300
Prepaid Insurance300
31Rent Expenses3000
 Prepaid Rent3000
31Supplies Expenses900
Office Supplies900
31Depreciation Expenses325
Accumulated Depreciation325
31Salaries and Wages Expenses525
Salaries and Wages Payable525
   
   
   
   
   
   
   
Trap Adventures, Inc.
Adjusted Trial Balance
December 31, 2015
Cash$ 48225
Office Supplies 600
Prepaid Rent 15000
Prepaid Insurance 3300
Property, Plant and Equipments 17500
Accumulated Depreciation325
Accounts Payable1500
Salaries and Wages Payable525
Common Stock$ 60000
Dividends 3000
Commission Revenue 54000
Salaries and Wages Expenses 23400
Utilities Expenses 450
Repairs Expenses 350
Insurance Expenses 300
Rent Expenses 3000
Supplies Expenses 900
Depreciation Expenses 325
 Totals$ 116350$ 116350  
       
Trap Adventures, Inc. NOTE that there are THREE Statements included on this sheet.
Income Statement 
For the year ended December 31, 2015               
                
Revenue:                
Comission$ 54000                
Expenses                
Salaries and Wages Expenses 23400                
Utilities Expenses 450                
Repairs Expenses 350                
Insurance Expenses 300                
Rent Expenses 3000                
Supplies Expenses 900                
Depreciation Expenses 325                
Total Expenses 28725                
                
Net Income$ 25275                
                
                
                
                
                
Trap Adventures Inc,                
Statement of Equity                
For December 31                
                
                
Common StockRetained EarningsTotal                
Beginning balance000                
Introduced 60000$ 60000.00                
Net Income for year 25275$ 28725.00                
Dividends (3000)$ (3000.00)                
Balance at end$ 60000$ 22275$ 82275                
                     
                     
Trap Adventures Inc,                
Balance Sheet                
For December 31                
                
AssetsLiabilities                
Current AssetsCurrent Liabilities                
Cash$ 4822548225$ 48225                
Office Supplies$ 600600$ 600                
Prepaid Rent$ 15000Total current liabilities$ 15000                
Prepaid Insurance$ 3300Stockholder’s equity                
Total current assets$ 67125Common Stock60000                
Property, Plant and Equipments17500Retained Earnings$ 17500                
Accumulated Depreciation$ (325)Total stockholder’s equity$ 82275                
Total Assets$ 84300Total liabilities and stockholder’s equity$ 84300                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
Dec31Commission Revenue 54000
Income Summary 54000
Income Summary 27500
Salaries and Wages Expenses0
Utilities Expenses0
Repairs Expenses 23400
Insurance Expenses 450
Rent Expenses 350
31Supplies Expenses 300
 Depreciation Expenses 3000
31Income Summary25275
Retained earnings25275
Retained Earnings3000
  Dividends3000 
   
   
   
Trap Adventures, Inc. 
Post-Closing Trial Balance 
December 31, 2015 
Cash$ 48225
Office Supplies 600
Prepaid Rent 15000
Prepaid Insurance 3300
Property, Plant and Equipments 17500
Accumulated Depreciation325
Accounts Payable1500
Salaries and Wages Payable525
Common Stock$ 60000
Retained Earnings 22275
Totals$ 84625$ 84625
  
NOTE that this tab should be used for the writing portion of the Unit 5 IP Assignment.
Answer two of the questions below in 1-2 fully developed paragraphs.  A fully developed paragraph should have a major point with 3 to 5 support sentences. One or two sentences is not acceptable or does not discuss the question. Be sure to show what you know!!!
     
                      
1. Trap Adventures, Inc. is looking for an accountant.  In your own words, explain to Trap’s hiring team the role of accountant and accounting within business.                       
                     
Provide examples of the expectations of the accountant.                     
                      
                      
                      
                      
                      
2. Discuss the financial position of Trap Adventures, Inc using the following ratios:                
Current ratio67,125 / 2,025 = 33.1481         
Return on equity25,275 / 84,300 = 0.2998 = 29.98 %         
Company is in a better position to offset its current liabilities with its current assets available. The result shows that current assets of the said company are 33 times greater than its liabilities. The results are positive for Trap Adventures, Inc.         
                      
For each ratio, provide the calculation and an explanation of the meaning.          
Is this a positive or negative result for the Trap Adventures, Inc.?               
               
As the result is 29% which shows that company management is doing good job to generate profits by efficient use of stockholder’s equity. The results are positive for Trap Adventures, Inc.                     
                     
                 
                 
                  
3. Using Trap Adventures, Inc.’s income statement, evaluate the operations for the month of December.  Complete a common-size income statement using sales as the base number.                 
                 
What is the largest percentage?                  
What is the smallest percentage?                     
What recommendations could be made to increase Trap’s net income?                     
                     
Net profit of the company has the greatest percentage i.e. 47% of the total sale / revenue.               
However, Insurance expanse has the lowest percentage that is 0.56% of the sale / revenue.               
Moreover, net income of Trap Adventures, Inc can be increased by reducing the salaries and wages expenses which have the 2nd largest percentage in the common-size income statement.               
                
4. Currently, Trap Adventures, Inc. does not own any loans or bank notes (long-term liabilities).                      
                     
What would happen if Trap decides to obtain a bank loan for $25,000 to fund daily operations?                     
How would this transaction impact the financial statements – which accounts would be affected?                      
What is the debt to equity ratio?                      
What does the debt to equity ratio represent?                     
                     
                     





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Excel Answer Template for the Unit 5 IP Assignment.xlsx






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