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For Jane T (LLC)I need your help with this projectYou have

Resolved Question:

For Jane T (LLC)
I need your help with this project
You have accepted a job as the controller of a start-up company–a consulting firm, called Sheila Shaw Consulting. Sheila is an excellent consultant, but not a good accountant. She has attempted to prepare the first month’s financial statements, however, the statements do not balance. Her financial statements are a good starting point, but your job is to correct the errors.

The statements are presented here.

Sheila is grateful to have you on board as her controller, and you are eager to make a good impression on her by finding the errors in her statements. Download Sheila’s statements and make the changes to them. All the information you need to find the errors is contained in these statements.

Hint: There are 2 errors in the Balance Sheet, 1 error in the Income Statement, 1 error in the Statement of Owner’s Equity, and 2 errors in the Statement of Cash Flows. You will want to keep in mind all that you have learned in terms of the items on financial statements which are duplicated and flow from one statement to another.

Assignment Checklist:

1. Report 2 balance sheet errors

2. Produces 1 statement of owner’s equity errors

3. Report 2 errors on the statement of cash

4. Prepare corrected financial statements

Here is the information:

 

SHEILA SHAW CONSULTING

Balance Sheet

August 31, 2007

 

 

Assets Liabilities

Current assets: Current liabilities:

Cash................................ $ 21,300 Accounts payable........ $ 1,250

Accounts receivable....... 3,800 Prepaid rent................. 2,050

Supplies........................... 875 Unearned fees.............. 1,150

Salaries payable.............. 150 Total liabilities................ $ 4,450

Prepaid insurance.......... 1,670

Total current assets..... $ 27,795

Property, plant, and

equipment:...................... Owner's Equity

Office equipment............ $ 21,250 Sheila Shaw, capital....... 47,720

Less accum. depr............ 675

Total Property, plant,

and equipment............. 20,575 Total liabilities and

Total assets......................... $ 48,370 owner's equity............. $ 52,170

 

 


SHEILA SHAW CONSULTING

Income Statement

For the Month Ended August 31, 2007

 

 

Fees earned.................................................................................... $ 24,325

Expenses:

Salary expense....................................................................... $1,550

Rent expense.......................................................................... 1,200

Supplies expense.................................................................... 1,250

Insurance expense................................................................. 1,000

Miscellaneous expense.......................................................... 715

Interest expense..................................................................... 65

Bad Debt expense.................................................................. 150

Repairs and Maintenance.................................................... 200

Utilities expense..................................................................... 150

Payroll Tax expense.............................................................. 125

Office expense....................................................................... 525

 

Total expenses................................................................... 6,930

Net income..................................................................................... $ 17,395

 

 


SHEILA SHAW CONSULTING

Statement of Owner's Equity

For the Month Ended August 31, 2007

 

 

Sheila Shaw, capital, August 1, 2007........................................... $ 0

Additional investments during the month................................... 36,000

Total............................................................................................... $ 36,000

Net income for the month............................................................. $ 17,395

Less withdrawals........................................................................... 5,000

Increase in owner's equity............................................................ 12,395

Sheila Shaw, capital, August 31, 2007......................................... $ 48,395

 

 


SHEILA SHAW CONSULTING

Statement of Cash Flows

For the Month Ended August 31, 2007

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income for the month:................................................... $17,395

Adjustment for depreciation....................................... 675

Cash provided by operating activities................................. 18,070

(Increase) in working capital items

Accounts receivable.......................................................... (3,800)

Supplies.............................................................................. (875)

Prepaid expenses............................................................... 3,720

Accounts payable.............................................................. 1,250

Salaries payable................................................................. 150

Unearned fees.................................................................... 1,150

Cash flows from operating activities........................................... $18,990

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of office equipment........................................... (21,250)

Cash flows from investing activities............................................ $(21,250)

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

Advances from shareholder (net of withdrawals).............. 31,000

Cash flows from financing activities........................................... $31,000

 

Net increase in cash....................................................................... $28,740

 

CASH-BEGINNING OF PERIOD............................................. 0

 

CASH-END OF PERIOD............................................................ $21,300

 

Submitted: 7 years ago.
Category: Homework
Expert:  Jane T (LLC) replied 7 years ago.
<p>DearCustomer</p><p> </p><p>Because JA does not keep formating when you copy to it, the balance sheet is nearly impossible to understand.</p><p> </p><p>Can you present the assets and liabilities in singl columns only?</p><p> </p><p> </p>
Customer: replied 7 years ago.

Can I send you an email with the document attached?

Thanks

Expert:  Jane T (LLC) replied 7 years ago.

DearCustomer

 

JA does not permit experts to have e-mail communications with person who use JA. However, if you can e-mail the files then you can just post them onto the JA reply box.

 

Be sure that your tool bar is showing (if not just click "Show Toolbar") then type a word. HIghlight that word with your cursor and then click on the infinity symbol, just to the right of the smiley face on the tool bar, and use that to enter a link for the file). If the file you are linkin is in your PC then you can use the browse feature to link that file.

 

Customer: replied 7 years ago.

Balance Sheet

Assets

cash 21300

accounts receivables 3800

supplies 875

Prepaid insurance 1670

Total Current assets 27795

 

Property plant and equipment

Office equipment 21250

Less accum depr 675

Totla Property Plant 20575

 

Total assets 48370

 

 

Liabilities

Current liabilities

Accounts payable 1250

Prepaid rent 2050

Unearned fees 1150

Total Liabilities 4450

 

 

Owners's equity

Sheila Shaw capital 47720

 

Total libialities and

owner's equity 52170

 

 

I need this for tomorrow

 

Thanks

 

Expert:  Jane T (LLC) replied 7 years ago.

DearCustomer

 

I will need to opt out of this I am afraid.

 

 

Customer: replied 7 years ago.

Jane,

I am sorry, I don't understand.

 

Expert:  Jane T (LLC) replied 7 years ago.

DearCustomer

 

I mean I cannot help you with this question and have tried to have other experts see if they can assist.

 

 

Customer: replied 7 years ago.

Please,

Don't tell me that. I need help with this project.

What can I do.

Customer: replied 7 years ago.
Why you can't help me?
Customer: replied 7 years ago.

Jane,

Please tell me what is going on? is it something about the payment or what? If you can't help me please let me know if sombody else can do it.

Thanks

Expert:  Neo replied 7 years ago.
Good day!

I noticed that Ms. Jane Opted Out. When is your deadline?

Thank you so much! :)
Customer: replied 7 years ago.

Hi,

It was for yesterday, but I still have sometime to submit the project.

Thanks

Expert:  Neo replied 7 years ago.
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Category: Homework
Satisfied Customers: 12101
Experience: BS Accounting
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Customer: replied 7 years ago.

Neo,

Thanks a lot.

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