Brian Buckley

October 25, 2017

Accounting Cycle Project

Alpine Semiconductors

Beginning Balances:
Cash: $10,000
Inventory: $30,000
Common Stock: $40,000
Retained Earnings: $5,000
Equipment: $5,000

Business Transaction Descriptions:

1. Nov 1, the company receives $20,000 from stockholders for common stock.
2. Nov 1, the company pays $3,000 in cash for the next 3 months rent on its
warehouse and headquarters.
3. Nov 1, Alpine borrows $9,000 from a bank on a 2-year, 10% annual interest-
bearing note.
4. Nov 1, the company Alpine purchases a one year insurance policy for $1,200.
5. Nov 3, Alpine sold merchandise for $5,000 cash. The cost of good sold was
$1,500.
6. Nov 4, Alpine purchased $3,000 worth of supplies on account.
7. Nov 5, Alpine purchased a $6,000 piece of equipment with cash.
8. Nov 6, Alpine sold $10,000 of credit card chips, half in cash and the other half
on account. The cost of goods sold was $3,000.
9. Nov 9, Alpine received $8,000 in advance from MasterCard for merchandise
not yet delivered.
10. Nov 10, Alpine collected the $5,000 accounts receivable from the Nov 6 sale.
11. Nov 12, Alpine paid the $3,000 for supplies purchased on account on Nov 4.
12. Nov 12, after another round of investments, Alpine receives $8,000 in cash
for common stock.
13. Nov 15, Alpine buys $4,000 of merchandise on account.
14. Nov 16, Alpine sells $8,000 of credit card chips to American Express on
account. The cost of goods sold was $2,300.
15. Nov 17, Alpine pays wages and salaries for the last two weeks at a cost of
$10,000.
16. Nov 20, Alpine pays a $1,000 dividend to shareholders.
17. Nov 21, Alpine buys a delivery truck worth $15,000. $10,000 was in cash and
remaining $5,000 was on account.
18. Nov 23, the company sells $9,000 of credit card chips to Discover card for
cash. The cost of goods sold was $2,500
19. Nov 25, Alpine paid $2,000 for advertising that was already preformed.
20. Nov 29, Alpine sold $6,000 chips to Visa for cash. The cost of good sold was
$2,000
Adjusting Entries

21. A physical count of inventory at the end of the month shows that $2,000
worth of supplies are still on hand.
22. Half of the chips owed to MasterCard are delivered. The cost of goods sold
was $800
23. One month of interest was accrued on notes payable.
24. One month of prepaid rent was used up.
25. Depreciation for the month totaled $900
26. One month of prepaid insurance was used up.
27. By the end of the month Alpine had accrued $4,000 in salaries and wages that
had not been paid yet.