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Help.? The first doc is my work.? The second doc is the directions


Date

 

10/1/2012

 

Date

 

10/1/2012

 

Date

 

10/2/2012

 

Date

 

10/3/2012

 

Date

 


 

10/15/2012

 


 

Date

 

10/30/2012

 

Date

 

10/30/2012

 

Date

 

10/30/2012

 

Date

 


 

10/31/2012

 


 

10/31/2012

 


 

Date

 

11/1/2012

 

Date

 

11/1/2012

 

Date

 

11/1/2012

 

Date

 

11/3/2012

 

Date

 


 

11/15/2012

 


 

Date

 

11/16/2012

 

Date

 

11/17/2012

 

Date

 

11/17/2012

 

Date

 


 

11/25/2012

 


 

Date

 


 

11/30/2012

 

Date

 

11/30/2012

 

Date

 

11/30/2012

 

Date

 


 

11/30/2012

 


 

Date

 

12/1/2012

 

Date

 

12/1/2012

 

Date

 

12/1/2012

 

Date

 

12/1/2012

 

Date

 


 

12/1/2012

 


 

12/1/2012

 


 

Date

 

12/15/2012

 

Date

 

12/15/2012

 

Date

 

12/16/2012

 

Date

 

12/31/2012

 

Date

 

12/31/2012

 

Date

 


 

12/31/2012

 


 

Date

 

12/31/2012

 

Date

 

12/31/2012

 

Date

 


 

12/31/2012

 

Date

 

12/31/2012

 

Date

 

12/31/2012

 

Date

 

12/31/2012

 

Date

 

12/31/2012

 


 

Account

 

Cash

 

Common Stock

 

APIC Common Stock

 

Issued 100,000 share of $5 par common stock for $7

 

Account

 

Cash

 

Preferred Stock

 

APIC Preferred Stock

 

Issued 10,000 share of $1 par 10% preferred stock for $10

 

Account

 

Inventory

 

Accounts Payable

 

Purchased 200 units of inventory on account at $20 per unit

 

Account

 

Machinery

 

Cash

 

Machinery Payable

 

Purchased machinery with cash and the rest on account

 

Account

 

Cash

 

Sales

 

Sold 50 units of inventory bought at $20 and sold at $30

 

Cost of goods sold

 

Inventory

 

Sold 50 units of inventory bought at $20 and sold at $30

 

Account

 

Rent Expense

 

Cash

 

Paid for October's rent on building

 

Account

 

Accounts Payable

 

Cash

 

Paid for portion due of accounts payable

 

Account

 

Machinery Payable

 

Cash

 

Paid for portion due of machinery payable

 

Account

 

Wages and Salaries Expense

 

Federal Income Tax Payable

 

State Income Tax Payable

 

Local Income Tax Payable

 

Social Security Tax Payable

 

Medicare Tax Payable

 

Cash

 

Paid for employees' portion of taxes as well as paycheck for the month of October

 

Payroll Tax Expense

 


 

Social Security Tax Payable

 

Medicare Tax Payable

 

FUTA Tax Payable

 

SUTA Tax Payable

 

Paid for company's taxes on employees for the month of October

 

Account

 

Inventory

 

Cash

 

Purchased 200 units of inventory at $25 per unit

 

Account

 

Investment in available for sale investments

 

Cash

 

Purchased 100 shares in Company A for $50 per share and 500 shares in Company B for $90 per share

 

Account

 

Investment in held to maturtity securities

 

Cash

 

Purchased with cash 20 bonds with $1000 par value 10% bonds

 

Account

 

Office Supplies

 

Cash

 

Paid for office supplies with cash

 

Account

 

Cash

 

Sales

 

Sold 100 units of inventory at $32

 

Cost of goods sold

 

Inventory

 

Sold 100 units of inventory bought at $20 and sold at $32

 

Account

 

Treasury Stock

 

Cash

 

Reaquired 20,000 shares for a price of $10 per share

 

Account

 

Common Stock Dividend

 

Common Stock Dividend Payable

 

Declared common stock dividend payable on Dec. 15th for those owning stock on Dec. 1st

 

Account

 

Preferred Stock Dividend

 

Preferred Stock Dividend Payable

 

Declared preferred stock dividend payable on Dec. 15th to those owning stock on Dec. 1st

 

Account

 

Cash

 

Sales

 

Sold 100 units of inventory at $32

 

Cost of goods sold

 

Inventory

 

Sold 50 units of inventory bought at $20 and 50 units bought at $25; all 100 units sold at $32 per unit

 

Account

 


 

Rent Expense

 

Cash

 

Paid for November's rent in cash

 

Account

 

Accounts Payable

 

Cash

 

Paid for remaining portion of accounts payable due

 

Account

 

Machinery Payable

 

Cash

 

Paid for current portion due of machinery purchased on account

 

Account

 

Wages and Salaries Expense

 

Federal Income Tax Payable

 

State Income Tax Payable

 

Local Income Tax Payable

 

Social Security Tax Payable

 

Medicare Tax Payable

 

Cash

 

Paid for employees' portion of taxes as well as paycheck for the month of November

 

Payroll Tax Expense

 

Social Security Tax Payable

 

Medicare Tax Payable

 

FUTA Tax Payable

 

SUTA Tax Payable

 

Paid for company's taxes on employees for the month of November

 

Account

 

Inventory

 

Cash

 

Purchased 200 units of inventory on account at $25 per unit

 

Account

 

Delivery Truck

 

Truck Payable

 

Purchased a truck on account

 

Account

 

Cash

 

Investment in Available for sale securities

 

Gain on available for sale securities

 

Sold 50 shares for $75 for Company A

 

Account

 

Cash

 

Loss on available for sale securities

 

Investment in Available for sale securities

 

Sold 50 shares for $85 for Company B

 

Account

 

Accounts Receivable

 

Sales

 

Sold 200 units of inventory at $32

 


 

Cost of goods sold

 

Inventory

 

Sold 200 units of inventory at $32; purchased at $25

 

Account

 

Common Stock dividend payable

 

Cash

 

Record of dividend paid; declared on 11/17/12

 

Account

 

Preferred Stock dividend payable

 

Cash

 

Record of dividend paid; declared on 11/17/12

 

Account

 

Cash

 

Treasury Stock

 

Additional Paid in Capital- Treasury Stock

 

Resold 10,000 shares of treasury stock for a price of $12 per share

 

Account

 

Rent Expense

 

Cash

 

Paid for December's rent in cash

 

Account

 

Machinery Payable

 

Cash

 

Paid for current portion due of machinery purchased on account

 

Account

 

Wages and Salaries Expense

 

Federal Income Tax Payable

 

State Income Tax Payable

 

Local Income Tax Payable

 

Social Security Tax Payable

 

Medicare Tax Payable

 

Cash

 

Paid for employees' portion of taxes as well as paycheck for the month of December

 

Payroll Tax Expense

 

Social Security Tax Payable

 

Medicare Tax Payable

 

FUTA Tax Payable

 

SUTA Tax Payable

 

Paid for company's taxes on employees for the month of December

 

Account

 

Depreciation Expense

 

Accumulated Depreciation-Delivery Truck

 

Record of depreciation on truck for 10,000 miles driven

 

Account

 

Depreciation Expense

 

Accumulated Depreciation-Machinery

 

Record of depreciation for machinery used for 3 months

 

Account

 


 

Cash

 

Interest Revenue

 

Record of paid interest on 20 bonds with $1000 par value 10% bonds

 

Account

 

Supplies Expense

 

Office Supplies

 

Record use of supplies

 

Account

 

Bad Debt Expense

 

Allowance for Uncollectible Accounts

 

Record 2% of accounts that are uncollectible

 

Account

 

Fair Value Adjustment (Available for sale securities)

 

Unrealized Gain on available for sale securities

 

Record of change in FMV for available for sale securities (Company A)

 

Account

 

Fair Value Adjustment (Available for sale securities)

 

Unrealized Loss on available for sale securities

 

Record of change in FMV for available for sale securities (Company B)

 


 

DR

 

CR

 

700,000

 

500,000

 

200,000

 

DR

 

CR

 

100,000

 

10,000

 

90,000

 

DR

 


 

CR

 

4,000

 

4,000

 


 

DR

 

CR

 

500,000

 

200,000

 

300,000

 

DR

 


 

CR

 

1,500

 

1,500

 

1,000

 

1,000

 


 

DR

 


 

CR

 

1,000

 

1,000

 


 

DR

 


 

CR

 

2,000

 

2,000

 


 

DR

 


 

CR

 

2,500

 

2,500

 


 

DR

 

CR

 

6,666.67

 

1,000.00

 

204.67

 

66.67

 

413.33

 

96.67

 

4,885.33

 

923.33

 


 

413.33

 

96.67

 

53.33

 

360.00

 

DR

 


 

CR

 

5,000

 

5,000

 


 

DR

 


 

CR

 

50,000

 

50,000

 


 

DR

 


 

CR

 

20,000

 

20,000

 


 

DR

 


 

CR

 

1,000

 

1,000

 


 

DR

 


 

CR

 

3,200

 

3,200

 

2,000

 

2,000

 


 

DR

 

CR

 

200,000

 

200,000

 

DR

 


 

CR

 

8,000

 

8,000

 


 

DR

 


 

CR

 

1,000

 

1,000

 


 

DR

 


 

CR

 

3,200

 

3,200

 

2,250

 

2,250

 


 

DR

 


 

CR

 


 

1,000

 

1,000

 

DR

 


 

CR

 

2,000

 

2,000

 


 

DR

 


 

CR

 

2,500

 

2,500

 


 

DR

 

CR

 

6,666.67

 

1,000.00

 

204.67

 

66.67

 

413.33

 

96.67

 

4,885.33

 

923.33

 

413.33

 

96.67

 

53.33

 

360.00

 

DR

 


 

CR

 

5,000

 

5,000

 


 

DR

 


 

CR

 

50,000

 

50,000

 


 

DR

 


 

CR

 

3,750

 

2,500

 

1,250

 


 

DR

 


 

CR

 

4,250

 

250

 

4,500

 


 

DR

 


 

CR

 

6400

 

6400

 


 

5000

 

5000

 

DR

 


 

CR

 

8,000

 

8,000

 


 

DR

 


 

CR

 

1,000

 

1,000

 


 

DR

 

CR

 

120,000

 

100,000

 

20,000

 

DR

 


 

CR

 

1,000

 

1,000

 


 

DR

 


 

CR

 

2,500

 

2,500

 


 

DR

 

CR

 

6,666.67

 

1,000.00

 

204.67

 

66.67

 

413.33

 

96.67

 

4,885.33

 

923.33

 

413.33

 

96.67

 

53.33

 

360.00

 

DR

 


 

CR

 


 

Cost = $50,000; Estimated useful life 120,000 miles, residual value $5,000. Will use units

 

of production method

 

3,750 Year 1

 

3750

 


 

DR

 

CR

 

25,000.00

 


 

Double De

 


 

3,750

 


 

Year

 

3 months

 


 

25,000.00

 

DR

 


 

CR

 


 

useful life

 


 

10 years

 


 

1

 

2

 


 

333.33

 


 

residual

 

333.33

 


 

DR

 


 

CR

 


 

$30,000

 


 

Double declining

 

1st year (full)

 

$100,000.00

 

Dep. Per Month

 

$8,333.33

 


 

600

 

600

 

Dep. Exp for 1st Year

 

DR

 


 

$25,000.00

 


 

CR

 


 

3

 

4

 

5

 

6

 

7

 

8

 

9

 

10

 


 

128

 

128

 

DR

 


 

Interest (2 Int. on all 20

 

months)

 

bonds

 

100 16.66666667 333.3333333

 


 

CR

 

1,000

 

1,000

 


 

DR

 


 

interest for one

 

bond (full year)

 


 

CR

 

450

 

450

 


 

lue $5,000. Will use units

 


 

Double Declining (Machinery)

 

Beg. Of Year Rate x Beg. Of Year

 

End of Year

 

$500,000.00

 

$25,000.00 $475,000.00

 

$475,000.00

 

$95,000.00 $380,000.00

 

$380,000.00

 

$76,000.00 $304,000.00

 


 

100000

 


 

25000

 


 

$304,000.00

 

$243,200.00

 

$194,560.00

 

$155,648.00

 

$124,518.40

 

$99,614.72

 

$79,691.78

 

$63,753.42

 


 

$60,800.00

 

$48,640.00

 

$38,912.00

 

$31,129.60

 

$24,903.68

 

$19,922.94

 

$15,938.36

 

$12,750.68

 


 

$243,200.00

 

$194,560.00

 

$155,648.00

 

$124,518.40

 

$99,614.72

 

$79,691.78

 

$63,753.42

 

$51,002.74

 


 

Inventory Tracker (FIFO)

 

Date

 

Units

 

Cost per unit Total Cost

 

COGS

 

Profit

 

2-Oct

 

200

 

20

 

4000 purchase

 

15-Oct

 

50

 

30.00

 

1500 sold

 

1000

 

500

 

15-Oct

 

150

 

20

 

3000 balance

 

1-Nov

 

200

 

25

 

5000 purchase

 

1-Nov 150 (20); 200 (25)

 

balance

 

15-Nov

 

100

 

32

 

3200 sold

 

2000

 

1200

 

15-Nov 50 (20); 200 (25)

 

balance

 

25-Nov 50 (20); 50 (25)

 

32

 

3200 sold

 

2250

 

950

 

25-Nov 150 (25)

 

balance

 

1-Dec

 

200

 

25

 

5000 purchase

 

1-Dec

 

350

 

25

 

8750 balance

 

1-Dec

 

200

 

32

 

6400 sold

 

5000

 

1400

 

1-Dec

 

150

 

25

 

3750 balance

 


 

Truck Depreciation

 


 

Cost = $50,000; Estimated useful life 120,000 miles, residual value $5,000. Will use units of production metho

 

Year 1

 

3750

 


 

useful life

 

residual

 


 

Machinery Depreciation

 

10 years

 

$30,000

 

Double declining

 


 

1st year (full)

 

Dep. Per Month

 

Dep. Per Day

 

Dep. X 29 days in Oct

 

Dep. Exp for 1st Year

 


 

$100,000.00

 

$8,333.33

 

$268.82

 

$7,795.70

 

$24,462.37

 


 

Interest Revenue earned on Bonds

 

Interest for one bond (full year)

 

Interest

 

(2

 

months)

 

100 16.666666667

 


 

000. Will use units of production method

 

750

 


 

Year

 


 

Double Declining (Machinery Continued)

 

Beg. Of Year Rate x Beg. Of Year

 

End of Year

 

1 $500,000.00

 

$24,462.37 $475,537.63

 

2 $475,537.63

 

$95,107.53 $380,430.11

 

3 $380,430.11

 

$76,086.02 $304,344.09

 

4 $304,344.09

 

$60,868.82 $243,475.27

 

5 $243,475.27

 

$48,695.05 $194,780.22

 

6 $194,780.22

 

$38,956.04 $155,824.17

 

7 $155,824.17

 

$31,164.83 $124,659.34

 

8 $124,659.34

 

$24,931.87 $99,727.47

 

9

 

$99,727.47

 

$19,945.49 $79,781.98

 

10

 

$79,781.98

 

$15,956.40 $63,825.58

 


 

on Bonds

 

Int. on all 20

 

bonds

 

333.333333333

 


 

Cash

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 


 

DR

 

700,000.00

 

100,000.00

 

1,500.00

 

3,200.00

 

3,200.00

 

3,750.00

 

4,250.00

 

120,000.00

 

333.33

 


 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 


 

Common Stock

 

DR

 

CR

 

$

 

500,000.00

 


 

CR

 

200,000.00

 

1,000.00

 

2,000.00

 

2,500.00

 

4,885.33

 

5,000.00

 

50,000.00

 

20,000.00

 

1,000.00

 

200,000.00

 

1,000.00

 

2,000.00

 

2,500.00

 

4,885.33

 

5,000.00

 

8,000.00

 

1,000.00

 

1,000.00

 

2,500.00

 

4,885.33

 


 

APIC Common Stock

 

DR

 

CR

 

$

 

200,000.00

 


 

$ 936,233.33 $ 519,156.00

 

$ 417,077.33

 

COGS

 

DR

 

$

 

1,000.00

 

$

 

2,000.00

 

$

 

2,250.00

 

$

 

5,000.00

 


 

CR

 

$

 

$

 

$

 


 

$

 

500,000.00

 

$

 

200,000.00

 

Inventory

 

Accounts Payable

 

DR

 

CR

 

DR

 

CR

 

4,000.00 $

 

1,000.00 $ 2,000.00 $

 

4,000.00

 

5,000.00 $

 

2,000.00 $ 2,000.00

 

5,000.00 $

 

2,250.00

 

$

 

5,000.00

 

$ 4,000.00 $

 

4,000.00

 


 

$ 14,000.00 $

 


 

10,250.00

 


 

$ 10,250.00

 

$

 

SS Tax Payable

 

DR

 

CR

 

$

 

413.33

 

$

 

413.33

 

$

 

413.33

 

$

 

413.33

 

$

 

413.33

 

$

 

413.33

 


 

3,750.00

 

Medicare Tax Payable

 

DR

 

CR

 

$

 

96.67

 

$

 

96.67

 

$

 

96.67

 

$

 

96.67

 

$

 

96.67

 

$

 

96.67

 


 

$0

 

$0

 

FUTA Tax Payable

 

DR

 

CR

 

$

 

53.33

 

$

 

53.33

 

$

 

53.33

 


 

$

 

2,480.00

 

Treasury Stock

 

DR

 

CR

 

$ 200,000.00 $ 100,000.00 $

 


 

$

 

580.00

 

$

 

160.00

 

Common Stock Div.

 

Common Stock Div. Payable

 

DR

 

CR

 

DR

 

CR

 

8,000.00

 

$ 8,000.00 $

 

8,000.00

 


 

$ 200,000.00 $ 100,000.00

 


 

$ 8,000.00 $

 


 

8,000.00

 


 

$ 100,000.00

 

Loss on AFS securities

 

DR

 

CR

 

$

 

250.00

 


 

$ 8,000.00

 

Accounts Receivable

 

DR

 

CR

 

$ 6,400.00

 


 

$

 


 

$ 6,400.00

 

$

 

20,000.00

 

Allowance for Uncoll. Accts

 

Fair Value Adj. for AFS Sec.

 

DR

 

CR

 

DR

 

CR

 

$

 

128.00 $ 1,000.00

 

$ 450.00

 


 

$

 

$

 


 

250.00

 

Bad Debt Expense

 

DR

 

CR

 

128.00

 

128.00

 


 

$

 


 

$0.00

 

APIC-Treasury Stock

 

DR

 

CR

 

$

 

20,000.00

 


 

128.00 $ 1,450.00

 


 

Preferred Stock

 

DR

 

CR

 

$ 10,000.00

 


 

APIC Pref. Stock

 

Machinery

 

DR

 

CR

 

DR

 

CR

 

$ 90,000.00 $ 500,000.00

 


 

Machinery Payable

 

DR

 

2,500

 

2,500

 

2,500

 


 

7,500

 


 

$

 

$

 

$

 


 

$ 10,000.00

 

Rent Expense

 

DR

 

CR

 

1,000.00

 

$

 

1,000.00

 

$

 

1,000.00

 

$

 


 

$ 3,000.00

 

SUTA Tax Payable

 

DR

 

CR

 

$

 

360.00

 

$

 

360.00

 

$

 

360.00

 


 

$

 


 

$ 90,000.00 $ 500,000.00

 

Wages Expense

 

Fed. Inc. Tax Payable

 

DR

 

CR

 

DR

 

CR

 

6,666.67

 

1,000.00

 

6,666.67

 

1,000.00

 

6,666.67

 

1,000.00

 


 

$ 20,000.00

 

Payroll Tax Expense

 

DR

 

CR

 

$

 

923.33

 

$

 

923.33

 

$

 

923.33

 


 

$

 


 

3,000.00

 

Investment in AFS sec.

 

DR

 

CR

 

50,000.00

 

2,500.00

 

4,500

 


 

$ 1,080.00 $ 2,770.00

 

$ 50,000.00

 

7,000.00

 

Pref. Stock Div.

 

Pref. Stock Div. Payable

 

Delivery Truck

 

DR

 

CR

 

DR

 

CR

 

DR

 

CR

 

1,000.00

 

$ 1,000.00 $ 1,000.00 $ 50,000.00

 


 

State Inc. Tax Payable

 

DR

 


 

Investment in HFM sec.

 

DR

 

20,000

 


 

20,000

 

Truck Payable

 

DR

 


 

$ 1,000.00 $ 1,000.00

 

$ 1,000.00

 

Depreciation Expense

 

DR

 

CR

 

$ 3,750.00

 

$ 25,000.00

 

$ 28,750.00

 

Unreal. Gain on AFS Sec.

 

DR

 

CR

 

$ 1,000.00

 

$ 1,000.00

 


 

$0.00

 

$ 50,000.00

 

Acc. Dep.-Truck

 

Acc. Dep-Machinery

 

DR

 

CR

 

DR

 

CR

 

$ 3,750.00

 

25,000.00

 

$ 3,750.00

 

Unreal. Loss on AFS Sec.

 

DR

 

CR

 

$

 

450.00

 

$

 


 

450.00

 


 

25,000.00

 


 

Interest Revenue

 

DR

 


 

Machinery Payable

 

CR

 

300,000

 


 

Sales

 

DR

 


 

CR

 

1,500

 

3,200

 

3,200

 

6400

 


 

300,000

 

292,500

 

State Inc. Tax Payable

 

CR

 

204.67

 

204.67

 

204.67

 


 

614.00

 

Investment in HFM sec.

 

CR

 


 

Truck Payable

 

CR

 

50,000.00

 


 

14,300

 

Local Inc. Tax Payable

 

DR

 

CR

 

66.67

 

66.67

 

66.67

 


 

200.00

 

Office Supplies

 

DR

 

CR

 

1,000

 

600.00

 


 

1,000

 

600.00

 

Gain on Sale of AFS sec.

 

DR

 

CR

 

1,250.00

 


 

50,000.00

 

Interest Revenue

 

CR

 

333.33

 

333.33

 


 

1,250.00

 

Supplies Expense

 

DR

 

CR

 

600

 

600

 


 

Account

 

Cash

 

Inventory

 

Accounts Receivable

 

Supplies

 

Machinery

 

Truck

 

Investment In HFM Securities

 

Investment In AFS Securities

 

Cost of Goods Sold

 

Treasury Stock

 

Common Stock Dividends

 

Preferred Stock Dividends

 

Payroll Tax Expense

 

Wages Expense

 

Rent Expense

 

Depreciation Expense

 

Supplies Expense

 

Bad Debt Expense

 

Loss on AFS Securities

 

Fair Value Adjustment to Available for Sale Securities

 

Accumulated Depreciation - Truck

 

Accumulated Depreciation Machinery

 

Sales

 

Truck Payable

 

Federal Unemployment Tax Payable

 

State Unemployment Tax Payable

 

Machinery Payable

 

Federal Income Tax Payable

 

State Income Tax Payable

 

Local Income Tax Payable

 

Social Security Tax Payable

 

Medicare Tax Payable

 

Common Stock

 

APIC Common Stock

 

Preferred Stock

 

APIC Preferred Stock

 

APIC Treasury Stock

 

Gain on AFS Securities

 

Interest Revenue

 

Unrealized Gain on Available for Sale Securities

 

Unrealized Loss on Available for Sale Securities

 

Allowance for Uncollectible Accounts

 

Balance

 


 

DR

 

$417,077.33

 

$3,750.00

 

$6,400.00

 

$400.00

 

$500,000.00

 

$50,000.00

 

$20,000.00

 

$43,000.00

 

$10,250.00

 

$100,000.00

 

$8,000.00

 

$1,000.00

 

$2,770.00

 

$20,000.00

 

$3,000.00

 

$28,750.00

 

$600.00

 

$128.00

 

$250.00

 

$1,450.00

 


 

CR

 


 

$3,750.00

 

$25,000.00

 

$14,300.00

 

$50,000.00

 

$160.00

 

$1,080.00

 

$292,500.00

 

$3,000.00

 

$614.00

 

$200.00

 

$2,480.00

 

$580.00

 

$500,000.00

 

$200,000.00

 

$10,000.00

 

$90,000.00

 

$20,000.00

 

$1,250.00

 

$333.33

 

$1,000.00

 

$450.00

 

$128.00

 

$1,216,825.33 $1,216,825.33

 


 

Preliminary Trial Balance

 

April 30, 2012

 

Debit

 

Cash

 

Accounts Receivable

 

Supplies

 

Prepaid Insurance

 

Equipment

 

Office Equipment

 

Land

 

Delivery Van

 

Building

 

Notes Payable

 

Accounts Payable

 

Unearned Service Revenue

 

Mortgage Payable

 

Common Stock

 

Retained Earnings

 

Dividends

 

Sales

 

Salaries and Wages Expense

 

Totals:

 


 

Credit

 


 

250,000.00

 

0.00

 

0.00

 

0.00

 

300,000.00

 

150,000.00

 

0.00

 

0.00

 

0.00

 

0.00

 

0.00

 

0.00

 

0.00

 

0.00

 

0.00

 

0.00

 

0.00

 

0.00

 

700,000.00

 


 

0.00

 


 

Closing Entries

 

31-Dec Sales

 

Income Summary

 

(To close out the service revenue account)

 

31-Dec Income Summary

 

Depreciation Expense

 

(To close out the depreciation expense account)

 

31-Dec Interest Revenue

 

Income Summary

 

(To close out the interest revenue account)

 

31-Dec Income Summary

 

Payroll Tax Expense

 

(To close out the payroll tax expense account)

 

31-Dec Income Summary

 

Wages and Salaries Expense

 

(To close out the wages and salaries expense account)

 

31-Dec Income Summary

 

Rent Expense

 

(To close out the rent expense account)

 

31-Dec Income Summary

 

Supplies Expense

 

(To close out the supplies expense account)

 

31-Dec Income Summary

 

Bad Debt Expense

 

(To close out the bad debt expense account)

 


 

DR

 

14,300.00

 


 

28,750

 


 

333.33

 


 

2,770

 


 

20,000

 


 

3,000

 


 

600

 


 

128

 


 

CR

 

14,300.00

 

T Accounts (for my use)

 

28,750

 


 

333.33

 


 

2,770

 


 

Expenses

 

28,750.00

 

20,000.00

 

2770

 

3000

 

600

 

128

 


 

20,000

 


 

3,000

 


 

600

 


 

128

 


 

Income Summary

 

28750 14,300.00

 

20,000.00

 

333.33

 

2,770.00

 

3,000.00

 

600.00

 

128.00

 

55248

 

40,614.67

 


 

14,633.33

 

40614.67

 


 

0.00

 

Retained Earnings

 

-40,614.67

 


 

Sales

 

14,300.00

 

0.00

 


 

Sales

 

14,300.00

 


 

Account

 

Cash

 

Inventory

 

Accounts Receivable

 

Supplies

 

Machinery

 

Truck

 

Investment In HFM Securities

 

Investment In AFS Securities

 

Cost of Goods Sold

 

Treasury Stock

 

Common Stock Dividends

 

Preferred Stock Dividends

 

Payroll Tax Expense

 

Wages Expense

 

Rent Expense

 

Depreciation Expense

 

Supplies Expense

 

Bad Debt Expense

 

Loss on AFS Securities

 

Fair Value Adjustment to Available for Sale Securities

 

Accumulated Depreciation - Truck

 

Accumulated Depreciation Machinery

 

Sales

 

Truck Payable

 

Federal Unemployment Tax Payable

 

State Unemployment Tax Payable

 

Machinery Payable

 

Federal Income Tax Payable

 

State Income Tax Payable

 

Local Income Tax Payable

 

Social Security Tax Payable

 

Medicare Tax Payable

 

Common Stock

 

APIC Common Stock

 

Preferred Stock

 

APIC Preferred Stock

 

APIC Treasury Stock

 

Gain on AFS Securities

 

Interest Revenue

 

Unrealized Gain on Available for Sale Securities

 

Unrealized Loss on Available for Sale Securities

 

Allowance for Uncollectible Accounts

 

Balance

 


 

DR

 

$417,077.33

 

$3,750.00

 

$6,400.00

 

$400.00

 

$500,000.00

 

$50,000.00

 

$20,000.00

 

$43,000.00

 

$10,250.00

 

$100,000.00

 

$8,000.00

 

$1,000.00

 

$2,770.00

 

$20,000.00

 

$3,000.00

 

$28,750.00

 

$600.00

 

$128.00

 

$250.00

 

$1,450.00

 


 

CR

 


 

$3,750.00

 

$25,000.00

 

$14,300.00

 

$50,000.00

 

$160.00

 

$1,080.00

 

$292,500.00

 

$3,000.00

 

$614.00

 

$200.00

 

$2,480.00

 

$580.00

 

$500,000.00

 

$200,000.00

 

$10,000.00

 

$90,000.00

 

$20,000.00

 

$1,250.00

 

$333.33

 

$1,000.00

 

$450.00

 

$128.00

 

$1,216,825.33 $1,216,825.33

 


 

Mandalay Interiors

 

Income Statement

 

For the Period ending Dec. 31, 2012

 

Sales

 

$14,300.00

 

COGS

 

$10,250.00

 

Gross profit

 

$4,050.00

 

Other revenues

 

Interest Revenue

 

$333.33

 

Gain on AFS investment

 

$1,250.00

 

Gain on revaluation

 

$1,000.00

 

Net Profit

 

$6,633.33

 

Expenses

 

Rent Expense

 

$3,000.00

 

Depreciation Expense

 

$28,750.00

 

Supplies expense

 

$600.00

 

Wages Expense

 

$20,000.00

 

Payroll Tax Expense

 

$2,770.00

 

Bad debt expense

 

$128.00

 

Loss on investment

 

$250.00

 

Loss on revaluation

 

$450.00

 

Total expenses

 

$55,248.00

 

Net loss

 

-$48,614.67

 


 

Mandalay Interiors

 

Statement of Retained Earnings

 

For the Month Ended 12/31/2012

 

Retained Earnings, Jan. 1

 

Add: Net Income

 


 

0.00

 

-48,614.67

 


 

Less: Common Stock Dividends

 


 

-8,000.00

 


 

Less: Preferred Stock Dividends

 


 

-1,000.00

 


 

Retained Earnings, Dec. 31

 


 

-$57,614.67

 


 

Mandalay Interiors

 

Balance Sheet

 

As of December 31, 2012

 

Assets

 

Current Assets

 

Cash

 

AFS Securities

 

Accounts Receivable

 

Less Allowance for Doubtful Accounts

 

Inventory

 

Supplies

 

Total Current Assets

 

Long Term Investments

 

HFM Securities

 

Total Long Term Investments

 


 

417,077

 

43,000

 

6,400

 

-128

 

3,750

 

400

 

470,499

 


 

20,000

 

20,000

 


 

Property and Equipment, at cost:

 

Truck

 

Less Accumulated Depreciation (Truck)

 

Machinery

 

Less Accumulated Depreciation (Machinery)

 

Total Property and Equipment

 

Total Assets

 


 

50,000

 

-3,750

 

500,000

 

-25,000

 

521,250

 

1,011,749

 


 

ndalay Interiors

 

Balance Sheet

 

December 31, 2012

 

Liabilities and Shareholders' Equity

 

Current Liabilities

 

Social Security Tax Payable

 

Medicare Tax Payable

 


 

Federal Income Tax Payable

 

State Income Tax Payable

 

Local Income Tax Payable

 

FUTA Tax Payable

 

SUTA Tax Payable

 

Total Current Liabilities

 


 

2,480

 

580

 

3,000

 

614

 

200

 

160

 

1080

 

8,114

 


 

Long Term Debt

 


 

Truck Payable

 

Machinery Payable

 


 

50,000

 

292,500

 


 

Total Long Term Debt

 

Total Liabilities

 


 

342,500

 

350,614

 


 

Shareholders' Equity

 

Common Stock

 

Preferred Stock

 


 

APIC Common Stock

 

APIC Preferred Stock

 

Treasury Stock

 

APIC Treasury Stock

 

Retained Earnings

 


 

500,000

 

10,000

 

200,000

 

90,000

 

-100,000

 


 

-20000

 

-57614.67

 


 

Total Shareholders' Equity

 


 

622,385

 


 

Total Liabilities and Stockholders' Equity

 


 

972,999

 


 

Mandalay Interiors

 

Cash Flow Statement

 


 

For the year ending 12/31/2012

 

Operations

 

Net Income

 

Adjustments to reconcile to cash from operating activities

 

Depreciation expense

 

Increase in Inventories

 

Increase in Accounts Receivable

 

Increase in Supplies

 

Net Cash Flow Provided by Operating Activities

 

Investing Activities

 

Sale of investment securities

 

Purchase of Truck

 

Purchase of Machinery

 

Purchase of Investment Securities

 

Net Cash Flow Provided from Investing Activities

 

Financing Activities

 

Issuance of Common Stock

 

Issuance of Preferred Stock

 

Repurchase of Stock (Treasury Stock)

 

Repayment of Loan (Acct Payable)

 

Net Cash Flow Provided from Financing Activities

 

Net Increase in Cash

 

Beginning Cash Balance

 

Ending Cash Balance

 


 

14,300

 

28,750

 

-3,750

 

-6,400

 

-400

 

32,500

 

1,250

 

-50,000

 

292,500

 

50,000

 

293,750

 

500,000

 

300,000

 

-100,000

 

-4,000

 

696,000

 

1,022,250

 

0

 

1,022,250

 


 

Current Ratio

 

57.98611

 

Quick Ratio

 

Accounts Receivable Turnover

 

Days Sales in Receivable

 

Earnings Per Share

 

Price Per Earnings Ratio

 

MP=$12

 


 

 

Paper#9208998 | Written in 27-Jul-2016

Price : $19
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