Integrated Accounting 8th Edition Klooster Solutions Manual
richard@qwconsultancy.com
1|Pa ge
Chapter 1 - Manual
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Chapter 1 INTRODUCTION STUDENT EXERCISES I.
MATCHING
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
j h f k e g b d c i p n l a o q m
II. QUESTIONS 1. An informational system that plans, analyzes, records, and reports financial information. 2. Accountant. 3. A business is an economic entity that endeavors to sell goods and services to customers at prices that will pay all the costs of doing business and return a profit to the owners. 4. A MIS consists of several computer integrated systems that provide all the informational needs of the business. 5. Assets = Liabilities + Owner’s Equity. 6. Account classification is a grouping of all accounts in the general ledger into their appropriate categories. 7. The double-entry accounting system is based on recording debit and credit parts of a transaction so that the total dollar amount of debits and total dollar amount of credits equal each other. 8. The Explore Accounting System is used to access data stored by the software in order to perform audit checks, check account activity, isolate errors, and other tasks that are helpful to managing account information. 9. The Web browser enables you to find and view information about anything on the World Wide Web. 10. College Planner Savings © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Planner Loan Planner Retirement Planner Notes Interest Planner 11. The purpose of the Check feature of the software is to assist you in checking your work for sample and A problems against solution key files as you complete the end-of-chapter problems in this text-workbook. College Savings Plan 09/01/-Schedule of College Savings Year (Beginning Balance) 1 2 3 4 5 6 7 8 9
Annual Contribution
Annual Yield
College Savings
3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
93.75 209.77 330.13 455.01 584.57 719.00 858.46 1,003.15 1,153.27
2,500.00 5,593.75 8,803.52 12,133.65 15,588.66 19,173.23 22,892.23 26,750.69 30,753.84 34,907.11
Schedule of College Payments College Year
Annual Payments
Annual Yield
Savings Balance
(College Savings) 1 2 3 4
9,214.43 9,214.43 9,214.43 9,214.41
963.48 654.06 333.05
34,907.11 26,656.16 18,095.79 9,214.41 .00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 1 - Manual
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Lopez Realtors Accounting Equation Report 09/01/-Account
Classification
Description
Cash
Asset
Balance Forward Transaction Transaction Transaction Transaction Transaction Transaction New Balance
.00 10,000.00 -350.00 -495.00 -650.00 -1,100.00 -900.00 6,505.00
Supplies
Asset
Balance Forward Transaction Transaction New Balance
.00 350.00 1,200.00 1,550.00
Prepaid Insurance
Asset
Balance Forward Transaction New Balance
.00 495.00 495.00
Accounts Payable
Liability
Balance Forward Transaction Transaction New Balance
.00 1,200.00 -900.00 300.00
David Lopez, Capital
Owner's Equity
Balance Forward Transaction New Balance
.00 10,000.00 10,000.00
David Lopez, Drawing
Owner's Equity
Balance Forward Transaction New Balance
.00 1,100.00 1,100.00
Fees
Revenue
Balance Forward New Balance
.00 .00
Advertising Expense
Expense
Balance Forward Transaction New Balance
.00 650.00 650.00
Insurance Expense
Expense
Balance Forward New Balance
.00 .00
Legal Expense
Expense
Balance Forward New Balance
.00 .00
Miscellaneous Expense
Expense
Balance Forward New Balance
.00 .00
Rent Expense
Expense
Balance Forward New Balance
.00 .00
Supplies Expense
Expense
Balance Forward New Balance
.00 .00
Utilities Expense
Expense
Balance Forward New Balance
.00 .00
Assets = Liabilities + Equity =
Amount
8,550.00 8,550.00
Equation in Balance © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Account Classification Drill Account Title Cash David Lopez, Capital Prepaid Insurance Legal Expense Miscellaneous Expense Accounts Payable
Classification Normal Balance asset debit owner’s equity credit asset debit expense debit expense debit liability credit
Increased By debit credit debit debit debit credit
Student responses to the Internet activity to find information about careers in the accounting field will vary. AUDIT QUESTIONS 1-A 1. Click on the Help Contents and Index menu item in the Help menu. When the Help window appears, click on the Search tab and enter “Web Browser.” Under the Choose Topic to Display list, click on Internet Browser to obtain the following information: To Search the Internet 1.
Click on the Search toolbar button, or choose the Search Internet menu item in your browser, select a search category, and follow the directions. Or, in the Address Bar, type go, find, or ? followed by a space and the word or phrase you want to find.
2.
In the list of search results that appear, click a link to display the desired Web page. After you go to a Web page, you can search for specific text on that page.
2. 197.67 3. 9,214.43 4. 8,550.00 5. 4110 6. Supplies account Transaction 1 = debit for $350.00 Transaction 2 = debit for $1,200.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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PROBLEM 1-B College Savings Plan 09/01/-Schedule of College Savings Year (Beginning Balance) 1 2 3 4 5 6 7 8 9 10
Annual Contribution
Annual Yield
College Savings
5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00
340.00 575.45 820.91 1,076.80 1,343.56 1,621.66 1,911.58 2,213.82 2,528.91 2,857.39
8,000.00 13,540.00 19,315.45 25,336.36 31,613.16 38,156.72 44,978.38 52,089.96 59,503.78 67,232.69 75,290.08
Schedule of College Payments College Year
Annual Payments
Annual Yield
Savings Balance
(College Savings) 1 2 3 4
20,013.44 20,013.44 20,013.44 20,013.45
2,349.26 1,598.53 815.90
75,290.08 57,625.90 39,210.99 20,013.45 .00
Lopez Realtors Accounting Equation Report 09/01/-Account
Classification
Description
Amount
Cash
Asset
Balance Forward Transaction Transaction Transaction Transaction Transaction Transaction New Balance
.00 8,500.00 -475.00 -525.00 -375.00 -1,500.00 -650.00 4,975.00
Supplies
Asset
Balance Forward Transaction Transaction New Balance
.00 475.00 1,200.00 1,675.00
Prepaid Insurance
Asset
Balance Forward Transaction New Balance
.00 525.00 525.00
Accounts Payable
Liability
Balance Forward Transaction Transaction New Balance
.00 1,200.00 -650.00 550.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
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David Lopez, Capital
Owner's Equity
Balance Forward Transaction New Balance
.00 8,500.00 8,500.00
David Lopez, Drawing
Owner's Equity
Balance Forward Transaction New Balance
.00 1,500.00 1,500.00
Fees
Revenue
Balance Forward New Balance
.00 .00
Advertising Expense
Expense
Balance Forward New Balance
.00 .00
Insurance Expense
Expense
Balance Forward New Balance
.00 .00
Legal Expense
Expense
Balance Forward New Balance
.00 .00
Miscellaneous Expense
Expense
Balance Forward New Balance
.00 .00
Rent Expense
Expense
Balance Forward New Balance
.00 .00
Supplies Expense
Expense
Balance Forward New Balance
.00 .00
Utilities Expense
Expense
Balance Forward Transaction New Balance
.00 375.00 375.00
Assets = Liabilities + Equity =
7,175.00 7,175.00
Equation in Balance
Account Classification Drill Account Title Supplies Accounts Payable Advertising Expense Utilities Expense David Lopez, Drawing Rent Expense
Classification Normal Balance Increased By asset debit debit liability credit credit expense debit debit expense debit debit owner’s equity debit (contra Account) debit expense debit debit
Student responses to the Internet activity to find information about foreign currency exchange rates will vary.
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
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AUDIT QUESTIONS 1-B 1.
Click on the Help Contents and Index menu item in the Help menu. When the Help window appears, click on the Search tab and enter “copying.” Under the Choose Topic to Display list, click on Copying Report Contents to the Clipboard to obtain the following information: Copying Accounting Data to the Clipboard 1.
Click on the Copy command button.
2.
When the Copy Report to Clipboard dialog box appears, select the desired option button for spreadsheet or word processor.
3.
Click on OK. The entire report will be copied to the clipboard in the specified format.
4.
If the copy is successful, a message dialog box will appear, indicating the copy is complete. Click on OK.
5.
Switch to your spreadsheet or word-processor program.
6.
Position the insertion point at the location where you would like the data to appear.
7.
Choose Paste from your spreadsheet or word processor menu.
2.
$4,700.00
3.
$20,013.44
4.
$7,175
5.
5170
6.
Accounts Payable: Transaction 1 = credit for $1,200.00 Transaction 2 = debit for $650.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
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Chapter 2
ACCOUNTING CYCLE OF A SERVICE BUSINESS AND BANK RECONCILIATION STUDENT EXERCISES I.
MATCHING
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.
m f e h c l i k j a b d g n o p
II. TRUE/FALSE 1. 2. 3. 4. 5. 6. 7.
F F T T T T T
III. QUESTIONS 1. Click on the Accts. toolbar button. When the Account Maintenance window appears, click on the Accounts tab, key the account number and account title of the account to be added, then choose the Add Account button. 2. Click on the Accts. toolbar button. When the Account Maintenance window appears, click on the Accounts tab and select the account to be changed. Key the new account title, then choose the Change button to record the new account title. 3. Click on the Accts. toolbar button. When the Account Maintenance window appears, click on the Accounts tab and select the account to be deleted. Choose the Delete button to delete the selected account (only accounts with zero balances may be deleted). © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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4. Any business transaction may be entered in the general journal window. 5. Click on the Journals toolbar button. When the Journal Entries window appears, click on the General Journal tab and select the transaction that must be corrected. Key the correction(s), then choose the Post button. 6. Click on the Journals toolbar button. When the Journal Entries window appears, click on the General Journal tab, select the transaction to be deleted, then chose the Delete button. 7. While the Account field has the focus, choose the Chart of Accounts button to cause the computer to display a selection list from which an account may be selected and placed in the Account field. 8. Start Date: End Date:
07/01/-07/31/--
9. Start Date: End Date: Reference:
09/01/-09/10/-5435
10. $335.00 11. Income Statement, Balance Sheet, and Statement of Owner’s Equity. 12. In the Reconciliation window, the computer automatically includes the Cash account balance in the Checkbook Balance field, and all the checks written during the period are displayed in a list box. 13. The computer automatically generates the closing entries that close the temporary income statement accounts to the income summary account, close the income summary account to the capital account, and close the drawing account to the capital account. 14. If an error is detected after closing, use the following procedure: (1) correct the journal entry in error, (2) delete the closing entries, and (3) again generate, display, and post the closing journal entries.
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
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PROBLEM 2-A Morrow Consulting General Journal 12/30/-Date
Refer.
Acct.
Title
Debit
12/01 3829 12/01 3829
5110 1110
Rent Expense Cash
12/01 3830 12/01 3830
5150 1110
Telephone Expense Cash
237.73
12/02 3831 12/02 3831
5210 1110
Miscellaneous Expense Cash
42.00
12/05 2515 12/05 2515
5190 2110
Advertising Expense Accounts Payable
255.00
12/05 5435 12/05 5435
1120 4110
Accounts Receivable Consulting Fees
3,200.00
12/06 2516 12/06 2516
1130 2110
Supplies Accounts Payable
118.56
12/06 3832 12/06 3832
5160 1110
Automobile Expense Cash
405.00
12/07 2517 12/07 2517
5185 2110
Repair & Maintenance Accounts Payable
285.00
12/07 3833 12/07 3833
5140 1110
Travel/Entertainment Exp. Cash
125.35
12/09 3834 12/09 3834
2110 1110
Accounts Payable Cash
175.00
12/09 2518 12/09 2518
1130 2110
Supplies Accounts Payable
225.30
12/09 5436 12/09 5436
1120 4110
Accounts Receivable Consulting Fees
2,000.00
12/12 5437 12/12 5437
1120 4110
Accounts Receivable Consulting Fees
3,575.00
12/13 2519 12/13 2519
5190 2110
Advertising Expense Accounts Payable
500.00
12/14 3835 12/14 3835
5195 1110
Dues & Subscriptions Cash
265.00
12/15 5435 12/15 5435
1110 1120
Cash Accounts Receivable
3,200.00
Credit
1,200.00 1,200.00 237.73 42.00 255.00 3,200.00 118.56 405.00 285.00 125.35 175.00 225.30 2,000.00 3,575.00 500.00 265.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3,200.00
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12/16 3836 12/16 3836
5200 1110
Charitable Contrib. Exp. Cash
12/19 5434 12/19 5434
1110 1120
Cash Accounts Receivable
3,700.00
12/20 5438 12/20 5438
1120 4110
Accounts Receivable Consulting Fees
1,200.00
12/21 2520 12/21 2520
1130 2110
Supplies Accounts Payable
135.00
12/23 3837 12/23 3837
2110 1110
Accounts Payable Cash
136.85
12/27 3838 12/27 3838
2110 1110
Accounts Payable Cash
250.00
12/29 5433 12/29 5433
1110 1120
Cash Accounts Receivable
12/30 3839 12/30 3839
2110 1110
Accounts Payable Cash
12/30 5436 12/30 5436
1110 1120
Cash Accounts Receivable
2,000.00
12/30 3840 12/30 3840
5120 1110
Salary Expense Cash
2,054.38
12/30 3841 12/30 3841
3120 1110
Joyce Morrow, Drawing Cash
3,200.00
Totals
75.00 75.00 3,700.00 1,200.00 135.00 136.85 250.00 3,250.00 3,250.00 311.86 311.86 2,000.00 2,054.38 3,200.00 -------------- -------------32,122.03 32,122.03 ============== ==============
Morrow Consulting General Journal 12/30/-Date
Refer.
Acct.
Title
Debit
12/01 3829 12/01 3829
5110 1110
Rent Expense Cash
12/01 3830 12/01 3830
5150 1110
Telephone Expense Cash
237.73
12/02 3831 12/02 3831
5210 1110
Miscellaneous Expense Cash
42.00
12/05 2515 12/05 2515
5190 2110
Advertising Expense Accounts Payable
255.00
12/05 5435
1120
Accounts Receivable
3,200.00
Credit
1,200.00 1,200.00 237.73 42.00 255.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
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12/05 5435
4110
Consulting Fees
3,200.00
12/06 2516 12/06 2516
1130 2110
Supplies Accounts Payable
118.56
12/06 3832 12/06 3832
5160 1110
Automobile Expense Cash
405.00
12/07 2517 12/07 2517
5185 2110
Repair & Maintenance Accounts Payable
285.00
12/07 3833 12/07 3833
5140 1110
Travel/Entertainment Exp. Cash
125.35
12/09 3834 12/09 3834
2110 1110
Accounts Payable Cash
175.00
12/09 2518 12/09 2518
1130 2110
Supplies Accounts Payable
225.30
12/09 5436 12/09 5436
1120 4110
Accounts Receivable Consulting Fees
2,000.00
12/12 5437 12/12 5437
1120 4110
Accounts Receivable Consulting Fees
3,575.00
12/13 2519 12/13 2519
5190 2110
Advertising Expense Accounts Payable
500.00
12/14 3835 12/14 3835
5195 1110
Dues & Subscriptions Cash
265.00
12/15 5435 12/15 5435
1110 1120
Cash Accounts Receivable
3,200.00
12/16 3836 12/16 3836
5200 1110
Charitable Contrib. Exp. Cash
12/19 5434 12/19 5434
1110 1120
Cash Accounts Receivable
3,750.00
12/20 5438 12/20 5438
1120 4110
Accounts Receivable Consulting Fees
1,200.00
12/21 2520 12/21 2520
1130 2110
Supplies Accounts Payable
135.00
12/23 3837 12/23 3837
2110 1110
Accounts Payable Cash
136.85
12/27 3838 12/27 3838
2110 1110
Accounts Payable Cash
250.00
12/29 5433 12/29 5433
1110 1120
Cash Accounts Receivable
118.56 405.00 285.00 125.35 175.00 225.30 2,000.00 3,575.00 500.00 265.00 3,200.00 75.00 75.00 3,750.00 1,200.00 135.00 136.85 250.00 3,250.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3,250.00
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12/30 3839 12/30 3839
2110 1110
Accounts Payable Cash
311.86
12/30 5436 12/30 5436
1110 1120
Cash Accounts Receivable
2,000.00
12/30 3840 12/30 3840
5120 1110
Salary Expense Cash
2,054.38
12/30 3841 12/30 3841
3120 1110
Joyce Morrow, Drawing Cash
3,200.00
311.86 2,000.00 2,054.38
Totals
3,200.00 -------------- -------------32,172.03 32,172.03 ============== ==============
Morrow Consulting Trial Balance 12/30/-Acct. Number
Account Title
1110 1120 1130 1140 1510 1511 2110 3110 3120 4110 5110 5120 5130 5140 5150 5160 5170 5180 5185 5190 5195 5200 5210
Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum. Depr. Office Eqpt. Accounts Payable Joyce Morrow, Capital Joyce Morrow, Drawing Consulting Fees Rent Expense Salary Expense Supplies Expense Travel/Entertainment Exp. Telephone Expense Automobile Expense Depr. Exp. Office Eqpt. Insurance Expense Repair & Maintenance Advertising Expense Dues & Subscriptions Charitable Contrib. Exp. Miscellaneous Expense
Debit
Totals
Credit
12,764.00 2,192.31 1,461.36 435.00 48,122.00 15,235.75 905.33 36,458.74 36,700.00 119,882.73 17,400.00 22,549.76 4,618.77 4,683.15 2,717.74 6,825.68 4,430.63 787.25 685.00 3,930.00 415.00 385.00 1,379.90 ----------------- ----------------172,482.55 172,482.55 ================= =================
Morrow Consulting General Journal 12/31/-Date
Refer.
Acct.
Title
Debit
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Credit
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12/31 Adj.Ent. 12/31 Adj.Ent.
5180 1140
Insurance Expense Prepaid Insurance
85.00
12/31 Adj.Ent. 12/31 Adj.Ent.
5130 1130
Supplies Expense Supplies
282.86
12/31 Adj.Ent. 12/31 Adj.Ent.
5170 1511
Depr. Exp. Office Eqpt. Accum. Depr. Office Eqpt.
423.00
Totals
85.00 282.86 423.00 -------------- -------------790.86 790.86 ============== ==============
Morrow Consulting Income Statement For Year Ended 12/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Consulting Fees Total Operating Revenue
9,975.00 100.00 119,882.73 100.00 ------------- ------------- ------------- ---------9,975.00 100.00 119,882.73 100.00
Operating Expenses Rent Expense Salary Expense Supplies Expense Travel/Entertainment Exp. Telephone Expense Automobile Expense Depr. Exp. Office Eqpt. Insurance Expense Repair & Maintenance Advertising Expense Dues & Subscriptions Charitable Contrib. Exp. Miscellaneous Expense Total Operating Expenses Net Income
1,200.00 12.03 17,400.00 14.51 2,054.38 20.60 22,549.76 18.81 282.86 2.84 4,901.63 4.09 125.35 1.26 4,683.15 3.91 237.73 2.38 2,717.74 2.27 405.00 4.06 6,825.68 5.69 423.00 4.24 4,853.63 4.05 85.00 0.85 872.25 0.73 285.00 2.86 685.00 0.57 755.00 7.57 3,930.00 3.28 265.00 2.66 415.00 0.35 75.00 0.75 385.00 0.32 42.00 0.42 1,379.90 1.15 ------------- ------------- ------------- ---------6,235.32 62.51 71,598.74 59.72 ------------- ------------- ------------- ---------3,739.68 37.49 48,283.99 40.28 ============= ============= ============= ==========
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Morrow Consulting Statement of Owner's Equity For Year Ended 12/31/--
Joyce Morrow, Capital (Beg. of Period) Joyce Morrow, Drawing Net Income
36,458.74 -36,700.00 48,283.99 ------------48,042.73 =============
Joyce Morrow, Capital (End of Period)
Morrow Consulting Balance Sheet 12/31/-Assets Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum. Depr. Office Eqpt. Total Assets
12,764.00 2,192.31 1,178.50 350.00 48,122.00 -15,658.75 ------------48,948.06 =============
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Liabilities Accounts Payable
905.33 -------------
Total Liabilities
905.33
Owner's Equity Joyce Morrow, Capital Joyce Morrow, Drawing Net Income Total Owner's Equity Total Liabilities & Equity
36,458.74 -36,700.00 48,283.99 ------------48,042.73 ------------48,948.06 =============
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Morrow Consulting Bank Reconciliation 12/31/-Checkbook Balance
12764.00
Plus Bank Credits: 283.96 -------------283.96 Less Bank Charges: 12.00 -------------12.00 -------------13035.96 ==============
Adjusted Checkbook Balance Bank Statement Balance
6652.20
Plus Outstanding Deposits: 3200.00 3750.00 3250.00 2000.00 -------------12200.00 Less Outstanding Checks: 3838 3839 3840 3841
250.00 311.86 2054.38 3200.00 -------------5816.24 -------------13035.96 ==============
Adjusted Bank Balance
INTEROFFICE MEMORANDUM TO:
Joyce Morrow, Owner
FROM:
Student Name
DATE:
(Today's Date)
SUBJECT: Cash Received As per your request, the following report reflects the cash received during the month of December: Student Name © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Morrow Consulting Cash Receipts As Of 12/31/-Date
Refer.
Acct.
Title
Debit
15-Dec 15-Dec
5435 5435
1110 1120
Cash Accounts Receivable
$3,200.00
19-Dec 19-Dec
5434 5434
1110 1120
Cash Accounts Receivable
$3,750.00
29-Dec 29-Dec
5433 5433
1110 1120
Cash Accounts Receivable
$3,250.00
30-Dec 30-Dec
5436 5436
1110 1120
Cash Accounts Receivable
$2,000.00
Totals
Credit
$3,200.00
$3,750.00
$3,250.00
------------$12,200.00
$2,000.00 ----------$12,200.00
==============
=============
Morrow Consulting General Journal 12/31/-Date
Refer.
Acct.
Title
Debit
12/31 Clo.Ent. 12/31 Clo.Ent.
4110 3130
Consulting Fees Income Summary
119,882.73
12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent.
3130 5110 5120 5130 5140 5150 5160 5170 5180 5185 5190 5195 5200 5210
Income Summary Rent Expense Salary Expense Supplies Expense Travel/Entertainment Exp. Telephone Expense Automobile Expense Depr. Exp. Office Eqpt. Insurance Expense Repair & Maintenance Advertising Expense Dues & Subscriptions Charitable Contrib. Exp. Miscellaneous Expense
71,598.74
12/31 Clo.Ent. 12/31 Clo.Ent.
3130 3110
Income Summary Joyce Morrow, Capital
48,283.99
12/31 Clo.Ent.
3110
Joyce Morrow, Capital
36,700.00
Credit 119,882.73 17,400.00 22,549.76 4,901.63 4,683.15 2,717.74 6,825.68 4,853.63 872.25 685.00 3,930.00 415.00 385.00 1,379.90 48,283.99
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
12/31 Clo.Ent.
Page 12
3120
4/12/2024
Joyce Morrow, Drawing Totals
36,700.00 -------------- -------------276,465.46 276,465.46 ============== ==============
Morrow Consulting Trial Balance 12/31/-Acct. Number
Account Title
1110 1120 1130 1140 1510 1511 2110 3110
Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum. Depr. Office Eqpt. Accounts Payable Joyce Morrow, Capital Totals
Debit
Credit
12,764.00 2,192.31 1,178.50 350.00 48,122.00 15,658.75 905.33 48,042.73 ----------------- ----------------64,606.81 64,606.81 ================= =================
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 2-A 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
$311.86 $32,172.03 $17,400.00 $415.00 $172,482.55 $790.86 $9,975.00 $71,598.74 62.51% $3,739.68 40.28% $48,042.73 $48,948.06 $905.33 Salary Expense, Rent Expense, and Automobile Expense $13,035.96 $276,465.46 $64,606.81
PROBLEM 2-B © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
Page 13
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Morrow Consulting General Journal 12/30/-Date
Refer.
Acct.
Title
Debit
12/01 3829 12/01 3829
5110 1110
Rent Expense Cash
12/01 3830 12/01 3830
5150 1110
Telephone Expense Cash
298.71
12/02 3831 12/02 3831
5210 1110
Miscellaneous Expense Cash
37.65
12/05 2515 12/05 2515
5190 2110
Advertising Expense Accounts Payable
200.00
12/05 5435 12/05 5435
1120 4110
Accounts Receivable Consulting Fees
2,765.00
12/06 2516 12/06 2516
1130 2110
Supplies Accounts Payable
160.00
12/06 3832 12/06 3832
5160 1110
Automobile Expense Cash
347.65
12/07 2517 12/07 2517
5185 2110
Repair & Maintenance Accounts Payable
325.00
12/07 3833 12/07 3833
5140 1110
Travel/Entertainment Exp. Cash
120.00
12/09 3834 12/09 3834
2110 1110
Accounts Payable Cash
137.42
12/09 2518 12/09 2518
1130 2110
Supplies Accounts Payable
239.95
12/09 5436 12/09 5436
1120 4110
Accounts Receivable Consulting Fees
1,500.00
12/12 5437 12/12 5437
1120 4110
Accounts Receivable Consulting Fees
4,000.00
12/13 2519 12/13 2519
5190 2110
Advertising Expense Accounts Payable
635.00
12/14 3835 12/14 3835
5195 1110
Dues & Subscriptions Cash
235.00
12/15 5435 12/15 5435
1110 1120
Cash Accounts Receivable
2,765.00
12/16 3836 12/16 3836
5200 1110
Charitable Contrib. Exp. Cash
Credit
1,200.00 1,200.00 298.71 37.65 200.00 2,765.00 160.00 347.65 325.00 120.00 137.42 239.95 1,500.00 4,000.00 635.00 235.00 2,765.00 35.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
35.00
Chapter 2 - Manual
Page 14
4/12/2024
12/19 5434 12/19 5434
1110 1120
Cash Accounts Receivable
3,750.00
12/20 5438 12/20 5438
1120 4110
Accounts Receivable Consulting Fees
1,000.00
12/21 2520 12/21 2520
1130 2110
Supplies Accounts Payable
105.00
12/23 3837 12/23 3837
2110 1110
Accounts Payable Cash
145.00
12/27 3838 12/27 3838
2110 1110
Accounts Payable Cash
215.00
12/29 5433 12/29 5433
1110 1120
Cash Accounts Receivable
12/30 3839 12/30 3839
2110 1110
Accounts Payable Cash
12/30 5436 12/30 5436
1110 1120
Cash Accounts Receivable
1,000.00
12/30 3840 12/30 3840
5120 1110
Salary Expense Cash
2,054.38
12/30 3841 12/30 3841
3120 1110
Joyce Morrow, Drawing Cash
3,150.00
Totals
3,750.00 1,000.00 105.00 145.00 215.00 3,250.00 3,250.00 309.10 309.10 1,000.00 2,054.38 3,150.00 -------------- -------------29,979.86 29,979.86 ============== ==============
Morrow Consulting General Journal 12/30/-Date
Refer.
Acct.
Title
Debit
12/01 3829 12/01 3829
5110 1110
Rent Expense Cash
12/01 3830 12/01 3830
5150 1110
Telephone Expense Cash
298.71
12/02 3831 12/02 3831
5210 1110
Miscellaneous Expense Cash
37.65
12/05 2515 12/05 2515
5190 2110
Advertising Expense Accounts Payable
200.00
12/05 5435 12/05 5435
1120 4110
Accounts Receivable Consulting Fees
2,765.00
Credit
1,200.00 1,200.00 298.71 37.65 200.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
2,765.00
Chapter 2 - Manual
Page 15
4/12/2024
12/06 2516 12/06 2516
1130 2110
Supplies Accounts Payable
160.00
12/06 3832 12/06 3832
5160 1110
Automobile Expense Cash
347.65
12/07 2517 12/07 2517
5185 2110
Repair & Maintenance Accounts Payable
325.00
12/07 3833 12/07 3833
5140 1110
Travel/Entertainment Exp. Cash
120.00
12/09 3834 12/09 3834
2110 1110
Accounts Payable Cash
137.42
12/09 2518 12/09 2518
1130 2110
Supplies Accounts Payable
239.95
12/09 5436 12/09 5436
1120 4110
Accounts Receivable Consulting Fees
1,500.00
12/12 5437 12/12 5437
1120 4110
Accounts Receivable Consulting Fees
4,000.00
12/13 2519 12/13 2519
5190 2110
Advertising Expense Accounts Payable
635.00
12/14 3835 12/14 3835
5195 1110
Dues & Subscriptions Cash
235.00
12/15 5435 12/15 5435
1110 1120
Cash Accounts Receivable
2,765.00
12/16 3836 12/16 3836
5200 1110
Charitable Contrib. Exp. Cash
12/19 5434 12/19 5434
1110 1120
Cash Accounts Receivable
3,750.00
12/20 5438 12/20 5438
1120 4110
Accounts Receivable Consulting Fees
1,000.00
12/21 2520 12/21 2520
1130 2110
Supplies Accounts Payable
105.00
12/23 3837 12/23 3837
2110 1110
Accounts Payable Cash
145.00
12/27 3838 12/27 3838
2110 1110
Accounts Payable Cash
215.00
12/29 5433 12/29 5433
1110 1120
Cash Accounts Receivable
12/30 3839 12/30 3839
2110 1110
Accounts Payable Cash
160.00 347.65 325.00 120.00 137.42 239.95 1,500.00 4,000.00 635.00 235.00 2,765.00 35.00 35.00 3,750.00 1,000.00 105.00 145.00 215.00 3,250.00 3,250.00 309.10
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
309.10
Chapter 2 - Manual
Page 16
4/12/2024
12/30 5436 12/30 5436
1110 1120
Cash Accounts Receivable
1,500.00
12/30 3840 12/30 3840
5120 1110
Salary Expense Cash
2,054.38
12/30 3841 12/30 3841
3120 1110
Joyce Morrow, Drawing Cash
3,150.00
1,500.00 2,054.38 3,150.00 -------------- -------------30,479.86 30,479.86 ============== ==============
Totals
Morrow Consulting Trial Balance 12/30/-Acct. Number
Account Title
1110 1120 1130 1140 1510 1511 2110 3110 3120 4110 5110 5120 5130 5140 5150 5160 5170 5180 5185 5190 5195 5200 5210
Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum. Depr. Office Eqpt. Accounts Payable Joyce Morrow, Capital Joyce Morrow, Drawing Consulting Fees Rent Expense Salary Expense Supplies Expense Travel/Entertainment Exp. Telephone Expense Automobile Expense Depr. Exp. Office Eqpt. Insurance Expense Repair & Maintenance Advertising Expense Dues & Subscriptions Charitable Contrib. Exp. Miscellaneous Expense
Debit
Totals
Credit
12,022.26 2,417.31 1,487.45 435.00 48,122.00 15,235.75 1,118.61 36,458.74 36,650.00 119,172.73 17,400.00 22,549.76 4,618.77 4,677.80 2,778.72 6,768.33 4,430.63 787.25 725.00 4,010.00 385.00 345.00 1,375.55 ----------------- ----------------171,985.83 171,985.83 ================= =================
Morrow Consulting General Journal 12/31/-Date
Refer.
12/31 Adj.Ent.
Acct.
Title
Debit
5180
Insurance Expense
80.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Credit
Chapter 2 - Manual
Page 17
4/12/2024
12/31 Adj.Ent.
1140
Prepaid Insurance
12/31 Adj.Ent. 12/31 Adj.Ent.
5130 1130
Supplies Expense Supplies
253.25
12/31 Adj.Ent. 12/31 Adj.Ent.
5170 1511
Depr. Exp. Office Eqpt. Accum. Depr. Office Eqpt.
419.63
Totals
80.00 253.25 419.63 -------------- -------------752.88 752.88 ============== ==============
Morrow Consulting Income Statement For Year Ended 12/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Consulting Fees Total Operating Revenue
9,265.00 100.00 119,172.73 100.00 ------------- ------------- ------------- ---------9,265.00 100.00 119,172.73 100.00
Operating Expenses Rent Expense Salary Expense Supplies Expense Travel/Entertainment Exp. Telephone Expense Automobile Expense Depr. Exp. Office Eqpt. Insurance Expense Repair & Maintenance Advertising Expense Dues & Subscriptions Charitable Contrib. Exp. Miscellaneous Expense Total Operating Expenses Net Income
1,200.00 12.95 17,400.00 14.60 2,054.38 22.17 22,549.76 18.92 253.25 2.73 4,872.02 4.09 120.00 1.30 4,677.80 3.93 298.71 3.22 2,778.72 2.33 347.65 3.75 6,768.33 5.68 419.63 4.53 4,850.26 4.07 80.00 0.86 867.25 0.73 325.00 3.51 725.00 0.61 835.00 9.01 4,010.00 3.36 235.00 2.54 385.00 0.32 35.00 0.38 345.00 0.29 37.65 0.41 1,375.55 1.15 ------------- ------------- ------------- ---------6,241.27 67.36 71,604.69 60.08 ------------- ------------- ------------- ---------3,023.73 32.64 47,568.04 39.92 ============= ============= ============= ==========
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
Page 18
4/12/2024
Morrow Consulting Statement of Owner's Equity For Year Ended 12/31/-Joyce Morrow, Capital (Beg. of Period) Joyce Morrow, Drawing Net Income Joyce Morrow, Capital (End of Period)
36,458.74 -36,650.00 47,568.04 ------------47,376.78 =============
Morrow Consulting Balance Sheet 12/31/-Assets Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum. Depr. Office Eqpt.
12,022.26 2,417.31 1,234.20 355.00 48,122.00 -15,655.38 -------------
Total Assets
48,495.39 =============
Liabilities Accounts Payable Total Liabilities
1,118.61 ------------1,118.61
Owner's Equity © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
Joyce Morrow, Capital Joyce Morrow, Drawing Net Income Total Owner's Equity Total Liabilities & Equity
Page 19
4/12/2024
36,458.74 -36,650.00 47,568.04 ------------47,376.78 ------------48,495.39 =============
Morrow Consulting Bank Reconciliation 12/31/-© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
Page 20
4/12/2024
Checkbook Balance
12022.26
Plus Bank Credits: 219.62 -------------219.62 Less Bank Charges: 17.50 -------------17.50 -------------12224.38 ==============
Adjusted Checkbook Balance Bank Statement Balance
6832.86
Plus Outstanding Deposits: 2765.00 3750.00 3250.00 1500.00 -------------11265.00 Less Outstanding Checks: 3837 3838 3839 3840 3841
145.00 215.00 309.10 2054.38 3150.00 -------------5873.48 -------------12224.38 ==============
Adjusted Bank Balance INTEROFFICE MEMORANDUM TO:
Joyce Morrow, Owner
FROM:
Student Name
DATE:
(Today's Date)
SUBJECT: Cash Received As per your request, the following report reflects the cash received during the month of December: Student Name Morrow Consulting Cash Receipts As Of 12/31/-Date
Refer.
Acct.
Title
Debit
Credit
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
Page 21
4/12/2024
15-Dec 15-Dec
5435 5435
1110 1120
Cash Accounts Receivable
$2,765.00
19-Dec 19-Dec
5434 5434
1110 1120
Cash Accounts Receivable
$3,750.00
29-Dec 29-Dec
5433 5433
1110 1120
Cash Accounts Receivable
$3,250.00
30-Dec 30-Dec
5436 5436
1110 1120
Cash Accounts Receivable
$1,500.00
Totals
$2,765.00
$3,750.00
$3,250.00
------------$11,265.00
$1,500.00 ----------$11,265.00
=============
===========
Morrow Consulting General Journal 12/31/-Date
Refer.
Acct.
Title
Debit
12/31 Clo.Ent. 12/31 Clo.Ent.
4110 3130
Consulting Fees Income Summary
119,172.73
12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent.
3130 5110 5120 5130 5140 5150 5160 5170 5180 5185 5190 5195 5200 5210
Income Summary Rent Expense Salary Expense Supplies Expense Travel/Entertainment Exp. Telephone Expense Automobile Expense Depr. Exp. Office Eqpt. Insurance Expense Repair & Maintenance Advertising Expense Dues & Subscriptions Charitable Contrib. Exp. Miscellaneous Expense
71,604.69
12/31 Clo.Ent. 12/31 Clo.Ent.
3130 3110
Income Summary Joyce Morrow, Capital
47,568.04
12/31 Clo.Ent. 12/31 Clo.Ent.
3110 3120
Joyce Morrow, Capital Joyce Morrow, Drawing
36,650.00
Totals
Credit 119,172.73 17,400.00 22,549.76 4,872.02 4,677.80 2,778.72 6,768.33 4,850.26 867.25 725.00 4,010.00 385.00 345.00 1,375.55 47,568.04
36,650.00 -------------- -------------274,995.46 274,995.46 ============== ==============
Morrow Consulting Trial Balance 12/31/-© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 2 - Manual
Page 22
Acct. Number
Account Title
1110 1120 1130 1140 1510 1511 2110 3110
Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum. Depr. Office Eqpt. Accounts Payable Joyce Morrow, Capital Totals
4/12/2024
Debit
Credit
12,022.26 2,417.31 1,234.20 355.00 48,122.00 15,655.38 1,118.61 47,376.78 ----------------- ----------------64,150.77 64,150.77 ================= =================
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 2-B 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
$215.00 $30,479.86 $1,118.61 $4,010.00 $171,985.83 $752.88 $119,172.73 $6,241.27 60.08% $47,568.04 32.64% $47,376.78 $48,495.39 $1,118.61 Salary Expense and Rent Expense $12,224.38 $274,995.46 $64,150.77
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 3
Page 1
4/12/2024
Chapter 3
ACCOUNTS PAYABLE: PURCHASE ORDER PROCESSING AND INVENTORY CONTROL STUDENT EXERCISE I.
MATCHING
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
d h n g m l b j f a k e i c q o p
II. QUESTIONS 1. Out-of-stock conditions and lost sales may occur if merchandise inventory is too low. 2. The data from the purchase orders and vouchers/invoices previously entered have been automatically integrated into the inventory and general ledger, therefore, purging them will not cause any information to be lost. 3. The quantity 3, is added to the SPOTLESS Washer stock item's Quantity On-Order field in the Inventory system. 4. Inventory System Integration: The quantity 2, is deducted from the Quantity On-Order field and added to the Quantity On-Hand field of the Mini Washer & Dryer's inventory stock item. Accounting System Integration: The computer generates and posts a Purchases Journal entry that debits Merchandise Inventory $1,050.00 (2 X $525.00) and credits Accounts Payable $1,050.00. In addition, $1,050.00 is added to the RKC Production, Inc. account balance in the Vendor file. 5. Inventory System Integration: The quantity 2, is deducted from the Quantity On-Hand field of the S by S 19CF. Refrig. inventory stock item. Accounting System Integration: The computer generates and posts a General Journal entry that debits Accounts Payable $1,000.00 (2 X $500.00) and credits Merchandise Inventory $1,000.00. In addition, © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
Page 2
4/12/2024
$1,000.00 is deducted from the GC Manufacturing, Inc. account balance in the Vendor file. 6.
Accounting System Integration: The computer generates and posts a Cash Payments Journal entry that debits Accounts Payable $1,500.00, credits Cash $1,470.00 and credits Merchandise Inventory $30.00. In addition, $1,500.00 is deducted from the DELTA Appliances, Inc. account balance in the Vendor file.
7. The purchases journal report lists purchase invoices that have been entered into the computer for the current period. Purchases are displayed in date order in the general journal format. Each purchase invoice is shown with the total amount of expenditure due each vendor. 8. The cash payments journal report lists cash payments that have been entered into the computer for the current period. Cash payments are displayed in date order in the general journal format. Each cash payment is shown with the total amount of expenditure paid each vendor. 9. The schedule of accounts payable report shows the current balance for each vendor. 10. The accounts payable ledger report lists all activity by vendor. 11. The purchase order register lists the amount ordered from each vendor in numerical and date order during the processing period. 12. The voucher register lists the amount of expenditure due (or credited) each vendor in numerical and date order during the processing period. 13. The inventory list report provides the current status of each inventory item for reference and is useful in verifying the accuracy of inventory maintenance. 14. The inventory transactions report lists all transactions that have affected inventory items during the processing period. This report will help verify that all data have been recorded and entered correctly in the inventory system. 15. The inventory exceptions report lists items in the inventory that are out of stock and items that are at or below the reorder point. The report alerts management to items in the inventory that need attention.
PROBLEM 3-A Hayes Appliances Purchase Order Register 03/14/-P.O. Number
P.O. Date
Vendor Name
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
P.O. Amount
Manual - Chapter 3
505 506 507 508
Page 3
03/08/-03/08/-03/10/-03/13/--
4/12/2024
ICY Refrigeration Co. IDEAL Appliance Mfg. RKC Production, Inc. ICY Refrigeration Co.
3,375.00 2,440.00 1,350.00 4,275.00 ------------11,440.00 =============
Total Amount
Hayes Appliances Purchase Invoice Register 03/14/-Invoice Number
Invoice Date
Vendor Name
Invoice Amount
921 922 923 924 R919
03/08/-03/09/-03/12/-03/14/-03/11/--
SPOTLESS Mfg., Inc. MNT Refrigerators, Inc. RKC Production, Inc. MNT Refrigerators, Inc. ICY Refrigeration Co.
1,914.00 7,007.00 2,170.00 1,820.00 -237.95 ------------12,673.05 =============
Total Amount
Hayes Appliances Inventory List 03/14/-Stock No. Description
Unit On Meas. Hand
1010 1020 1040 2010 2020 2030 3010 3020 3030 3040 3050 3060 3070 3080 3090 4010 4020 4030 4040 5010 5020 5030
EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA
GC Washer SPOTLESS Washer Mini Washer & Dryer IDEAL Electric Dryer IDEAL Gas Dryer Mini Electric Dryer 1 Door 18 CF. Refrig. 1 Door 22 CF. Refrig. S by S 19 CF. Refrig. S by S 29 CF. Refrig. Top MNT 21 CF. Refrig. Top MNT 25 CF. Refrig. Mini FR. & Refrig. ICY 20 CF. Freezer Micro Refrig RKC Electric Range RKC Gas Range GC Electric Range GC Gas Range DELTA Dishwasher IDEAL Dishwasher Trash Compactor
19 19 19 24 9 11 18 17 15 11 17 14 14 6 0 21 14 0 0 15 20 13
On Order
Reorder Point
0 0 0 0 8 3 0 0 0 0 0 0 0 15 15 0 0 0 0 0 0 3
14 8 10 12 10 8 8 10 6 6 10 6 8 10 10 8 6 5 5 10 10 6
Last Cost
Retail Price
241.00 319.00 540.00 220.00 305.00 225.00 350.00 426.30 530.00 1112.30 455.00 510.00 237.95 285.00
349.95 529.95 798.00 359.95 429.95 379.95 529.95 699.00 789.00 1879.00 699.00 859.95 349.95 428.00 380.00 349.99 435.95 485.95 547.35 549.95 329.95 389.95
216.00 310.00 350.00 236.75 233.90
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
Page 4
4/12/2024
Hayes Appliances General Journal 03/14/-Date
Refer.
03/11 R919 03/11 R919
Acct.
Title
Debit
2110 1130
AP/ICY Refrigeration Co. Merchandise Inventory
237.95
Totals
Credit
237.95 -------------- -------------237.95 237.95 ============== ==============
Hayes Appliances Purchases Journal 03/14/-Date
Inv. No.
Acct.
Title
Debit
03/08 921 03/08 921
1130 2110
Merchandise Inventory AP/SPOTLESS Mfg., Inc.
1,914.00
03/09 922 03/09 922
1130 2110
Merchandise Inventory AP/MNT Refrigerators, Inc.
7,007.00
03/12 923 03/12 923
1130 2110
Merchandise Inventory AP/RKC Production, Inc.
2,170.00
03/14 924 03/14 924
1130 2110
Merchandise Inventory AP/MNT Refrigerators, Inc.
1,820.00
Totals
Credit 1,914.00 7,007.00 2,170.00
1,820.00 -------------- -------------12,911.00 12,911.00 ============== ==============
Hayes Appliances Cash Payments Journal 03/14/-Date
Ck. No.
Acct.
Title
03/12 4735 03/12 4735
2110 1110
AP/GC Manufacturing, Inc. Cash
1,590.00
03/13 4736 03/13 4736 03/13 4736
2110 1130 1110
AP/IDEAL Appliance Mfg. Merchandise Inventory Cash
710.25
03/14 4737 03/14 4737 03/14 4737
2110 1130 1110
AP/SPOTLESS Mfg., Inc. Merchandise Inventory Cash
1,914.00
Totals
Debit
Credit 1,590.00 14.21 696.04
38.28 1,875.72 -------------- -------------4,214.25 4,214.25 ============== ==============
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
Page 5
4/12/2024
Hayes Appliances General Ledger 03/14/-Account
Journal
Date
Refer.
1130-Merchandise Inventory Balance Forward Purchases 03/02 916 Purchases 03/03 917 Purchases 03/05 918 General 03/06 R917 Purchases 03/06 919 Cash Payments 03/06 4733 Purchases 03/07 920 Cash Payments 03/07 4734 Purchases 03/08 921 Purchases 03/09 922 General 03/11 R919 Purchases 03/12 923 Cash Payments 03/13 4736 Purchases 03/14 924 Cash Payments 03/14 4737
Debit
Credit
Balance
38.28
85,965.84Dr 88,125.84Dr 89,715.84Dr 91,465.84Dr 90,935.84Dr 93,791.24Dr 93,756.24Dr 94,466.49Dr 94,409.39Dr 96,323.39Dr 103,330.39Dr 103,092.44Dr 105,262.44Dr 105,248.23Dr 107,068.23Dr 107,029.95Dr
Credit
Balance
2,160.00 1,590.00 1,750.00 530.00 2,855.40 35.00 710.25 57.10 1,914.00 7,007.00 237.95 2,170.00 14.21 1,820.00
Hayes Appliances General Ledger 03/14/-Account
Journal
2110-Accounts Payable Balance Forward Purchases Purchases Purchases Cash Payments General Purchases Cash Payments Purchases Cash Payments Purchases Purchases General Purchases Cash Payments Cash Payments Purchases Cash Payments
Date
Refer.
03/02 916 03/03 917 03/05 918 03/05 4732 03/06 R917 03/06 919 03/06 4733 03/07 920 03/07 4734 03/08 921 03/09 922 03/11 R919 03/12 923 03/12 4735 03/13 4736 03/14 924 03/14 4737
Debit
2,160.00 1,590.00 1,750.00 2,160.00 530.00 2,855.40 1,750.00 710.25 2,855.40 1,914.00 7,007.00 237.95 2,170.00 1,590.00 710.25 1,820.00 1,914.00
Hayes Appliances Schedule of Accounts Payable 03/14/-© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
24,240.00Cr 26,400.00Cr 27,990.00Cr 29,740.00Cr 27,580.00Cr 27,050.00Cr 29,905.40Cr 28,155.40Cr 28,865.65Cr 26,010.25Cr 27,924.25Cr 34,931.25Cr 34,693.30Cr 36,863.30Cr 35,273.30Cr 34,563.05Cr 36,383.05Cr 34,469.05Cr
Manual - Chapter 3
Page 6
Name
4/12/2024
Balance
DELTA Appliances, Inc. GC Manufacturing, Inc. ICY Refrigeration Co. IDEAL Appliance Mfg. MNT Refrigerators, Inc. RKC Production, Inc. SPOTLESS Mfg., Inc.
3,995.00 3,640.65 5,247.55 3,475.00 8,827.00 4,405.85 4,878.00 ----------------34,469.05 =================
Total
Hayes Appliances Accounts Payable Ledger 03/14/-Account
Journal
Date
Refer.
DELTA Appliances, Inc. Balance Forward Purchases Cash Payments
03/05 918 03/06 4733
GC Manufacturing, Inc. Balance Forward Purchases General Cash Payments
03/03 917 03/06 R917 03/12 4735
ICY Refrigeration Co. Balance Forward Purchases Cash Payments General
03/06 919 03/07 4734 03/11 R919
IDEAL Appliance Mfg. Balance Forward Purchases Cash Payments
03/07 920 03/13 4736
MNT Refrigerators, Inc. Purchases Purchases
Debit
Credit
Balance
1,750.00
3,995.00Cr 5,745.00Cr 3,995.00Cr
1,750.00
1,590.00 530.00 1,590.00
2,855.40 2,855.40 237.95
4,170.65Cr 5,760.65Cr 5,230.65Cr 3,640.65Cr 5,485.50Cr 8,340.90Cr 5,485.50Cr 5,247.55Cr
710.25
3,475.00Cr 4,185.25Cr 3,475.00Cr
03/09 922 03/14 924
7,007.00 1,820.00
7,007.00Cr 8,827.00Cr
RKC Production, Inc. Balance Forward Purchases Cash Payments Purchases
03/02 916 03/05 4732 03/12 923
2,160.00
SPOTLESS Mfg., Inc. Balance Forward Purchases Cash Payments
03/08 921 03/14 4737
710.25
2,160.00 2,170.00
1,914.00 1,914.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
2,235.85Cr 4,395.85Cr 2,235.85Cr 4,405.85Cr 4,878.00Cr 6,792.00Cr 4,878.00Cr
Manual - Chapter 3
Page 7
4/12/2024
Hayes Appliances Inventory Transactions 03/14/-Date
Description
Purchase Orders 03/08 Micro Refrig 03/08 IDEAL Gas Dryer 03/10 Trash Compactor Mini Electric Dryer 03/13 ICY 20 CF. Freezer
Inv./ P.O.
Quantity Sold
Selling Price
Quan. Ord.
505 506 507
Quan. Recd.
Cost Price
15 8 3 3 15
508
Purchase Invoices 03/08 SPOTLESS Washer 921 03/09 1 Door 22 CF. Refrig. 922 S by S 29 CF. Refrig. 03/12 RKC Gas Range 923 03/14 Top MNT 21 CF. Refrig. 924 03/11 Mini FR. & Refrig. R919
6 319.00 6 426.30 4 1,112.30 7 310.00 4 455.00 -1 237.95 ------- ------44 26 ======= =======
--------Totals ========= Hayes Appliances Inventory Exceptions 03/14/-Stock No.
Description
Unit Meas
On Hand
On Order
2020 3080 3090 4030 4040
IDEAL Gas Dryer ICY 20 CF. Freezer Micro Refrig GC Electric Range GC Gas Range
EA EA EA EA EA
9 6 0 0 0
8 15 15
Reorder Point Exception 10 10 10 5 5
At/below reorder point At/below reorder point Out of stock Out of stock Out of stock
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
Page 8
4/12/2024
Student Name Hayes Appliances Value at Retail As Of 03/14/-Stock No. 1010 1020 1040 2010 2020
Description GC Washer SPOTLESS Washer Mini Washer & Dryer IDEAL Electric Dryer IDEAL Gas Dryer
Unit Meas.
On Hand
On Order
Reorder Point
EA EA EA EA EA
19 19 19 24 9
0 0 0 0 8
14 8 10 12 10
Last Cost
Retail Price
Value at Retail
$241.00 $319.00 $540.00 $220.00 $305.00
$349.95 $529.95 $798.00 $359.95 $429.95
$6,649.05 $10,069.05 $15,162.00 $8,638.80 $3,869.55
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
2030 3010 3020 3030 3040 3050 3060 3070 3080 3090 4010 4020 4030 4040 5010 5020 5030
Mini Electric Dryer 1 Door 18 CF. Refrig. 1 Door 22 CF. Refrig. S by S 19 CF. Refrig. S by S 29 CF. Refrig. Top MNT 21 CF. Refrig. Top MNT 25 CF. Refrig. Mini FR. & Refrig. ICY 20 CF. Freezer Micro Refrig RKC Electric Range RKC Gas Range GC Electric Range GC Gas Range DELTA Dishwasher IDEAL Dishwasher Trash Compactor
Page 9
EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA
11 18 17 15 11 17 14 14 6 0 21 14 0 0 15 20 13
4/12/2024
3 0 0 0 0 0 0 0 15 15 0 0 0 0 0 0 3
8 8 10 6 6 10 6 8 10 10 8 6 5 5 10 10 6
$225.00 $350.00 $426.30 $530.00 $1,112.30 $455.00 $510.00 $237.95 $285.00 $216.00 $310.00
$350.00 $236.75 $233.90
$379.95 $529.95 $699.00 $789.00 $1,879.00 $699.00 $859.95 $349.95 $428.00 $380.00 $349.99 $435.95 $485.95 $547.35 $549.95 $329.95 $389.95
$4,179.45 $9,539.10 $11,883.00 $11,835.00 $20,669.00 $11,883.00 $12,039.30 $4,899.30 $2,568.00 $0.00 $7,349.79 $6,103.30 $0.00 $0.00 $8,249.25 $6,599.00 $5,069.35 $167,254.29
MEMORANDUM TO:
Hayes Appliances
FROM:
Student Name
DATE:
(Today's Date)
SUBJECT:
Inventory items that are on order
As of the end of the current week, Hagan Appliances inventory items that are on order are listed below. I have included the last cost and retail price of each item as well as additional information for your financial planning. Stock No. Description
Unit On Meas. Hand
2020 2030 3080 3090 5030
EA EA EA EA EA
IDEAL Gas Dryer Mini Electric Dryer ICY 20 CF. Freezer Micro Refrig Trash Compactor
9 11 6 0 13
On Order
Reorder Point
Last Cost
Retail Price
8 3 15 15 3
10 8 10 10 6
305.00 225.00 285.00
429.95 379.95 428.00 380.00 389.95
233.90
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 3-A 1. $11,440.00 2. $12,673.05 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
Page 10
4/12/2024
3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
$216.00 10 13 $12,911.00 $4,214.25 $107,029.95 $34,563.05 $34,469.05 44 26 GC Electric Range GC Gas Range 14. Mini Washer & Dryer
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
Page 11
4/12/2024
PROBLEM 3-B Hayes Appliances Purchase Order Register 03/14/-P.O. Number
P.O. Date
Vendor Name
P.O. Amount
505 506 507 508
03/08/-03/08/-03/10/-03/13/--
ICY Refrigeration Co. IDEAL Appliance Mfg. RKC Production, Inc. ICY Refrigeration Co.
3,375.00 1,830.00 1,340.00 2,850.00 ------------9,395.00 =============
Total Amount
Hayes Appliances Purchase Invoice Register 03/14/-Invoice Number
Invoice Date
Vendor Name
Invoice Amount
921 922 923 924 R919
03/08/-03/09/-03/12/-03/14/-03/11/--
SPOTLESS Mfg., Inc. MNT Refrigerators, Inc. RKC Production, Inc. MNT Refrigerators, Inc. ICY Refrigeration Co.
957.00 5,468.40 2,170.00 1,820.00 -475.90 ------------9,939.50 =============
Total Amount
Hayes Appliances Inventory List 03/14/-Stock No. Description
Unit On Meas. Hand
1010 1020 1040 2010 2020 2030 3010 3020 3030 3040 3050 3060 3070 3080 3090
EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA
GC Washer SPOTLESS Washer Mini Washer & Dryer IDEAL Electric Dryer IDEAL Gas Dryer Mini Electric Dryer 1 Door 18 CF. Refrig. 1 Door 22 CF. Refrig. S by S 19 CF. Refrig. S by S 29 CF. Refrig. Top MNT 21 CF. Refrig. Top MNT 25 CF. Refrig. Mini FR. & Refrig. ICY 20 CF. Freezer Micro Refrig
19 16 19 24 9 11 18 16 15 10 17 14 13 6 0
On Order
Reorder Point
0 3 0 0 6 4 0 1 0 1 0 0 0 10 15
10 8 10 12 10 8 12 10 6 6 10 6 8 10 10
Last Cost
Retail Price
241.00 319.00 540.00 220.00 305.00 225.00 350.00 426.30 530.00 1112.30 455.00 510.00 237.95 285.00
359.95 529.95 798.00 359.95 429.95 379.95 525.00 699.00 789.00 1899.00 699.00 859.95 349.95 428.00 380.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
Page 12
4010 4020 4030 5010 5020 5030 5040
EA EA EA EA EA EA EA
RKC Electric Range RKC Gas Range Mini Gas Range DELTA Dishwasher IDEAL Dishwasher Trash Compactor Garbage Disposal
4/12/2024
21 14 0 15 20 13 0
0 0 0 0 0 2 0
8 6 6 10 10 6 8
216.00 310.00 350.00 236.75 233.90
349.99 435.95 199.95 539.95 329.95 389.95 135.50
Hayes Appliances General Journal 03/14/-Date
Refer.
03/11 R919 03/11 R919
Acct.
Title
Debit
2110 1130
AP/ICY Refrigeration Co. Merchandise Inventory
475.90
Totals
Credit
475.90 -------------- -------------475.90 475.90 ============== ==============
Hayes Appliances Purchases Journal 03/14/-Date
Inv. No.
Acct.
Title
Debit
03/08 921 03/08 921
1130 2110
Merchandise Inventory AP/SPOTLESS Mfg., Inc.
957.00
03/09 922 03/09 922
1130 2110
Merchandise Inventory AP/MNT Refrigerators, Inc.
5,468.40
03/12 923 03/12 923
1130 2110
Merchandise Inventory AP/RKC Production, Inc.
2,170.00
03/14 924 03/14 924
1130 2110
Merchandise Inventory AP/MNT Refrigerators, Inc.
1,820.00
Totals
Credit 957.00 5,468.40 2,170.00
1,820.00 -------------- -------------10,415.40 10,415.40 ============== ==============
Hayes Appliances Cash Payments Journal 03/14/-Date
Ck. No.
Acct.
Title
Debit
03/12 4735 03/12 4735
2110 1110
AP/GC Manufacturing, Inc. Cash
1,590.00
03/13 4736 03/13 4736 03/13 4736
2110 1130 1110
AP/IDEAL Appliance Mfg. Merchandise Inventory Cash
710.25
Credit 1,590.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
14.21 696.04
Manual - Chapter 3
03/14 4737 03/14 4737 03/14 4737
Page 13
2110 1130 1110
4/12/2024
AP/SPOTLESS Mfg., Inc. Merchandise Inventory Cash
957.00 19.14 937.86 -------------- -------------3,257.25 3,257.25 ============== ==============
Totals
Hayes Appliances General Ledger 03/14/-Account
Journal
Date
Refer.
1130-Merchandise Inventory Balance Forward Purchases 03/02 916 Purchases 03/03 917 Purchases 03/05 918 General 03/06 R917 Purchases 03/06 919 Cash Payments 03/06 4733 Purchases 03/07 920 Cash Payments 03/07 4734 Purchases 03/08 921 Purchases 03/09 922 General 03/11 R919 Purchases 03/12 923 Cash Payments 03/13 4736 Purchases 03/14 924 Cash Payments 03/14 4737
Debit
Credit
Balance
19.14
85,965.84Dr 88,125.84Dr 89,715.84Dr 91,465.84Dr 90,935.84Dr 93,791.24Dr 93,756.24Dr 94,466.49Dr 94,409.39Dr 95,366.39Dr 100,834.79Dr 100,358.89Dr 102,528.89Dr 102,514.68Dr 104,334.68Dr 104,315.54Dr
Credit
Balance
2,160.00 1,590.00 1,750.00 530.00 2,855.40 35.00 710.25 57.10 957.00 5,468.40 475.90 2,170.00 14.21 1,820.00
Hayes Appliances General Ledger 03/14/-Account
Journal
2110-Accounts Payable Balance Forward Purchases Purchases Purchases Cash Payments General Purchases Cash Payments Purchases Cash Payments Purchases Purchases General Purchases Cash Payments Cash Payments Purchases
Date
Refer.
03/02 916 03/03 917 03/05 918 03/05 4732 03/06 R917 03/06 919 03/06 4733 03/07 920 03/07 4734 03/08 921 03/09 922 03/11 R919 03/12 923 03/12 4735 03/13 4736 03/14 924
Debit
2,160.00 1,590.00 1,750.00 2,160.00 530.00 2,855.40 1,750.00 710.25 2,855.40 957.00 5,468.40 475.90 2,170.00 1,590.00 710.25 1,820.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
24,240.00Cr 26,400.00Cr 27,990.00Cr 29,740.00Cr 27,580.00Cr 27,050.00Cr 29,905.40Cr 28,155.40Cr 28,865.65Cr 26,010.25Cr 26,967.25Cr 32,435.65Cr 31,959.75Cr 34,129.75Cr 32,539.75Cr 31,829.50Cr 33,649.50Cr
Manual - Chapter 3
Cash Payments
Page 14
03/14 4737
4/12/2024
957.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
32,692.50Cr
Manual - Chapter 3
Page 15
4/12/2024
Hayes Appliances Schedule of Accounts Payable 03/14/-Name
Balance
DELTA Appliances, Inc. GC Manufacturing, Inc. ICY Refrigeration Co. IDEAL Appliance Mfg. MNT Refrigerators, Inc. RKC Production, Inc. SPOTLESS Mfg., Inc.
3,995.00 3,640.65 5,009.60 3,475.00 7,288.40 4,405.85 4,878.00 ----------------32,692.50 =================
Total
Hayes Appliances Accounts Payable Ledger 03/14/-Account
Journal
Date
Refer.
DELTA Appliances, Inc. Balance Forward Purchases Cash Payments
03/05 918 03/06 4733
GC Manufacturing, Inc. Balance Forward Purchases General Cash Payments
03/03 917 03/06 R917 03/12 4735
ICY Refrigeration Co. Balance Forward Purchases Cash Payments General
03/06 919 03/07 4734 03/11 R919
IDEAL Appliance Mfg. Balance Forward Purchases Cash Payments
03/07 920 03/13 4736
MNT Refrigerators, Inc. Purchases Purchases RKC Production, Inc. Balance Forward Purchases Cash Payments Purchases
Debit
Credit
Balance
1,750.00
3,995.00Cr 5,745.00Cr 3,995.00Cr
1,750.00
1,590.00 530.00 1,590.00
2,855.40 2,855.40 475.90
4,170.65Cr 5,760.65Cr 5,230.65Cr 3,640.65Cr 5,485.50Cr 8,340.90Cr 5,485.50Cr 5,009.60Cr
710.25
3,475.00Cr 4,185.25Cr 3,475.00Cr
03/09 922 03/14 924
5,468.40 1,820.00
5,468.40Cr 7,288.40Cr
03/02 916 03/05 4732 03/12 923
2,160.00
710.25
2,160.00 2,170.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
2,235.85Cr 4,395.85Cr 2,235.85Cr 4,405.85Cr
Manual - Chapter 3
SPOTLESS Mfg., Inc. Balance Forward Purchases Cash Payments
Page 16
4/12/2024
03/08 921 03/14 4737
957.00 957.00
4,878.00Cr 5,835.00Cr 4,878.00Cr
Hayes Appliances Inventory Transactions 03/14/-Date
Description
Purchase Orders 03/08 Micro Refrig 03/08 IDEAL Gas Dryer 03/10 Trash Compactor Mini Electric Dryer 03/13 ICY 20 CF. Freezer
Inv./ P.O.
Quantity Sold
Selling Price
Quan. Ord.
505 506 507
Quan. Recd.
Cost Price
15 6 2 4 10
508
Purchase Invoices 03/08 SPOTLESS Washer 921 03/09 1 Door 22 CF. Refrig. 922 S by S 29 CF. Refrig. 03/12 RKC Gas Range 923 03/14 Top MNT 21 CF. Refrig. 924 03/11 Mini FR. & Refrig. R919
3 319.00 5 426.30 3 1,112.30 7 310.00 4 455.00 -2 237.95 ------- ------37 20 ======= =======
--------Totals =========
Hayes Appliances Inventory Exceptions 03/14/-Stock No.
Description
Unit Meas
On Hand
On Order
2020 3080 3090 4030 5040
IDEAL Gas Dryer ICY 20 CF. Freezer Micro Refrig Mini Gas Range Garbage Disposal
EA EA EA EA EA
9 6 0 0 0
6 10 15
Reorder Point Exception 10 10 10 6 8
At/below reorder point At/below reorder point Out of stock Out of stock Out of stock
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
Page 17
4/12/2024
Student Name Hayes Appliances Value at Retail As Of 03/14/-Stock No. 1010 1020 1040 2010 2020 2030
Description GC Washer SPOTLESS Washer Mini Washer & Dryer IDEAL Electric Dryer IDEAL Gas Dryer Mini Electric Dryer
Unit Meas.
On Hand
On Order
Reorder Point
EA EA EA EA EA EA
19 16 19 24 9 11
0 3 0 0 6 4
10 8 10 12 10 8
Last Cost
Retail Price
Value at Retail
$241.00 $319.00 $540.00 $220.00 $305.00 $225.00
$359.95 $529.95 $798.00 $359.95 $429.95 $379.95
$6,839.05 $8,479.20 $15,162.00 $8,638.80 $3,869.55 $4,179.45
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
3010 3020 3030 3040 3050 3060 3070 3080 3090 4010 4020 4030 5010 5020 5030 5040
1 Door 18 CF. Refrig. 1 Door 22 CF. Refrig. S by S 19 CF. Refrig. S by S 29 CF. Refrig. Top MNT 21 CF. Refrig. Top MNT 25 CF. Refrig. Mini FR. & Refrig. ICY 20 CF. Freezer Micro Refrig RKC Electric Range RKC Gas Range Mini Gas Range DELTA Dishwasher IDEAL Dishwasher Trash Compactor Garbage Disposal
Page 18
EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA
18 16 15 10 17 14 13 6 0 21 14 0 15 20 13 0
4/12/2024
0 1 0 1 0 0 0 10 15 0 0 0 0 0 2 0
12 10 6 6 10 6 8 10 10 8 6 6 10 10 6 8
$350.00 $426.30 $530.00 $1,112.30 $455.00 $510.00 $237.95 $285.00 $216.00 $310.00 $350.00 $236.75 $233.90
$525.00 $699.00 $789.00 $1,899.00 $699.00 $859.95 $349.95 $428.00 $380.00 $349.99 $435.95 $199.95 $539.95 $329.95 $389.95 $135.50
$9,450.00 $11,184.00 $11,835.00 $18,990.00 $11,883.00 $12,039.30 $4,549.35 $2,568.00 $0.00 $7,349.79 $6,103.30 $0.00 $8,099.25 $6,599.00 $5,069.35 $0.00 $162,887.39
MEMORANDUM TO:
Hayes Appliances
FROM:
Student Name
DATE:
(Today's Date)
SUBJECT:
Inventory items that are on order
As of the end of the current week, Hagan Appliances inventory items that are on order are listed below. I have included the last cost and retail price of each item as well as additional information for your financial planning. Stock No. Description
Unit On Meas. Hand
1020 2020 2030 3020 3040 3080 3090 5030
EA EA EA EA EA EA EA EA
SPOTLESS Washer IDEAL Gas Dryer Mini Electric Dryer 1 Door 22 CF. Refrig. S by S 29 CF. Refrig. ICY 20 CF. Freezer Micro Refrig Trash Compactor
16 9 11 16 10 6 0 13
On Order
Reorder Point
3 6 4 1 1 10 15 2
8 10 8 10 6 10 10 6
Last Cost
Retail Price
319.00 305.00 225.00 426.30 1112.30 285.00
529.95 429.95 379.95 699.00 1899.00 428.00 380.00 389.95
233.90
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 3-B 1. $9,395.00 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 3
2. 3. 4. 5. 6.
$9,939.50 $319.00 $859.95 20 $10,415.40
7. 8. 9. 10. 11. 12. 13.
$3,257.25 $104,315.54 $31,959.75 $32,692.50 37 20 Mini Gas Range Garbage Disposal Mini FR. & Refrig.
14.
Page 19
4/12/2024
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use
Manual - Chapter 4
Page 1
4/12/2024
Chapter 4
ACCOUNTS RECEIVABLE: SALES ORDER PROCESSING AND INVENTORY CONTROL STUDENT EXERCISES I.
MATCHING
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
e d b c a f g h l k i j
II. QUESTIONS 1. a. Updates the inventory. b. Creates and enters journal entries in the sales journal. c. Posts the journal entries to the general ledger. d. Updates the customer’s account in the customer file. e. Generates a sales invoice. 2. The quantity returned is entered as a negative value. 3. a. Click on the List button to display a list of existing invoices. b. Choose the invoice to be changed from the list. c. Select the text box or grid cell containing the data you wish to change and enter the correction. d. Click OK. 4. The terms 2/10, n/30 mean that the customer either can pay the invoice within ten days of the invoice date and take a 2 percent discount off the merchandise, or can wait 30 days and then pay the full amount of the invoice. 5. The totals at the bottom of the invoice consist of a subtotal of the merchandise sold, the total sales tax, and the total of the invoice (subtotal plus sales tax). 6. Inventory System Integration: Quantity 1, is deducted from Quantity On-Hand, added to Yearly Quantity Sold, and $325.00 added to Yearly Dollars Sold of the Wet & Day Vacuum inventory stock item. Accounting System Integration: Debit Credit Accounts Receivable $344.50 Sales $325.00 Sales Tax Payable $19.50 Cost of Merchandise Sold $185.00 Merchandise Inventory $185.00 In addition, $344.50 is added to Robert Thorson's account balance in the customer file. © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
7.
Page 2
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Accounting System Integration: Cash Sales Discount Accounts Receivable
Debit $4,165.00 $85.00
Credit $4,250.00
In addition, $4,250.00 is deducted from the Wingler Motel account balance in the customer file. 8. Because the data from the sales invoices (as well as purchases invoices and purchase orders) previously entered have been automatically integrated into the inventory and accounting systems, purging them will not cause any information to be lost. 9. The computer uses the history of an item's cost and quantity to calculate the weighted average cost and generate the cost of merchandise sold and merchandise inventory parts of the sales journal entry. In the case where no previous transactions are available (due to inactivity or purging of the invoices and purchases orders), the computer uses the average cost previously calculated and stored in the inventory stock item's record. 10. With the LIFO method, the assumption is made that the last items received into inventory are the first to be sold. 11. With the FIFO method, the assumption is made that the first items received into inventory are the first sold.
PROBLEM 4-A
Only the first purchase order for the period is shown. The accuracy of the information in the inventory transaction and purchase orders register will determine the accuracy of each purchase order. © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Page 3
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Only the first purchase invoice for the period is shown. The accuracy of the information in the inventory transaction, purchase invoice register, and purchases journal reports will determine the accuracy of each purchase invoice.
Only the first sales invoice for the period is shown. The accuracy of the information in the inventory transaction, sales invoice register, and sales journal reports will determine the accuracy of each sales invoice. © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Page 4
4/12/2024
Vetter Vacuum Center Purchase Order Register 02/14/-P.O. Number
P.O. Date
Vendor Name
P.O. Amount
277 278
02/08/-02/14/--
Handy Manufacturing, Inc. Nantz Vacuum Cleaner Co.
1,592.00 960.00 ------------2,552.00 =============
Total Amount
Vetter Vacuum Center Purchase Invoice Register 02/14/-Invoice Number
Invoice Date
Vendor Name
Invoice Amount
859 860
02/11/-02/12/--
Handy Manufacturing, Inc. Royal Accessories, Inc.
171.20 122.30 ------------293.50 =============
Total Amount Vetter Vacuum Center Sales Invoice Register 02/14/-Invoice Number
Invoice Date
Customer Name
531 532 533 534 535 536 537 R530
02/08/-02/09/-02/10/-02/11/-02/12/-02/13/-02/14/-02/10/--
Fraze Department Stores Jennifer Martens Wingler Motel Robert Thorson Bassett Cleaning, Inc. Lilly Industries, Inc. Matthew Cornish Wingler Motel Total Amount
Invoice Amount
Sales Tax
1,112.30 77.86 238.99 16.73 1,930.82 135.16 68.90 4.82 469.60 32.87 997.34 69.81 325.00 22.75 -485.00 -33.95 ----------- ----------4,657.95 326.05 =========== ===========
Vetter Vacuum Center General Journal 02/14/-Date
Refer.
02/10 R530 02/10 R530 02/10 R530
Acct.
Title
Debit
4120 2120 1130
Sales Returns & Allow. Sales Tax Payable AR/Wingler Motel
485.00 33.95
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Credit
518.95
Manual - Chapter 4
02/10 R530 02/10 R530
Page 5
5110 1140
Cost of Merchandise Sold Merchandise Inventory Totals
4/12/2024
315.25 315.25 -------------- -------------834.20 834.20 ============== ==============
Vetter Vacuum Center Purchases Journal 02/14/-Date
Inv. No.
Acct.
Title
Debit
02/11 859 02/11 859
1140 2110
Merchandise Inventory AP/Handy Manufacturing, In
171.20
02/12 860 02/12 860
1140 2110
Merchandise Inventory AP/Royal Accessories, Inc.
122.30
Totals
Credit 171.20
122.30 -------------- -------------293.50 293.50 ============== ==============
Vetter Vacuum Center Cash Payments Journal 02/14/-Date
Ck. No.
Acct.
Title
Debit
02/13 3621 02/13 3621 02/13 3621
2110 1140 1110
AP/Handy Manufacturing, In Merchandise Inventory Cash
171.20
02/14 3622 02/14 3622
2110 1110
AP/Royal Accessories, Inc. Cash
511.20
Totals
Credit 3.42 167.78
511.20 -------------- -------------682.40 682.40 ============== ==============
Vetter Vacuum Center Sales Journal 02/14/-Date
Inv. No.
Acct.
Title
Debit
02/08 531 02/08 531 02/08 531 02/08 531 02/08 531
1130 4110 2120 5110 1140
AR/Fraze Department Stores Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
1,190.16
02/09 532 02/09 532 02/09 532 02/09 532 02/09 532
1130 4110 2120 5110 1140
AR/Jennifer Martens Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
255.72
Credit 1,112.30 77.86
693.75 693.75 238.99 16.73 166.50
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
166.50
Manual - Chapter 4
Page 6
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02/10 533 02/10 533 02/10 533 02/10 533 02/10 533
1130 4110 2120 5110 1140
AR/Wingler Motel Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
2,065.98
02/11 534 02/11 534 02/11 534 02/11 534 02/11 534
1130 4110 2120 5110 1140
AR/Robert Thorson Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
73.72
02/12 535 02/12 535 02/12 535 02/12 535 02/12 535
1130 4110 2120 5110 1140
AR/Bassett Cleaning, Inc. Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
502.47
02/13 536 02/13 536 02/13 536 02/13 536 02/13 536
1130 4110 2120 5110 1140
AR/Lilly Industries, Inc. Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
1,067.15
02/14 537 02/14 537 02/14 537 02/14 537 02/14 537
1130 4110 2120 5110 1140
AR/Matthew Cornish Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
347.75
Totals
1,930.82 135.16 1,159.70 1,159.70 68.90 4.82 43.75 43.75 469.60 32.87 323.10 323.10 997.34 69.81 601.95 601.95 325.00 22.75 185.00 185.00 -------------- -------------8,676.70 8,676.70 ============== ==============
Vetter Vacuum Center Cash Receipts Journal 02/14/-Date
Refer.
Acct.
Title
Debit
02/10 525 02/10 525 02/10 525
1110 4130 1130
Cash Sales Discount AR/Lilly Industries, Inc.
812.09 16.57
02/12 527 02/12 527 02/12 527
1110 4130 1130
Cash Sales Discount AR/Bassett Cleaning, Inc.
890.95 18.18
02/13 518 02/13 518
1110 1130
Cash AR/Broderick Company Totals
Credit
828.66
909.13 7,594.73 7,594.73 -------------- -------------9,332.52 9,332.52 ============== ==============
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
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Vetter Vacuum Center General Ledger 02/14/-Account
Journal
1130-Accounts Receivable Sales Sales Sales Cash Receipts Sales Cash Receipts Sales Sales Sales Cash Receipts Sales Sales Cash Receipts Sales Sales Cash Receipts Sales Sales General Cash Receipts Sales Sales Sales Sales General Cash Receipts Sales Sales Cash Receipts Sales Cash Receipts Sales
Date
Refer.
01/24 517 01/25 518 01/26 519 01/27 519 01/27 520 01/28 520 01/28 521 01/29 522 01/30 523 01/31 522 01/31 524 02/02 525 02/03 524 02/03 526 02/04 527 02/05 523 02/05 528 02/06 529 02/06 R517 02/07 526 02/07 530 02/08 531 02/09 532 02/10 533 02/10 R530 02/10 525 02/11 534 02/12 535 02/12 527 02/13 536 02/13 518 02/14 537
Debit
Credit
8,968.82 7,594.73 1,884.78 1,884.78 108.81 108.81 8,540.84 868.83 547.60 868.83 3,703.19 828.66 3,703.19 213.98 909.13 547.60 347.75 1,076.84 25.36 213.98 1,088.62 1,190.16 255.72 2,065.98 518.95 828.66 73.72 502.47 909.13 1,067.15 7,594.73 347.75
Balance 8,968.82Dr 16,563.55Dr 18,448.33Dr 16,563.55Dr 16,672.36Dr 16,563.55Dr 25,104.39Dr 25,973.22Dr 26,520.82Dr 25,651.99Dr 29,355.18Dr 30,183.84Dr 26,480.65Dr 26,694.63Dr 27,603.76Dr 27,056.16Dr 27,403.91Dr 28,480.75Dr 28,455.39Dr 28,241.41Dr 29,330.03Dr 30,520.19Dr 30,775.91Dr 32,841.89Dr 32,322.94Dr 31,494.28Dr 31,568.00Dr 32,070.47Dr 31,161.34Dr 32,228.49Dr 24,633.76Dr 24,981.51Dr
Vetter Vacuum Center General Ledger 02/14/-Account
Journal
4110-Sales Sales Sales Sales Sales Sales Sales Sales Sales
Date
Refer.
01/24 517 01/25 518 01/26 519 01/27 520 01/28 521 01/29 522 01/30 523 01/31 524
Debit
Credit
Balance
8,461.15 7,164.84 1,778.09 102.65 8,057.40 819.65 516.60 3,493.58
8,461.15Cr 15,625.99Cr 17,404.08Cr 17,506.73Cr 25,564.13Cr 26,383.78Cr 26,900.38Cr 30,393.96Cr
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales
Page 8
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02/02 525 02/03 526 02/04 527 02/05 528 02/06 529 02/07 530 02/08 531 02/09 532 02/10 533 02/11 534 02/12 535 02/13 536 02/14 537
774.45 199.98 849.65 325.00 1,006.39 1,017.40 1,112.30 238.99 1,930.82 68.90 469.60 997.34 325.00
31,168.41Cr 31,368.39Cr 32,218.04Cr 32,543.04Cr 33,549.43Cr 34,566.83Cr 35,679.13Cr 35,918.12Cr 37,848.94Cr 37,917.84Cr 38,387.44Cr 39,384.78Cr 39,709.78Cr
4120-Sales Returns & Allow. General 02/06 R517 General 02/10 R530
23.70 485.00
23.70Dr 508.70Dr
4130-Sales Discount Cash Receipts Cash Receipts Cash Receipts Cash Receipts
37.70 74.06 16.57 18.18
37.70Dr 111.76Dr 128.33Dr 146.51Dr
01/27 519 02/03 524 02/10 525 02/12 527
Vetter Vacuum Center Trial Balance 02/14/-Acct. Number
Account Title
1110 1120 1130 1140 1150 1160 2110 2120 3110 3120 4110 4120 4130 5110 6110 6120 6130 6140 6150
Cash Petty Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Accounts Payable Sales Tax Payable Diane Vetter, Capital Diane Vetter, Drawing Sales Sales Returns & Allow. Sales Discount Cost of Merchandise Sold Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Utilities Expense Totals
Debit
Credit
38,252.22 150.00 24,981.51 32,530.90 2,500.00 1,500.00 10,747.55 2,440.14 79,645.44 6,000.00 39,709.78 508.70 146.51 24,359.30 130.00 105.00 850.00 207.60 321.17 ----------------- ----------------132,542.91 132,542.91 ================= =================
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
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Vetter Vacuum Center Schedule of Accounts Receivable 02/14/-Name
Balance
Bassett Cleaning, Inc. Broderick Company Fraze Department Stores Jennifer Martens Lilly Industries, Inc. Matthew Cornish Robert Thorson Wingler Motel
9,445.93 1,076.84 1,190.16 255.72 9,607.99 347.75 421.47 2,635.65 ----------------24,981.51 =================
Total
Vetter Vacuum Center Accounts Receivable Ledger 02/14/-Account
Journal
Date
Refer.
Debit
Credit
Balance
25.36 909.13
8,968.82Dr 9,877.95Dr 9,852.59Dr 10,355.06Dr 9,445.93Dr
7,594.73
7,594.73Dr 8,671.57Dr 1,076.84Dr
Bassett Cleaning, Inc. Sales Sales General Sales Cash Receipts
01/24 517 02/04 527 02/06 R517 02/12 535 02/12 527
8,968.82 909.13
Broderick Company Sales Sales Cash Receipts
01/25 518 02/06 529 02/13 518
7,594.73 1,076.84
Fraze Department Stores Sales Cash Receipts Sales
01/26 519 01/27 519 02/08 531
1,884.78
Jennifer Martens Sales Cash Receipts Sales
01/27 520 01/28 520 02/09 532
108.81
Lilly Industries, Inc. Sales Sales Cash Receipts Sales
01/28 521 02/02 525 02/10 525 02/13 536
8,540.84 828.66 1,067.15
8,540.84Dr 9,369.50Dr 8,540.84Dr 9,607.99Dr
Matthew Cornish Sales
01/29 522
868.83
868.83Dr
502.47
1,884.78
1,884.78Dr .00 1,190.16Dr
108.81
108.81Dr .00 255.72Dr
1,190.16
255.72
828.66
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Page 10
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Cash Receipts Sales Cash Receipts Sales
01/31 522 02/03 526 02/07 526 02/14 537
868.83
Robert Thorson Sales Cash Receipts Sales Sales
01/30 523 02/05 523 02/05 528 02/11 534
547.60
Wingler Motel Sales Cash Receipts Sales Sales General
01/31 524 02/03 524 02/07 530 02/10 533 02/10 R530
3,703.19
213.98 213.98 347.75
547.60 347.75 73.72
3,703.19 1,088.62 2,065.98 518.95
.00 213.98Dr .00 347.75Dr 547.60Dr .00 347.75Dr 421.47Dr 3,703.19Dr .00 1,088.62Dr 3,154.60Dr 2,635.65Dr
Vetter Vacuum Center Inventory List 02/14/-Stock No. Description
Unit On Meas. Hand
1010 1020 1030 1040 1050 1060 1070 1080 1090
EA EA EA EA EA EA EA EA EA
Alpha Upright Vacuum Handy Upright Vacuum Kenwood Canister Vac Nantz Canister Vacuum Steam Cleaner Rug Machine Wet & Dry Vacuum Electric Broom Battery Powered Vac
9 23 11 15 23 20 15 12 29
On Order
Reorder Point
Last Cost
Retail Price
0 0 0 4 0 0 8 10 0
6 8 5 8 10 10 12 10 15
480.00 315.25 405.00 240.00 152.00 135.00 199.00 58.00 22.80
795.95 485.00 689.95 369.99 219.00 189.99 325.00 99.99 38.95
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Page 11
1100 2010 2020 2030 2040 2050 2060
EA EA EA EA EA EA EA
Car Vac Upright Cleaner Bag Canister Cleaner Bag Allergenci Bag Pile Lifter Brush Shampoo Attachment Attachment Kit
4/12/2024
25 114 64 24 23 24 27
0 0 0 0 0 0 0
15 32 32 12 10 8 10
20.95 2.35 2.30 5.35 31.50 25.70 32.95
29.95 3.95 3.85 8.95 49.00 38.95 49.95
Vetter Vacuum Center Inventory Transactions 02/14/-Date
Description
Sales Invoices 02/08 Attachment Kit Steam Cleaner Alpha Upright Vacuum Upright Cleaner Bag 02/09 Rug Machine Pile Lifter Brush 02/10 Alpha Upright Vacuum Electric Broom Shampoo Attachment 02/11 Car Vac Battery Powered Vac 02/12 Upright Cleaner Bag Steam Cleaner 02/13 Wet & Dry Vacuum Allergenci Bag Attachment Kit Rug Machine 02/14 Wet & Dry Vacuum 02/10 Handy Upright Vacuum Purchase Orders 02/08 Wet & Dry Vacuum 02/14 Nantz Canister Vacuum Purchase Invoices 02/11 Allergenci Bag 02/12 Attachment Kit Upright Cleaner Bag
Inv./ P.O.
Quantity Sold
Selling Price
531
1 1 1 12 1 1 2 3 1 1 1 8 2 2 12 1 1 1 -1
49.95 219.00 795.95 3.95 189.99 49.00 795.95 99.99 38.95 29.95 38.95 3.95 219.00 325.00 8.95 49.95 189.99 325.00 485.00
532 533 534 535 536
537 R530 277 278
Quan. Ord.
Quan. Recd.
Cost Price
32 2 24 ------- ------12 58 ======= =======
5.35 32.95 2.35
8 4
859 860 --------51 =========
Totals
Vetter Vacuum Center Yearly Sales 02/14/-Stock No.
Description
Unit Meas
Yearly Quantity
Yearly Amount
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Page 12
1010 1020 1030 1040 1050 1060 1070 1080 1090 1100 2010 2020 2030 2040 2050 2060
EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA
Alpha Upright Vacuum Handy Upright Vacuum Kenwood Canister Vac Nantz Canister Vacuum Steam Cleaner Rug Machine Wet & Dry Vacuum Electric Broom Battery Powered Vac Car Vac Upright Cleaner Bag Canister Cleaner Bag Allergenci Bag Pile Lifter Brush Shampoo Attachment Attachment Kit
Alpha Upright Vacuum Handy Upright Vacuum Kenwood Canister Vac Nantz Canister Vacuum Steam Cleaner Rug Machine Wet & Dry Vacuum Electric Broom
Percent of Total Sales
4/12/2024
15 11,939.25 17 8,245.00 6 4,139.70 9 3,329.91 9 1,971.00 12 2,279.88 11 3,575.00 16 1,599.84 7 272.65 2 59.90 52 205.40 64 246.40 40 358.00 4 196.00 6 233.70 11 549.45 -------------- -------------281 39,201.08 ============== ==============
$11,939.25 $8,245.00 $4,139.70 $3,329.91 $1,971.00 $2,279.88 $3,575.00 $1,599.84 ---------$37,079.58 ========== 94.59%
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Page 13
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MEMORANDUM TO:
Diane Vetter
FROM:
Your Name
DATE:
(Today's Date)
SUBJECT:
Year-to-Date Gross Sales Data
The following inventory items have year-to-date gross sales greater than $1,000.00. Note the percent of total sales these items generate. Alpha Upright Vacuum Handy Upright Vacuum Kenwood Canister Vac Nantz Canister Vacuum Steam Cleaner Rug Machine Wet & Dry Vacuum Electric Broom
Percent of Total Sales
$11,939.25 $8,245.00 $4,139.70 $3,329.91 $1,971.00 $2,279.88 $3,575.00 $1,599.84 ---------$37,079.58 ========== 94.59%
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 4-A Register Reports: 1. $2,552.00 2. $293.50 3. $4,657.95 (sales tax $326.05) Journal and Ledger Reports: 4. 5. 6. 7. 8. 9.
$293.50 $682.40 $8,676.70 $9,332.52 $24,981.51 Sales = $39,709.78 Sales returns and allowances = $508.70 Sales discounts = $146.51 10. $39,201.08 ($39,709.78 - $508.70) Yes 11. $24,981.51 Yes 12. $9,445.93
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Page 14
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Inventory Reports and Graph 13. 14. 15. 16.
51 (52 items sold - 1 item returned) Alpha Upright Vacuum ($11,939.25) $39,201.08 Lilly Industries, Inc.
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Page 15
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PROBLEM 4-B
Only the first purchase order for the period is shown. The accuracy of the information in the inventory transaction and purchase orders register will determine the accuracy of each purchase order.
Only the first purchase invoice for the period is shown. The accuracy of the information in the inventory transaction, purchase invoice register, and purchases journal reports will determine the accuracy of each purchase invoice. © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Page 16
4/12/2024
Only the first sales invoice (sales return) for the period is shown. The accuracy of the information in the inventory transaction, sales invoice register, general journal, and sales journal reports will determine the accuracy of each sales invoice. Vetter Vacuum Center Purchase Order Register 02/14/-P.O. Number
P.O. Date
Vendor Name
277 278
02/08/-02/09/--
Nantz Vacuum Cleaner Co. Alpha Vacuum Mfg., Inc. Total Amount
P.O. Amount 1,440.00 2,880.00 ------------4,320.00 =============
Vetter Vacuum Center Purchase Invoice Register 02/14/-Invoice Number
Invoice Date
Vendor Name
859 860
02/12/-02/14/--
Handy Manufacturing, Inc. Royal Accessories, Inc. Total Amount
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Invoice Amount 96.30 122.30 ------------218.60 =============
Manual - Chapter 4
Page 17
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Vetter Vacuum Center Sales Invoice Register 02/14/-Invoice Number
Invoice Date
Customer Name
Invoice Amount
531 532 533 534 535 536 537 R530
02/08/-02/09/-02/10/-02/11/-02/12/-02/13/-02/14/-02/08/--
Wingler Motel Fraze Department Stores Robert Thorson Jennifer Martens Broderick Company Lilly Industries, Inc. Matthew Cornish Wingler Motel Total Amount
Sales Tax
1,526.00 106.82 1,314.30 92.00 219.00 15.33 442.09 30.95 131.60 9.21 544.00 38.08 555.88 38.91 -485.00 -33.95 ----------- ----------4,247.87 297.35 =========== ===========
Vetter Vacuum Center General Journal 02/14/-Date
Refer.
02/08 R530 02/08 R530 02/08 R530 02/08 R530 02/08 R530
Acct.
Title
Debit
4120 2120 1130 5110 1140
Sales Returns & Allow. Sales Tax Payable AR/Wingler Motel Cost of Merchandise Sold Merchandise Inventory
485.00 33.95
Totals
Credit
518.95 315.25 315.25 -------------- -------------834.20 834.20 ============== ==============
Vetter Vacuum Center Purchases Journal 02/14/-Date
Inv. No.
Acct.
Title
Debit
02/12 859 02/12 859
1140 2110
Merchandise Inventory AP/Handy Manufacturing, In
96.30
02/14 860 02/14 860
1140 2110
Merchandise Inventory AP/Royal Accessories, Inc.
122.30
Totals
Credit 96.30
122.30 -------------- -------------218.60 218.60 ============== ==============
Vetter Vacuum Center Cash Payments Journal 02/14/-© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Date
Ck. No.
Page 18
4/12/2024
Acct.
Title
Debit
02/13 3621 02/13 3621 02/13 3621
2110 1140 1110
AP/Nantz Vacuum Cleaner Co Merchandise Inventory Cash
157.50
02/14 3622 02/14 3622
2110 1110
AP/Alpha Vacuum Mfg., Inc. Cash
3,314.75
Totals
Credit 3.15 154.35
3,314.75 -------------- -------------3,472.25 3,472.25 ============== ==============
Vetter Vacuum Center Sales Journal 02/14/-Date
Inv. No.
Acct.
Title
Debit
02/08 531 02/08 531 02/08 531 02/08 531 02/08 531
1130 4110 2120 5110 1140
AR/Wingler Motel Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
1,632.82
02/09 532 02/09 532 02/09 532 02/09 532 02/09 532
1130 4110 2120 5110 1140
AR/Fraze Department Stores Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
1,406.30
02/10 533 02/10 533 02/10 533 02/10 533 02/10 533
1130 4110 2120 5110 1140
AR/Robert Thorson Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
234.33
02/11 534 02/11 534 02/11 534 02/11 534 02/11 534
1130 4110 2120 5110 1140
AR/Jennifer Martens Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
473.04
02/12 535 02/12 535 02/12 535 02/12 535 02/12 535
1130 4110 2120 5110 1140
AR/Broderick Company Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
140.81
02/13 536 02/13 536 02/13 536 02/13 536 02/13 536
1130 4110 2120 5110 1140
AR/Lilly Industries, Inc. Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
582.08
02/14 537
1130
AR/Matthew Cornish
594.79
Credit 1,526.00 106.82
903.50 903.50 1,314.30 92.00 856.90 856.90 219.00 15.33 152.00 152.00 442.09 30.95 285.30 285.30 131.60 9.21 83.30 83.30 544.00 38.08 337.00 337.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
02/14 537 02/14 537 02/14 537 02/14 537
Page 19
4110 2120 5110 1140
4/12/2024
Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
555.88 38.91 384.40 384.40 -------------- -------------8,066.57 8,066.57 ============== ==============
Totals
Vetter Vacuum Center Cash Receipts Journal 02/14/-Date
Refer.
Acct.
Title
Debit
02/10 527 02/10 527 02/10 527
1110 4130 1130
Cash Sales Discount AR/Bassett Cleaning, Inc.
890.95 18.18
02/13 528 02/13 528
1110 1130
Cash AR/Robert Thorson
347.75
02/14 529 02/14 529 02/14 529
1110 4130 1130
Cash Sales Discount AR/Broderick Company Totals
Credit
909.13 347.75 1,055.30 21.54 1,076.84 -------------- -------------2,333.72 2,333.72 ============== ==============
Vetter Vacuum Center General Ledger 02/14/-Account
Journal
1130-Accounts Receivable Sales Sales Sales Cash Receipts Sales Cash Receipts Sales Sales Sales Cash Receipts Sales Sales Cash Receipts Sales Sales Cash Receipts Sales Sales General
Date
Refer.
01/24 517 01/25 518 01/26 519 01/27 519 01/27 520 01/28 520 01/28 521 01/29 522 01/30 523 01/31 522 01/31 524 02/02 525 02/03 524 02/03 526 02/04 527 02/05 523 02/05 528 02/06 529 02/06 R517
Debit
Credit
8,968.82 7,594.73 1,884.78 1,884.78 108.81 108.81 8,540.84 868.83 547.60 868.83 3,703.19 828.66 3,703.19 213.98 909.13 547.60 347.75 1,076.84 25.36
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Balance 8,968.82Dr 16,563.55Dr 18,448.33Dr 16,563.55Dr 16,672.36Dr 16,563.55Dr 25,104.39Dr 25,973.22Dr 26,520.82Dr 25,651.99Dr 29,355.18Dr 30,183.84Dr 26,480.65Dr 26,694.63Dr 27,603.76Dr 27,056.16Dr 27,403.91Dr 28,480.75Dr 28,455.39Dr
Manual - Chapter 4
Cash Receipts Sales Sales General Sales Sales Cash Receipts Sales Sales Sales Cash Receipts Sales Cash Receipts
Page 20
02/07 526 02/07 530 02/08 531 02/08 R530 02/09 532 02/10 533 02/10 527 02/11 534 02/12 535 02/13 536 02/13 528 02/14 537 02/14 529
4/12/2024
213.98
1,076.84
28,241.41Dr 29,330.03Dr 30,962.85Dr 30,443.90Dr 31,850.20Dr 32,084.53Dr 31,175.40Dr 31,648.44Dr 31,789.25Dr 32,371.33Dr 32,023.58Dr 32,618.37Dr 31,541.53Dr
Credit
Balance
8,461.15 7,164.84 1,778.09 102.65 8,057.40 819.65 516.60 3,493.58 774.45 199.98 849.65 325.00 1,006.39 1,017.40 1,526.00 1,314.30 219.00 442.09 131.60 544.00 555.88
8,461.15Cr 15,625.99Cr 17,404.08Cr 17,506.73Cr 25,564.13Cr 26,383.78Cr 26,900.38Cr 30,393.96Cr 31,168.41Cr 31,368.39Cr 32,218.04Cr 32,543.04Cr 33,549.43Cr 34,566.83Cr 36,092.83Cr 37,407.13Cr 37,626.13Cr 38,068.22Cr 38,199.82Cr 38,743.82Cr 39,299.70Cr
1,088.62 1,632.82 518.95 1,406.30 234.33 909.13 473.04 140.81 582.08 347.75 594.79
Vetter Vacuum Center General Ledger 02/14/-Account
Journal
4110-Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales
Date
Refer.
Debit
01/24 517 01/25 518 01/26 519 01/27 520 01/28 521 01/29 522 01/30 523 01/31 524 02/02 525 02/03 526 02/04 527 02/05 528 02/06 529 02/07 530 02/08 531 02/09 532 02/10 533 02/11 534 02/12 535 02/13 536 02/14 537
4120-Sales Returns & Allow. General 02/06 R517 General 02/08 R530
23.70 485.00
23.70Dr 508.70Dr
4130-Sales Discount Cash Receipts Cash Receipts Cash Receipts Cash Receipts
37.70 74.06 18.18 21.54
37.70Dr 111.76Dr 129.94Dr 151.48Dr
01/27 519 02/03 524 02/10 527 02/14 529
Vetter Vacuum Center © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Page 21
4/12/2024
Trial Balance 02/14/-Acct. Number
Account Title
1110 1120 1130 1140 1150 1160 2110 2120 3110 3120 4110 4120 4130 5110 6110 6120 6130 6140 6150
Cash Petty Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Accounts Payable Sales Tax Payable Diane Vetter, Capital Diane Vetter, Drawing Sales Sales Returns & Allow. Sales Discount Cost of Merchandise Sold Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Utilities Expense
Debit
Totals
Credit
28,458.33 150.00 31,541.53 32,627.62 2,500.00 1,500.00 7,882.80 2,411.44 79,645.44 6,000.00 39,299.70 508.70 151.48 24,187.95 130.00 105.00 850.00 207.60 321.17 ----------------- ----------------129,239.38 129,239.38 ================= =================
Vetter Vacuum Center Schedule of Accounts Receivable 02/14/-Name
Balance
Bassett Cleaning, Inc. Broderick Company Fraze Department Stores Jennifer Martens Lilly Industries, Inc. Matthew Cornish Robert Thorson Wingler Motel
8,943.46 7,735.54 1,406.30 473.04 9,951.58 594.79 234.33 2,202.49 ----------------31,541.53 =================
Total
Vetter Vacuum Center Accounts Receivable Ledger 02/14/-Account
Journal
Bassett Cleaning, Inc. Sales
Date
Refer.
01/24 517
Debit
Credit
8,968.82
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Balance 8,968.82Dr
Manual - Chapter 4
Page 22
4/12/2024
Sales General Cash Receipts
02/04 527 02/06 R517 02/10 527
909.13
Broderick Company Sales Sales Sales Cash Receipts
01/25 518 02/06 529 02/12 535 02/14 529
7,594.73 1,076.84 140.81
Fraze Department Stores Sales Cash Receipts Sales
01/26 519 01/27 519 02/09 532
1,884.78
Jennifer Martens Sales Cash Receipts Sales
01/27 520 01/28 520 02/11 534
108.81
Lilly Industries, Inc. Sales Sales Sales
25.36 909.13
9,877.95Dr 9,852.59Dr 8,943.46Dr
1,076.84
7,594.73Dr 8,671.57Dr 8,812.38Dr 7,735.54Dr
1,884.78
1,884.78Dr .00 1,406.30Dr
108.81 473.04
108.81Dr .00 473.04Dr
01/28 521 02/02 525 02/13 536
8,540.84 828.66 582.08
8,540.84Dr 9,369.50Dr 9,951.58Dr
Matthew Cornish Sales Cash Receipts Sales Cash Receipts Sales
01/29 522 01/31 522 02/03 526 02/07 526 02/14 537
868.83
Robert Thorson Sales Cash Receipts Sales Sales Cash Receipts
01/30 523 02/05 523 02/05 528 02/10 533 02/13 528
547.60
Wingler Motel Sales Cash Receipts Sales Sales General
01/31 524 02/03 524 02/07 530 02/08 531 02/08 R530
3,703.19
1,406.30
868.83 213.98 213.98 594.79
547.60 347.75 234.33 347.75
3,703.19 1,088.62 1,632.82 518.95
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
868.83Dr .00 213.98Dr .00 594.79Dr 547.60Dr .00 347.75Dr 582.08Dr 234.33Dr 3,703.19Dr .00 1,088.62Dr 2,721.44Dr 2,202.49Dr
Manual - Chapter 4
Page 23
4/12/2024
Vetter Vacuum Center Inventory List 02/14/-Stock No. Description
Unit On Meas. Hand
1010 1020 1030 1040 1050 1060 1070 1080 1090 1100 2010 2020 2030 2040 2050 2060
EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA
Alpha Upright Vacuum Handy Upright Vacuum Kenwood Canister Vac Nantz Canister Vacuum Steam Cleaner Rug Machine Wet & Dry Vacuum Electric Broom Battery Powered Vac Car Vac Upright Cleaner Bag Canister Cleaner Bag Allergenci Bag Pile Lifter Brush Shampoo Attachment Attachment Kit
12 21 9 14 23 20 17 15 28 26 122 46 16 21 21 27
On Order
Reorder Point
Last Cost
Retail Price
6 0 0 6 0 0 0 10 0 0 0 0 14 0 0 0
6 8 5 8 10 10 12 10 15 15 32 32 12 10 8 10
480.00 315.25 405.00 240.00 152.00 135.00 199.00 58.00 22.80 20.95 2.35 2.30 5.35 31.50 25.70 32.95
795.95 485.00 689.95 369.99 219.00 189.99 325.00 99.99 38.95 29.95 3.95 3.85 8.95 49.00 38.95 49.95
Vetter Vacuum Center Inventory Transactions 02/14/-Date
Description
Sales Invoices 02/08 Kenwood Canister Vac Canister Cleaner Bag
Inv./ P.O.
Quantity Sold
Selling Price
531
2 12
689.95 3.85
Quan. Ord.
Quan. Recd.
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Cost Price
Manual - Chapter 4
Page 24
Attachment Kit 02/09 Battery Powered Vac Steam Cleaner Handy Upright Vacuum Upright Cleaner Bag 02/10 Steam Cleaner 02/11 Nantz Canister Vacuum Canister Cleaner Bag Pile Lifter Brush 02/12 Shampoo Attachment Allergenci Bag 02/13 Wet & Dry Vacuum Steam Cleaner 02/14 Rug Machine Pile Lifter Brush Shampoo Attachment 02/08 Handy Upright Vacuum Purchase Orders 02/08 Nantz Canister Vacuum 02/09 Alpha Upright Vacuum Purchase Invoices 02/12 Allergenci Bag 02/14 Attachment Kit Upright Cleaner Bag
4/12/2024
2 2 1 2 12 1 1 6 1 2 6 1 1 2 2 2 -1
532
533 534 535 536 537 R530 277 278
49.95 38.95 219.00 485.00 3.95 219.00 369.99 3.85 49.00 38.95 8.95 325.00 219.00 189.99 49.00 38.95 485.00 6 6
859 860 --------57 =========
Totals
18 2 24 ------- ------12 44 ======= =======
Vetter Vacuum Center Yearly Sales 02/14/-Stock No.
Description
Unit Meas
1010 1020 1030 1040 1050 1060 1070 1080 1090 1100 2010 2020 2030 2040 2050 2060
Alpha Upright Vacuum Handy Upright Vacuum Kenwood Canister Vac Nantz Canister Vacuum Steam Cleaner Rug Machine Wet & Dry Vacuum Electric Broom Battery Powered Vac Car Vac Upright Cleaner Bag Canister Cleaner Bag Allergenci Bag Pile Lifter Brush Shampoo Attachment Attachment Kit
EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA
Yearly Quantity
Yearly Amount
12 9,551.40 19 9,215.00 8 5,519.60 10 3,699.90 9 1,971.00 12 2,279.88 9 2,925.00 13 1,299.87 8 311.60 1 29.95 44 173.80 82 315.70 34 304.30 6 294.00 9 350.55 11 549.45 -------------- -------------287 38,791.00 ============== ==============
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5.35 32.95 2.35
Manual - Chapter 4
Page 25
Alpha Upright Vacuum Handy Upright Vacuum Kenwood Canister Vac Nantz Canister Vacuum
Percent of Total Sales
4/12/2024
$9,551.40 $9,215.00 $5,519.60 $3,699.90 ---------$27,985.90 ========== 72.15%
MEMORANDUM TO:
Diane Vetter
FROM:
Your Name
DATE:
(Today's Date)
SUBJECT:
Year-to-Date Gross Sales Data
The following inventory items have year-to-date gross sales greater than $3,000.00. Note the percent of total sales these items generate. Alpha Upright Vacuum
$9,551.40
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Chapter 4
Handy Upright Vacuum Kenwood Canister Vac Nantz Canister Vacuum
Percent of Total Sales
Page 26
4/12/2024
$9,215.00 $5,519.60 $3,699.90 ---------$27,985.90 ========== 72.15%
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 4-B Register Reports: 1. $4,320.00 2. $218.60 3. $4,247.87 (sales tax $297.35) Journal and Ledger Reports: 4. 5. 6. 7. 8. 9.
$218.60 $3,472.25 $8,066.57 $2,333.72 $31,541.53 Sales = $39,299.70 Sales returns and allowances = $508.70 Sales discounts = $151.48 10. $38,791.00 ($39,299.70 - $508.70) Yes 11. $31,541.53 Yes 12. $2,202.49 Inventory Reports and Graph: 13. 14. 15. 16.
57 (58 items sold - 1 item returned) Alpha Upright Vacuum ($9,551.40) $38,791.00 Lilly Industries, Inc.
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Page 1
4/12/2024
Chapter 5
ACCOUNTING CYCLE OF A MERCHANDISING BUSINESS AND BUDGETING STUDENT EXERCISES I. MATCHING 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
i b a d e f g j c h
II. QUESTIONS 1. 2. 3. 4.
The Cash account is credited. The Cash account is debited. Cash payment transactions that do not affect accounts payable. Direct cash receipt transactions do not affect Accounts Receivable and therefore do not require a customer name in the cash receipts transaction screen. 5. The budget report lists the actual revenues and expenses, budgeted revenues and expense, the difference between them, and the percent of difference in income statement format.
PROBLEM 5-A Copier Solutions Purchase Order Register 04/30/-P.O. Number
P.O. Date
Vendor Name
269
04/15/--
Tokuda Corporation Total Amount
P.O. Amount 1,237.50 ------------1,237.50
Copier Solutions Purchase Invoice Register 04/30/-Invoice Number
Invoice Date
Vendor Name
428 429
04/21/-04/23/--
Cody Industries, Inc. Nozaki Corporation
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Invoice Amount 312.00 3,050.00 -------------
Chapter 5 - Manual
Page 2
4/12/2024
Total Amount
3,362.00 =============
Copier Solutions Sales Invoice Register 04/30/-Invoice Number
Invoice Date
Customer Name
Invoice Amount
733 734 735 736 737 738 739 740 R725
04/02/-04/05/-04/08/-04/13/-04/18/-04/20/-04/28/-04/30/-04/10/--
Malott Realty Co. Morgan Home Center Carol's Office Products Baer Insurance Agency Siegel Mortgage Co. J & M Construction Co. Klein & Associates Florence Carpets J & M Construction Co. Total Amount
Sales Tax
3,147.50 220.33 1,016.25 71.14 3,614.55 253.02 7,474.00 523.18 475.00 33.25 203.55 14.25 1,444.05 101.08 5,892.65 412.49 -58.95 -4.13 ----------- ----------23,208.60 1,624.61 =========== ===========
Copier Solutions General Journal 04/30/-Date
Refer.
Acct.
Title
Debit
04/01 Rev.Ent 04/01 Rev.Ent
2140 6160
Salaries Payable Salaries Expense
495.80
04/10 R725 04/10 R725 04/10 R725 04/10 R725 04/10 R725
4120 2120 1130 5110 1140
Sales Returns & Allow. Sales Tax Payable AR/J & M Construction Co. Cost of Merchandise Sold Merchandise Inventory
58.95 4.13
Totals
Credit 495.80
63.08 34.63 34.63 -------------- -------------593.51 593.51 ============== ==============
Copier Solutions Purchases Journal 04/30/-Date
Inv. No.
Acct.
Title
Debit
04/21 428 04/21 428
1140 2110
Merchandise Inventory AP/Cody Industries, Inc.
312.00
04/23 429 04/23 429
1140 2110
Merchandise Inventory AP/Nozaki Corporation
Credit 312.00
3,050.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3,050.00
Chapter 5 - Manual
Page 3
4/12/2024
-------------- -------------3,362.00 3,362.00 ============== ==============
Totals
Copier Solutions Cash Payments Journal 04/30/-Date
Ck. No.
Acct.
Title
Debit
04/05 8449 04/05 8449
1160 1110
Prepaid Insurance Cash
515.00
04/07 8450 04/07 8450
1150 1110
Supplies Cash
476.00
04/15 8451 04/15 8451
6130 1110
Rent Expense Cash
04/19 8452 04/19 8452
6150 1110
Heating & Lighting Exp. Cash
357.65
04/21 8453 04/21 8453
6110 1110
Advertising Expense Cash
120.00
04/22 8454 04/22 8454
6120 1110
Miscellaneous Expense Cash
35.00
04/25 8455 04/25 8455
6140 1110
Telephone Expense Cash
498.58
04/27 8456 04/27 8456 04/27 8456
2110 1140 1110
AP/REM Paper Company Merchandise Inventory Cash
1,050.00
04/30 8457 04/30 8457
2120 1110
Sales Tax Payable Cash
2,501.72
04/30 8458 04/30 8458
6160 1110
Salaries Expense Cash
3,294.82
Credit 515.00 476.00
Totals
1,250.00 1,250.00 357.65 120.00 35.00 498.58 21.00 1,029.00 2,501.72 3,294.82 -------------- -------------10,098.77 10,098.77 ============== ==============
Copier Solutions Sales Journal 04/30/-Date
Inv. No.
04/02 733 04/02 733 04/02 733 04/02 733
Acct.
Title
1130 4110 2120 5110
AR/Malott Realty Co. Sales Sales Tax Payable Cost of Merchandise Sold
Debit
Credit
3,367.83 3,147.50 220.33 1,881.25
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Page 4
4/12/2024
04/02 733
1140
Merchandise Inventory
04/05 734 04/05 734 04/05 734 04/05 734 04/05 734
1130 4110 2120 5110 1140
AR/Morgan Home Center Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
1,087.39
04/08 735 04/08 735 04/08 735 04/08 735 04/08 735
1130 4110 2120 5110 1140
AR/Carol's Office Products Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
3,867.57
04/13 736 04/13 736 04/13 736 04/13 736 04/13 736
1130 4110 2120 5110 1140
AR/Baer Insurance Agency Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
7,997.18
04/18 737 04/18 737 04/18 737 04/18 737 04/18 737
1130 4110 2120 5110 1140
AR/Siegel Mortgage Co. Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
508.25
04/20 738 04/20 738 04/20 738 04/20 738 04/20 738
1130 4110 2120 5110 1140
AR/J & M Construction Co. Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
217.80
04/28 739 04/28 739 04/28 739 04/28 739 04/28 739
1130 4110 2120 5110 1140
AR/Klein & Associates Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
1,545.13
04/30 740 04/30 740 04/30 740 04/30 740 04/30 740
1130 4110 2120 5110 1140
AR/Florence Carpets Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
6,305.14
Totals
1,881.25 1,016.25 71.14 599.94 599.94 3,614.55 253.02 2,153.92 2,153.92 7,474.00 523.18 4,055.63 4,055.63 475.00 33.25 279.40 279.40 203.55 14.25 121.99 121.99 1,444.05 101.08 876.33 876.33 5,892.65 412.49 3,111.84 3,111.84 -------------- -------------37,976.59 37,976.59 ============== ==============
Copier Solutions Cash Receipts Journal 04/30/-Date
Refer.
04/01 726 04/01 726 04/01 726
Acct.
Title
1110 4130 1130
Cash Sales Discount AR/Tasler Corporation
Debit
Credit
6,070.35 123.88
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
6,194.23
Chapter 5 - Manual
Page 5
4/12/2024
04/03 27 04/03 27 04/03 27
1110 1120 7110
Cash Notes Receivable Interest Income
3,417.00
04/10 731 04/10 731 04/10 731
1110 4130 1130
Cash Sales Discount AR/Florence Carpets
1,555.31 31.74
04/17 716 04/17 716 04/17 716
1110 4130 1130
Cash Sales Discount AR/Morgan Home Center
1,645.21 33.58
04/29 732 04/29 732 04/29 732
1110 4130 1130
Cash Sales Discount AR/Siegel Mortgage Co.
7,008.32 143.03
3,350.00 67.00
1,587.05
1,678.79
7,151.35 -------------- -------------20,028.42 20,028.42 ============== ==============
Totals
Copier Solutions Schedule of Accounts Payable 04/30/-Name
Balance
AMS Paper Depot Cody Industries, Inc. Nozaki Corporation Starr Enterprises Tokuda Corporation
565.50 1,417.00 3,050.00 1,575.00 2,135.00 ----------------8,742.50 =================
Total
Copier Solutions Accounts Payable Ledger 04/30/-Account
Journal
Date
Refer.
Debit
Credit
AMS Paper Depot Balance Forward
Balance 565.50Cr
Cody Industries, Inc. Balance Forward Purchases
04/21 428
Nozaki Corporation Purchases Cash Payments Purchases
02/10 426 02/21 8439 04/23 429
312.00 15,250.00 15,250.00 3,050.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1,105.00Cr 1,417.00Cr 15,250.00Cr .00 3,050.00Cr
Chapter 5 - Manual
Page 6
4/12/2024
REM Paper Company Balance Forward Cash Payments
04/27 8456
1,050.00
Starr Enterprises Balance Forward Cash Payments Purchases
03/21 8443 03/27 427
670.82
1,050.00Cr .00
1,575.00
Tokuda Corporation Balance Forward
670.82Cr .00 1,575.00Cr 2,135.00Cr
Copier Solutions Schedule of Accounts Receivable 04/30/-Name
Balance
Baer Insurance Agency Carol's Office Products Florence Carpets J & M Construction Co. Klein & Associates Malott Realty Co. Morgan Home Center Siegel Mortgage Co. Tasler Corporation
9,980.32 10,403.61 6,305.14 2,332.28 3,952.63 3,367.83 1,087.09 1,862.90 6,194.23 ----------------45,486.03 =================
Total
Copier Solutions Accounts Receivable Ledger 04/30/-Account
Journal
Date
Refer.
Baer Insurance Agency Balance Forward Sales Sales
03/12 727 04/13 736
Carol's Office Products Balance Forward General Sales Sales
03/17 R705 03/20 730 04/08 735
Debit
Credit
Balance 1,603.40Dr 1,983.14Dr 9,980.32Dr
379.74 7,997.18
508.25 2,186.01 3,867.57
Florence Carpets © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4,858.28Dr 4,350.03Dr 6,536.04Dr 10,403.61Dr
Chapter 5 - Manual
Page 7
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Balance Forward Sales Cash Receipts Sales
03/23 731 04/10 731 04/30 740
J & M Construction Co. Balance Forward Sales General Sales
03/02 725 04/10 R725 04/20 738
Klein & Associates Balance Forward Cash Receipts Sales Cash Receipts Sales Sales
02/28 724 02/28 724 03/10 720 03/15 729 04/28 739
Malott Realty Co. Balance Forward Cash Receipts Sales
03/03 718 04/02 733
Morgan Home Center Balance Forward Sales Sales Cash Receipts
03/14 728 04/05 734 04/17 716
167.78 1,087.39
Siegel Mortgage Co. Balance Forward Sales Sales Cash Receipts
03/31 732 04/18 737 04/29 732
7,151.35 508.25
Tasler Corporation Sales Cash Receipts
03/07 726 04/01 726
12,388.46
573.41 1,587.05 6,305.14
1,106.01 63.08 217.80
12,388.46 12,388.46 1,445.25 2,407.50 1,545.13
12,712.50 3,367.83
1,013.64Dr 1,587.05Dr .00 6,305.14Dr 1,071.55Dr 2,177.56Dr 2,114.48Dr 2,332.28Dr 1,445.25Dr 10,943.21Cr 1,445.25Dr .00 2,407.50Dr 3,952.63Dr 12,712.50Dr .00 3,367.83Dr
1,678.79
1,510.71Dr 1,678.49Dr 2,765.88Dr 1,087.09Dr
7,151.35
1,354.65Dr 8,506.00Dr 9,014.25Dr 1,862.90Dr
6,194.23
12,388.46Dr 6,194.23Dr
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
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Copier Solutions Inventory List 04/30/-Stock No. Description
Unit On Meas. Hand
1010 1020 1030 1040 1050 2010 2020 2030 2040 2050 2060 3010 3020 3030 3040 3050 4010 4020 4030 4040 4050
EA EA EA EA EA EA EA EA EA EA EA CS CS CS BX CS EA EA EA EA EA
Z95 Desktop Copier All-Pro Business Copier Office Color Copier Color Laser Copier Superb Mini Copier Phone Answer & Fax Desktop Facsimile Professional Fax Office Fax & Copier Portable Facsimile Nozaki Pro Copier AMS 16 lb. Copy Paper AMS 20 lb. Copy Paper AMS 24 lb. Copy Paper Facsimile Roll Paper Recycled 20 lb. Paper M-10 Copier Cartridge Color Copier Cartridge Laser Copier Cartridge CX10 Fax Cartridge Copier 12 oz. Toner
12 13 4 1 12 13 10 7 7 12 0 28 62 27 23 30 17 21 2 21 16
On Order
Reorder Point
0 0 0 3 0 0 0 0 0 0 4 0 0 0 0 0 0 0 30 0 0
10 8 6 4 6 10 8 6 5 6 5 24 36 24 12 24 12 10 10 12 12
Last Cost
Retail Price
196.00 525.00 1010.00 1699.00 135.00 195.00 285.00 598.00 775.00 165.00 3050.00 13.00 22.65 25.00 14.95 16.75 34.75 52.00 41.25 27.00 7.50
349.00 899.00 1685.00 2895.00 225.00 329.95 475.00 999.00 1295.00 279.95 5789.00 21.95 37.85 42.50 24.95 27.95 58.95 89.35 69.00 45.00 12.95
Copier Solutions Inventory Transactions 04/30/-Date
Description
Inv./ P.O.
Quantity Sold
Selling Price
Quan. Ord.
Quan. Recd.
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Cost Price
Chapter 5 - Manual
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Sales Invoices 04/02 Office Fax & Copier 733 AMS 24 lb. Copy Paper Laser Copier Cartridge 04/05 Superb Mini Copier 734 M-10 Copier Cartridge Recycled 20 lb. Paper 04/08 Office Color Copier 735 Color Copier Cartridge AMS 16 lb. Copy Paper 04/13 Nozaki Pro Copier 736 Office Color Copier 04/18 Desktop Facsimile 737 04/20 AMS 20 lb. Copy Paper 738 CX10 Fax Cartridge 04/28 Phone Answer & Fax 739 AMS 20 lb. Copy Paper 04/30 Nozaki Pro Copier 740 AMS 20 lb. Copy Paper Recycled 20 lb. Paper 04/10 M-10 Copier Cartridge R725
2 5 5 1 12 3 2 2 3 1 1 1 3 2 3 12 1 2 1 -1
1,295.00 42.50 69.00 225.00 58.95 27.95 1,685.00 89.35 21.95 5,789.00 1,685.00 475.00 37.85 45.00 329.95 37.85 5,789.00 37.85 27.95 58.95
Purchase Orders 04/15 Laser Copier Cartridge 269
30
Purchase Invoices 04/21 Color Copier Cartridge 428 04/23 Nozaki Pro Copier 429
6 52.00 1 3,050.00 ------- ------30 7 ======= =======
--------61 =========
Totals
Copier Solutions Inventory Exceptions 04/30/-Stock No.
Description
Unit Meas
On Hand
On Order
1030 1040 2060 4030
Office Color Copier Color Laser Copier Nozaki Pro Copier Laser Copier Cartridge
EA EA EA EA
4 1 0 2
3 4 30
Reorder Point Exception 6 4 5 10
At/below reorder point At/below reorder point Out of stock At/below reorder point
Copier Solutions Yearly Sales 04/30/-Stock No.
Description
Unit Meas
Yearly Quantity
Yearly Amount
1010 1020 1030
Z95 Desktop Copier All-Pro Business Copier Office Color Copier
EA EA EA
40 35 8
13,960.00 31,465.00 13,480.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Page 10
1040 1050 2010 2020 2030 2040 2050 2060 3010 3020 3030 3040 3050 4010 4020 4030 4040 4050
EA EA EA EA EA EA EA EA CS CS CS BX CS EA EA EA EA EA
Color Laser Copier Superb Mini Copier Phone Answer & Fax Desktop Facsimile Professional Fax Office Fax & Copier Portable Facsimile Nozaki Pro Copier AMS 16 lb. Copy Paper AMS 20 lb. Copy Paper AMS 24 lb. Copy Paper Facsimile Roll Paper Recycled 20 lb. Paper M-10 Copier Cartridge Color Copier Cartridge Laser Copier Cartridge CX10 Fax Cartridge Copier 12 oz. Toner
4/12/2024
5 14,475.00 16 3,600.00 52 17,157.40 40 19,000.00 7 6,993.00 8 10,360.00 12 3,359.40 6 34,734.00 44 965.80 82 3,103.70 45 1,912.50 17 424.15 45 1,257.75 31 1,827.45 39 3,484.65 36 2,484.00 27 1,215.00 20 259.00 -------------- -------------615 185,517.80 ============== ==============
Copier Solutions Trial Balance 04/30/-Acct. Number
Account Title
1110 1130 1140 1150 1160 1510 1511 1520 1521 2110 2120 2510 3110 3120 4110 4120 4130 5110 6110 6120 6130 6140 6150 6160 6170 6180 6190
Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Warehouse Equipment Accum. Dep. -- Wrhs. Eq. Office Equipment Accum. Dep. -- Office Eq. Accounts Payable Sales Tax Payable Note Payable Susan Taylor, Capital Susan Taylor, Drawing Sales Sales Returns & Allow. Sales Discount Cost of Merchandise Sold Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq.
Debit
Credit
46,511.30 45,486.03 38,937.79 2,541.00 1,824.23 33,300.00 8,734.37 9,650.00 2,757.00 8,742.50 1,624.61 13,764.36 103,467.03 6,700.00 186,051.75 1,097.30 1,531.39 103,952.95 1,065.00 305.25 5,000.00 2,935.88 1,794.36 15,605.10 1,146.52 881.00 3,100.37
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
6200 7110 8110
Page 11
Deprec. Exp. Office Eq. Interest Income Interest Expense Totals
4/12/2024
1,027.00 84.00 833.15 ----------------- ----------------325,225.62 325,225.62 ================= =================
Copier Solutions General Journal 04/30/-Date
Refer.
Acct.
Title
Debit
04/30 Adj.Ent. 04/30 Adj.Ent.
6180 1160
Insurance Expense Prepaid Insurance
312.00
04/30 Adj.Ent. 04/30 Adj.Ent.
6170 1150
Supplies Expense Supplies
404.00
04/30 Adj.Ent. 04/30 Adj.Ent.
6190 1511
Deprec. Exp. Wrhs. Eq. Accum. Dep. -- Wrhs. Eq.
648.37
04/30 Adj.Ent. 04/30 Adj.Ent.
6200 1521
Deprec. Exp. Office Eq. Accum. Dep. -- Office Eq.
232.00
04/30 Adj.Ent. 04/30 Adj.Ent.
6160 2140
Salaries Expense Salaries Payable
439.80
Totals
Credit 312.00 404.00 648.37 232.00
439.80 -------------- -------------2,036.17 2,036.17 ============== ==============
Copier Solutions Income Statement For Period Ended 04/30/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discount Total Operating Revenue
23,267.55 101.71 186,051.75 101.43 -58.95 -0.26 -1,097.30 -0.60 -332.23 -1.45 -1,531.39 -0.83 ------------- ------------- ------------- ---------22,876.37 100.00 183,423.06 100.00
Cost Cost of Merchandise Sold Total Cost Gross Profit
13,045.67 57.03 103,952.95 56.67 ------------- ------------- ------------- ---------13,045.67 57.03 103,952.95 56.67 ------------- ------------- ------------- ---------9,830.70 42.97 79,470.11 43.33
Operating Expenses © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Page 12
Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq. Deprec. Exp. Office Eq. Total Operating Expenses Net Income from Operations
4/12/2024
120.00 0.52 1,065.00 0.58 35.00 0.15 305.25 0.17 1,250.00 5.46 5,000.00 2.73 498.58 2.18 2,935.88 1.60 357.65 1.56 1,794.36 0.98 3,238.82 14.16 16,044.90 8.75 404.00 1.77 1,550.52 0.85 312.00 1.36 1,193.00 0.65 648.37 2.83 3,748.74 2.04 232.00 1.01 1,259.00 0.69 ------------- ------------- ------------- ---------7,096.42 31.02 34,896.65 19.03 ------------- ------------- ------------- ---------2,734.28 11.95 44,573.46 24.30
Other Revenue Interest Income
67.00
0.29
84.00
0.05
Other Expense Interest Expense Net Income
833.15 0.45 ------------- ------------- ------------- ---------2,801.28 12.25 43,824.31 23.89 ============= ============= ============= ==========
Copier Solutions Statement of Owner's Equity For Period Ended 04/30/-Susan Taylor, Capital (Beg. of Period) Susan Taylor, Drawing Additional Investment Net Income Susan Taylor, Capital (End of Period)
93,467.03 -6,700.00 10,000.00 43,824.31 ------------140,591.34 =============
Copier Solutions Balance Sheet 04/30/-Assets Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Total Current Assets
46,511.30 45,486.03 38,937.79 2,137.00 1,512.23 ------------134,584.35
Warehouse Equipment
33,300.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Accum. Dep. -- Wrhs. Eq. Office Equipment Accum. Dep. -- Office Eq. Total Plant Assets
Page 13
4/12/2024
-9,382.74 9,650.00 -2,989.00 ------------30,578.26 -------------
Total Assets
165,162.61 =============
Liabilities Accounts Payable Sales Tax Payable Salaries Payable Total Current Liabilities Note Payable Total Long-Term Liabilities
8,742.50 1,624.61 439.80 ------------10,806.91 13,764.36 ------------13,764.36 -------------
Total Liabilities
24,571.27
Owner's Equity Susan Taylor, Capital Susan Taylor, Drawing Net Income
103,467.03 -6,700.00 43,824.31 -------------
Total Owner's Equity
140,591.34 ------------165,162.61 =============
Total Liabilities & Equity
Copier Solutions Budget Report For Period Ended 04/30/-Budget
Actual
Diff. From Budget
%
Operating Revenue Operating Revenue Cost of Merchandise Sold Gross Profit
585,000.00 183,423.06 -401,576.94 -68.65 345,000.00 103,952.95 -241,047.05 -69.87 ------------- ------------- ------------- ---------240,000.00 79,470.11 -160,529.89 -66.89 ------------- ------------- ------------- ----------
Operating Expenses Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense
4,250.00 1,000.00 18,000.00 12,000.00
1,065.00 305.25 5,000.00 2,935.88
-3,185.00 -694.75 -13,000.00 -9,064.12
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
-74.94 -69.48 -72.22 -75.53
Chapter 5 - Manual
Page 14
Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq. Deprec. Exp. Office Eq. Total Operating Expenses Net Income from Operations
4/12/2024
7,000.00 1,794.36 -5,205.64 -74.37 55,000.00 16,044.90 -38,955.10 -70.83 7,500.00 1,550.52 -5,949.48 -79.33 3,500.00 1,193.00 -2,307.00 -65.91 11,000.00 3,748.74 -7,251.26 -65.92 4,500.00 1,259.00 -3,241.00 -72.02 ------------- ------------- ------------- ---------123,750.00 34,896.65 -88,853.35 -71.80 ------------- ------------- ------------- ---------116,250.00 44,573.46 -71,676.54 -61.66
Other Revenue Interest Income
200.00
84.00
-116.00
-58.00
Other Expense Interest Expense
3,000.00 833.15 -2,166.85 -72.23 ------------- ------------- ------------- ---------113,450.00 43,824.31 -69,625.69 -61.37 ============= ============= ============= ==========
Net Income
Retirement Savings Plan 04/30/-Schedule of Contributions Age (Beginning Balance) 25 26 27
Annual Contribution
Annual Yield
Retirement Savings
7,047.78 7,047.78 7,047.78
393.75 784.43 1,195.62
7,500.00 14,941.53 22,773.74 31,017.14
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
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28 7,047.78 1,628.40 39,693.32 29 7,047.78 2,083.90 48,825.00 30 7,047.78 2,563.31 58,436.09 31 7,047.78 3,067.89 68,551.76 /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/ 59 7,047.78 35,337.38 715,478.03 60 7,047.78 37,562.60 760,088.41 61 7,047.78 39,904.64 807,040.83 62 7,047.78 42,369.64 856,458.25 63 7,047.78 44,964.06 908,470.09 64 7,047.78 47,694.68 963,212.55 Schedule of Retirement Income Annual Income
Age
Annual Yield
Savings Balance
(Retirement Savings) 963,212.55 65 75,000.00 46,631.16 934,843.71 66 75,000.00 45,141.79 904,985.50 67 75,000.00 43,574.24 873,559.74 68 75,000.00 41,924.39 840,484.13 69 75,000.00 40,187.92 805,672.05 /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/ 81 75,000.00 10,672.71 213,962.39 82 75,000.00 7,295.53 146,257.92 83 75,000.00 3,741.04 74,998.96 84 74,998.96 .00 .00 Copier Solutions Summary Report As Of 04/30/-Cash Accounts Receivable Accounts Payable Net Sales Cost of Merchandise Sold
$46,511.30 $45,486.03 $8,742.50 $183,423.06 $103,952.95
Copier Solutions Summary Report As Of 04/30/-Cash Accounts Receivable Accounts Payable Net Sales Cost of Merchandise Sold
$46,699.30 $45,486.03 $8,742.50 $183,423.06 $103,952.95
Internet Activity © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Page 16
4/12/2024
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 5-A 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
$1,237.50 $3,362.00 $23,208.60 ($1,624.61 sales tax) Total debits and credits = $3,362.00 Total debits and credits = $10,098.77 Total debits and credits = $37,976.59 Total debits and credits = $20,028.42 $8,742.50 $45,486.03 $2,332.28 61 (62 minus 1 return) $185,517.80 $13,045.67 $140,591,34 $165,162.61 $24,571.27 $401,576.94 $88,853.35 $69,625.69 $7,047.78
PROBLEM 5-B Copier Solutions Purchase Order Register 04/30/-P.O. Number
P.O. Date
Vendor Name
269
04/15/--
Tokuda Corporation Total Amount
P.O. Amount 990.00 ------------990.00 =============
Copier Solutions Purchase Invoice Register 04/30/-Invoice Number
Invoice Date
Vendor Name
428 429
04/23/-04/28/--
Cody Industries, Inc. Nozaki Corporation Total Amount Copier Solutions
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Invoice Amount 312.00 3,050.00 ------------3,362.00 =============
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Sales Invoice Register 04/30/-Invoice Number
Invoice Date
Customer Name
Invoice Amount
733 734 735 736 737 738 739 740 R725
04/03/-04/06/-04/09/-04/12/-04/17/-04/21/-04/25/-04/30/-04/10/--
Malott Realty Co. Morgan Home Center Carol's Office Products Siegel Mortgage Co. Siegel Mortgage Co. J & M Construction Co. Klein & Associates Baer Insurance Agency J & M Construction Co. Total Amount
Sales Tax
6,373.00 446.11 870.40 60.93 3,525.20 246.76 2,707.90 189.55 950.00 66.50 165.70 11.60 1,368.35 95.78 6,072.00 425.04 -58.95 -4.13 ----------- ----------21,973.60 1,538.14 =========== ===========
Copier Solutions General Journal 04/30/-Date
Refer.
Acct.
Title
Debit
04/01 Rev.Ent. 04/01 Rev.Ent.
2140 6160
Salaries Payable Salaries Expense
495.80
04/10 R725 04/10 R725 04/10 R725 04/10 R725 04/10 R725
4120 2120 1130 5110 1140
Sales Returns & Allow. Sales Tax Payable AR/J & M Construction Co. Cost of Merchandise Sold Merchandise Inventory
58.95 4.13
Totals
Credit 495.80
63.08 34.63 34.63 -------------- -------------593.51 593.51 ============== ==============
Copier Solutions Purchases Journal 04/30/-Date
Inv. No.
Acct.
Title
Debit
04/23 428 04/23 428
1140 2110
Merchandise Inventory AP/Cody Industries, Inc.
312.00
04/28 429 04/28 429
1140 2110
Merchandise Inventory AP/Nozaki Corporation Totals
Credit 312.00
3,050.00 3,050.00 -------------- -------------3,362.00 3,362.00 ============== ==============
Copier Solutions Cash Payments Journal 04/30/-© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Date
Ck. No.
Page 18
4/12/2024
Acct.
Title
Debit
04/01 8449 04/01 8449 04/01 8449
2510 8110 1110
Note Payable Interest Expense Cash
1,250.00 37.50
04/05 8450 04/05 8450
1160 1110
Prepaid Insurance Cash
525.65
04/07 8451 04/07 8451
1150 1110
Supplies Cash
460.15
04/08 8452 04/08 8452
6110 1110
Advertising Expense Cash
85.00
04/14 8453 04/14 8453 04/14 8453
2110 1140 1110
AP/REM Paper Company Merchandise Inventory Cash
1,050.00
04/17 8454 04/17 8454
6130 1110
Rent Expense Cash
1,250.00
04/19 8455 04/19 8455
6120 1110
Miscellaneous Expense Cash
55.85
04/20 8456 04/20 8456
6150 1110
Heating & Lighting Exp. Cash
403.67
04/23 8457 04/23 8457
6140 1110
Telephone Expense Cash
576.32
04/30 8458 04/30 8458
6160 1110
Salaries Expense Cash
3,186.90
04/30 8459 04/30 8459
2120 1110
Sales Tax Payable Cash
2,501.72
04/30 8460 04/30 8460
3120 1110
Susan Taylor, Drawing Cash
1,500.00
Credit
1,287.50 525.65 460.15
Totals
85.00 21.00 1,029.00 1,250.00 55.85 403.67 576.32 3,186.90 2,501.72 1,500.00 -------------- -------------12,882.76 12,882.76 ============== ==============
Copier Solutions Sales Journal 04/30/-Date
Inv. No.
Acct.
Title
04/03 733 04/03 733 04/03 733 04/03 733 04/03 733
1130 4110 2120 5110 1140
AR/Malott Realty Co. Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
04/06 734
1130
AR/Morgan Home Center
Debit
Credit
6,819.11 6,373.00 446.11 3,397.50 3,397.50 931.33
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Page 19
4/12/2024
04/06 734 04/06 734 04/06 734 04/06 734
4110 2120 5110 1140
Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
04/09 735 04/09 735 04/09 735 04/09 735 04/09 735
1130 4110 2120 5110 1140
AR/Carol's Office Products Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
3,771.96
04/12 736 04/12 736 04/12 736 04/12 736 04/12 736
1130 4110 2120 5110 1140
AR/Siegel Mortgage Co. Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
2,897.45
04/17 737 04/17 737 04/17 737 04/17 737 04/17 737
1130 4110 2120 5110 1140
AR/Siegel Mortgage Co. Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
1,016.50
04/21 738 04/21 738 04/21 738 04/21 738 04/21 738
1130 4110 2120 5110 1140
AR/J & M Construction Co. Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
177.30
04/25 739 04/25 739 04/25 739 04/25 739 04/25 739
1130 4110 2120 5110 1140
AR/Klein & Associates Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
1,464.13
04/30 740 04/30 740 04/30 740 04/30 740 04/30 740
1130 4110 2120 5110 1140
AR/Baer Insurance Agency Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
6,497.04
Totals
870.40 60.93 514.22 514.22 3,525.20 246.76 2,102.09 2,102.09 2,707.90 189.55 1,619.26 1,619.26 950.00 66.50 558.80 558.80 165.70 11.60 99.30 99.30 1,368.35 95.78 830.95 830.95 6,072.00 425.04 3,219.06 3,219.06 -------------- -------------35,916.00 35,916.00 ============== ==============
Copier Solutions Cash Receipts Journal 04/30/-Date
Refer.
Acct.
Title
Debit
04/03 726 04/03 726 04/03 726
1110 4130 1130
Cash Sales Discount AR/Tasler Corporation
6,070.35 123.88
04/10 731 04/10 731 04/10 731
1110 4130 1130
Cash Sales Discount AR/Florence Carpets
1,555.31 31.74
Credit
6,194.23
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1,587.05
Chapter 5 - Manual
Page 20
4/12/2024
04/12 716 04/12 716 04/12 716
1110 4130 1130
Cash Sales Discount AR/Morgan Home Center
1,644.95 33.54
04/24 27 04/24 27 04/24 27
1110 1120 7110
Cash Notes Receivable Interest Income
3,417.00
04/27 732 04/27 732 04/27 732
1110 4130 1130
Cash Sales Discount AR/Siegel Mortgage Co.
5,880.00 120.00
1,678.49 3,350.00 67.00
6,000.00 -------------- -------------18,876.77 18,876.77 ============== ==============
Totals Copier Solutions Schedule of Accounts Payable 04/30/-Name
Balance
AMS Paper Depot Cody Industries, Inc. Nozaki Corporation Starr Enterprises Tokuda Corporation
565.50 1,417.00 3,050.00 1,575.00 2,135.00 ----------------8,742.50 =================
Total
Copier Solutions Accounts Payable Ledger 04/30/-Account
Journal
Date
Refer.
Debit
Credit
AMS Paper Depot Balance Forward
Balance 565.50Cr
Cody Industries, Inc. Balance Forward Purchases
04/23 428
Nozaki Corporation Purchases Cash Payments Purchases
02/10 426 02/21 8439 04/28 429
15,250.00
REM Paper Company Balance Forward Cash Payments
04/14 8453
1,050.00
312.00 15,250.00 3,050.00
Starr Enterprises Balance Forward © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1,105.00Cr 1,417.00Cr 15,250.00Cr .00 3,050.00Cr 1,050.00Cr .00 670.82Cr
Chapter 5 - Manual
Cash Payments Purchases
Page 21
03/21 8443 03/27 427
4/12/2024
670.82 1,575.00
Tokuda Corporation Balance Forward
.00 1,575.00Cr 2,135.00Cr
Copier Solutions Schedule of Accounts Receivable 04/30/-Name
Balance
Baer Insurance Agency Carol's Office Products J & M Construction Co. Klein & Associates Malott Realty Co. Morgan Home Center Siegel Mortgage Co. Tasler Corporation Total
8,480.18 10,308.00 2,291.78 3,871.63 6,819.11 931.33 6,419.95 6,194.23 ----------------45,316.21 =================
Copier Solutions Accounts Receivable Ledger 04/30/-Account
Journal
Date
Refer.
Debit
Baer Insurance Agency Balance Forward Sales Sales
03/12 727 04/30 740
Carol's Office Products Balance Forward General Sales Sales
03/17 R705 03/20 730 04/09 735
Florence Carpets Balance Forward Sales Cash Receipts
03/23 731 04/10 731
573.41
J & M Construction Co. Balance Forward Sales General Sales
03/02 725 04/10 R725 04/21 738
1,106.01
Credit
Balance 1,603.40Dr 1,983.14Dr 8,480.18Dr
379.74 6,497.04
508.25 2,186.01 3,771.96
1,587.05
63.08 177.30
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4,858.28Dr 4,350.03Dr 6,536.04Dr 10,308.00Dr 1,013.64Dr 1,587.05Dr .00 1,071.55Dr 2,177.56Dr 2,114.48Dr 2,291.78Dr
Chapter 5 - Manual
Page 22
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Klein & Associates Balance Forward Cash Receipts Sales Cash Receipts Sales Sales
02/28 724 02/28 724 03/10 720 03/15 729 04/25 739
Malott Realty Co. Balance Forward Cash Receipts Sales
03/03 718 04/03 733
Morgan Home Center Balance Forward Sales Sales Cash Receipts
03/14 728 04/06 734 04/12 716
167.78 931.33
Siegel Mortgage Co. Balance Forward Sales Sales Sales Cash Receipts
03/31 732 04/12 736 04/17 737 04/27 732
7,151.35 2,897.45 1,016.50
Tasler Corporation Sales Cash Receipts
03/07 726 04/03 726
12,388.46
12,388.46 12,388.46 1,445.25 2,407.50 1,464.13
12,712.50 6,819.11
1,445.25Dr 10,943.21Cr 1,445.25Dr .00 2,407.50Dr 3,871.63Dr 12,712.50Dr .00 6,819.11Dr
1,678.49
1,510.71Dr 1,678.49Dr 2,609.82Dr 931.33Dr
6,000.00
1,354.65Dr 8,506.00Dr 11,403.45Dr 12,419.95Dr 6,419.95Dr
6,194.23
12,388.46Dr 6,194.23Dr
Copier Solutions Inventory List 04/30/-Stock
Unit
On
On
Reorder
Last
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Retail
Chapter 5 - Manual
Page 23
4/12/2024
No.
Description
Meas. Hand
1010 1020 1030 1040 1050 2010 2020 2030 2040 2050 2060 3010 3020 3030 3040 3050 4010 4020 4030 4040 4050
Z95 Desktop Copier All-Pro Business Copier Office Color Copier Color Laser Copier Superb Mini Copier Phone Answer & Fax Desktop Facsimile Professional Fax Office Fax & Copier Portable Facsimile Nozaki Pro Copier AMS 16 lb. Copy Paper AMS 20 lb. Copy Paper AMS 24 lb. Copy Paper Facsimile Roll Paper Recycled 20 lb. Paper M-10 Copier Cartridge Color Copier Cartridge Laser Copier Cartridge CX10 Fax Cartridge Copier 12 oz. Toner
EA EA EA EA EA EA EA EA EA EA EA CS CS CS BX CS EA EA EA EA EA
Order
Point
Cost
Price
0 0 0 3 0 0 0 0 0 0 4 0 0 0 0 0 0 0 24 0 0
10 8 6 4 6 10 8 6 5 6 5 24 36 24 12 24 12 10 10 12 12
196.00 525.00 1010.00 1699.00 135.00 195.00 285.00 598.00 775.00 165.00 3050.00 13.00 22.65 25.00 14.95 16.75 34.75 52.00 41.25 27.00 7.50
349.00 899.00 1685.00 2895.00 225.00 329.95 475.00 999.00 1295.00 279.95 5789.00 21.95 37.85 42.50 24.95 27.95 58.95 89.35 69.00 45.00 12.95
12 13 5 1 12 13 9 7 7 12 0 28 61 28 23 30 17 22 1 21 16
Copier Solutions Inventory Transactions 04/30/-Date
Description
Inv./ P.O.
Sales Invoices 04/03 Nozaki Pro Copier 733 AMS 24 lb. Copy Paper Laser Copier Cartridge 04/06 Superb Mini Copier 734 M-10 Copier Cartridge Recycled 20 lb. Paper 04/09 Office Color Copier 735 Color Copier Cartridge AMS 16 lb. Copy Paper 04/12 Office Fax & Copier 736 M-10 Copier Cartridge 04/17 Desktop Facsimile 737 04/21 AMS 20 lb. Copy Paper 738 CX10 Fax Cartridge 04/25 Phone Answer & Fax 739 AMS 20 lb. Copy Paper 04/30 Nozaki Pro Copier 740 AMS 20 lb. Copy Paper Recycled 20 lb. Paper 04/10 M-10 Copier Cartridge R725 Purchase Orders 04/15 Laser Copier Cartridge 269
Quantity Sold
Selling Price
1 4 6 1 10 2 2 1 3 2 2 2 2 2 3 10 1 6 2 -1
5,789.00 42.50 69.00 225.00 58.95 27.95 1,685.00 89.35 21.95 1,295.00 58.95 475.00 37.85 45.00 329.95 37.85 5,789.00 37.85 27.95 58.95
Quan. Ord.
Quan. Recd.
24
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Cost Price
Chapter 5 - Manual
Page 24
4/12/2024
Purchase Invoices 04/23 Color Copier Cartridge 428 04/28 Nozaki Pro Copier 429
6 52.00 1 3,050.00 ------- ------24 7 ======= =======
--------61 =========
Totals
Copier Solutions Inventory Exceptions 04/30/-Stock No. 1030 point 1040 point 2060 4030 point
Description
Unit Meas
On Hand
Office Color Copier
EA
5
Color Laser Copier
EA
1
Nozaki Pro Copier Laser Copier Cartridge
EA EA
0 1
On Order
Reorder Point Exception 6
At/below reorder
3
4
At/below reorder
4 24
5 10
Out of stock At/below reorder
Copier Solutions Yearly Sales 04/30/-Stock No.
Description
Unit Meas
1010 1020 1030 1040 1050 2010 2020 2030 2040 2050 2060 3010 3020 3030 3040 3050 4010 4020 4030 4040 4050
Z95 Desktop Copier All-Pro Business Copier Office Color Copier Color Laser Copier Superb Mini Copier Phone Answer & Fax Desktop Facsimile Professional Fax Office Fax & Copier Portable Facsimile Nozaki Pro Copier AMS 16 lb. Copy Paper AMS 20 lb. Copy Paper AMS 24 lb. Copy Paper Facsimile Roll Paper Recycled 20 lb. Paper M-10 Copier Cartridge Color Copier Cartridge Laser Copier Cartridge CX10 Fax Cartridge Copier 12 oz. Toner
EA EA EA EA EA EA EA EA EA EA EA CS CS CS BX CS EA EA EA EA EA
Yearly Quantity
Yearly Amount
40 13,960.00 35 31,465.00 7 11,795.00 5 14,475.00 16 3,600.00 52 17,157.40 41 19,475.00 7 6,993.00 8 10,360.00 12 3,359.40 6 34,734.00 44 965.80 83 3,141.55 44 1,870.00 17 424.15 45 1,257.75 31 1,827.45 38 3,395.30 37 2,553.00 27 1,215.00 20 259.00 -------------- -------------615 184,282.80 ============== ==============
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Page 25
4/12/2024
Copier Solutions Trial Balance 04/30/-Acct. Number
Account Title
1110 1130 1140 1150 1160 1510 1511 1520 1521 2110 2120 2510 3110 3120 4110 4120 4130 5110 6110 6120 6130 6140 6150 6160 6170 6180 6190 6200 7110 8110
Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Warehouse Equipment Accum. Dep. -- Wrhs. Eq. Office Equipment Accum. Dep. -- Office Eq. Accounts Payable Sales Tax Payable Note Payable Susan Taylor, Capital Susan Taylor, Drawing Sales Sales Returns & Allow. Sales Discount Cost of Merchandise Sold Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq. Deprec. Exp. Office Eq. Interest Income Interest Expense
Debit
Totals
Credit
42,598.73 45,316.21 39,676.91 2,525.15 1,834.88 33,300.00 8,734.37 9,650.00 2,757.00 8,742.50 1,538.14 12,514.36 103,467.03 8,200.00 184,816.75 1,097.30 1,508.32 103,213.83 1,030.00 326.10 5,000.00 3,013.62 1,840.38 15,497.18 1,146.52 881.00 3,100.37 1,027.00 84.00 870.65 ----------------- ----------------322,654.15 322,654.15 ================= =================
Copier Solutions General Journal 04/30/-Date
Refer.
Acct.
Title
Debit
04/30 Adj.Ent. 04/30 Adj.Ent.
6180 1160
Insurance Expense Prepaid Insurance
305.30
04/30 Adj.Ent.
6170
Supplies Expense
377.15
Credit 305.30
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Page 26
4/12/2024
04/30 Adj.Ent.
1150
Supplies
377.15
04/30 Adj.Ent. 04/30 Adj.Ent.
6190 1511
Deprec. Exp. Wrhs. Eq. Accum. Dep. -- Wrhs. Eq.
648.37
04/30 Adj.Ent. 04/30 Adj.Ent.
6200 1521
Deprec. Exp. Office Eq. Accum. Dep. -- Office Eq.
232.00
04/30 Adj.Ent. 04/30 Adj.Ent.
6160 2140
Salaries Expense Salaries Payable
389.70
Totals
648.37 232.00 389.70 -------------- -------------1,952.52 1,952.52 ============== ==============
Copier Solutions Income Statement For Period Ended 04/30/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discount Total Operating Revenue
22,032.55 101.70 184,816.75 101.43 -58.95 -0.27 -1,097.30 -0.60 -309.16 -1.43 -1,508.32 -0.83 ------------- ------------- ------------- ---------21,664.44 100.00 182,211.13 100.00
Cost Cost of Merchandise Sold Total Cost Gross Profit
12,306.55 56.81 103,213.83 56.65 ------------- ------------- ------------- ---------12,306.55 56.81 103,213.83 56.65 ------------- ------------- ------------- ---------9,357.89 43.19 78,997.30 43.35
Operating Expenses Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq. Deprec. Exp. Office Eq. Total Operating Expenses Net Income from Operations
85.00 0.39 1,030.00 0.57 55.85 0.26 326.10 0.18 1,250.00 5.77 5,000.00 2.74 576.32 2.66 3,013.62 1.65 403.67 1.86 1,840.38 1.01 3,080.80 14.22 15,886.88 8.72 377.15 1.74 1,523.67 0.84 305.30 1.41 1,186.30 0.65 648.37 2.99 3,748.74 2.06 232.00 1.07 1,259.00 0.69 ------------- ------------- ------------- ---------7,014.46 32.38 34,814.69 19.11 ------------- ------------- ------------- ---------2,343.43 10.82 44,182.61 24.25
Other Revenue © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Page 27
Interest Income
4/12/2024
67.00
0.31
84.00
0.05
Other Expense Interest Expense
37.50 0.17 870.65 0.48 ------------- ------------- ------------- ---------2,372.93 10.95 43,395.96 23.82 ============= ============= ============= ==========
Net Income
Copier Solutions Statement of Owner's Equity For Period Ended 04/30/-Susan Taylor, Capital (Beg. of Period) Susan Taylor, Drawing Additional Investment Net Income Susan Taylor, Capital (End of Period)
93,467.03 -8,200.00 10,000.00 43,395.96 ------------138,662.99 =============
Copier Solutions Balance Sheet 04/30/-Assets Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Total Current Assets Warehouse Equipment Accum. Dep. -- Wrhs. Eq. Office Equipment Accum. Dep. -- Office Eq. Total Plant Assets
42,598.73 45,316.21 39,676.91 2,148.00 1,529.58 ------------131,269.43 33,300.00 -9,382.74 9,650.00 -2,989.00 ------------30,578.26 -------------
Total Assets
161,847.69 =============
Liabilities Accounts Payable Sales Tax Payable Salaries Payable Total Current Liabilities Note Payable
8,742.50 1,538.14 389.70 ------------10,670.34 12,514.36
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
Total Long-Term Liabilities
Page 28
4/12/2024
------------12,514.36 -------------
Total Liabilities
23,184.70
Owner's Equity Susan Taylor, Capital Susan Taylor, Drawing Net Income
103,467.03 -8,200.00 43,395.96 -------------
Total Owner's Equity
138,662.99 ------------161,847.69 =============
Total Liabilities & Equity
Copier Solutions Budget Report For Period Ended 04/30/-Budget
Actual
Diff. From Budget
%
Operating Revenue Operating Revenue Cost of Merchandise Sold Gross Profit
600,000.00 182,211.13 -417,788.87 -69.63 360,000.00 103,213.83 -256,786.17 -71.33 ------------- ------------- ------------- ---------240,000.00 78,997.30 -161,002.70 -67.08 ------------- ------------- ------------- ----------
Operating Expenses Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq. Deprec. Exp. Office Eq. Total Operating Expenses Net Income from Operations
3,800.00 1,030.00 -2,770.00 -72.89 1,000.00 326.10 -673.90 -67.39 20,000.00 5,000.00 -15,000.00 -75.00 12,000.00 3,013.62 -8,986.38 -74.89 7,000.00 1,840.38 -5,159.62 -73.71 60,000.00 15,886.88 -44,113.12 -73.52 7,500.00 1,523.67 -5,976.33 -79.68 3,500.00 1,186.30 -2,313.70 -66.11 11,000.00 3,748.74 -7,251.26 -65.92 4,500.00 1,259.00 -3,241.00 -72.02 ------------- ------------- ------------- ---------130,300.00 34,814.69 -95,485.31 -73.28 ------------- ------------- ------------- ---------109,700.00 44,182.61 -65,517.39 -59.72
Other Revenue Interest Income
200.00
84.00
-116.00
-58.00
Other Expense Interest Expense Net Income
3,000.00 870.65 -2,129.35 -70.98 ------------- ------------- ------------- ---------106,900.00 43,395.96 -63,504.04 -59.41
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Chapter 5 - Manual
Page 29
4/12/2024
============= ============= ============= ==========
Retirement Savings Plan 04/30/-Schedule of Contributions Age
Annual Contribution
Annual Yield
Retirement Savings
(Beginning Balance) 9,000.00 25 4,040.75 585.00 13,625.75 26 4,040.75 885.67 18,552.17 27 4,040.75 1,205.89 23,798.81 28 4,040.75 1,546.92 29,386.48 29 4,040.75 1,910.12 35,337.35 30 4,040.75 2,296.93 41,675.03 31 4,040.75 2,708.88 48,424.66 /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/ 59 4,040.75 35,320.50 582,753.48 60 4,040.75 37,878.98 624,673.21 61 4,040.75 40,603.76 669,317.72 62 4,040.75 43,505.65 716,864.12 63 4,040.75 46,596.17 767,501.04 64 4,040.75 49,887.57 821,429.36 Schedule of Retirement Income Age
Annual Income
Annual Yield
Savings Balance
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Chapter 5 - Manual
Page 30
4/12/2024
(Retirement Savings) 821,429.36 65 70,000.00 48,842.91 800,272.27 66 70,000.00 47,467.70 777,739.97 67 70,000.00 46,003.10 753,743.07 68 70,000.00 44,443.30 728,186.37 /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/ 78 70,000.00 22,026.56 360,896.70 79 70,000.00 18,908.29 309,804.99 80 70,000.00 15,587.32 255,392.31 81 70,000.00 12,050.50 197,442.81 82 70,000.00 8,283.78 135,726.59 83 70,000.00 4,272.23 69,998.82 84 69,998.82 .00 .00 Copier Solutions Summary Report As Of 04/30/-Cash Accounts Receivable Accounts Payable Net Sales Cost of Merchandise Sold
$42,598.73 $45,316.21 $8,742.50 $182,211.13 $103,213.83
Copier Solutions Summary Report As Of 04/30/-Cash Accounts Receivable Accounts Payable Net Sales Cost of Merchandise Sold
$42,598.73 $45,316.21 $8,742.50 $182,211.13 $103,213.83
Internet Activity Student responses to the Internet activity will vary.
AUDIT QUESTIONS 5-B 1. 2. 3. 4. 5. 6. 7. 8. 9.
$990.00 $3,362.00 $21,973.60 ($1,538.14 sales tax) Total debits and credits = $3,362.00 Total debits and credits = $12,882.76 Total debits and credits = $35,916.00 Total debits and credits = $18,876.77 $8,742.50 $45,316.21
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 5 - Manual
10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
Page 31
4/12/2024
$931.33 61 (62 minus 1 return) $184,282.80 $12,306.55 $138,662.99 $161,847.69 $23,184.70 $417,788.87 $95,485.31 $63,504.04 $4,040.75
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
Page 1
4/12/2024
Chapter 6
FIXED ASSETS STUDENT EXERCISES I. TRUE/FALSE 1. 2. 3. 4. 5. 6. 7. 8. 9.
T T T F T F T T F
II. QUESTIONS 1. Automobiles, trucks, computers, office equipment, and technological equipment. 2. $560.00 3. To show costs. To show reduction in value due to usage. To show asset disposition. To generate and post adjusting entries. To ensure adequate insurance coverage. In case of insurance claim, to determine the amount of the settlement. To estimate the worth of the asset for trade-in value. 4. General Journal report.
PROBLEM 6-A Savoy Merchandise Co. General Journal 11/30/13 Date
Refer.
Acct.
Title
Debit
11/01 113 11/01 113
1521 1520
Accum. Depr. Office Eqpt. Office Equipment
375.00
11/04 3839 11/04 3839
1520 1110
Office Equipment Cash
509.99
11/10 3840 11/10 3840
1520 1110
Office Equipment Cash
5,150.00
11/12 3841 11/12 3841
1530 1110
Office Furniture Cash
395.00
11/14 3842
1530
Office Furniture
589.95
Credit 375.00 509.99 5,150.00 395.00
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Chapter 6 - Manual
Page 2
4/12/2024
11/14 3842
1110
Cash
589.95
11/20 3843 11/20 3843
1510 1110
Vehicles Cash
12,000.00
11/25 3844 11/25 3844
1520 1110
Office Equipment Cash
2,785.00
12,000.00 2,785.00 -------------- -------------21,804.94 21,804.94 ============== ==============
Totals
Savoy Merchandise Co. Fixed Assets List 11/30/13 Date Acquired
Depr. Method
Useful Life
Original Cost
Salvage Value
Depr. Accts
110 Harada F80 Auto
05/17/13
MACRS
5
14,500.00
2,300.00
120 Veigel G350 Van
11/30/12
SL
5
18,000.00
1,500.00
130 Delivery Truck
10/03/13
SL
5
17,250.00
2,000.00
140 Pickup Truck
11/20/13
SL
5
12,000.00
1,800.00
210 M3 Printing Press
02/28/13
SL
7
58,500.00
5,000.00
215 Binding Machine
11/04/13
DDB
6
509.99
50.00
220 P500 Computer
07/18/13
DDB
5
2,450.00
300.00
225 HC-2530 Computer
11/25/13
DDB
5
2,785.00
225.00
230 HC10 Laser Printer
07/18/13
SL
5
1,650.00
175.00
240 Saga Notebook Comp
09/15/13
SL
4
2,295.00
250.00
250 Z10 Copy Machine
10/03/13
DDB
5
2,995.00
335.00
260 File Server
10/17/13
DDB
5
4,185.00
500.00
270 GX10 Laser Printer
10/17/13
DDB
5
2,189.50
350.00
280 Facsimile Machine
10/21/13
MACRS
5
3,899.00
400.00
290 K6 Telephone System
11/10/13
SL
7
5,150.00
515.00
310 Conf. Table & Chairs 01/31/13
MACRS
7
6,200.00
950.00
320 Receptionist Station 08/22/13
MACRS
7
2,195.00
350.00
1511 6130 1511 6130 1511 6130 1511 6130 1521 6520 1521 6520 1521 6520 1521 6520 1521 6520 1521 6520 1521 6520 1521 6520 1521 6520 1521 6520 1521 6520 1531 6525 1531 6525 1531 6525 1531 6525 1531 6525 1531 6525 1531 6525
Asset
330 Office Desk & Chair
06/16/13
SL
6
3,085.00
650.00
340 Storage Cabinet
10/09/13
SL
10
2,360.00
225.00
350 Office Desk
10/14/13
SL
10
1,495.00
260.00
360 Security Vault
10/27/13
SL
20
5,975.00
450.00
370 File Cabinet
11/12/13
MACRS
7
395.00
45.00
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Chapter 6 - Manual
380 Shelving
Page 3
11/14/13
SL
4/12/2024
10
589.95
75.00
----------170,653.44 ===========
Total Fixed Assets
Savoy Merchandise Co. Depreciation Schedules 11/30/13
(140) Pickup Truck Acquired on 11/20/13 Straight-Line Useful Life = 5 Original Cost = 12,000.00 Salvage Value = 1,800.00
Year
Annual Deprec.
Accum. Deprec.
Book Value
2013 2014 2015 2016 2017 2018
340.00 2,040.00 2,040.00 2,040.00 2,040.00 1,700.00
340.00 2,380.00 4,420.00 6,460.00 8,500.00 10,200.00
11,660.00 9,620.00 7,580.00 5,540.00 3,500.00 1,800.00
Savoy Merchandise Co. Depreciation Schedules 11/30/13 Annual
Accum.
Year
Deprec.
Deprec.
2013
28.33
28.33
2014
160.54
188.87
2015
107.03
295.90
2016
71.36
367.26
2017
47.57
414.83
2018
31.72
446.55
2019
13.44
459.99
Book Value (215) Binding Machine 481.66 Acquired on 11/04/13 321.12 Double Declining-Balance 214.09 Useful Life = 6 142.73 Original Cost = 509.99 95.16 Salvage Value = 50.00 63.44 50.00
Savoy Merchandise Co. Depreciation Schedules 11/30/13 Annual
Accum.
Deprec.
Deprec.
Book Year Value © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1531 6525
Chapter 6 - Manual
(225) HC-2530 Computer 2,599.33 Acquired on 11/25/13 1,559.60 Double Declining-Balance 935.76 Useful Life = 5 561.46 Original Cost = 2,785.00 336.88 Salvage Value = 225.00 225.00
Page 4
4/12/2024
2013
185.67
185.67
2014
1,039.73
1,225.40
2015
623.84
1,849.24
2016
374.30
2,223.54
2017
224.58
2,448.12
2018
111.88
2,560.00
Savoy Merchandise Co. Depreciation Schedules 11/30/13 Annual
Accum.
Year
Deprec.
Deprec.
2013
110.36
110.36
2014
662.14
772.50
2015
662.14
1,434.64
2016
662.14
2,096.78
2017
662.14
2,758.92
2018
662.14
3,421.06
2019
662.14
4,083.20
2020
551.80
4,635.00
Book Value (290) K6 Telephone System 5,039.64 Acquired on 11/10/13 4,377.50 Straight-Line 3,715.36 Useful Life = 7 3,053.22 Original Cost = 5,150.00 2,391.08 Salvage Value = 515.00 1,728.94 1,066.80 515.00
Savoy Merchandise Co. Depreciation Schedules 11/30/13 Annual
Accum.
Year
Deprec.
Deprec.
2013
56.45
56.45
2014
96.74
153.19
Book Value (370) File Cabinet 338.55 Acquired on 11/12/13 241.81
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
MACRS 172.72 Useful Life = 7 123.38 Original Cost = 395.00 88.11 Salvage Value = 45.00 52.88
Page 5
4/12/2024
2015
69.09
222.28
2016
49.34
271.62
2017
35.27
306.89
2018
35.23
342.12
2019
35.27
377.39
2020
17.61
395.00
17.61 0.00 Savoy Merchandise Co. Depreciation Schedules 11/30/13 Annual
Accum.
Year
Deprec.
Deprec.
2013
8.58
8.58
2014
51.50
60.08
2015
51.50
111.58
2016
51.50
163.08
2017
51.50
214.58
2018
51.50
266.08
2019
51.50
317.58
2020
51.50
369.08
2021
51.50
420.58
2022
51.50
472.08
2023
42.87
514.95
Book Value (380) Shelving 581.37 Acquired on 11/14/13 529.87 Straight-Line 478.37 Useful Life = 10 426.87 Original Cost = 589.95 375.37 Salvage Value = 75.00 323.87 272.37 220.87 169.37 117.87 75.00 Savoy Merchandise Co. Trial Balance 11/30/13 Acct. Number
Account Title
1110 1120 1130
Cash Accounts Receivable Merchandise Inventory
Debit
Credit
43,157.23 61,988.54 133,300.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
1140 1150 1510 1511 1520 1521 1530 1531 2110 2120 2510 3110 3120 3130 4110 4111 4112 5110 6110 6120 6125 6130 6140 6150 6510 6520 6525 6530 6540 6550 6560 6570 6580 7110 8110
Page 6
Prepaid Insurance Supplies Vehicles Accum. Depr. Vehicles Office Equipment Accum. Depr. Office Eqpt. Office Furniture Accum. Depr. Office Furn. Accounts Payable Sales Tax Payable Note Payable Emily Madigan, Capital Emily Madigan, Drawing Income Summary Sales Sales Returns & Allow. Sales Discounts Cost of Merchandise Sold Sales Salary Expense Advertising Expense Delivery Expense Depr. Expense Vehicles Supplies Expense Misc. Selling Expense Rent Expense Depr. Expense Off. Eqpt. Depr. Expense Off. Furn. Misc. General Expense Office Salary Expense Insurance Expense Telephone Expense Heating & Lighting Exp. Legal & Prof. Fees Exp. Interest Income Interest Expense Totals
4/12/2024
3,302.30 2,880.00 61,750.00 5,389.71 86,608.49 6,015.07 22,294.95 1,076.94 46,736.17 483.32 30,309.00 306,050.60 15,600.00 4,093.20 384,050.18 5,728.43 4,231.44 248,291.19 24,372.20 12,380.50 650.00 7,263.82 2,450.92 680.00 4,533.00 7,358.49 1,228.08 412.20 14,917.74 672.00 1,897.46 2,522.58 4,275.00 274.45 1,545.68 ----------------- ----------------780,385.44 780,385.44 ================= =================
Savoy Merchandise Co. General Journal 11/30/13 Date
Refer.
Acct.
Title
Debit
11/30 Adj.Ent 11/30 Adj.Ent
6550 1140
Insurance Expense Prepaid Insurance
345.00
11/30 Adj.Ent 11/30 Adj.Ent
6140 1150
Supplies Expense Supplies
645.00
11/30 Dep.Adj. 11/30 Dep.Adj. 11/30 Dep.Adj. 11/30 Dep.Adj. 11/30 Dep.Adj.
6130 6520 6525 1511 1521
Depr. Expense Vehicles Depr. Expense Off. Eqpt. Depr. Expense Off. Furn. Accum. Depr. Vehicles Accum. Depr. Office Eqpt.
Credit 345.00 645.00
1,061.67 1,520.17 253.99
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1,061.67 1,520.17
Chapter 6 - Manual
11/30 Dep.Adj.
Page 7
1531
Accum. Depr. Office Furn. Totals
4/12/2024
253.99 -------------- -------------3,825.83 3,825.83 ============== ==============
Savoy Merchandise Co. Income Statement For Period Ended 11/30/13 Monthly Amount
Monthly Percent
60,634.90
100.80
Yearly Amount
Yearly Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discounts Total Operating Revenue
384,050.18 102.66 -5,728.43 -1.53 -480.00 -0.80 -4,231.44 -1.13 ------------- ------------- ------------- ---------60,154.90 100.00 374,090.31 100.00
Cost Cost of Merchandise Sold Total Cost Gross Profit
38,350.90 63.75 248,291.19 66.37 ------------- ------------- ------------- ---------38,350.90 63.75 248,291.19 66.37 ------------- ------------- ------------- ---------21,804.00 36.25 125,799.12 33.63
Operating Expenses Sales Salary Expense Advertising Expense Delivery Expense Depr. Expense Vehicles Supplies Expense Misc. Selling Expense Total Selling Expenses
3,791.42 6.30 24,372.20 6.52 165.00 0.27 12,380.50 3.31 265.00 0.44 650.00 0.17 1,061.67 1.76 8,325.49 2.23 645.00 1.07 3,095.92 0.83 110.00 0.18 680.00 0.18 ------------- ------------- ------------- ---------6,038.09 10.04 49,504.11 13.23
Rent Expense Depr. Expense Off. Eqpt. Depr. Expense Off. Furn. Misc. General Expense Office Salary Expense Insurance Expense Telephone Expense Heating & Lighting Exp. Legal & Prof. Fees Exp.
930.00 1.55 4,533.00 1.21 1,520.17 2.53 8,878.66 2.37 253.99 0.42 1,482.07 0.40 80.00 0.13 412.20 0.11 2,940.00 4.89 14,917.74 3.99 345.00 0.57 1,017.00 0.27 507.00 0.84 1,897.46 0.51 601.25 1.00 2,522.58 0.67 350.00 0.58 4,275.00 1.14 ------------- ------------- ------------- ---------Total Administrative Expense 7,527.41 12.51 39,935.71 10.68 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
Page 8
Total Operating Expenses Net Income from Operations
4/12/2024
------------- ------------- ------------- ---------13,565.50 22.55 89,439.82 23.91 ------------- ------------- ------------- ---------8,238.50 13.70 36,359.30 9.72
Other Revenue Interest Income
85.35
0.14
274.45
0.07
Other Expense Interest Expense
104.00 0.17 1,545.68 0.41 ------------- ------------- ------------- ---------8,219.85 13.66 35,088.07 9.38 ============= ============= ============= ==========
Net Income
Savoy Merchandise Co. Statement of Owner's Equity For Period Ended 11/30/13 Emily Madigan, Capital (Beg. of Period) Emily Madigan, Drawing Net Income Emily Madigan, Capital (End of Period)
306,050.60 -15,600.00 30,994.87 ------------321,445.47 =============
Savoy Merchandise Co. Balance Sheet 11/30/13 Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Supplies Total Current Assets Vehicles Accum. Depr. Vehicles Office Equipment Accum. Depr. Office Eqpt. Office Furniture Accum. Depr. Office Furn. Total Plant Assets
43,157.23 61,988.54 133,300.00 2,957.30 2,235.00 ------------243,638.07 61,750.00 -6,451.38 86,608.49 -7,535.24 22,294.95 -1,330.93 ------------155,335.89 -------------
Total Assets
398,973.96 =============
Liabilities Accounts Payable Sales Tax Payable
46,736.17 483.32
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
Total Current Liabilities Note Payable Total Long Term Liabilities
Page 9
4/12/2024
------------47,219.49 30,309.00 ------------30,309.00 -------------
Total Liabilities
77,528.49
Owner's Equity Emily Madigan, Capital Emily Madigan, Drawing Net Income Total Owner's Equity Total Liabilities & Equity
306,050.60 -15,600.00 30,994.87 ------------321,445.47 ------------398,973.96 =============
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
Page 10
4/12/2024
Savoy Merchandise Co. Depreciation Schedules As Of 11/30/13
(140) Pickup Truck Acquired on 11/20/13 Depreciation Methods Useful Life = 5 Original Cost = 12,000.00 Salvage Value = 1,800.00
Year 2013 2014 2015 2016 2017 2018
SL Annual Deprec. $340.00 $2,040.00 $2,040.00 $2,040.00 $2,040.00 $1,700.00
DDB Annual Deprec. $800.00 $4,480.00 $2,688.00 $1,612.80 $619.20
MACRS Annual Deprec. $2,400.00 $3,840.00 $2,304.00 $1,382.40 $1,382.40 $691.20
MEMORANDUM TO:
Manager, Accounting Department
FROM:
Your name
DATE:
(Today's Date)
SUBJECT: Depreciation Schedule Comparisons As per your request, the following table depicts a comparison of the straightline, double declining-balance, and MACRS methods of depreciation for Asset No. 140-Pickup Truck.
(140) Pickup Truck
Year 2013
SL Annual Deprec. $340.00
DDB Annual Deprec. $800.00
MACRS Annual Deprec. $2,400.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
Acquired on 11/20/13 Depreciation Methods Useful Life = 5 Original Cost = 12,000.00 Salvage Value = 1,800.00
Page 11
2014 2015 2016 2017 2018
4/12/2024
$2,040.00 $2,040.00 $2,040.00 $2,040.00 $1,700.00
$4,480.00 $2,688.00 $1,612.80 $619.20
$3,840.00 $2,304.00 $1,382.40 $1,382.40 $691.20
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 6-A 1. 2. 3. 4. 5. 6. 7.
8. 9. 10. 11. 12. 13.
$1,495.00 $400.00 $170,653.44 November 10, 2013 $47.57 $272.37 Depr. Expense Vehicles Accum. Depr.Vehicles Depr. Expense Off. Eqpt. Accum. Depr. Office Eqpt. Depr. Expense Off. Furn. Accum. Depr. Office Furn. $8,219.85 9.38% $321,445.47 $398,973.96 double declining-balance double declining-balance
Debit $1,061.67
Credit $1,061.67
$1,520.17 $1,520.17 $253.99 $253.99
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
Page 12
4/12/2024
PROBLEM 6-B Savoy Merchandise Co. General Journal 11/30/13 Date
Refer.
Acct.
Title
Debit
11/01 113 11/01 113
1521 1520
Accum. Depr. Office Eqpt. Office Equipment
375.00
11/04 3839 11/04 3839
1520 1110
Office Equipment Cash
1,240.00
11/10 3840 11/10 3840
1520 1110
Office Equipment Cash
4,500.00
11/12 3841 11/12 3841
1530 1110
Office Furniture Cash
516.50
11/14 3842 11/14 3842
1530 1110
Office Furniture Cash
639.99
11/20 3843 11/20 3843
1510 1110
Vehicles Cash
11,950.00
11/25 3844 11/25 3844
1520 1110
Office Equipment Cash
3,095.00
Credit 375.00 1,240.00 4,500.00 516.50 639.99 11,950.00
3,095.00 -------------- -------------22,316.49 22,316.49 ============== ==============
Totals
Savoy Merchandise Co. Fixed Assets List 11/30/13 Date
Depr.
Useful
Original
Salvage
Acquired
Method
Life
Cost
Value
Accts
110 Harada F80 Auto
05/17/13
MACRS
5
14,500.00
2,300.00
120 Veigel G350 Van
11/30/12
SL
5
18,000.00
1,500.00
130 Delivery Truck
10/03/13
SL
5
17,250.00
2,000.00
140 Utility Vehicle
11/20/13
SL
5
11,950.00
1,250.00
210 M3 Printing Press
02/28/13
SL
7
58,500.00
5,000.00
215 Typesetting Machine
11/04/13
SL
6
1,240.00
75.00
220 P500 Computer
07/18/13
DDB
5
2,450.00
300.00
225 Web Server
11/25/13
DDB
5
3,095.00
235.00
230 HC10 Laser Printer
07/18/13
SL
5
1,650.00
175.00
1511 6130 1511 6130 1511 6130 1511 6130 1521 6520 1521 6520 1521 6520 1521 6520 1521
Depr. Asset
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
Page 13
4/12/2024
240 Saga Notebook Comp
09/15/13
SL
4
2,295.00
250.00
250 Z10 Copy Machine
10/03/13
DDB
5
2,995.00
335.00
260 File Server
10/17/13
DDB
5
4,185.00
500.00
270 CB10 Laser Printer
10/17/13
DDB
5
2,189.50
350.00
280 Alpha-5 Fax Machine
10/21/13
MACRS
5
3,899.00
400.00
290 Voice Mail System
11/10/13
DDB
7
4,500.00
500.00
310 Conf. Table & Chairs 01/31/13
MACRS
7
6,200.00
950.00
320 Receptionist Station 08/22/13
MACRS
7
2,195.00
350.00
330 Office Desk & Chair
06/16/13
SL
6
3,085.00
650.00
340 Storage Cabinet
10/09/13
SL
10
2,360.00
225.00
350 Office Desk
10/14/13
SL
10
1,495.00
260.00
360 Security Vault
10/27/13
SL
20
5,975.00
450.00
370 Bookshelf
11/12/13
MACRS
7
516.50
50.00
380 Glass Shelving
11/14/13
SL
10
639.99
70.00
----------171,164.99 ===========
Total Fixed Assets
Savoy Merchandise Co. Depreciation Schedules 11/30/13 Annual
Accum.
Year
Deprec.
Deprec.
2013
356.67
356.67
2014
2,140.00
2,496.67
2015
2,140.00
4,636.67
2016
2,140.00
6,776.67
2017
2,140.00
8,916.67
2018
1,783.33
10,700.00
Book Value (140) Utility Vehicle 11,593.33 Acquired on 11/20/13 9,453.33 Straight-Line 7,313.33 Useful Life = 5 5,173.33 Original Cost = 11,950.00 3,033.33 Salvage Value = 1,250.00 1,250.00
Savoy Merchandise Co. Depreciation Schedules 11/30/13 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
6520 1521 6520 1521 6520 1521 6520 1521 6520 1521 6520 1521 6520 1531 6525 1531 6525 1531 6525 1531 6525 1531 6525 1531 6525 1531 6525 1531 6525
Chapter 6 - Manual
Page 14
4/12/2024
Annual
Accum.
Year
Deprec.
Deprec.
2013
32.36
32.36
2014
194.17
226.53
2015
194.17
420.70
2016
194.17
614.87
2017
194.17
809.04
2018
194.17
1,003.21
2019
161.79
1,165.00
Book Value (215) Typesetting Machine 1,207.64 Acquired on 11/04/13 1,013.47 Straight-Line 819.30 Useful Life = 6 625.13 Original Cost = 1,240.00 430.96 Salvage Value = 75.00 236.79 75.00
Savoy Merchandise Co. Depreciation Schedules 11/30/13 Annual
Accum.
Year
Deprec.
Deprec.
2013
206.33
206.33
2014
1,155.47
1,361.80
2015
693.28
2,055.08
2016
415.97
2,471.05
2017
249.58
2,720.63
2018
124.79
2,845.42
Book Value (225) Web Server 2,888.67 Acquired on 11/25/13 1,733.20 Double Declining-Balance 1,039.92 Useful Life = 5 623.95 Original Cost = 3,095.00 374.37 Salvage Value = 235.00 249.58
Savoy Merchandise Co. Depreciation Schedules 11/30/13 Annual
Accum.
Deprec.
Deprec.
Book Year Value © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
(290) Voice Mail System 4,285.72 Acquired on 11/10/13 3,061.29 Double Declining-Balance 2,186.68 Useful Life = 7 1,561.95 Original Cost = 4,500.00 1,115.70 Salvage Value = 500.00 796.94
Page 15
4/12/2024
2013
214.28
214.28
2014
1,224.43
1,438.71
2015
874.61
2,313.32
2016
624.73
2,938.05
2017
446.25
3,384.30
2018
318.76
3,703.06
2019
227.69
3,930.75
2020
69.25
4,000.00
569.25 500.00 Savoy Merchandise Co. Depreciation Schedules 11/30/13 Annual
Accum.
Year
Deprec.
Deprec.
2013
73.81
73.81
2014
126.49
200.30
2015
90.34
290.64
2016
64.51
355.15
2017
46.12
401.27
2018
46.07
447.34
2019
46.12
493.46
2020
23.04
516.50
Book Value (370) Bookshelf 442.69 Acquired on 11/12/13 316.20 MACRS 225.86 Useful Life = 7 161.35 Original Cost = 516.50 115.23 Salvage Value = 50.00 69.16 23.04 0.00 Savoy Merchandise Co. Depreciation Schedules 11/30/13 Annual
Accum.
Year
Deprec.
Deprec.
2013
9.50
9.50
Book Value (380) Glass Shelving 630.49
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
Acquired on 11/14/13 573.49 Straight-Line 516.49 Useful Life = 10 459.49 Original Cost = 639.99 402.49 Salvage Value = 70.00 345.49
Page 16
4/12/2024
2014
57.00
66.50
2015
57.00
123.50
2016
57.00
180.50
2017
57.00
237.50
2018
57.00
294.50
2019
57.00
351.50
2020
57.00
408.50
2021
57.00
465.50
2022
57.00
522.50
2023
47.49
569.99
288.49 231.49 174.49 117.49 70.00
Savoy Merchandise Co. Trial Balance 11/30/13 Acct. Number
Account Title
1110 1120 1130 1140 1150 1510 1511 1520 1521 1530 1531 2110 2120 2510 3110 3120 3130 4110 4111 4112 5110 6110 6120 6125 6130 6140 6150
Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Supplies Vehicles Accum. Depr. Vehicles Office Equipment Accum. Depr. Office Eqpt. Office Furniture Accum. Depr. Office Furn. Accounts Payable Sales Tax Payable Note Payable Emily Madigan, Capital Emily Madigan, Drawing Income Summary Sales Sales Returns & Allow. Sales Discounts Cost of Merchandise Sold Sales Salary Expense Advertising Expense Delivery Expense Depr. Expense Vehicles Supplies Expense Misc. Selling Expense
Debit
Credit
42,645.68 61,988.54 133,300.00 3,302.30 2,880.00 61,700.00 5,389.71 86,998.50 6,015.07 22,466.49 1,076.94 46,736.17 483.32 30,309.00 306,050.60 15,600.00 4,093.20 384,050.18 5,728.43 4,231.44 248,291.19 24,372.20 12,380.50 650.00 7,263.82 2,450.92 680.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
6510 6520 6525 6530 6540 6550 6560 6570 6580 7110 8110
Page 17
Rent Expense Depr. Expense Off. Eqpt. Depr. Expense Off. Furn. Misc. General Expense Office Salary Expense Insurance Expense Telephone Expense Heating & Lighting Exp. Legal & Prof. Fees Exp. Interest Income Interest Expense Totals
4/12/2024
4,533.00 7,358.49 1,228.08 412.20 14,917.74 672.00 1,897.46 2,522.58 4,275.00 274.45 1,545.68 ----------------- ----------------780,385.44 780,385.44 ================= =================
Savoy Merchandise Co. General Journal 11/30/13 Date
Refer.
Acct.
Title
Debit
11/30 Adj.Ent. 11/30 Adj.Ent.
6550 1140
Insurance Expense Prepaid Insurance
350.00
11/30 Adj.Ent. 11/30 Adj.Ent.
6140 1150
Supplies Expense Supplies
688.00
11/30 Dep.Adj. 11/30 Dep.Adj. 11/30 Dep.Adj. 11/30 Dep.Adj. 11/30 Dep.Adj. 11/30 Dep.Adj.
6130 6520 6525 1511 1521 1531
Depr. Expense Vehicles Depr. Expense Off. Eqpt. Depr. Expense Off. Furn. Accum. Depr. Vehicles Accum. Depr. Office Eqpt. Accum. Depr. Office Furn. Totals
Credit 350.00 688.00
1,070.00 1,584.48 263.13 1,070.00 1,584.48 263.13 -------------- -------------3,955.61 3,955.61 ============== ==============
Savoy Merchandise Co. Income Statement For Period Ended 11/30/13 Monthly Amount
Monthly Percent
60,634.90
100.80
Yearly Amount
Yearly Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discounts Total Operating Revenue
384,050.18 102.66 -5,728.43 -1.53 -480.00 -0.80 -4,231.44 -1.13 ------------- ------------- ------------- ---------60,154.90 100.00 374,090.31 100.00
Cost © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 6 - Manual
Page 18
Cost of Merchandise Sold Total Cost Gross Profit
4/12/2024
38,350.90 63.75 248,291.19 66.37 ------------- ------------- ------------- ---------38,350.90 63.75 248,291.19 66.37 ------------- ------------- ------------- ---------21,804.00 36.25 125,799.12 33.63
Operating Expenses Sales Salary Expense Advertising Expense Delivery Expense Depr. Expense Vehicles Supplies Expense Misc. Selling Expense
3,791.42 6.30 24,372.20 6.52 165.00 0.27 12,380.50 3.31 265.00 0.44 650.00 0.17 1,070.00 1.78 8,333.82 2.23 688.00 1.14 3,138.92 0.84 110.00 0.18 680.00 0.18 ------------- ------------- ------------- ---------6,089.42 10.12 49,555.44 13.25
Total Selling Expenses Rent Expense Depr. Expense Off. Eqpt. Depr. Expense Off. Furn. Misc. General Expense Office Salary Expense Insurance Expense Telephone Expense Heating & Lighting Exp. Legal & Prof. Fees Exp.
930.00 1.55 4,533.00 1.21 1,584.48 2.63 8,942.97 2.39 263.13 0.44 1,491.21 0.40 80.00 0.13 412.20 0.11 2,940.00 4.89 14,917.74 3.99 350.00 0.58 1,022.00 0.27 507.00 0.84 1,897.46 0.51 601.25 1.00 2,522.58 0.67 350.00 0.58 4,275.00 1.14 ------------- ------------- ------------- ---------Total Administrative Expense 7,605.86 12.64 40,014.16 10.70 ------------- ------------- ------------- ---------Total Operating Expenses 13,695.28 22.77 89,569.60 23.94 ------------- ------------- ------------- ---------Net Income from Operations 8,108.72 13.48 36,229.52 9.68 Other Revenue Interest Income
85.35
0.14
274.45
0.07
Other Expense Interest Expense Net Income
104.00 0.17 1,545.68 0.41 ------------- ------------- ------------- ---------8,090.07 13.45 34,958.29 9.34 ============= ============= ============= ==========
Savoy Merchandise Co. Statement of Owner's Equity For Period Ended 11/30/13 Emily Madigan, Capital (Beg. of Period) Emily Madigan, Drawing Net Income Emily Madigan, Capital (End of Period)
306,050.60 -15,600.00 30,865.09 ------------321,315.69 =============
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Chapter 6 - Manual
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Savoy Merchandise Co. Balance Sheet 11/30/13 Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Supplies Total Current Assets Vehicles Accum. Depr. Vehicles Office Equipment Accum. Depr. Office Eqpt. Office Furniture Accum. Depr. Office Furn. Total Plant Assets
42,645.68 61,988.54 133,300.00 2,952.30 2,192.00 ------------243,078.52 61,700.00 -6,459.71 86,998.50 -7,599.55 22,466.49 -1,340.07 ------------155,765.66 -------------
Total Assets
398,844.18 =============
Liabilities Accounts Payable Sales Tax Payable Total Current Liabilities Note Payable Total Long Term Liabilities
46,736.17 483.32 ------------47,219.49 30,309.00 ------------30,309.00 -------------
Total Liabilities
77,528.49
Owner's Equity Emily Madigan, Capital Emily Madigan, Drawing Net Income Total Owner's Equity Total Liabilities & Equity
306,050.60 -15,600.00 30,865.09 ------------321,315.69 ------------398,844.18 =============
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Chapter 6 - Manual
Page 20
4/12/2024
Savoy Merchandise Co. Depreciation Schedules As Of 11/30/13 SL
DDB
MACRS
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Chapter 6 - Manual
(225) Web Server Acquired on 11/25/13 Depreciation Methods Useful Life = 5 Original Cost = 3,095.00 Salvage Value = 235.00
Page 21
Year 2013 2014 2015 2016 2017 2018
Annual Deprec. $95.33 $572.00 $572.00 $572.00 $572.00 $476.67
4/12/2024
Annual Deprec. $206.33 $1,155.47 $693.28 $415.97 $249.58 $124.79
Annual Deprec. $619.00 $990.40 $594.24 $356.54 $356.54 $178.28
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Chapter 6 - Manual
Page 22
4/12/2024
MEMORANDUM TO:
Manager, Accounting Department
FROM:
Your name
DATE:
(Today's Date)
SUBJECT: Depreciation Schedule Comparisons As per your request, the following table depicts a comparison of the straight-line, double declining-balance, and MACRS methods of depreciation for Asset No. 225-Web Server.
(225) Web Server Acquired on 11/25/13 Depreciation Methods Useful Life = 5 Original Cost = 3,095.00 Salvage Value = 235.00
Year 2013 2014 2015 2016 2017 2018
SL Annual Deprec. $95.33 $572.00 $572.00 $572.00 $572.00 $476.67
DDB Annual Deprec. $206.33 $1,155.47 $693.28 $415.97 $249.58 $124.79
MACRS Annual Deprec. $619.00 $990.40 $594.24 $356.54 $356.54 $178.28
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 6-B 1. 2. 3. 4. 5. 6. 7.
8. 9. 10. 11. 12. 13.
$18,000.00 $225.00 $171,164.99 November 10, 2013 $194.17 $1,115.70 Depr. Expense Vehicles Accum. Depr.Vehicles Depr. Expense Off. Eqpt. Accum. Depr. Office Eqpt. Depr. Expense Off. Furn. Accum. Depr. Office Furn. $21,804.00 23.94% $321,315.69 $77,528.49 double declining-balance straight-line
Debit $1,070.00
Credit $1,070.00
$1,584.48 $1,584.48 $263.13 $263.13
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Chapter 6 - Manual
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Chapter 7- Payroll
Page 1
4/12/2024
Chapter 7
PAYROLL STUDENT EXERCISES I.
TRUE/FALSE
1. 2. 3. 4. 5. 6. 7.
F F T T T F T
II. QUESTIONS 1. 26 2. The Current Payroll Journal Entry menu item generates the journal entry for salary expenses; employee federal, state, and city income taxes payable; employee Social Security—-OASDI and Medicare-—HI taxes payable, and voluntary deductions. The Employer’s Payroll Taxes menu item generates the journal entry for the employer's portion of Social Security—OASDI, Medicare—HI, federal unemployment, and state unemployment taxes payable. 3. Select the payroll transaction you wish to delete from the payroll transactions then click Delete. 4. The computer automatically numbers the checks in ascending sequence. 5. The Quarterly Report is used to report Social Security and Medicare taxable wages to the Internal Revenue Service.
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Chapter 7- Payroll
Page 2
4/12/2024
PROBLEM 7-A November Payroll:
Only the first paycheck for the November pay period is shown. The accuracy of the information in the payroll report will determine the accuracy of each paycheck. Warner Merchandising Co. Employee List 11/30/-Emp. No.
Employee Name/Address
Soc. Sec./ Mar. Stat.
210
Falgren, Eunice 509 Glendale Dr. Atlanta, GA 30338-4250
598-72-9533 Married W/H 3
12
6210
220
Griffith, Phillip 9711 Orchard Way Atlanta, GA 30327-1523
653-96-3849 Married W/H 1
12
6210
Mettler, Mary 11403 Highland Ln. Atlanta, GA 30360-8235
487-26-6347 Married W/H 5
12
Phelps, Donna 3945 Revere Run Atlanta, GA 30339-5738
658-78-4552 Single W/H 1
12
260
Schilling, Frank 1827 Deercross Dr. Atlanta, GA 30345-5020
478-53-8968 Married W/H 4
12
6170
270
Winters, Annette 2063 Carter Av. Atlanta, GA 30338-9325
590-71-5011 Single W/H 1
12
6210
Yoshino, Sumio
481-95-7732
12
240
250
280
# Pay G.L. Periods Acct.
Salary/ Rate 5,000.00
11.15 6210 11.25 6170 12.35 4,324.00
10.50 6170
2,925.00
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Chapter 7- Payroll
290
Page 3
11802 Woodhill Dr. Atlanta, GA 30319-1062
Married W/H 2
Zellmer, Kevin 857 Shaffer Ave. Atlanta, GA 30327-4835
520-69-8573 Married W/H 3
4/12/2024
12
6210 10.35
Warner Merchandising Co. Payroll Report 11/30/-Current
Quarterly
Yearly
210-Falgren, Eunice 6210-Sales Married Acct. 6210 W/H 3 598-72-9533 Pay Periods 12 Salary 5,000.00 Hourly Rate Reg. Hours O.T. Hours Check Number 562 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
5,000.00 446.67 183.16 310.00 72.50 226.93 75.00 35.00 350.00
10,000.00 893.34 366.32 620.00 145.00 453.86 150.00 70.00 700.00
55,000.00 4,913.37 2,014.76 3,410.00 797.50 2,496.23 825.00 385.00 3,850.00
3,300.74
6,601.48
36,308.14
220-Griffith, Phillip 6210-Sales Married Acct. 6210 W/H 1 653-96-3849 Pay Periods 12 Salary Hourly Rate 11.15 Reg. Hours 156.00 O.T. Hours Check Number 563 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,739.40 76.86 36.29 107.84 25.22 78.94 65.00 25.00 75.00
3,666.96 254.95 80.80 227.35 53.17 166.42 130.00 50.00 150.00
20,977.34 1,852.15 479.68 1,300.60 304.15 952.05 715.00 275.00 825.00
1,249.25
2,554.27
14,273.71
240-Mettler, Mary 6210-Sales Married Acct. 6210 W/H 5 487-26-6347 Pay Periods 12 Salary Hourly Rate 11.25 Reg. Hours 168.00 O.T. Hours 4.00 Check Number 564 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,957.50
3,847.50
21,720.95
30.15 121.37 28.38 88.84 85.00 35.00 100.00
57.80 238.55 55.79 174.62 170.00 70.00 200.00
338.70 1,346.71 314.95 985.81 935.00 385.00 1,100.00
1,468.76
2,880.74
16,314.78
250-Phelps, Donna 6170-Office Single Acct. 6170 W/H 1 658-78-4552 Pay Periods 12 Salary Hourly Rate 12.35
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance
2,025.40 192.77 48.87 125.57 29.37 91.92 65.00
4,146.51 399.89 102.00 257.08 60.13 188.19 130.00
22,909.25 2,214.94 565.60 1,420.36 332.19 1,039.73 715.00
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Chapter 7- Payroll
Page 4
Reg. Hours 164.00 O.T. Hours Check Number 565 Check Date 11/30/--
Dental Insurance Credit Union Employee SUTA Net Pay
260-Schilling, Frank 6170-Office Married Acct. 6170 W/H 4 478-53-8968 Pay Periods 12 Salary 4,324.00 Hourly Rate Reg. Hours O.T. Hours Check Number 566 Check Date 11/30/--
4/12/2024
25.00 100.00
50.00 200.00
275.00 1,100.00
1,346.90
2,759.22
15,246.43
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
4,324.00 299.64 143.02 268.09 62.70 196.24 80.00 30.00 300.00
8,648.00 599.28 286.04 536.18 125.40 392.48 160.00 60.00 600.00
47,564.00 3,296.04 1,573.22 2,948.99 689.70 2,158.64 880.00 330.00 3,300.00
2,944.31
5,888.62
32,387.41
270-Winters, Annette 6210-Sales Single Acct. 6210 W/H 1 590-71-5011 Pay Periods 12 Salary Hourly Rate 10.50 Reg. Hours 168.00 O.T. Hours 4.00 2.50 Check Number 567 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,879.50 170.88 42.36 116.53 27.25 85.30 65.00 25.00 50.00
3,643.50 324.44 79.58 225.90 52.83 165.36 130.00 50.00 100.00
19,942.14 1,769.86 434.13 1,236.43 289.18 905.06 715.00 275.00 550.00
1,297.18
2,515.39
13,767.48
280-Yoshino, Sumio 6170-Office Married Acct. 6170 W/H 2 481-95-7732 Pay Periods 12 Salary 2,925.00 Hourly Rate Reg. Hours O.T. Hours Check Number 568 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
2,925.00 181.04 84.69 181.35 42.41 132.75 70.00 28.00 50.00
5,775.00 350.83 166.04 358.05 83.74 262.10 140.00 56.00 100.00
5,775.00 350.83 166.04 358.05 83.74 262.10 140.00 56.00 100.00
2,154.76
4,258.24
4,258.24
290-Zellmer, Kevin 6210-Sales Married Acct. 6210 W/H 3 520-69-8573 Pay Periods 12 Salary Hourly Rate 10.35 Reg. Hours 140.00 O.T. Hours Check Number 569 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,449.00
1,449.00
1,449.00
19.04 89.84 21.01 65.76 70.00 25.00 60.00
19.04 89.84 21.01 65.76 70.00 25.00 60.00
19.04 89.84 21.01 65.76 70.00 25.00 60.00
1,098.35
1,098.35
1,098.35
Payroll Summary
Gross Pay FIT SIT Soc. Sec.--OASDI
21,299.80 1,367.86 587.58 1,320.59
41,176.47 2,822.73 1,157.62 2,552.95
195,337.68 14,397.19 5,591.17 12,110.98
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Chapter 7- Payroll
Page 5
Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
4/12/2024
308.84 966.68 575.00 228.00 1,085.00
597.07 1,868.79 1,080.00 431.00 2,110.00
2,832.42 8,865.38 4,995.00 2,006.00 10,885.00
14,860.25
28,556.31
133,654.54
Debit
Credit
Warner Merchandising Co. General Journal 11/30/-Date
Refer.
Acct.
Title
11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll
6210 6170 2140 2150 2160 2170 2155 2200 2210 2220 2130
Sales Salary Expense Office Salary Expense Emp. Fed. Inc. Tax Pay. Emp. State Inc. Tax Pay. Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Emp. City Inc. Tax Pay. Health Ins. Premiums Pay. Dental Ins. Premiums Pay. Credit Union Deduct. Pay. Salaries Payable
12,025.40 9,274.40
11/30 Pay. Tax 11/30 Pay. Tax 11/30 Pay. Tax 11/30 Pay. Tax 11/30 Pay. Tax
6190 2160 2170 2190 2180
Payroll Taxes Expense Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Unemploy. Tax Pay.--State Unemploy. Tax Pay.--Fed.
2,303.42
Totals
1,367.86 587.58 1,320.59 308.84 966.68 575.00 228.00 1,085.00 14,860.25 1,320.59 308.85 638.99 34.99 -------------- -------------23,603.22 23,603.22 ============== ==============
December Payroll:
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Chapter 7- Payroll
Page 6
4/12/2024
Only the first paycheck for the December pay period is shown. The accuracy of the information in the payroll report will determine the accuracy of each paycheck. Warner Merchandising Co. Payroll Report 12/31/-Current
Quarterly
Yearly
210-Falgren, Eunice 6210-Sales Married Acct. 6210 W/H 3 598-72-9533 Pay Periods 12 Salary 5,000.00 Hourly Rate Reg. Hours O.T. Hours Check Number 570 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
5,000.00 446.67 183.16 310.00 72.50 226.93 75.00 35.00 350.00
15,000.00 1,340.01 549.48 930.00 217.50 680.79 225.00 105.00 1,050.00
60,000.00 5,360.04 2,197.92 3,720.00 870.00 2,723.16 900.00 420.00 4,200.00
3,300.74
9,902.22
39,608.88
220-Griffith, Phillip 6210-Sales Married Acct. 6210 W/H 1 653-96-3849 Pay Periods 12 Salary Hourly Rate 11.15 Reg. Hours 176.00 O.T. Hours 3.50 Check Number 571 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
2,020.94 105.01 48.67 125.30 29.30 91.72 65.00 25.00 75.00
5,687.90 359.96 129.47 352.65 82.47 258.14 195.00 75.00 225.00
22,998.28 1,957.16 528.35 1,425.90 333.45 1,043.77 780.00 300.00 900.00
1,455.94
4,010.21
15,729.65
240-Mettler, Mary 6210-Sales Married Acct. 6210 W/H 5 487-26-6347 Pay Periods 12 Salary Hourly Rate 11.25 Reg. Hours 176.00 O.T. Hours Check Number 572 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,980.00
5,827.50
23,700.95
30.99 122.76 28.71 89.86 85.00 35.00 100.00
88.79 361.31 84.50 264.48 255.00 105.00 300.00
369.69 1,469.47 343.66 1,075.67 1,020.00 420.00 1,200.00
1,487.68
4,368.42
17,802.46
250-Phelps, Donna 6170-Office Single Acct. 6170 W/H 1 658-78-4552 Pay Periods 12 Salary Hourly Rate 12.35 Reg. Hours 160.00 O.T. Hours Check Number 573
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA
1,976.00 185.36 46.67 122.51 28.65 89.68 65.00 25.00 100.00
6,122.51 585.25 148.67 379.59 88.78 277.87 195.00 75.00 300.00
24,885.25 2,400.30 612.27 1,542.87 360.84 1,129.41 780.00 300.00 1,200.00
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Chapter 7- Payroll
Check Date
12/31/--
Page 7
4/12/2024
Net Pay
1,313.13
4,072.35
16,559.56
260-Schilling, Frank 6170-Office Married Acct. 6170 W/H 4 478-53-8968 Pay Periods 12 Salary 4,324.00 Hourly Rate Reg. Hours O.T. Hours Check Number 574 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
4,324.00 299.64 143.02 268.09 62.70 196.24 80.00 30.00 300.00
12,972.00 898.92 429.06 804.27 188.10 588.72 240.00 90.00 900.00
51,888.00 3,595.68 1,716.24 3,217.08 752.40 2,354.88 960.00 360.00 3,600.00
2,944.31
8,832.93
35,331.72
270-Winters, Annette 6210-Sales Single Acct. 6210 W/H 1 590-71-5011 Pay Periods 12 Salary Hourly Rate 10.50 Reg. Hours 176.00 O.T. Hours Check Number 575 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,848.00 166.16 40.96 114.58 26.80 83.87 65.00 25.00 50.00
5,491.50 490.60 120.54 340.48 79.63 249.23 195.00 75.00 150.00
21,790.14 1,936.02 475.09 1,351.01 315.98 988.93 780.00 300.00 600.00
1,275.63
3,791.02
15,043.11
280-Yoshino, Sumio 6170-Office Married Acct. 6170 W/H 2 481-95-7732 Pay Periods 12 Salary 2,925.00 Hourly Rate Reg. Hours O.T. Hours Check Number 576 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
2,925.00 181.04 84.69 181.35 42.41 132.75 70.00 28.00 50.00
8,700.00 531.87 250.73 539.40 126.15 394.85 210.00 84.00 150.00
8,700.00 531.87 250.73 539.40 126.15 394.85 210.00 84.00 150.00
2,154.76
6,413.00
6,413.00
290-Zellmer, Kevin 6210-Sales Married Acct. 6210 W/H 3 520-69-8573 Pay Periods 12 Salary Hourly Rate 10.35 Reg. Hours 176.00 O.T. Hours 4.00 4.00 Check Number 577 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,966.50 38.73 37.70 121.92 28.51 89.25 70.00 25.00 60.00
3,415.50 38.73 56.74 211.76 49.52 155.01 140.00 50.00 120.00
3,415.50 38.73 56.74 211.76 49.52 155.01 140.00 50.00 120.00
1,495.39
2,593.74
2,593.74
Payroll Summary
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance
22,040.44 1,422.61 615.86 1,366.51 319.58 1,000.30 575.00
63,216.91 4,245.34 1,773.48 3,919.46 916.65 2,869.09 1,655.00
217,378.12 15,819.80 6,207.03 13,477.49 3,152.00 9,865.68 5,570.00
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Chapter 7- Payroll
Page 8
Dental Insurance Credit Union Employee SUTA Net Pay
4/12/2024
228.00 1,085.00
659.00 3,195.00
2,234.00 11,970.00
15,427.58
43,983.89
149,082.12
Debit
Credit
Warner Merchandising Co. General Journal 12/31/-Date
Refer.
Acct.
Title
12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll
6210 6170 2140 2150 2160 2170 2155 2200 2210 2220 2130
Sales Salary Expense Office Salary Expense Emp. Fed. Inc. Tax Pay. Emp. State Inc. Tax Pay. Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Emp. City Inc. Tax Pay. Health Ins. Premiums Pay. Dental Ins. Premiums Pay. Credit Union Deduct. Pay. Salaries Payable
12,815.44 9,225.00
12/31 Pay. Tax 12/31 Pay. Tax 12/31 Pay. Tax 12/31 Pay. Tax 12/31 Pay. Tax
6190 2160 2170 2190 2180
Payroll Taxes Expense Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Unemploy. Tax Pay.--State Unemploy. Tax Pay.--Fed.
2,372.84
Totals
1,422.61 615.86 1,366.51 319.58 1,000.30 575.00 228.00 1,085.00 15,427.58 1,366.51 319.59 661.21 25.53 -------------- -------------24,413.28 24,413.28 ============== ==============
Warner Merchandising Co. Quarterly Report 12/31/-Soc. Sec.
Taxable
Taxable
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Chapter 7- Payroll
Page 9
Number
Employee Name
598-72-9533 653-96-3849 487-26-6347 658-78-4552 478-53-8968 590-71-5011 481-95-7732 520-69-8573
Falgren, Eunice Griffith, Phillip Mettler, Mary Phelps, Donna Schilling, Frank Winters, Annette Yoshino, Sumio Zellmer, Kevin Totals
4/12/2024
Soc. Sec.
Medicare
15,000.00 15,000.00 5,687.90 5,687.90 5,827.50 5,827.50 6,122.51 6,122.51 12,972.00 12,972.00 5,491.50 5,491.50 8,700.00 8,700.00 3,415.50 3,415.50 -------------- -------------63,216.91 63,216.91 ============== ==============
Total Employees 8
Only the first W-2 statement is shown. The accuracy of the information in the payroll report will determine the accuracy of each W-2 statement. Savings Plan 12/31/-Savings Planner Schedule Month Number
Monthly Contribution
Monthly Yield
Cumulative Total
(Beginning Balance) 35,000.00 1 2,000.00 196.88 37,196.88 2 2,000.00 209.23 39,406.11 3 2,000.00 221.66 41,627.77 4 2,000.00 234.16 43,861.93 5 2,000.00 246.72 46,108.65 6 2,000.00 259.36 48,368.01 7 2,000.00 272.07 50,640.08 8 2,000.00 284.85 52,924.93 9 2,000.00 297.70 55,222.63 10 2,000.00 310.63 57,533.26 /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\ © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 7- Payroll
Page 10
55 56 57 58 59 60 61 62 63
2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
4/12/2024
974.08 990.81 1,007.63 1,024.55 1,041.56 1,058.67 1,075.88 1,093.18 563.85
176,143.87 179,134.68 182,142.31 185,166.86 188,208.42 191,267.09 194,342.97 197,436.15 200,000.00
Warner Merchandising Co. Payroll Distribution (Gross Earnings) As Of 12/31/-Employee 210-Falgren, Eunice 220-Griffith, Phillip 240-Mettler, Mary 250-Phelps, Donna 260-Schilling, Frank 270-Winters, Annette 280-Yoshino, Sumio 290-Zellmer, Kevin
Gross Earnings $60,000.00 $22,998.28 $23,700.95 $24,885.25 $51,888.00 $21,790.14 $8,700.00 $3,415.50 ------------$217,378.12 =============
Warner Merchandising Co. Employee List 12/31/-Employee
G.L. Acct.
Salary/ Rate
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 7- Payroll
Falgren, Eunice Griffith, Phillip Mettler, Mary Phelps, Donna Schilling, Frank Winters, Annette Yoshino, Sumio Zellmer, Kevin
Page 11
6210 6210 6210 6170 6170 6210 6170 6210
4/12/2024
5000.00 11.15 11.25 12.35 4,324.00 10.50 2,925.00 10.35
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 7-A November Payroll: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
5 509 Glendale Dr. $11.15 $2,025.40 $52.83 $5,775.00 $1,098.35 $14,860.25 $195,337.68 $1,367.86 $308.84 $966.68
December Payroll: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
$1,455.94 $185.36 $752.40 575 $228.00 $13,477.49 $319.58 $2,372.84 $15,427.58 $5,827.50 $63,216.91 $2,197.92 $3,595.68 63 $259.36
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 7- Payroll
Page 12
4/12/2024
PROBLEM 7-B November Payroll:
Only the first paycheck for the November pay period is shown. The accuracy of the information in the payroll report will determine the accuracy of each paycheck.
Warner Merchandising Co. Employee List 11/30/-Emp. No.
Employee Name/Address
Soc. Sec./ Mar. Stat.
210
Falgren, Eunice 509 Glendale Dr. Atlanta, GA 30338-4250
598-72-9533 Married W/H 3
12
6210
220
Griffith, Phillip 9711 Orchard Way Atlanta, GA 30327-1523
653-96-3849 Single W/H 3
12
6210
Mettler, Mary 11403 Highland Ln. Atlanta, GA 30360-8235
487-26-6347 Married W/H 5
12
Phelps, Donna 3945 Revere Run Atlanta, GA 30339-5738
658-78-4552 Single W/H 1
12
260
Schilling, Frank 7102 Sidney Rd. Atlanta, GA 30345-5020
478-53-8968 Married W/H 4
12
6170
270
Winters, Annette 2063 Carter Av. Atlanta, GA 30338-9325
590-71-5011 Single W/H 1
12
6210
Yoshino, Sumio
481-95-7732
12
240
250
280
# Pay G.L. Periods Acct.
Salary/ Rate 5,000.00
11.15 6210 11.25 6170 12.35 4,350.00
10.50 6170
2,850.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 7- Payroll
290
Page 13
11802 Woodhill Dr. Atlanta, GA 30319-1062
Married W/H 2
Zender, Tracy 11732 Kettering Dr. Atlanta, GA 30345-0060
596-35-7381 Single W/H 1
4/12/2024
12
6210 10.50
Warner Merchandising Co. Payroll Report 11/30/-Current
Quarterly
Yearly
210-Falgren, Eunice 6210-Sales Married Acct. 6210 W/H 3 598-72-9533 Pay Periods 12 Salary 5,000.00 Hourly Rate Reg. Hours O.T. Hours Check Number 562 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
5,000.00 446.67 183.16 310.00 72.50 226.93 75.00 35.00 350.00
10,000.00 893.34 366.32 620.00 145.00 453.86 150.00 70.00 700.00
55,000.00 4,913.37 2,014.76 3,410.00 797.50 2,496.23 825.00 385.00 3,850.00
3,300.74
6,601.48
36,308.14
220-Griffith, Phillip 6210-Sales Single Acct. 6210 W/H 3 653-96-3849 Pay Periods 12 Salary Hourly Rate 11.15 Reg. Hours 144.00 O.T. Hours Check Number 563 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,605.60 47.23 24.20 99.55 23.28 72.87 65.00 25.00 75.00
3,533.16 225.32 68.71 219.06 51.23 160.35 130.00 50.00 150.00
20,843.54 1,822.52 467.59 1,292.31 302.21 945.98 715.00 275.00 825.00
1,173.47
2,478.49
14,197.93
240-Mettler, Mary 6210-Sales Married Acct. 6210 W/H 5 487-26-6347 Pay Periods 12 Salary Hourly Rate 11.25 Reg. Hours 168.00 O.T. Hours 6.50 Check Number 564 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,999.69
3,889.69
21,763.14
31.72 123.98 29.00 90.76 85.00 35.00 100.00
59.37 241.16 56.41 176.54 170.00 70.00 200.00
340.27 1,349.32 315.57 987.73 935.00 385.00 1,100.00
1,504.23
2,916.21
16,350.25
250-Phelps, Donna 6170-Office Single Acct. 6170 W/H 1 658-78-4552 Pay Periods 12 Salary
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT
2,074.80 200.18 51.07 128.64 30.08 94.16
4,195.91 407.30 104.20 260.15 60.84 190.43
22,958.65 2,222.35 567.80 1,423.43 332.90 1,041.97
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Chapter 7- Payroll
Page 14
Hourly Rate 12.35 Reg. Hours 168.00 O.T. Hours Check Number 565 Check Date 11/30/--
Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
260-Schilling, Frank 6170-Office Married Acct. 6170 W/H 4 478-53-8968 Pay Periods 12 Salary 4,350.00 Hourly Rate Reg. Hours O.T. Hours Check Number 566 Check Date 11/30/--
4/12/2024
65.00 25.00 100.00
130.00 50.00 200.00
715.00 275.00 1,100.00
1,380.67
2,792.99
15,280.20
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
4,350.00 303.54 144.37 269.70 63.08 197.42 80.00 30.00 300.00
8,674.00 603.18 287.39 537.79 125.78 393.66 160.00 60.00 600.00
47,590.00 3,299.94 1,574.57 2,950.60 690.08 2,159.82 880.00 330.00 3,300.00
2,961.89
5,906.20
32,404.99
270-Winters, Annette 6210-Sales Single Acct. 6210 W/H 1 590-71-5011 Pay Periods 12 Salary Hourly Rate 10.50 Reg. Hours 168.00 O.T. Hours 4.50 3.50 Check Number 567 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,908.38 175.22 43.65 118.32 27.67 86.61 65.00 25.00 50.00
3,672.38 328.78 80.87 227.69 53.25 166.67 130.00 50.00 100.00
19,971.02 1,774.20 435.42 1,238.22 289.60 906.37 715.00 275.00 550.00
1,316.91
2,535.12
13,787.21
280-Yoshino, Sumio 6170-Office Married Acct. 6170 W/H 2 481-95-7732 Pay Periods 12 Salary 2,850.00 Hourly Rate Reg. Hours O.T. Hours Check Number 568 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
2,850.00 169.79 81.35 176.70 41.33 129.35 70.00 28.00 50.00
5,700.00 339.58 162.70 353.40 82.66 258.70 140.00 56.00 100.00
5,700.00 339.58 162.70 353.40 82.66 258.70 140.00 56.00 100.00
2,103.48
4,206.96
4,206.96
290-Zender, Tracy 6210-Sales Single Acct. 6210 W/H 1 596-35-7381 Pay Periods 12 Salary Hourly Rate 10.50 Reg. Hours 152.00 O.T. Hours Check Number 569 Check Date 11/30/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,596.00 128.36 30.96 98.95 23.14 72.43 65.00 25.00 85.00
1,596.00 128.36 30.96 98.95 23.14 72.43 65.00 25.00 85.00
1,596.00 128.36 30.96 98.95 23.14 72.43 65.00 25.00 85.00
1,067.16
1,067.16
1,067.16
Payroll Summary
Gross Pay FIT SIT
21,384.47 1,470.99 590.48
41,261.14 2,925.86 1,160.52
195,422.35 14,500.32 5,594.07
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Chapter 7- Payroll
Page 15
Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
4/12/2024
1,325.84 310.08 970.53 570.00 228.00 1,110.00
2,558.20 598.31 1,872.64 1,075.00 431.00 2,135.00
12,116.23 2,833.66 8,869.23 4,990.00 2,006.00 10,910.00
14,808.55
28,504.61
133,602.84
Debit
Credit
Warner Merchandising Co. General Journal 11/30/-Date
Refer.
Acct.
Title
11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll 11/30 Payroll
6210 6170 2140 2150 2160 2170 2155 2200 2210 2220 2130
Sales Salary Expense Office Salary Expense Emp. Fed. Inc. Tax Pay. Emp. State Inc. Tax Pay. Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Emp. City Inc. Tax Pay. Health Ins. Premiums Pay. Dental Ins. Premiums Pay. Credit Union Deduct. Pay. Salaries Payable
12,109.67 9,274.80
11/30 Pay. Tax 11/30 Pay. Tax 11/30 Pay. Tax 11/30 Pay. Tax 11/30 Pay. Tax
6190 2160 2170 2190 2180
Payroll Taxes Expense Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Unemploy. Tax Pay.--State Unemploy. Tax Pay.--Fed.
2,313.01
Totals
1,470.99 590.48 1,325.84 310.08 970.53 570.00 228.00 1,110.00 14,808.55 1,325.84 310.07 641.53 35.57 -------------- -------------23,697.48 23,697.48 ============== ==============
December Payroll:
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 7- Payroll
Page 16
4/12/2024
Only the first paycheck for the December pay period is shown. The accuracy of the information in the payroll report will determine the accuracy of each paycheck.
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 7- Payroll
Page 17
4/12/2024
Warner Merchandising Co. Payroll Report 12/31/-Current
Quarterly
Yearly
210-Falgren, Eunice 6210-Sales Married Acct. 6210 W/H 3 598-72-9533 Pay Periods 12 Salary 5,000.00 Hourly Rate Reg. Hours O.T. Hours Check Number 570 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
5,000.00 446.67 183.16 310.00 72.50 226.93 75.00 35.00 350.00
15,000.00 1,340.01 549.48 930.00 217.50 680.79 225.00 105.00 1,050.00
60,000.00 5,360.04 2,197.92 3,720.00 870.00 2,723.16 900.00 420.00 4,200.00
3,300.74
9,902.22
39,608.88
220-Griffith, Phillip 6210-Sales Single Acct. 6210 W/H 3 653-96-3849 Pay Periods 12 Salary Hourly Rate 11.15 Reg. Hours 176.00 O.T. Hours 3.50 Check Number 571 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
2,020.94 100.85 40.13 125.30 29.30 91.72 65.00 25.00 75.00
5,554.10 326.17 108.84 344.36 80.53 252.07 195.00 75.00 225.00
22,864.48 1,923.37 507.72 1,417.61 331.51 1,037.70 780.00 300.00 900.00
1,468.64
3,947.13
15,666.57
240-Mettler, Mary 6210-Sales Married Acct. 6210 W/H 5 487-26-6347 Pay Periods 12 Salary Hourly Rate 11.25 Reg. Hours 176.00 O.T. Hours Check Number 572 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,980.00
5,869.69
23,743.14
30.99 122.76 28.71 89.86 85.00 35.00 100.00
90.36 363.92 85.12 266.40 255.00 105.00 300.00
371.26 1,472.08 344.28 1,077.59 1,020.00 420.00 1,200.00
1,487.68
4,403.89
17,837.93
250-Phelps, Donna 6170-Office Single Acct. 6170 W/H 1 658-78-4552 Pay Periods 12 Salary Hourly Rate 12.35 Reg. Hours 156.00 O.T. Hours Check Number 573 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,926.60 177.95 44.46 119.45 27.94 87.44 65.00 25.00 100.00
6,122.51 585.25 148.66 379.60 88.78 277.87 195.00 75.00 300.00
24,885.25 2,400.30 612.26 1,542.88 360.84 1,129.41 780.00 300.00 1,200.00
1,279.36
4,072.35
16,559.56
260-Schilling, Frank 6170-Office Married Acct. 6170
Gross Pay FIT SIT
4,350.00 303.54 144.37
13,024.00 906.72 431.76
51,940.00 3,603.48 1,718.94
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Chapter 7- Payroll
Page 18
W/H 4 478-53-8968 Pay Periods 12 Salary 4,350.00 Hourly Rate Reg. Hours O.T. Hours Check Number 574 Check Date 12/31/--
Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
270-Winters, Annette 6210-Sales Single Acct. 6210 W/H 1 590-71-5011 Pay Periods 12 Salary Hourly Rate 10.50 Reg. Hours 176.00 O.T. Hours Check Number 575 Check Date 12/31/--
4/12/2024
269.70 63.08 197.42 80.00 30.00 300.00
807.49 188.86 591.08 240.00 90.00 900.00
3,220.30 753.16 2,357.24 960.00 360.00 3,600.00
2,961.89
8,868.09
35,366.88
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
1,848.00 166.16 40.96 114.58 26.80 83.87 65.00 25.00 50.00
5,520.38 494.94 121.83 342.27 80.05 250.54 195.00 75.00 150.00
21,819.02 1,940.36 476.38 1,352.80 316.40 990.24 780.00 300.00 600.00
1,275.63
3,810.75
15,062.84
280-Yoshino, Sumio 6170-Office Married Acct. 6170 W/H 2 481-95-7732 Pay Periods 12 Salary 2,850.00 Hourly Rate Reg. Hours O.T. Hours Check Number 576 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
2,850.00 169.79 81.35 176.70 41.33 129.35 70.00 28.00 50.00
8,550.00 509.37 244.05 530.10 123.99 388.05 210.00 84.00 150.00
8,550.00 509.37 244.05 530.10 123.99 388.05 210.00 84.00 150.00
2,103.48
6,310.44
6,310.44
290-Zender, Tracy 6210-Sales Single Acct. 6210 W/H 1 596-35-7381 Pay Periods 12 Salary Hourly Rate 10.50 Reg. Hours 176.00 O.T. Hours 8.00 3.00 Check Number 577 Check Date 12/31/--
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
2,037.00 194.51 49.38 126.29 29.54 92.45 65.00 25.00 85.00
3,633.00 322.87 80.34 225.24 52.68 164.88 130.00 50.00 170.00
3,633.00 322.87 80.34 225.24 52.68 164.88 130.00 50.00 170.00
1,369.83
2,436.99
2,436.99
Payroll Summary
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Dental Insurance Credit Union Employee SUTA Net Pay
22,012.54 1,559.47 614.80 1,364.78 319.20 999.04 570.00 228.00 1,110.00
63,273.68 4,485.33 1,775.32 3,922.98 917.51 2,871.68 1,645.00 659.00 3,245.00
217,434.89 16,059.79 6,208.87 13,481.01 3,152.86 9,868.27 5,560.00 2,234.00 12,020.00
15,247.25
43,751.86
148,850.09
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Chapter 7- Payroll
Page 19
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Warner Merchandising Co. General Journal 12/31/-Date
Refer.
Acct.
Title
12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll 12/31 Payroll
6210 6170 2140 2150 2160 2170 2155 2200 2210 2220 2130
Sales Salary Expense Office Salary Expense Emp. Fed. Inc. Tax Pay. Emp. State Inc. Tax Pay. Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Emp. City Inc. Tax Pay. Health Ins. Premiums Pay. Dental Ins. Premiums Pay. Credit Union Deduct. Pay. Salaries Payable
12,885.94 9,126.60
12/31 Pay. Tax 12/31 Pay. Tax 12/31 Pay. Tax 12/31 Pay. Tax 12/31 Pay. Tax
6190 2160 2170 2190 2180
Payroll Taxes Expense Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Unemploy. Tax Pay.--State Unemploy. Tax Pay.--Fed.
2,371.04
Totals
Debit
Credit
1,559.47 614.80 1,364.78 319.20 999.04 570.00 228.00 1,110.00 15,247.25 1,364.78 319.18 660.38 26.70 -------------- -------------24,383.58 24,383.58 ============== ==============
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Chapter 7- Payroll
Page 20
4/12/2024
Warner Merchandising Co. Quarterly Report 12/31/-Soc. Sec. Number
Employee Name
598-72-9533 653-96-3849 487-26-6347 658-78-4552 478-53-8968 590-71-5011 481-95-7732 596-35-7381
Falgren, Eunice Griffith, Phillip Mettler, Mary Phelps, Donna Schilling, Frank Winters, Annette Yoshino, Sumio Zender, Tracy Totals
Taxable Soc. Sec.
Taxable Medicare
15,000.00 15,000.00 5,554.10 5,554.10 5,869.69 5,869.69 6,122.51 6,122.51 13,024.00 13,024.00 5,520.38 5,520.38 8,550.00 8,550.00 3,633.00 3,633.00 -------------- -------------63,273.68 63,273.68 ============== ==============
Total Employees 8
Only the first W-2 statement is shown. The accuracy of the information in the payroll report will determine the accuracy of each W-2 statement.
Savings Plan 12/31/-Savings Planner Schedule Month Number (Beginning Balance) 1 2 3
Monthly Contribution
Monthly Yield
Cumulative Total
2,048.35 2,048.35 2,048.35
116.67 129.30 142.00
20,000.00 22,165.02 24,342.67 26,533.02
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Chapter 7- Payroll
Page 21
4/12/2024
4 2,048.35 154.78 28,736.15 5 2,048.35 167.63 30,952.13 6 2,048.35 180.55 33,181.03 7 2,048.35 193.56 35,422.94 8 2,048.35 206.63 37,677.92 9 2,048.35 219.79 39,946.06 10 2,048.35 233.02 42,227.43 /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\ 55 2,048.35 915.57 159,918.89 56 2,048.35 932.86 162,900.10 57 2,048.35 950.25 165,898.70 58 2,048.35 967.74 168,914.79 59 2,048.35 985.34 171,948.48 60 2,048.35 1,003.17 175,000.00
Warner Merchandising Co. Payroll Distribution (Gross Earnings) As Of 12/31/-Employee 210-Falgren, Eunice 220-Griffith, Phillip 240-Mettler, Mary 250-Phelps, Donna 260-Schilling, Frank 270-Winters, Annette 280-Yoshino, Sumio 290-Zender, Tracy
10%
4%
Gross Earnings $60,000.00 $22,864.48 $23,743.14 $24,885.25 $51,940.00 $21,819.02 $8,550.00 $3,633.00 ------------$217,434.89 =============
210-Falgren, Eunice
2% 27%
220-Griffith, Phillip 240-Mettler, Mary 250-Phelps, Donna 260-Schilling, Frank
24%
270-Winters, Annette 11% 11%
11%
280-Yoshino, Sumio 290-Zender, Tracy
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Chapter 7- Payroll
Page 22
4/12/2024
Warner Merchandising Co. Employee List 12/31/-Employee
G.L. Acct.
Salary/ Rate
Falgren, Eunice Griffith, Phillip Mettler, Mary Phelps, Donna Schilling, Frank Winters, Annette Yoshino, Sumio Zellmer, Kevin
6210 6210 6210 6170 6170 6210 6170 6210
5000.00 11.15 11.25 12.35 4,350.00 10.50 2,850.00 10.50
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 7-B November Payroll: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
3 9711 Orchard Way $11.25 $1,999.69 $125.78 $3,672.38 $1,067.16 $14,808.55 $195,422.35 $590.48 $570.00 $14,808.55
December Payroll: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
$1,487.68 $303.54 $753.16 576 $1,110.00 $13,481.01 $1,364.78 $2,371.04 $15,247.25 $13,024.00 $63,273.68 $3,720.00 $1,129.41 $2,048.35 $1,003.17
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 8 – Manual
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Chapter 8
PARTNERSHIPS AND CORPORATIONS STUDENT EXERCISES I. MATCHING 1. 2. 3. 4. 5. 6. 7. 8.
d f a c g e h b
II. QUESTIONS 1. During the period-end closing process, the computer will generate closing entries to close the net income or loss to the income summary account. After these entries are posted, additional journal entries are made to distribute the income or loss from the income statement to each partner’s capital account based on the partnership agreement. General journal entries must also be entered to close the partner’s drawing accounts to their respective capital accounts. 2. A section referred to as Income Tax will be included at the end of the income statement for a corporation. This section reports the amount of income tax expense for the corporation. 3. The retained earnings statement reports changes in a corporation’s retained earnings. 4. The stockholders’ equity section reports the investment of the stockholders and the net income retained by the business.
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Chapter 8 – Manual
Page 2
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PROBLEM 8-A Nielsen Architects General Journal 12/31/-Date
Refer.
Acct.
Title
Debit
12/02 576 12/02 576
1130 2110
Supplies AP/Lerner Supply Company
315.00
12/03 930 12/03 930
1110 1120
Cash AR/Foley Associates, Inc.
5,554.00
12/04 951 12/04 951
1120 4110
AR/Rockmore Construction Fees
4,025.00
12/06 810 12/06 810
5140 1110
Utilities Expense Cash
136.13
12/08 811 12/08 811
5180 1110
Travel Expense Cash
158.00
12/10 812 12/10 812
2110 1110
AP/Riverview Media, Inc. Cash
902.00
12/10 952 12/10 952
1120 4110
AR/Foley Associates, Inc. Fees
3,250.00
12/12 577 12/12 577
1130 2110
Supplies AP/Stolle Office Products
148.50
12/16 813 12/16 813
5110 1110
Advertising Expense Cash
735.00
12/18 814 12/18 814
2110 1110
AP/Stolle Office Products Cash
456.00
12/18 953 12/18 953
1120 4110
AR/Security Engineering Co Fees
4,800.00
12/18 935 12/18 935
1110 1120
Cash AR/Security Engineering Co
7,996.00
12/20 815 12/20 815
5170 1110
Telephone Expense Cash
497.57
12/21 578 12/21 578
1510 2110
Office Equipment AP/Parker Office Products
500.00
12/22 816 12/22 816
5180 1110
Travel Expense Cash
315.00
12/23 817 12/23 817
3120 1110
Daniel Nielsen, Drawing Cash
Credit 315.00 5,554.00 4,025.00 136.13 158.00 902.00 3,250.00 148.50 735.00 456.00 4,800.00 7,996.00 497.57 500.00 315.00
2,450.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
2,450.00
Chapter 8 – Manual
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12/23 818 12/23 818
3140 1110
Kari Nielsen, Drawing Cash
2,450.00
12/23 819 12/23 819
3160 1110
Glenn Weldon, Drawing Cash
2,100.00
12/28 820 12/28 820
5200 1110
Miscellaneous Expense Cash
65.00
12/28 954 12/28 954
1120 4110
AR/Randall Development Co. Fees
2,500.00
12/30 821 12/30 821
5120 1110
Salaries Expense Cash
1,810.62
12/31 822 12/31 822
5130 1110
Rent Expense Cash
2,450.00 2,100.00 65.00 2,500.00 1,810.62 935.00 935.00 -------------- -------------42,098.82 42,098.82 ============== ==============
Totals
Nielsen Architects Trial Balance 12/31/-Acct. Number
Account Title
1110 1120 1130 1140 1510 1520 2110 3110 3120 3130 3140 3150 3160 4110 5110 5120 5130 5140 5150 5160 5170 5180 5190 5200
Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum. Deprec. Off. Eq. Accounts Payable Daniel Nielsen, Capital Daniel Nielsen, Drawing Kari Nielsen, Capital Kari Nielsen, Drawing Glenn Weldon, Capital Glenn Weldon, Drawing Fees Advertising Expense Salaries Expense Rent Expense Utilities Expense Insurance Expense Supplies Expense Telephone Expense Travel Expense Deprec. Exp.--Off. Eq. Miscellaneous Expense Totals
Debit
Credit
7,982.96 14,575.00 2,883.50 350.00 13,550.00 5,195.00 963.50 7,800.00 35,450.00 7,800.00 35,450.00 3,900.00 18,600.00 168,273.00 14,320.00 23,701.62 11,385.00 1,474.40 756.00 2,930.45 3,212.57 4,483.00 2,377.00 450.00 ----------------- ----------------193,931.50 193,931.50 ================= =================
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Chapter 8 – Manual
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Nielsen Architects Schedule of Accounts Payable 12/31/-Name
Balance
Lerner Supply Company Parker Office Products Stolle Office Products
315.00 500.00 148.50 ----------------963.50 =================
Total
Nielsen Architects Schedule of Accounts Receivable 12/31/-Name
Balance
Foley Associates, Inc. Randall Development Co. Rockmore Construction Security Engineering Co. Total
3,250.00 2,500.00 4,025.00 4,800.00 ----------------14,575.00 ================= Nielsen Architects General Journal 12/31/--
Date
Refer.
Acct.
Title
Debit
12/31 Adj.Ent. 12/31 Adj.Ent.
5160 1130
Supplies Expense Supplies
778.50
12/31 Adj.Ent. 12/31 Adj.Ent.
5150 1140
Insurance Expense Prepaid Insurance
110.00
12/31 Adj.Ent. 12/31 Adj.Ent.
5190 1520
Deprec. Exp.--Off. Eq. Accum. Deprec. Off. Eq.
228.74
Totals
Credit 778.50 110.00
228.74 -------------- -------------1,117.24 1,117.24 ============== ==============
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Nielsen Architects Income Statement For Year Ended 12/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Fees Total Operating Revenue
14,575.00 100.00 168,273.00 100.00 ------------- ------------- ------------- ---------14,575.00 100.00 168,273.00 100.00
Operating Expenses Advertising Expense Salaries Expense Rent Expense Utilities Expense Insurance Expense Supplies Expense Telephone Expense Travel Expense Deprec. Exp.--Off. Eq. Miscellaneous Expense Total Operating Expenses Net Income
735.00 5.04 14,320.00 8.51 1,810.62 12.42 23,701.62 14.09 935.00 6.42 11,385.00 6.77 136.13 0.93 1,474.40 0.88 110.00 0.75 866.00 0.51 778.50 5.34 3,708.95 2.20 497.57 3.41 3,212.57 1.91 473.00 3.25 4,483.00 2.66 228.74 1.57 2,605.74 1.55 65.00 0.45 450.00 0.27 ------------- ------------- ------------- ---------5,769.56 39.59 66,207.28 39.35 ------------- ------------- ------------- ---------8,805.44 60.41 102,065.72 60.65 ============= ============= ============= ==========
Nielsen Architects Balance Sheet 12/31/-Assets Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum. Deprec. Off. Eq.
7,982.96 14,575.00 2,105.00 240.00 13,550.00 -5,423.74 -------------
Total Assets
33,029.22 =============
Liabilities Accounts Payable Total Liabilities
963.50 ------------963.50
Owner's Equity © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 8 – Manual
Daniel Nielsen, Capital Daniel Nielsen, Drawing Kari Nielsen, Capital Kari Nielsen, Drawing Glenn Weldon, Capital Glenn Weldon, Drawing Net Income
Page 6
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7,800.00 -35,450.00 7,800.00 -35,450.00 3,900.00 -18,600.00 102,065.72 -------------
Total Owner's Equity
32,065.72 ------------33,029.22 =============
Total Liabilities & Equity
Nielsen Architects Distribution of Net Income Statement For Year Ended 12/31/-Daniel Nielsen 35% of Net Income Kari Nielson 35% of Net Income Glenn Weldon 30% of Net Income Net Income
$35,723.00 $35,723.00 $30,619.72 -----------$102,065.72 ============
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 8 – Manual
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MEMORANDUM TO:
Daniel Nielsen, Partner Kari Nielsen, Partner Glenn Weldon, Partner
DATE:
(Current Date)
FROM:
Student Name
SUBJECT: Distribution of Net Income For your information, the distribution of net income for the year ended December 31, 20-- is as follows: Nielsen Architects Distribution of Net Income Statement For Year Ended 12/31/-Daniel Nielsen 35% of Net Income Kari Nielson 35% of Net Income Glenn Weldon 30% of Net Income
$35,723.00 $35,723.00 $30,619.72 -----------$102,065.72 ============
Net Income
Nielsen Architects General Journal 12/31/-Date
Refer.
Acct.
Title
12/31 Clo.Ent. 12/31 Clo.Ent.
4110 3170
Fees Income Summary
168,273.00
12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent.
3170 5110 5120 5130 5140 5150 5160 5170 5180 5190 5200
Income Summary Advertising Expense Salaries Expense Rent Expense Utilities Expense Insurance Expense Supplies Expense Telephone Expense Travel Expense Deprec. Exp.--Off. Eq. Miscellaneous Expense
66,207.28
Totals
Debit
Credit 168,273.00
14,320.00 23,701.62 11,385.00 1,474.40 866.00 3,708.95 3,212.57 4,483.00 2,605.74 450.00 -------------- -------------234,480.28 234,480.28 ============== ==============
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Chapter 8 – Manual
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Nielsen Architects Trial Balance 12/31/-Acct. Number
Account Title
1110 1120 1130 1140 1510 1520 2110 3110 3120 3130 3140 3150 3160 3170
Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum. Deprec. Off. Eq. Accounts Payable Daniel Nielsen, Capital Daniel Nielsen, Drawing Kari Nielsen, Capital Kari Nielsen, Drawing Glenn Weldon, Capital Glenn Weldon, Drawing Income Summary
Debit
Totals
Credit
7,982.96 14,575.00 2,105.00 240.00 13,550.00 5,423.74 963.50 7,800.00 35,450.00 7,800.00 35,450.00 3,900.00 18,600.00 102,065.72 ----------------- ----------------127,952.96 127,952.96 ================= =================
Nielsen Architects General Journal 12/31/-Date
Refer.
Acct.
Title
Debit
12/31 Clo.Ent. 12/31 Clo.Ent.
4110 3170
Fees Income Summary
168,273.00
12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent.
3170 5110 5120 5130 5140 5150 5160 5170 5180 5190 5200
Income Summary Advertising Expense Salaries Expense Rent Expense Utilities Expense Insurance Expense Supplies Expense Telephone Expense Travel Expense Deprec. Exp.--Off. Eq. Miscellaneous Expense
66,207.28
12/31 Clo.Ent. 12/31 Clo.Ent.
3110 3120
Daniel Nielsen, Capital Daniel Nielsen, Drawing
35,450.00
12/31 Clo.Ent.
3130
Kari Nielsen, Capital
35,450.00
Credit 168,273.00 14,320.00 23,701.62 11,385.00 1,474.40 866.00 3,708.95 3,212.57 4,483.00 2,605.74 450.00 35,450.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 8 – Manual
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12/31 Clo.Ent.
3140
Kari Nielsen, Drawing
12/31 Clo.Ent. 12/31 Clo.Ent.
3150 3160
Glenn Weldon, Capital Glenn Weldon, Drawing
18,600.00
12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent.
3170 3110 3130 3150
Income Summary Daniel Nielsen, Capital Kari Nielsen, Capital Glenn Weldon, Capital
102,065.72
Totals
35,450.00 18,600.00 35,723.00 35,723.00 30,619.72 -------------- -------------426,046.00 426,046.00 ============== ==============
Nielsen Architects Trial Balance 12/31/-Acct. Number
Account Title
1110 1120 1130 1140 1510 1520 2110 3110 3130 3150
Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum. Deprec. Off. Eq. Accounts Payable Daniel Nielsen, Capital Kari Nielsen, Capital Glenn Weldon, Capital Totals
Debit
Credit
7,982.96 14,575.00 2,105.00 240.00 13,550.00 5,423.74 963.50 8,073.00 8,073.00 15,919.72 ----------------- ----------------38,452.96 38,452.96 ================= =================
Nielsen Architects Note Analysis 12/31/-Date of the Note Time of the Note Principal of the Note Interest Rate of the Note Amount of Interest Maturity Date of the Note Maturity Value of the Note
01/15/-60 Days 6,000.00 8.25 82.50 3/16/-6,082.50
Nielsen Architects Note Analysis 12/31/-Date of the Note Time of the Note
04/20/-30 Days
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Chapter 8 – Manual
Principal of the Note Interest Rate of the Note Amount of Interest Maturity Date of the Note Maturity Value of the Note
Page 10
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3,500.00 7.75 22.29 05/20/-3,522.29
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Nielsen Architects Note Analysis 12/31/-Date of the Note Time of the Note Principal of the Note Interest Rate of the Note Amount of Interest Maturity Date of the Note Maturity Value of the Note
07/12/-12 Months 9,500.00 10.25 973.75 7/12/---- (of the following year) 10,473.75
Nielsen Architects Note Analysis 12/31/-Date of the Note Time of the Note Principal of the Note Interest Rate of the Note Amount of Interest Maturity Date of the Note Maturity Value of the Note
10/05/-6 Months 4,000.00 11.50 230.00 4/5/---4,230.00
Nielsen Architects Note Analysis 12/31/-Date of the Note Time of the Note Principal of the Note Interest Rate of the Note Amount of Interest Maturity Date of the Note Maturity Value of the Note
11/01/-120 Days 5,000.00 12.75 212.50 3/1/---5,212.50
Student responses to the Internet activity will vary.
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Chapter 8 – Manual
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AUDIT QUESTIONS 8-A 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
$42,098.82 $500.00 $963.50 $14,575.00 $8,805.44 60.65% Daniel Nielsen = $35,450.00 Kari Nielsen = $35,450.00 Glenn Weldon = $18,600.00 $33,029.22 Daniel Nielsen = $8,073.00 Kari Nielsen = $8,073.00 Glenn Weldon = $15,919.72 $973.75 4/5/-- (of the following year) $5,212.50
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Chapter 8 – Manual
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PROBLEM 8-B Kramer Corporation General Journal 12/31/-Date
Refer.
Acct.
Title
Debit
12/02 4253 12/02 4253
3130 1110
Cash Dividends Cash
178,750.00
12/04 3101 12/04 3101
1110 1120
Cash Accounts Receivable
50,411.00
12/05 Div. 12/05 Div. 12/05 Div.
3140 3180 3170
Stock Dividends Stock Dividends Distrib. Pd-In Cap. Ex. Par--Com.
86,625.00
12/06 3135 12/06 3135 12/06 3135 12/06 3135
1120 5110 4110 1130
Accounts Receivable Cost of Merchandise Sold Sales Merchandise Inventory
289,990.00 92,796.00
12/08 Cert. 12/08 Cert.
3180 3110
Stock Dividends Distrib. Common Stock
69,300.00
12/08 4254 12/08 4254
2110 1110
Accounts Payable Cash
140,665.00
12/09 4255 12/09 4255
6110 1110
Advertising Expense Cash
7,475.00
12/09 3105 12/09 3105
1110 1120
Cash Accounts Receivable
289,990.00
12/11 5511 12/11 5511
1130 2110
Merchandise Inventory Accounts Payable
134,798.00
12/15 4256 12/15 4256
9110 1110
Corporate Income Tax Cash
35,750.00
12/15 4257 12/15 4257
6140 1110
Salaries Expense Cash
65,565.70
12/18 4258 12/18 4258
6130 1110
Utilities Expense Cash
2,956.00
12/19 3136 12/19 3136 12/19 3136 12/19 3136
1120 5110 4110 1130
Accounts Receivable Cost of Merchandise Sold Sales Merchandise Inventory
175,135.00 56,043.20
12/21 4259 12/21 4259
2110 1110
Accounts Payable Cash
134,798.00
12/24 4260
3115
Treasury Stock
75,625.00
Credit 178,750.00 50,411.00 69,300.00 17,325.00
289,990.00 92,796.00 69,300.00 140,665.00 7,475.00 289,990.00 134,798.00 35,750.00 65,565.70 2,956.00
175,135.00 56,043.20 134,798.00
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12/24 4260
1110
Cash
75,625.00
12/27 5512 12/27 5512
1130 2110
Merchandise Inventory Accounts Payable
173,050.00
12/27 4261 12/27 4261
6120 1110
Rent Expense Cash
13,000.00
12/29 4262 12/29 4262
6160 1110
Miscellaneous Expense Cash
12/31 Treas. 12/31 Treas.
3120 3160
Retained Earnings Approp. for Treas. Stock
30,000.00
12/31 Plant 12/31 Plant
3120 3150
Retained Earnings Approp. for Plant Expan.
300,000.00
173,050.00 13,000.00 455.00 455.00 30,000.00 300,000.00 -------------- -------------2,403,177.90 2,403,177.90 ============== ==============
Totals
Kramer Corporation Trial Balance 12/31/-Acct. Number
Account Title
1110 1120 1130 1140 1510 1520 2110 3110 3115 3120 3130 3140 3150 3160 3170 4110 5110 6110 6120 6130 6140 6150 6160 6170 9110
Cash Accounts Receivable Merchandise Inventory Supplies Equipment Accum. Deprec. Equipment Accounts Payable Common Stock Treasury Stock Retained Earnings Cash Dividends Stock Dividends Approp. for Plant Expan. Approp. for Treas. Stock Pd-In Cap. Ex. Par--Com. Sales Cost of Merchandise Sold Advertising Expense Rent Expense Utilities Expense Salaries Expense Supplies Expense Miscellaneous Expense Deprec. Exp. Equipment Corporate Income Tax Totals
Debit
Credit
463,383.00 175,135.00 2,202,224.80 8,820.00 46,125.00 18,450.00 173,050.00 1,329,300.00 75,625.00 665,551.00 178,750.00 86,625.00 300,000.00 30,000.00 17,325.00 5,636,905.00 3,543,865.20 143,175.00 161,500.00 31,133.00 800,256.00 18,957.00 3,905.00 8,452.00 222,650.00 ----------------- ----------------8,170,581.00 8,170,581.00
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Chapter 8 – Manual
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================= =================
Kramer Corporation General Journal 12/31/-Date
Refer.
Acct.
Title
Debit
12/31 Adj.Ent. 12/31 Adj.Ent.
6150 1140
Supplies Expense Supplies
12/31 Adj.Ent. 12/31 Adj.Ent.
6170 1520
Deprec. Exp. Equipment Accum. Deprec. Equipment Totals
Credit
1,180.00 1,180.00 810.20 810.20 -------------- -------------1,990.20 1,990.20 ============== ==============
Kramer Corporation Income Statement For Year Ended 12/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales Total Operating Revenue
465,125.00 100.00 5,636,905.00 100.00 ------------- ------------- ------------- ---------465,125.00 100.00 5,636,905.00 100.00
Cost Cost of Merchandise Sold Total Cost Gross Profit
148,839.20 32.00 3,543,865.20 62.87 ------------- ------------- ------------- ---------148,839.20 32.00 3,543,865.20 62.87 ------------- ------------- ------------- ---------316,285.80 68.00 2,093,039.80 37.13
Operating Expenses Advertising Expense Rent Expense Utilities Expense Salaries Expense Supplies Expense Miscellaneous Expense
7,475.00 13,000.00 2,956.00 65,565.70 1,180.00 455.00
1.61 2.79 0.64 14.10 0.25 0.10
143,175.00 161,500.00 31,133.00 800,256.00 20,137.00 3,905.00
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2.54 2.87 0.55 14.20 0.36 0.07
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Deprec. Exp. Equipment
810.20 0.17 9,262.20 0.16 ------------- ------------- ------------- ---------Total Operating Expenses 91,441.90 19.66 1,169,368.20 20.74 ------------- ------------- ------------- ---------Net Income from Operations 224,843.90 48.34 923,671.60 16.39 ------------- ------------- ------------- ---------Net Income before Income Tax 224,843.90 48.34 923,671.60 16.39 Income Tax Corporate Income Tax Net Income after Income Tax
35,750.00 7.69 222,650.00 3.95 ------------- ------------- ------------- ---------189,093.90 40.65 701,021.60 12.44 ============= ============= ============= ==========
Kramer Corporation Retained Earnings Statement For Year Ended 12/31/-Appropriated Approp. for Plant Expan. (Additional) Approp. for Treas. Stock (Additional) Retained Earnings Appropriated
300,000.00 30,000.00 ------------330,000.00
Unappropriated Retained Earnings (Beg. of Period) Cash Dividends Stock Dividends Transfer Approp. for Plant Expan. Transfer Approp. for Treas. Stock Net Income Retained Earnings Unappropriated Retained Earnings (End of Period)
995,551.00 -178,750.00 -86,625.00 -300,000.00 -30,000.00 701,021.60 ------------1,101,197.60 ------------1,431,197.60 =============
Kramer Corporation Balance Sheet 12/31/13 Assets Cash Accounts Receivable Merchandise Inventory Supplies Equipment Accum. Deprec. Equipment
463,383.00 175,135.00 2,202,224.80 7,640.00 46,125.00 -19,260.20 -------------
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Chapter 8 – Manual
Page 17
Total Assets
4/12/2024
2,875,247.60 =============
Liabilities Accounts Payable
173,050.00 -------------
Total Liabilities
173,050.00
Stockholders' Equity Common Stock Treasury Stock Retained Earnings Cash Dividends Stock Dividends Approp. for Plant Expan. Approp. for Treas. Stock Pd-In Cap. Ex. Par--Com. Net Income
1,329,300.00 -75,625.00 665,551.00 -178,750.00 -86,625.00 300,000.00 30,000.00 17,325.00 701,021.60 -------------
Total Stockholders' Equity Total Liabilities & Equity
2,702,197.60 ------------2,875,247.60 =============
Student Name EFFECTIVE INTEREST METHOD: DISCOUNT Bond Issue: Carrying Value: Length (years): Face Int. Rate:
$205,000.00 $197,179.00 5 8.75%
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Chapter 8 – Manual
Effective Int. Rate:
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9.75%
Year
Cash Interest Payment
Effective Interest
Discount Amortization
1 2 3 4 5
$17,937.50 $17,937.50 $17,937.50 $17,937.50 $17,937.50
$19,224.95 $19,350.48 $19,488.24 $19,639.44 $19,805.38
$1,287.45 $1,412.98 $1,550.74 $1,701.94 $1,867.88
Balance of Unamort. Disc $7,821.00 $6,533.55 $5,120.57 $3,569.82 $1,867.88 $0.00
Carrying Value $197,179.00 $198,466.45 $199,879.43 $201,430.18 $203,132.12 $205,000.00
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MEMORANDUM TO:
Accounting Department
FROM:
Student Name
DATE:
(Today’s Date)
SUBJECT: Interest and Amortization of Bond Issue The following information contains the annual interest payments and the amortization of the bond discount:
Year 1 2 3 4 5
Cash Interest Payment
Effective Interest
Discount Amortization
$17,937.50 $17,937.50 $17,937.50 $17,937.50 $17,937.50
$19,224.95 $19,350.48 $19,488.24 $19,639.44 $19,805.38
$1,287.45 $1,412.98 $1,550.74 $1,701.94 $1,867.88
Balance of Unamort. Disc $7,821.00 $6,533.55 $5,120.57 $3,569.82 $1,867.88 $0.00
Carrying Value $197,179.00 $198,466.45 $199,879.43 $201,430.18 $203,132.12 $205,000.00
Kramer Corporation General Journal 12/31/-Date
Refer.
Acct.
Title
Debit
12/31 Clo.Ent. 12/31 Clo.Ent.
4110 3210
Sales Income Summary
5,636,905.00
12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent.
3210 5110 6110 6120 6130 6140 6150 6160 6170 9110
Income Summary Cost of Merchandise Sold Advertising Expense Rent Expense Utilities Expense Salaries Expense Supplies Expense Miscellaneous Expense Deprec. Exp. Equipment Corporate Income Tax
4,935,883.40
12/31 Clo.Ent. 12/31 Clo.Ent.
3210 3120
Income Summary Retained Earnings
701,021.60
12/31 Clo.Ent. 12/31 Clo.Ent.
3120 3130
Retained Earnings Cash Dividends
178,750.00
12/31 Clo.Ent. 12/31 Clo.Ent.
3120 3140
Retained Earnings Stock Dividends
86,625.00
Credit 5,636,905.00 3,543,865.20 143,175.00 161,500.00 31,133.00 800,256.00 20,137.00 3,905.00 9,262.20 222,650.00 701,021.60 178,750.00
86,625.00 -------------- --------------
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Totals
11,539,185.00 11,539,185.00 ============== ============== Kramer Corporation Trial Balance 12/31/--
Acct. Number
Account Title
1110 1120 1130 1140 1510 1520 2110 3110 3115 3120 3150 3160 3170
Cash Accounts Receivable Merchandise Inventory Supplies Equipment Accum. Deprec. Equipment Accounts Payable Common Stock Treasury Stock Retained Earnings Approp. for Plant Expan. Approp. for Treas. Stock Pd-In Cap. Ex. Par--Com. Totals
Debit
Credit
463,383.00 175,135.00 2,202,224.80 7,640.00 46,125.00 19,260.20 173,050.00 1,329,300.00 75,625.00 1,101,197.60 300,000.00 30,000.00 17,325.00 ----------------- ----------------2,970,132.80 2,970,132.80 ================= =================
Kramer Corporation Note Analysis 12/31/-Date of the Note Time of the Note Principal of the Note Interest Rate of the Note Amount of Interest Maturity Date of the Note Maturity Value of the Note
02/10/-60 Days 6,000.00 8.25 82.50 4/11/-6,082.50
Kramer Corporation Note Analysis 12/31/-Date of the Note Time of the Note Principal of the Note Interest Rate of the Note Amount of Interest Maturity Date of the Note Maturity Value of the Note
05/21/-30 Days 5,000.00 9.50 39.04 6/20/-5,039.04
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Kramer Corporation Note Analysis 12/31/-Date of the Note Time of the Note Principal of the Note Interest Rate of the Note Amount of Interest Maturity Date of the Note Maturity Value of the Note
06/07/-12 Months 10,000.00 9.75 975.00 6/7/-- (of the following year) 10,975.00
Kramer Corporation Note Analysis 12/31/-Date of the Note Time of the Note Principal of the Note Interest Rate of the Note Amount of Interest Maturity Date of the Note Maturity Value of the Note
10/25/-6 Months 5,000.00 10.50 262.50 4/25/-- (of the following year) 5,262.50
Kramer Corporation Note Analysis 12/31/-Date of the Note Time of the Note Principal of the Note Interest Rate of the Note Amount of Interest Maturity Date of the Note Maturity Value of the Note
12/01/-120 Days 8,000.00 11.00 293.33 3/31/-- (of the following year) 8,293.33
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 8-B 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
$2,403,177.90 $316,285.80 $1,169,368.20 $701,021.60 $1,431,197.60 $2,875,247.60 $173,050.00 $2,702,197.60 $1,101,197.60 $975.00 $5,262.50 3/31/-- (of the following year)
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Chapter
9 - Manual
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Chapter 9 FINANCIAL STATEMENT ANALYSIS STUDENT EXERCISES I.
MATCHING
1. 2. 3. 4. 5. 6.
d f a b e c
II. QUESTIONS 1.
2.
3.
4. 5.
Earnings Performance Analysis Efficiency Analysis Short-Term Financial Strength Long-Term Financial Strength Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities The computer places the transactions that affect long-term liabilities or capital in the financing activities section. The cash transactions that affect long-term assets are placed in the investing activities sections. The computer uses the direct method. Ratios should be compared to an industry wide ratio, the company's prior year ratio, and the company's expected ratio for evaluation.
6.
A company can improve its return on average total assets ratio by increasing its net income after federal income tax (increasing revenues or decreasing expenses) or by decreasing its investment in assets and thus becoming more productive.
7.
A company can improve its return on average stockholders' equity ratio by increasing its net income after federal income tax (increasing revenues or decreasing expenses) or by decreasing its average stockholders' equity and thus becoming more productive.
8.
A company can improve its rate earned on net sales ratio by increasing its net income after federal income tax (increasing revenues or decreasing expenses) or by decreasing its operating revenue and thus becoming more productive (in other words, becoming more profitable per dollar of sales).
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Chapter
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9 - Manual
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A company can improve its earnings per share ratio by increasing its net income after federal income tax (increasing revenues or decreasing expenses) or by decreasing the share of stock outstanding and thus becoming more productive (in other words, becoming more profitable per number of shares).
10. A company can only improve its price-earnings ratio by increasing its earnings per share since it can’t influence its market price directly. 11. A company can improve its accounts receivable turnover ratio by increasing its total operating revenues or by decreasing the average book value of accounts receivable and thus becoming more productive (in other words, collecting its receivable faster). 12. A company can only improve its average days for payment ratio by increasing its accounts receivable turnover ratio. 13. A company can improve its merchandise inventory ratio by increasing its total operating revenues (thereby increasing its cost of merchandise sold) or by decreasing the average merchandise inventory and thus becoming more productive (in other words, selling more with less inventory). 14. A company can only improve its average number of days sales in merchandise inventory ratio by increasing its merchandise inventory turnover ratio. 15. A company can improve its working capital by increasing its current assets or by decreasing its current liabilities. 16. A company can improve its current ratio by increasing its current assets or by decreasing its current liabilities. 17. A company can improve its acid-test ratio by increasing its cash and accounts receivable or by decreasing its current liabilities. 18. A company can improve its debt ratio by decreasing its current liabilities or by increasing its total assets. . 19. A company can improve its equity ratio by decreasing its total assets or by increasing its total stockholders’ equity. Problem 9-A a. Casey Corporation Income Stmt. Horizontal Analysis For Years Ended 12/31/-- and 12/31/--
Current Period
Previous Period
Change
Percent
869,695.50 -9,150.00
836,490.00 -6,000.00
33,205.50 -3,150.00
3.97 52.50
Operating Revenue Sales Sales Returns & Allow.
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Chapter
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Sales Discounts Total Operating Revenue
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-7,154.01 -3,595.00 -3,559.01 99.00 ------------- ------------- ------------- ---------853,391.49 826,895.00 26,496.49 3.20
Cost Cost of Merchandise Sold Total Cost Gross Profit
592,660.00 593,255.00 -595.00 -0.10 ------------- ------------- ------------- ---------592,660.00 593,255.00 -595.00 -0.10 ------------- ------------- ------------- ---------260,731.49 233,640.00 27,091.49 11.60
Operating Expenses Sales Salaries Expense Advertising Expense Depr. Exp. Store Eqpt. Insurance Expense Selling Store Supplies Expense Misc. Selling Expense Selling Expenses Office Salaries Expense Utilities Expense Depr. Exp. Building Depr. Exp. Office Eqpt. Insurance Expense General Office Supplies Expense Misc. General Expense Administrative Expenses Total Operating Expenses Net Income from Operations
74,368.94 63,873.10 10,495.84 16.43 13,750.00 11,500.00 2,250.00 19.57 3,935.00 2,960.00 975.00 32.94 4,595.00 3,350.00 1,245.00 37.16 820.32 1,729.30 -908.98 -52.56 850.00 1,525.00 -675.00 -44.26 ------------- ------------- ------------- ---------98,319.26 84,937.40 13,381.86 15.76 20,386.61 20,377.00 9.61 0.05 8,991.47 8,776.72 214.75 2.45 19,000.00 17,000.00 2,000.00 11.76 2,020.00 1,135.00 885.00 77.97 2,500.00 1,800.00 700.00 38.89 1,503.74 613.40 890.34 145.15 400.00 415.00 -15.00 -3.61 ------------- ------------- ------------- ---------54,801.82 50,117.12 4,684.70 9.35 ------------- ------------- ------------- ---------153,121.08 135,054.52 18,066.56 13.38 ------------- ------------- ------------- ---------107,610.41 98,585.48 9,024.93 9.15
Other Revenue Interest Income Gain on Sale Office Eqpt. Gain on Sale Store Eqpt.
815.50 65.00
1,833.00 130.00
-1,017.50 -130.00 65.00
-55.51 -100.00 100.00
Other Expense Interest Expense
10,779.80 6,211.14 4,568.66 73.56 ------------- ------------- ------------- ---------Net Income before Income Tax 97,711.11 94,337.34 3,373.77 3.58 Income Tax Corporate Income Tax Net Income after Income Tax
26,800.00 24,872.00 1,928.00 7.75 ------------- ------------- ------------- ---------70,911.11 69,465.34 1,445.77 2.08 ============= ============= ============= ==========
Interpreting this horizontal analysis reveals some significant changes. Gross profit increased 27,091.49 (11.60%) but net income after income tax only increased 1,445.77 (2.08%). The question is, why? Part of the answer is that even though operating revenue increased 26,496.49 (3.20%) cost of merchandise sold actually decreased 595.00 (0.10%). This, of course is very good. However, selling expenses increased 13,381.86 (15.76%) and administrative expenses increased 4,684.70 (9.35%) dragging down the observed gross profit increase. Additionally, interest expense © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter
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increased substantially by 4,568.66 (73.56%) driving down income even further. Reasons for these observed changes would need to be investigated to better understand the root causes of this decline in profitability. b. Casey Corporation Income Stmt. Vertical Analysis For Years Ended 12/31/-- and 12/31/--
Current Amount
Current Percent
Previous Amount
Previous Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discounts Total Operating Revenue
869,695.50 101.91 836,490.00 101.16 -9,150.00 -1.07 -6,000.00 -0.73 -7,154.01 -0.84 -3,595.00 -0.43 ------------- ------------- ------------- ---------853,391.49 100.00 826,895.00 100.00
Cost Cost of Merchandise Sold Total Cost Gross Profit
592,660.00 69.45 593,255.00 71.74 ------------- ------------- ------------- ---------592,660.00 69.45 593,255.00 71.74 ------------- ------------- ------------- ---------260,731.49 30.55 233,640.00 28.26
Operating Expenses Sales Salaries Expense Advertising Expense Depr. Exp. Store Eqpt. Insurance Expense Selling Store Supplies Expense Misc. Selling Expense Selling Expenses Office Salaries Expense Utilities Expense Depr. Exp. Building Depr. Exp. Office Eqpt. Insurance Expense General Office Supplies Expense Misc. General Expense Administrative Expenses Total Operating Expenses Net Income from Operations
74,368.94 8.71 63,873.10 7.72 13,750.00 1.61 11,500.00 1.39 3,935.00 0.46 2,960.00 0.36 4,595.00 0.54 3,350.00 0.41 820.32 0.10 1,729.30 0.21 850.00 0.10 1,525.00 0.18 ------------- ------------- ------------- ---------98,319.26 11.52 84,937.40 10.27 20,386.61 2.39 20,377.00 2.46 8,991.47 1.05 8,776.72 1.06 19,000.00 2.23 17,000.00 2.06 2,020.00 0.24 1,135.00 0.14 2,500.00 0.29 1,800.00 0.22 1,503.74 0.18 613.40 0.07 400.00 0.05 415.00 0.05 ------------- ------------- ------------- ---------54,801.82 6.42 50,117.12 6.06 ------------- ------------- ------------- ---------153,121.08 17.94 135,054.52 16.33 ------------- ------------- ------------- ---------107,610.41 12.61 98,585.48 11.92
Other Revenue Interest Income Gain on Sale Office Eqpt. Gain on Sale Store Eqpt.
815.50
0.10
65.00
0.01
1,833.00 130.00
0.22 0.02
Other Expense Interest Expense
10,779.80 1.26 6,211.14 0.75 ------------- ------------- ------------- ----------
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Net Income before Income Tax
97,711.11
4/12/2024
11.45
94,337.34
11.41
Income Tax Corporate Income Tax Net Income after Income Tax
26,800.00 3.14 24,872.00 3.01 ------------- ------------- ------------- ---------70,911.11 8.31 69,465.34 8.40 ============= ============= ============= ==========
This year is slightly less profitable than the previous year as shown by the percentage of net income after income tax relative to total operating revenue which declined from 8.40% in the prior year to 8.31% in the current year. However, this relatively minor change is inconsistent with the increased gross profit percentage from 28.26% to 30.55% which should have resulted in higher net income. The culprit, offsetting the benefits of a higher gross profit percentage, are increases in the percent of operating revenues spent on selling expenses from 10.27% to 11.52% and administrative expenses from 6.06% to 6.42%. c. Casey Corporation Balance Sheet Horizontal Analysis For Years Ended 12/31/-- and 12/31/-Current Period
Previous Period
Change
Percent
Assets Cash Notes Receivable Interest Receivable Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Total Current Assets Land Building Accum. Depr. Building Office Equipment Accum. Depr. Office Eqpt. Store Equipment Accum. Depr. Store Eqpt. Total Plant Assets Total Assets
123,751.43 67,534.52 56,216.91 83.24 14,959.00 15,091.00 -132.00 -0.87 307.50 335.00 -27.50 -8.21 159,250.00 59,650.00 99,600.00 166.97 9,371.00 77,933.00 -68,562.00 -87.98 2,815.00 1,520.00 1,295.00 85.20 1,505.00 1,835.50 -330.50 -18.01 1,218.00 3,063.00 -1,845.00 -60.24 ------------- ------------- ------------- ---------313,176.93 226,962.02 86,214.91 37.99 94,500.00 94,500.00 286,500.00 286,500.00 -57,479.00 -38,479.00 -19,000.00 49.38 14,245.00 11,145.00 3,100.00 27.82 -5,607.00 -3,587.00 -2,020.00 56.31 27,550.00 31,200.00 -3,650.00 -11.70 -12,524.00 -8,904.00 -3,620.00 40.66 ------------- ------------- ------------- ---------347,185.00 372,375.00 -25,190.00 -6.76 ------------- ------------- ------------- ---------660,361.93 599,337.02 61,024.91 10.18 ============= ============= ============= ==========
Liabilities Interest Payable Accounts Payable Salaries Payable Notes Payable Current Liabilities Mortgage Note Payable
1,755.00 1,325.00 430.00 32.45 110,401.00 97,111.00 13,290.00 13.69 1,898.00 1,454.00 444.00 30.54 5,190.00 4,950.00 240.00 4.85 ------------- ------------- ------------- ---------119,244.00 104,840.00 14,404.00 13.74 157,101.04 161,391.24 -4,290.20 -2.66 ------------- ------------- ------------- ----------
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Long-Term Liabilities
4/12/2024
157,101.04 161,391.24 -4,290.20 -2.66 ------------- ------------- ------------- ---------276,345.04 266,231.24 10,113.80 3.80
Total Liabilities Stockholders' Equity Capital Stock Retained Earnings Dividends Net Income Total Stockholders' Equity Total Liabilities & Equity
150,000.00 150,000.00 183,105.78 133,640.44 49,465.34 37.01 -20,000.00 -20,000.00 70,911.11 69,465.34 1,445.77 2.08 ------------- ------------- ------------- ---------384,016.89 333,105.78 50,911.11 15.28 ------------- ------------- ------------- ---------660,361.93 599,337.02 61,024.91 10.18 ============= ============= ============= ==========
Interpreting this horizontal analysis reveals some significant changes. Total assets increased 61,024.91 (10.18%) over the prior period’s ending balance. Once again the question is, why? Further analysis can help by looking at each asset, liability, and equity element focusing on those items causing the largest change. The largest dollar amount of change in assets was the increase in accounts receivable of 99,600.00 (166.97%) over the previous year. The next highest dollar changes were the 68,562.00 (87.98%) decrease in merchandise inventory, and the 56,216.91 (83.24%) increase in cash over the previous year’s ending balances. Explanations of why these changes occurred will help the company better understand its business. Total liabilities increased only 10,113.80 (3.80%) over the previous year’s ending balance. The largest dollar amount of change in liabilities was the increase in the accounts payable of 13,290.00 (13.69%) and the decrease in the mortgage note payable of 4,290.20 (2.66%). Total stockholders’ equity increased 50,911.11 (15.28%) over the previous year’s ending balance. Since there were no changes in capital stock, the only explanation for the change was net income of 70,911.11 less dividends of 20,000.00. Explanations of why these changes occurred will help the company better understand its business. d. Casey Corporation Balance Sheet Vertical Analysis For Years Ended 12/31/-- and 12/31/-Current Amount
Current Percent
Previous Amount
Previous Precent
Assets Cash Notes Receivable Interest Receivable Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Total Current Assets Land Building Accum. Depr. Building Office Equipment Accum. Depr. Office Eqpt. Store Equipment
123,751.43 18.74 67,534.52 11.27 14,959.00 2.27 15,091.00 2.52 307.50 0.05 335.00 0.06 159,250.00 24.12 59,650.00 9.95 9,371.00 1.42 77,933.00 13.00 2,815.00 0.43 1,520.00 0.25 1,505.00 0.23 1,835.50 0.31 1,218.00 0.18 3,063.00 0.51 ------------- ------------- ------------- ---------313,176.93 47.43 226,962.02 37.87 94,500.00 286,500.00 -57,479.00 14,245.00 -5,607.00 27,550.00
14.31 43.39 -8.70 2.16 -0.85 4.17
94,500.00 286,500.00 -38,479.00 11,145.00 -3,587.00 31,200.00
15.77 47.80 -6.42 1.86 -0.60 5.21
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Accum. Depr. Store Eqpt. Total Plant Assets Total Assets
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-12,524.00 -1.90 -8,904.00 -1.49 ------------- ------------- ------------- ---------347,185.00 52.58 372,375.00 62.13 ------------- ------------- ------------- ---------660,361.93 100.00 599,337.02 100.00 ============= ============= ============= ==========
Liabilities Interest Payable Accounts Payable Salaries Payable Notes Payable Current Liabilities Mortgage Note Payable Long-Term Liabilities Total Liabilities
1,755.00 0.27 1,325.00 0.22 110,401.00 16.72 97,111.00 16.20 1,898.00 0.29 1,454.00 0.24 5,190.00 0.79 4,950.00 0.83 ------------- ------------- ------------- ---------119,244.00 18.06 104,840.00 17.49 157,101.04 23.79 161,391.24 26.93 ------------- ------------- ------------- ---------157,101.04 23.79 161,391.24 26.93 ------------- ------------- ------------- ---------276,345.04 41.85 266,231.24 44.42
Stockholders' Equity Capital Stock Retained Earnings Dividends Net Income Total Stockholders' Equity Total Liabilities & Equity
150,000.00 22.71 150,000.00 25.03 183,105.78 27.73 133,640.44 22.30 -20,000.00 -3.03 -20,000.00 -3.34 70,911.11 10.74 69,465.34 11.59 ------------- ------------- ------------- ---------384,016.89 58.15 333,105.78 55.58 ------------- ------------- ------------- ---------660,361.93 100.00 599,337.02 100.00 ============= ============= ============= ==========
The vertical analysis above confirms the increase mentioned in the balance sheet horizontal analysis as accounts receivable and cash, expressed as a percentage of total assets, have gone from 9.95% to 24.12% and 11.27% to 18.74% respectively. This was offset by merchandise inventory, expressed as a percentage of total assets, which decreased from 13.00% to 1.42%. Total liabilities, expressed as a percentage of total assets, have decreased from 44.42% to 41.85%. As expected this resulted in stockholders’ equity, expressed as a percentage of total assets, to increase from 55.58% to 58.15%. e. Casey Corporation Ratio Analysis For Year Ended 12/31/--
Earnings Performance Analysis Rate Earned on Average Total Assets Rate Earned on Average Stockholders' Equity Rate Earned on Net Sales Earnings Per Share Price-Earnings Ratio
11.26% 19.78% 8.31% 1.09 4.45 times
Efficiency Analysis Accounts Receivable Turnover Ratio Average Days for Payment
7.80 times 47 days
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Merchandise Inventory Turnover Ratio Average Number of Days Sales in Merch. Inv.
13.58 times 27 days
Short-Term Financial Strength Working Capital Current Ratio Acid-Test Ratio
193,932.93 2.63 times 2.37 times
Long-Term Financial Strength Analysis Debt Ratio Equity Ratio Equity Per Share
Ratio Earnings Performance Analysis Rate earned on average total assets Rate earned on average stockholders’ equity Rate earned on total operating revenue Earnings per share Price-earnings ratio Efficiency Analysis Accounts receivable turnover ratio Average days for payment Merchandise inventory turnover ratio Average number of days sales in merchandise inventory Short-Term Financial Strength Working capital Current ratio Acid-test ratio Long-Term Financial Strength Debt ratio Equity ratio Equity per share
41.85% 58.15% 5.91
Enter Ratios Here
Prior Period
Industry Average
Expected
11.26%
10.0%
8.0%
9.1%
19.78%
22.51%
25.0%
20.0%
8.31%
8.40%
4.50%
4.00%
1.09 4.45 times
1.07 5.6 times
0.60 6.0 times
0.53 5.7 times
7.80 times
12 times
13 times
12 times
47 days
30 days
28 days
31 days
13.58 times
9.5 times
9.0 times
9.0 times
27 days
38 days
41 days
41 days
193,932.93 2.63 times 2.37 times
122,122.02 2.16 times 1.21 times
125,000.00 2.50 times 1.3 times
95,000.00 2.70 times 1.4 times
41.85% 58.15% 5.91
44.42% 55.58% 5.12
44.00% 56.00% 7.00
42.00% 58.00% 6.00
Casey Corporation shows some strength in earnings performance as shown by the increase in return on assets. The return on equity declined somewhat however that was due in large part to the increase in equity from last year brought about by net income © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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less dividends. This is complemented by the consistent earnings per share. This is consistent with the horizontal and vertical analysis performed previously. The cause of revenue growth without a cost of goods sold increase and increases in expenses should be further investigated to better understand the root cause of the problems. The company also showed contradictions in efficiency. Ratios illustrated that it took longer for them to collect accounts receivable resulting in an increase in the average days for payment but they turned merchandise inventory over faster, resulting in a decrease in the number of days of sales in merchandise inventory. Their ratios, compared to the industry average, also showed similar contradictions. The cause for these changes in efficiencies from prior periods and inconsistencies between them and the industry averages should be further investigated to better understand the root cause of the changes and resulting strengths and weaknesses. Short-term financial strength of the company strengthened as working capital increased and the current and acid-test ratios increased from the prior year. On the plus side the current ratio was consistent with the industry. Lastly, the long-term financial strength of the company also strengthened this year, as compared to the prior period, as the percentage of assets financed with debt decreased. This strength is further supported by the fact that the company’s debt and equity ratios are fairly close to the industry average and expectations. f. Casey Corporation Statement of Cash Flows For Year Ended 12/31/-Cash Flows from Operating Activities Notes Receivable Accounts Receivable Merchandise Inventory Notes Payable Sales Sales Discounts Cost of Merchandise Sold Interest Income
50,382.00 588,700.50 84,500.00 14,500.00 121,995.00 -7,154.01 -84,500.00 843.00 --------------
Total Cash Received Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Accounts Payable Notes Payable Sales Salaries Expense Advertising Expense Misc. Selling Expense Office Salaries Expense Utilities Expense Misc. General Expense Interest Expense Corporate Income Tax
769,266.49 -4,242.00 2,115.32 1,173.24 5,250.00 515,050.00 14,260.00 74,000.94 13,750.00 850.00 20,310.61 8,991.47 400.00 10,349.80 26,800.00 --------------
Total Cash Paid Net Cash Flow from Operating Activities
689,059.38 -------------80,207.11
Cash Flows from Investing Activities Store Equipment Total Cash Received Office Equipment
3,400.00 -------------3,400.00 3,100.00 --------------
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Total Cash Paid
3,100.00 -------------300.00
Net Cash Flow from Investing Activities Cash Flows from Financing Activities Mortgage Note Payable Dividends
4,290.20 20,000.00 --------------
Total Cash Paid Net Cash Flow from Financing Activities Net Increase in Cash Cash at Beginning of Year Cash at End of Year
24,290.20 --------------24,290.20 -------------56,216.91 67,534.52 -------------123,751.43 ==============
An analysis of Casey Corporation’s Statement of Cash Flows reveals an increase of cash during the period of $56,216.91. The primary source of cash was company operations. The primary use of cash was to pay down a mortgage note payable and pay dividends. Problem 9-B a. Kyle Corporation Income Stmt. Horizontal Analysis For Years Ended 12/31/-- and 12/31/-Current Period
Previous Period
Change
Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discounts Total Operating Revenue
878,603.50 836,490.00 42,113.50 5.03 -9,350.00 -6,000.00 -3,350.00 55.83 -7,202.86 -3,595.00 -3,607.86 100.36 ------------- ------------- ------------- ---------862,050.64 826,895.00 35,155.64 4.25
Cost Cost of Merchandise Sold Total Cost Gross Profit
595,175.00 593,255.00 1,920.00 0.32 ------------- ------------- ------------- ---------595,175.00 593,255.00 1,920.00 0.32 ------------- ------------- ------------- ---------266,875.64 233,640.00 33,235.64 14.23
Operating Expenses Sales Salaries Expense Advertising Expense Depr. Exp. Store Eqpt. Insurance Expense Selling Store Supplies Expense Misc. Selling Expense Selling Expenses Office Salaries Expense Utilities Expense Depr. Exp. Building
75,080.26 63,873.10 11,207.16 17.55 13,800.00 11,500.00 2,300.00 20.00 3,925.65 2,960.00 965.65 32.62 4,625.00 3,350.00 1,275.00 38.06 971.38 1,729.30 -757.92 -43.83 905.00 1,525.00 -620.00 -40.66 ------------- ------------- ------------- ---------99,307.29 84,937.40 14,369.89 16.92 19,457.18 9,013.42 19,025.00
20,377.00 8,776.72 17,000.00
-919.82 236.70 2,025.00
-4.51 2.70 11.91
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Chapter
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Page 11
Depr. Exp. Office Eqpt. Insurance Expense General Office Supplies Expense Misc. General Expense Administrative Expenses Total Operating Expenses Net Income from Operations
4/12/2024
2,027.05 1,135.00 892.05 78.59 2,540.67 1,800.00 740.67 41.15 1,510.93 613.40 897.53 146.32 450.00 415.00 35.00 8.43 ------------- ------------- ------------- ---------54,024.25 50,117.12 3,907.13 7.80 ------------- ------------- ------------- ---------153,331.54 135,054.52 18,277.02 13.53 ------------- ------------- ------------- ---------113,544.10 98,585.48 14,958.62 15.17
Other Revenue Interest Income Gain on Sale Office Eqpt. Gain on Sale Store Eqpt.
813.60
1,833.00 130.00
140.00
-1,019.40 -130.00 140.00
-55.61 -100.00 100.00
Other Expense Interest Expense
10,658.26 6,211.14 4,447.12 71.60 ------------- ------------- ------------- ---------Net Income before Income Tax 103,839.44 94,337.34 9,502.10 10.07 Income Tax Corporate Income Tax Net Income after Income Tax
27,850.00 24,872.00 2,978.00 11.97 ------------- ------------- ------------- ---------75,989.44 69,465.34 6,524.10 9.39 ============= ============= ============= ==========
Interpreting this horizontal analysis reveals some significant changes. Gross profit increased 33,235.64 (14.23%) but net income after income tax only increased 6,524.10 (9.39%). The question is, why? Part of the answer is that even though operating revenue increased 35,155.64 (4.25%) cost of merchandise sold actually increased only 1,920.00 (0.32%). This, of course is very good. However, selling expenses increased 14,369.89 (16.92%) and administrative expenses increased 3,907.13 (7.80%) reducing the observed gross profit increase. Additionally, interest expense increased substantially by 4,447.12 (71.60%) driving down income even further. Reasons for these observed changes would need to be investigated to better understand the root causes of this decline in profitability. b. Kyle Corporation Income Stmt. Vertical Analysis For Years Ended 12/31/-- and 12/31/-Current Amount
Current Percent
Previous Amount
Previous Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discounts Total Operating Revenue
878,603.50 101.92 836,490.00 101.16 -9,350.00 -1.08 -6,000.00 -0.73 -7,202.86 -0.84 -3,595.00 -0.43 ------------- ------------- ------------- ---------862,050.64 100.00 826,895.00 100.00
Cost Cost of Merchandise Sold Total Cost Gross Profit
595,175.00 69.04 593,255.00 71.74 ------------- ------------- ------------- ---------595,175.00 69.04 593,255.00 71.74 ------------- ------------- ------------- ---------266,875.64 30.96 233,640.00 28.26
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Operating Expenses Sales Salaries Expense Advertising Expense Depr. Exp. Store Eqpt. Insurance Expense Selling Store Supplies Expense Misc. Selling Expense Selling Expenses Office Salaries Expense Utilities Expense Depr. Exp. Building Depr. Exp. Office Eqpt. Insurance Expense General Office Supplies Expense Misc. General Expense Administrative Expenses Total Operating Expenses Net Income from Operations
75,080.26 8.71 63,873.10 7.72 13,800.00 1.60 11,500.00 1.39 3,925.65 0.46 2,960.00 0.36 4,625.00 0.54 3,350.00 0.41 971.38 0.11 1,729.30 0.21 905.00 0.11 1,525.00 0.18 ------------- ------------- ------------- ---------99,307.29 11.52 84,937.40 10.27 19,457.18 2.26 20,377.00 2.46 9,013.42 1.05 8,776.72 1.06 19,025.00 2.21 17,000.00 2.06 2,027.05 0.24 1,135.00 0.14 2,540.67 0.29 1,800.00 0.22 1,510.93 0.18 613.40 0.07 450.00 0.05 415.00 0.05 ------------- ------------- ------------- ---------54,024.25 6.27 50,117.12 6.06 ------------- ------------- ------------- ---------153,331.54 17.79 135,054.52 16.33 ------------- ------------- ------------- ---------113,544.10 13.17 98,585.48 11.92
Other Revenue Interest Income Gain on Sale Office Eqpt. Gain on Sale Store Eqpt.
813.60
0.09
140.00
0.02
1,833.00 130.00
0.22 0.02
Other Expense Interest Expense
10,658.26 1.24 6,211.14 0.75 ------------- ------------- ------------- ---------Net Income before Income Tax 103,839.44 12.05 94,337.34 11.41 Income Tax Corporate Income Tax Net Income after Income Tax
27,850.00 3.23 24,872.00 3.01 ------------- ------------- ------------- ---------75,989.44 8.82 69,465.34 8.40 ============= ============= ============= ==========
This year is slightly more profitable than the previous year as shown by the percentage of net income after income tax relative to total operating revenue which increased from 8.40% in the prior year to 8.82% in the current year. However, this relatively minor change is inconsistent with the increased gross profit percentage from 28.26% to 30.96% which should have resulted in higher net income. The culprit, offsetting the benefits of a higher gross profit percentage, are increases in the percent of operating revenues spent on selling expenses from 10.27% to 11.52% and administrative expenses from 6.06% to 6.27%.
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Chapter
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c. Kyle Corporation Balance Sheet Horizontal Analysis For Years Ended 12/31/-- and 12/31/-Current Period
Previous Period
Change
Percent
Assets Cash Notes Receivable Interest Receivable Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Total Current Assets Land Building Accum. Depr. Building Office Equipment Accum. Depr. Office Eqpt. Store Equipment Accum. Depr. Store Eqpt. Total Plant Assets Total Assets
125,438.34 67,534.52 57,903.82 85.74 17,091.00 15,091.00 2,000.00 13.25 308.60 335.00 -26.40 -7.88 165,730.00 59,650.00 106,080.00 177.84 7,074.48 77,933.00 -70,858.52 -90.92 2,845.00 1,520.00 1,325.00 87.17 1,498.00 1,835.50 -337.50 -18.39 1,527.33 3,063.00 -1,535.67 -50.14 ------------- ------------- ------------- ---------321,512.75 226,962.02 94,550.73 41.66 104,500.00 94,500.00 10,000.00 10.58 351,500.00 286,500.00 65,000.00 22.69 -57,504.00 -38,479.00 -19,025.00 49.44 14,145.00 11,145.00 3,000.00 26.92 -5,614.05 -3,587.00 -2,027.05 56.51 27,500.00 31,200.00 -3,700.00 -11.86 -12,489.65 -8,904.00 -3,585.65 40.27 ------------- ------------- ------------- ---------422,037.30 372,375.00 49,662.30 13.34 ------------- ------------- ------------- ---------743,550.05 599,337.02 144,213.03 24.06 ============= ============= ============= ==========
Liabilities Interest Payable Accounts Payable Salaries Payable Notes Payable Current Liabilities Mortgage Note Payable Long-Term Liabilities Total Liabilities
1,760.00 1,325.00 435.00 32.83 110,336.00 97,111.00 13,225.00 13.62 1,879.33 1,454.00 425.33 29.25 5,278.89 4,950.00 328.89 6.64 ------------- ------------- ------------- ---------119,254.22 104,840.00 14,414.22 13.75 157,200.61 161,391.24 -4,190.63 -2.60 ------------- ------------- ------------- ---------157,200.61 161,391.24 -4,190.63 -2.60 ------------- ------------- ------------- ---------276,454.83 266,231.24 10,223.59 3.84
Stockholders' Equity Capital Stock Retained Earnings Dividends Net Income Total Stockholders' Equity Total Liabilities & Equity
230,000.00 150,000.00 80,000.00 53.33 183,105.78 133,640.44 49,465.34 37.01 -22,000.00 -20,000.00 -2,000.00 10.00 75,989.44 69,465.34 6,524.10 9.39 ------------- ------------- ------------- ---------467,095.22 333,105.78 133,989.44 40.22 ------------- ------------- ------------- ---------743,550.05 599,337.02 144,213.03 24.06 ============= ============= ============= ==========
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Chapter
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Interpreting this horizontal analysis reveals some significant changes. Total assets increased 144,213.03 (24.06%) over the prior period’s ending balance. Once again the question is, why? Further analysis can help by looking at each asset, liability, and equity element focusing on those items causing the largest change. The largest dollar amount of change in assets was the increase in accounts receivable of 106,080.00 (177.84%) over the previous year. The next highest dollar changes were the 70,858.52 (90.92%) decrease in merchandise inventory, the 65,000.00 (22.69%) increase in building, and the 57,903.82 (85.74%) increase in cash over the previous year’s ending balances. An additional notable change is the increase in land of 10,000.00 (10.58%). Explanations of why these changes occurred will help the company better understand its business. Total liabilities increased only 10,223.59 (3.84%) over the previous year’s ending balance. The largest dollar amount of change in liabilities was the increase in the accounts payable of 13,225.00 (13.62%) and the decrease in the mortgage note payable of 4,190.63 (2.60%). Total stockholders’ equity increased 133,989.44 (40.22%) over the previous year’s ending balance. The bulk of this increase related to the sale of capital stock of 80,000.00 resulting in an increase of 53.33% over the prior year’s balance. The only other change was net income of 75,989.44 less dividends of 22,000.00. Explanations of why these changes occurred will help the company better understand its business. d. Kyle Corporation Balance Sheet Vertical Analysis For Years Ended 12/31/-- and 12/31/-Current Amount
Current Percent
Previous Amount
Previous Percent
Assets Cash Notes Receivable Interest Receivable Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Total Current Assets Land Building Accum. Depr. Building Office Equipment Accum. Depr. Office Eqpt. Store Equipment Accum. Depr. Store Eqpt. Total Plant Assets Total Assets
125,438.34 16.87 67,534.52 11.27 17,091.00 2.30 15,091.00 2.52 308.60 0.04 335.00 0.06 165,730.00 22.29 59,650.00 9.95 7,074.48 0.95 77,933.00 13.00 2,845.00 0.38 1,520.00 0.25 1,498.00 0.20 1,835.50 0.31 1,527.33 0.21 3,063.00 0.51 ------------- ------------- ------------- ---------321,512.75 43.24 226,962.02 37.87 104,500.00 14.05 94,500.00 15.77 351,500.00 47.27 286,500.00 47.80 -57,504.00 -7.73 -38,479.00 -6.42 14,145.00 1.90 11,145.00 1.86 -5,614.05 -0.76 -3,587.00 -0.60 27,500.00 3.70 31,200.00 5.21 -12,489.65 -1.68 -8,904.00 -1.49 ------------- ------------- ------------- ---------422,037.30 56.76 372,375.00 62.13 ------------- ------------- ------------- ---------743,550.05 100.00 599,337.02 100.00 ============= ============= ============= ==========
Liabilities Interest Payable Accounts Payable Salaries Payable Notes Payable
1,760.00 0.24 1,325.00 0.22 110,336.00 14.84 97,111.00 16.20 1,879.33 0.25 1,454.00 0.24 5,278.89 0.71 4,950.00 0.83 ------------- ------------- ------------- ----------
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Chapter
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Current Liabilities Mortgage Note Payable Long-Term Liabilities Total Liabilities
Page 15
119,254.22
4/12/2024
16.04
104,840.00
17.49
157,200.61 21.14 161,391.24 26.93 ------------- ------------- ------------- ---------157,200.61 21.14 161,391.24 26.93 ------------- ------------- ------------- ---------276,454.83 37.18 266,231.24 44.42
Stockholders' Equity Capital Stock Retained Earnings Dividends Net Income Total Stockholders' Equity Total Liabilities & Equity
230,000.00 30.93 150,000.00 25.03 183,105.78 24.63 133,640.44 22.30 -22,000.00 -2.96 -20,000.00 -3.34 75,989.44 10.22 69,465.34 11.59 ------------- ------------- ------------- ---------467,095.22 62.82 333,105.78 55.58 ------------- ------------- ------------- ---------743,550.05 100.00 599,337.02 100.00 ============= ============= ============= ==========
The vertical analysis above confirms the increase mentioned in the balance sheet horizontal analysis as accounts receivable and cash, expressed as a percentage of total assets, have gone from 9.95% to 22.29% and 11.27% to 16.87% respectively. This was offset by merchandise inventory, expressed as a percentage of total assets, which decreased from 13.00% to 0.95%. Total liabilities, expressed as a percentage of total assets, have decreased from 44.42% to 37.18%. As expected this resulted in stockholders’ equity, expressed as a percentage of total assets, to increase from 55.58% to 62.82% most likely the result of the capital stock sale mentioned previously. e. Kyle Corporation Ratio Analysis For Year Ended 12/31/--
Earnings Performance Analysis Rate Earned on Average Total Assets Rate Earned on Average Stockholders' Equity Rate Earned on Net Sales Earnings Per Share Price-Earnings Ratio
11.32% 18.99% 8.81% 1.52 3.95 times
Efficiency Analysis Accounts Receivable Turnover Ratio Average Days for Payment Merchandise Inventory Turnover Ratio Average Number of Days Sales in Merch. Inv.
7.65 times 48 days 14.00 times 26 days
Short-Term Financial Strength Working Capital Current Ratio Acid-Test Ratio
202,258.53 2.70 times 2.44 times
Long-Term Financial Strength Analysis Debt Ratio Equity Ratio Equity Per Share
37.18% 62.82% 9.34
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Chapter
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Ratio Earnings Performance Analysis Rate earned on average total assets Rate earned on average stockholders’ equity Rate earned on total operating revenue Earnings per share Price-earnings ratio Efficiency Analysis Accounts receivable turnover ratio Average days for payment Merchandise inventory turnover ratio Average number of days sales in merchandise inventory Short-Term Financial Strength Working capital Current ratio Acid-test ratio Long-Term Financial Strength Debt ratio Equity ratio Equity per share
Page 16
4/12/2024
Enter Ratios Here
Prior Period
Industry Average
Expected
11.32%
11.5%
9.0%
9.5%
18.99%
20.0%
18.0%
18.0%
8.81%
8.40%
6.50%
8.00%
1.52 3.95 times
1.74 6.0 times
0.75 5.0 times
0.99 5.6 times
7.65
8.0 times
7.0 times
8.1 times
46 days
52 days
45 days
12.0 times
9.7 times
11.8 times
26 days
30 days
37 days
31 days
202,258.53 2.70 times 2.44 times
122,122.02 2.16 times 1.21 times
120,000.00 2.20 times 1.35 times
110,000.00 2.20 times 1.6 times
37.18% 62.82% 9.34
44.42% 55.58% 8.33
39.00% 61.00% 8.00
45.00% 55.00% 7.00
times
48 days
14.0
times
Kyle Corporation shows some weakness in earnings performance as shown by the slight decrease in return on assets. The return on equity declined as well due in large part to the increase in equity from last year brought about by net income less dividends and the sale of capital stock. This is complemented by the decline in earnings per share. This is consistent with the horizontal and vertical analysis performed previously. The cause of revenue growth without a cost of goods sold increase and increases in expenses should be further investigated to better understand the root cause of the problems. © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter
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The company also showed contradictions in efficiency. Ratios illustrated that it took about the same amount of time for them to collect accounts receivable reflected in the near constant average days for payment. They turned merchandise inventory over faster resulting in a decrease in the number of days of sales in merchandise inventory. Their ratios, compared to the industry average, also showed some strengths as the average days for payment was less and the inventory turnover was greater. The cause for these changes in efficiencies from prior periods and inconsistencies between them and the industry averages should be further investigated to better understand the root cause of the changes and resulting strengths and weaknesses. Short-term financial strength of the company strengthened as working capital increased and the current and acid-test ratios increased from the prior year. Also on the plus side, these two ratios were better than the industry. Lastly, the long-term financial strength of the company also strengthened this year, as compared to the prior period, as the percentage of assets financed with debt decreased. This was mostly due to the sale of capital stock during the year. This strength is further supported by the fact that the company’s debt and equity ratios are fairly close to the industry average. f. Kyle Corporation Statement of Cash Flows For Year Ended 12/31/13 Cash Flows from Operating Activities Notes Receivable Accounts Receivable Merchandise Inventory Notes Payable Sales Sales Discounts Cost of Merchandise Sold Interest Income
50,000.00 591,223.50 82,900.00 15,000.00 119,950.00 -7,202.86 -82,900.00 840.00 --------------
Total Cash Received Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Accounts Payable Notes Payable Sales Salaries Expense Advertising Expense Misc. Selling Expense Office Salaries Expense Utilities Expense Misc. General Expense Interest Expense Corporate Income Tax
769,810.64 -4,274.52 2,296.38 1,173.43 5,630.00 515,366.00 14,671.11 74,718.34 13,800.00 905.00 19,393.77 9,013.42 450.00 10,223.26 27,850.00 --------------
Total Cash Paid
691,216.19 -------------78,594.45
Net Cash Flow from Operating Activities Cash Flows from Investing Activities Store Equipment Total Cash Received Land Building
3,500.00 -------------3,500.00 10,000.00 65,000.00
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Office Equipment
4/12/2024
3,000.00 --------------
Total Cash Paid
78,000.00 --------------74,500.00
Net Cash Flow from Investing Activities Cash Flows from Financing Activities Capital Stock Total Cash Received Mortgage Note Payable Dividends
80,000.00 -------------80,000.00 4,190.63 22,000.00 --------------
Total Cash Paid Net Cash Flow from Financing Activities Net Increase in Cash Cash at Beginning of Year Cash at End of Year
26,190.63 -------------53,809.37 -------------57,903.82 67,534.52 -------------125,438.34 ==============
An analysis of Kyle Corporation’s Statement of Cash Flows reveals an increase of cash during the period of $57,903.82. The primary source of cash was company operations of 78,594.45 and the sale of capital stock for 80,000.00. The primary use of cash was to purchase land for 10,000.00 and a building for 65,000.00 and pay dividends of 22,000.00. Problem 9-C a. Nathan Corporation Income Statement Horizontal Analysis For Years Ended 12/31/-- and 12/31/-Current Period
Previous Period
Change
Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discounts Total Operating Revenue Cost of Merchandise Sold
750,000.00 -7,200.00 -3,000.00 739,800.00 550,000.00
840,000.00 -18,300.00 -4,000.00 817,700.00 525,000.00
-10.71 -60.66 -25.00 -9.53 4.76
Gross Profit
189,800.00
292,700.00
-90,000.00 11,100.00 1,000.00 -77,900.00 25,000.00 102,900.00
Operating Expenses Sales Salaries Expense Advertising Expense Utilities Expense Depreciation Expense Other Expense Total Operating Expenses Net Income from Operations Interest Expense Net Income before Tax Tax Expense
74,000.00 38,000.00 8,000.00 4,500.00 5,300.00 129,800.00 60,000.00 3,500.00 56,500.00 15,000.00
78,000.00 39,000.00 7,400.00 4,000.00 4,700.00 133,100.00 159,600.00 5,000.00 154,600.00 50,000.00
-4,000.00 -1,000.00 600.00 500.00 600.00 -3,300.00 -99,600.00 -1,500.00 -98,100.00 -35,000.00
-5.13 -2.56 8.11 12.50 12.77 -2.48 -62.41 -30.00 -63.45 -70.00
-35.16
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Chapter
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Net Income after Tax
Page 19
41,500.00
4/12/2024
104,600.00
-63,100.00
-60.33
Current Percent
Previous Amount
Previous Percent
b. Nathan Corporation Income Statement Vertical Analysis For the Years Ended 12/31/-- and 12/31/-Current Amount Operating Revenue Sales Sales Returns & Allow. Sales Discounts Total Operating Revenue Cost of Merchandise Sold Gross Profit
750,000.00 -7,200.00 -3,000.00 739,800.00 550,000.00 189,800.00
101.38 -0.97 -0.41 100.00 74.34 25.66
840,000.00 -18,300.00 -4,000.00 817,700.00 525,000.00 292,700.00
102.73 -2.24 -0.49 100.00 64.20 35.80
Operating Expenses Sales Salaries Expense Advertising Expense Utilities Expense Depreciation Expense Other Expense Total Operating Expenses Net Income from Operations Interest Expense Net Income before Tax Tax Expense Net Income after Tax
74,000.00 38,000.00 8,000.00 4,500.00 5,300.00 129,800.00 60,000.00 3,500.00 56,500.00 15,000.00 41,500.00
10.00 5.14 1.08 0.61 0.72 17.55 8.11 0.47 7.64 2.03 5.61
78,000.00 39,000.00 7,400.00 4,000.00 4,700.00 133,100.00 159,600.00 5,000.00 154,600.00 50,000.00 104,600.00
9.54 4.77 0.90 0.49 0.57 16.28 19.52 0.61 18.91 6.11 12.79
c. Nathan Corporation Balance Sheet Horizontal Analysis For the Years Ended 12/31/-- and 12/31/-Current Period
Previous Period
Change
Percent
Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance
35,000.00 60,000.00 50,000.00 12,000.00
39,000.00 65,000.00 48,000.00 15,000.00
-10.26 -7.69 4.17 -20.00
Total Current Assets Equipment Accumulated Depreciation Total Plant Assets Total Assets
157,000.00 150,000.00 -27,000.00 123,000.00 280,000.00
167,000.00 140,000.00 -22,500.00 117,500.00 284,500.00
-4,000.00 -5,000.00 2,000.00 -3,000.00 10,000.00 10,000.00 -4,500.00 5,500.00 -4,500.00
Liabilities Accounts Payable Salaries Payable Notes Payable
18,000.00 3,000.00 16,000.00
15,000.00 4,000.00 26,000.00
3,000.00 -1,000.00 -
20.00 -25.00 -38.46
-5.99 7.14 20.00 4.68 -1.58
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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9 - Manual
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10,000.00 Total Current Liabilities
37,000.00
45,000.00
Long-Term Debt
100,000.00
130,000.00
Total Liabilities
137,000.00
175,000.00
Stockholders' Equity Capital Stock Retained Earnings Dividends
1,000.00 108,500.00 -8,000.00
1,000.00 17,900.00 -14,000.00
Net Income Total Stockholders' Equity Total Liabilities & Equity
41,500.00 143,000.00 280,000.00
104,600.00 109,500.00 284,500.00
-8,000.00 30,000.00 38,000.00
-17.78
0.00 90,600.00 6,000.00 63,100.00 33,500.00 -4,500.00
0.00 506.15 -42.86
-23.08 -21.71
-60.33 30.59 -1.58
d. Nathan Corporation Balance Sheet Vertical Analysis For the Years Ended 12/31/-- and 12/31/-Current Amount
Current Percent
Previous Amount
Previous Percent
Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Equipment Accumulated Depreciation Total Plant Assets Total Assets
35,000.00 60,000.00 50,000.00 12,000.00 157,000.00 150,000.00 -27,000.00 123,000.00 280,000.00
12.50 21.43 17.86 4.29 56.07 53.57 -9.64 43.93 100.00
39,000.00 65,000.00 48,000.00 15,000.00 167,000.00 140,000.00 -22,500.00 117,500.00 284,500.00
13.71 22.85 16.87 5.27 58.70 49.21 -7.91 41.30 100.00
Liabilities Accounts Payable Salaries Payable Notes Payable Total Current Liabilities Long-Term Debt Total Liabilities
18,000.00 3,000.00 16,000.00 37,000.00 100,000.00 137,000.00
6.43 1.07 5.71 13.21 35.71 48.93
15,000.00 4,000.00 26,000.00 45,000.00 130,000.00 175,000.00
5.27 1.41 9.14 15.82 45.69 61.51
Stockholders' Equity Capital Stock Retained Earnings Dividends Net Income Total Stockholders' Equity Total Liabilities & Equity
1,000.00 108,500.00 -8,000.00 41,500.00 143,000.00 280,000.00
0.36 38.75 -2.86 14.82 51.07 100.00
1,000.00 17,900.00 -14,000.00 104,600.00 109,500.00 284,500.00
0.35 6.29 -4.92 36.77 38.49 100.00
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9 - Manual
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e. Nathan Corporation Ratio Analysis For Year Ended 12/31/Earnings Performance Analysis Rate Earned on Average Total Assets Rate Earned on Average Stockholders' Equity Rate Earned on Net Sales Earnings Per Share Price-Earnings Ratio
14.70% 32.87% 5.61% 1.38 21.69
times
11.84 30.84 11.22 32.52
times days times days
120,000.00 4.24 2.57
times times
Efficiency Analysis Accounts Receivable Turnover Ratio Average Days for Payment Merchandise Inventory Turnover Ratio Average Number of Days Sales in Merch. Inv. Short-Term Financial Strength Working Capital Current Ratio Acid-Test Ratio Long-Term Financial Strength Analysis Debt Ratio Equity Ratio Equity Per Share
48.93% 51.07% 4.77
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Chapter 10 - Manual
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Chapter 10
DEPARTMENTALIZED ACCOUNTING STUDENT EXERCISE I. True/False 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
T F T F F F T T T T
II. Questions 1. The computer uses the cost and quantity of purchase transactions to calculate the weighted average cost and compute the value of the inventory. In the case where no purchases transactions are available, the computer uses the average cost previously calculated and stored in the inventory stock item's record to value the inventory. 2. With the LIFO report, the assumption is made that the last items received into inventory are the first to be sold. Therefore, any items remaining in the inventory are the first items received. 3. With the FIFO report, the assumption is made that the first items received into the inventory are the first sold. Therefore, any items remaining in inventory are the last items received.
PROBLEM 10-A Keller Windows & Doors Vendor List 03/31/-Vendor Name Clark Company Enders Supply Co. Gunderson, Inc. Lancaster, Inc. Neubert Corporation Paulson, Inc. Quade Corporation Tollefson Corporation
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Chapter 10 - Manual
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Keller Windows & Doors Customer List 03/31/-Customer Name Bickell Construction Co. Bridget Whitney Eric Reinhart Helen Murray Penkhus Remodeling, Inc. Phillip Gilbert Quality Contractors Rebecca Beyer Schaefer Builders Keller Windows & Doors Purchase Order Register 03/31/-P.O. Number
P.O. Date
Vendor Name
1148 1149
03/02/-03/26/--
Quade Corporation Paulson, Inc.
P.O. Amount 10,640.00 12,160.00 ------------22,800.00 =============
Total Amount Keller Windows & Doors Purchase Invoice Register 03/31/-Invoice Number
Invoice Date
Vendor Name
2330 2331 R2307 R2329
03/14/-03/22/-03/31/-03/06/--
Quade Corporation Lancaster, Inc. Neubert Corporation Gunderson, Inc.
Invoice Amount 8,750.00 5,975.00 -195.00 -895.00 ------------13,635.00 =============
Total Amount Keller Windows & Doors Sales Invoice Register 03/31/-Invoice Number
Invoice Date
Customer Name
4637
03/02/--
Bickell Construction Co.
Invoice Amount
Sales Tax
18,758.00
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Chapter 10 - Manual
4638 4639 4640 4641 R4637 R4638
03/05/-03/15/-03/18/-03/29/-03/04/-03/09/--
Page 3
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Quality Contractors Phillip Gilbert Penkhus Remodeling, Inc. Eric Reinhart Bickell Construction Co. Quality Contractors Total Amount
15,998.00 4,820.00 289.20 19,124.00 6,510.00 390.60 -769.00 -425.00 ----------- ----------64,016.00 679.80 =========== ===========
Keller Windows & Doors Inventory Transactions 03/31/-Date
Description
Inv./ P.O.
Sales Invoices 03/02 Casement Slider--Double4637 Wood Entry Door--Single 03/05 Wood Entry Door--Double4638 Garage Fire Door Casement Crank--Double Therm. Patio Door--Doub 03/15 Wood Patio Door--Double4639 Casement Crank--Single 03/18 Casement Crank--Double 4640 Casement Picture--Bay Wood Entry Door--Single Vinyl Patio Door--Singl 03/29 Wood Patio Door--Single4641 Garage Fire Door Casement Slider--Single 03/04 Casement Slider--DoubleR4637 03/09 Garage Fire Door R4638
Quantity Sold
Selling Price
17 3 1 3 12 1 1 6 16 2 1 3 1 1 12 -1 -1
769.00 1,895.00 3,500.00 425.00 769.00 1,995.00 2,450.00 395.00 769.00 1,495.00 1,895.00 645.00 1,345.00 425.00 395.00 769.00 425.00
Purchase Orders 03/02 Casement Crank--Double 1148 03/26 Casement Slider--Double1149
Quan. Recd.
Cost Price
28 32
Purchase Invoices 03/14 Picture Window--Double 2330 03/22 Wood Patio Door--Double2331 03/31 Casement Slider--SingleR2307 03/06 Wood Entry Door--SingleR2329 Totals
Quan. Ord.
--------78 =========
14 625.00 5 1,195.00 -1 195.00 -1 895.00 ------- ------60 17 ======= =======
Keller Windows & Doors Inventory Valuation (Average Cost) 03/31/-© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
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Stock No.
Description
110 120 130 140 150 160 170 180 210 220 230 240 250 260 270 280 290
Awning Window--Double Casement Crank--Double Casement Crank--Single Casement Slider--Double Casement Slider--Single Casement Picture--Bay Picture Window--Double Picture Window--Glider Garage Fire Door Therm. Patio Door--Doub Therm. Patio Door--Sing Vinyl Patio Door--Doubl Vinyl Patio Door--Singl Wood Patio Door--Double Wood Patio Door--Single Wood Entry Door--Double Wood Entry Door--Single
4/12/2024
On Hand
Cost
53 18 74 37 53 95 88 80 87 12 18 26 33 9 20 12 12
415.00 380.00 195.00 380.00 195.00 715.00 625.00 535.00 200.00 985.00 550.00 565.00 320.00 1,195.00 670.00 1,695.00 895.00
Total Inventory Value
Value At Cost
Retail Price
Value At Retail
21,995.00 6,840.00 14,430.00 14,060.00 10,335.00 67,925.00 55,000.00 42,800.00 17,400.00 11,820.00 9,900.00 14,690.00 10,560.00 10,755.00 13,400.00 20,340.00 10,740.00 ---------352,990.00 ==========
850.00 769.00 395.00 769.00 395.00 1,495.00 1,295.00 1,085.00 425.00 1,995.00 1,125.00 1,175.00 645.00 2,450.00 1,345.00 3,500.00 1,895.00
45,050.00 13,842.00 29,230.00 28,453.00 20,935.00 142,025.00 113,960.00 86,800.00 36,975.00 23,940.00 20,250.00 30,550.00 21,285.00 22,050.00 26,900.00 42,000.00 22,740.00 ----------726,985.00 ===========
Keller Windows & Doors General Journal 03/31/-Date
Refer.
Acct.
Title
Debit
03/01 Rev.Ent. 03/01 Rev.Ent. 03/01 Rev.Ent.
2130 6130 6580
Salaries Payable Sales Salary Expense Admin. Salary Expense
03/04 R4637 03/04 R4637
4120 1130
Sales Ret. & All.-Windows AR/Bickell Construction Co
769.00
03/06 R2329 03/06 R2329
2110 5220
AP/Gunderson, Inc. Prch. Ret. & All.--Doors
895.00
03/09 R4638 03/09 R4638
4220 1130
Sales Ret. & All.--Doors AR/Quality Contractors
425.00
03/31 R2307 03/31 R2307
2110 5120
AP/Neubert Corporation Prch. Ret. & All.-Windows
195.00
Totals
Credit
4,350.00 3,835.00 515.00 769.00 895.00 425.00 195.00 -------------- -------------6,634.00 6,634.00 ============== ==============
Keller Windows & Doors Purchases Journal 03/31/-Date
Inv. No.
03/14 2330
Acct.
Title
5110
Purchases--Windows
Debit 8,750.00
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Credit
Chapter 10 - Manual
Page 5
03/14 2330
2110
AP/Quade Corporation
03/22 2331 03/22 2331
5210 2110
Purchases--Doors AP/Lancaster, Inc. Totals
4/12/2024
8,750.00 5,975.00 5,975.00 -------------- -------------14,725.00 14,725.00 ============== ==============
Keller Windows & Doors Cash Payments Journal 03/31/-Date
Ck. No.
Acct.
Title
Debit
03/02 7215 03/02 7215
6560 1110
Heating and Lighting Exp. Cash
03/05 7216 03/05 7216
6590 1110
Telephone Expense Cash
03/16 7217 03/16 7217 03/16 7217
2110 5130 1110
AP/Quade Corporation Purchases Disc.--Windows Cash
8,750.00
03/17 7218 03/17 7218 03/17 7218
2110 5230 1110
AP/Tollefson Corporation Purchases Disc.--Doors Cash
5,000.00
03/21 7219 03/21 7219
6110 1110
Advertising Expense Cash
350.00
03/24 7220 03/24 7220
2110 1110
AP/Neubert Corporation Cash
289.40
03/30 7221 03/30 7221 03/30 7221
6130 6580 1110
Sales Salary Expense Admin. Salary Expense Cash
10,320.00 4,026.00
03/30 7222 03/30 7222
6570 1110
Rent Expense Cash
2,825.00
03/31 7223 03/31 7223
2120 1110
Sales Tax Payable Cash Totals
Credit
1,107.45 1,107.45 798.62 798.62 175.50 8,574.50 100.00 4,900.00 350.00 289.40
14,346.00 2,825.00 586.80 586.80 -------------- -------------34,053.27 34,053.27 ============== ==============
Keller Windows & Doors Sales Journal 03/31/-Date
Inv. No.
03/02 4637 03/02 4637
Acct.
Title
1130 4110
AR/Bickell Construction Co Sales--Windows
Debit
Credit
18,758.00
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13,073.00
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03/02 4637
4210
Sales--Doors
03/05 4638 03/05 4638 03/05 4638
1130 4210 4110
AR/Quality Contractors Sales--Doors Sales--Windows
15,998.00
03/15 4639 03/15 4639 03/15 4639 03/15 4639
1130 4210 4110 2120
AR/Phillip Gilbert Sales--Doors Sales--Windows Sales Tax Payable
5,109.20
03/18 4640 03/18 4640 03/18 4640
1130 4110 4210
AR/Penkhus Remodeling, Inc Sales--Windows Sales--Doors
19,124.00
03/29 4641 03/29 4641 03/29 4641 03/29 4641
1130 4210 4110 2120
AR/Eric Reinhart Sales--Doors Sales--Windows Sales Tax Payable
6,900.60
Totals
5,685.00 6,770.00 9,228.00 2,450.00 2,370.00 289.20 15,294.00 3,830.00 1,770.00 4,740.00 390.60 -------------- -------------65,889.80 65,889.80 ============== ==============
Keller Windows & Doors Cash Receipts Journal 03/31/-Date
Refer.
Acct.
Title
03/03 4636 03/03 4636 03/03 4636 03/03 4636
1110 4130 4230 1130
Cash Sales Discounts--Windows Sales Discounts--Doors AR/Schaefer Builders
12,186.30 142.20 106.50
03/10 4637 03/10 4637 03/10 4637 03/10 4637
1110 4130 4230 1130
Cash Sales Discounts--Windows Sales Discounts--Doors AR/Bickell Construction Co
17,629.22 241.05 118.73
03/14 4638 03/14 4638 03/14 4638 03/14 4638
1110 4130 4230 1130
Cash Sales Discounts--Windows Sales Discounts--Doors AR/Quality Contractors
15,261.54 184.56 126.90
03/18 4639 03/18 4639
1110 1130
Cash AR/Phillip Gilbert
5,109.20
03/28 4640 03/28 4640 03/28 4640 03/28 4640
1110 4130 4230 1130
Cash Sales Discounts--Windows Sales Discounts--Doors AR/Penkhus Remodeling, Inc
18,741.52 305.88 76.60
Totals
Debit
Credit
12,435.00
17,989.00
15,573.00 5,109.20
19,124.00 -------------- -------------70,230.20 70,230.20 ============== ==============
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Keller Windows & Doors Trial Balance 03/31/-Acct. Number Credit
Account Title
1110 1130 1140 1,050.00 1150 1151 1160 1170 1180 1510 1520 10,430.10 1530 1540 9,065.25 2110 29,716.69 2120 679.80 2140 7,500.00 3110 305,000.00 3120 155,170.53 3140 3141 10,715.00 4110 167,126.00 4120 4130 4210 83,835.00 4220 4230 5110 5120 960.00 5130 612.29 5210 5220 1,330.00 5230 572.50 6110 6120
Cash Accounts Receivable Allow. for Doubt. Accts.
152,270.31 6,991.60
Merch. Inventory--Windows Merch. Inventory--Doors Office Supplies Store Supplies Prepaid Insurance Office Equipment Accum. Depr.--Office Eq.
246,495.00 124,210.00 1,995.00 2,500.00 510.00 20,260.00
Store Equipment Accum. Depr.--Store Eq.
23,920.00
Debit
Accounts Payable Sales Tax Payable Corporate Income Tax Pay. Capital Stock Retained Earnings Income Summary--Windows Income Summary--Doors
10,065.00
Sales--Windows Sales Ret. & All.-Windows Sales Discounts--Windows Sales--Doors
2,569.00 3,064.43
Sales Ret. & All.--Doors Sales Discounts--Doors Purchases--Windows Prch. Ret. & All.-Windows
1,425.00 1,682.06 64,435.00
Purchases Disc.--Windows Purchases--Doors Prch. Ret. & All.--Doors
49,190.00
Purchases Disc.--Doors Advertising Expense Deprec. Exp.--Store Eq.
1,450.00 840.25
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Chapter 10 - Manual
6130 6140 6510 6520 6540 6560 6570 6580 6590 6600 9110
Page 8
Sales Salary Expense Store Supplies Expense Uncollectible Accts. Exp. Deprec. Exp.--Office Eq. Insurance Expense Heating and Lighting Exp. Rent Expense Admin. Salary Expense Telephone Expense Office Supplies Expense Corporate Income Tax Exp.
4/12/2024
32,862.00 1,180.00 450.00 640.10 745.00 2,882.60 8,450.00 11,303.72 2,652.09 1,225.00 7,500.00 ----------------- ----------------
Totals
783,763.16
783,763.16 ================= ================= Keller Windows & Doors General Journal 03/31/13 Date
Refer.
Acct.
Title
Debit
03/31 Adj.Ent. 03/31 Adj.Ent.
3140 1150
Income Summary--Windows Merch. Inventory--Windows
12,545.00
03/31 Adj.Ent. 03/31 Adj.Ent.
3141 1151
Income Summary--Doors Merch. Inventory--Doors
4,725.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6540 1180
Insurance Expense Prepaid Insurance
225.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6600 1160
Office Supplies Expense Office Supplies
360.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6140 1170
Store Supplies Expense Store Supplies
600.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6520 1520
Deprec. Exp.--Office Eq. Accum. Depr.--Office Eq.
315.10
03/31 Adj.Ent. 03/31 Adj.Ent.
6120 1540
Deprec. Exp.--Store Eq. Accum. Depr.--Store Eq.
415.25
03/31 Adj.Ent. 03/31 Adj.Ent.
6510 1140
Uncollectible Accts. Exp. Allow. for Doubt. Accts.
150.00
03/31 Adj.Ent. 03/31 Adj.Ent. 03/31 Adj.Ent.
6130 6580 2130
Sales Salary Expense Admin. Salary Expense Salaries Payable
3,992.00 579.00
03/31 Adj.Ent. 03/31 Adj.Ent.
9110 2140
Corporate Income Tax Exp. Corporate Income Tax Pay.
3,500.00
Credit 12,545.00 4,725.00 225.00 360.00 600.00 315.10 415.25 150.00
4,571.00 3,500.00 -------------- --------------
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Chapter 10 - Manual
Page 9
Totals
4/12/2024
27,406.35 27,406.35 ============== ==============
Keller Windows & Doors Gross Profit Statement Department 1 For Period Ended 03/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales--Windows Sales Ret. & All.-Windows Sales Discounts--Windows Total Operating Revenue
44,705.00 103.81 167,126.00 103.49 -769.00 -1.79 -2,569.00 -1.59 -873.69 -2.03 -3,064.43 -1.90 ------------- ------------- ------------- ---------43,062.31 100.00 161,492.57 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Windows Prch. Ret. & All.-Windows Purchases Disc.--Windows
246,495.00 572.41 256,560.00 158.87 8,750.00 20.32 64,435.00 39.90 -195.00 -0.45 -960.00 -0.59 -175.50 -0.41 -612.29 -0.38 ------------- ------------- ------------- ---------Merchandise Available for Sa 254,874.50 591.87 319,422.71 197.79 Less Ending Inventory -233,950.00 -543.28 -233,950.00 -144.87 ------------- ------------- ------------- ---------Cost of Merchandise Sold 20,924.50 48.59 85,472.71 52.93 ------------- ------------- ------------- ---------Gross Profit 22,137.81 51.41 76,019.86 47.07 ============= ============= ============= ========== Keller Windows & Doors Gross Profit Statement Department 2 For Period Ended 03/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales--Doors Sales Ret. & All.--Doors Sales Discounts--Doors Total Operating Revenue
20,505.00 104.34 83,835.00 103.85 -425.00 -2.16 -1,425.00 -1.77 -428.73 -2.18 -1,682.06 -2.08 ------------- ------------- ------------- ---------19,651.27 100.00 80,727.94 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Doors Prch. Ret. & All.--Doors Purchases Disc.--Doors
124,210.00 632.07 113,495.00 140.59 5,975.00 30.41 49,190.00 60.93 -895.00 -4.55 -1,330.00 -1.65 -100.00 -0.51 -572.50 -0.71 ------------- ------------- ------------- ---------Merchandise Available for Sa 129,190.00 657.41 160,782.50 199.17 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
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Less Ending Inventory
4/12/2024
-119,485.00 -608.03 -119,485.00 -148.01 ------------- ------------- ------------- ---------9,705.00 49.39 41,297.50 51.16 ------------- ------------- ------------- ---------9,946.27 50.61 39,430.44 48.84 ============= ============= ============= ==========
Cost of Merchandise Sold Gross Profit
Keller Windows & Doors Consolidated Gross Profit Statement For Period Ended 03/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales--Windows Sales Ret. & All.-Windows Sales Discounts--Windows Sales--Doors Sales Ret. & All.--Doors Sales Discounts--Doors Total Operating Revenue
44,705.00 71.28 167,126.00 69.00 -769.00 -1.23 -2,569.00 -1.06 -873.69 -1.39 -3,064.43 -1.27 20,505.00 32.70 83,835.00 34.61 -425.00 -0.68 -1,425.00 -0.59 -428.73 -0.68 -1,682.06 -0.69 ------------- ------------- ------------- ---------62,713.58 100.00 242,220.51 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Windows Prch. Ret. & All.-Windows Purchases Disc.--Windows Purchases--Doors Prch. Ret. & All.--Doors Purchases Disc.--Doors
370,705.00 591.11 370,055.00 152.78 8,750.00 13.95 64,435.00 26.60 -195.00 -0.31 -960.00 -0.40 -175.50 -0.28 -612.29 -0.25 5,975.00 9.53 49,190.00 20.31 -895.00 -1.43 -1,330.00 -0.55 -100.00 -0.16 -572.50 -0.24 ------------- ------------- ------------- ---------Merchandise Available for Sa 384,064.50 612.41 480,205.21 198.25 Less Ending Inventory -353,435.00 -563.57 -353,435.00 -145.91 ------------- ------------- ------------- ---------Cost of Merchandise Sold 30,629.50 48.84 126,770.21 52.34 ------------- ------------- ------------- ---------Gross Profit 32,084.08 51.16 115,450.30 47.66 ============= ============= ============= ========== Keller Windows & Doors Income Statement For Period Ended 03/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
44,705.00 -769.00 -873.69
71.28 -1.23 -1.39
167,126.00 -2,569.00 -3,064.43
69.00 -1.06 -1.27
Operating Revenue Sales--Windows Sales Ret. & All.-Windows Sales Discounts--Windows
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
Sales--Doors Sales Ret. & All.--Doors Sales Discounts--Doors Total Operating Revenue
Page 11
4/12/2024
20,505.00 32.70 83,835.00 34.61 -425.00 -0.68 -1,425.00 -0.59 -428.73 -0.68 -1,682.06 -0.69 ------------- ------------- ------------- ---------62,713.58 100.00 242,220.51 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Windows Prch. Ret. & All.-Windows Purchases Disc.--Windows Purchases--Doors Prch. Ret. & All.--Doors Purchases Disc.--Doors
370,705.00 591.11 370,055.00 152.78 8,750.00 13.95 64,435.00 26.60 -195.00 -0.31 -960.00 -0.40 -175.50 -0.28 -612.29 -0.25 5,975.00 9.53 49,190.00 20.31 -895.00 -1.43 -1,330.00 -0.55 -100.00 -0.16 -572.50 -0.24 ------------- ------------- ------------- ---------Merchandise Available for Sa 384,064.50 612.41 480,205.21 198.25 Less Ending Inventory -353,435.00 -563.57 -353,435.00 -145.91 ------------- ------------- ------------- ---------Cost of Merchandise Sold 30,629.50 48.84 126,770.21 52.34 ------------- ------------- ------------- ---------Gross Profit 32,084.08 51.16 115,450.30 47.66 Operating Expenses Advertising Expense Deprec. Exp.--Store Eq. Sales Salary Expense Store Supplies Expense Total Selling Expenses
350.00 0.56 1,450.00 0.60 415.25 0.66 1,255.50 0.52 10,477.00 16.71 36,854.00 15.22 600.00 0.96 1,780.00 0.73 ------------- ------------- ------------- ---------11,842.25 18.88 41,339.50 17.07
Uncollectible Accts. Exp. Deprec. Exp.--Office Eq. Insurance Expense Heating and Lighting Exp. Rent Expense Admin. Salary Expense Telephone Expense Office Supplies Expense
150.00 0.24 600.00 0.25 315.10 0.50 955.20 0.39 225.00 0.36 970.00 0.40 1,107.45 1.77 2,882.60 1.19 2,825.00 4.50 8,450.00 3.49 4,090.00 6.52 11,882.72 4.91 798.62 1.27 2,652.09 1.09 360.00 0.57 1,585.00 0.65 ------------- ------------- ------------- ---------Total Admin. Expenses 9,871.17 15.74 29,977.61 12.38 ------------- ------------- ------------- ---------Total Operating Expenses 21,713.42 34.62 71,317.11 29.44 ------------- ------------- ------------- ---------Net Income from Operations 10,370.66 16.54 44,133.19 18.22 ------------- ------------- ------------- ---------Net Income before Income Tax 10,370.66 16.54 44,133.19 18.22 Income Tax Corporate Income Tax Exp. Net Income after Income Tax
3,500.00 5.58 11,000.00 4.54 ------------- ------------- ------------- ---------6,870.66 10.96 33,133.19 13.68 ============= ============= ============= ==========
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Keller Windows & Doors Retained Earnings Statement For Period Ended 03/31/-Retained Earnings (Beg. of Period) Net Income Retained Earnings (End of Period)
155,170.53 33,133.19 ------------188,303.72 =============
Keller Windows & Doors Balance Sheet 03/31/-Assets Cash Accounts Receivable Allow. for Doubt. Accts. Merch. Inventory--Windows Merch. Inventory--Doors Office Supplies Store Supplies Prepaid Insurance Total Current Asset Office Equipment Accum. Depr.--Office Eq. Store Equipment Accum. Depr.--Store Eq. Total Plant Assets
152,270.31 6,991.60 -1,200.00 233,950.00 119,485.00 1,635.00 1,900.00 285.00 ------------515,316.91 20,260.00 -10,745.20 23,920.00 -9,480.50 ------------23,954.30 -------------
Total Assets
539,271.21 =============
Liabilities Accounts Payable Sales Tax Payable Salaries Payable Corporate Income Tax Pay.
29,716.69 679.80 4,571.00 11,000.00 -------------
Total Liabilities
45,967.49
Stockholders' Equity Capital Stock Retained Earnings Net Income
305,000.00 155,170.53 33,133.19
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------------Total Stockholders' Equity
493,303.72 ------------539,271.21 =============
Total Liabilities & Equity
Keller Windows & Doors Budget Report For Period Ended 03/31/-Budget
Actual
Diff. From Budget
%
Operating Revenue Operating Revenue Cost of Merchandise Sold Gross Profit
1,270,000.00 242,220.51 -1,027,779.49 -80.93 825,000.00 126,770.21 -698,229.79 -84.63 ------------- ------------- ------------- ---------445,000.00 115,450.30 -329,549.70 -74.06 ------------- ------------- ------------- ----------
Operating Expenses Advertising Expense Deprec. Exp.--Store Eq. Sales Salary Expense Store Supplies Expense Uncollectible Accts. Exp. Deprec. Exp.--Office Eq. Insurance Expense Heating and Lighting Exp. Rent Expense Admin. Salary Expense Telephone Expense Office Supplies Expense
7,000.00 1,450.00 -5,550.00 -79.29 4,500.00 1,255.50 -3,244.50 -72.10 150,000.00 36,854.00 -113,146.00 -75.43 6,500.00 1,780.00 -4,720.00 -72.62 2,000.00 600.00 -1,400.00 -70.00 3,500.00 955.20 -2,544.80 -72.71 4,000.00 970.00 -3,030.00 -75.75 12,000.00 2,882.60 -9,117.40 -75.98 34,000.00 8,450.00 -25,550.00 -75.15 50,000.00 11,882.72 -38,117.28 -76.23 12,000.00 2,652.09 -9,347.91 -77.90 7,000.00 1,585.00 -5,415.00 -77.36 ------------- ------------- ------------- ---------Total Operating Expenses 292,500.00 71,317.11 -221,182.89 -75.62 ------------- ------------- ------------- ---------Net Income from Operations 152,500.00 44,133.19 -108,366.81 -71.06 ------------- ------------- ------------- ---------Net Income before Income Tax 152,500.00 44,133.19 -108,366.81 -71.06 Income Tax Corporate Income Tax Exp. Net Income after Income Tax
45,000.00 11,000.00 -34,000.00 -75.56 ------------- ------------- ------------- ---------107,500.00 33,133.19 -74,366.81 -69.18 ============= ============= ============= ==========
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Keller Windows & Doors Loan Amortization Schedule 03/31/-Payment Number
Payment Amount
Principal
Interest
Loan Balance
(Loan Amount) 1 2 3 4 5 6 7
1,750.00 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00
232.30 233.61 234.92 236.25 237.57 238.91 240.25
1,517.70 1,516.39 1,515.08 1,513.75 1,512.43 1,511.09 1,509.75
269,812.69 269,580.39 269,346.78 269,111.86 268,875.61 268,638.04 268,399.13 268,158.88
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Chapter 10 - Manual
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8 1,750.00 241.61 1,508.39 267,917.27 9 1,750.00 242.97 1,507.03 267,674.30 10 1,750.00 244.33 1,505.67 267,429.97 11 1,750.00 245.71 1,504.29 267,184.26 12 1,750.00 247.09 1,502.91 266,937.17 13 1,750.00 248.48 1,501.52 266,688.69 14 1,750.00 249.88 1,500.12 266,438.81 15 1,750.00 251.28 1,498.72 266,187.53 /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\ 352 1,750.00 1,663.85 86.15 13,652.09 353 1,750.00 1,673.21 76.79 11,978.88 354 1,750.00 1,682.62 67.38 10,296.26 355 1,750.00 1,692.08 57.92 8,604.18 356 1,750.00 1,701.60 48.40 6,902.58 357 1,750.00 1,711.17 38.83 5,191.41 358 1,750.00 1,720.80 29.20 3,470.61 359 1,750.00 1,730.48 19.52 1,740.13 360 1,749.92 1,740.13 9.79 .00
Keller Windows & Doors Loan Amortization Schedule 03/31/-Payment Number
Payment Amount
Principal
Interest
Loan Balance
(Loan Amount) 204,099.99 1 1,750.00 686.98 1,063.02 203,413.01 2 1,750.00 690.56 1,059.44 202,722.45 3 1,750.00 694.15 1,055.85 202,028.30 4 1,750.00 697.77 1,052.23 201,330.53 5 1,750.00 701.40 1,048.60 200,629.13 6 1,750.00 705.06 1,044.94 199,924.07 7 1,750.00 708.73 1,041.27 199,215.34 8 1,750.00 712.42 1,037.58 198,502.92 9 1,750.00 716.13 1,033.87 197,786.79 10 1,750.00 719.86 1,030.14 197,066.93 11 1,750.00 723.61 1,026.39 196,343.32 12 1,750.00 727.38 1,022.62 195,615.94 13 1,750.00 731.17 1,018.83 194,884.77 14 1,750.00 734.98 1,015.02 194,149.79 15 1,750.00 738.80 1,011.20 193,410.99 /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\ 174 1,750.00 1,687.51 62.49 10,311.24 175 1,750.00 1,696.30 53.70 8,614.94 176 1,750.00 1,705.13 44.87 6,909.81 177 1,750.00 1,714.01 35.99 5,195.80 178 1,750.00 1,722.94 27.06 3,472.86 179 1,750.00 1,731.91 18.09 1,740.95 180 1,750.02 1,740.95 9.07 .00 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Keller Windows & Doors Consolidated Gross Profit Statement For Period Ended 03/31/-Monthly Windows
Monthly Doors
Monthly Total
Monthly Percent
$44,705.00 ($769.00) ($873.69) ----------$43,062.31
$20,505.00 ($425.00) ($428.73) ----------$19,651.27
$65,210.00 ($1,194.00) ($1,302.42) ----------$62,713.58
103.98% -1.90% -2.08% --------100.00%
$246,495.00 $8,750.00 ($195.00) ($175.50) ----------$254,874.50
$124,210.00 $5,975.00 ($895.00) ($100.00) ----------$129,190.00
$370,705.00 $14,725.00 ($1,090.00) ($275.50) ----------$384,064.50
591.11% 23.48% -1.74% -0.44% --------612.41%
($233,950.00) ----------$20,924.50 ----------$22,137.81 ===========
($119,485.00) ----------$9,705.00 ----------$9,946.27 ===========
($353,435.00) ----------$30,629.50 ----------$32,084.08 ===========
-563.57% --------48.84% --------51.16% =========
Operating Revenue Sales Sales Ret. & Allow. Sales Discounts Total Operating Revenue Cost of Merchandise Sold Beginning Inventory Purchases Prch. Ret. & Allow. Purchases Disc. Merchandise Available for Sale Less Ending Inventory Cost of Merchandise Sold Gross Profit
Keller Windows & Doors Consolidated Gross Profit Statement For Period Ended 03/31/-Monthly Windows
Monthly Doors
Monthly Total
Monthly Percent
$44,705.00 ($769.00) ($873.69) ----------$43,062.31
$20,505.00 ($425.00) ($428.73) ----------$19,651.27
$65,210.00 ($1,194.00) ($1,302.42) ----------$62,713.58
103.98% -1.90% -2.08% --------100.00%
Operating Revenue Sales Sales Ret. & Allow. Sales Discounts Total Operating Revenue
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Cost of Merchandise Sold Beginning Inventory Purchases Prch. Ret. & Allow. Purchases Disc. Merchandise Available for Sale Less Ending Inventory Cost of Merchandise Sold Gross Profit
$246,495.00 $8,750.00 ($195.00) ($175.50) ----------$254,874.50
$124,210.00 $5,975.00 ($895.00) ($100.00) ----------$129,190.00
$370,705.00 $14,725.00 ($1,090.00) ($275.50) ----------$384,064.50
591.11% 23.48% -1.74% -0.44% --------612.41%
($233,950.00) ----------$20,924.50 ----------$22,137.81 ===========
($119,485.00) ----------$9,705.00 ----------$9,946.27 ===========
($353,435.00) ----------$30,629.50 ----------$32,084.08 ===========
-563.57% --------48.84% --------51.16% =========
AUDIT QUESTIONS 10-A 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
$22,800.00 $13,635.00 $64,016.00 78 Total debits and credits = $6,634.00 Total debits and credits = $14,725.00 Total debits and credits = $34,053.27 Total debits and credits = $65,889.80 Total debits and credits = $70,230.20 Department 1 = $22,137.81 Department 2 = $9,946.27 $115,450.30 $6,870.66 $188,303.72 $539,271.21 $45,967.49 $329,549.70 under budget $269,812.69 $204,099.99
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PROBLEM 10-B Keller Windows & Doors Vendor List 03/31/-Vendor Name Culter Company Enders Supply Co. Gunderson, Inc. Lancaster, Inc. Neubert Corporation Paulson, Inc. Quade Corporation Tollefson Corporation Keller Windows & Doors Customer List 03/31/-Customer Name Bickell Construction Co. Bridget Whitney Edward Lorentz Helen Murray Penkhus Remodeling, Inc. Phillip Gilbert Quality Contractors Rebecca Beyer Schaefer Builders Keller Windows & Doors Purchase Order Register 03/31/-P.O. Number
P.O. Date
Vendor Name
1148 1149
03/03/-03/27/--
Quade Corporation Paulson, Inc. Total Amount
P.O. Amount 9,880.00 9,120.00 ------------19,000.00 =============
Keller Windows & Doors Purchase Invoice Register 03/31/-Invoice Number
Invoice Date
Vendor Name
Invoice Amount
2330 2331 R2307
03/15/-03/21/-03/31/--
Quade Corporation Lancaster, Inc. Neubert Corporation
8,750.00 9,040.00 -195.00
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Chapter 10 - Manual
R2329
Page 19
03/05/--
4/12/2024
Gunderson, Inc.
-895.00 ------------16,700.00 =============
Total Amount Keller Windows & Doors Sales Invoice Register 03/31/-Invoice Number
Invoice Date
Customer Name
Invoice Amount
4637 4638 4639 4640 4641 R4637 R4638
03/02/-03/05/-03/15/-03/18/-03/30/-03/04/-03/09/--
Bickell Construction Co. Quality Contractors Phillip Gilbert Penkhus Remodeling, Inc. Edward Lorentz Bickell Construction Co. Quality Contractors Total Amount
Sales Tax
19,170.00 14,035.00 5,610.00 336.60 20,662.00 6,085.00 365.10 -769.00 -425.00 ----------- ----------64,368.00 701.70 =========== ===========
Keller Windows & Doors Inventory Transactions 03/31/-Date
Description
Inv./ P.O.
Sales Invoices 03/02 Casement Slider--Double4637 Wood Entry Door--Single 03/05 Wood Entry Door--Double4638 Garage Fire Door Casement Crank--Double Therm. Patio Door--Doub 03/15 Wood Patio Door--Double4639 Casement Crank--Single 03/18 Casement Crank--Double 4640 Casement Picture--Bay Wood Entry Door--Single Vinyl Patio Door--Singl 03/30 Wood Patio Door--Single4641 Casement Slider--Single 03/04 Casement Slider--DoubleR4637 03/09 Garage Fire Door R4638 Purchase Orders 03/03 Casement Crank--Double 1148 03/27 Casement Slider--Double1149 Purchase Invoices 03/15 Picture Window--Double 2330 03/21 Vinyl Patio Door--Doubl2331 03/31 Casement Slider--SingleR2307
Quantity Sold
Selling Price
20 2 1 2 10 1 1 8 18 2 1 3 1 12 -1 -1
769.00 1,895.00 3,500.00 425.00 769.00 1,995.00 2,450.00 395.00 769.00 1,495.00 1,895.00 645.00 1,345.00 395.00 769.00 425.00
Quan. Ord.
Quan. Recd.
Cost Price
14 16 -1
625.00 565.00 195.00
26 24
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03/05 Wood Entry Door--SingleR2329
-1 ------- ------50 28 ======= =======
--------80 =========
Totals
895.00
Keller Windows & Doors Inventory Valuation (Average Cost) 03/31/-Stock No.
Description
110 120 130 140 150 160 170 180 210 220 230 240 250 260 270 280 290
Awning Window--Double Casement Crank--Double Casement Crank--Single Casement Slider--Double Casement Slider--Single Casement Picture--Bay Picture Window--Double Picture Window--Glider Garage Fire Door Therm. Patio Door--Doub Therm. Patio Door--Sing Vinyl Patio Door--Doubl Vinyl Patio Door--Singl Wood Patio Door--Double Wood Patio Door--Single Wood Entry Door--Double Wood Entry Door--Single
On Hand
Cost
53 18 72 34 53 95 88 80 89 12 18 42 33 4 20 12 13
415.00 380.00 195.00 380.00 195.00 715.00 625.00 535.00 200.00 985.00 550.00 565.00 320.00 1,195.00 670.00 1,695.00 895.00
Total Inventory Value
Value At Cost
Retail Price
Value At Retail
21,995.00 6,840.00 14,040.00 12,920.00 10,335.00 67,925.00 55,000.00 42,800.00 17,800.00 11,820.00 9,900.00 23,730.00 10,560.00 4,780.00 13,400.00 20,340.00 11,635.00 ---------355,820.00 ==========
850.00 769.00 395.00 769.00 395.00 1,495.00 1,295.00 1,085.00 425.00 1,995.00 1,125.00 1,175.00 645.00 2,450.00 1,345.00 3,500.00 1,895.00
45,050.00 13,842.00 28,440.00 26,146.00 20,935.00 142,025.00 113,960.00 86,800.00 37,825.00 23,940.00 20,250.00 49,350.00 21,285.00 9,800.00 26,900.00 42,000.00 24,635.00 ----------733,183.00 ===========
Keller Windows & Doors General Journal 03/31/-Date
Refer.
Acct.
Title
Debit
03/01 Rev.Ent. 03/01 Rev.Ent. 03/01 Rev.Ent.
2130 6130 6580
Salaries Payable Sales Salary Expense Admin. Salary Expense
03/04 R4637 03/04 R4637
4120 1130
Sales Ret. & All.-Windows AR/Bickell Construction Co
769.00
03/05 R2329 03/05 R2329
2110 5220
AP/Gunderson, Inc. Prch. Ret. & All.--Doors
895.00
03/09 R4638 03/09 R4638
4220 1130
Sales Ret. & All.--Doors AR/Quality Contractors
425.00
03/31 R2307 03/31 R2307
2110 5120
AP/Neubert Corporation Prch. Ret. & All.-Windows
195.00
Credit
4,350.00 3,835.00 515.00 769.00 895.00 425.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
195.00
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-------------- -------------6,634.00 6,634.00 ============== ==============
Totals
Keller Windows & Doors Purchases Journal 03/31/-Date
Inv. No.
Acct.
Title
Debit
03/15 2330 03/15 2330
5110 2110
Purchases--Windows AP/Quade Corporation
8,750.00
03/21 2331 03/21 2331
5210 2110
Purchases--Doors AP/Lancaster, Inc.
9,040.00
Totals
Credit 8,750.00
9,040.00 -------------- -------------17,790.00 17,790.00 ============== ==============
Keller Windows & Doors Cash Payments Journal 03/31/-Date
Ck. No.
Acct.
Title
Debit
03/02 7215 03/02 7215
6560 1110
Heating and Lighting Exp. Cash
03/05 7216 03/05 7216
6590 1110
Telephone Expense Cash
03/11 7217 03/11 7217 03/11 7217
2110 5130 1110
AP/Quade Corporation Purchases Disc.--Windows Cash
8,750.00
03/17 7218 03/17 7218 03/17 7218
2110 5230 1110
AP/Tollefson Corporation Purchases Disc.--Doors Cash
5,000.00
03/21 7219 03/21 7219
6110 1110
Advertising Expense Cash
325.00
03/24 7220 03/24 7220
2110 1110
AP/Neubert Corporation Cash
289.40
03/30 7221 03/30 7221 03/30 7221
6130 6580 1110
Sales Salary Expense Admin. Salary Expense Cash
10,158.00 4,015.00
03/30 7222 03/30 7222
6570 1110
Rent Expense Cash
2,825.00
03/31 7223 03/31 7223
2120 1110
Sales Tax Payable Cash
Credit
1,079.37 1,079.37 883.15 883.15 175.50 8,574.50 100.00 4,900.00 325.00 289.40
14,173.00 2,825.00 586.80
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586.80
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-------------- -------------33,911.72 33,911.72 ============== ==============
Totals
Keller Windows & Doors Sales Journal 03/31/-Date
Inv. No.
Acct.
Title
Debit
03/02 4637 03/02 4637 03/02 4637
1130 4110 4210
AR/Bickell Construction Co Sales--Windows Sales--Doors
19,170.00
03/05 4638 03/05 4638 03/05 4638
1130 4210 4110
AR/Quality Contractors Sales--Doors Sales--Windows
14,035.00
03/15 4639 03/15 4639 03/15 4639 03/15 4639
1130 4210 4110 2120
AR/Phillip Gilbert Sales--Doors Sales--Windows Sales Tax Payable
5,946.60
03/18 4640 03/18 4640 03/18 4640
1130 4110 4210
AR/Penkhus Remodeling, Inc Sales--Windows Sales--Doors
20,662.00
03/30 4641 03/30 4641 03/30 4641 03/30 4641
1130 4210 4110 2120
AR/Edward Lorentz Sales--Doors Sales--Windows Sales Tax Payable
6,450.10
Totals
Credit 15,380.00 3,790.00 6,345.00 7,690.00 2,450.00 3,160.00 336.60 16,832.00 3,830.00
1,345.00 4,740.00 365.10 -------------- -------------66,263.70 66,263.70 ============== ==============
Keller Windows & Doors Cash Receipts Journal 03/31/-Date
Refer.
Acct.
Title
Debit
03/02 4636 03/02 4636 03/02 4636 03/02 4636
1110 4130 4230 1130
Cash Sales Discounts--Windows Sales Discounts--Doors AR/Schaefer Builders
12,186.30 142.20 106.50
03/09 4637 03/09 4637 03/09 4637 03/09 4637
1110 4130 4230 1130
Cash Sales Discounts--Windows Sales Discounts--Doors AR/Bickell Construction Co
18,032.98 287.06 80.96
03/14 4638 03/14 4638 03/14 4638
1110 4130 4230
Cash Sales Discounts--Windows Sales Discounts--Doors
13,337.80 153.80 118.40
Credit
12,435.00
18,401.00
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03/14 4638
1130
AR/Quality Contractors
13,610.00
03/21 4639 03/21 4639
1110 1130
Cash AR/Phillip Gilbert
5,946.60
03/28 4640 03/28 4640 03/28 4640 03/28 4640
1110 4130 4230 1130
Cash Sales Discounts--Windows Sales Discounts--Doors AR/Penkhus Remodeling, Inc
20,248.76 336.64 76.60
5,946.60
20,662.00 -------------- -------------71,054.60 71,054.60 ============== ==============
Totals
Keller Windows & Doors Trial Balance 03/31/-Acct. Number
Account Title
1110 1130 1140 1150 1151 1160 1170 1180 1510 1520 1530 1540 2110 2120 2140 3110 3120 3140 3141 4110 4120 4130 4210 4220 4230 5110 5120 5130 5210
Cash Accounts Receivable Allow. for Doubt. Accts. Merch. Inventory--Windows Merch. Inventory--Doors Office Supplies Store Supplies Prepaid Insurance Office Equipment Accum. Depr.--Office Eq. Store Equipment Accum. Depr.--Store Eq. Accounts Payable Sales Tax Payable Corporate Income Tax Pay. Capital Stock Retained Earnings Income Summary--Windows Income Summary--Doors Sales--Windows Sales Ret. & All.-Windows Sales Discounts--Windows Sales--Doors Sales Ret. & All.--Doors Sales Discounts--Doors Purchases--Windows Prch. Ret. & All.-Windows Purchases Disc.--Windows Purchases--Doors
Debit
Credit
153,236.52 6,541.10 1,050.00 246,495.00 124,210.00 1,995.00 2,500.00 510.00 20,260.00 10,430.10 23,920.00 9,065.25 32,781.69 701.70 7,500.00 305,000.00 155,170.53 10,065.00 10,715.00 170,223.00 2,569.00 3,110.44 81,090.00 1,425.00 1,635.79 64,435.00 960.00 612.29 52,255.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
5220 5230 6110 6120 6130 6140 6510 6520 6540 6560 6570 6580 6590 6600 9110
Page 24
Prch. Ret. & All.--Doors Purchases Disc.--Doors Advertising Expense Deprec. Exp.--Store Eq. Sales Salary Expense Store Supplies Expense Uncollectible Accts. Exp. Deprec. Exp.--Office Eq. Insurance Expense Heating and Lighting Exp. Rent Expense Admin. Salary Expense Telephone Expense Office Supplies Expense Corporate Income Tax Exp. Totals
4/12/2024
1,330.00 572.50 1,425.00 840.25 32,700.00 1,180.00 450.00 640.10 745.00 2,854.52 8,450.00 11,292.72 2,736.62 1,225.00 7,500.00 ----------------- ----------------787,202.06 787,202.06 ================= =================
Keller Windows & Doors General Journal 03/31/-Date
Refer.
Acct.
Title
Debit
03/31 Adj.Ent. 03/31 Adj.Ent.
3140 1150
Income Summary--Windows Merch. Inventory--Windows
12,820.00
03/31 Adj.Ent. 03/31 Adj.Ent.
3141 1151
Income Summary--Doors Merch. Inventory--Doors
2,510.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6540 1180
Insurance Expense Prepaid Insurance
200.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6600 1160
Office Supplies Expense Office Supplies
400.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6140 1170
Store Supplies Expense Store Supplies
625.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6520 1520
Deprec. Exp.--Office Eq. Accum. Depr.--Office Eq.
315.10
03/31 Adj.Ent. 03/31 Adj.Ent.
6120 1540
Deprec. Exp.--Store Eq. Accum. Depr.--Store Eq.
415.25
03/31 Adj.Ent. 03/31 Adj.Ent.
6510 1140
Uncollectible Accts. Exp. Allow. for Doubt. Accts.
125.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6130 6580
Sales Salary Expense Admin. Salary Expense
Credit 12,820.00 2,510.00 200.00 400.00 625.00 315.10 415.25 125.00
4,017.00 583.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
Page 25
03/31 Adj.Ent.
2130
Salaries Payable
03/31 Adj.Ent. 03/31 Adj.Ent.
9110 2140
Corporate Income Tax Exp. Corporate Income Tax Pay. Totals
4/12/2024
4,600.00 3,500.00 3,500.00 -------------- -------------25,510.35 25,510.35 ============== ==============
Keller Windows & Doors Gross Profit Statement Department 1 For Period Ended 03/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales--Windows Sales Ret. & All.-Windows Sales Discounts--Windows Total Operating Revenue
47,802.00 103.66 170,223.00 103.45 -769.00 -1.67 -2,569.00 -1.56 -919.70 -1.99 -3,110.44 -1.89 ------------- ------------- ------------- ---------46,113.30 100.00 164,543.56 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Windows Prch. Ret. & All.-Windows Purchases Disc.--Windows
246,495.00 534.54 256,560.00 155.92 8,750.00 18.98 64,435.00 39.16 -195.00 -0.42 -960.00 -0.58 -175.50 -0.38 -612.29 -0.37 ------------- ------------- ------------- ---------Merchandise Available for Sa 254,874.50 552.71 319,422.71 194.13 Less Ending Inventory -233,675.00 -506.74 -233,675.00 -142.01 ------------- ------------- ------------- ---------Cost of Merchandise Sold 21,199.50 45.97 85,747.71 52.11 ------------- ------------- ------------- ---------Gross Profit 24,913.80 54.03 78,795.85 47.89 ============= ============= ============= ========== Keller Windows & Doors Gross Profit Statement Department 2 For Period Ended 03/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales--Doors Sales Ret. & All.--Doors Sales Discounts--Doors Total Operating Revenue
17,760.00 104.76 81,090.00 103.92 -425.00 -2.51 -1,425.00 -1.83 -382.46 -2.26 -1,635.79 -2.10 ------------- ------------- ------------- ---------16,952.54 100.00 78,029.21 100.00
Cost of Merchandise Sold © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
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4/12/2024
Beginning Inventory Purchases--Doors Prch. Ret. & All.--Doors Purchases Disc.--Doors
124,210.00 732.69 113,495.00 145.45 9,040.00 53.33 52,255.00 66.97 -895.00 -5.28 -1,330.00 -1.70 -100.00 -0.59 -572.50 -0.73 ------------- ------------- ------------- ---------Merchandise Available for Sa 132,255.00 780.15 163,847.50 209.98 Less Ending Inventory -121,700.00 -717.89 -121,700.00 -155.97 ------------- ------------- ------------- ---------Cost of Merchandise Sold 10,555.00 62.26 42,147.50 54.02 ------------- ------------- ------------- ---------Gross Profit 6,397.54 37.74 35,881.71 45.99 ============= ============= ============= ========== Keller Windows & Doors Consolidated Gross Profit Statement For Period Ended 03/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales--Windows Sales Ret. & All.-Windows Sales Discounts--Windows Sales--Doors Sales Ret. & All.--Doors Sales Discounts--Doors Total Operating Revenue
47,802.00 75.80 170,223.00 70.17 -769.00 -1.22 -2,569.00 -1.06 -919.70 -1.46 -3,110.44 -1.28 17,760.00 28.16 81,090.00 33.43 -425.00 -0.67 -1,425.00 -0.59 -382.46 -0.61 -1,635.79 -0.67 ------------- ------------- ------------- ---------63,065.84 100.00 242,572.77 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Windows Prch. Ret. & All.-Windows Purchases Disc.--Windows Purchases--Doors Prch. Ret. & All.--Doors Purchases Disc.--Doors
370,705.00 587.81 370,055.00 152.55 8,750.00 13.87 64,435.00 26.56 -195.00 -0.31 -960.00 -0.40 -175.50 -0.28 -612.29 -0.25 9,040.00 14.33 52,255.00 21.54 -895.00 -1.42 -1,330.00 -0.55 -100.00 -0.16 -572.50 -0.24 ------------- ------------- ------------- ---------Merchandise Available for Sa 387,129.50 613.85 483,270.21 199.23 Less Ending Inventory -355,375.00 -563.50 -355,375.00 -146.50 ------------- ------------- ------------- ---------Cost of Merchandise Sold 31,754.50 50.35 127,895.21 52.72 ------------- ------------- ------------- ---------Gross Profit 31,311.34 49.65 114,677.56 47.28 ============= ============= ============= ========== Keller Windows & Doors Income Statement For Period Ended 03/31/-Monthly Amount
Monthly Percent
Yearly Amount
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Yearly Percent
Chapter 10 - Manual
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Operating Revenue Sales--Windows Sales Ret. & All.-Windows Sales Discounts--Windows Sales--Doors Sales Ret. & All.--Doors Sales Discounts--Doors Total Operating Revenue
47,802.00 75.80 170,223.00 70.17 -769.00 -1.22 -2,569.00 -1.06 -919.70 -1.46 -3,110.44 -1.28 17,760.00 28.16 81,090.00 33.43 -425.00 -0.67 -1,425.00 -0.59 -382.46 -0.61 -1,635.79 -0.67 ------------- ------------- ------------- ---------63,065.84 100.00 242,572.77 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Windows Prch. Ret. & All.-Windows Purchases Disc.--Windows Purchases--Doors Prch. Ret. & All.--Doors Purchases Disc.--Doors
370,705.00 587.81 370,055.00 152.55 8,750.00 13.87 64,435.00 26.56 -195.00 -0.31 -960.00 -0.40 -175.50 -0.28 -612.29 -0.25 9,040.00 14.33 52,255.00 21.54 -895.00 -1.42 -1,330.00 -0.55 -100.00 -0.16 -572.50 -0.24 ------------- ------------- ------------- ---------Merchandise Available for Sa 387,129.50 613.85 483,270.21 199.23 Less Ending Inventory -355,375.00 -563.50 -355,375.00 -146.50 ------------- ------------- ------------- ---------Cost of Merchandise Sold 31,754.50 50.35 127,895.21 52.72 ------------- ------------- ------------- ---------Gross Profit 31,311.34 49.65 114,677.56 47.28 Operating Expenses Advertising Expense Deprec. Exp.--Store Eq. Sales Salary Expense Store Supplies Expense Total Selling Expenses
325.00 0.52 1,425.00 0.59 415.25 0.66 1,255.50 0.52 10,340.00 16.40 36,717.00 15.14 625.00 0.99 1,805.00 0.74 ------------- ------------- ------------- ---------11,705.25 18.56 41,202.50 16.99
Uncollectible Accts. Exp. Deprec. Exp.--Office Eq. Insurance Expense Heating and Lighting Exp. Rent Expense Admin. Salary Expense Telephone Expense Office Supplies Expense
125.00 0.20 575.00 0.24 315.10 0.50 955.20 0.39 200.00 0.32 945.00 0.39 1,079.37 1.71 2,854.52 1.18 2,825.00 4.48 8,450.00 3.48 4,083.00 6.47 11,875.72 4.90 883.15 1.40 2,736.62 1.13 400.00 0.63 1,625.00 0.67 ------------- ------------- ------------- ---------Total Admin. Expenses 9,910.62 15.71 30,017.06 12.37 ------------- ------------- ------------- ---------Total Operating Expenses 21,615.87 34.28 71,219.56 29.36 ------------- ------------- ------------- ---------Net Income from Operations 9,695.47 15.37 43,458.00 17.92 ------------- ------------- ------------- ---------Net Income before Income Tax 9,695.47 15.37 43,458.00 17.92 Income Tax © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
Page 28
Corporate Income Tax Exp. Net Income after Income Tax
4/12/2024
3,500.00 5.55 11,000.00 4.53 ------------- ------------- ------------- ---------6,195.47 9.82 32,458.00 13.38 ============= ============= ============= ==========
Keller Windows & Doors Retained Earnings Statement For Period Ended 03/31/-Retained Earnings (Beg. of Period) Net Income Retained Earnings (End of Period)
155,170.53 32,458.00 ------------187,628.53 =============
Keller Windows & Doors Balance Sheet 03/31/-Assets Cash Accounts Receivable Allow. for Doubt. Accts. Merch. Inventory--Windows Merch. Inventory--Doors Office Supplies Store Supplies Prepaid Insurance Total Current Asset Office Equipment Accum. Depr.--Office Eq. Store Equipment Accum. Depr.--Store Eq. Total Plant Assets
153,236.52 6,541.10 -1,175.00 233,675.00 121,700.00 1,595.00 1,875.00 310.00 ------------517,757.62 20,260.00 -10,745.20 23,920.00 -9,480.50 ------------23,954.30 -------------
Total Assets
541,711.92 =============
Liabilities Accounts Payable Sales Tax Payable Salaries Payable Corporate Income Tax Pay. Total Liabilities
32,781.69 701.70 4,600.00 11,000.00 ------------49,083.39
Stockholders' Equity © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
Page 29
Capital Stock Retained Earnings Net Income
305,000.00 155,170.53 32,458.00 -------------
Total Stockholders' Equity
4/12/2024
492,628.53 ------------541,711.92 =============
Total Liabilities & Equity
Keller Windows & Doors Budget Report For Period Ended 03/31/-Budget
Actual
Diff. From Budget
%
Operating Revenue Operating Revenue Cost of Merchandise Sold Gross Profit
1,270,000.00 242,572.77 -1,027,427.23 -80.90 825,000.00 127,895.21 -697,104.79 -84.50 ------------- ------------- ------------- ---------445,000.00 114,677.56 -330,322.44 -74.23 ------------- ------------- ------------- ----------
Operating Expenses Advertising Expense Deprec. Exp.--Store Eq. Sales Salary Expense Store Supplies Expense Uncollectible Accts. Exp. Deprec. Exp.--Office Eq. Insurance Expense Heating and Lighting Exp. Rent Expense Admin. Salary Expense Telephone Expense Office Supplies Expense
7,000.00 1,425.00 -5,575.00 -79.64 4,500.00 1,255.50 -3,244.50 -72.10 150,000.00 36,717.00 -113,283.00 -75.52 6,500.00 1,805.00 -4,695.00 -72.23 2,000.00 575.00 -1,425.00 -71.25 3,500.00 955.20 -2,544.80 -72.71 4,000.00 945.00 -3,055.00 -76.38 12,000.00 2,854.52 -9,145.48 -76.21 34,000.00 8,450.00 -25,550.00 -75.15 50,000.00 11,875.72 -38,124.28 -76.25 12,000.00 2,736.62 -9,263.38 -77.19 7,000.00 1,625.00 -5,375.00 -76.79 ------------- ------------- ------------- ---------Total Operating Expenses 292,500.00 71,219.56 -221,280.44 -75.65 ------------- ------------- ------------- ---------Net Income from Operations 152,500.00 43,458.00 -109,042.00 -71.50 ------------- ------------- ------------- ---------Net Income before Income Tax 152,500.00 43,458.00 -109,042.00 -71.50 Income Tax Corporate Income Tax Exp. Net Income after Income Tax
45,000.00 11,000.00 -34,000.00 -75.56 ------------- ------------- ------------- ---------107,500.00 32,458.00 -75,042.00 -69.81 ============= ============= ============= ==========
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
Page 30
4/12/2024
Keller Windows & Doors Loan Amortization Schedule 03/31/-Payment Number
Payment Amount
Principal
Interest
Loan Balance
(Loan Amount) 1 2 3 4 5 6
2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
212.28 213.61 214.94 216.28 217.64 219.00
1,787.72 1,786.39 1,785.06 1,783.72 1,782.36 1,781.00
286,035.25 285,822.97 285,609.36 285,394.42 285,178.14 284,960.50 284,741.50
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Chapter 10 - Manual
Page 31
4/12/2024
7 2,000.00 220.37 1,779.63 284,521.13 8 2,000.00 221.74 1,778.26 284,299.39 9 2,000.00 223.13 1,776.87 284,076.26 10 2,000.00 224.52 1,775.48 283,851.74 11 2,000.00 225.93 1,774.07 283,625.81 12 2,000.00 227.34 1,772.66 283,398.47 13 2,000.00 228.76 1,771.24 283,169.71 14 2,000.00 230.19 1,769.81 282,939.52 15 2,000.00 231.63 1,768.37 282,707.89 /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\ 352 2,000.00 1,890.94 109.06 15,558.67 353 2,000.00 1,902.76 97.24 13,655.91 354 2,000.00 1,914.65 85.35 11,741.26 355 2,000.00 1,926.62 73.38 9,814.64 356 2,000.00 1,938.66 61.34 7,875.98 357 2,000.00 1,950.78 49.22 5,925.20 358 2,000.00 1,962.97 37.03 3,962.23 359 2,000.00 1,975.24 24.76 1,986.99 360 1,999.41 1,986.99 12.42 .00 Keller Windows & Doors Loan Amortization Schedule 03/31/-Payment Number
Payment Amount
Principal
Interest
Loan Balance
(Loan Amount) 222,511.92 1 2,000.00 702.01 1,297.99 221,809.91 2 2,000.00 706.11 1,293.89 221,103.80 3 2,000.00 710.23 1,289.77 220,393.57 4 2,000.00 714.37 1,285.63 219,679.20 5 2,000.00 718.54 1,281.46 218,960.66 6 2,000.00 722.73 1,277.27 218,237.93 7 2,000.00 726.95 1,273.05 217,510.98 8 2,000.00 731.19 1,268.81 216,779.79 9 2,000.00 735.45 1,264.55 216,044.34 10 2,000.00 739.74 1,260.26 215,304.60 11 2,000.00 744.06 1,255.94 214,560.54 12 2,000.00 748.40 1,251.60 213,812.14 13 2,000.00 752.76 1,247.24 213,059.38 14 2,000.00 757.15 1,242.85 212,302.23 15 2,000.00 761.57 1,238.43 211,540.66 /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\ 174 2,000.00 1,920.21 79.79 11,758.66 175 2,000.00 1,931.41 68.59 9,827.25 176 2,000.00 1,942.67 57.33 7,884.58 177 2,000.00 1,954.01 45.99 5,930.57 178 2,000.00 1,965.40 34.60 3,965.17 179 2,000.00 1,976.87 23.13 1,988.30 180 1,999.90 1,988.30 11.60 .00 Keller Windows & Doors Consolidated Gross Profit Statement For Period Ended 03/31/-© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
Page 32
4/12/2024
Monthly Windows
Monthly Doors
Monthly Total
Monthly Percent
$47,802.00 ($769.00) ($919.70) ----------$46,113.30
$17,760.00 ($425.00) ($382.46) ----------$16,952.54
$65,562.00 ($1,194.00) ($1,302.16) ----------$63,065.84
103.96% -1.89% -2.06% --------100.00%
$246,495.00 $8,750.00 ($195.00) ($175.50) ----------$254,874.50
$124,210.00 $9,040.00 ($895.00) ($100.00) ----------$132,255.00
$370,705.00 $17,790.00 ($1,090.00) ($275.50) ----------$387,129.50
587.81% 28.21% -1.73% -0.44% --------613.85%
($233,675.00) ----------$21,199.50 ----------$24,913.80 ===========
($121,700.00) ----------$10,555.00 ----------$6,397.54 ===========
($355,375.00) ----------$31,754.50 ----------$31,311.34 ===========
-563.50% --------50.35% --------49.65% =========
Operating Revenue Sales Sales Ret. & Allow. Sales Discounts Total Operating Revenue Cost of Merchandise Sold Beginning Inventory Purchases Prch. Ret. & Allow. Purchases Disc. Merchandise Available for Sale Less Ending Inventory Cost of Merchandise Sold Gross Profit
Keller Windows & Doors Consolidated Gross Profit Statement For Period Ended 03/31/-Monthly Windows
Monthly Doors
Monthly Total
Monthly Percent
$47,802.00 ($769.00) ($919.70) ----------$46,113.30
$17,760.00 ($425.00) ($382.46) ----------$16,952.54
$65,562.00 ($1,194.00) ($1,302.16) ----------$63,065.84
103.96% -1.89% -2.06% --------100.00%
$246,495.00 $8,750.00 ($195.00) ($175.50) ----------$254,874.50
$124,210.00 $9,040.00 ($895.00) ($100.00) ----------$132,255.00
$370,705.00 $17,790.00 ($1,090.00) ($275.50) ----------$387,129.50
587.81% 28.21% -1.73% -0.44% --------613.85%
Operating Revenue Sales Sales Ret. & Allow. Sales Discounts Total Operating Revenue Cost of Merchandise Sold Beginning Inventory Purchases Prch. Ret. & Allow. Purchases Disc. Merchandise Available for Sale
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 10 - Manual
Less Ending Inventory Cost of Merchandise Sold Gross Profit
Page 33
($233,675.00) ----------$21,199.50 ----------$24,913.80 ===========
4/12/2024
($121,700.00) ----------$10,555.00 ----------$6,397.54 ===========
($355,375.00) ----------$31,754.50 ----------$31,311.34 ===========
AUDIT QUESTIONS 10-B 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
$19,000.00 $16,700.00 $64,368.00 80 Total debits and credits = $6,634.00 Total debits and credits = $17,790.00 Total debits and credits = $33,911.72 Total debits and credits = $66,263.70 Total debits and credits = $71,054.60 Department 1 = $24,913.80 Department 2 = $6,397.54 $114,677.56 $6,195.47 $187,628.53 $541,711.92 $49,083.39 $330,322.44 under budget $286,035.25 $222,511.92
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
-563.50% --------50.35% --------49.65% =========
Chapter 11 - Manual
Page 1
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Chapter 11
ACCOUNTING SYSTEM SETUP STUDENT EXERCISES I.
True/False
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
T F T T F F T T F F
II. Questions 1. Report by Month and Year: The income statement will include columns for both the current month and the current year. Also included for each column is a percentage (called component percentage), indicating the percent of each amount in relation to total operating revenue. Report by Fiscal Period: The income statement will contain only the amount column and percent of total operating revenue representing the current fiscal period. 2. The software uses this data to prepare financial statements, carry out integration among the systems (ex. Payroll, purchase order, sales order processing), and to perform period-end closing tasks. 3. The Account Subtotals tab allows you to add additional subtotals to the financial statements. 4. The Classify Accounts tab allows you to identify the different types of accounts (assets, liabilities, etc.) based on account number ranges. 5. (1) Quarterly and yearly historical data may be created by running simulated payrolls for each pay period up to the desired date, or (2) by entering one payroll transaction for each employee for each quarter that represents the sum of that employee’s earnings and withholdings for the quarter. 6. The journal wizard is used to create special general, purchases, cash payments, sales, and cash receipts journals. 7. The Tax Tables tab is used to update the federal tax brackets, state tax brackets, rates, and limits used by the software to calculate both the employee and employer tax withholdings.
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 11 - Manual
Page 2
4/12/2024
PROBLEM 11-A Schaff Irrigation Co. Chart of Accounts 01/01/-Assets 1105 1115 1120 1130 1140 1145 1150 1520 1530 1560 1565
Cash Accounts Receivable Allow. for UnColl. Accts. Merchandise Inventory Supplies -- Office Supplies -- Wrhs. Prepaid Insurance Equipment -- Office Accum. Dep. -- Off. Eq. Warehouse Equipment Accum. Dep. -- Wrhs. Eq.
Liabilities 2105 2110 2120 2121 2122 2125 2126 2130 2135 2140 2150 2160 2170
Accounts Payable Salaries Payable Emp. Inc. Tax Pay.--Fed. Emp. Inc. Tax Pay.--State Emp. Inc. Tax Pay.--City Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Sales Tax Payable Unemp. Tax Pay. -- Fed. Unemp. Tax Pay. -- State Health Ins. Prem. Pay. Dental Ins. Prem. Pay. Credit Union Deduct. Pay.
Owner's Equity 3110 3120 3135
Robert Schaff, Capital Robert Schaff, Drawing Income Summary
Revenue 4105 4110 4115
Sales Sales Discount Sales Ret. and Allow.
Cost 5110
Cost of Merchandise Sold
Expenses 6105 6130
Advertising Expense Depr. Exp.--Off. Eq.
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 11 - Manual
6140 6150 6155 6170 6180 6195 6197 6215 6225
Page 3
4/12/2024
Depr. Exp.--Wrhs. Eq. Insurance Expense Miscellaneous Expense Payroll Taxes Expense Rent Expense Salary Exp.--Office Salary Exp.--Wrhs. Telephone Expense Utilities Expense
Schaff Irrigation Co. Vendor List 01/01/-Vendor Name Alpha Irrigation Co. C-Tech Manufacturing Inc. Deco Electronics Reed Irrigation Systems
Schaff Irrigation Co. Customer List 01/01/-Customer Name Cardinal Sprinkler Inc. Delta Irrigation Green Landscape Co. Maxx's Lawn Care Rain Cloud Sprinkler Co. Webb Lawn Sprinklers Schaff Irrigation Co. Fixed Assets List 01/01/-Date Acquired
Depr. Method
Useful Life
Original Cost
Salvage Value
Depr. Accts
110 Copy Machine
03/21/11
SL
6
3,000.00
220.00
120 Facsimile Machine
01/28/12
SL
5
875.00
75.00
130 File Cabinet
04/20/12
SL
10
760.00
50.00
140 Computer System
02/24/12
MACRS
5
2,500.00
250.00
210 Fork Lift
08/31/12
DDB
8
4,000.00
450.00
220 Shelving
09/30/12
DDB
10
4,200.00
400.00
1530 6130 1530 6130 1530 6130 1530 6130 1565 6140 1565 6140
Asset
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 11 - Manual
230 Conveyor Belt Total Fixed Assets
Page 4
02/20/12
SL
4/12/2024
10
9,895.00
750.00
----------25,230.00 ===========
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1565 6140
Chapter 11 - Manual
Page 5
4/12/2024
Schaff Irrigation Co. Employee List 01/01/-Emp. No.
Employee Name/Address
Soc. Sec./ Mar. Stat.
210
Abler, Lillian 4521 Monroe St. Abilene, TX 79605-2100
435-24-5449 Married W/H 3
26
6195
2,450.00
220
Boswell, Paul 1873 Campbell Ave. Abilene, TX 79601-5816
767-33-8092 Single W/H 1
26
6197
2,200.00
230
Linton, Thomas 109 Whiperwill Dr. Abilene, TX 79601-5337
587-45-4204 Single W/H 1
26
6197
Monson, Shirley 745 Stuart Ln. Abilene, TX 79605-5450
495-30-9083 Married W/H 2
26
240
# Pay G.L. Periods Acct.
Salary/ Rate
12.95 6195 12.75
Schaff Irrigation Co. Inventory List 01/01/-Stock No. Description
Unit On Meas. Hand
1010 1020 1030 1040 3010 3020 3030
EA EA EA EA EA EA EA
Reed Deluxe Heads Alpha S-10 Heads C-Tech Spr. Heads Reed Strip Spray Deco 32-S Control C-Tech Control System Deco Control Box
30 83 54 61 27 31 35
On Order
Reorder Point
Last Cost
Retail Price
10 0 0 0 0 0 0
30 50 30 50 25 18 30
110.00 39.00 80.00 49.00 237.00 135.00 110.00
185.00 60.00 124.00 76.00 400.00 230.00 185.00
Schaff Irrigation Co. Inventory Transactions 01/01/-Date
Description
Sales Invoices 01/01 Reed Deluxe Heads 01/01 Alpha S-10 Heads 01/01 C-Tech Spr. Heads 01/01 Reed Strip Spray 01/01 Deco 32-S Control 01/01 C-Tech Control System
Inv./ P.O.
Quantity Sold
Selling Price
762 763 764 765 766 767
60 167 146 164 53 29
185.00 60.00 124.00 76.00 400.00 230.00
Quan. Ord.
Quan. Recd.
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Cost Price
Chapter 11 - Manual
Page 6
01/01 Deco Control Box
768
Purchase Orders 01/01 Reed Deluxe Heads 01/01 Alpha S-10 Heads 01/01 C-Tech Spr. Heads 01/01 Reed Strip Spray 01/01 Deco 32-S Control 01/01 C-Tech Control System 01/01 Deco Control Box
235 236 237 238 239 240 241
Purchase Invoices 01/01 Reed Deluxe Heads Reed Deluxe Heads 01/01 Alpha S-10 Heads 01/01 C-Tech Spr. Heads C-Tech Spr. Heads 01/01 Reed Strip Spray 01/01 Deco 32-S Control Deco 32-S Control 01/01 C-Tech Control System 01/01 Deco Control Box
4/12/2024
65
185.00 100 250 200 225 80 60 100
421
45 45 250 100 100 225 35 45 60 100 ------- ------1015 1005 ======= =======
422 423 424 425 426 427 --------684 =========
Totals
Schaff Irrigation Co. Trial Balance 01/01/-Acct. Number
Account Title
1105 1115 1130 1140 1145 1150 1520 1530 1560 1565 2105 2130 3110 4105 5110
Cash Accounts Receivable Merchandise Inventory Supplies -- Office Supplies -- Wrhs. Prepaid Insurance Equipment -- Office Accum. Dep. -- Off. Eq. Warehouse Equipment Accum. Dep. -- Wrhs. Eq. Accounts Payable Sales Tax Payable Robert Schaff, Capital Sales Cost of Merchandise Sold Totals
Debit
Credit
11,875.00 97,077.98 28,280.00 2,425.00 1,895.00 3,200.00 7,155.00 1,650.50 18,075.00 4,536.80 84,095.00 5,494.98 38,437.70 91,583.00 55,815.00 ----------------- ----------------225,797.98 225,797.98 ================= =================
Schaff Irrigation Co. Schedule of Accounts Payable 01/01/-© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
100.00 110.00 39.00 81.25 80.00 49.00 228.00 237.00 135.00 110.00
Chapter 11 - Manual
Page 7
Name
4/12/2024
Balance
Alpha Irrigation Co. C-Tech Manufacturing Inc. Deco Electronics Reed Irrigation Systems Total
9,750.00 24,225.00 29,645.00 20,475.00 ----------------84,095.00 =================
Schaff Irrigation Co. Schedule of Accounts Receivable 01/01/-Name
Balance
Cardinal Sprinkler Inc. Delta Irrigation Green Landscape Co. Maxx's Lawn Care Rain Cloud Sprinkler Co. Webb Lawn Sprinklers Total
31,936.74 10,621.20 22,472.00 11,766.00 13,211.84 7,070.20 ----------------97,077.98 =================
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 11-A Fixed Assets 1. $75.00 2. 02/20/12 3. $25,230.00 Payroll 4. $2,200.00 5. $12.75 6. 109 Whiperwill Dr.; Abilene, TX
79601-5337
Inventory 7. 8. 9. 10.
$80.00 684 1,015 1,005
Accounting 11. $225,797.98 12. $97,077.98 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 11 - Manual
13. 14. 15. 16. 17.
Page 8
4/12/2024
$84,095.00 $24,225.00 $84,095.00 $13,211.84 $97,077.98
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 11 - Manual
Page 9
4/12/2024
PROBLEM 11-B Wright Cleaning Service Chart of Accounts 02/01/-Assets 1105 1115 1125 1135 1150 1500 1510 1520 1530
Cash Accounts Receivable Notes Receivable Supplies Prepaid Insurance Equipment--Cleaning Accum. Dep.--Cln Eq. Equipment--Office Accum. Dep.--Off. Eq.
Liabilities 2105 2130 2505
Accounts Payable Sales Tax Payable Notes Payable
Owner's Equity 3110 3120 3130
Laurie Wright, Capital Laurie Wright, Drawing Income Summary
Revenue 4105 4110
Sales Sales Discount
Expenses 6105 6120 6130 6145 6190 6200 6210
Advertising Expense Depr. Exp.--Cln. Eq. Depr. Exp.--Off. Eq. Insurance Expense Telephone Expense Utilities Expense Vehicle Expense
Other Revenue 7110
Interest Income
Other Expense 8105
Interest Expense
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 11 - Manual
Page 10
4/12/2024
Wright Cleaning Service Vendor List 02/01/-Vendor Name Brooks Hardware Gaffer Cleaning Supply Morton Office Products Snell Advertising, Inc.
Wright Cleaning Service Customer List 02/01/-Customer Name Berg Retirement Center Gary Owens Holman Corporation Ruth Parker Taber & Associates
Wright Cleaning Service Trial Balance 02/01/-Acct. Number
Account Title
1105 1115 1125 1135 1150 1500 1510 1520 1530 2105 2505 3110
Cash Accounts Receivable Notes Receivable Supplies Prepaid Insurance Equipment--Cleaning Accum. Dep.--Cln Eq. Equipment--Office Accum. Dep.--Off. Eq. Accounts Payable Notes Payable Laurie Wright, Capital Totals
Debit
Credit
2,395.00 6,500.00 1,200.00 500.00 350.00 2,300.00 672.10 5,200.00 1,705.40 1,200.00 4,500.00 10,367.50 ----------------- ----------------18,445.00 18,445.00 ================= =================
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 11 - Manual
Page 11
4/12/2024
Wright Cleaning Service Schedule of Accounts Payable 02/01/-Name
Balance
Brooks Hardware Gaffer Cleaning Supply Morton Office Products Snell Advertising, Inc. Total
270.80 269.05 153.41 506.74 ----------------1,200.00 =================
Wright Cleaning Service Schedule of Accounts Receivable 02/01/-Name
Balance
Berg Retirement Center Gary Owens Holman Corporation Ruth Parker Taber & Associates Total
500.00 87.50 1,975.00 137.50 3,800.00 ----------------6,500.00 =================
Wright Cleaning Service Balance Sheet 02/01/-Assets Cash Accounts Receivable Notes Receivable Supplies Prepaid Insurance Total Current Assets Equipment--Cleaning Accum. Dep.--Cln Eq. Equipment--Office Accum. Dep.--Off. Eq. Total Fixed Assets Total Assets
2,395.00 6,500.00 1,200.00 500.00 350.00 ------------10,945.00 2,300.00 -672.10 5,200.00 -1,705.40 ------------5,122.50 ------------16,067.50
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 11 - Manual
Page 12
4/12/2024
============= Liabilities Accounts Payable Total Current Liabilities Notes Payable Total Long-Term Liabilities
1,200.00 ------------1,200.00 4,500.00 ------------4,500.00 -------------
Total Liabilities
5,700.00
Owner's Equity Laurie Wright, Capital Total Owner's Equity Total Liabilities & Equity
10,367.50 ------------10,367.50 ------------16,067.50 =============
Student responses to the Internet activity will vary.
AUDIT QUESTIONS 11-B 1. 2. 3. 4. 5. 6. 7. 8. 9.
$18,445.00 $6,500.00 $1,200.00 $506.74 $1,200.00 $1,975.00 $6,500.00 $10,945.00 $5,122.50
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Comprehensive Problem 1
Page 1
4/12/2024
COMPREHENSIVE PROBLEM 01 RMK Electric Generators Vendor List 03/31/-Vendor Name Bandow Manufacturing Gerlach Corporation Kimura Generators, Inc. Lamont Power Cords, Inc. Parker Industries, Inc. Taplin Electric Systems Wensel Company RMK Electric Generators Customer List 03/31/-Customer Name Bowers Rentals Drake Corporation Fowler Insurance Agency K & S Computer Services Mercy Hospital Paulson Internet, Inc. Salazar Medical Supplies Urgent Medical Care RMK Electric Generators Purchase Order Register 03/31/-P.O. Number
P.O. Date
Vendor Name
368 369 370
03/03/-03/05/-03/10/--
Bandow Manufacturing Parker Industries, Inc. Gerlach Corporation Total Amount
P.O. Amount 5,475.00 1,320.00 12,540.00 ------------19,335.00 =============
RMK Electric Generators Purchase Invoice Register 03/31/-Invoice Number
Invoice Date
Vendor Name
Invoice Amount
528
03/08/--
Taplin Electric Systems
1,710.00
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Manual - Comprehensive Problem 1
529 530
03/27/-03/30/--
Page 2
4/12/2024
Bandow Manufacturing Parker Industries, Inc.
5,475.00 1,320.00 ------------8,505.00 =============
Total Amount
RMK Electric Generators Sales Invoice Register 03/31/-Invoice Number
Invoice Date
Customer Name
765 766 767 768 R756
03/02/-03/07/-03/14/-03/23/-03/17/--
Bowers Rentals Urgent Medical Care Mercy Hospital Drake Corporation K & S Computer Services Total Amount
Invoice Amount
Sales Tax
14,749.96 1,032.50 9,995.00 699.65 8,228.97 576.03 6,219.93 435.40 -1,250.00 -87.50 ----------- ----------37,943.86 1,624.58 =========== ===========
RMK Electric Generators General Journal 03/31/-Date
Refer.
03/17 R756 03/17 R756 03/17 R756 03/17 R756 03/17 R756
Acct.
Title
Debit
4120 2120 1130 5110 1140
Sales Returns & Allow. Sales Tax Payable AR/K & S Computer Services Cost of Merchandise Sold Merchandise Inventory Totals
Credit
1,250.00 87.50 1,337.50 685.00 685.00 -------------- -------------2,022.50 2,022.50 ============== ==============
RMK Electric Generators Purchases Journal 03/31/-Date
Inv. No.
Acct.
Title
Debit
03/08 528 03/08 528
1140 2110
Merchandise Inventory AP/Taplin Electric Systems
1,710.00
03/27 529 03/27 529
1140 2110
Merchandise Inventory AP/Bandow Manufacturing
5,475.00
03/30 530
1140
Merchandise Inventory
1,320.00
Credit 1,710.00 5,475.00
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Manual - Comprehensive Problem 1
03/30 530
2110
Page 3
AP/Parker Industries, Inc. Totals
4/12/2024
1,320.00 -------------- -------------8,505.00 8,505.00 ============== ==============
RMK Electric Generators Cash Payments Journal 03/31/-Date
Ck. No.
Acct.
Title
Debit
03/05 8215 03/05 8215 03/05 8215
2110 1140 1110
AP/Bandow Manufacturing Merchandise Inventory Cash
38,925.00
03/07 8216 03/07 8216 03/07 8216
2510 8110 1110
Note Payable Interest Expense Cash
1,000.00 50.00
03/15 8217 03/15 8217
6130 1110
Rent Expense Cash
1,200.00
03/18 8218 03/18 8218
6150 1110
Heating & Lighting Exp. Cash
03/21 8219 03/21 8219 03/21 8219
2110 1140 1110
AP/Taplin Electric Systems Merchandise Inventory Cash
1,710.00
03/24 8220 03/24 8220 03/24 8220
2110 1140 1110
AP/Lamont Power Cords, Inc Merchandise Inventory Cash
1,075.00
03/26 8221 03/26 8221
6110 1110
Advertising Expense Cash
375.00
03/27 8222 03/27 8222
6140 1110
Telephone Expense Cash
593.96
03/29 8223 03/29 8223
6120 1110
Miscellaneous Expense Cash
45.00
03/31 8224 03/31 8224
6160 1110
Salaries Expense Cash
4,438.57
03/31 8225 03/31 8225
2120 1110
Sales Tax Payable Cash
3,844.63
03/31 8226 03/31 8226
3120 1110
Rebecca Krenik, Drawing Cash
1,250.00
Credit 778.50 38,146.50
1,050.00 1,200.00 534.32 534.32 34.20 1,675.80 21.50 1,053.50 375.00 593.96 45.00 4,438.57 3,844.63 1,250.00 -------------- --------------
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Comprehensive Problem 1
Page 4
Totals
4/12/2024
55,041.48 55,041.48 ============== ============== RMK Electric Generators Sales Journal 03/31/--
Date
Inv. No.
Acct.
Title
Debit
03/02 765 03/02 765 03/02 765 03/02 765 03/02 765
1130 4110 2120 5110 1140
AR/Bowers Rentals Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
15,782.46
03/07 766 03/07 766 03/07 766 03/07 766 03/07 766
1130 4110 2120 5110 1140
AR/Urgent Medical Care Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
10,694.65
03/14 767 03/14 767 03/14 767 03/14 767 03/14 767
1130 4110 2120 5110 1140
AR/Mercy Hospital Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
8,805.00
03/23 768 03/23 768 03/23 768 03/23 768 03/23 768
1130 4110 2120 5110 1140
AR/Drake Corporation Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
6,655.33
Totals
Credit 14,749.96 1,032.50
8,084.00 8,084.00 9,995.00 699.65 5,475.00 5,475.00 8,228.97 576.03 4,520.00 4,520.00 6,219.93 435.40 3,444.00 3,444.00 -------------- -------------63,460.44 63,460.44 ============== ==============
RMK Electric Generators Cash Receipts Journal 03/31/-Date
Refer.
Acct.
Title
03/03 760 03/03 760 03/03 760
1110 4130 1130
Cash Sales Discount AR/Bowers Rentals
57,968.71 1,183.03
03/10 757 03/10 757 03/10 757
1110 4130 1130
Cash Sales Discount AR/Mercy Hospital
9,594.63 195.81
03/20 26 03/20 26
1110 3110
Cash Rebecca Krenik, Capital
8,750.00
Totals
Debit
Credit
59,151.74
9,790.44 8,750.00 -------------- -------------77,692.18 77,692.18
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Manual - Comprehensive Problem 1
Page 5
4/12/2024
============== ============== RMK Electric Generators Schedule of Accounts Payable 03/31/-Name
Balance
Bandow Manufacturing Gerlach Corporation Kimura Generators, Inc. Parker Industries, Inc. Taplin Electric Systems Wensel Company
5,475.00 15,895.00 10,275.00 1,320.00 14,220.00 4,170.00 ----------------51,355.00 =================
Total
RMK Electric Generators Accounts Payable Ledger 03/31/-Account
Journal
Bandow Manufacturing Balance Forward Cash Payments Purchases
Date
Refer.
03/05 8215 03/27 529
Debit
Credit
Balance
5,475.00
38,925.00Cr .00 5,475.00Cr
38,925.00
Gerlach Corporation Balance Forward
15,895.00Cr
Kimura Generators, Inc. Balance Forward
10,275.00Cr
Lamont Power Cords, Inc. Balance Forward Purchases Cash Payments Cash Payments
02/28 527 02/28 8214 03/24 8220
Parker Industries, Inc. Purchases
03/30 530
1,320.00
1,320.00Cr
Taplin Electric Systems Balance Forward Purchases Cash Payments
03/08 528 03/21 8219
1,710.00
14,220.00Cr 15,930.00Cr 14,220.00Cr
258.00 258.00 1,075.00
1,710.00
Wensel Company Balance Forward
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1,075.00Cr 1,333.00Cr 1,075.00Cr .00
4,170.00Cr
Manual - Comprehensive Problem 1
Page 6
4/12/2024
RMK Electric Generators Schedule of Accounts Receivable 03/31/-Name
Balance
Bowers Rentals Drake Corporation K & S Computer Services Mercy Hospital Paulson Internet, Inc. Salazar Medical Supplies Urgent Medical Care
15,782.46 15,835.91 21,389.24 8,805.00 18,498.13 16,819.26 10,694.65 ----------------107,824.65 =================
Total
RMK Electric Generators Accounts Receivable Ledger 03/31/-Account
Journal
Date
Refer.
Debit
Credit
Bowers Rentals Balance Forward Sales Cash Receipts
03/02 765 03/03 760
15,782.46
Drake Corporation Balance Forward Sales
03/23 768
6,655.33
Fowler Insurance Agency Cash Receipts Sales
02/28 764 02/28 764
374.49
K & S Computer Services Balance Forward General
03/17 R756
1,337.50
Mercy Hospital Balance Forward Cash Receipts Sales
03/10 757 03/14 767
9,790.44
59,151.74
Balance 59,151.74Dr 74,934.20Dr 15,782.46Dr 9,180.58Dr 15,835.91Dr
374.49
8,805.00
374.49Cr .00 22,726.74Dr 21,389.24Dr 9,790.44Dr .00 8,805.00Dr
Paulson Internet, Inc. Balance Forward
18,498.13Dr
Salazar Medical Supplies Balance Forward
16,819.26Dr
Urgent Medical Care Sales
03/07 766
10,694.65
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
10,694.65Dr
Manual - Comprehensive Problem 1
Page 7
4/12/2024
RMK Electric Generators Inventory List 03/31/-Stock No. Description
Unit On Meas. Hand
110 120 130 140 150 160 200 210 220 230 240 250 260
EA EA EA EA EA EA EA EA EA EA EA EA EA
Kimura Rec 2000 Watt Bandow Pro 10000 Watt Bandow Pro 17500 Watt Gerlach A/C 20 kW Gerlach A/C 22 kW Gerlach Luxury 48 kW Indoor Transfer Switch Outdoor Transfer Switch Power Cord Generator Cover - Small Generator Cover - Medium Generator Cover - Large Parker Wheel Kit
On Order
Reorder Point
0 0 0 0 3 0 0 0 0 0 0 0 0
12 8 8 6 6 4 24 24 48 48 48 36 10
14 16 10 9 5 5 23 29 59 55 55 37 24
Last Cost
Retail Price
685.00 1095.00 1500.00 2335.00 4180.00 5475.00 189.00 285.00 21.50 22.00 27.50 30.00 55.00
1250.00 1999.99 2699.99 4250.00 7599.00 9995.00 349.99 529.99 39.99 39.99 49.99 54.99 99.99
RMK Electric Generators Inventory Transactions 03/31/-Inv./
Quantity
Selling
Quan.
Quan.
Cost Date Description Price
P.O.
Sold
Price
Ord.
Recd.
Sales Invoices 03/02 Gerlach A/C 20 kW Gerlach Luxury 48 kW
765
1 1
4,250.00 9,995.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Comprehensive Problem 1
Page 8
4/12/2024
Indoor Transfer Switch Generator Cover - Mediu Generator Cover - Large 03/07 Gerlach Luxury 48 kW 766 03/14 Gerlach A/C 22 kW 767 Outdoor Transfer Switch Generator Cover - Mediu 03/23 Bandow Pro 17500 Watt 768 Indoor Transfer Switch Generator Cover - Small 03/17 Kimura Rec 2000 Watt R756 Purchase Orders 03/03 Bandow Pro 10000 Watt 03/05 Parker Wheel Kit 03/10 Gerlach A/C 22 kW
1 2 1 1 1 1 2 2 2 3 -1
349.99 49.99 54.99 9,995.00 7,599.00 529.99 49.99 2,699.99 349.99 39.99 1,250.00
368 369 370
5 24 3
Purchase Invoices 03/08 Outdoor Transfer Switch528 285.00 03/27 Bandow Pro 10000 Watt 529 1,095.00 03/30 Parker Wheel Kit 530 55.00
6 5 24 --------17 =========
Totals
------- ------32 35 ======= =======
RMK Electric Generators Inventory Exceptions 03/31/-Stock No. 150 point 200 point
Description
Unit Meas
On Hand
On Order
Gerlach A/C 22 kW
EA
5
3
Indoor Transfer Switch
EA
23
Reorder Point Exception 6
At/below reorder
24
At/below reorder
RMK Electric Generators Yearly Sales 03/31/-Stock No.
Description
Unit Meas
Yearly Quantity
Yearly Amount
110 120 130 140 150 160
Kimura Rec 2000 Watt Bandow Pro 10000 Watt Bandow Pro 17500 Watt Gerlach A/C 20 kW Gerlach A/C 22 kW Gerlach Luxury 48 kW
EA EA EA EA EA EA
1 4 5 3 7 7
1,250.00 7,999.96 13,499.95 12,750.00 53,193.00 69,965.00
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Manual - Comprehensive Problem 1
Page 9
200 210 220 230 240 250 260
EA EA EA EA EA EA EA
Indoor Transfer Switch Outdoor Transfer Switch Power Cord Generator Cover - Small Generator Cover - Mediu Generator Cover - Large Parker Wheel Kit
4/12/2024
7 7 3 5 5 3
2,449.93 3,709.93 119.97 199.95 249.95 164.97
-------------- -------------57 165,552.61 ============== ============== RMK Electric Generators Trial Balance 03/31/-Acct. Number
Account Title
1110 1130 1140 1150 1160 1510 1511 1520 1521 2110 2120 2510 3110 3120 4110 4120 4130 5110 6110 6120 6130 6140 6150 6160 6170 6180 6190 6200 8110
Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Warehouse Equipment Accum. Dep. -- Wrhs. Eq. Office Equipment Accum. Dep. -- Office Eq. Accounts Payable Sales Tax Payable Note Payable Rebecca Krenik, Capital Rebecca Krenik, Drawing Sales Sales Returns & Allow. Sales Discount Cost of Merchandise Sold Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq. Deprec. Exp. Office Eq. Interest Expense Totals
Debit
Credit
46,870.22 107,824.65 129,593.64 2,589.50 3,200.00 34,250.00 8,389.00 10,750.00 2,710.00 51,355.00 2,656.08 14,000.00 218,129.32 7,250.00 166,802.61 1,250.00 1,386.33 90,875.00 1,575.00 395.00 3,600.00 2,176.41 1,552.16 13,415.43 836.30 653.00 2,542.00 759.00 698.37 ----------------- ----------------464,042.01 464,042.01 ================= =================
RMK Electric Generators General Journal 03/31/-© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Comprehensive Problem 1
Date
Refer.
Page 10
4/12/2024
Acct.
Title
Debit
03/31 Adj.Ent. 03/31 Adj.Ent.
6180 1160
Insurance Expense Prepaid Insurance
525.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6170 1150
Supplies Expense Supplies
435.50
03/31 Adj.Ent. 03/31 Adj.Ent.
6190 1511
Deprec. Exp. Wrhs. Eq. Accum. Dep. -- Wrhs. Eq.
594.63
03/31 Adj.Ent. 03/31 Adj.Ent.
6200 1521
Deprec. Exp. Office Eq. Accum. Dep. -- Office Eq.
207.00
03/31 Adj.Ent. 03/31 Adj.Ent.
6160 2140
Salaries Expense Salaries Payable
407.12
Totals
Credit 525.00 435.50 594.63 207.00
407.12 -------------- -------------2,169.25 2,169.25 ============== ==============
RMK Electric Generators Income Statement For Period Ended 03/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discount Total Operating Revenue
39,193.86 107.19 166,802.61 101.61 -1,250.00 -3.42 -1,250.00 -0.76 -1,378.84 -3.77 -1,386.33 -0.84 ------------- ------------- ------------- ---------36,565.02 100.00 164,166.28 100.00
Cost Cost of Merchandise Sold Total Cost Gross Profit
20,838.00 56.99 90,875.00 55.36 ------------- ------------- ------------- ---------20,838.00 56.99 90,875.00 55.36 ------------- ------------- ------------- ---------15,727.02 43.01 73,291.28 44.64
Operating Expenses Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq.
375.00 45.00 1,200.00 593.96 534.32 4,845.69 435.50 525.00 594.63
1.03 0.12 3.28 1.62 1.46 13.25 1.19 1.44 1.63
1,575.00 395.00 3,600.00 2,176.41 1,552.16 13,822.55 1,271.80 1,178.00 3,136.63
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
0.96 0.24 2.19 1.33 0.95 8.42 0.77 0.72 1.91
Manual - Comprehensive Problem 1
Deprec. Exp. Office Eq. Total Operating Expenses Net Income from Operations
Page 11
4/12/2024
207.00 0.57 966.00 0.59 ------------- ------------- ------------- ---------9,356.10 25.59 29,673.55 18.08 ------------- ------------- ------------- ---------6,370.92 17.42 43,617.73 26.57
Other Expense Interest Expense
50.00 0.14 698.37 0.43 ------------- ------------- ------------- ---------6,320.92 17.29 42,919.36 26.14 ============= ============= ============= ==========
Net Income
RMK Electric Generators Statement of Owner's Equity For Period Ended 03/31/-Rebecca Krenik, Capital (Beg. of Period) Rebecca Krenik, Drawing Additional Investment Net Income Rebecca Krenik, Capital (End of Period)
209,379.32 -7,250.00 8,750.00 42,919.36 ------------253,798.68 =============
RMK Electric Generators Balance Sheet 03/31/-Assets Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Total Current Assets Warehouse Equipment Accum. Dep. -- Wrhs. Eq. Office Equipment Accum. Dep. -- Office Eq. Total Plant Assets
46,870.22 107,824.65 129,593.64 2,154.00 2,675.00 ------------289,117.51 34,250.00 -8,983.63 10,750.00 -2,917.00 ------------33,099.37 -------------
Total Assets
322,216.88 =============
Liabilities Accounts Payable Sales Tax Payable Salaries Payable
51,355.00 2,656.08 407.12
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Comprehensive Problem 1
Page 12
Total Current Liabilities
------------54,418.20
Note Payable Total Long-Term Liabilities
4/12/2024
14,000.00 ------------14,000.00 -------------
Total Liabilities
68,418.20
Owner's Equity Rebecca Krenik, Capital Rebecca Krenik, Drawing Net Income
218,129.32 -7,250.00 42,919.36 -------------
Total Owner's Equity
253,798.68 ------------322,216.88 =============
Total Liabilities & Equity
RMK Electric Generators Budget Report For Period Ended 03/31/-Budget
Actual
Diff. From Budget
%
Operating Revenue Operating Revenue Cost of Merchandise Sold Gross Profit
635,000.00 164,166.28 -470,833.72 -74.15 370,000.00 90,875.00 -279,125.00 -75.44 ------------- ------------- ------------- ---------265,000.00 73,291.28 -191,708.72 -72.34 ------------- ------------- ------------- ----------
Operating Expenses Advertising Expense Miscellaneous Expense Rent Expense Telephone Expense Heating & Lighting Exp. Salaries Expense Supplies Expense Insurance Expense Deprec. Exp. Wrhs. Eq. Deprec. Exp. Office Eq. Total Operating Expenses Net Income from Operations
7,500.00 1,575.00 -5,925.00 -79.00 1,250.00 395.00 -855.00 -68.40 18,000.00 3,600.00 -14,400.00 -80.00 10,000.00 2,176.41 -7,823.59 -78.24 7,500.00 1,552.16 -5,947.84 -79.30 65,000.00 13,822.55 -51,177.45 -78.73 6,000.00 1,271.80 -4,728.20 -78.80 5,000.00 1,178.00 -3,822.00 -76.44 13,000.00 3,136.63 -9,863.37 -75.87 4,200.00 966.00 -3,234.00 -77.00 ------------- ------------- ------------- ---------137,450.00 29,673.55 -107,776.45 -78.41 ------------- ------------- ------------- ---------127,550.00 43,617.73 -83,932.27 -65.80
Other Expense © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Manual - Comprehensive Problem 1
Interest Expense Net Income
Page 13
4/12/2024
3,500.00 698.37 -2,801.63 -80.05 ------------- ------------- ------------- ---------124,050.00 42,919.36 -81,130.64 -65.40 ============= ============= ============= ==========
AUDIT QUESTIONS - COMPREHENSIVE PROBLEM 01 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
$19,335.00 $8,505.00 $37,943.86 ($1,624.58 sales tax) Total debits and credits = $8,505.00 Total debits and credits = $55,041.48 Total debits and credits = $63,460.44 Total debits and credits = $77,692.18 $51,355.00 $107,824.65 $8,805.00 17 (18 minus 1 return) $165,552.61 $20,838.00 $253,798.68 $322,216.88 $68,418.20 $470,833.72 $107,776.45
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Comp. Problem 2 - Manual
Page 1
4/12/2024
Comprehensive Problem 2 It's About Time Purchase Order Register 04/30/13 P.O. Number
P.O. Date
Vendor Name
P.O. Amount
713 714
04/03/13 04/29/13
Accurate Clocks, Inc. Clock Assembly Co.
396.00 2,382.00 ------------2,778.00 =============
Total Amount
It's About Time Purchase Invoice Register 04/30/13 Invoice Number
Invoice Date
Vendor Name
Invoice Amount
1273 1274 R1264
04/18/13 04/21/13 04/22/13
Clock Assembly Co. Clock Shop, Inc. Precision Clock, Mfg.
207.50 637.50 -71.35 ------------773.65 =============
Total Amount
It's About Time Sales Invoice Register 04/30/13 Invoice Number
Invoice Date
Customer Name
Invoice Amount
4525 4526 4527 4528 R4524
04/02/13 04/06/13 04/16/13 04/25/13 04/21/13
Mayfield Golf Club Schaefer Decorating Kuhl Manufacturing Foster Clinic Milner & Son Law Offices Total Amount
Sales Tax
10,763.75 645.83 15,580.00 934.80 2,130.00 127.80 7,134.38 428.06 -50.00 -3.00 ----------- ----------35,558.13 2,133.49 =========== ===========
It's About Time General Journal 04/30/13 Date
Refer.
Acct.
Title
Debit
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Credit
Comp. Problem 2 - Manual
Page 2
4/12/2024
04/21 R4524 04/21 R4524 04/21 R4524 04/21 R4524 04/21 R4524
4130 2120 1120 5110 1130
Sales Returns & Allow. Sales Tax Payable AR/Milner & Son Law Office Cost of Merchandise Sold Merchandise Inventory
50.00 3.00
04/22 R1264 04/22 R1264
2110 1130
AP/Precision Clock, Mfg. Merchandise Inventory
71.35
Totals
53.00 27.50 27.50 71.35 -------------- -------------151.85 151.85 ============== ==============
It's About Time Purchases Journal 04/30/13 Date
Inv. No.
Acct.
Title
Debit
04/18 1273 04/18 1273
1130 2110
Merchandise Inventory AP/Clock Assembly Co.
207.50
04/21 1274 04/21 1274
1130 2110
Merchandise Inventory AP/Clock Shop, Inc.
637.50
Totals
Credit 207.50
637.50 -------------- -------------845.00 845.00 ============== ==============
It's About Time Cash Payments Journal 04/30/13 Date
Ck. No.
Acct.
Title
Debit
04/01 3023 04/01 3023
2245 1110
Salaries Payable Cash
04/05 3024 04/05 3024
2250 1110
Health Ins. Premiums Pay. Cash
270.00
04/05 3025 04/05 3025
2260 1110
Life Ins. Premiums Pay. Cash
130.00
04/07 3026 04/07 3026
1510 1110
Store Equipment Cash
04/10 3027 04/10 3027
2270 1110
Credit Union Deduct. Pay. Cash
420.00
04/13 3028 04/13 3028
1140 1110
Store Supplies Cash
176.85
04/15 3029 04/15 3029 04/15 3029
2210 2230 2240
Emp. Fed. Inc. Tax Pay. Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI
903.96 677.04 158.35
Credit
7,819.77 7,819.77 270.00 130.00 1,195.95 1,195.95 420.00 176.85
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Comp. Problem 2 - Manual
Page 3
4/12/2024
04/15 3029
1110
Cash
1,739.35
04/15 3030 04/15 3030
2220 1110
Emp. State Inc. Tax Pay. Cash
304.68
04/15 3031 04/15 3031
2225 1110
Emp. City Income Tax Pay. Cash
109.20
04/16 3032 04/16 3032
1530 1110
Office Equipment Cash
345.00
04/17 3033 04/17 3033
1510 1110
Store Equipment Cash
550.00
04/18 3034 04/18 3034
6530 1110
Telephone Expense Cash
286.35
04/22 3035 04/22 3035
2280 1110
Federal Unemp. Tax Pay. Cash
33.36
04/25 3036 04/25 3036
6510 1110
Utilities Expense Cash
403.62
04/25 3037 04/25 3037
2110 1110
AP/Precision Clock, Mfg. Cash
1,924.35
04/28 3038 04/28 3038
2290 1110
State Unemp. Tax Payable Cash
327.60
04/28 3039 04/28 3039
1150 1110
Office Supplies Cash
138.00
04/29 3040 04/29 3040
1530 1110
Office Equipment Cash
1,500.00
04/29 3041 04/29 3041
3120 1110
Nadine Herzog, Drawing Cash
500.00
04/30 3042 04/30 3042 04/30 3042
2110 1130 1110
AP/Precision Clock, Mfg. Merchandise Inventory Cash
1,376.90
Totals
304.68 109.20 345.00 550.00 286.35 33.36 403.62 1,924.35 327.60 138.00 1,500.00 500.00 27.54 1,349.36 -------------- -------------19,550.98 19,550.98 ============== ==============
It's About Time Sales Journal 04/30/13 Date
Inv. No.
04/02 4525 04/02 4525 04/02 4525 04/02 4525
Acct.
Title
1120 4110 2120 5110
AR/Mayfield Golf Club Sales Sales Tax Payable Cost of Merchandise Sold
Debit
Credit
11,409.58 10,763.75 645.83 5,828.75
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Comp. Problem 2 - Manual
Page 4
4/12/2024
04/02 4525
1130
Merchandise Inventory
04/06 4526 04/06 4526 04/06 4526 04/06 4526 04/06 4526
1120 4110 2120 5110 1130
AR/Schaefer Decorating Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
16,514.80
04/16 4527 04/16 4527 04/16 4527 04/16 4527 04/16 4527
1120 4110 2120 5110 1130
AR/Kuhl Manufacturing Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
2,257.80
04/25 4528 04/25 4528 04/25 4528 04/25 4528 04/25 4528
1120 4110 2120 5110 1130
AR/Foster Clinic Sales Sales Tax Payable Cost of Merchandise Sold Merchandise Inventory
7,562.44
Totals
5,828.75 15,580.00 934.80 8,500.00 8,500.00 2,130.00 127.80 1,182.50 1,182.50 7,134.38 428.06 3,931.00 3,931.00 -------------- -------------57,186.87 57,186.87 ============== ==============
It's About Time Cash Receipts Journal 04/30/13 Date
Refer.
Acct.
Title
Debit
04/03 4522 04/03 4522 04/03 4522
1110 4120 1120
Cash Sales Discounts AR/Foster Clinic
4,891.71 99.83
04/16 4520 04/16 4520 04/16 4520
1110 4120 1120
Cash Sales Discounts AR/Mayfield Golf Club
10,126.69 206.67
04/21 4525 04/21 4525 04/21 4525
1110 4120 1120
Cash Sales Discounts AR/Mayfield Golf Club
11,181.39 228.19
04/28 4526 04/28 4526 04/28 4526
1110 4120 1120
Cash Sales Discounts AR/Schaefer Decorating
16,184.50 330.30
4,991.54
Totals
10,333.36
11,409.58
16,514.80 -------------- -------------43,249.28 43,249.28 ============== ==============
It's About Time Schedule of Accounts Payable 04/30/13 Name
Credit
Balance
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Comp. Problem 2 - Manual
Accurate Clocks, Inc. Clock Assembly Co. Clock Shop, Inc. Total
Page 5
4/12/2024
11,612.00 12,313.50 9,510.50 ----------------33,436.00 =================
It's About Time Schedule of Accounts Receivable 04/30/13 Name
Balance
Foster Clinic Kuhl Manufacturing Milner & Son Law Offices Total
7,562.44 3,668.66 424.00 ----------------11,655.10 =================
It's About Time Inventory Transactions 04/30/13 Date
Description
Inv./ P.O.
Sales Invoices 04/02 Oak Grandfather Clock 4525 Pen & Pencil Desk Clock Paper Weight Clock Pocket Watch 04/06 Cherry Grandfather Cloc4526 04/16 Pendulum Clock 4527
Quantity Sold
Selling Price
6 10 5 6 4 1
1,589.00 75.00 35.95 50.00 3,895.00 1,695.00
Quan. Ord.
Quan. Recd.
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Cost Price
Comp. Problem 2 - Manual
Electric Wall Clock 04/25 Pendulum Clock Digital Alarm Clock Radio Alarm Clock Marble Desk Clock 04/21 Pocket Watch
Page 6
4/12/2024
3 4 4 2 3 -1
4528
R4524
145.00 1,695.00 34.85 39.99 45.00 50.00
Purchase Orders 04/03 Travel Alarm Clock 713 04/29 Cherry Grandfather Cloc714 Cuckoo Clock
24 1 2
Purchase Invoices 04/18 Pen & Pencil Desk Clock1273 04/21 Pendulum Table Clock 1274 04/22 Wood Table Clock R1264 Totals
5 10 -1 ------- ------27 14 ======= =======
41.50 63.75 71.35
Current
Quarterly
Yearly
--------47 ========= It's About Time Payroll Report 04/30/13
110-Forster, James 6120-Sales Single Acct. 6120 W/H 1 852-40-7598 Pay Periods 12 Salary 3,275.00 Hourly Rate Reg. Hours O.T. Hours Check Number 853 Check Date 04/30/13
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Life Insurance Credit Union Employee SUTA Net Pay
3,275.00 404.08 104.56 203.05 47.49 32.75 50.00 25.00 150.00
3,275.00 404.08 104.56 203.05 47.49 32.75 50.00 25.00 150.00
13,100.00 1,616.32 418.24 812.20 189.96 131.00 200.00 100.00 600.00
2,258.07
2,258.07
9,032.28
130-Ramos, Luis 6120-Sales Married Acct. 6120 W/H 2 370-73-0873 Pay Periods 12 Salary 3,500.00 Hourly Rate Reg. Hours O.T. Hours Check Number 854 Check Date 04/30/13
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Life Insurance Credit Union Employee SUTA Net Pay
3,500.00 280.21 110.32 217.00 50.75 35.00 85.00 40.00 120.00
3,500.00 280.21 110.32 217.00 50.75 35.00 85.00 40.00 120.00
14,000.00 1,120.84 441.28 868.00 203.00 140.00 340.00 160.00 480.00
2,561.72
2,561.72
10,246.88
140-Sieberg, Charles 6540-Office Married Acct. 6540 W/H 4 223-98-3211 Pay Periods 12 Salary 2,475.00 Hourly Rate
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance
2,475.00 74.17 56.09 153.45 35.89 24.75 85.00
2,475.00 74.17 56.09 153.45 35.89 24.75 85.00
9,900.00 296.68 224.36 613.80 143.56 99.00 340.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Comp. Problem 2 - Manual
Page 7
Reg. Hours O.T. Hours Check Number 855 Check Date 04/30/13
Life Insurance Credit Union Employee SUTA Net Pay
150-Visser, Karla 6540-Office Single Acct. 6540 W/H 1 531-67-9625 Pay Periods 12 Salary 1,670.00 Hourly Rate Reg. Hours O.T. Hours Check Number 856 Check Date 04/30/13 Payroll Summary
4/12/2024
40.00 100.00
40.00 100.00
160.00 400.00
1,905.65
1,905.65
7,622.60
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Life Insurance Credit Union Employee SUTA Net Pay
1,670.00 145.50 33.71 103.54 24.22 16.70 50.00 25.00 50.00
1,670.00 145.50 33.71 103.54 24.22 16.70 50.00 25.00 50.00
6,680.00 582.00 134.84 414.16 96.88 66.80 200.00 100.00 200.00
1,221.33
1,221.33
4,885.32
Gross Pay FIT SIT Soc. Sec.--OASDI Medicare--HI CIT Health Insurance Life Insurance Credit Union Employee SUTA Net Pay
10,920.00 903.96 304.68 677.04 158.35 109.20 270.00 130.00 420.00
10,920.00 903.96 304.68 677.04 158.35 109.20 270.00 130.00 420.00
43,680.00 3,615.84 1,218.72 2,708.16 633.40 436.80 1,080.00 520.00 1,680.00
7,946.77
7,946.77
31,787.08
It's About Time Fixed Assets List 04/30/13 Date Acquired
Depr. Method
Useful Life
Original Cost
Salvage Value
Depr. Accts
110 Storage Cabinet
02/20/13
DDB
10
1,500.00
200.00
120 P5-Tech Computer
08/25/12
MACRS
5
2,875.00
400.00
130 Inkjet Printer
03/04/13
SL
5
950.00
200.00
140 Shelving
10/03/12
SL
10
2,700.00
300.00
150 Fax/Copy Machine
01/15/13
DDB
5
1,300.00
100.00
160 Cash Register
04/01/12
MACRS
5
2,790.00
300.00
170 Display Case
04/07/13
SL
5
1,250.00
100.00
180 Computer Monitor
04/17/13
DDB
4
547.50
50.00
210 HF10 Computer
12/05/12
MACRS
5
3,575.00
400.00
220 Laser Printer
05/20/12
MACRS
5
1,900.00
400.00
230 Copy Machine
08/01/13
SL
7
1,600.00
200.00
1520 6140 1520 6140 1520 6140 1520 6140 1520 6140 1520 6140 1520 6140 1520 6140 1540 6560 1540 6560 1540 6560
Asset
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Comp. Problem 2 - Manual
Page 8
4/12/2024
240 Security Vault
03/24/10
SL
10
2,500.00
300.00
250 Receptionist Desk
11/03/12
DDB
7
3,110.00
400.00
260 Executive Desk
10/31/12
SL
7
3,150.00
350.00
270 Facsimile Machine
07/10/12
DDB
5
1,050.00
100.00
280 Binding Machine
04/16/13
SL
5
405.00
35.00
290 Notebook Computer
04/29/13
MACRS
5
1,485.00
300.00
----------32,687.50 ===========
Total Fixed Assets
It's About Time Depreciation Schedules 04/30/13 Year
Annual Deprec.
Accum. Deprec.
Book Value
(170) Display Case Acquired on 04/07/13 Straight-Line Useful Life = 5 Original Cost = 1,250.00 Salvage Value = 100.00
2013 2014 2015 2016 2017 2018
172.50 230.00 230.00 230.00 230.00 57.50
172.50 402.50 632.50 862.50 1,092.50 1,150.00
1,077.50 847.50 617.50 387.50 157.50 100.00
(180) Computer Monitor Acquired on 04/17/13 Double Declining-Balance Useful Life = 4 Original Cost = 547.50 Salvage Value = 50.00
2013 2014 2015 2016
205.31 171.10 85.55 35.54
205.31 376.41 461.96 497.50
342.19 171.09 85.54 50.00
(280) Binding Machine Acquired on 04/16/13 Straight-Line Useful Life = 5 Original Cost = 405.00 Salvage Value = 35.00
2013 2014 2015 2016 2017 2018
55.50 74.00 74.00 74.00 74.00 18.50
55.50 129.50 203.50 277.50 351.50 370.00
349.50 275.50 201.50 127.50 53.50 35.00
(290) Notebook Computer Acquired on 04/29/13 MACRS Useful Life = 5 Original Cost = 1,485.00 Salvage Value = 300.00
2013 2014 2015 2016 2017 2018
297.00 475.20 285.12 171.07 171.07 85.54
297.00 772.20 1,057.32 1,228.39 1,399.46 1,485.00
1,188.00 712.80 427.68 256.61 85.54 0.00
It's About Time Trial Balance 04/30/13 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1540 6560 1540 6560 1540 6560 1540 6560 1540 6560 1540 6560
Comp. Problem 2 - Manual
Page 9
Acct. Number
Account Title
1110 1120 1130 1140 1150 1160 1510 1520 1530 1540 2110 2120 2210 2220 2225 2230 2240 2245 2250 2260 2270 2280 2290 3110 3120 4110 4120 4130 5110 6110 6120 6130 6140 6510 6530 6540 6550 6560 6570 6580 6590
Cash Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Store Equipment Accum. Depr.--Store Eqpt. Office Equipment Accum. Depr.--Ofc. Eqpt. Accounts Payable Sales Tax Payable Emp. Fed. Inc. Tax Pay. Emp. State Inc. Tax Pay. Emp. City Income Tax Pay. Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Salaries Payable Health Ins. Premiums Pay. Life Ins. Premiums Pay. Credit Union Deduct. Pay. Federal Unemp. Tax Pay. State Unemp. Tax Payable Nadine Herzog, Capital Nadine Herzog, Drawing Sales Sales Discounts Sales Returns & Allow. Cost of Merchandise Sold Advertising Expense Sales Salaries Expense Store Supplies Expense Depr. Exp.--Store Eqpt. Utilities Expense Telephone Expense Office Salary Expense Office Supplies Expense Depr. Exp.--Office Eqpt. Insurance Expense Payroll Taxes Expense Miscellaneous Expense
4/12/2024
Debit
Totals
Credit
113,657.02 11,655.10 18,054.06 3,656.85 2,538.00 1,250.00 13,860.95 3,599.80 18,730.00 5,268.90 33,436.00 9,848.97 1,030.96 304.68 109.20 1,354.08 475.04 7,946.77 270.00 130.00 420.00 13.36 327.60 112,484.00 6,500.00 164,199.44 2,783.47 50.00 89,424.35 3,630.00 27,100.00 1,688.23 685.56 1,896.62 1,545.63 16,580.00 345.00 961.64 195.00 4,196.32 235.00 ----------------- ----------------341,218.80 341,218.80 ================= =================
It's About Time General Journal 04/30/13 Date
Refer.
04/30 Adj.Ent.
Acct.
Title
Debit
6570
Insurance Expense
80.00
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Credit
Comp. Problem 2 - Manual
Page 10
4/12/2024
04/30 Adj.Ent.
1160
Prepaid Insurance
80.00
04/30 Adj.Ent. 04/30 Adj.Ent.
6130 1140
Store Supplies Expense Store Supplies
411.85
04/30 Adj.Ent. 04/30 Adj.Ent.
6550 1150
Office Supplies Expense Office Supplies
468.00
411.85 468.00 -------------- -------------959.85 959.85 ============== ==============
Totals
It's About Time General Journal 04/30/13 Date
Refer.
04/30 Dep.Adj. 04/30 Dep.Adj. 04/30 Dep.Adj. 04/30 Dep.Adj.
Acct.
Title
Debit
6140 6560 1520 1540
Depr. Exp.--Store Eqpt. Depr. Exp.--Office Eqpt. Accum. Depr.--Store Eqpt. Accum. Depr.--Ofc. Eqpt.
293.88 335.35
Totals
Credit
293.88 335.35 -------------- -------------629.23 629.23 ============== ==============
It's About Time Income Statement For Period Ended 04/30/13 Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales Sales Discounts Sales Returns & Allow. Total Operating Revenue
35,608.13 102.64 164,199.44 101.76 -864.99 -2.49 -2,783.47 -1.72 -50.00 -0.14 -50.00 -0.03 ------------- ------------- ------------- ---------34,693.14 100.00 161,365.97 100.00
Cost Cost of Merchandise Sold Total Cost
19,414.75 55.96 89,424.35 55.42 ------------- ------------- ------------- ---------19,414.75 55.96 89,424.35 55.42 ------------- ------------- ------------- ----------
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Comp. Problem 2 - Manual
Page 11
Gross Profit
15,278.39
4/12/2024
44.04
71,941.62
44.58
Operating Expenses Advertising Expense Sales Salaries Expense Store Supplies Expense Depr. Exp.--Store Eqpt. Total Selling Expenses Utilities Expense Telephone Expense Office Salary Expense Office Supplies Expense Depr. Exp.--Office Eqpt. Insurance Expense Payroll Taxes Expense Miscellaneous Expense
3,630.00 2.25 6,775.00 19.53 27,100.00 16.79 411.85 1.19 2,100.08 1.30 293.88 0.85 979.44 0.61 ------------- ------------- ------------- ---------7,480.73 21.56 33,809.52 20.95 403.62 286.35 4,145.00 468.00 335.35 80.00 499.30
1.16 0.83 11.95 1.35 0.97 0.23 1.44
1,896.62 1.18 1,545.63 0.96 16,580.00 10.27 813.00 0.50 1,296.99 0.80 275.00 0.17 4,196.32 2.60 235.00 0.15 ------------- ------------- ------------- ---------Total Administrative Expense 6,217.62 17.92 26,838.56 16.63 ------------- ------------- ------------- ---------Total Operating Expenses 13,698.35 39.48 60,648.08 37.58 ------------- ------------- ------------- ---------Net Income 1,580.04 4.55 11,293.54 7.00 ============= ============= ============= ========== It's About Time Statement of Owner's Equity For Period Ended 04/30/13 Nadine Herzog, Capital (Beg. of Period) Nadine Herzog, Drawing Net Income Nadine Herzog, Capital (End of Period)
112,484.00 -6,500.00 11,293.54 ------------117,277.54 =============
It's About Time Balance Sheet 04/30/13 Assets Cash Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Store Equipment Accum. Depr.--Store Eqpt. Office Equipment Accum. Depr.--Ofc. Eqpt.
113,657.02 11,655.10 18,054.06 3,245.00 2,070.00 1,170.00 13,860.95 -3,893.68 18,730.00 -5,604.25
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Comp. Problem 2 - Manual
Page 12
4/12/2024
------------Total Assets
172,944.20 =============
Liabilities Accounts Payable Sales Tax Payable Emp. Fed. Inc. Tax Pay. Emp. State Inc. Tax Pay. Emp. City Income Tax Pay. Soc. Sec. Tax Pay.--OASDI Medicare Tax Payable--HI Salaries Payable Health Ins. Premiums Pay. Life Ins. Premiums Pay. Credit Union Deduct. Pay. Federal Unemp. Tax Pay. State Unemp. Tax Payable
33,436.00 9,848.97 1,030.96 304.68 109.20 1,354.08 475.04 7,946.77 270.00 130.00 420.00 13.36 327.60 -------------
Total Liabilities
55,666.66
Owner's Equity Nadine Herzog, Capital Nadine Herzog, Drawing Net Income Total Owner's Equity Total Liabilities & Equity
112,484.00 -6,500.00 11,293.54 ------------117,277.54 ------------172,944.20 =============
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Comp. Problem 2 - Manual
Page 13
4/12/2024
AUDIT QUESTIONS - COMPREHENSIVE PROBLEM 2 1. Purchase order register = $2,778.00 Purchase invoice register = $773.65 Sales invoice register = $35,558.13 2. Total debits and credits = $19,550.98 3. 47 (48 items - 1 returned item) 4. 6120 (sales salaries) 5. $4,885.32 6. $2,708.16 7. $32,687.50 8. $205.31 9. $275.50 10. Total debits and credits = $959.85 11. Total debits and credits = $629.23 12. 44.04% 13. $11,293.54 14. $117,277.54 15. $172,944.20 16. $55,666.66
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Comp. Problem 3 - Manual
Page 1
4/12/2024
COMPREHENSIVE PROBLEM 3 Gomez Garage Door Co. Purchase Order Register 12/31/-P.O. Number
P.O. Date
Vendor Name
1248 1249
12/03/-12/29/--
Schaefer Bros. Mfg. Spencer Industries
P.O. Amount 3,180.00 11,940.00 ------------15,120.00 =============
Total Amount
Gomez Garage Door Co. Purchase Invoice Register 12/31/-Invoice Number
Invoice Date
Vendor Name
Invoice Amount
2436 2437 R2396
12/15/-12/22/-12/05/--
Delaney Manufacturing Spencer Industries Henderson Company
13,545.00 23,550.00 -1,003.00 ------------36,092.00 =============
Total Amount
Gomez Garage Door Co. Sales Invoice Register 12/31/-Invoice Number
Invoice Date
Customer Name
5437 5438 5439 5440 5441 R5371 R5388
12/02/-12/05/-12/15/-12/20/-12/30/-12/04/-12/09/--
PK Builder Supply Co. Preston Construction Schomer Construction Atwood Building Center Frentz Remodeling Co. Currie Builders, Inc. Renner Garage Doors Total Amount
Invoice Amount
Sales Tax
20,175.00 19,858.00 12,225.00 18,828.00 14,681.00 -669.00 -1,250.00 ----------- ----------83,848.00 =========== ===========
Comp. Problem 3 - Manual
Page 2
4/12/2024
Gomez Garage Door Co. Inventory List 12/31/-Stock No. Description
Unit On Meas. Hand
100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250
EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA
Premium 9x7 Panel Premium 9x7 Wood Premium 16x7 Panel Premium 16x7 Wood Std. 9x7 Ins. Panel Std. 9x7 Non Ins. Panel Std. 9x7 Non Ins. Wood Std. 16x7 Ins. Panel Std. 16x7 Non Ins. Panel Std. 16x7 Non Ins. Wood Arrow 16x9 Panel Steel Arrow 22x10 Panel Steel Kat 16x9 Ribbed Steel Kat 22x10 Ribbed Steel Pro 16x9 Sheet Metal Pro 22x10 Sheet Metal
On Order
Reorder Point
12 0 0 0 0 0 0 0 0 0 0 0 12 0 25 0
40 35 30 25 45 45 25 35 45 30 40 25 30 20 40 35
41 53 33 38 57 59 26 56 49 48 56 26 30 23 35 30
Last Cost
Retail Price
265.00 312.50 465.00 575.00 225.00 189.00 290.00 390.00 335.00 499.00 785.00 1099.00 995.00 1250.00 625.00 895.00
525.00 625.00 925.00 1150.00 445.00 379.00 579.00 779.00 669.00 995.00 1569.00 2195.00 1995.00 2495.00 1250.00 1789.00
Gomez Garage Door Co. Inventory Transactions 12/31/-Date
Description
Inv./ P.O.
Sales Invoices 12/02 Premium 16x7 Wood 5437 Arrow 22x10 Panel Steel 12/05 Std. 16x7 Non Ins. Pane5438 Pro 22x10 Sheet Metal Kat 16x9 Ribbed Steel 12/15 Premium 16x7 Panel 5439 Std. 9x7 Ins. Panel 12/20 Arrow 16x9 Panel Steel 5440 12/30 Premium 16x7 Panel 5441 Std. 9x7 Non Ins. Panel Std. 16x7 Non Ins. Pane 12/04 Std. 16x7 Non Ins. PaneR5371 12/09 Pro 16x9 Sheet Metal R5388 Purchase Orders 12/03 Premium 9x7 Panel 12/29 Kat 16x9 Ribbed Steel
1248 1249
Purchase Invoices 12/15 Std. 9x7 Ins. Panel 2436 Std. 9x7 Non Ins. Panel 12/22 Arrow 16x9 Panel Steel 2437 12/05 Std. 9x7 Non Ins. PanelR2396 Pro 16x9 Sheet Metal
Quantity Sold
Selling Price
8 5 5 7 2 6 15 12 7 4 10 -1 -1
1,150.00 2,195.00 669.00 1,789.00 1,995.00 925.00 445.00 1,569.00 925.00 379.00 669.00 669.00 1,250.00
Quan. Ord.
Quan. Recd.
Cost Price
35 30 30 -2 -1
225.00 189.00 785.00 189.00 625.00
12 12
Comp. Problem 3 - Manual
Page 3
4/12/2024
--------79 =========
Totals
------- ------24 92 ======= =======
Gomez Garage Door Co. Inventory Valuation (Average Cost) 12/31/-Stock No.
Description
100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250
Premium 9x7 Panel Premium 9x7 Wood Premium 16x7 Panel Premium 16x7 Wood Std. 9x7 Ins. Panel Std. 9x7 Non Ins. Panel Std. 9x7 Non Ins. Wood Std. 16x7 Ins. Panel Std. 16x7 Non Ins. Pane Std. 16x7 Non Ins. Wood Arrow 16x9 Panel Steel Arrow 22x10 Panel Steel Kat 16x9 Ribbed Steel Kat 22x10 Ribbed Steel Pro 16x9 Sheet Metal Pro 22x10 Sheet Metal
On Hand
Cost
41 53 33 38 57 59 26 56 49 48 56 26 30 23 35 30
265.00 312.50 465.00 575.00 225.00 189.00 290.00 390.00 335.00 499.00 785.00 1,099.00 995.00 1,250.00 625.00 895.00
Total Inventory Value
Value At Cost
Retail Price
Value At Retail
10,865.00 16,562.50 15,345.00 21,850.00 12,825.00 11,151.00 7,540.00 21,840.00 16,415.00 23,952.00 43,960.00 28,574.00 29,850.00 28,750.00 21,875.00 26,850.00 ---------338,204.50 ==========
525.00 625.00 925.00 1,150.00 445.00 379.00 579.00 779.00 669.00 995.00 1,569.00 2,195.00 1,995.00 2,495.00 1,250.00 1,789.00
21,525.00 33,125.00 30,525.00 43,700.00 25,365.00 22,361.00 15,054.00 43,624.00 32,781.00 47,760.00 87,864.00 57,070.00 59,850.00 57,385.00 43,750.00 53,670.00 ----------675,409.00 ===========
Gomez Garage Door Co. General Journal 12/31/-Date
Refer.
Acct.
Title
Debit
12/04 R5371 12/04 R5371
4120 1120
Sales Ret. & All.--Res. AR/Currie Builders, Inc.
669.00
12/05 R2396 12/05 R2396 12/05 R2396
2110 5120 5220
AP/Henderson Company Prch. Ret. & All.--Res. Prch. Ret. & All.--Com.
1,003.00
12/09 R5388 12/09 R5388
4220 1120
Sales Ret. & All.--Com. AR/Renner Garage Doors
1,250.00
Totals
Credit 669.00 378.00 625.00
1,250.00 -------------- -------------2,922.00 2,922.00 ============== ==============
Gomez Garage Door Co. Purchases Journal 12/31/-Date
Inv. No.
Acct.
Title
Debit
Credit
Comp. Problem 3 - Manual
Page 4
4/12/2024
12/15 2436 12/15 2436
5110 2110
Purchases--Residential AP/Delaney Manufacturing
13,545.00
12/22 2437 12/22 2437
5210 2110
Purchases--Commercial AP/Spencer Industries
23,550.00
Totals
13,545.00 23,550.00 -------------- -------------37,095.00 37,095.00 ============== ==============
Gomez Garage Door Co. Cash Payments Journal 12/31/-Date
Ck. No.
Acct.
Title
Debit
12/02 6852 12/02 6852
6150 1110
Heating & Lighting Exp. Cash
337.82
12/05 6853 12/05 6853
6160 1110
Telephone Expense Cash
602.36
12/11 6854 12/11 6854
2110 1110
AP/Henderson Company Cash
29,884.98
12/19 6855 12/19 6855 12/19 6855
2110 5130 1110
AP/Delaney Manufacturing Prch. Discounts--Res. Cash
13,545.00
12/21 6856 12/21 6856
6110 1110
Advertising Expense Cash
3,000.00
12/27 6857 12/27 6857 12/27 6857
2110 5230 1110
AP/Spencer Industries Prch. Discounts--Com. Cash
23,550.00
12/30 6858 12/30 6858
6170 1110
Salary Expense Cash
10,487.00
12/30 6859 12/30 6859
6140 1110
Rent Expense Cash
2,500.00
12/31 6860 12/31 6860
2120 1110
Sales Tax Payable Cash Totals
Credit 337.82 602.36 29,884.98 270.90 13,274.10 3,000.00 471.00 23,079.00 10,487.00 2,500.00
224.30 224.30 -------------- -------------84,131.46 84,131.46 ============== ==============
Gomez Garage Door Co. Sales Journal 12/31/-Date
Inv. No.
12/02 5437
Acct.
Title
1120
AR/PK Builder Supply Co.
Debit 20,175.00
Credit
Comp. Problem 3 - Manual
Page 5
4/12/2024
12/02 5437 12/02 5437
4110 4210
Sales--Residential Sales--Commercial
12/05 5438 12/05 5438 12/05 5438
1120 4110 4210
AR/Preston Construction Sales--Residential Sales--Commercial
19,858.00
12/15 5439 12/15 5439
1120 4110
AR/Schomer Construction Sales--Residential
12,225.00
12/20 5440 12/20 5440
1120 4210
AR/Atwood Building Center Sales--Commercial
18,828.00
12/30 5441 12/30 5441
1120 4110
AR/Frentz Remodeling Co. Sales--Residential
14,681.00
Totals
9,200.00 10,975.00 3,345.00 16,513.00 12,225.00 18,828.00 14,681.00 -------------- -------------85,767.00 85,767.00 ============== ==============
Gomez Garage Door Co. Cash Receipts Journal 12/31/-Date
Refer.
Acct.
Title
12/06 5371 12/06 5371
1110 1120
Cash AR/Currie Builders, Inc.
26,004.72
12/07 5368 12/07 5368
1110 1120
Cash AR/Atwood Building Center
9,202.83
12/09 5377 12/09 5377
1110 1120
Cash AR/Dobson Contractors, Inc
13,945.97
12/10 5370 12/10 5370
1110 1120
Cash AR/Owens Building Supplies
10,199.82
12/14 5437 12/14 5437 12/14 5437 12/14 5437
1110 4130 4230 1120
Cash Sales Discounts--Res. Sales Discounts--Com. AR/PK Builder Supply Co.
19,771.50 184.00 219.50
12/21 5438 12/21 5438 12/21 5438 12/21 5438
1110 4130 4230 1120
Cash Sales Discounts--Res. Sales Discounts--Com. AR/Preston Construction
19,460.84 317.36 79.80
12/28 5439 12/28 5439 12/28 5439
1110 4130 1120
Cash Sales Discounts--Res. AR/Schomer Construction
11,980.50 244.50
12/30 5440 12/30 5440 12/30 5440
1110 4230 1120
Cash Sales Discounts--Com. AR/Atwood Building Center
18,451.44 376.56
Totals
Debit
Credit 26,004.72 9,202.83 13,945.97 10,199.82
20,175.00
19,858.00
12,225.00
18,828.00 -------------- -------------130,439.34 130,439.34
Comp. Problem 3 - Manual
Page 6
4/12/2024
============== ============== Gomez Garage Door Co. Trial Balance 12/31/-Acct. Number
Account Title
1110 1120 1130 1140 1160 1161 1170 1180 1510 1511 1520 1521 1530 1531 2110 2130 2140 2150 3110 3120 4110 4120 4130 4210 4220 4230 5110 5120 5130 5210 5220 5230 6110 6130 6140 6150 6160 6170 6180 6210 6220 6230 6240 7110 8110 9110
Cash Accounts Receivable Allow. for Doubt. Accts. Interest Receivable Merch. Inv.--Residential Merch. Inv.--Commercial Supplies Prepaid Insurance Automobiles Accum. Deprec. Autos Office Equipment Accum. Deprec. Office Eq. Warehouse Equipment Accum. Deprec. Wrhs. Eq. Accounts Payable Salaries Payable Corporate Income Tax Pay. Interest Payable Capital Stock Retained Earnings Sales--Residential Sales Ret. & All.--Res. Sales Discounts--Res. Sales--Commercial Sales Ret. & All.--Com. Sales Discounts--Com. Purchases--Residential Prch. Ret. & All.--Res. Prch. Discounts--Res. Purchases--Commercial Prch. Ret. & All.--Com. Prch. Discounts--Com. Advertising Expense Insurance Expense Rent Expense Heating & Lighting Exp. Telephone Expense Salary Expense Supplies Expense Deprec. Exp. Automobiles Deprec. Exp. Office Eq. Deprec. Exp. Wrhs. Eq. Uncollectible Accts. Exp. Interest Income Interest Expense Corporate Income Tax Totals
Debit
Credit
160,319.43 47,370.89 848.81 106.43 164,644.50 179,479.00 625.00 4,047.28 32,154.66 2,476.60 16,744.33 736.48 19,662.33 700.66 12,525.90 1,815.30 2,900.00 184.23 415,000.00 85,721.48 463,345.00 4,448.09 4,868.11 594,604.00 4,455.84 5,544.38 285,067.29 5,306.66 4,225.06 430,329.33 7,522.36 5,318.81 52,347.34 1,720.80 32,200.00 3,602.87 5,699.88 118,413.41 1,571.75 5,495.47 1,556.30 1,655.75 2,750.00 1,165.03 2,015.92 15,500.00 ----------------- ----------------1,604,396.38 1,604,396.38
Comp. Problem 3 - Manual
Page 7
4/12/2024
================= ================= Gomez Garage Door Co. Schedule of Accounts Payable 12/31/-Name
Balance
Patterson Mfg., Inc. Sheldon Office Products Thorson Industries
9,120.00 506.00 2,899.90 ----------------12,525.90 =================
Total
Gomez Garage Door Co. Schedule of Accounts Receivable 12/31/-Name
Balance
Frentz Remodeling Co. Renner Garage Doors
32,281.79 15,089.10 ----------------47,370.89 =================
Total
Gomez Garage Door Co. General Journal 12/31/-Date
Refer.
Acct.
Title
Debit
12/31 Adj.Ent. 12/31 Adj.Ent.
3150 1160
Income Summ.--Residential Merch. Inv.--Residential
5,706.50
12/31 Adj.Ent. 12/31 Adj.Ent.
3160 1161
Income Summ.--Commercial Merch. Inv.--Commercial
1,479.00
12/31 Adj.Ent. 12/31 Adj.Ent.
6130 1180
Insurance Expense Prepaid Insurance
150.00
12/31 Adj.Ent. 12/31 Adj.Ent.
6180 1170
Supplies Expense Supplies
100.00
12/31 Adj.Ent. 12/31 Adj.Ent.
6210 1511
Deprec. Exp. Automobiles Accum. Deprec. Autos
487.62
12/31 Adj.Ent. 12/31 Adj.Ent.
6220 1521
Deprec. Exp. Office Eq. Accum. Deprec. Office Eq.
139.25
Credit 5,706.50 1,479.00 150.00 100.00 487.62 139.25
Comp. Problem 3 - Manual
Page 8
4/12/2024
12/31 Adj.Ent. 12/31 Adj.Ent.
6230 1531
Deprec. Exp. Wrhs. Eq. Accum. Deprec. Wrhs. Eq.
168.92
12/31 Adj.Ent. 12/31 Adj.Ent.
6240 1130
Uncollectible Accts. Exp. Allow. for Doubt. Accts.
225.00
12/31 Adj.Ent. 12/31 Adj.Ent.
1140 7110
Interest Receivable Interest Income
147.30
12/31 Adj.Ent. 12/31 Adj.Ent.
8110 2150
Interest Expense Interest Payable
174.82
12/31 Adj.Ent. 12/31 Adj.Ent.
6170 2130
Salary Expense Salaries Payable
979.13
12/31 Adj.Ent. 12/31 Adj.Ent.
9110 2140
Corporate Income Tax Corporate Income Tax Pay. Totals
168.92 225.00 147.30 174.82 979.13 1,200.00 1,200.00 -------------- -------------10,957.54 10,957.54 ============== ==============
Gomez Garage Door Co. Gross Profit Statement Department 1 For Year Ended 12/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales--Residential Sales Ret. & All.--Res. Sales Discounts--Res. Total Operating Revenue
39,451.00 103.72 463,345.00 102.05 -669.00 -1.76 -4,448.09 -0.98 -745.86 -1.96 -4,868.11 -1.07 ------------- ------------- ------------- ---------38,036.14 100.00 454,028.80 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Residential Prch. Ret. & All.--Res. Prch. Discounts--Res.
164,644.50 432.86 164,644.50 36.26 13,545.00 35.61 285,067.29 62.79 -378.00 -0.99 -5,306.66 -1.17 -270.90 -0.71 -4,225.06 -0.93 ------------- ------------- ------------- ---------Merchandise Available for Sa 177,540.60 466.77 440,180.07 96.95 Less Ending Inventory -158,938.00 -417.86 -158,938.00 -35.01 ------------- ------------- ------------- ---------Cost of Merchandise Sold 18,602.60 48.91 281,242.07 61.94 ------------- ------------- ------------- ---------Gross Profit 19,433.54 51.09 172,786.73 38.06 ============= ============= ============= ========== Gomez Garage Door Co. Gross Profit Statement Department 2 For Year Ended 12/31/--
Comp. Problem 3 - Manual
Page 9
Monthly Amount
4/12/2024
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales--Commercial Sales Ret. & All.--Com. Sales Discounts--Com.
46,316.00 104.34 594,604.00 101.71 -1,250.00 -2.82 -4,455.84 -0.76 -675.86 -1.52 -5,544.38 -0.95 ------------- ------------- ------------- ---------44,390.14 100.00 584,603.78 100.00
Total Operating Revenue Cost of Merchandise Sold Beginning Inventory Purchases--Commercial Prch. Ret. & All.--Com. Prch. Discounts--Com.
179,479.00 404.32 179,479.00 30.70 23,550.00 53.05 430,329.33 73.61 -625.00 -1.41 -7,522.36 -1.29 -471.00 -1.06 -5,318.81 -0.91 ------------- ------------- ------------- ---------Merchandise Available for Sa 201,933.00 454.91 596,967.16 102.11 Less Ending Inventory -178,000.00 -400.99 -178,000.00 -30.45 ------------- ------------- ------------- ---------Cost of Merchandise Sold 23,933.00 53.92 418,967.16 71.67 ------------- ------------- ------------- ---------Gross Profit 20,457.14 46.08 165,636.62 28.33 ============= ============= ============= ========== Gomez Garage Door Co. Consolidated Gross Profit Statement For Year Ended 12/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales--Residential Sales Ret. & All.--Res. Sales Discounts--Res. Total Revenue--Residential Sales--Commercial Sales Ret. & All.--Com. Sales Discounts--Com. Total Revenue--Commercial Total Operating Revenue
39,451.00 47.86 463,345.00 44.61 -669.00 -0.81 -4,448.09 -0.43 -745.86 -0.90 -4,868.11 -0.47 ------------- ------------- ------------- ---------38,036.14 46.15 454,028.80 43.71 46,316.00 56.19 594,604.00 57.25 -1,250.00 -1.52 -4,455.84 -0.43 -675.86 -0.82 -5,544.38 -0.53 ------------- ------------- ------------- ---------44,390.14 53.85 584,603.78 56.29 ------------- ------------- ------------- ---------82,426.28 100.00 1,038,632.58 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Residential Prch. Ret. & All.--Res. Prch. Discounts--Res.
344,123.50 13,545.00 -378.00 -270.90
417.49 16.43 -0.46 -0.33
344,123.50 285,067.29 -5,306.66 -4,225.06
33.13 27.45 -0.51 -0.41
Comp. Problem 3 - Manual
Page 10
4/12/2024
Purchases--Commercial Prch. Ret. & All.--Com. Prch. Discounts--Com.
23,550.00 28.57 430,329.33 41.43 -625.00 -0.76 -7,522.36 -0.72 -471.00 -0.57 -5,318.81 -0.51 ------------- ------------- ------------- ---------Merchandise Available for Sa 379,473.60 460.38 1,037,147.23 99.86 Less Ending Inventory -336,938.00 -408.78 -336,938.00 -32.44 ------------- ------------- ------------- ---------Cost of Merchandise Sold 42,535.60 51.60 700,209.23 67.42 ------------- ------------- ------------- ---------Gross Profit 39,890.68 48.40 338,423.35 32.58 ============= ============= ============= ========== Gomez Garage Door Co. Income Statement For Year Ended 12/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales--Residential Sales Ret. & All.--Res. Sales Discounts--Res. Total Revenue--Residential Sales--Commercial Sales Ret. & All.--Com. Sales Discounts--Com. Total Revenue--Commercial Total Operating Revenue
39,451.00 47.86 463,345.00 44.61 -669.00 -0.81 -4,448.09 -0.43 -745.86 -0.90 -4,868.11 -0.47 ------------- ------------- ------------- ---------38,036.14 46.15 454,028.80 43.71 46,316.00 56.19 594,604.00 57.25 -1,250.00 -1.52 -4,455.84 -0.43 -675.86 -0.82 -5,544.38 -0.53 ------------- ------------- ------------- ---------44,390.14 53.85 584,603.78 56.29 ------------- ------------- ------------- ---------82,426.28 100.00 1,038,632.58 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Residential Prch. Ret. & All.--Res. Prch. Discounts--Res. Purchases--Commercial Prch. Ret. & All.--Com. Prch. Discounts--Com.
344,123.50 417.49 344,123.50 33.13 13,545.00 16.43 285,067.29 27.45 -378.00 -0.46 -5,306.66 -0.51 -270.90 -0.33 -4,225.06 -0.41 23,550.00 28.57 430,329.33 41.43 -625.00 -0.76 -7,522.36 -0.72 -471.00 -0.57 -5,318.81 -0.51 ------------- ------------- ------------- ---------Merchandise Available for Sa 379,473.60 460.38 1,037,147.23 99.86 Less Ending Inventory -336,938.00 -408.78 -336,938.00 -32.44 ------------- ------------- ------------- ---------Cost of Merchandise Sold 42,535.60 51.60 700,209.23 67.42 ------------- ------------- ------------- ---------Gross Profit 39,890.68 48.40 338,423.35 32.58 Operating Expenses Advertising Expense Insurance Expense
3,000.00 150.00
3.64 0.18
52,347.34 1,870.80
5.04 0.18
Comp. Problem 3 - Manual
Page 11
Rent Expense Heating & Lighting Exp. Telephone Expense Salary Expense Supplies Expense Deprec. Exp. Automobiles Deprec. Exp. Office Eq. Deprec. Exp. Wrhs. Eq. Uncollectible Accts. Exp. Total Operating Expenses Net Income from Operations
4/12/2024
2,500.00 3.03 32,200.00 3.10 337.82 0.41 3,602.87 0.35 602.36 0.73 5,699.88 0.55 11,466.13 13.91 119,392.54 11.50 100.00 0.12 1,671.75 0.16 487.62 0.59 5,983.09 0.58 139.25 0.17 1,695.55 0.16 168.92 0.20 1,824.67 0.18 225.00 0.27 2,975.00 0.29 ------------- ------------- ------------- ---------19,177.10 23.27 229,263.49 22.07 ------------- ------------- ------------- ---------20,713.58 25.13 109,159.86 10.51
Other Revenue Interest Income
147.30
0.18
1,312.33
0.13
Other Expense Interest Expense
174.82 0.21 2,190.74 0.21 ------------- ------------- ------------- ---------Net Income before Income Tax 20,686.06 25.10 108,281.45 10.43 Income Tax Corporate Income Tax Net Income after Income Tax
1,200.00 1.46 16,700.00 1.61 ------------- ------------- ------------- ---------19,486.06 23.64 91,581.45 8.82 ============= ============= ============= ==========
Gomez Garage Door Co. Retained Earnings Statement For Year Ended 12/31/-Retained Earnings (Beg. of Period) Net Income Retained Earnings (End of Period) Gomez Garage Door Co. Balance Sheet 12/31/-Assets Cash Accounts Receivable Allow. for Doubt. Accts. Interest Receivable
160,319.43 47,370.89 -1,073.81 253.73
85,721.48 91,581.45 ------------177,302.93 =============
Comp. Problem 3 - Manual
Page 12
Merch. Inv.--Residential Merch. Inv.--Commercial Supplies Prepaid Insurance Total Current Assets Automobiles Accum. Deprec. Autos Office Equipment Accum. Deprec. Office Eq. Warehouse Equipment Accum. Deprec. Wrhs. Eq. Total Plant Assets
4/12/2024
158,938.00 178,000.00 525.00 3,897.28 ------------548,230.52 32,154.66 -2,964.22 16,744.33 -875.73 19,662.33 -869.58 ------------63,851.79 -------------
Total Assets
612,082.31 =============
Liabilities Accounts Payable Salaries Payable Corporate Income Tax Pay. Interest Payable Total Current Liabilities
12,525.90 2,794.43 4,100.00 359.05 ------------19,779.38 -------------
Total Liabilities
19,779.38
Stockholders' Equity Capital Stock Retained Earnings Net Income
415,000.00 85,721.48 91,581.45 -------------
Total Stockholders' Equity
592,302.93 ------------612,082.31 =============
Total Liabilities & Equity
Gomez Garage Door Co. Income Stmt. Horizontal Analysis For Years Ended 12/31/-- and 12/31/-Current Period
Previous Period
Change
Percent
Operating Revenue Sales--Residential Sales Ret. & All.--Res. Sales Discounts--Res. Total Revenue--Residential
463,345.00 482,516.84 -19,171.84 -3.97 -4,448.09 -3,255.86 -1,192.23 36.62 -4,868.11 -4,810.86 -57.25 1.19 ------------- ------------- ------------- ---------454,028.80 474,450.12 -20,421.32 -4.30
Comp. Problem 3 - Manual
Sales--Commercial Sales Ret. & All.--Com. Sales Discounts--Com. Total Revenue--Commercial Total Operating Revenue
Page 13
4/12/2024
594,604.00 585,429.51 9,174.49 1.57 -4,455.84 -5,103.94 648.10 -12.70 -5,544.38 -5,750.33 205.95 -3.58 ------------- ------------- ------------- ---------584,603.78 574,575.24 10,028.54 1.75 ------------- ------------- ------------- ---------1,038,632.58 1,049,025.36 -10,392.78 -0.99
Cost of Merchandise Sold Beginning Inventory Purchases--Residential Prch. Ret. & All.--Res. Prch. Discounts--Res. Purchases--Commercial Prch. Ret. & All.--Com. Prch. Discounts--Com.
344,123.50 355,327.27 -11,203.77 -3.15 285,067.29 308,462.80 -23,395.51 -7.58 -5,306.66 -5,668.13 361.47 -6.38 -4,225.06 -5,283.65 1,058.59 -20.04 430,329.33 422,215.27 8,114.06 1.92 -7,522.36 -6,729.62 -792.74 11.78 -5,318.81 -5,834.25 515.44 -8.83 ------------- ------------- ------------- ---------Merchandise Available for Sa 1,037,147.23 1,062,489.69 -25,342.46 -2.39 Less Ending Inventory -336,938.00 -355,327.27 18,389.27 -5.18 ------------- ------------- ------------- ---------Cost of Merchandise Sold 700,209.23 707,162.42 -6,953.19 -0.98 ------------- ------------- ------------- ---------Gross Profit 338,423.35 341,862.94 -3,439.59 -1.01 Operating Expenses Advertising Expense Insurance Expense Rent Expense Heating & Lighting Exp. Telephone Expense Salary Expense Supplies Expense Deprec. Exp. Automobiles Deprec. Exp. Office Eq. Deprec. Exp. Wrhs. Eq. Uncollectible Accts. Exp. Total Operating Expenses Net Income from Operations
52,347.34 49,685.56 2,661.78 5.36 1,870.80 2,025.86 -155.06 -7.65 32,200.00 32,233.69 -33.69 -0.10 3,602.87 3,353.49 249.38 7.44 5,699.88 5,423.02 276.86 5.11 119,392.54 113,689.43 5,703.11 5.02 1,671.75 1,020.54 651.21 63.81 5,983.09 5,837.16 145.93 2.50 1,695.55 1,603.47 92.08 5.74 1,824.67 1,334.86 489.81 36.69 2,975.00 2,400.00 575.00 23.96 ------------- ------------- ------------- ---------229,263.49 218,607.08 10,656.41 4.87 ------------- ------------- ------------- ---------109,159.86 123,255.86 -14,096.00 -11.44
Other Revenue Interest Income
1,312.33
791.18
521.15
65.87
Other Expense Interest Expense
2,190.74 2,177.20 13.54 0.62 ------------- ------------- ------------- ---------Net Income before Income Tax 108,281.45 121,869.84 -13,588.39 -11.15 Income Tax Corporate Income Tax
16,700.00 7,206.00 9,494.00 131.75 ------------- ------------- ------------- ----------
Comp. Problem 3 - Manual
Page 14
Net Income after Income Tax
4/12/2024
91,581.45 114,663.84 -23,082.39 -20.13 ============= ============= ============= ==========
Gomez Garage Door Co. Income Stmt. Vertical Analysis For Years Ended 12/31/-- and 12/31/-Current Amount
Current Percent
Previous Amount
Previous Percent
Operating Revenue Sales--Residential Sales Ret. & All.--Res. Sales Discounts--Res. Total Revenue--Residential Sales--Commercial Sales Ret. & All.--Com. Sales Discounts--Com. Total Revenue--Commercial Total Operating Revenue
463,345.00 44.61 482,516.84 46.00 -4,448.09 -0.43 -3,255.86 -0.31 -4,868.11 -0.47 -4,810.86 -0.46 ------------- ------------- ------------- ---------454,028.80 43.71 474,450.12 45.23 594,604.00 57.25 585,429.51 55.81 -4,455.84 -0.43 -5,103.94 -0.49 -5,544.38 -0.53 -5,750.33 -0.55 ------------- ------------- ------------- ---------584,603.78 56.29 574,575.24 54.77 ------------- ------------- ------------- ---------1,038,632.58 100.00 1,049,025.36 100.00
Cost of Merchandise Sold Beginning Inventory Purchases--Residential Prch. Ret. & All.--Res. Prch. Discounts--Res. Purchases--Commercial Prch. Ret. & All.--Com. Prch. Discounts--Com.
344,123.50 33.13 355,327.27 33.87 285,067.29 27.45 308,462.80 29.40 -5,306.66 -0.51 -5,668.13 -0.54 -4,225.06 -0.41 -5,283.65 -0.50 430,329.33 41.43 422,215.27 40.25 -7,522.36 -0.72 -6,729.62 -0.64 -5,318.81 -0.51 -5,834.25 -0.56 ------------- ------------- ------------- ---------Merchandise Available for Sa 1,037,147.23 99.86 1,062,489.69 101.28 Less Ending Inventory -336,938.00 -32.44 -355,327.27 -33.87 ------------- ------------- ------------- ---------Cost of Merchandise Sold 700,209.23 67.42 707,162.42 67.41 ------------- ------------- ------------- ---------Gross Profit 338,423.35 32.58 341,862.94 32.59 Operating Expenses Advertising Expense Insurance Expense Rent Expense Heating & Lighting Exp. Telephone Expense Salary Expense Supplies Expense Deprec. Exp. Automobiles Deprec. Exp. Office Eq. Deprec. Exp. Wrhs. Eq. Uncollectible Accts. Exp.
52,347.34 1,870.80 32,200.00 3,602.87 5,699.88 119,392.54 1,671.75 5,983.09 1,695.55 1,824.67 2,975.00
5.04 0.18 3.10 0.35 0.55 11.50 0.16 0.58 0.16 0.18 0.29
49,685.56 2,025.86 32,233.69 3,353.49 5,423.02 113,689.43 1,020.54 5,837.16 1,603.47 1,334.86 2,400.00
4.74 0.19 3.07 0.32 0.52 10.84 0.10 0.56 0.15 0.13 0.23
Comp. Problem 3 - Manual
Page 15
Total Operating Expenses Net Income from Operations
4/12/2024
------------- ------------- ------------- ---------229,263.49 22.07 218,607.08 20.84 ------------- ------------- ------------- ---------109,159.86 10.51 123,255.86 11.75
Other Revenue Interest Income
1,312.33
0.13
791.18
0.08
Other Expense Interest Expense
2,190.74 0.21 2,177.20 0.21 ------------- ------------- ------------- ---------Net Income before Income Tax 108,281.45 10.43 121,869.84 11.62 Income Tax Corporate Income Tax Net Income after Income Tax
16,700.00 1.61 7,206.00 0.69 ------------- ------------- ------------- ---------91,581.45 8.82 114,663.84 10.93 ============= ============= ============= ==========
Gomez Garage Door Co. Balance Sheet Horizontal Analysis For Years Ended 12/31/-- and 12/31/-Current Period
Previous Period
Change
Percent
Assets Cash Accounts Receivable Allow. for Doubt. Accts. Interest Receivable Merch. Inv.--Residential Merch. Inv.--Commercial Supplies Prepaid Insurance Total Current Assets Automobiles Accum. Deprec. Autos Office Equipment Accum. Deprec. Office Eq. Warehouse Equipment Accum. Deprec. Wrhs. Eq. Total Plant Assets Total Assets Liabilities
160,319.43 100,011.87 60,307.56 60.30 47,370.89 72,156.67 -24,785.78 -34.35 -1,073.81 -1,434.35 360.54 -25.14 253.73 92.00 161.73 175.79 158,938.00 170,216.23 -11,278.23 -6.63 178,000.00 185,111.04 -7,111.04 -3.84 525.00 706.42 -181.42 -25.68 3,897.28 3,802.28 95.00 2.50 ------------- ------------- ------------- ---------548,230.52 530,662.16 17,568.36 3.31 32,154.66 32,154.66 -2,964.22 -1,977.64 -986.58 49.89 16,744.33 16,314.33 430.00 2.64 -875.73 -595.18 -280.55 47.14 19,662.33 19,662.33 -869.58 -550.41 -319.17 57.99 ------------- ------------- ------------- ---------63,851.79 65,008.09 -1,156.30 -1.78 ------------- ------------- ------------- ---------612,082.31 595,670.25 16,412.06 2.76 ============= ============= ============= ==========
Comp. Problem 3 - Manual
Page 16
Accounts Payable Sales Tax Payable Salaries Payable Corporate Income Tax Pay. Interest Payable
12,525.90
Total Current Liabilities Total Liabilities
4/12/2024
31,689.87 -19,163.97 -60.47 122.31 -122.31 -100.00 2,794.43 1,977.25 817.18 41.33 4,100.00 500.00 3,600.00 720.00 359.05 163.00 196.05 120.28 ------------- ------------- ------------- ---------19,779.38 34,452.43 -14,673.05 -42.59 ------------- ------------- ------------- ---------19,779.38 34,452.43 -14,673.05 -42.59
Stockholders' Equity Capital Stock Retained Earnings Net Income Total Stockholders' Equity Total Liabilities & Equity
415,000.00 300,000.00 115,000.00 38.33 85,721.48 61,370.32 24,351.16 39.68 91,581.45 114,663.84 -23,082.39 -20.13 ------------- ------------- ------------- ---------592,302.93 476,034.16 116,268.77 24.42 ------------- ------------- ------------- ---------612,082.31 510,486.59 101,595.72 19.90 ============= ============= ============= ==========
Gomez Garage Door Co. Balance Sheet Vertical Analysis For Years Ended 12/31/-- and 12/31/-Current Amount
Current Percent
Previous Amount
Previous Percent
Assets Cash Accounts Receivable Allow. for Doubt. Accts. Interest Receivable Merch. Inv.--Residential Merch. Inv.--Commercial Supplies Prepaid Insurance Total Current Assets Automobiles Accum. Deprec. Autos Office Equipment Accum. Deprec. Office Eq. Warehouse Equipment Accum. Deprec. Wrhs. Eq. Total Plant Assets Total Assets
160,319.43 26.19 100,011.87 16.79 47,370.89 7.74 72,156.67 12.11 -1,073.81 -0.18 -1,434.35 -0.24 253.73 0.04 92.00 0.02 158,938.00 25.97 170,216.23 28.58 178,000.00 29.08 185,111.04 31.08 525.00 0.09 706.42 0.12 3,897.28 0.64 3,802.28 0.64 ------------- ------------- ------------- ---------548,230.52 89.57 530,662.16 89.09 32,154.66 5.25 32,154.66 5.40 -2,964.22 -0.48 -1,977.64 -0.33 16,744.33 2.74 16,314.33 2.74 -875.73 -0.14 -595.18 -0.10 19,662.33 3.21 19,662.33 3.30 -869.58 -0.14 -550.41 -0.09 ------------- ------------- ------------- ---------63,851.79 10.43 65,008.09 10.91 ------------- ------------- ------------- ---------612,082.31 100.00 595,670.25 100.00 ============= ============= ============= ==========
Liabilities Accounts Payable
12,525.90
2.05
31,689.87
5.32
Comp. Problem 3 - Manual
Page 17
Sales Tax Payable Salaries Payable Corporate Income Tax Pay. Interest Payable Total Current Liabilities Total Liabilities
4/12/2024
122.31 0.02 2,794.43 0.46 1,977.25 0.33 4,100.00 0.67 500.00 0.08 359.05 0.06 163.00 0.03 ------------- ------------- ------------- ---------19,779.38 3.23 34,452.43 5.78 ------------- ------------- ------------- ---------19,779.38 3.23 34,452.43 5.78
Stockholders' Equity Capital Stock Retained Earnings Net Income Total Stockholders' Equity Total Liabilities & Equity
415,000.00 67.80 300,000.00 50.36 85,721.48 14.00 61,370.32 10.30 91,581.45 14.96 114,663.84 19.25 ------------- ------------- ------------- ---------592,302.93 96.77 476,034.16 79.92 ------------- ------------- ------------- ---------612,082.31 100.00 510,486.59 85.70 ============= ============= ============= ========== Gomez Garage Door Co. General Journal 12/31/--
Date
Refer.
Acct.
Title
Debit
12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent.
4110 4210 5120 5130 5220 5230 7110 3170
Sales--Residential Sales--Commercial Prch. Ret. & All.--Res. Prch. Discounts--Res. Prch. Ret. & All.--Com. Prch. Discounts--Com. Interest Income Income Summary
463,345.00 594,604.00 5,306.66 4,225.06 7,522.36 5,318.81 1,312.33
12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent.
3170 4120 4130 4220 4230 5110 5210 6110 6130 6140 6150 6160 6170 6180 6210 6220 6230 6240 8110 9110
Income Summary Sales Ret. & All.--Res. Sales Discounts--Res. Sales Ret. & All.--Com. Sales Discounts--Com. Purchases--Residential Purchases--Commercial Advertising Expense Insurance Expense Rent Expense Heating & Lighting Exp. Telephone Expense Salary Expense Supplies Expense Deprec. Exp. Automobiles Deprec. Exp. Office Eq. Deprec. Exp. Wrhs. Eq. Uncollectible Accts. Exp. Interest Expense Corporate Income Tax
982,867.27
Credit
1,081,634.22 4,448.09 4,868.11 4,455.84 5,544.38 285,067.29 430,329.33 52,347.34 1,870.80 32,200.00 3,602.87 5,699.88 119,392.54 1,671.75 5,983.09 1,695.55 1,824.67 2,975.00 2,190.74 16,700.00
Comp. Problem 3 - Manual
Page 18
4/12/2024
12/31 Clo.Ent. 12/31 Clo.Ent. 12/31 Clo.Ent.
3170 3150 3160
Income Summary Income Summ.--Residential Income Summ.--Commercial
7,185.50
12/31 Clo.Ent. 12/31 Clo.Ent.
3170 3120
Income Summary Retained Earnings
91,581.45
5,706.50 1,479.00 91,581.45 -------------- -------------2,163,268.44 2,163,268.44 ============== ==============
Totals
Gomez Garage Door Co. Trial Balance 12/31/-Acct. Number
Account Title
1110 1120 1130 1140 1160 1161 1170 1180 1510 1511 1520 1521 1530 1531 2110 2130 2140 2150 3110 3120
Cash Accounts Receivable Allow. for Doubt. Accts. Interest Receivable Merch. Inv.--Residential Merch. Inv.--Commercial Supplies Prepaid Insurance Automobiles Accum. Deprec. Autos Office Equipment Accum. Deprec. Office Eq. Warehouse Equipment Accum. Deprec. Wrhs. Eq. Accounts Payable Salaries Payable Corporate Income Tax Pay. Interest Payable Capital Stock Retained Earnings Totals
Debit 160,319.43 47,370.89
1,073.81 253.73 158,938.00 178,000.00 525.00 3,897.28 32,154.66 2,964.22 16,744.33 875.73 19,662.33 869.58 12,525.90 2,794.43 4,100.00 359.05 415,000.00 177,302.93 ----------------- ----------------617,865.65 617,865.65 ================= =================
AUDIT QUESTIONS - COMPREHENSIVE PROBLEM 3 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
Credit
$15,120.00 $36,092.00 $83,848.00 79 $338,204.50 Total debits and credits = $2,922.00 Total debits and credits = $37,095.00 Total debits and credits = $84,131.46 Total debits and credits = $85,767.00 Total debits and credits = $130,439.34 $12,525.90 $47,370.89
Comp. Problem 3 - Manual
13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32.
Page 19
$19,433.54 $20,457.14 $39,890.68 $229,263.49 $91,581.45 $177,302.93 $612,082.31 $19,779.38 -0.99% Previous year = $341,862.94 Current year = $338,423.35 Total revenue—-residential = 43.71% Total revenue—-commercial = 56.29% Previous year = 20.84% Current year = 22.07% $430.00 57.99% $16,412.06 2.76% $116,268.77 24.42% Previous year = 12.11% Current year = 7.74% Previous year = 5.78% Current year = 3.23%
4/12/2024
Appendix A - Manual
Page 1
4/12/2024
Appendix A ACCOUNTING CYCLE OF A MERCHANDISING BUSINESS: Using Special Journals STUDENT EXERCISES I. MATCHING 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
g h c b a n d e i j k f l m
II. QUESTIONS 1. 2. 3. 4.
The Accounts Payable account is credited. The Cash account is credited. The Accounts Receivable account is debited. The Cash account is debited.
PROBLEM APPENDIX A-A Redlin Wholesale Co. Chart of Accounts 05/31/-Assets 1110 1120 1130 1140 1150 1510 1511 1520 1521
Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Supplies Warehouse Equipment Accum. Depr. Wrhse. Eqpt. Office Equipment Accum. Depr. Office Eqpt.
Liabilities 2110 2120 2130 2510
Accounts Payable Sales Tax Payable Salaries Payable Note Payable
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 2
4/12/2024
Owner's Equity 3110 3120 3130
Linda Redlin, Capital Linda Redlin, Drawing Income Summary
Revenue 4110 4111 4112
Sales Sales Returns & Allow. Sales Discounts
Cost 5110
Cost of Merchandise Sold
Expenses 6110 6120 6125 6130 6140 6150 6510 6520 6530 6540 6550 6560 6570 6580
Sales Salary Expense Advertising Expense Delivery Expense Depr. Exp. Wrhse. Eqpt. Supplies Expense Misc. Selling Expense Rent Expense Depr. Expense Off. Eqpt. Misc. General Expense Office Salary Expense Insurance Expense Telephone Expense Heating & Lighting Exp. Legal & Prof. Fees Exp.
Other Revenue 7110
Interest Income
Other Expense 8110
Interest Expense
Redlin Wholesale Co. Vendor List 05/31/-Vendor Name Albright Company Bresnan Mfg., Inc. Finch Corporation Geppert Supply Corp. Hinkley Inc. Huntley Corporation © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 3
4/12/2024
Kenward, Inc. Lindemann Company Schemmel Publications
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 4
4/12/2024
Redlin Wholesale Co. General Journal 05/31/-Date
Refer.
Acct.
Title
Debit
05/01 Rev.Ent. 05/01 Rev.Ent. 05/01 Rev.Ent.
2130 6110 6540
Salaries Payable Sales Salary Expense Office Salary Expense
740.00
05/26 R5358 05/26 R5358 05/26 R5358 05/26 R5358
4111 1130 1120 5110
Sales Returns & Allow. Merchandise Inventory AR/Stoffel Manufacturing Cost of Merchandise Sold
950.00 595.00
05/26 R3526 05/26 R3526
2110 1130
AP/Albright Company Merchandise Inventory
125.00
Totals
Credit 430.00 310.00
950.00 595.00 125.00 -------------- -------------2,410.00 2,410.00 ============== ==============
Redlin Wholesale Co. Purchases Journal 05/31/-Date
Inv. No.
Acct.
Title
05/03 3533 05/03 3533
1130 2110
Merchandise Inventory AP/Albright Company
2,950.00
05/04 3534 05/04 3534
6120 2110
Advertising Expense AP/Schemmel Publications
2,000.00
05/05 3535 05/05 3535
1130 2110
Merchandise Inventory AP/Kenward, Inc.
8,000.00
05/05 3536 05/05 3536 05/05 3536
1150 1520 2110
Supplies Office Equipment AP/Lindemann Company
925.00 895.00
05/10 3537 05/10 3537
1130 2110
Merchandise Inventory AP/Huntley Corporation
9,995.00
05/12 3538 05/12 3538
1130 2110
Merchandise Inventory AP/Hinkley Inc.
8,200.00
05/13 3539 05/13 3539
1130 2110
Merchandise Inventory AP/Geppert Supply Corp.
10,048.14
05/24 3540 05/24 3540
1130 2110
Merchandise Inventory AP/Bresnan Mfg., Inc.
1,900.00
Totals
Debit
Credit 2,950.00 2,000.00 8,000.00
1,820.00 9,995.00 8,200.00 10,048.14 1,900.00 -------------- -------------44,913.14 44,913.14 ============== ==============
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 5
4/12/2024
Redlin Wholesale Co. Cash Payments Journal 05/31/-Date
Ck. No.
Acct.
Title
Debit
05/03 2243 05/03 2243
6510 1110
Rent Expense Cash
850.00
05/04 2244 05/04 2244
6560 1110
Telephone Expense Cash
459.80
05/04 2245 05/04 2245
2110 1110
AP/Schemmel Publications Cash
2,405.78
05/05 2246 05/05 2246 05/05 2246
2510 8110 1110
Note Payable Interest Expense Cash
3,500.00 227.50
05/05 2247 05/05 2247 05/05 2247
2110 1110 1130
AP/Huntley Corporation Cash Merchandise Inventory
9,950.00
05/06 2248 05/06 2248
2110 1110
AP/Lindemann Company Cash
2,420.15
05/07 2249 05/07 2249
2110 1110
AP/Kenward, Inc. Cash
8,500.00
05/17 2250 05/17 2250
2110 1110
AP/Schemmel Publications Cash
2,000.00
05/18 2251 05/18 2251
6125 1110
Delivery Expense Cash
115.00
05/19 2252 05/19 2252
2110 1110
AP/Hinkley Inc. Cash
6,500.00
05/20 2253 05/20 2253
6580 1110
Legal & Prof. Fees Exp. Cash
3,450.00
05/21 2254 05/21 2254
6150 1110
Misc. Selling Expense Cash
325.00
05/27 2255 05/27 2255
3120 1110
Linda Redlin, Drawing Cash
2,250.00
05/27 2256 05/27 2256
2110 1110
AP/Geppert Supply Corp. Cash
7,350.95
05/30 2257 05/30 2257
6110 6540
Sales Salary Expense Office Salary Expense
3,446.80 2,902.35
Credit 850.00 459.80 2,405.78
3,727.50 9,751.00 199.00 2,420.15 8,500.00 2,000.00 115.00 6,500.00 3,450.00 325.00 2,250.00 7,350.95
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 6
4/12/2024
05/30 2257
1110
Cash
6,349.15
05/30 2258 05/30 2258
6570 1110
Heating & Lighting Exp. Cash
703.24
05/30 2259 05/30 2259
2120 1110
Sales Tax Payable Cash
464.70
Totals
703.24 464.70 -------------- -------------57,821.27 57,821.27 ============== ==============
Redlin Wholesale Co. Sales Journal 05/31/-Date
Inv. No.
Acct.
Title
Debit
05/03 5363 05/03 5363 05/03 5363 05/03 5363
1120 5110 4110 1130
AR/Harris Market Cost of Merchandise Sold Sales Merchandise Inventory
15,000.00 8,845.00
05/04 5364 05/04 5364 05/04 5364 05/04 5364
1120 5110 4110 1130
AR/Baxter Legal Services Cost of Merchandise Sold Sales Merchandise Inventory
995.00 570.00
05/06 5365 05/06 5365 05/06 5365 05/06 5365
1120 5110 4110 1130
AR/Stoffel Manufacturing Cost of Merchandise Sold Sales Merchandise Inventory
3,520.00 2,045.00
05/10 5366 05/10 5366 05/10 5366 05/10 5366
1120 5110 4110 1130
AR/United Corporation Cost of Merchandise Sold Sales Merchandise Inventory
3,265.00 1,805.00
05/11 5367 05/11 5367 05/11 5367 05/11 5367
1120 5110 4110 1130
AR/Mason Corporation Cost of Merchandise Sold Sales Merchandise Inventory
1,250.00 750.00
05/14 5368 05/14 5368 05/14 5368 05/14 5368
1120 5110 4110 1130
AR/Campbell Interiors Cost of Merchandise Sold Sales Merchandise Inventory
12,245.00 7,000.00
05/18 5369 05/18 5369 05/18 5369 05/18 5369
1120 5110 4110 1130
AR/Matson Boutique Cost of Merchandise Sold Sales Merchandise Inventory
8,235.00 4,940.00
05/19 5370 05/19 5370 05/19 5370
1120 5110 4110
AR/Mercy Clinic, Assoc. Cost of Merchandise Sold Sales
5,000.00 2,975.00
Credit
15,000.00 8,845.00
995.00 570.00
3,520.00 2,045.00
3,265.00 1,805.00
1,250.00 750.00
12,245.00 7,000.00
8,235.00 4,940.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5,000.00
Appendix A - Manual
Page 7
4/12/2024
05/19 5370
1130
Merchandise Inventory
05/21 5371 05/21 5371 05/21 5371 05/21 5371
1120 5110 4110 1130
AR/Burgess Service Center Cost of Merchandise Sold Sales Merchandise Inventory
1,815.95 1,035.00
05/24 5372 05/24 5372 05/24 5372 05/24 5372
1120 5110 4110 1130
AR/Kimble Carpet Center Cost of Merchandise Sold Sales Merchandise Inventory
11,655.00 6,780.00
Totals
2,975.00
1,815.95 1,035.00
11,655.00 6,780.00 -------------- -------------99,725.95 99,725.95 ============== ==============
Redlin Wholesale Co. Cash Receipts Journal 05/31/-Date
Refer.
Acct.
Title
Debit
05/03 5356 05/03 5356
1110 1120
Cash AR/Harris Market
12,000.00
05/07 5362 05/07 5362 05/07 5362
1110 4112 1120
Cash Sales Discounts AR/Matson Boutique
9,800.00 200.00
05/08 5361 05/08 5361 05/08 5361
1110 4112 1120
Cash Sales Discounts AR/Campbell Interiors
17,101.00 349.00
05/10 5357 05/10 5357
1110 1120
Cash AR/Baxter Legal Services
795.00
05/11 5291 05/11 5291
1110 1120
Cash AR/Kimble Carpet Center
16,787.75
05/13 5360 05/13 5360
1110 1120
Cash AR/Mason Corporation
1,200.00
05/17 1203 05/17 1203 05/17 1203 05/17 1203 05/17 1203
1110 5110 4110 2120 1130
Cash Cost of Merchandise Sold Sales Sales Tax Payable Merchandise Inventory
4,886.60 2,500.00
05/17 5364 05/17 5364
1110 1120
Cash AR/Baxter Legal Services
995.00
05/25 5283 05/25 5283
1110 1120
Cash AR/United Corporation
19,625.15
05/31 1204
1110
Cash
4,425.50
Credit 12,000.00
10,000.00
17,450.00 795.00 16,787.75 1,200.00
4,610.00 276.60 2,500.00 995.00 19,625.15
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
05/31 1204 05/31 1204 05/31 1204 05/31 1204
Page 8
5110 4110 2120 1130
4/12/2024
Cost of Merchandise Sold Sales Sales Tax Payable Merchandise Inventory
2,495.00 4,175.00 250.50 2,495.00 -------------- -------------93,160.00 93,160.00 ============== ==============
Totals
Redlin Wholesale Co. Trial Balance 05/31/-Acct. Number
Account Title
1110 1120 1130 1140 1150 1510 1511 1520 1521 2110 2120 2510 3110 3120 4110 4111 4112 5110 6110 6120 6125 6130 6140 6150 6510 6520 6530 6540 6550 6560 6570 6580 7110 8110
Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Supplies Warehouse Equipment Accum. Depr. Wrhse. Eqpt. Office Equipment Accum. Depr. Office Eqpt. Accounts Payable Sales Tax Payable Note Payable Linda Redlin, Capital Linda Redlin, Drawing Sales Sales Returns & Allow. Sales Discounts Cost of Merchandise Sold Sales Salary Expense Advertising Expense Delivery Expense Depr. Exp. Wrhse. Eqpt. Supplies Expense Misc. Selling Expense Rent Expense Depr. Expense Off. Eqpt. Misc. General Expense Office Salary Expense Insurance Expense Telephone Expense Heating & Lighting Exp. Legal & Prof. Fees Exp. Interest Income Interest Expense Totals
Debit
Credit
88,792.02 65,335.95 132,526.71 3,637.50 3,710.00 214,069.00 98,373.37 74,976.10 28,465.00 46,988.14 527.10 30,480.00 361,719.53 12,300.00 271,697.90 5,078.75 3,355.15 175,387.32 16,909.03 10,618.00 195.00 2,592.57 2,065.55 535.00 4,250.00 900.60 312.88 13,401.53 362.50 827.33 1,373.69 3,450.00 104.50 1,393.36 ----------------- ----------------838,355.54 838,355.54 ================= =================
Redlin Wholesale Co. © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 9
4/12/2024
Schedule of Accounts Payable 05/31/-Name
Balance
Albright Company Bresnan Mfg., Inc. Geppert Supply Corp. Hinkley Inc. Huntley Corporation Kenward, Inc. Lindemann Company
7,025.00 1,900.00 10,048.14 8,200.00 9,995.00 8,000.00 1,820.00 ----------------46,988.14 =================
Total
Redlin Wholesale Co. Accounts Payable Ledger 05/31/-Account
Journal
Date
Refer.
Albright Company Balance Forward Purchases General
05/03 3533 05/26 R3526
Bresnan Mfg., Inc. Purchases
05/24 3540
Debit
Credit
Balance
2,950.00
4,200.00Cr 7,150.00Cr 7,025.00Cr
1,900.00
1,900.00Cr
125.00
Finch Corporation *** No Activity **
.00
Geppert Supply Corp. Balance Forward Purchases Cash Payments
05/13 3539 05/27 2256
Hinkley Inc. Balance Forward Purchases Cash Payments
05/12 3538 05/19 2252
Huntley Corporation Balance Forward Cash Payments Purchases
05/05 2247 05/10 3537
Kenward, Inc. Balance Forward Purchases Cash Payments
05/05 3535 05/07 2249
10,048.14
7,350.95Cr 17,399.09Cr 10,048.14Cr
8,200.00
6,500.00Cr 14,700.00Cr 8,200.00Cr
7,350.95
6,500.00
9,950.00 9,995.00
8,000.00 8,500.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
9,950.00Cr .00 9,995.00Cr 8,500.00Cr 16,500.00Cr 8,000.00Cr
Appendix A - Manual
Page 10
Lindemann Company Balance Forward Purchases Cash Payments
05/05 3536 05/06 2248
Schemmel Publications Balance Forward Purchases Cash Payments Cash Payments
05/04 3534 05/04 2245 05/17 2250
4/12/2024
1,820.00 2,420.15
2,000.00 2,405.78 2,000.00
2,420.15Cr 4,240.15Cr 1,820.00Cr 2,405.78Cr 4,405.78Cr 2,000.00Cr .00
Redlin Wholesale Co. Schedule of Accounts Receivable 05/31/-Name
Balance
Burgess Service Center Campbell Interiors Harris Market Kimble Carpet Center Mason Corporation Matson Boutique Mercy Clinic, Assoc. Stoffel Manufacturing United Corporation
1,815.95 12,245.00 15,000.00 11,655.00 1,250.00 8,235.00 5,000.00 6,870.00 3,265.00 ----------------65,335.95 =================
Total
Redlin Wholesale Co. Accounts Receivable Ledger 05/31/-Account
Journal
Date
Refer.
Debit
Baxter Legal Services Balance Forward Sales Cash Receipts Cash Receipts
05/04 5364 05/10 5357 05/17 5364
995.00
Burgess Service Center Sales
05/21 5371
1,815.95
Campbell Interiors Balance Forward Cash Receipts Sales
05/08 5361 05/14 5368
Credit
Balance
795.00 995.00
795.00Dr 1,790.00Dr 995.00Dr .00 1,815.95Dr
17,450.00 12,245.00
Harris Market © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
17,450.00Dr .00 12,245.00Dr
Appendix A - Manual
Page 11
4/12/2024
Balance Forward Sales Cash Receipts
05/03 5363 05/03 5356
Kimble Carpet Center Balance Forward Cash Receipts Sales
05/11 5291 05/24 5372
Mason Corporation Balance Forward Sales Cash Receipts
05/11 5367 05/13 5360
Matson Boutique Balance Forward Cash Receipts Sales
05/07 5362 05/18 5369
8,235.00
10,000.00Dr .00 8,235.00Dr
Mercy Clinic, Assoc. Sales
05/19 5370
5,000.00
5,000.00Dr
Stoffel Manufacturing Balance Forward Sales General
05/06 5365 05/26 R5358
3,520.00
4,300.00Dr 7,820.00Dr 6,870.00Dr
15,000.00 12,000.00
16,787.75 11,655.00
1,250.00 1,200.00
10,000.00
950.00
Telshaw Rental Agency *** No Activity ** United Corporation Balance Forward Sales Cash Receipts
12,000.00Dr 27,000.00Dr 15,000.00Dr 16,787.75Dr .00 11,655.00Dr 1,200.00Dr 2,450.00Dr 1,250.00Dr
.00
05/10 5366 05/25 5283
19,625.15
19,625.15Dr 22,890.15Dr 3,265.00Dr
Credit
3,265.00
Redlin Wholesale Co. General Journal 05/31/-Date
Refer.
Acct.
Title
Debit
05/31 Adj.Ent. 05/31 Adj.Ent.
6550 1140
Insurance Expense Prepaid Insurance
400.00
05/31 Adj.Ent. 05/31 Adj.Ent.
6140 1150
Supplies Expense Supplies
1,365.00
05/31 Adj.Ent. 05/31 Adj.Ent.
6130 1511
Depr. Exp. Wrhse. Eqpt. Accum. Depr. Wrhse. Eqpt.
646.54
05/31 Adj.Ent. 05/31 Adj.Ent.
6520 1521
Depr. Expense Off. Eqpt. Accum. Depr. Office Eqpt.
281.00
05/31 Adj.Ent. 05/31 Adj.Ent.
6110 6540
Sales Salary Expense Office Salary Expense
462.00 341.00
400.00 1,365.00 646.54 281.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
05/31 Adj.Ent.
Page 12
2130
Salaries Payable Totals
4/12/2024
803.00 -------------- -------------3,495.54 3,495.54 ============== ==============
Redlin Wholesale Co. Income Statement For Period Ended 05/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discounts Total Operating Revenue
71,765.95 102.13 271,697.90 103.20 -950.00 -1.35 -5,078.75 -1.93 -549.00 -0.78 -3,355.15 -1.27 ------------- ------------- ------------- ---------70,266.95 100.00 263,264.00 100.00
Cost Cost of Merchandise Sold Total Cost Gross Profit
41,145.00 58.56 175,387.32 66.62 ------------- ------------- ------------- ---------41,145.00 58.56 175,387.32 66.62 ------------- ------------- ------------- ---------29,121.95 41.44 87,876.68 33.38
Operating Expenses Sales Salary Expense Advertising Expense Delivery Expense Depr. Exp. Wrhse. Eqpt. Supplies Expense Misc. Selling Expense Total Selling Expenses Rent Expense Depr. Expense Off. Eqpt. Misc. General Expense Office Salary Expense Insurance Expense Telephone Expense Heating & Lighting Exp. Legal & Prof. Fees Exp.
3,478.80 4.95 17,371.03 6.60 2,000.00 2.85 10,618.00 4.03 115.00 0.16 195.00 0.07 646.54 0.92 3,239.11 1.23 1,365.00 1.94 3,430.55 1.30 325.00 0.46 535.00 0.20 ------------- ------------- ------------- ---------7,930.34 11.29 35,388.69 13.44 850.00 281.00
1.21 0.40
4,250.00 1.61 1,181.60 0.45 312.88 0.12 2,933.35 4.17 13,742.53 5.22 400.00 0.57 762.50 0.29 459.80 0.65 827.33 0.31 703.24 1.00 1,373.69 0.52 3,450.00 4.91 3,450.00 1.31 ------------- ------------- ------------- ---------Total Administrative Expense 9,077.39 12.92 25,900.53 9.84 ------------- ------------- ------------- ---------Total Operating Expenses 17,007.73 24.20 61,289.22 23.28 ------------- ------------- ------------- ---------Net Income from Operations 12,114.22 17.24 26,587.46 10.10 Other Revenue © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 13
4/12/2024
Interest Income
104.50
0.04
Other Expense Interest Expense
227.50 0.32 1,393.36 0.53 ------------- ------------- ------------- ---------11,886.72 16.92 25,298.60 9.61 ============= ============= ============= ==========
Net Income
Redlin Wholesale Co. Statement of Owner's Equity For Period Ended 05/31/-Linda Redlin, Capital (Beg. of Period) Linda Redlin, Drawing Net Income Linda Redlin, Capital (End of Period)
361,719.53 -12,300.00 25,298.60 ------------374,718.13 =============
Redlin Wholesale Co. Balance Sheet 05/31/-Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Supplies Total Current Assets Warehouse Equipment Accum. Depr. Wrhse. Eqpt. Office Equipment Accum. Depr. Office Eqpt. Total Plant Assets
88,792.02 65,335.95 132,526.71 3,237.50 2,345.00 ------------292,237.18 214,069.00 -99,019.91 74,976.10 -28,746.00 ------------161,279.19 -------------
Total Assets
453,516.37 =============
Liabilities Accounts Payable Sales Tax Payable Salaries Payable Total Current Liabilities
46,988.14 527.10 803.00 ------------48,318.24
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Note Payable Total Long Term Liabilities
Page 14
4/12/2024
30,480.00 ------------30,480.00 -------------
Total Liabilities
78,798.24
Owner's Equity Linda Redlin, Capital Linda Redlin, Drawing Net Income
361,719.53 -12,300.00 25,298.60 -------------
Total Owner's Equity
374,718.13 ------------453,516.37 =============
Total Liabilities & Equity
Student Name Redlin Wholesale Co. Schedule of Accounts Receivable As Of 05/31/-Name Burgess Service Center Campbell Interiors Harris Market Kimble Carpet Center Mason Corporation Matson Boutique Mercy Clinic, Assoc. Stoffel Manufacturing
Balance
Percent
$1,815.95 $12,245.00 $15,000.00 $11,655.00 $1,250.00 $8,235.00 $5,000.00 $6,870.00
2.78% 18.74% 22.96% 17.84% 1.91% 12.60% 7.65% 10.51%
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 15
United Corporation
$3,265.00
4/12/2024
5.00%
-----------
Total
$65,335.95 ===========
Redlin Wholesale Co. 3950 Maple Leaf Dr. New Orleans, LA 70152-2530 (504) 555-9000 FACSIMILE TO: Donald Levine, CPA COMPANY: Levine & Associates DATE: (Today’s Date) PHONE NUMBER: (504) 555-9000 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 16
4/12/2024
FAX NUMBER: (504) 555-9074 FROM: (Your Name) SUBJECT: End of the Month Customer Account Balances Notes/Comments: As per your request, our customers and their account balances as of May 31 are: Burgess Service Center Campbell Interiors Harris Market Kimble Carpet Center Mason Corporation Matson Boutique Mercy Clinic, Assoc. Stoffel Manufacturing United Corporation Total
$ 1,815.95 12,245.00 15,000.00 11,655.00 1,250.00 8,235.00 5,000.00 6,870.00 3,265.00 ---------$65,335.95 ==========
Internet Activity Members of the Federal Reserve Board of Governors may differ depending upon the date this information is accessed.
AUDIT QUESTIONS APPENDIX A-A 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Total debits and credits = $44,913.14 Total debits and credits = $57,821.27 Total debits and credits = $99,725.95 Total debits and credits = $93,160.00 $8,200.00 $6,870.00 $41,145.00 $374,718.13 $453,516.37 $78,798.24
PROBLEM APPENDIX A-B Redlin Wholesale Co. Chart of Accounts 05/31/-Assets 1110 1120 1130
Cash Accounts Receivable Merchandise Inventory
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
1140 1150 1510 1511 1520 1521
Page 17
4/12/2024
Prepaid Insurance Supplies Warehouse Equipment Accum. Depr. Wrhse. Eqpt. Office Equipment Accum. Depr. Office Eqpt.
Liabilities 2110 2120 2130 2510
Accounts Payable Sales Tax Payable Salaries Payable Note Payable
Owner's Equity 3110 3120 3130
Linda Redlin, Capital Linda Redlin, Drawing Income Summary
Revenue 4110 4111 4112
Sales Sales Returns & Allow. Sales Discounts
Cost 5110
Cost of Merchandise Sold
Expenses 6110 6120 6125 6130 6140 6150 6510 6520 6530 6540 6550 6560 6570 6580
Sales Salary Expense Advertising Expense Delivery Expense Depr. Exp. Wrhse. Eqpt. Supplies Expense Misc. Selling Expense Rent Expense Depr. Expense Off. Eqpt. Misc. General Expense Office Salary Expense Insurance Expense Telephone Expense Heating & Lighting Exp. Legal & Prof. Fees Exp.
Other Revenue 7110
Interest Income
Other Expense 8110
Interest Expense
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 18
4/12/2024
Redlin Wholesale Co. Vendor List 05/31/-Vendor Name Albright Company Bresnan Mfg., Inc. Finch Corporation Geppert Supply Corp. Hinkley, Inc. Huntley Corporation Kenward, Inc. Lindemann Company Schemmel Publications Redlin Wholesale Co. General Journal 05/31/-Date
Refer.
Acct.
Title
Debit
05/01 Rev.Ent. 05/01 Rev.Ent. 05/01 Rev.Ent.
2130 6110 6540
Salaries Payable Sales Salary Expense Office Salary Expense
740.00
05/26 R5358 05/26 R5358 05/26 R5358 05/26 R5358
4111 1130 1120 5110
Sales Returns & Allow. Merchandise Inventory AR/Stoffel Manufacturing Cost of Merchandise Sold
05/26 R3526 05/26 R3526
2110 1130
AP/Albright Company Merchandise Inventory Totals
Credit 430.00 310.00
1,000.00 605.00 1,000.00 605.00 95.00 95.00 -------------- -------------2,440.00 2,440.00 ============== ==============
Redlin Wholesale Co. Purchases Journal 05/31/-Date
Inv. No.
Acct.
Title
Debit
05/03 3533 05/03 3533
1130 2110
Merchandise Inventory AP/Albright Company
3,050.00
05/04 3534 05/04 3534
6120 2110
Advertising Expense AP/Schemmel Publications
1,850.00
05/05 3535 05/05 3535
1130 2110
Merchandise Inventory AP/Kenward, Inc.
8,495.00
05/05 3536
1150
Supplies
Credit 3,050.00 1,850.00 8,495.00
999.95
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 19
4/12/2024
05/05 3536 05/05 3536
1520 2110
Office Equipment AP/Lindemann Company
05/10 3537 05/10 3537
1130 2110
Merchandise Inventory AP/Huntley Corporation
10,200.00
05/12 3538 05/12 3538
1130 2110
Merchandise Inventory AP/Hinkley, Inc.
7,800.00
05/13 3539 05/13 3539
1130 2110
Merchandise Inventory AP/Geppert Supply Corp.
10,975.00
05/24 3540 05/24 3540
1130 2110
Merchandise Inventory AP/Bresnan Mfg., Inc.
1,615.00
Totals
785.65 1,785.60 10,200.00 7,800.00 10,975.00 1,615.00 -------------- -------------45,770.60 45,770.60 ============== ==============
Redlin Wholesale Co. Cash Payments Journal 05/31/-Date
Ck. No.
Acct.
Title
Debit
05/03 2243 05/03 2243
6510 1110
Rent Expense Cash
850.00
05/04 2244 05/04 2244
6560 1110
Telephone Expense Cash
495.65
05/04 2245 05/04 2245
2110 1110
AP/Schemmel Publications Cash
2,405.78
05/05 2246 05/05 2246 05/05 2246
2510 8110 1110
Note Payable Interest Expense Cash
3,500.00 227.50
05/05 2247 05/05 2247 05/05 2247
2110 1110 1130
AP/Huntley Corporation Cash Merchandise Inventory
9,950.00
05/06 2248 05/06 2248
2110 1110
AP/Lindemann Company Cash
2,420.15
05/07 2249 05/07 2249
2110 1110
AP/Kenward, Inc. Cash
8,500.00
05/17 2250 05/17 2250
2110 1110
AP/Schemmel Publications Cash
1,850.00
05/18 2251 05/18 2251
6125 1110
Delivery Expense Cash
Credit 850.00 495.65 2,405.78
3,727.50 9,751.00 199.00 2,420.15 8,500.00 1,850.00 105.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
105.00
Appendix A - Manual
Page 20
4/12/2024
05/19 2252 05/19 2252
2110 1110
AP/Hinkley, Inc. Cash
6,500.00
05/20 2253 05/20 2253
6580 1110
Legal & Prof. Fees Exp. Cash
2,775.00
05/21 2254 05/21 2254
6150 1110
Misc. Selling Expense Cash
300.00
05/27 2255 05/27 2255
3120 1110
Linda Redlin, Drawing Cash
2,850.00
05/27 2256 05/27 2256
2110 1110
AP/Geppert Supply Corp. Cash
7,350.95
05/30 2257 05/30 2257 05/30 2257
6110 6540 1110
Sales Salary Expense Office Salary Expense Cash
3,537.90 2,885.00
05/30 2258 05/30 2258
6570 1110
Heating & Lighting Exp. Cash
631.38
05/30 2259 05/30 2259
2120 1110
Sales Tax Payable Cash
464.70
Totals
6,500.00 2,775.00 300.00 2,850.00 7,350.95
6,422.90 631.38 464.70 -------------- -------------57,599.01 57,599.01 ============== ==============
Redlin Wholesale Co. Sales Journal 05/31/-Date
Inv. No.
Acct.
Title
Debit
05/03 5363 05/03 5363 05/03 5363 05/03 5363
1120 5110 4110 1130
AR/Harris Market Cost of Merchandise Sold Sales Merchandise Inventory
15,000.00 8,947.00
05/04 5364 05/04 5364 05/04 5364 05/04 5364
1120 5110 4110 1130
AR/Baxter Legal Services Cost of Merchandise Sold Sales Merchandise Inventory
1,275.00 750.00
05/06 5365 05/06 5365 05/06 5365 05/06 5365
1120 5110 4110 1130
AR/Stoffel Manufacturing Cost of Merchandise Sold Sales Merchandise Inventory
3,000.00 1,800.00
05/10 5366 05/10 5366 05/10 5366 05/10 5366
1120 5110 4110 1130
AR/United Corporation Cost of Merchandise Sold Sales Merchandise Inventory
3,115.00 1,795.00
Credit
15,000.00 8,947.00
1,275.00 750.00
3,000.00 1,800.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3,115.00 1,795.00
Appendix A - Manual
Page 21
4/12/2024
05/11 5367 05/11 5367 05/11 5367 05/11 5367
1120 5110 4110 1130
AR/Mason Corporation Cost of Merchandise Sold Sales Merchandise Inventory
917.60 525.00
05/14 5368 05/14 5368 05/14 5368 05/14 5368
1120 5110 4110 1130
AR/Campbell Interiors Cost of Merchandise Sold Sales Merchandise Inventory
13,725.50 8,135.30
05/18 5369 05/18 5369 05/18 5369 05/18 5369
1120 5110 4110 1130
AR/Matson Boutique Cost of Merchandise Sold Sales Merchandise Inventory
8,075.00 4,685.00
05/19 5370 05/19 5370 05/19 5370 05/19 5370
1120 5110 4110 1130
AR/Mercy Clinic, Assoc. Cost of Merchandise Sold Sales Merchandise Inventory
5,410.35 3,137.45
05/21 5371 05/21 5371 05/21 5371 05/21 5371
1120 5110 4110 1130
AR/Burgess Service Center Cost of Merchandise Sold Sales Merchandise Inventory
2,000.00 1,200.00
05/24 5372 05/24 5372 05/24 5372 05/24 5372
1120 5110 4110 1130
AR/Kimble Carpet Center Cost of Merchandise Sold Sales Merchandise Inventory
11,525.00 6,650.00
Totals
917.60 525.00
13,725.50 8,135.30
8,075.00 4,685.00
5,410.35 3,137.45
2,000.00 1,200.00
11,525.00 6,650.00 -------------- -------------101,668.20 101,668.20 ============== ==============
Redlin Wholesale Co. Cash Receipts Journal 05/31/-Date
Refer.
Acct.
Title
Debit
05/03 5356 05/03 5356
1110 1120
Cash AR/Harris Market
12,000.00
05/07 5362 05/07 5362 05/07 5362
1110 4112 1120
Cash Sales Discounts AR/Matson Boutique
9,800.00 200.00
05/08 5361 05/08 5361 05/08 5361
1110 4112 1120
Cash Sales Discounts AR/Campbell Interiors
17,101.00 349.00
05/10 5357 05/10 5357
1110 1120
Cash AR/Baxter Legal Services
795.00
05/11 5291 05/11 5291
1110 1120
Cash AR/Kimble Carpet Center
16,787.75
Credit 12,000.00
10,000.00
17,450.00 795.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
16,787.75
Appendix A - Manual
Page 22
4/12/2024
05/13 5360 05/13 5360
1110 1120
Cash AR/Mason Corporation
1,200.00
05/17 1203 05/17 1203 05/17 1203 05/17 1203 05/17 1203
1110 5110 4110 2120 1130
Cash Cost of Merchandise Sold Sales Sales Tax Payable Merchandise Inventory
4,997.90 2,710.00
05/17 5364 05/17 5364
1110 1120
Cash AR/Baxter Legal Services
1,275.00
05/25 5283 05/25 5283
1110 1120
Cash AR/United Corporation
19,625.15
05/31 1204 05/31 1204 05/31 1204 05/31 1204 05/31 1204
1110 5110 4110 2120 1130
Cash Cost of Merchandise Sold Sales Sales Tax Payable Merchandise Inventory
4,602.52 2,465.00
1,200.00
4,715.00 282.90 2,710.00 1,275.00 19,625.15
4,342.00 260.52 2,465.00 -------------- -------------93,908.32 93,908.32 ============== ==============
Totals
Redlin Wholesale Co. Trial Balance 05/31/-Acct. Number
Account Title
1110 1120 1130 1140 1150 1510 1511 1520 1521 2110 2120 2510 3110 3120 4110 4111 4112 5110 6110 6120 6125 6130 6140
Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Supplies Warehouse Equipment Accum. Depr. Wrhse. Eqpt. Office Equipment Accum. Depr. Office Eqpt. Accounts Payable Sales Tax Payable Note Payable Linda Redlin, Capital Linda Redlin, Drawing Sales Sales Returns & Allow. Sales Discounts Cost of Merchandise Sold Sales Salary Expense Advertising Expense Delivery Expense Depr. Exp. Wrhse. Eqpt. Supplies Expense
Debit
Credit
89,582.60 66,068.45 132,548.82 3,637.50 3,784.95 214,069.00 98,373.37 74,866.75 28,465.00 48,025.60 543.42 30,480.00 361,719.53 12,900.00 273,032.40 5,128.75 3,355.15 176,437.07 17,000.13 10,468.00 185.00 2,592.57 2,065.55
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
6150 6510 6520 6530 6540 6550 6560 6570 6580 7110 8110
Page 23
Misc. Selling Expense Rent Expense Depr. Expense Off. Eqpt. Misc. General Expense Office Salary Expense Insurance Expense Telephone Expense Heating & Lighting Exp. Legal & Prof. Fees Exp. Interest Income Interest Expense Totals
4/12/2024
510.00 4,250.00 900.60 312.88 13,384.18 362.50 863.18 1,301.83 2,775.00 104.50 1,393.36 ----------------- ----------------840,743.82 840,743.82 ================= =================
Redlin Wholesale Co. Schedule of Accounts Payable 05/31/-Name
Balance
Albright Company Bresnan Mfg., Inc. Geppert Supply Corp. Hinkley, Inc. Huntley Corporation Kenward, Inc. Lindemann Company
7,155.00 1,615.00 10,975.00 7,800.00 10,200.00 8,495.00 1,785.60 ----------------48,025.60 =================
Total
Redlin Wholesale Co. Accounts Payable Ledger 05/31/-Account
Journal
Date
Refer.
Albright Company Balance Forward Purchases General
05/03 3533 05/26 R3526
Bresnan Mfg., Inc. Purchases
05/24 3540
Debit
Credit
Balance
3,050.00
4,200.00Cr 7,250.00Cr 7,155.00Cr
1,615.00
1,615.00Cr
95.00
Finch Corporation *** No Activity ** Geppert Supply Corp. Balance Forward Purchases Cash Payments
.00
05/13 3539 05/27 2256
10,975.00 7,350.95
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7,350.95Cr 18,325.95Cr 10,975.00Cr
Appendix A - Manual
Page 24
Hinkley, Inc. Balance Forward Purchases Cash Payments
05/12 3538 05/19 2252
Huntley Corporation Balance Forward Cash Payments Purchases
05/05 2247 05/10 3537
Kenward, Inc. Balance Forward Purchases Cash Payments
05/05 3535 05/07 2249
Lindemann Company Balance Forward Purchases Cash Payments
05/05 3536 05/06 2248
Schemmel Publications Balance Forward Purchases Cash Payments Cash Payments
05/04 3534 05/04 2245 05/17 2250
4/12/2024
7,800.00 6,500.00
9,950.00 10,200.00
6,500.00Cr 14,300.00Cr 7,800.00Cr 9,950.00Cr .00 10,200.00Cr
8,495.00
8,500.00Cr 16,995.00Cr 8,495.00Cr
1,785.60
2,420.15Cr 4,205.75Cr 1,785.60Cr
8,500.00
2,420.15
1,850.00 2,405.78 1,850.00
2,405.78Cr 4,255.78Cr 1,850.00Cr .00
Redlin Wholesale Co. Schedule of Accounts Receivable 05/31/-Name
Balance
Burgess Service Center Campbell Interiors Harris Market Kimble Carpet Center Mason Corporation Matson Boutique Mercy Clinic, Assoc. Stoffel Manufacturing United Corporation
2,000.00 13,725.50 15,000.00 11,525.00 917.60 8,075.00 5,410.35 6,300.00 3,115.00 ----------------66,068.45 =================
Total
Redlin Wholesale Co. Accounts Receivable Ledger 05/31/-Account
Journal
Baxter Legal Services Balance Forward Sales
Date
Refer.
05/04 5364
Debit
Credit
1,275.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Balance 795.00Dr 2,070.00Dr
Appendix A - Manual
Page 25
4/12/2024
Cash Receipts Cash Receipts
05/10 5357 05/17 5364
795.00 1,275.00
Burgess Service Center Sales
05/21 5371
Campbell Interiors Balance Forward Cash Receipts Sales
05/08 5361 05/14 5368
Harris Market Balance Forward Sales Cash Receipts
05/03 5363 05/03 5356
Kimble Carpet Center Balance Forward Cash Receipts Sales
05/11 5291 05/24 5372
Mason Corporation Balance Forward Sales Cash Receipts
05/11 5367 05/13 5360
Matson Boutique Balance Forward Cash Receipts Sales
05/07 5362 05/18 5369
8,075.00
10,000.00Dr .00 8,075.00Dr
Mercy Clinic, Assoc. Sales
05/19 5370
5,410.35
5,410.35Dr
Stoffel Manufacturing Balance Forward Sales General
05/06 5365 05/26 R5358
3,000.00
4,300.00Dr 7,300.00Dr 6,300.00Dr
2,000.00
2,000.00Dr
17,450.00 13,725.50
15,000.00 12,000.00
16,787.75 11,525.00
917.60 1,200.00
10,000.00
1,000.00
Telshaw Rental Agency *** No Activity ** United Corporation Balance Forward Sales Cash Receipts
1,275.00Dr .00
17,450.00Dr .00 13,725.50Dr 12,000.00Dr 27,000.00Dr 15,000.00Dr 16,787.75Dr .00 11,525.00Dr 1,200.00Dr 2,117.60Dr 917.60Dr
.00
05/10 5366 05/25 5283
19,625.15
19,625.15Dr 22,740.15Dr 3,115.00Dr
Credit
3,115.00
Redlin Wholesale Co. General Journal 05/31/-Date
Refer.
05/31 Adj.Ent. 05/31 Adj.Ent.
Acct.
Title
Debit
6550 1140
Insurance Expense Prepaid Insurance
415.00
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
415.00
Appendix A - Manual
Page 26
4/12/2024
05/31 Adj.Ent. 05/31 Adj.Ent.
6140 1150
Supplies Expense Supplies
05/31 Adj.Ent. 05/31 Adj.Ent.
6130 1511
Depr. Exp. Wrhse. Eqpt. Accum. Depr. Wrhse. Eqpt.
654.34
05/31 Adj.Ent. 05/31 Adj.Ent.
6520 1521
Depr. Expense Off. Eqpt. Accum. Depr. Office Eqpt.
260.15
05/31 Adj.Ent. 05/31 Adj.Ent. 05/31 Adj.Ent.
6110 6540 2130
Sales Salary Expense Office Salary Expense Salaries Payable
457.00 332.00
Totals
1,569.95 1,569.95 654.34 260.15
789.00 -------------- -------------3,688.44 3,688.44 ============== ==============
Redlin Wholesale Co. Income Statement For Period Ended 05/31/-Monthly Amount
Monthly Percent
Yearly Amount
Yearly Percent
Operating Revenue Sales Sales Returns & Allow. Sales Discounts Total Operating Revenue
73,100.45 102.16 273,032.40 103.21 -1,000.00 -1.40 -5,128.75 -1.94 -549.00 -0.77 -3,355.15 -1.27 ------------- ------------- ------------- ---------71,551.45 100.00 264,548.50 100.00
Cost Cost of Merchandise Sold Total Cost Gross Profit
42,194.75 58.97 176,437.07 66.69 ------------- ------------- ------------- ---------42,194.75 58.97 176,437.07 66.69 ------------- ------------- ------------- ---------29,356.70 41.03 88,111.43 33.31
Operating Expenses Sales Salary Expense Advertising Expense Delivery Expense Depr. Exp. Wrhse. Eqpt. Supplies Expense Misc. Selling Expense
3,564.90 4.98 17,457.13 6.60 1,850.00 2.59 10,468.00 3.96 105.00 0.15 185.00 0.07 654.34 0.91 3,246.91 1.23 1,569.95 2.19 3,635.50 1.37 300.00 0.42 510.00 0.19 ------------- ------------- ------------- ----------
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 27
4/12/2024
Total Selling Expenses
8,044.19
11.24
Rent Expense Depr. Expense Off. Eqpt. Misc. General Expense Office Salary Expense Insurance Expense Telephone Expense Heating & Lighting Exp. Legal & Prof. Fees Exp.
850.00 260.15
1.19 0.36
35,502.54
13.42
4,250.00 1.61 1,160.75 0.44 312.88 0.12 2,907.00 4.06 13,716.18 5.18 415.00 0.58 777.50 0.29 495.65 0.69 863.18 0.33 631.38 0.88 1,301.83 0.49 2,775.00 3.88 2,775.00 1.05 ------------- ------------- ------------- ---------Total Administrative Expense 8,334.18 11.65 25,157.32 9.51 ------------- ------------- ------------- ---------Total Operating Expenses 16,378.37 22.89 60,659.86 22.93 ------------- ------------- ------------- ---------Net Income from Operations 12,978.33 18.14 27,451.57 10.38 Other Revenue Interest Income
104.50
0.04
Other Expense Interest Expense
227.50 0.32 1,393.36 0.53 ------------- ------------- ------------- ---------12,750.83 17.82 26,162.71 9.89 ============= ============= ============= ==========
Net Income
Redlin Wholesale Co. Statement of Owner's Equity For Period Ended 05/31/-Linda Redlin, Capital (Beg. of Period) Linda Redlin, Drawing Net Income Linda Redlin, Capital (End of Period)
361,719.53 -12,900.00 26,162.71 ------------374,982.24 =============
Redlin Wholesale Co. Balance Sheet 05/31/-Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Supplies Total Current Assets Warehouse Equipment Accum. Depr. Wrhse. Eqpt.
89,582.60 66,068.45 132,548.82 3,222.50 2,215.00 ------------293,637.37 214,069.00 -99,027.71
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Office Equipment Accum. Depr. Office Eqpt. Total Plant Assets
Page 28
4/12/2024
74,866.75 -28,725.15 ------------161,182.89 -------------
Total Assets
454,820.26 =============
Liabilities Accounts Payable Sales Tax Payable Salaries Payable Total Current Liabilities Note Payable Total Long Term Liabilities
48,025.60 543.42 789.00 ------------49,358.02 30,480.00 ------------30,480.00 -------------
Total Liabilities
79,838.02
Owner's Equity Linda Redlin, Capital Linda Redlin, Drawing Net Income Total Owner's Equity Total Liabilities & Equity
361,719.53 -12,900.00 26,162.71 ------------374,982.24 ------------454,820.26 =============
Student Name Redlin Wholesale Co. © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 29
4/12/2024
Schedule of Accounts Receivable As Of 05/31/-Name Burgess Service Center Campbell Interiors Harris Market Kimble Carpet Center Mason Corporation Matson Boutique Mercy Clinic, Assoc. Stoffel Manufacturing United Corporation
Balance
Percent
$2,000.00 $13,725.50 $15,000.00 $11,525.00 $917.60 $8,075.00 $5,410.35 $6,300.00 $3,115.00 ---------
3.03% 20.77% 22.70% 17.44% 1.39% 12.22% 8.19% 9.54% 4.71%
Total
$66,068.45 ==========
Redlin Wholesale Co. 3950 Maple Leaf Dr. New Orleans, LA 70152-2530 (504) 555-9000 FACSIMILE TO:
Donald Levine, CPA
COMPANY:
Levine & Associates
DATE:
(Today's Date)
PHONE NUMBER:
(504) 555-9000
FAX NUMBER:
(504) 555-9074
FROM: SUBJECT:
(Your Name) End of the Month Customer Account Balances
Notes/Comments: © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Appendix A - Manual
Page 30
4/12/2024
As per your request, our customers and their account balances as of May 31 are: Burgess Service Center Campbell Interiors Harris Market Kimble Carpet Center Mason Corporation Matson Boutique Mercy Clinic, Assoc. Stoffel Manufacturing United Corporation Total
$ 2,000.00 13,725.50 15,000.00 11,525.00 917.60 8,075.00 5,410.35 6,300.00 3,115.00 ---------$66,068.45 ==========
Internet Activity The address of the Federal Reserve Bank nearest where the student lives should be that of one of the following twelve U.S. Federal Reserve Bank Districts: Atlanta Boston Chicago Cleveland Dallas Kansas City Minneapolis New York Philadelphia Richmond St. Louis San Francisco
AUDIT QUESTIONS APPENDIX A-B 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Total debits and credits = $45,770.60 Total debits and credits = $57,599.01 Total debits and credits = $101,668.20 Total debits and credits = $93,908.32 $48,025.60 $13,725.50 $42,194.75 $374,982.24 $454,820.26 $79,838.02
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.