ACCT 2000 : Review Of Perpetual Entries
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Create a Multi-Step Income Statement, Statement of Retained Earnings, Classified Balance Sheet and Statement of Cash Flows. These financial statements are being prepared for the fiscal month ending May 31st. Build the financial statements within the given blanks. The month of May's worksheet is to be utilized while creating the financial statements. Additional information folows:
-For the Statement of Retained Earnings, assume a beginning balance in the Retained Earnings account of $366,000. Also assume that $345,500 of dividends were declared.
-For the Classified Balance Sheet, assume that the company only has common stock and that the value of common stock at par value equals $30,200. Further assume that the value of paid-in-capital excess of par on the common stock has a value of $1,560,000.
-For the Statement of Cash Flow assume that the company purchased equipment with $200,000 cash. The company sold land and received $429,000 in cash. Also assume the following ending balances from the last financial period: Cash: $345,091; A/R: $525,000; Inventory: $836,000; Office Supplies: $5,000; A/P: $675,800. Additionally, the company paid cash dividends during the period of $345,500. Create the Statement of Cash Flow using the Indirect Method.
Worksheet for May
Unadjusted | Adjusted | Income | Bal. Sheet | |||||||
Trial Balance | Adjustments | Trial Balance | Statement | Stmt. Own. Equity | ||||||
Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. |
Cash | 250,000 | 250,000 | 250,000 | |||||||
Accounts Receivable | 280,000 | 280,000 | 280,000 | |||||||
Allowance for Doubtful Accounts | 12,500 | 2,415 | 14,915 | 14,915 | ||||||
Merchandise Inventory | 745,000 | 5,000 | 740,000 | 740,000 | ||||||
Office Supplies | 2,300 | 735 | 1,565 | 1,565 | ||||||
Prepaid Insurance | 7,000 | 3,500 | 3,500 | 3,500 | ||||||
Land | 1,628,803 | 1,628,803 | 1,628,803 | |||||||
Building | 1,000,000 | 1,000,000 | 1,000,000 | |||||||
Accumulated Depreciation - Building | 700,000 | 700,000 | 700,000 | |||||||
Equipment & Furniture - Warehouse | 7,900 | 7,900 | 7,900 | |||||||
Accumulated Depreciation - Equip & Furn. - Warehouse | 5,643 | 775 | 6,418 | 6,418 | ||||||
Equipment & Furniture - Office | 7,421 | 7,421 | 7,421 | |||||||
Accumulated Depreciation - Equip & Furn. - Office | 2,000 | 825 | 2,825 | 2,825 | ||||||
Accounts Payable | 800,000 | 800,000 | 800,000 | |||||||
Wages Payable | 0 | 0 | 0 | |||||||
Interest Payable | 2,500 | 2,500 | 2,500 | |||||||
Dividends Payable | 0 | 0 | 0 | |||||||
Unearned Rent | 7,400 | 2,143 | 5,257 | 5,257 | ||||||
Notes Payable | 200,000 | 200,000 | 200,000 | |||||||
Bonds Payable | 90,000 | 90,000 | 90,000 | |||||||
Mortgage (Warehouse) Payable | 197,000 | 197,000 | 197,000 | |||||||
Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding | 30,200 | 30,200 | 30,200 | |||||||
Paid In Capital - Excess of Par | 1,560,000 | 1,560,000 | 1,560,000 | |||||||
Retained Earnings | 20,500 | 20,500 | 289,574 | 310,074 | ||||||
Treasury Stock | 0 | 0 | 0 | |||||||
Sales | 1,067,500 | 1,067,500 | 1,067,500 | |||||||
Cost of Goods Sold | 636,700 | 5,000 | 641,700 | 641,700 | ||||||
Wage Expense (hourly workers) | 10,000 | 10,000 | 10,000 | |||||||
Salaries Expense (Exempt Staff) | 32,100 | 32,100 | 32,100 | |||||||
Marketing Expense | 64,000 | 64,000 | 64,000 | |||||||
Travel and Entertainment Expense | 1,250 | 1,250 | 1,250 | |||||||
Bad Debt Expense | 0 | 2,415 | 2,415 | 2,415 | ||||||
Property Tax Expense | 1,455 | 1,455 | 1,455 | |||||||
Office Maintenance & Repair Expense | 0 | 0 | 0 | |||||||
Legal Expenses | 6,340 | 6,340 | 6,340 | |||||||
Insurance Expense | 0 | 3,500 | 3,500 | 3,500 | ||||||
Utilities Expense | 2,000 | 2,000 | 2,000 | |||||||
Office Supplies Expense | 0 | 735 | 735 | 735 | ||||||
Telecommunications Expense | 754 | 754 | 754 | |||||||
Depreciation Expense - Equip & Furniture - Warehouse | 0 | 775 | 775 | 775 | ||||||
Depreciation Expense - Equip & Furniture - Office | 0 | 825 | 825 | 825 | ||||||
Rent Income | 0 | 2,143 | 2,143 | 2,143 | ||||||
Interest Expense | 12,220 | 12,220 | 12,220 | |||||||
Total | 4,695,243 | 4,695,243 | 15,393 | 15,393 | 4,699,258 | 4,699,258 | 1,069,643 | 1,069,643 | 3,919,189 | 3,919,189 |
0 | 0 | |||||||||
Net Income (Loss) | 1,069,643 | 1,069,643 | 3,919,189 | 3,919,189 |
Income Statement | ||
For the Month Ended May 31, 2016 | ||
Sales | ||
Statement of Retained Earnings | ||
For the Month Ended May 31, 2016 | ||
Balance Sheet | |||
May 31, 2016 | |||
Statement of Cash Flow | |||
For the Month Ended May 31, 2016 | |||
A depreciation schedule for semi-trucks of MartinezManufacturing Company was requested by your auditor soon afterDecember 31, 2018, showing the additions, retirements,depreciation, and other data affecting the income of the company inthe 4-year period 2015 to 2018, inclusive. The following data wereascertained.
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Can't get this to adjust on the balance sheet. The teachsaid the balance sheet total assets should be: 173, 652. I'm only175 off but the only 175 I see would be an expense.
Preliminary Financial Statements have already been prepared(2017 statements in the Final Project Workbook). Final adjustingentries have not yet been made. See table for possible adjustmentsthat indicate what will be recorded at 12/31/17 (fiscal year end).Use the following to complete year-to-year documentation and notesfor managing depreciation, inventory, and long-termdebt.
1. A supplier shipped $3,000 of ingredients on 12/29/17. Peytonreceives an invoice for the goods, as well as a bill for freightfor $175, all dated 12/29/17. Goods were shipped |
2. At 12/31/17, Peyton has $200 worth of merchandise onconsignment at Brunoâs House of Bacon. |
3. On 12/23/17, Peyton received a $1,000 deposit from Pet Globefor product to be shipped by Peyton in the second week ofJanuary. |
4. On 12/03/2017, a mixer with cost of $2,000, accumulateddepreciation $1,200, was destroyed by a forklift. As of 12/23/17,insurance company has agreed to pay $700 in January, 2018, foraccidental destruction. |
5. Note about later borrowing financials will show loan fromparents repaid and use of bank financing |
Unadjusted trial balance | Adjusting entries | Adjusted trial balance | ||||||||||||
Dr | Cr | ref | Dr | Cr | ref | Dr | Cr | |||||||
Cash | 67,520.04 | 1,000.00 | 68,520.04 | |||||||||||
Accounts Receivable | 68,519.91 | 68,519.91 | ||||||||||||
Other Receivable - Insurance | 700.00 | 700.00 | ||||||||||||
Baking Supplies | 15,506.70 | 3,000.00 | 18,506.70 | |||||||||||
Merchandise Inventory | 1,238.07 | 200.00 | 1,038.07 | |||||||||||
Consignment Inventory | 200.00 | 200.00 | ||||||||||||
Prepaid Rent | 2,114.55 | 2,114.55 | ||||||||||||
Prepaid Insurance | 2,114.55 | 2,114.55 | ||||||||||||
Misc. Supplies | 170.49 | 170.49 | ||||||||||||
Baking Equipment | 14,000.00 | 2,000.00 | 12,000.00 | |||||||||||
Accumulated Depreciation | 1,606.44 | 1,200.00 | 406.44 | |||||||||||
Customer Deposit | 1,000.00 | 1,000.00 | ||||||||||||
Accounts Payable | 20,262.11 | 3,175.00 | 23,437.11 | |||||||||||
Wages Payable | 3,383.28 | 3,383.28 | ||||||||||||
Interest Payable | 211.46 | 211.46 | ||||||||||||
Notes Payable | 5,000.00 | 5,000.00 | ||||||||||||
Common Stock | 20,000.00 | 20,000.00 | ||||||||||||
Beginning Retained earnings | 50,144.84 | 50,144.84 | ||||||||||||
Dividends | 105,000.00 | 105,000.00 | ||||||||||||
Bakery Sales | 327,322.55 | 327,322.55 | ||||||||||||
Merchandise Sales | 1,205.64 | 1,205.64 | ||||||||||||
Cost of Goods Sold - Baked | 105,834.29 | 105,834.29 | ||||||||||||
Cost of Goods Sold -Merchandise | 859.77 | 859.77 | ||||||||||||
Rent Expense | 24,549.19 | 24,549.19 | ||||||||||||
Wages Expense | 10,670.72 | 10,670.72 | ||||||||||||
Misc. Supplies Expense | 3,000.46 | 3,000.46 | ||||||||||||
Business License Expense | 2,045.77 | 2,045.77 | ||||||||||||
Misc. Expense | 1,363.84 | 175.00 | 1,538.84 | |||||||||||
Depreciation Expense | 677.86 | 677.86 | ||||||||||||
Insurance Expense | 1,091.08 | 1,091.08 | ||||||||||||
Advertising Expense | 1,549.74 | 1,549.74 | ||||||||||||
Interest Expense | 818.31 | 818.31 | ||||||||||||
Telephone Expense | 490.98 | 490.98 | ||||||||||||
Gain/Loss on disposal ofequipment | 100.00 | |||||||||||||
429,136.32 | 429,136.32 | 6,375.00 | 6,375.00 | 432,011.32 | 432,111.32 |