Account Title
Debit
Credit
Account Title
Debit
Credit
Cash and cash equivalents 325$ Cash and cash equivalents 364$
Short-term investments 155$ Short-term investments 523$
Accounts receivable 198$ Accounts receivable 218$
Merchandise inventories 441$ Merchandise inventories 500$
Prepaid expenses and other current assets 265$ Prepaid expenses and other current assets 307$
Property and Equipment
3,523
$
Property and Equipment
3,863
$
Accumulated depreciation and amortization
100
$
Accumulated depreciation and amortization
200
$
Long-term investments 220$ Long-term investments 250$
Goodwill 708$ Goodwill 710$
Intangible assets, net of accumulated amortization 151$ Intangible assets, net of accumulated amortization 89$
Accumulated amortization of intangible assets
10
$
Accumulated amortization of intangible assets
10
$
Other assets 156$ Other assets 182$
Current installments of capital lease obligations
2
$
Current installments of capital lease obligations
3
$
Accounts payable 276$ Accounts payable 295$
Accrued payroll, bonus and other benefits due team members 379$ Accrued payroll, bonus and other benefits due team members 436$
Dividends payable 43$ Dividends payable 45$
Other current liabilities 445$ Other current liabilities 473$
Long-term capital lease obligations, less current installments 60$ Long-term capital lease obligations, less current installments 64$
Other long-term liabilities 614$ Other long-term liabilities 514$
Common Stock 2,863$ Common Stock 2,974$
Treasury Stock
718
$
Treasury Stock
1,214
$
Retained earnings (beginning of year)
1,265
$
Retained earnings (beginning of year)
2,018
$
Sales 14,194$ Sales 16,061$
Cost of Goods Sold 8,926$ Cost of Goods Sold 10,086$
Selling, general and administrative expenses 4,032$ Selling, general and administrative expenses 4,497$
Pre-opening expenses 67$ Pre-opening expenses -$
Relocation, store closure and lease termination expenses 11$ Relocation, store closure and lease termination expenses -$
Investment and other income
12
$
Investment and other income
125
$
Income tax expense 367$ Income tax expense 415$
20,263
$
20,263
$
23,218
$
23,218
$
-$ -$
Additional Information:
The company purchased new equipment for $340, but there were no disposals of property/equipment.
The company purchased $398 in new investments (including both short and long-term), and sold no investments during the year.
The company made payments of $3 on its capital lease obligations, and incurred new capital lease obligations of $8.
The company paid $100 on its long-term liabilities and incurred no new long term liabilities during the year.
The company sold stock during the year, and there were no additional transactions affecting the common stock account.
The company purchased treasury stock during the year, and there were no additional transactions affecting the treasury stock account.
The company paid $50 in dividends in 2015 and declared dividends of $45 in 2016 and paid dividends of $43 in 2016.
2015 Trial Balance 2016 Trial Balance
S&K ENTERPRISES
Sales 14,194$
Investment and other income
12
$
Income Summary
14,206
$
Income Summary
13,403
$
Income Tax Expense
367
$
Relocation Expense 11$
Pre-Opening Expense
67
$
Gen. and Admin. Expenses
4,032
$
Cost of Goods Sold
8,926
$
Income Summary
803
$
Retained Earnings
803
$
Retained Earnings
50
$
Dividends
50
$
S&K ENTERPRISES
Closing Entries
For Year Ended 2015
Dec. 31st
Closing Dividends Account
Dec. 31st
Closing Expense Account
Closing Revenue Accounts
Closing Income Summary Account
Dec. 31st
Dec. 31st
Revenue
Sales 16,061$
Investment and other income 125
Total Revenue 16,186
Cost of Goods Sold 10,086
Gross Profit 6,100
Expenses
Selling, general and administrative expenses 4,497
Income tax expense 415
Total Expenses 4,912
Net Income 1,188
S&K ENTERPRISES
Income Statement
For Year Ended 2016
Sales
######
Investment and other income
125
$
Income Summary
######
Income Summary
######
Income Tax Expense
415
$
Selling, general and administrative expenses
4,497
$
Cost of Goods Sold
######
Income Summary
2,018
$
Retained Earnings
2,018
$
Retained Earnings
45
$
Dividends 45$
Closing Revenue Account
S&K ENTERPRISES
Closing Entries
For Year Ended 2016
Dec. 31st
Closing Expense Account
Closing Income Summary Account
Closing Dividends Account
Dec. 31st
Dec. 31st
Dec. 31st
Assets
Current Assets
Cash and cash equivalents 364$
Short-term investments 523
Accounts receivable 218
Merchandise inventories 500
Prepaid expenses and other current assets 307
Total Current Asets 1,912$
Long Term Assets
Property and Equipment 3,863
Accumulated depreciation and amortization 200
Long-term investments 250
Goodwill 710
Intangible assets, net of accumulated amortization 89
Accumulated amortization of intangible assets 10
Other assets 182
Current installments of capital lease obligations 3
Total Long Term Asets 4,887
Total Assets 6,799$
Liabilities
Current Liabilities
Current Installments of capital lease obligations 3
Accounts payable 295
Accrued payroll, bonus and other benefits due team members
436
Dividends payable 45
Other current liabilities 473
Total Current Liabilities 1,252$
Long Term Liabilities
Long-term capital lease obligations, less current installments
64
Other long-term liabilities 514
Total Long Term Liabilities 578$
Total Liabilities 1,830$
S&K ENTERPRISES
Balance Sheet
For Year Ended 2016
Stockholder's Equity
Common Stock 2,974
Treasury Stock 1,214
Retained earnings (beginning of year) 2,018
Total Equity 3,778$
Total Liabilities and Stockholder's Equity 5,608$
Cash Flow For Operating
Net income 1,188$
Increase in Depreciation and Amortization (100)
Increase in Accounts Recievable (20)
Increase in Merchandise Inventory (59)
Increase in Accounts Payable 19
Increase in short term investments (368)
Increase in Prepaid Expenses and Other Current Assets (42)
Increase in Current Installments of Capital Lease Obligations
1
Increase in Accrued Payroll 57
Increase in other Current Liabilities 28
Increase in dividends Payable 2
Cash Provided by Operating Activites 706$
Cash Flow for Investing
Increase in Property and Equipment (340)
Increase in Long Term Investments (30)
Increase in other Assets (26)
Cash Used by Investing Activities (396)
Cash Flows for Financing
Payment of Capital Lease (3)
Increase in Common Stock (111)
Increase in Treasury Stock (496)
Decrease in other Long Term Liabilities 100
Cash Used by Financing Activites (510)
Net Change in Cash (200)
Beginning Cash 325
S&K ENTERPRISES
Cash Flow Statement
For Year Ended 2016
Ending Cash 364
