ACCT 202 Simulation

accounting_problem.xlsm

Home >Business & Finance homework help >Accounting homework help >ACCT 202 Simulation

Audit

User Name	Computer Name	Open Time	Close Time	Open WB Name	Close WB Name
Andrew	ANDREW-PC	1/8/14 12:25	1/8/14 19:34	C:\Users\Andrew\AppData\Local\Temp\ACCT202ProjectSolutionNEW-2.xlsm	C:\Users\Andrew\Desktop\ACCT202ProjectSolutionNEW-2 Combined.xlsm
tbergsma	LTFACDDTBERGSMA	1/9/14 12:17	1/9/14 14:15	D:\Users\tbergsma\Downloads\ACCT202ProjectSolutionNEW-2 Combined.xlsm	D:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202ProjectSolutionNEW-2 Combined_Rev1.xlsm
Tim	PCTIMBASEMENT	1/10/14 16:20	1/11/14 17:02	C:\Users\Tim\Dropbox\ACCT202 PS W14\ACCT202ProjectSolutionNEW-2 Combined_Rev1.xlsm	C:\Users\Tim\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm
Tim	PCTIMBASEMENT	1/11/14 16:20	1/15/14 15:52	C:\Users\Tim\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm
tbergsma	LTFACDDTBERGSMA	1/15/14 14:51	1/15/14 16:11	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm
tbergsma	LTFACDDTBERGSMA	1/15/14 15:03	2/11/14 17:56	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm
tbergsma	LTFACDDTBERGSMA	1/15/14 15:52	2/12/14 11:44	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm
tbergsma	LTFACDDTBERGSMA	1/15/14 15:53	2/12/14 16:06	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm
tbergsma	LTFACDDTBERGSMA	2/11/14 17:22	2/21/14 10:32	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm	C:\Users\Tim\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm
tbergsma	LTFACDDTBERGSMA	2/12/14 8:34	9/3/14 11:37	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm	https://d.docs.live.net/213637fca0d9e955/Documents/DU Teaching/ACCT202PS/ACCT202 PS F14/ACCT202_PracticeSet_F14_Solution.xlsm
tbergsma	LTFACDDTBERGSMA	2/12/14 15:29	9/3/14 15:39	d:\Users\tbergsma\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm	d:\Users\tbergsma\OneDrive\Documents\DU Teaching\ACCT202PS\ACCT202 PS F14\ACCT202_PracticeSet_F14_Solution.xlsm
Tim	PCTIMBASEMENT	2/21/14 9:54	9/4/14 13:42	C:\Users\Tim\Dropbox\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm	https://d.docs.live.net/213637fca0d9e955/Documents/DU Teaching/ACCT202PS/ACCT202 PS F14/ACCT202_PracticeSet_F14_StudentFile_DU.xlsm
tbergsma	LTFACDDTBERGSMA	9/3/14 9:41	9/4/14 13:42	d:\Users\tbergsma\OneDrive\Documents\DU Teaching\ACCT202PS\ACCT202 PS W14\ACCT202_PracticeSet_W14_Solution.xlsm	https://d.docs.live.net/213637fca0d9e955/Documents/DU Teaching/ACCT202PS/ACCT202 PS F14/ACCT202_PracticeSet_F14_StudentFile_DU.xlsm
tbergsma	LTFACDDTBERGSMA	9/3/14 14:37	9/30/14 18:05	d:\Users\tbergsma\OneDrive\Documents\DU Teaching\ACCT202PS\ACCT202 PS F14\ACCT202_PracticeSet_F14_Solution.xlsm	C:\Users\Foundry Distribution\Desktop\ACCT202_PracticeSet_F14_StudentFile_DU.xlsm
tbergsma	LTFACDDTBERGSMA	9/4/14 12:38		d:\Users\tbergsma\OneDrive\Documents\DU Teaching\ACCT202PS\ACCT202 PS F14\ACCT202_PracticeSet_F14_Solution.xlsm
tbergsma	LTFACDDTBERGSMA	9/4/14 13:42		https://d.docs.live.net/213637fca0d9e955/Documents/DU Teaching/ACCT202PS/ACCT202 PS F14/ACCT202_PracticeSet_F14_StudentFile_DU.xlsm
Foundry Distribution	FOUNDRYDIST3	9/27/14 17:05		C:\Users\FOUNDR~1\AppData\Local\Temp\ACCT202_PracticeSet_F14_StudentFile_DU.xlsm

Instructions

Company Background & Scenario

The AC Speed Company is a well-established, publicly-held corporation, operating as a wholesaler in the auto parts industry. Specifically, AC Speed purchases auto parts from manufacturers and sells them to large business customers. Most purchases and sales are on account, with trade credit terms (specified below).

You’re a Davenport University student pursuing a bachelor’s degree in business and employed at the AC Speed Company this semester as an intern. You’ve worked in various departments and on several projects so far, learning a lot about the company’s business operations. Management seems impressed with your enthusiasm and the quality of your work.

The company’s accountant has just been called away for a family emergency and will likely be absent for a month or so. The General Manager asks you to take over the accountant’s regular duties on an interim basis. You’re nervous about doing so, but are confident that what you’ve learned in accounting class, plus your personal problem-solving skills, will make this a successful experience. What a great learning opportunity, not to mention an enhancement to your resume!

Project Overview & Instructions

A. Overview

a. Part 1 is a financial accounting activity that requires you to record various business transactions during the month, close the accounting records at the end of the month, and prepare the financial statements. These tasks relate to the steps in the accounting cycle that you learned in your first accounting course.`

b. Part 2 is an activity that requires you to analyze the company’s year-end financial statements to assist management in assessing the company’s position and making decisions about its future direction.

c. This is an individual, not a team, project. While you may discuss this project with others, you must prepare and submit your own work. Refer to the academic integrity statement in the project workbook.

d. Before starting work, review the entire project: all instructions, business transactions descriptions, workbook sections, check figures, due dates, and submission requirements.

B. General Instructions

a. The parts of this project, including specific business transactions and steps in the accounting cycle, must be completed in sequence. This is particularly important with business transactions relating to purchases and sales of inventory.

b. You are encouraged to use your textbook’s table of contents (front) or index (back) to locate helpful references.

c. These project instructions will not address every detail of every task. If you have questions, ask your instructor.

d. Most of your work for this project will be accomplished in Excel. A basic skill level in this application is expected. That is, you should be able to such things as move around in a workbook, enter data in cells, use the sum function, compose basic formulas, and save your work.

e. If rounding is required, round to the nearest cent. For example, $96.835 would be entered as $96.84.

f. Use the check figures provided to check your work as you progress through the project. Investigate any discrepancies and correct them as you go along.

g. Refer to the project rubric to determine how components of the project will be assessed.

h. Appearance counts! Pay attention to the format, to spelling, and to other details of appearance. This reflects on management’s perception of you as a professional.

C. Submission Requirements

a. Final submission of all parts of this project must be in electronic (not paper) form. That is, you will submit your completed work via an assignment link in a Blackboard course site or via an email attachment. Follow your instructor’s directions.

b. Save backup copies of your work. If you have multiple versions of the project, clearly label them for your own reference and to ensure that you submit the appropriate version to your instructor.

c. You must read the academic integrity statement in the project workbook and enter your student ID number on the form to signify your agreement with and adherence to that statement. Final project submissions will not be accepted without this.

d. Due dates for the parts of this project will be provided by your instructor in the course syllabus, in the Blackboard course site, or in a designated handout. Be sure to enter these on your personal calendar and plan your work on this project accordingly.

D. Credit Terms & Inventory Accounting

a. When AC Speed purchases merchandise from a supplier or vendor on account, they receive credit terms of 2/15, net 30.

b. When AC Speed sells merchandise to a customer on account, they offer that customer credit terms of 2/20, net 30

c. AC Speed accounts for the specific types of merchandise in their inventory with a set of subsidiary ledgers (inventory control cards). The balances in these subsidiary ledger records, in total, must equal the balance in the Merchandise Inventory account in the general ledger.

d. AC Speed uses a perpetual inventory accounting system and a last-in, first-out (LIFO) inventory costing method.

E. Financial Accounting Steps:

a. Record each business transaction, in sequence by date, in the appropriate special journal or the general journal. Also, immediately record any transaction involving inventory, a customer, or a vendor in the appropriate subsidiary ledger record.

b. At the end of the month, post each entry in the general journal to the general ledger.

c. At the end of the month, total each column in each special journal and post that total to the general ledger. EXCEPT for entries in the “Other” columns, which must be posted individually to the general ledger.

d. When posting is completed, bring the balance in each general ledger account up to date.

e. When posting is completed, bring the balance in each subsidiary ledger account up to date.

f. At this point in the closing process, the balances of all subsidiary ledger accounts would be totaled and that total compared to the balance of the corresponding control account in the general ledger. That is, the total of inventory control cards would be compared to the Merchandise Inventory balance; the customer subsidiary ledger total to the Accounts Receivable balance; and the vendor subsidiary ledger total to the Accounts Payable balance. Any discrepancies would be investigated and corrected. Given the limited scope of this project scenario, reconciliation between subsidiary ledgers and control accounts is not possible.

g. List all general ledger account balances in the unadjusted trial balance columns of the worksheet. Use the sum function in Excel to total the debit and credit columns. These totals should be equal.

h. Prepare the end-of-month adjusting entries. Record these entries in the general journal and post them to the general ledger. Also record the adjusting entries in the designated columns in the worksheet and total the debit and credit columns. These totals should be equal.

i. Update general ledger account balances after posting adjusting journal entries.

j. Complete the unadjusted trial balance columns on the worksheet. Use Excel formulas to carry balances from the unadjusted trial balance columns, adjusting as necessary by entries in the adjustments columns. Check your results against the balances recorded in the general ledger.

k. Sort the dollars recorded in the adjusted trial balance columns into either the income statement or the balance sheet columns. Total these columns. The entry of net income should cause the debit and credit columns to equal one another.

l. Use the income statement information on the worksheet to prepare a multi-step income statement in good form. Look at examples of this income statement format in your textbook.

m. Prepare a statement of retained earnings in good form. Look at examples of this statement in your textbook. Remember that net income from your just-completed income statement is a necessary component of this statement.

n. Use the balance sheet information on the worksheet to prepare a classified balance sheet. Remember that the ending retained earnings balance from the just-completed statement is a necessary component of the equity section of the balance sheet.

o. Prepare the end-of-month closing entries. Record these entries in the general journal and post them to the general ledger. Update balances in the general ledger accounts.

p. List the general ledger accounts that have balances other than zero on the post-closing trial balance. The totals of the debit column and the credit column should be equal.

F. Part 2 of this project requires you to analyze the company’s year-end financial statements to assist the management of AC Speed in assessing the company’s financial position and making decisions about its future direction.

a. Before beginning this part of the project, you will find it helpful to review Chapter 17 on financial statement analysis. Page 707, a summary of ratios, will be particularly useful.

b. Tabs in the project workbook provide trial balance data for the current and two preceding years for AC Speed and a location to calculation a selection of ratios. Use the trial balance data and the formulas in Chapter 17 to compute the ratios listed for each of the three years. YOU MUST STRUCTURE YOUR RATIO CALCULATIONS AS FORMULAS AND LINKS TO APPROPRIATE CELLS ON THE TRIAL BALANCE TAB. You will lose points by simply typing the final ratio numbers or percentages.

c. After you calculate the ratios, consider whether there is a trend over the three-year period. Also compare the ratios you calculated for AC Speed with those listed as industry averages. Review the information in Chapter 17 to help you determine what the ratios are telling you about various aspects of AC Speed’s business operations.

d. Use Word to prepare a memo (minimum 500 words) to AC Speed’s general manager, addressing the three questions listed at the bottom of the ratios tab. This should be formatted as a business memo, not an APA paper. Be sure to include a brief introduction and conclusion in the memo. Each question should be addressed in one or two paragraphs in the body of the memo. Remember that the general manager will expect details/facts/ratios to support statements you may make about the status of the business. Your writing should be concise, clear, and readable, with a fairly formal tone (since it’s addressed to AC Speed’s general manager, who is likely to share it with other members of management). Your instructor will provide the due date and submission requirements for this part of the project.

Transactions

JUNE JOURNAL TRANSACTIONS
June 1	Signed a 3 year 7.1% , $210000 note payable with First Bank.
June 1	Purchased 3100 GPS units on credit from Navistar for $35.5 per unit.
June 1	Issued 5,000 shares of common stock for $10 per share (Refer to General ledger for description of common stock).
June 1	Sold 1983 DVD players on account to Toyota for $75 per unit, Invoice #5555
June 2	Sold 3400 GPS units on account to Kia for $58 per unit, Invoice #5556.
June 2	Purchased office supplies from Office Max on credit for $1150
June 2	Sold 975 docking stations for $66 per unit and 1925 GPS units for $82 per unit on account to Nissan, Invoice #5557.
June 3	The Board of Directors declared a cash dividend of $5 per share for shareholders of record on June 5th, payable on June 12th.
June 4	Received payment from Toyota for May 11th sale.
June 4	Rented part of the warehouse to a new tenant and received $5400 for three months rent starting in June
June 5	Paid $2,100 to Michigan Utility Co. for utilities bill that was recorded in May as an Account Payable, Check #5278.
June 7	Received and paid expense reports for travel and entertainment totaling $900 , Check #5279.
June 8	Paid for office supplies purchased on June 2nd, Check #5280.
June 11	Paid in full for the June 1 purchase from Navistar, Check #5281.
June 11	Received a bill from the law firm of Larry, Moe & Curly for $5400 , payable upon receipt, for bond consulting fees, Check #5282.
June 12	Paid the dividend that was declared on June 3, Check #5283.
June 13	Took advantage of a special deal to purchase 3250 DVD players on account from JVC for $48 per unit.
June 13	Purchased 850 GPS units on credit from Magellan for $33 per unit.
June 15	Sold 2000 DVD players on credit to Ford Motor Co. for $89 per unit, Invoice 5558.
June 15	Check # 5284 was issued for payroll: $14500 for salaried and $4750 for wages (wage expense)
June 16	Purchased 1800 docking stations on credit from Samsung for $42 per unit.
June 17	Issued a credit to Kia for the return of 350 defective units from the June 2nd sale. These units has a cost basis of $36 per unit.
June 17	Returned the 350 defective units received from Kia to Navistar.
June 18	Received payment in full from Toyota for the June 1st sale.
June 20	While inspecting the June 13th purchase, it was discovered that the GPS units were programmed for South America instead of North America. AC Speed returned the entire order to Magellan.
June 20	A bankruptcy judge disallowed AC Speed's claim for $5,000 due from General Motors. Management Decided to write off this accounts receivable.
June 22	Sold 1650 docking stations on credit to Kia for 64.5 per unit, Invoice #5559.
June 23	Paid $75000 of the $162500 owed to JVC from May 25, Check #5285.
June 23	Received payment from Ford Motor Co. for $175000 of the $300000 owed from May 5.
June 24	Purchased a $100 international phone card for one of the sales representative's upcoming European business trip, Check #5286.
June 25	Paid in full for the purchase from JVC on June 13, Check #5287
June 26	Purchased 1250 docking station from Samsung for $41 per unit paying in cash, Check #5288
June 27	Sold 1500 docking stations on credit to Honda for $61 per unit, Invoice 5560.
June 27	Hired and paid a consultant $75000 to devise a marketing plan. AC Speed's management felt this was necessary to develop brand awareness. Check #5289.
June 28	AC Speed is behind in its mortgage payments to Bank of America. Paid a total of $10000 ( $2000 principal and $8000 interest), Check #5290.
June 29	Received payment in full from Honda for the June 27th transaction.
June 29	Paid in full for the purchase from Magellan on May 31st, Check #5291.
June 29	Check # 5292 was issued for payroll: $14500 for salaried and $4750 for wages (wage expense)
June 30	Paid the first month's principal payment of $15,000 on the note payable. In addition, paid one month's interest, Check #5293
June 30	Issued bonds payable at face value for $450,000
*All purchases on account terms of 2/15, n/30
**All credit sales have terms of 2/20, n/30
June Month-end Adjustments:
( A )	AC Speed has earned one month of the prepaid rent received from their tenant at the beginning of June.
( B )	The Company took a physical count of Office Supplies on June 30 and found the following to be on hand: Office Supplies - $2500
( C )	AC Speed estimates bad debt expense on a monthly basis rather than waiting until year-end. The company uses the allowance method. Based on recent industry estimates, AC Speed estimates that the allowance account should be 2% of accounts receivable.
( D )	The Company took a physical inventory count on June 30 and found the following inventory on hand: Merchandise Inventory - $120000
( E )	The Balance in the prepaid insurance account at the beginning of June represents 4 months of coverage. Record the amount of insurance for June.
( F )	Depreciation on the company's fixed assets for the month of June is as follows:
	1. The furniture and equipment for the warehouse was purchased a few years ago for 10000. These assets have a 4-year life, an expected salvage value of 1000 and are depreciated using the straight-line method.
	2. The furniture and equipment for the office was purchased last year for 8500. these assets have a 7 year life, an expected salvage value of 1500 and are depreicated using stright-line method.

Main Menu

/xl/drawings/drawing1.xml#'Main%20Menu'!A1

Products

Product Name	Description
GPS	In vehicle GPS unit
DVD Player	In vehicle DVD player
Docking Station	Cell phone / Mobile Communications Docking Station

Chart of Accounts GL

AC Speed Corporation
Chart of Accounts - General Ledger
BALANCE SHEET ACCOUNTS
Assets
Current Assets
Acct #	Account Name
100	Cash
102	Accounts Receivable
103	Allowance for Doubtful Accounts
104	Merchandise Inventory
105	Office Supplies
106	Prepaid Insurance
Property, Plant and Equipment
140	Land
145	Building
146	Accumulated Depreciation - Building
151	Equipment & Furniture - Warehouse
152	Accumulated Depreciation - Equip & Furn. - Warehouse
153	Equipment & Furniture - Office
154	Accumulated Depreciation - Equip & Furn. - Office
Liabilities
Current Liabilities
201	Accounts Payable
202	Wages Payable
203	Interest Payable
204	Dividends Payable
205	Unearned Rent
Long-Term Liabilities
250	Notes Payable
251	Bonds Payable
252	Mortgage (Warehouse) Payable
Capital (Equity)
300	Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding
301	Paid In Capital - Excess of Par
330	Retained Earnings
340	Treasury Stock
INCOME STATEMENT ACCOUNTS
Revenue
500	Sales
510	Sales Discounts
511	Sales Returns & Allowances
Cost of Goods Sold
600	Cost of Goods Sold
Operating Expenses
700	Wage Expense (hourly workers)
701	Salaries Expense (Exempt Staff)
702	Marketing Expense
703	Travel and Entertainment Expense
704	Bad Debt Expense
705	Property Tax Expense
706	Office Maintenance & Repair Expense
707	Legal Expenses
708	Insurance Expense
709	Utilities Expense
710	Office Supplies Expense
711	Telecommunications Expense
712	Depreciation Expense - Equip & Furniture - Warehouse
713	Depreciation Expense - Equip & Furniture - Office
Other Income
800	Rent Income
Other Expenses
900	Interest Expense
Other
1000	Income Summary

Chart of Accounts AR Ledger

	AC Speed Corporation
Chart of Accounts - Accounts Receivable Ledger
	Account Name
	General Motors
	Ford Motor Co.
	Toyota
	Honda
	Kia
	Nissan

Chart of Accounts AP Ledger

AC Speed Corporation
Chart of Accounts - Accounts Payable Ledger
	Account Name
	Garmin
	JVC
	Magellan
	Michigan Utility Company
	Motorola
	Navistar
	Office Max
	Samsung

Sales Journal

AC Speed Corporation
Sales Journal
Date	Invoice No.	A/R Account Debited	Post Ref	A/R - DR Sales - CR	CGS - DR Inv - CR

Purchases Journal

AC Speed Corporation
Purchases Journal
Date	Creditors Account Credited	Other Account - Debited	Post Ref	A/P - CR	Inventory - DR	Office Supplies - DR	Other - DR

Cash Receipts Journal

AC Speed Corporation
Cash Receipts Journal
Date	Acct - CR Customer Acct Other Acct	Post Ref	Sales - CR	A/R - CR	Other - CR	Sale Discount - DR	Cash - DR	CGS - DR Inv - CR

Cash Payments Journal

AC Speed Corporation
Cash Payments Journal
Date	Check #	Payee	Account Debited	Post Ref	Cash - CR	Inventory - CR	Other - DR	A/P - DR

General Journal

AC Speed Corporation
General Journal
Date	Accounts	Post Ref	DEBIT	CREDIT

General Journal ADJ

AC Speed Corporation
General Journal
Date	Accounts	Post Ref	DEBIT	CREDIT

General Journal CLOSING

AC Speed Corporation
General Journal
Date	Accounts	Post Ref	DEBIT	CREDIT

General Ledger

Account:	Cash				Account No.	100
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance				$ 75,000.00
							120000
Account:	Accounts Receivable				Account No.	102
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	4
31-May	Balance				$ 490,000.0
Account:	Allowance for Doubtful Accounts				Account No.	103
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance					$ 15,000.00
Account:	Merchandise Inventory				Account No.	104
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance				$ 334,000.00
Account:	Office Supplies				Account No.	105
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance				$ 2,000.00
Account:	Prepaid Insurance				Account No.	106
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May					$ 14,000.00
Account:	Land				Account No.	140
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
1-Jun	Balance Carried Forward		$ 2,000,600.00		$ 2,000,600.00
Account:	Building				Account No.	145
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
1-Jun	Balance Carried Forward		$ 1,500,000.00		$ 1,500,000.00
Account:	Accumulated Depreciation - Building				Account No.	146
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance Carried Forward			$ 1,500,000.00		$ 1,500,000.00
Account:	Equipment & Furniture - Warehouse				Account No.	151
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance				$ 10,000.00
Account:	Accumulated Depreciation - Equip & Furn. - Warehouse				Account No.	152
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance					$ 1,900.00
Account:	Equipment & Furniture - Office				Account No.	153
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance				$ 8,500.00
Account:	Accumulated Depreciation - Equip & Furn. - Office				Account No.	154
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance					$ 1,600.00
Account:	Accounts Payable				Account No.	201
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance					$ 948,600.00
Account:	Wages Payable				Account No.	202
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Interest Payable				Account No.	203
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Dividends Payable				Account No.	204
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Unearned Rent				Account No.	205
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Notes Payable				Account No.	250
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
1-Jun				$ - 0		$ - 0
Account:	Bonds Payable				Account No.	251
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
1-Jun				$ - 0		$ - 0
Account:	Mortgage (Warehouse) Payable				Account No.	252
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
1-Jun				0		$ 200,000.00
Account:	Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding				Account No.	300
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance					$ 60,000.00
Account:	Paid In Capital - Excess of Par				Account No.	301
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May						$ 1,341,000.00
Account:	Retained Earnings				Account No.	330
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May	Balance Brought Forward					$ 366,000.00
Account:	Treasury Stock				Account No.	340
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Sales				Account No.	500
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Sales Discounts				Account No.	510
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Sales Returns & Allowances				Account No.	511
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Cost of Goods Sold				Account No.	600
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Wage Expense (hourly workers)				Account No.	700
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Salaries Expense (Exempt Staff)				Account No.	701
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Marketing Expense				Account No.	702
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Travel and Entertainment Expense				Account No.	703
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Bad Debt Expense				Account No.	704
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Property Tax Expense				Account No.	705
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Office Maintenance & Repair Expense				Account No.	706
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Legal Expenses				Account No.	707
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Insurance Expense				Account No.	708
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Utilities Expense				Account No.	709
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Office Supplies Expense				Account No.	710
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Telecommunications Expense				Account No.	711
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Depreciation Expense - Equip & Furniture - Warehouse				Account No.	712
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Depreciation Expense - Equip & Furniture - Office				Account No.	713
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Rent Income				Account No.	800
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Interest Expense				Account No.	900
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Income Summary				Account No.	1000
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT

AR Ledger

Account:	General Motors
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May				$ 5,000.00
20-Jun			$ - 0	$ 5,000.00
Account:	Ford Motor Co.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
5-May		$ 300,000.00		$ 300,000.00
Account:	Toyota
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
11-May		$ 185,000.00		$ 185,000.00
Account:	Honda
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Kia
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Nissan
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT

AP Ledger

Account:	Garmin			Account No.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May					$ 18,000.00
Account:	JVC			Account No.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May			$ 162,500.00		$ 162,500.00
Account:	Magellan			Account No.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May					$ 30,000.00
Account:	Motorola			Account No.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May					$ 58,000
Account:	Navistar			Account No.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
31-May					$ 50,000.00
Account:	Office Max			Account No.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Samsung			Account No.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT

Worksheet June 2013

		Unadjusted				Adjusted		Income		Bal. Sheet
		Trial Balance		Adjustments		Trial Balance		Statement		Stmt. Own. Equity
Acct. No.	Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
100	Cash
102	Accounts Receivable
103	Allowance for Doubtful Accounts
104	Merchandise Inventory
105	Office Supplies
106	Prepaid Insurance
140	Land
145	Building
146	Accumulated Depreciation - Building
151	Equipment & Furniture - Warehouse
152	Accumulated Depreciation - Equip & Furn. - Warehouse
153	Equipment & Furniture - Office
154	Accumulated Depreciation - Equip & Furn. - Office
201	Accounts Payable
202	Wages Payable
203	Interest Payable
204	Dividends Payable
205	Unearned Rent
250	Notes Payable
251	Bonds Payable
252	Mortgage (Warehouse) Payable
300	Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding
301	Paid In Capital - Excess of Par
330	Retained Earnings
340	Treasury Stock
500	Sales
510	Sales Discounts
511	Sales Returns & Allowances
600	Cost of Goods Sold
700	Wage Expense (hourly workers)
701	Salaries Expense (Exempt Staff)
702	Marketing Expense
703	Travel and Entertainment Expense
704	Bad Debt Expense
705	Property Tax Expense
706	Office Maintenance & Repair Expense
707	Legal Expenses
708	Insurance Expense
709	Utilities Expense
710	Office Supplies Expense
711	Telecommunications Expense
712	Depreciation Expense - Equip & Furniture - Warehouse
713	Depreciation Expense - Equip & Furniture - Office
800	Rent Income
900	Interest Expense
	Total
	Net Income (Loss)
	Total
	Total

IS June 2013

AC Speed Corporation

Income Statement

Stmt RE June 2013

AC Speed Corporation

Statement of Retained Earnings

BS June 2013

AC Speed Corporation

Balance Sheet

Post Closing Trial Balance

AC Speed Corporation
Post-closing Trial Balance
	DEBIT	CREDIT
			0

Adjusted Trial Balances

	B/S Adjuster	112%	112%	106%	106%	110%	110%	109%	109%
	I/S Adjuster	12	12	102%	102%	102%	102%	101%	101%
		December 31, 2012		December 31, 2011		December 31, 2010		December 31, 2009		May 31, 2012
		Adjusted		Adjusted		Adjusted		Adjusted		Adjusted
		Trial Balance		Trial Balance		Trial Balance		Trial Balance		Trial Balance
Acct. No.	Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
100	Cash	299,000	0	316,940	0	348,634	0	380,011	0	75,000
102	Accounts Receivable	948,800	0	846,728	0	931,401	0	1,015,227	0	490,000		0
103	Allowance for Doubtful Accounts	0	16,800	0	17,808	0	19,589	0	21,352		15,000
104	Merchandise Inventory	601,856	0	637,967	0	701,764	0	764,923	0	334,000
105	Office Supplies	2,240	0	2,374	0	2,612	0	2,847	0	2,000
106	Prepaid Insurance	15,680	0	16,621	0	18,283	0	20,111	0	14,000
140	Land	2,000,600	0	2,000,600	0	2,000,600	0	2,000,600	0	2,000,600
145	Building	1,500,000		1,500,000		1,500,000		1,500,000		1,500,000
146	Accumulated Depreciation - Building		1,500,000		1,500,000		1,500,000		1,500,000		1,500,000
151	Equipment & Furniture - Warehouse	11,200	0	11,872	0	13,059	0	14,235	0	10,000
152	Accumulated Depreciation - Equip & Furn. - Warehouse	0	2,128	0	2,256	0	2,481	0	2,705		1,900
153	Equipment & Furniture - Office	9,520	0	10,091	0	11,100	0	12,099	0	8,500
154	Accumulated Depreciation - Equip & Furn. - Office	0	1,792	0	1,900	0	2,089	0	2,278		1,600
201	Accounts Payable	0	812,432	0	861,178	0	947,296	0	978,338		948,600
202	Wages Payable	0	0	0	0	0	0	0	0		0
203	Interest Payable	0	0	0	0	0	0	0	0		0
204	Dividends Payable	0	0	0	0	0	0	0	0		0
205	Unearned Rent	0	0	0	0	0	0	0	0		0
250	Notes Payable	0	0	0	0	0	0	0	0		0
251	Bonds Payable	0	0	0	0	0	0	0	0		0
252	Mortgage (Warehouse) Payable	0	124,000	0	131,440	0	144,584	0	157,597		200,000
300	Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding	0	65,000	0	65,000	0	65,000	0	65,000		60,000
301	Paid In Capital - Excess of Par	0	1,545,000	0	1,545,000	0	1,545,000	0	1,545,000		1,341,000
330	Retained Earnings	0	1,171,744		1,071,044		961,860		1,244,834		366,000
340	Treasury Stock	0	0	0	0	0	0	0	0	0	0
500	Sales	0	8,850,000	0	8,874,000	0	9,051,480	0	9,141,995		725,000
510	Sales Discounts	0	0	0	0	0	0	0	0	0	0
511	Sales Returns & Allowances	0	0	0	0	0	0	0	0	0	0
600	Cost of Goods Sold	7,656,000	0	7,661,551	0	7,625,748	0	7,852,006	0	638,000
700	Wage Expense (hourly workers)	120,000	0	122,400	0	124,848	0	126,096	0	10,000
701	Salaries Expense (Exempt Staff)	360,000	0	367,200	0	374,544	0	378,289	0	30,000
702	Marketing Expense	288,000	0	293,760	0	299,635	0	302,632	0	24,000
703	Travel and Entertainment Expense	27,600	0	28,152	0	28,715	0	29,002	0	2,300
704	Bad Debt Expense	0	0	0	0	0	0	0	0	0	0
705	Property Tax Expense	0	0	0	0	0	0	0	0	0	0
706	Office Maintenance & Repair Expense	6,000	0	6,120	0	6,242	0	6,305	0	500
707	Legal Expenses	198,600	0	202,572	0	206,623	0	208,690	0	16,550
708	Insurance Expense	24,000	0	24,480	0	24,970	0	25,219	0	2,000
709	Utilities Expense	12,000	0	12,240	0	12,485	0	12,610	0	1,000
710	Office Supplies Expense	3,480	0	3,550	0	3,621	0	3,657	0	290
711	Telecommunications Expense	660	0	673	0	687	0	694	0	55
712	Depreciation Expense - Equip & Furniture - Warehouse	1,980	0	2,020	0	2,060	0	2,081	0	165
713	Depreciation Expense - Equip & Furniture - Office	1,680	0	1,714	0	1,748	0	1,765	0	140
800	Rent Income	0	0	0	0	0	0	0	0	0	0
900	Interest Expense	0	0	0	0	0	0	0	0	0	0
	Total	14,088,896	14,088,896	14,069,625	14,069,625	14,239,379	14,239,379	14,659,098	14,659,098	5,159,100	5,159,100
Variance		0.00		0.00		0.00		0.00		0.00

IS Comparative

AC Speed Corporation
Income Statement
	12/31/12	12/31/11	12/31/10	12/31/09	5/31/12
Common Dividends	19,200	16,130	15,000	1,600
Weighted Average Common Shares	65,000	65,000	65,000	62,500
Market Price per Common Share	35.00	34.00	31.00	34.00

BS Comparative

AC Speed Corporation
Balance Sheet
	12/31/12	12/31/11	12/31/10	12/31/09	5/31/12

Ratios Historical

	12/31/12	12/31/11	12/31/10	INDUSTRY
Liquidity
Current Ratio (One decimal place)				2.2
Acid Test Ratio (One decimal place)				1.6
Receivables Turnover (One decimal place)				10
Inventory Turnover (One decimal place)				9.5
Profitability
Profit Margin (% with two decimal places)				3.5%
Asset Turnover (two decimal places)				1.9
Return on Assets (% one decimal place)				10.5%
Return on Common Shareholders' Equity
(One decimal place)				18.3%
Earnings per Share (EPS) (Two decimal places)				3.05
Price-Earnings (P/E ) Ratio (Two decimal places)				14.8
Payout Ratio (% One decimal place)				15.0%
Solvency Ratios
Debt to Total Assets Ratio (% One decimal place)				42.2%
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Common Dividends	19,200	16,130	15,000
Weighted Average Common Shares	65,000	65,000	63,750
Market Price per Share	35	34	31
INSTRUCTIONS:
Calculate all of the ratios listed above.
Evaluate the company's performance trend relative to liquidity, profitability and solvency.
Evaluate the company's performance relative to liquidity, profitability and solvency for their industry for the three years.
Relate to the company management in which areas they are performing well and in which areas they need improvement.

Inventory Control

Shoe:

GPS

Beginning Inventory (BI)

Purchases

Sales

Ending Inventory (EI)

Date

BI Units

BI $/Unit

BI $

Purch Units

Purch $/Unit

Purch $

Sale Units (CGS)

Sale $/Unit (CGS)

Sale $ (CGS)

EI Units

EI $/Unit

EI $

1-Jun

3300

$ 35.00

$ 115,500.00

$ - 0

$ 115,500.00

1-Jun

2-Jun

13-Jun

17-Jun

20-Jun

27-Jun

Shoe:

DVD Player

Beginning Inventory (BI)

Purchases

Sales

Ending Inventory (EI)

Date

BI Units

BI $/Unit

BI $

Purch Units

Purch $/Unit

Purch $

Sale Units (CGS)

Sale $/Unit (CGS)

Sale $ (CGS)

EI Units

EI $/Unit

EI $

1-Jun

2500

$ 65.00

$ 162,500.00

$ - 0

$ 162,500.00

1-Jun

13-Jun

15-Jun

Shoe:

Docking Station

Beginning Inventory (BI)

Purchases

Sales

Ending Inventory (EI)

Date

BI Units

BI $/Unit

BI $

Purch Units

Purch $/Unit

Purch $

Sale Units (CGS)

Sale $/Unit (CGS)

Sale $ (CGS)

EI Units

EI $/Unit

EI $

1-Jun

1400

$ 40.00

$ 56,000.00

$ - 0

$ 56,000.00

2-Jun

16-Jun

22-Jun

26-Jun

27-Jun

Data

Date	Type of Tran.	Journal	Other/ACT	Units	$ per Unit	Total $	Discount	Discount %	Balance Owing	Amt of Discount	Amt of Balance	L/T Payable	Interest	Duration (years)	Interest Paid	Balance Paid	Concatenate1	Concatenate2	Concatenate3	Concatenate4	Concatenate5	Concatenate6	Concatenate7	Concatenate8	Concatenate9	Concatenate10
6/1/13	Financing	Cash Receipts Journal	Note Payable									$ 210,000.00	7.1%	3			Signed a	3	year	7.1	210000	note payable with First Bank.				Signed a 3 year 7.1% , $210000 note payable with First Bank.
6/1/13	Purchase	Purchases Journal		3100	$ 35.50	$ 110,050.00	Yes	2%	$ 110,050.00								Purchased	3100	GPS units on credit from Navistar for $	35.5	per unit.					Purchased 3100 GPS units on credit from Navistar for $35.5 per unit.
6/1/13	Sale	Sales Journal		1983	$ 75.00	$ 148,725.00	Yes	2%	$ 148,725.00								Sold	1983	DVD players on account to Toyota for	75	per unit, Invoice #5555					Sold 1983 DVD players on account to Toyota for $75 per unit, Invoice #5555
6/2/13	Purchase	Purchases Journal				$ 1,150.00	Yes	2%	$ 2,000.00								Purchased office supplies from Office Max on credit for $	1150								Purchased office supplies from Office Max on credit for $1150
6/2/13	Sale	Sales Journal		3400	$ 58.00	$ 197,200.00	Yes	2%	$ 197,200.00								Sold	3400	GPS units on account to Kia for	58	per unit, Invoice #5556.					Sold 3400 GPS units on account to Kia for $58 per unit, Invoice #5556.
6/2/13	Sale	Sales Journal		975	$ 66.00	$ 64,350.00	Yes	2%									Sold	975	docking stations for	66	per unit and	1925	GPS units for	$ 82.00	per unit on account to Nissan, Invoice #5557.	Sold 975 docking stations for $66 per unit and 1925 GPS units for $82 per unit on account to Nissan, Invoice #5557.
6/2/13	Sale	Sales Journal		1925	$ 82.00	$ 157,850.00	Yes	2%
6/4/13	Cash Receipt	Cash Receipts Journal				$ 185,000.00	No	2%	$ - 0	$ - 0	$ - 0						Received payment from Toyota for May 11th sale.									Received payment from Toyota for May 11th sale.
6/7/13	Cash Payments	Cash Payments Journal	Travel & Ent. Exp.			$ 900.00	No		$ - 0	$ - 0	$ - 0						Received and paid expense reports for travel and entertainment totaling	900	, Check #5279.							Received and paid expense reports for travel and entertainment totaling $900 , Check #5279.
6/8/13	Cash Payments	Cash Payments Journal				$ 1,200.00	Yes	2%	$ 1,200.00	$ 24.00	$ 1,176.00						Paid for office supplies purchased on June 2nd, Check #5280.									Paid for office supplies purchased on June 2nd, Check #5280.
6/11/13	Cash Payment	Cash Payments Journal				$ 107,849.00	Yes	2%	$ 110,050.00	$ 2,201.00	$ 107,849.00						Paid in full for the June 1 purchase from Navistar, Check #5281.									Paid in full for the June 1 purchase from Navistar, Check #5281.
6/11/13	Cash Payment	Cash Payments Journal	Legal Expenses			$ 5,400.00	no		$ - 0	$ - 0	$ - 0						Received a bill from the law firm of Larry, Moe & Curly for	5400	, payable upon receipt, for bond consulting fees, Check #5282.							Received a bill from the law firm of Larry, Moe & Curly for $5400 , payable upon receipt, for bond consulting fees, Check #5282.
6/13/13	Purchase	Purchases Journal		3250	$ 48.00	$ 156,000.00	Yes	2%	$ 156,000.00								Took advantage of a special deal to purchase	3250	DVD players on account from JVC for	48	per unit.					Took advantage of a special deal to purchase 3250 DVD players on account from JVC for $48 per unit.
6/13/13	Purchase	Purchases Journal		850	$ 33.00	$ 28,050.00	Yes	2%	$ 28,050.00								Purchased	850	GPS units on credit from Magellan for	33	per unit.					Purchased 850 GPS units on credit from Magellan for $33 per unit.
6/15/13	Salaries	Cash Payments Journal				$ 14,500.00	no		$ - 0	$ - 0	$ - 0						Check # 5284 was issued for payroll:	14500	for salaried and	$ 4,750.00	for wages (wage expense)					Check # 5284 was issued for payroll: $14500 for salaried and $4750 for wages (wage expense)
6/15/13	Wages	Cash Payments Journal				$ 4,750.00	no		$ - 0	$ - 0	$ - 0
6/15/13	Sales	Sales Journal		2000	$ 89.00	$ 178,000.00	Yes	2%	$ 178,000.00								Sold	2000	DVD players on credit to Ford Motor Co. for	89	per unit, Invoice 5558.					Sold 2000 DVD players on credit to Ford Motor Co. for $89 per unit, Invoice 5558.
6/16/13	Purchase	Purchases Journal		1800	$ 42.00	$ 75,600.00	Yes	2%	$ 75,600.00								Purchased	1800	docking stations on credit from Samsung for	42	per unit.					Purchased 1800 docking stations on credit from Samsung for $42 per unit.
6/18/13	Cash Receipts	Cash Receipts Journal				$ 145,750.50	Yes	2%	$ 148,725.00	$ 2,974.50	$ 145,750.50						Received payment in full from Toyota for the June 1st sale.									Received payment in full from Toyota for the June 1st sale.
6/22/13	Sale	Sales Journal		1650	$ 64.50	$ 106,425.00	Yes	2%	$ 106,425.00								Sold	1650	docking stations on credit to Kia for	64.5	per unit, Invoice #5559.					Sold 1650 docking stations on credit to Kia for 64.5 per unit, Invoice #5559.
6/23/13	Cash Payment	Cash Payments Journal				$ 75,000.00	no		$ 162,500.00	$ - 0	$ 87,500.00						Paid	75000	of the	162500	owed to JVC from May 25, Check #5285.					Paid $75000 of the $162500 owed to JVC from May 25, Check #5285.
6/23/13	Cash Receipt	Cash Receipts Journal				$ 175,000.00	no		$ 300,000.00	$ - 0	$ 125,000.00						Received payment from Ford Motor Co. for	175000	of the	300000	owed from May 5.					Received payment from Ford Motor Co. for $175000 of the $300000 owed from May 5.
6/24/13	Cash Payment	Cash Payments Journal	Telecom. Expense			$ 100.00	no		$ - 0	$ - 0							Purchased a	100	international phone card for one of the sales representative's upcoming European business trip, Check #5286.							Purchased a $100 international phone card for one of the sales representative's upcoming European business trip, Check #5286.
6/25/13	Cash Payment	Cash Payments Journal				$ 152,880.00	Yes		$ 156,000.00	$ 3,120.00	$ 152,880.00						Paid in full for the purchase from JVC on June 13, Check #5287									Paid in full for the purchase from JVC on June 13, Check #5287
6/26/13	Cash Payment	Cash Payments Journal	Merchandise Inventory	1250	$ 41.00	$ 51,250.00	Yes	2%	$ 51,250.00								Purchased	1250	docking station from Samsung for	41	per unit paying in cash, Check #5288					Purchased 1250 docking station from Samsung for $41 per unit paying in cash, Check #5288
6/27/13	Sale	Sales Journal		1500	$ 61.00	$ 91,500.00	Yes	2%	$ 91,500.00								Sold	1500	docking stations on credit to Honda for	61	per unit, Invoice 5560.					Sold 1500 docking stations on credit to Honda for $61 per unit, Invoice 5560.
6/27/13	Cash Payment	Cash Payments Journal	Marketing Expense			$ 75,000.00			$ - 0								Hired and paid a consultant	75000	to devise a marketing plan. AC Speed's management felt this was necessary to develop brand awareness. Check #5289.							Hired and paid a consultant $75000 to devise a marketing plan. AC Speed's management felt this was necessary to develop brand awareness. Check #5289.
6/28/13	Cash Payment	Cash Payments Journal													$ 8,000.00	$ 10,000.00	AC Speed is behind in its mortgage payments to Bank of America. Paid a total of	10000	(	2000	principal and	8000	interest), Check #5290.			AC Speed is behind in its mortgage payments to Bank of America. Paid a total of $10000 ( $2000 principal and $8000 interest), Check #5290.
6/29/13	Cash Receipt	Cash Receipts Journal				$ 89,670.00	Yes	2%	$ 91,500.00	$ 1,830.00	$ 89,670.00						Received payment in full from Honda for the June 27th transaction.									Received payment in full from Honda for the June 27th transaction.
6/29/13	Cash Payment	Cash Payments Journal				$ 30,000.00	No		$ 30,000.00	$ - 0	$ - 0						Paid in full for the purchase from Magellan on May 31st, Check #5291.									Paid in full for the purchase from Magellan on May 31st, Check #5291.
6/29/13	Salaries	Cash Payments Journal				$ 14,500.00	no		$ - 0	$ - 0	$ - 0						Check # 5292 was issued for payroll:	14500	for salaried and	$ 4,750.00	for wages (wage expense)					Check # 5292 was issued for payroll: $14500 for salaried and $4750 for wages (wage expense)
6/29/13	Wages	Cash Payments Journal				$ 4,750.00	no		$ - 0	$ - 0	$ - 0
Account			May 31 Balance			Account				12/31/12	12/31/11	12/31/10	12/31/09
Sales			725,000			Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding				65,000
Cost of Goods Sold (Percentage of Sales)			88%			Paid In Capital - Excess of Par				1,545,000
Wage Expense (hourly workers)			10,000			Retained Earnings				1,166,744	1,065,744	956,030	1,238,479
Salaries Expense (exempt staff)			30,000
Marketing Expense			24,000
Travel and Entertainment Expense			2,300
Office Maintenance & Repair Expense			500
Legal Expenses			16,550
Insurance Expense			2,000
Utilities Expense			1,000
Office Supplies Expense			290
Telecommunications Expense			55
Depreciation Expense - Equipment & Furn - Warehouse			165
Depreciation Expense - Equipment & Furn - Office			140

Data - ADJ JE

Required Information

Adjustments

Adjustment Calculations

Concatenation Process

Concatenated Phrase

June Month-end Adjustments:

Adj Transaction Description

Related transaction

# of months

Rent per month

Total Rent

( A )

AC Speed has earned one month of the prepaid rent received from their tenant at the beginning of June.

June 4

Rented part of the warehouse to a new tenant and received $5400 for three months rent starting in June

$ 1,800.00

$ 5,400.00

Rented part of the warehouse to a new tenant and received

$ 5,400.00

for three months rent starting in June

Rented part of the warehouse to a new tenant and received $5400 for three months rent starting in June

Above transaction wording doesn't need changing

Previous balance

Physical Count

Debit

Credit

( B )

The Company took a physical count of Office Supplies on June 30 and found the following to be on hand: Office Supplies - $2500

$ - 0

Must be a write down

$ 2,500.00

$ - 0

The Company took a physical count of Office Supplies on June 30 and found the following to be on hand: Office Supplies -

$ 2,500.00

The Company took a physical count of Office Supplies on June 30 and found the following to be on hand: Office Supplies - $2500

Accounts receivable balance

Allowance credit balance

Allowance %

Debit

Credit

( C )

AC Speed estimates bad debt expense on a monthly basis rather than waiting until year-end. The company uses the allowance method. Based on recent industry estimates, AC Speed estimates that the allowance account should be 2% of accounts receivable.

$ - 0

2.0%

$ - 0

of accounts receivable.

Month End Inv Balance

Inventory Count

Debit

Credit

( D )

The Company took a physical inventory count on June 30 and found the following inventory on hand: Merchandise Inventory - $120000

$ - 0

$ 120,000.00

$ (120,000.00)

The Company took a physical inventory count on June 30 and found the following inventory on hand: Merchandise Inventory -

$ 120,000.00

The Company took a physical inventory count on June 30 and found the following inventory on hand: Merchandise Inventory - $120000

Prepaid Insurance Balance

Months

Credit

( E )

The Balance in the prepaid insurance account at the beginning of June represents 4 months of coverage. Record the amount of insurance for June.

$ 14,000.00

$ 3,500.00

The Balance in the prepaid insurance account at the beginning of June represents

months of coverage. Record the amount of insurance for June.

The Balance in the prepaid insurance account at the beginning of June represents 4 months of coverage. Record the amount of insurance for June.

( F )

Depreciation on the company's fixed assets for the month of June is as follows:

Life

Historical Price

Salvage Value

Monthly Depr.

1. The furniture and equipment for the warehouse was purchased a few years ago for 10000. These assets have a 4-year life, an expected salvage value of 1000 and are depreciated using the straight-line method.

Warehouse

$10,000

$ 1,000.00

$ 187.50

1. The furniture and equipment for the warehouse was purchased a few years ago for

$10,000

. These assets have a 4-year life, an expected salvage value of

$ 1,000.00

and are depreciated using the straight-line method.

2. The furniture and equipment for the office was purchased last year for 8500. these assets have a 7 year life, an expected salvage value of 1500 and are depreicated using stright-line method.

Office

$ 8,500.00

$ 1,500.00

$ 83.33

2. The furniture and equipment for the office was purchased last year for

$ 8,500.00

. these assets have a 7 year life, an expected salvage value of

$ 1,500.00

and are depreicated using stright-line method.

2. The furniture and equipment for the office was purchased last year for 8500. these assets have a 7 year life, an expected salvage value of 1500 and are depreicated using stright-line method.

Change Log

Date	Transactional Data	Change
June 1	Signed a 3 year 7.1% , $210000 note payable with First Bank.	Changed value to $200,000
June 1	Purchased 3100 GPS units on credit from Navistar for $35.5 per unit.	From $35 to $36 per unit
June 2	Sold 2000 DVD players on account to Toyota for $76 per unit, Invoice #5555	From $75 to $76
June 2	Sold 3500 GPS units on account to Kia for $53 per unit, Invoice #5566.	From $52 to $53
June 30	Issued bonds payable at face value for $450,000	From $350K to $450K
ADJ C	Bad Debt	Changed from 2.5% to 2.0%