Accounts Help Needed - 48 hours

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Main Menu

Davenport University
ACCT202 Practice Set
WINTER 2015
Student Name:
CRN:
Professor:

Go To: Instructions

Go To: Academic Integrity

Go To: Products

Go To: Chart of Accounts - GL

Go To: Chart of Accounts - AR

Go To: Chart of Accounts - AP

Go To: Sales Journal

Go To: Purchases Journal

Go To: Cash Receipts Journal

Go To: Cash Payments Journal

Go To: General Journal Pg 1

Go To: General Journal Pg 2

Go To: General Journal Pg 3

Go To: General Ledger

Go To: A/R Sub-Ledger

Go To: A/P Sub-Ledger

Go To: Worksheet

Go To: Inventory Control Card

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 7.5% , $200000 note payable with First Bank.
June 1 Purchased 3000 GPS units on credit from Navistar for $36 per unit.
June 1 Issued 5,500 shares of common stock for $11 per share (Refer to General ledger for description of common stock).
June 1 Sold 2000 DVD players on account to Toyota for $76 per unit, Invoice #5555
June 2 Sold 3500 GPS units on account to Kia for $53 per unit, Invoice #5556.
June 2 Purchased office supplies from Office Max on credit for $1200
June 2 Sold 900 docking stations for $64 per unit and 1950 GPS units for $83 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 $925 , 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 hourly employees
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 hourly employees
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 2/10, 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 - $2465
( 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 - $122221
( 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 5-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

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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
1-Jun 5555 Toyota $ 152,000.00 $ 130,000.00
2-Jun 5556 Kia $ 185,500.00 $ 125,500.00
2-Jun 5557 Nissan $ 219,450.00 $ 104,250.00
15-Jun 5558 Ford Motor Co. $178,000.00 $96,000.00
22-Jun 5559 Kia $106,425.00 $69,300.00
27-Jun 5560 Honda $91,500.00 $61,550.00
$ 932,875.00 $ 586,600.00

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
1-Jun Navistar Merchandise Inventory $ 108,000.00 $ 108,000.00
2-Jun Office Max Office Supplies $1,200 $1,200
13-Jun JVC Merchandise Inventory $156,000 $156,000
13-Jun Magellan Merchandise Inventory $ 28,050.00 $ 28,050.00
16-Jun Samsung Merchandise Inventory $ 75,600.00 $ 75,600.00
$ 368,850.00 $ 367,650.00 $ 1,200.00 $ - 0

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
1-Jun Notes Payable $200,000 $200,000
1-Jun Common Stock & Capital Excess to Par $ 60,500.00 $ 60,500.00
4-Jun Toyota $ 185,000.00 $ 185,000.00
4-Jun Unearned rent $5,400 $5,400
18-Jun Toyota 152000 3040 148960
23-Jun Ford Motor Co. 175000 175000
29-Jun Honda $ 91,500.00 $ 1,830.00 89670
30-Jun Bonds Payable $450,000 $450,000
$0 $603,500 $715,900 $4,870 $1,314,530 $0

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
5-Jun 5278 Michigan Utility Co. Accounts Payable $2,100 $2,100
7-Jun 5279 Travel & Entertainment Travel & Entertainment $925 $925
8-Jun 5280 Office Supplies Office Max $1,200 $ 1,200.00
11-Jun 5281 Navistar Accounts Payable $105,840 2160.00 $108,000
11-Jun 5282 Larry, Moe & Curly Legal Expenses $5,400 $5,400
12-Jun 5283 Common Shareholders Dividend Payable 327500 327500
15-Jun 5284 Salaries Expense Salaries Expense 14500 14500
15-Jun 5284 Wage Expense Wage Expense 4750 4750
23-Jun 5285 JVC Accounts Payable 75000 75000.0
24-Jun 5286 Telecommunications Tele. Expense $100 100
25-Jun 5287 JVC Accounts Payable $152,880 3120 $156,000
26-Jun 5288 Samsung Inventory $51,250 51250
27-Jun 5289 Consultant Marketing Expense $75,000 75000
28-Jun 5290 Bank of America Mortagage Payable $2,000 2000
28-Jun 5290 Bank of America Interest expense $8,000 $8,000
29-Jun 5291 Magellan Accounts Payable $30,000 $30,000
29-Jun 5292 Salaries Expense Salaries Expense 14500 14500
29-Jun 5292 Wage Expense Wage Expense 4750 4750
30-Jun 5293 Notes Payable Notes Payable $15,000 $ 15,000.0
30-Jun 5293 Interest Expense Interest expense $1,250 $1,250
$891,945 $5,280 $524,925 $372,300

General Journal

AC Speed Corporation
General Journal
Date Accounts Post Ref DEBIT CREDIT
3-Jun Retained Earning 327500
Devidend Payables 327500
11-Jun Nevistar Account 2160
Merchandise Inventory 2160
17-Jun Sales Return 18550
Kia 18550
17-Jun Merchandise Inventory $ 12,600.00
Cost of Goods Sold $ 12,600.00
17-Jun Nevistar $ 12,600.00
Merchandise Inventory $ 12,600.00
20-Jun Allowance for Bad Debts 5000
General Motors $ 5,000.00

General Journal ADJ

AC Speed Corporation
General Journal
Date Accounts Post Ref DEBIT CREDIT
41820 (A) Rent Income $ 1,800
Unearned Rent $ 1,800
41820 (B) Office Supplies Expense $ 735
Office Supplies $ 735
30-Jun © Bad Debts Expenses $ 6,211
Allowance for Doubt Accounts Receivable $ 6,211
41820 (D) Utilities Expense $ 10,749
Merchandise Inventory $ 10,749
41820 (E) Insurance Expense $ 3,500
Prepaid Insurance $ 3,500
30-Jun (F) Depreciation Expense-Equip & Furniture Warehouse $ 150
Accumulated Depreciation-Equip & Furniture $ 150
Depreciation Expense-Equip & Furniture Office $ 83
Accumulated Depreciation-Equip & Furniture Office $ 83
Calculation of Bad Debts
Begnining Accont Receviables $485,000
Closing Account Receviables $795,525
So, New Addition in Account Receviables durin this month $310,525
New Allowance for Account Receviables for this month $6,210.50

General Journal CLOSING

AC Speed Corporation
General Journal
Date Accounts Post Ref DEBIT CREDIT
A) Sales Revenue 932,875
Income Summary 932875
B) Rent Revenue 1800
Income Summary 1800
C) Income Summary 748,323
Sales Discounts 4,870
Sales Returns & Allowances 18,850
Cost of Goods Sold 574,000
Wage Expense (hourly workers) 9,500
Salaries Expense (Exempt Staff) 29,000
Marketing Expense 75,000
Travel and Entertainment Expense 925
Bad Debt Expense 6,211
Property Tax Expense
Office Maintenance & Repair Expense
Legal Expenses 5,400
Insurance Expense 3,500
Utilities Expense 10,749
Office Supplies Expense 735
Telecommunications Expense 100
Depreciation Expense - Equip & Furniture - Warehouse 150
Depreciation Expense - Equip & Furniture - Office 83
Interest Expenses 9250
4) Income Summary 186,352
Retained earning 186,352

General Ledger

Account: Cash Account No. 100
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
31-May Balance $ 75,000.00
30-Jun Cash Recevied $1,314,530 $ 1,389,530.00
30-Jun Payment $ 891,945.00 $ 497,585.00
Account: Accounts Receivable Account No. 102
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
31-May Balance $ 485,000.0
30-Jun General Motors $ - 0 $ - 0
30-Jun Ford Motors $ 303,000.00 $ 303,000.0
30-Jun Toyota $ - 0 $ 303,000.0
30-Jun Honda $ - 0 $ 303,000.0
30-Jun Kia $ 273,075.00 $ 576,075.0
30-Jun Nissian $ 219,450.00 $ 795,525.0
30-Jun Balance $ 795,525.0
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
20-Jun General Motors $ 5,000.00 $ 10,000.00
30-Jun Bad Debts $ 6,211.00 $ 16,211.00
30-Jun Balance $ 16,211.00
Account: Merchandise Inventory Account No. 104
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
31-May Balance ERROR:#REF!
30-Jun Accounts Payabale $ 367,650.00 ERROR:#REF!
30-Jun Cost of Goods Sold $ 586,600.00 ERROR:#REF!
11-Jun Navistar $ 2,160.00 ERROR:#REF!
17-Jun Cost of Goods Sold $ 12,600.00 ERROR:#REF!
17-Jun Navistar $ 12,600.00 ERROR:#REF!
20-Jun Megellan $ 28,050.00 ERROR:#REF!
25-Jun JVC $ 3,120.00 ERROR:#REF!
26-Jun Cash $ 51,250.00 ERROR:#REF!
30-Jun Utility Expenses $ 10,749.00 ERROR:#REF!
ERROR:#REF!
Account: Office Supplies Account No. 105
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
31-May Balance $ 2,000.00
2-Jun Accounts Payable (Office Max) $ 1,200.00 $ 3,200.00
30-Jun Office Supplies Expenses $ 735.00 $ 2,465.00
30-Jun Balance $ 2,465.00
Account: Prepaid Insurance Account No. 106
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
31-May $ 14,000.00
30-Jun Insurnace Expenses $ 3,500.00 $ 10,500.00
30-Jun Balance $ 10,500.00
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
$ 2,000,600.00
$ 2,000,600.00
30-Jun Balance $ 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
$ 1,500,000.00
$ 1,500,000.00
30-Jun Balance $ 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
$ 1,500,000.00
$ 1,500,000.00
30-Jun Balance $ 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
$ 10,000.00
$ 10,000.00
30-Jun 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
30-Jun Dep.Equip & Furn- Warehouse 150 $ 2,050.00
30-Jun Balance $ 2,050.00
Account: Equipment & Furniture - Office Account No. 153
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
31-May Balance $ 8,500.00
$ 8,500.00
$ 8,500.00
30-Jun 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
30-Jun Dep. Equip & Furn-Office 83 $ 1,683.00
$ 1,683.00
30-Jun Balance $ 1,683.00
Account: Accounts Payable Account No. 201
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
31-May Balance $ 630,100.00
5-Jun 2100 $ 628,000.00
30-Jun Garmin $ 18,000.00 $ 646,000.00
30-Jun JVC $ 87,500.00 $ 733,500.00
30-Jun Megellan $ - 0 $ 733,500.00
30-Jun Motorola $ 58,000.00 $ 791,500.00
30-Jun Navistar $ 37,400.00 $ 828,900.00
30-Jun Office Max $ - 0 $ 828,900.00
30-Jun Samsung $ 75,600.00 $ 904,500.00
30-Jun Balance $ 904,500.00
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
3-Jan Retained Earning $ 327,000.00 $ 327,000.00
12-Jun Cash $ 327,000 $ - 0
30-Jun Balance $ - 0
Account: Unearned Rent Account No. 205
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
4-Jun Cash $ 5,400.00 $ 5,400.00
30-Jun Rent Income $ 1,800.00 $ 3,600.00
30-Jun Balance $ 3,600.00
Account: Notes Payable Account No. 250
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
1-Jun Cash $ 200,000.00 $ 200,000.00
30-Jun Cash $ 15,000.00 $ 185,000.00
$ 185,000.00
30-Jun Balance $ 185,000.00
Account: Bonds Payable Account No. 251
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
30-Jun Cash $ 450,000.00 $ 450,000.00
$ 450,000.00
30-Jun Balance $ 450,000.00
Account: Mortgage (Warehouse) Payable Account No. 252
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
1-Jun $ 200,000.00
28-Jun Cash $ 2,000.00 $ 198,000.00
$ 198,000.00
30-Jun Balance $ 198,000.00
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
1-Jun Cash $ 5,500.00 $ 65,500.00
$ 65,500.00
$ 65,500.00
$ 65,500.00
55000
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
1-Jun Cash $ 55,000.00 $ 1,396,000.00
30-Jun Balance $ 1,396,000.00
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
7-Jun Devidend Declared $ 327,500.00 $ 38,500.00
30-Jun Income Summary $ 186,352.00 $ 224,852.00
30-Jun Balance $ 224,852.00
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
30-Jun Accounts Receviables $ 932,875.00 $ 932,875.00
$ 932,875.00
$ 932,875.00
$ 932,875.00
Account: Sales Discounts Account No. 510
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
18-Jun Toyota $4,870 $ 4,870.00
$ 4,870.00
$ 4,870.00
30-Jun Balance $ 4,870.00
Account: Sales Returns & Allowances Account No. 511
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
17-Jun $ 18,850.00 $ 18,850.00
$ 18,850.00
$ 18,850.00
30-Jun Balance $ 18,850.00
Account: Cost of Goods Sold Account No. 600
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
17-Jun Merchandise Inventory 12600 12600
30-Jun Merchandise Inventory $ 574,000.00
Account: Wage Expense (hourly workers) Account No. 700
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
15-Jun Cash $ 4,750.00 $ 4,750.00
29-Jun Cash $ 4,750.00 $ 9,500.00
30-Jun Balance $ 9,500.00
Account: Salaries Expense (Exempt Staff) Account No. 701
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
15-Jun Cash $ 14,500.00 $ 14,500.00
29-Jun Cash $ 14,500.00 $ 29,000.00
30-Jun Balance $ 29,000.00
Account: Marketing Expense Account No. 702
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
27-Jun Cash $ 75,000.00 $ 75,000.00
$ 75,000.00
$ 75,000.00
30-Jun Balance $ 75,000.00
Account: Travel and Entertainment Expense Account No. 703
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
7-Jun cash $ 925.00 $ 925.00
30-Jun Balance $ 925.00
Account: Bad Debt Expense Account No. 704
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
30-Jun Allowance For Bad Debts $ 6,211.00 $ 6,211.00
$ 6,211.00
30-Jun Balance $ 6,211.00
Account: Property Tax Expense Account No. 705
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
$ - 0
$ - 0
30-Jun Balance $ - 0
Account: Office Maintenance & Repair Expense Account No. 706
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
$ - 0
$ - 0
30-Jun Balance $ - 0
Account: Legal Expenses Account No. 707
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
11-Jun cash $ 5,400.00 $ 5,400.00
30-Jun Balance $ 5,400.00
Account: Insurance Expense Account No. 708
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
30-Jun Prepaid Insurnace $ 3,500.00 $ 3,500.00
$ 3,500.00
30-Jun Balance $ 3,500.00
Account: Utilities Expense Account No. 709
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
30-Jun Merchandise Inventory $ 10,749.00 $ 10,749.00
30-Jun Balance $ 10,749.00
Account: Office Supplies Expense Account No. 710
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
30-Jun Office Supplies $ 735.00 $ 735.00
$ 735.00
30-Jun Balance $ 735.00
Account: Telecommunications Expense Account No. 711
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
24-Jun Cash $ 100.00 $ 100.00
$ 100.00
30-Jun Balance $ 100.00
Account: Depreciation Expense - Equip & Furniture - Warehouse Account No. 712
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
30-Jun Acc. Depreciation Expense - Equip & Furniture - Warehouse $ 150.00 $ 150.00
$ 150.00
30-Jun Balance $ 150.00
Account: Depreciation Expense - Equip & Furniture - Office Account No. 713
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
30-Jun Acc. Dep.Equi & Furm. -Office $ 83.00 $ 83.00
$ 83.00
30-Jun Balance $ 83.00
Account: Rent Income Account No. 800
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
30-Jun Unearned Rent $ 1,800.00 $ 1,800.00
30-Jun Balance $ 1,800.00
Account: Interest Expense Account No. 900
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
28-Jun Cash $ 8,000.00 $ 8,000.00
30-Jun Cash $ 1,250.00 $ 9,250.00
30-Jun Balance $ 9,250.00
Account: Income Summary Account No. 1000
Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT CREDIT
30-Jun Sales Revenue $ 932,875.00 $ 932,875.00
30-Jun Rent Income $ 1,800.00 $ 934,675.00
30-Jun Sales Discounts $ 4,870.00 $ 929,805.00
30-Jun Sales Returns & Allowances $ 18,850.00 $ 910,955.00
30-Jun Cost of Goods Sold $ 574,000.00 $ 336,955.00
30-Jun Wage Expense (hourly workers) $ 9,500.00 $ 327,455.00
30-Jun Salaries Expense (Exempt Staff) $ 29,000.00 $ 298,455.00
30-Jun Marketing Expense $ 75,000.00 $ 223,455.00
30-Jun Travel and Entertainment Expense $ 925.00 $ 222,530.00
30-Jun Bad Debt Expense $ 6,211.00 $ 216,319.00
30-Jun Property Tax Expense $ - 0 $ 216,319.00
30-Jun Office Maintenance & Repair Expense $ - 0 $ 216,319.00
30-Jun Legal Expenses $ 5,400.00 $ 210,919.00
30-Jun Insurance Expense $ 3,500.00 $ 207,419.00
30-Jun Utilities Expense $ 10,749.00 $ 196,670.00
30-Jun Office Supplies Expense $ 735.00 $ 195,935.00
30-Jun Telecommunications Expense $ 100.00 $ 195,835.00
30-Jun Depreciation Expense - Equip & Furniture - Warehouse $ 150.00 $ 195,685.00
30-Jun Depreciation Expense - Equip & Furniture - Office $ 83.00 $ 195,602.00
30-Jun Interest Expenses $ 9,250.00 $ 186,352.00
30-Jun Retained Earning $ 186,352.00 $ - 0

AR Ledger

Account: General Motors
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
31-May $ 5,000.00
20-Jun $ 5,000.00 $ - 0
30-Jun $ - 0
Account: Ford Motor Co.
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
5-May $ 300,000.00 $ 300,000.00
15-Jun $ 178,000.00 $ 478,000.00
23-Jun $ 175,000.00 $ 303,000.00
$ 303,000.00
$ 303,000.00
30-Jun $ 303,000.00
Account: Toyota
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
11-May $ 185,000.00 $ 185,000.00
1-Jun $ 152,000.00 $ 337,000.00
4-Jun $ 185,000.00 $ 152,000.00
18-Jun $ 152,000.00 $ - 0
30-Jun $ - 0
Account: Honda
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
27-Jun $ 91,500.00 $ 91,500.00
29-Jun $ 91,500.00 $ - 0
30-Jun $ - 0
Account: Kia
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
2-Jun $ 185,500.00 $ 185,500.00
17-Jun $ 18,850.00 $ 166,650.00
22-Jun $ 106,425.00 $ 273,075.00
30-Jun $ 273,075.00
Account: Nissan
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
2-Jun $ 219,450.00 $ 219,450.00
$ 219,450.00
$ 219,450.00
30-Jun $ 219,450.00

AP Ledger

Account: Garmin Account No.
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
31-May $ 18,000.00
$ 18,000.00
$ 18,000.00
30-Jun $ 18,000.00
1-Jun Navistar Merchandise Inventory $ 108,000.00 $ 108,000.00
Account: JVC Account No. 2-Jun Office Max Office Supplies $1,200 $1,200
Transaction Account Balance 13-Jun JVC Merchandise Inventory $156,000 $156,000
Date Post Ref DEBIT CREDIT DEBIT CREDIT 13-Jun Magellan Merchandise Inventory $ 28,050.00 $ 28,050.00
31-May $ 162,500.00 $ 162,500.00 16-Jun Samsung Merchandise Inventory $ 75,600.00 $ 75,600.00
13-Jun $ 156,000.00 $ 318,500.00
23-Jun $ 75,000.00 $ 243,500.00 $ 368,850.00
25-Jun $ 156,000.00 $ 87,500.00
$ 87,500.00
30-Jun $ 87,500.00
$264,000.00
$292,050.00
Account: Magellan Account No.
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
31-May $ 30,000.00
13-Jun $ 28,050.00 $ 58,050.00
20-Jun 28050 $ 30,000.00
29-Jun 30000 $ - 0
$ - 0
30-Jun $ - 0
Account: Motorola Account No.
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
31-May $ 58,000
$ 58,000.00
$ 58,000.00
$ 58,000.00
30-Jun $ 58,000.00
Account: Navistar Account No.
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
31-May $ 50,000.00
1-Jun $ 108,000.00 $ 158,000.00
11-Jun $ 108,000.00 $ 50,000.00
17-Jun $ 12,600.00 $ 37,400.00
30-Jun $ 37,400.00
Account: Office Max Account No.
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
2-Jun $ 1,200.00 $ 1,200.00
8-Jun $ 1,200.00 $ - 0
$ - 0
30-Jun $ - 0
Account: Samsung Account No.
Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
16-Jun $ 75,600.00 $ 75,600.00
30-Jun $ 75,600.00

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 497,585 497,585 497,585
102 Accounts Receivable 795,525 795,525 795,525
103 Allowance for Doubtful Accounts 10,000 6,211 16,211 16,211
104 Merchandise Inventory ERROR:#REF! 10,749 ERROR:#REF! ERROR:#REF!
105 Office Supplies 3,200 735 2,465 2,465
106 Prepaid Insurance 14,000 3,500 10,500 10,500
140 Land 2,000,600 2,000,600 2,000,600
145 Building 1,500,000 1,500,000 1,500,000
146 Accumulated Depreciation - Building 1,500,000 1,500,000 1,500,000
151 Equipment & Furniture - Warehouse 10,000 10,000 10,000
152 Accumulated Depreciation - Equip & Furn. - Warehouse 1,900 150 2,050 2,050
153 Equipment & Furniture - Office 8,500 8,500 8,500
154 Accumulated Depreciation - Equip & Furn. - Office 1,600 83 1,683 1,683
201 Accounts Payable 904,500 904,500 904,500
202 Wages Payable
203 Interest Payable
204 Dividends Payable
205 Unearned Rent 5,400 1,800 3,600 3,600
250 Notes Payable 185,000 185,000 185,000
251 Bonds Payable 450,000 450,000 450,000
252 Mortgage (Warehouse) Payable 198,000 198,000 198,000
300 Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding 65,500 65,500 65,500
301 Paid In Capital - Excess of Par 1,396,000 1,396,000 1,396,000
330 Retained Earnings 38,500 38,500 224,852
340 Treasury Stock
500 Sales 932,875 932,875 932,875
510 Sales Discounts 4,870 4,870 4,870
511 Sales Returns & Allowances 18,850 18,850 18,850
600 Cost of Goods Sold 574,000 574,000 574,000
700 Wage Expense (hourly workers) 9,500 9,500 9,500
701 Salaries Expense (Exempt Staff) 29,000 29,000 29,000
702 Marketing Expense 75,000 75,000 75,000
703 Travel and Entertainment Expense 925 925 925
704 Bad Debt Expense 0 6,211 6,211 6,211
705 Property Tax Expense 0
706 Office Maintenance & Repair Expense 0
707 Legal Expenses 5,400 5,400 5,400
708 Insurance Expense 0 3,500 3,500 3,500
709 Utilities Expense 0 10,749 10,749 10,749
710 Office Supplies Expense 0 735 735 735
711 Telecommunications Expense 100 100 100
712 Depreciation Expense - Equip & Furniture - Warehouse 0 150 150 150
713 Depreciation Expense - Equip & Furniture - Office 0 83 83 83
800 Rent Income 1,800 1,800 1,800
900 Interest Expense 9,250 9,250 9,250
Total ERROR:#REF! 5,689,275.00 23,228.00 23,228.00 ERROR:#REF! 5,695,719.00 748,323.00 934,675.00 ERROR:#REF! 4,947,396.00
Net Income (Loss) 186,352.00
Total 934,675 934,675 ERROR:#REF! 4,947,396
Total

IS June 2013

AC Speed Corporation
Income Statement
Sales 932875
Less: Sales Discount 4870
Less: Sales Return 18,850
Net Sales 909,155
Cost of Goods Sold $ 574,000.00
Wage Expense (hourly workers) $ 9,500.00
Salaries Expense (Exempt Staff) $ 29,000.00
Marketing Expense $ 75,000.00
Travel and Entertainment Expense $ 925.00
Bad Debt Expense $ 6,211.00
Property Tax Expense $ - 0
Office Maintenance & Repair Expense $ - 0
Legal Expenses $ 5,400.00
Insurance Expense $ 3,500.00
Utilities Expense $ 10,749.00
Office Supplies Expense $ 735.00
Telecommunications Expense $ 100.00
Depreciation Expense - Equip & Furniture - Warehouse $ 150.00
Depreciation Expense - Equip & Furniture - Office $ 83.00
Interest Expenses $ 9,250.00
Total Expenses $ 724,603.00
Operating Profit $ 184,552.00
Add: Rent Income 1,800
Total Income 186,352

Stmt RE June 2013

AC Speed Corporation
Statement of Retained Earnings
31 May. Begning Balance $366,000
Less: Devidend Paid $ 327,500
Add: Proft $ 186,352 $ (141,148)
30 June : Closing Balance $ 224,852

BS June 2013

AC Speed Corporation
Balance Sheet
Assets
Cash $ 497,585 $ 497,585
Accounts Receivable $ 795,525
Allowance for Doubtful Accounts $ 16,211 $ 779,314
Merchandise Inventory $ 122,221
Office Supplies $ 2,465 $ 2,465
Prepaid Insurance $ 10,500 $ 10,500
Land $ 2,000,600 $ 2,000,600
Building $ 1,500,000
Accumulated Depreciation - Building $ 1,500,000
Net Building $ -
Equipment & Furniture - Warehouse $ 10,000
Accumulated Depreciation - Equip & Furn. - Warehouse $ 2,050
Net Equipment & Furniture - Warehouse $ 7,950
Equipment & Furniture - Office $ 8,500
Accumulated Depreciation - Equip & Furn. - Office $ 1,683
Net Equipment & Furniture - Office $ 6,817
Total Assets $ 3,427,452
Liabilities
Accounts Payable $ 904,500
Unearned Rent $ 3,600
Notes Payable $ 185,000
Bonds Payable $ 450,000
Mortgage (Warehouse) Payable $ 198,000
Total Liabilities $ 1,741,100
Shareholder Equity
Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding $ 65,500
Paid In Capital - Excess of Par $ 1,396,000
Retained Earnings $ 224,852
Total Shareholder Equity $ 1,686,352
Total Shareholder Equity & Liability $ 3,427,452

Post Closing Trial Balance

AC Speed Corporation
Post-closing Trial Balance
DEBIT CREDIT
Cash 497,585
Accounts Receivable 795,525
Allowance for Doubtful Accounts 16,211
Merchandise Inventory 122,221
Office Supplies 2,465
Prepaid Insurance 10,500
Land 2,000,600
Building 1,500,000
Accumulated Depreciation - Building 1,500,000
Equipment & Furniture - Warehouse 10,000
Accumulated Depreciation - Equip & Furn. - Warehouse 2,050
Equipment & Furniture - Office 8,500
Accumulated Depreciation - Equip & Furn. - Office 1,683
Accounts Payable 904,500
Wages Payable
Interest Payable
Dividends Payable
Unearned Rent 3,600
Notes Payable 185,000
Bonds Payable 450,000
Mortgage (Warehouse) Payable 198,000
Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding 65,500
Paid In Capital - Excess of Par 1,396,000
Retained Earnings 224,852
Treasury Stock
Total 4,947,396.00 4,947,396.00 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
Sales 8850000 8874000 9051480 9141995 725000
Sales Discounts 0 0 0 0 0
Sales Returns & Allowances 0 0 0 0 0
Net Sales 8,850,000 8,874,000 9,051,480 9,141,995 725,000
Cost of Goods Sold 7,656,000 7,661,551 7,625,748 7,852,006 638,000
Gross Profit 1,194,000 1,212,449 1,425,732 1,289,989 87,000
Wage Expense (hourly workers) 120,000 122,400 124,848 126,096 10,000
Salaries Expense (Exempt Staff) 360,000 367,200 374,544 378,289 30,000
Marketing Expense 288,000 293,760 299,635 302,632 24,000
Travel and Entertainment Expense 27,600 28,152 28,715 29,002 2,300
Bad Debt Expense 0 0 0 0 0
Property Tax Expense 0 0 0 0 0
Office Maintenance & Repair Expense 6,000 6,120 6,242 6,305 500
Legal Expenses 198,600 202,572 206,623 208,690 16,550
Insurance Expense 24,000 24,480 24,970 25,219 2,000
Utilities Expense 12,000 12,240 12,485 12,610 1,000
Office Supplies Expense 3,480 3,550 3,621 3,657 290
Telecommunications Expense 660 673 687 694 55
Depreciation Expense - Equip & Furniture - Warehouse 1,980 2,020 2,060 2,081 165
Depreciation Expense - Equip & Furniture - Office 1,680 1,714 1,748 1,765 140
Rent Income 0 0 0 0 0
Interest Expense 0 0 0 0 0
Total Expenses 1,044,000 0 1,064,880 0 1,086,178 0 1,097,039 0 87,000
Net Profit 150,000 0 147,569 0 339,554 0 192,950 0 0
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
0

BS Comparative

AC Speed Corporation
Balance Sheet
12/31/12 12/31/11 12/31/10 12/31/09 5/31/12
Account Title
Cash 299,000 316,940 348,634 380,011 75,000
Accounts Receivable 948,800 846,728 931,401 1,015,227 490,000
Less: Allowance of Bad Debts -16,800 -17,808 -19,589 -21,352 -15,000
Merchandise Inventory 601,856 637,967 701,764 764,923 334,000
Office Supplies 2,240 2,374 2,612 2,847 2,000
Prepaid Insurance 15,680 16,621 18,283 20,111 14,000
Land 2,000,600 2,000,600 2,000,600 2,000,600 2,000,600
Building 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Accumulated Depreciation-Building -1,500,000 -1,500,000 -1,500,000 -1,500,000 -1,500,000
Equipment & Furniture - Warehouse 11,200 11,872 13,059 14,235 10,000
Less: Accumulated Dep- Equ- Fut- Warehouse -2,128 -2,256 -2,481 -2,705 -1,900
Equipment & Furniture - Office 9,520 10,091 11,100 12,099 8,500
Less: Accumulated Dep- Equ- Fut- Office -1,792 -1,900 -2,089 -2,278 -1,600
Total assets 3,868,176 3,821,230 4,003,294 4,183,718 2,915,600
Liabilities & Stockholders' Equity
Dividends Payable 0 0 0 0 0
Unearned Rent 0 0 0 0 0
Notes Payable 0 0 0 0 0
Accounts Payable 812,432 861,178 947,296 978,338 948,600
Bonds Payable 0 0 0 0 0
Mortgage (Warehouse) Payable 124,000 131,440 144,584 157,597 200,000
Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding 65,000 65,000 65,000 65,000 60,000 2,828,613
Paid In Capital - Excess of Par 1,545,000 1,545,000 1,545,000 1,545,000 1,341,000
Retained earnings 1,321,744 1,218,613 1,301,414 1,437,784 366,000
TOTAL LIABLIATIES & STOCKHOLDER's EQUITY 3,868,176 3,821,231 4,003,294 4,183,719 2,915,600

Ratios Historical

12/31/12 12/31/11 12/31/10 INDUSTRY
Liquidity
Current Ratio (One decimal place) 2.3 2.1 2.1 2.2
Current Assets 1,850,776 0 1,802,823 1,983,105
Current Liabilities 812,432 0 861,178 947,296
Acid Test Ratio (One decimal place) 2.3 1.4 2.1 1.6
Liquid Assets 1,850,776 1,164,855 1,983,105
Current Liabilities 812,432 861,178 947,296
Receivables Turnover (One decimal place) 9.9 10.0 9.3 10
Net credit Sales 8,850,000 8,874,000 9,051,480
Average accounts receivable 897,764 889,064 973,314
Inventory Turnover (One decimal place) 12.4 13.2 12.3 9.5
Cost of goods sold 7656000.0 8874000.0 9051480.0
Aveerage Inventory 619911.7 669865.7 733343.5
Profitability
Profit Margin (% with two decimal places) 1.69% 1.66% 3.75% 3.5%
Net profit 150,000 147,569 339,554
Sales 8,850,000 8,874,000 9,051,480
Asset Turnover (two decimal places) 2.29 2.32 2.26 1.9
Sales 8,850,000 8,874,000 9,051,480
Total Assets 3,868,176 3,821,230 4,003,294
Return on Assets (% one decimal place) 3.9% ERROR:#DIV/0! 3.9% ERROR:#DIV/0! 8.5% 10.5%
Net Income 150,000 0 147,569 0 339,554
Total Assets 3,868,176 - 0 3,821,230 - 0 4,003,294
Return on Common Shareholders' Equity
(One decimal place) 5.1% ERROR:#DIV/0! 5.2% ERROR:#DIV/0! 11.7% ERROR:#DIV/0! 18.3%
Net Income 150,000 0 147,569 0 339,554 0
Average Common Shareholders' Equity 2,931,744 0 2,828,613 0 2,911,414 0
Earnings per Share (EPS) (Two decimal places) 2.31 ERROR:#DIV/0! 2.27 ERROR:#DIV/0! 5.33 ERROR:#DIV/0! 3.05
Net profit 150,000 0 147,569 0 339,554
Average oustanding shares 65,000 0 65,000 0 63,750
Price-Earnings (P/E ) Ratio (Two decimal places) 15.17 ERROR:#DIV/0! 14.98 ERROR:#DIV/0! 5.82 14.8
Market value per share 35 0 34 0 31
Earning per share 2.31 ERROR:#DIV/0! 2.27 ERROR:#DIV/0! 5.33
Payout Ratio (% One decimal place) 13.0% ERROR:#DIV/0! 101.3% ERROR:#DIV/0! 80.7% 15.0%
Dividend Per share 0.30 1.30 2.30 3.30 4.30
Earning per share 2.31 ERROR:#DIV/0! 2.27 ERROR:#DIV/0! 5.33
Solvency Ratios
Debt to Total Assets Ratio (% One decimal place) 21.5% 42.2%
Long term debts 833,000
Total assets 3,868,176
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 $ - 0 $ 115,500.00
1-Jun 3000 $ 36.00 $ 108,000.00 6300 $ 223,500.00
2-Jun 3500 $ 36.00 $ 125,500.00 2800 $ 98,000.00
2-Jun 1950 $ 35.00 $ 68,250.00 850 $ 29,750.00
13-Jun 850 $ 33.00 $ 28,050.00 1700 $ 57,800.00
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 $ - 0 $ 162,500.00
1-Jun 2000 $ 65.00 $ 130,000.00 500 $ 32,500.00
13-Jun 3250 $ 48.00 $ 156,000.00 3750 $ 188,500.00
15-Jun 2000 $ 48.00 $ 96,000.00 1750 $ 92,500.00
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 $ - 0 $ 56,000.00
2-Jun 900 $ 40.00 $ 36,000.00 500 $ 20,000.00
16-Jun 1800 $ 42.00 $ 75,600.00 2300 $ 95,600.00
22-Jun 1650 $ 69,300.00 650 $ 26,300.00
26-Jun 1250 $ 41.00 $ 51,250.00 1900 $ 77,550.00
27-Jun 1500 $ 61,550.00 400 $ 16,000.00

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 $ 200,000.00 7.5% 3 Signed a 3 year 7.5 200000 note payable with First Bank. Signed a 3 year 7.5% , $200000 note payable with First Bank.
6/1/13 Purchase Purchases Journal 3000 $ 36.00 $ 108,000.00 Yes 2% $ 108,000.00 Purchased 3000 GPS units on credit from Navistar for $ 36 per unit. Purchased 3000 GPS units on credit from Navistar for $36 per unit.
6/1/13 Sale Sales Journal 2000 $ 76.00 $ 152,000.00 Yes 2% $ 152,000.00 Sold 2000 DVD players on account to Toyota for 76 per unit, Invoice #5555 Sold 2000 DVD players on account to Toyota for $76 per unit, Invoice #5555
6/2/13 Purchase Purchases Journal $ 1,200.00 Yes 2% $ 1,200.00 Purchased office supplies from Office Max on credit for $ 1200 Purchased office supplies from Office Max on credit for $1200
6/2/13 Sale Sales Journal 3500 $ 53.00 $ 185,500.00 Yes 2% $ 185,500.00 Sold 3500 GPS units on account to Kia for 53 per unit, Invoice #5556. Sold 3500 GPS units on account to Kia for $53 per unit, Invoice #5556.
6/2/13 Sale Sales Journal 900 $ 64.00 $ 57,600.00 Yes 2% Sold 900 docking stations for 64 per unit and 1950 GPS units for $ 83.00 per unit on account to Nissan, Invoice #5557. Sold 900 docking stations for $64 per unit and 1950 GPS units for $83 per unit on account to Nissan, Invoice #5557.
6/2/13 Sale Sales Journal 1950 $ 83.00 $ 161,850.00 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. $ 925.00 No $ - 0 $ - 0 $ - 0 Received and paid expense reports for travel and entertainment totaling 925 , Check #5279. Received and paid expense reports for travel and entertainment totaling $925 , 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 $ 105,840.00 Yes 2% $ 108,000.00 $ 2,160.00 $ 105,840.00 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 hourly employees Check # 5284 was issued for payroll: $14500 for salaried and $4750 for hourly employees
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 $ 148,960.00 Yes 2% $ 152,000.00 $ 3,040.00 $ 148,960.00 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 hourly employees Check # 5292 was issued for payroll: $14500 for salaried and $4750 for hourly employees
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 3 $ 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 - $2465 $ - 0 Must be a write down $ 2,465.00 $ 2,465.00 $ - 0 The Company took a physical count of Office Supplies on June 30 and found the following to be on hand: Office Supplies - $ 2,465.00 The Company took a physical count of Office Supplies on June 30 and found the following to be on hand: Office Supplies - $2465
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. $ 303,000.00 $ - 0 2.0% $ - 0 $ 6,060.00 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. 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.
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 - $122221 ERROR:#REF! $ 122,221.00 ERROR:#REF! The Company took a physical inventory count on June 30 and found the following inventory on hand: Merchandise Inventory - $ 122,221.00 The Company took a physical inventory count on June 30 and found the following inventory on hand: Merchandise Inventory - $122221
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 4 $ 3,500.00 The Balance in the prepaid insurance account at the beginning of June represents 4 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 5-year life, an expected salvage value of 1000 and are depreciated using the straight-line method. Warehouse 5 $10,000 $ 1,000.00 $ 150.00 1. The furniture and equipment for the warehouse was purchased a few years ago for $10,000 . These assets have a 5-year life, an expected salvage value of $ 1,000.00 and are depreciated using the straight-line method. 1. The furniture and equipment for the warehouse was purchased a few years ago for 10000. These assets have a 5-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. Office 7 $ 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.