For Accounting Only

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Journal

Cole Creatives, Inc
Date Description
1-Jan Issued stock, $10 par; 100.000 shares
2-Jan Signed 5-year lease on building, $15,000/month, paid cash for 1st month and $15K deposit
2-Jan Signed 3-year lease on manufacturing equipment, $4,000/month, paid 1st month
5-Jan Purchased for cash, office furniture, $5,000
5-Jan Purchased for cash, computers and printer, $5,000
5-Jan Ordered office supplies, $1,000
8-Jan Ordered Misc manufacturing supplies, $3,000
8-Jan Ordered Initial parts inventory for 100 units (see Inventory)
8-Jan Ordered storage system for Iventory, $3,000
15-Jan Hired shop foreman, $36,000/per year, plus 10% for benefits
1-Feb Paid rent & equipment lease
1-Feb Paid untiities
1-Feb Paid payroll
10-Feb Received Part 1 of parts inventory: items 1, 2 & 4; $1,200 freight charges
15-Feb Received reminder of parts iventory; $200 shipping charges
15-Feb Hired welder, 2 assemblers, warehouseman and maintenace person
1-Mar Paid rent , utilities, equipment lease, payroll, and all payables
1-Mar Ordered sufficient parts for 300 units
10-Mar Received entire parts order, $2500 freight charges
March Assembles 200 smokers; sold 100 at $425 each plus $25 each shipping
March Sold 100 at $425 each plus $25 each shipping, on Account
1-Apr Paid rent , utilities, equipment lease, payroll, and all payables
5-Apr Ordered sufficient parts for 500 units
10-Apr Ordered manufacturing supplies, $5,000
15-Apr Received parts order in full, $3500 freight charges
April Assembled 400 smokers,
April Received payment in full for 95 units
April Sold 450 at $425 each plus $25 each shipping, on Account
1-May Paid rent , utilities, equipment lease, payroll, and all payables
5-May Ordered sufficient parts for 500 units
5-May Ordered small tools, $500
15-May Received parts order infull, $5000 freight
May Assembled 400 smokers, sold 400 at $425 each plus $25 each shipping
May Received payment in full for 475 units
1-Jun Paid rent , utilities, equipment lease, payroll, and all payables
1-Jun Ordered sufficient parts for 1000 units
1-Jun Hired welder and 2 assemblers
10-Jun Received parts order in full, $8000 freight
June Assembled 600 smokers
June Sold 500 at $425 each plus $25 shipping
June Received payment for 500 units
1-Jul Office Manager starts today; $27,000 annually
1-Jul President now on salary, $50,000 annually
1-Aug Purchase Liabiltiy Insurance - $7200 annually, paid in full
1-Oct Signed Note for $75,000 to purchase existing manufacturing equipment; 6% interest
Three payments of $25,000 plus interest in 4/1/16, 10/1/16 and 4/1/17
1-Dec Signed contract to purchase building for $2,000,000. $200,000 down payment
20 year, 4% mortgage, 1st payment due 1/1/16
Insurance on building and contents $15,000 per year; paid in full
1-Dec Established policy to have an Allowance for Doubful Accounts - 3% of Sales on account
15-Oct Invested $250,000 in Money Market Funds
Jul-Sep
1st Paid rent , utilities, equipment lease, and all payables; accrued payroll
1st Ordered sufficient parts for 600 units freight $6,000 (same each of 3 months)
5th Paid employees
Jul-Sep Produced 825 units each month
Jul Sold 800 at $425 each plus $25 shipping
Aug Sold 800 at $425 each plus $25 shipping
Sep Sold 800 at $425 each plus $25 shipping
Jul-Sep Received payments for 2100 units
Oct- Dec
1st Paid rent , utilities, equipment lease, and all payables; accrued payroll
5th Paid employees
Oct Ordered sufficient parts for 800 units freight $7,000
Produced 850 units
Sold 800 at $425 each plus $25 shipping
Nov Ordered sufficient parts for 800 units freight $7,000
Produced 775 units
Sold 800 at $425 each plus $25 shipping
Dec Ordered sufficient parts for 500 units freight $5,000
Produced 600 units
Sold 500 at $425 each plus $25 shipping
Oct- Dec Received payment for 2000 units

Times

Assembly time in hours
Smoker
Welder 0.75
Assembler 1.50
NOTE Employees get two 15-minute breaks per eight hours worked.
Smoker
Item # Desc # in Proc Init Cost Retail
1 Box 1 50 $ 425.00
2 Lid 2 20
3 handle 4 5 Shipping
4 Base 1 25 $ 25
5 Vents 6 2
6 Axel 1 20

General Journal

Cole Creatives
General Journal
No. Date Accounts Debit Credit Accounts Debit Credit
1 1-Jan Cash 1,000,000
Stock 1,000,000
2 2-Jan Rent 15,000
Deposit 15,000
Cash 30,000
3 2-Jan Equipment Rent 4,000
Cash 4,000
4 5-Jan Furniture 5,000
Cash 5,000
5 5-Jan Computer Equipment 5,000
Cash 5,000
6 5-Jan Office Supplies 1,000 Office Supplies 1,000
Cash 1,000 Accounts Payable 1,000
7 8-Jan Mfg Supplies 3,000 Mfg Supplies 3,000
Cash 3,000 Accounts Payable 3,000
8 8-Jan Storage Equipment 3,000 Storage Equipment 3,000
Cash 3,000 Accounts Payable 3,000
9 1-Feb Rent 15,000
Equipment Rent 4,000
Cash 19,000
10 1-Feb Utilities 1,350
Cash 1,350
11 1-Feb Payroll 1,845 Payroll 369
Finished Goods 1,476
Cash 1,845 Cash 1,845
12 10-Feb Parts Inventory 12,700 Parts Inventory 12,700
Cash 12,700 Accounts Payable 12,700
100*(50+2*20+25)+1200
13 15-Feb Parts Inventory 5,400 Parts Inventory 5,400
Cash 5,400 Accounts Payable 5,400
100*(4*5+6*2+20)+200
14 1-Mar Rent 15,000
Equipment Rent 4,000
Cash 19,000
15 1-Mar Utilities 1,350
Cash 1,350
16 1-Mar Payroll 10,456 Payroll 3,196
Finished Goods 7,258
Cash 10,456 Cash 10,456
17 1-Mar Accounts Payable 18,100
Cash 18,100
18 10-Mar Parts Inventory 52,600 Parts Inventory 52,600
Cash 52,600 Accounts Payable 52,600
19 March Finished Goods 35,633
Parts Inventory 35,633
20 March Payroll 5,658
Finished Goods 11,562
Payroll Payable 17,220
21 March Accounts Receivable 45,000
Sales 45,000
22 March COGS 23,882
Finished Goods 23,882
23 1-Apr Rent 15,000
Equipment Rent 4,000
Cash 19,000
24 1-Apr Payroll Payable 17,220
Cash 17,220
25 1-Apr Utilities 1,500
Cash 1,500
26 1-Apr Accounts Payable 52,600
Cash 52,600
27 10-Apr Mfg Supplies 5,000
Accounts Payable 5,000
28 15-Apr Parts Inventory 87,000
Accounts Payable 87,000
29 April Cash 42,750
Accounts Receivable 42,750
30 April Finished Goods 69,867
Parts Inventory 69,867
31 April Payroll 5,658
Finished Goods 11,562
Payroll Payable 17,220
32 April Accounts Receivable 202,500
Sales 202,500
33 April COGS 94,598
Finished Goods 94,598
34 1-May Rent 15,000
Equipment Rent 4,000
Cash 19,000
35 1-May Payroll Payable 17,220
Cash 17,220
36 1-May Utilities 1,400
Cash 1,400
37 1-May Accounts Payable 92,000
Cash 92,000
38 5-May Small tools 500
Cash 500
39 5-May Parts Inventory 88,500
Accounts Payable 88,500
40 May Finished Goods 69,900
Parts Inventory 69,900
41 May Payroll 5,658
Finshed Goods 11,562
Payroll Payable 17,220
42 May COGS 81,312
Finished Goods 81,312
43 May Accounts Receivalbe 180,000
Sales 180,000
44 May Cash 213,750
Accounts Receivable 213,750
45 1-Jun Rent 15,000
Equipment Rent 4,000
Cash 19,000
46 1-Jun Payroll Payable 17,220
Cash 17,220
47 1-Jun Utilities 1,400
Cash 1,400
48 1-Jun Accounts Payable 88,500
Cash 88,500
48 10-Jun Parts Inventory 175,000
Accounts Payable 175,000
50 June Finished Goods 105,800
Parts Inventory 105,800
51 June Payroll 5,658
Finished Goods 20,172
Payroll Payable 25,830
52 June Accounts Receivable 225,000
Sales 225,000
53 June COGS 104,974
Finished Goods 104,974
54 June Cash 225,000
Accounts Receivable 225,000
3,674,216 3,674,216

Utilities

Utilities
Elec gas water Internet
Jan 500 500 100 250 1,350
Feb 500 500 100 250 1,350
Mar 750 400 100 250 1,500
Apr 750 300 100 250 1,400
May 750 300 100 250 1,400
Jun 750 100 100 250 1,200
Jul 750 100 100 250 1,200
Aug 750 100 100 250 1,200
Sep 750 150 100 250 1,250
Oct 750 250 100 250 1,350
Nov 750 400 100 250 1,500
Dec 750 500 100 250 1,600

Inventory

Inventory
Smoker
Item # Desc # in Proc Init Cost Retail
1 Box 1 50 50 $ 425.00
2 Lid 2 20 40
3 handle 4 5 20 Shipping
4 Base 1 25 25 $ 25
5 Vents 6 2 12
6 Axel 1 20 20
167 - 0 - 0
Units Box Lid Handle Base Vents Axel Box Lid Handle Base Vents Axel Total Freight
# per unit 1 2 4 1 6 1 $ 50 $ 20 $ 5 $ 25 $ 2 $ 20
Feb In $ 5,000.00 $ 4,000.00 $ 2,000.00 $ 2,500.00 $ 1,200.00 $ 2,000.00 $ 16,700.00 $ 1,400.00
In 100 100 200 400 100 600 100 Freeight $ 419.16 $ 335.33 $ 167.66 $ 209.58 $ 100.60 $ 167.66 $ 1,400.00
Out 0 0 0 0 0 0 Out
Bal 100 100 200 400 100 600 100 Bal
Mar In $ 15,000.00 $ 12,000.00 $ 6,000.00 $ 7,500.00 $ 3,600.00 $ 6,000.00 $ 50,100.00 $ 2,500.00
In 300 300 600 1200 300 1800 300 Freeight $ 748.50 $ 598.80 $ 299.40 $ 374.25 $ 179.64 $ 299.40 $ 2,500.00
Out 200 200 400 800 200 1200 200 Out
Bal 200 200 400 800 200 1200 200 Bal
Apr In $ 25,000.00 $ 20,000.00 $ 10,000.00 $ 12,500.00 $ 6,000.00 $ 10,000.00 $ 83,500.00 $ 3,500.00
In 500 500 1000 2000 500 3000 500 Freeight $ 1,047.90 $ 838.32 $ 419.16 $ 523.95 $ 251.50 $ 419.16 $ 3,500.00
Out 400 400 800 1600 400 2400 400 Out
Bal 300 300 600 1200 300 1800 300 Bal
May In $ 25,000.00 $ 20,000.00 $ 10,000.00 $ 12,500.00 $ 6,000.00 $ 10,000.00 $ 83,500.00 $ 5,000.00
In 500 500 1000 2000 500 3000 500 Freeight $ 1,497.01 $ 1,197.60 $ 598.80 $ 748.50 $ 359.28 $ 598.80 $ 5,000.00
Out 400 400 800 1600 400 2400 400 Out
Bal 400 400 800 1600 400 2400 400 Bal
Jun In $ 50,000.00 $ 40,000.00 $ 20,000.00 $ 25,000.00 $ 12,000.00 $ 20,000.00 $ 167,000.00 $ 8,000.00
In 1000 1000 2000 4000 1000 6000 1000 Freeight $ 2,395.21 $ 1,916.17 $ 958.08 $ 1,197.60 $ 574.85 $ 958.08 $ 8,000.00
Out 600 600 1200 2400 600 3600 600 Out
Bal 800 800 1600 3200 800 4800 800 Bal
Jul In $ 30,000.00 $ 24,000.00 $ 12,000.00 $ 15,000.00 $ 7,200.00 $ 12,000.00 $ 100,200.00 $ 6,000.00
In 600 600 1200 2400 600 3600 600 Freeight $ 1,796.41 $ 1,437.13 $ 718.56 $ 898.20 $ 431.14 $ 718.56 $ 6,000.00
Out 800 800 1600 3200 800 4800 800 Out
Bal 600 600 1200 2400 600 3600 600 Bal
Aug In $ 30,000.00 $ 24,000.00 $ 12,000.00 $ 15,000.00 $ 7,200.00 $ 12,000.00 $ 100,200.00 $ 6,000.00
In 600 600 1200 2400 600 3600 600 Freeight $ 1,796.41 $ 1,437.13 $ 718.56 $ 898.20 $ 431.14 $ 718.56 $ 6,000.00
Out 800 800 1600 3200 800 4800 800 Out
Bal 400 400 800 1600 400 2400 400 Bal
Sep In $ 30,000.00 $ 24,000.00 $ 12,000.00 $ 15,000.00 $ 7,200.00 $ 12,000.00 $ 100,200.00 $ 6,000.00
In 600 600 1200 2400 600 3600 600 Freeight $ 1,796.41 $ 1,437.13 $ 718.56 $ 898.20 $ 431.14 $ 718.56 $ 6,000.00
Out 800 800 1600 3200 800 4800 800 Out
Bal 200 200 400 800 200 1200 200 Bal
Oct In $ 40,000.00 $ 32,000.00 $ 16,000.00 $ 20,000.00 $ 9,600.00 $ 16,000.00 $ 133,600.00 $ 7,000.00
In 800 800 1600 3200 800 4800 800 Freeight $ 2,095.81 $ 1,676.65 $ 838.32 $ 1,047.90 $ 502.99 $ 838.32 $ 7,000.00
Out 800 800 1600 3200 800 4800 800 Out
Bal 200 200 400 800 200 1200 200 Bal
Nov In $ 40,000.00 $ 32,000.00 $ 16,000.00 $ 20,000.00 $ 9,600.00 $ 16,000.00 $ 133,600.00 $ 7,000.00
In 800 800 1600 3200 800 4800 800 Freeight $ 2,095.81 $ 1,676.65 $ 838.32 $ 1,047.90 $ 502.99 $ 838.32 $ 7,000.00
Out 800 800 1600 3200 800 4800 800 Out
Bal 200 200 400 800 200 1200 200 Bal
Dec In $ 25,000.00 $ 20,000.00 $ 10,000.00 $ 12,500.00 $ 6,000.00 $ 10,000.00 $ 83,500.00 $ 5,000.00
In 500 500 1000 2000 500 3000 500 Freeight $ 1,497.01 $ 1,197.60 $ 598.80 $ 748.50 $ 359.28 $ 598.80 $ 5,000.00
Out 600 600 1200 2400 600 3600 600 Out
Bal 100 100 200 400 100 600 100 Bal
Ordered 6300 $ 5,299.40 $ 4,239.52 $ 2,119.76 $ 2,649.70 $ 1,271.86 $ 2,119.76 $ 17,700.00
Produced 6200

Payroll

Payroll
Start Salary Benefits Employer Taxes Monthly Payroll Finished Good Payroll Finished Good
Foreman 15-Jan 36,000 10% 13% $ 3,690 738 2,952
Welder 15-Feb 30,000 10% 13% $ 3,075 3,075
Assembler 15-Feb 27,000 10% 13% $ 2,768 2,768
Assembler 15-Feb 27,000 10% 13% $ 2,768 2,768
Warehouse 15-Feb 24,000 10% 13% $ 2,460 2,460
Maintenance 15-Feb 24,000 10% 13% $ 2,460 2,460 5,658 11,562
President 1-Jun 50,000 10% 13% $ 5,125
Welder 1-Jun 30,000 10% 13% $ 3,075 3,075
Assembler 1-Jun 27,000 10% 13% $ 2,768 2,768
Assembler 1-Jun 27,000 10% 13% $ 2,768 2,768 5,658 20,172

T-Acct Asset

Cole Creatives
T-Accounts
ASSETS
CASH Furniture Computers Storage Equipment
Debit Credit Debit Credit Debit Credit Debit Credit
1 1,000,000 30,000 2 4 5,000 5 5,000 8 3,000
29 42,750 4,000 3
43 213,750 5,000 4
54 225,000 5,000 5
1,000 6 Acc Deprn Furn Acc Deprn Comp Acc Deprn Furn
3,000 7 Debit Credit Debit Credit Debit Credit
3,000 8
19,000 9
1,350 10
1,845 11
19,000 14
1,350 15
10,456 16
18,100 17
19,000 23
17,220 24
1,500 25
52,600 26
19,000 34
17,220 35
1,400 36
92,000 37 Accounts Receivable Rent Deposit
500 38 Debit Credit Debit Credit
19,000 45 21 45,000 42,750 29 2 15,000
17,220 46 32 202,500 213,750 43
1,400 47 43 180,000 225,000 54
88,500 48 52 225,000

T-Acct Inventory

INVENTORY
Parts Inventory Inventory Production
Debit Credit Units Cost $/Unit Mar Apr May Jun Jul Aug Sep Oct Nov Dec
12 12,700 18,100 19 100 18,100 181 100
13 5,400 17,533 19 300 52,600 175.3333333333 100 200
18 52,600 69,867 30 500 87,000 174 200 300
28 87,000 69,900 40 500 88,500 177 100 400
39 88,500 105,800 50 1,000 175,000 175 200
48 175,000
2,400
Finished Goods Finished Goods Sales
Debit Credit Units Parts Labor Total $/Unit Mar Apr May Jun Jul Aug Sep Oct Nov Dec
19 18,100 23,882 22 100 18,100 5781 23,881 238.81 100
19 17,533 23,315 33 100 17,533 5781 23,314 233.1433333333 100
20 11,562 40,848 33 200 35,067 5781 40,848 204.2383333333 200
30 69,867 30,436 33 200 34,800 5781 40,581 202.905 150 50
31 11,562 10,145 42 300 52,200 8671.5 60,872 202.905 300
40 69,900 60,872 42 100 17,700 2890.5 20,591 205.905 50 50
41 11,562 10,295 42 400 70,800 13448 84,248 210.62 400
50 105,800 10,295 53 200 35,000 6724 41,724 208.62 50
51 20,172 84,248 53
10,431 53 1,600
COGS
Debit Credit
22 23,882
33 23,315
33 40,848
33 30,436
42 10,145
42 60,872
42 10,295
53 10,295
53 84,248
53 10,431

T-Acct Liab

LIABILITIES and EQUITY
Stock Payroll Payable
Debit Credit Debit Credit
1,000,000 1 24 17,220 17,220 20
35 17,220 17,220 31
46 17,220 17,220 41
25,830 51
Accounts Payable
Debit Credit
17 18,100 12,700 12
26 52,600 5,400 13
37 92,000 52,600 18
48 88,500 5,000 27
87,000 28
88,500 39
175,000 48

T-Acct Rev

REVENUE
Sales
Debit Credit
45,000 21
202,500 32
180,000 43
225,000 52

T-Acct Exp

EXPENSES
Rent Equip Rent Office Supplies Utilities
Debit Credit Debit Credit Debit Credit Debit Credit
2 15,000 3 4,000 6 1,000 10 1,350
9 15,000 9 4,000 15 1,350
14 15,000 14 4,000 25 1,500
23 15,000 23 4,000 36 1,400
34 15,000 34 4,000 47 1,400
45 15,000 45 4,000
Small Tolls
38 500
Payroll Mfg Supplies
Debit Credit Debit Credit
11 1,845 7 3,000
16 10,456 27 5,000
20 5,658
31 5,658
41 5,658
51 5,658

Worksheet

WORKSHEET
Unadjusted Adjustments Adjusted
Account Debit Credit Debit Credit Debit Credit
Cash 1,012,839
Accounts Receivable 171,000
Rent Deposit 15,000
Furniture 5,000
Acc Deprn - Furniture
Computer 5,000
Acc Deprn - Computers
Storage Equipment 3,000
Acc Deprn - Storage Equip
Parts Inventory 140,000
Finished Goods 31,292
COGS 304,766
Accounts Payable 175,000
Payroll Payable 25,830
Stock 1,000,000 x
Sales 652,500 x
Rent 90,000 x
Equipment Rental 24,000 x
Office Supplies 1,000 x
Manufacturing Supplies 8,000 x
Utilities 7,000 x
Payroll 34,933 x
Small tools 500 x
1,853,330 1,853,330

Income Statement

Balance Sheet

Cash Flows