AC speed question set

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				Date:	9/23/15
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Davenport University
ACCT202 Practice Set				*Click the following buttons to go to the corresponding worksheets:
Fall 2015

Instructions

/xl/drawings/drawing1.xml#Instructions!A1

Academic Integrity

/xl/drawings/drawing1.xml#'Academic%20Integrity'!A1

Products

/xl/drawings/drawing1.xml#Products!A1

Chart of Accounts - GL

/xl/drawings/drawing1.xml#'Chart%20of%20Accounts%20GL'!A1

Chart of Accounts - AR

/xl/drawings/drawing1.xml#'Chart%20of%20Accounts%20AR%20Ledger'!A1

Chart of Accounts - AP

/xl/drawings/drawing1.xml#'Chart%20of%20Accounts%20AP%20Ledger'!A1

Purchases Journal

/xl/drawings/drawing1.xml#'Purchases%20Journal'!A1

Cash Receipts Journal

/xl/drawings/drawing1.xml#'Cash%20Receipts%20Journal'!A1

Cash Payments Journal

/xl/drawings/drawing1.xml#'Cash%20Payments%20Journal'!A1

General Journal Pg 1

/xl/drawings/drawing1.xml#'General%20Journal'!A1

General Journal Pg 2

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General Journal Pg 3

/xl/drawings/drawing1.xml#'General%20Journal%20CLOSING'!A1

General Ledger

/xl/drawings/drawing1.xml#'General%20Ledger'!A1

A/R Sub-Ledger

/xl/drawings/drawing1.xml#'AR%20Ledger'!A1

A/P Sub-Ledger

/xl/drawings/drawing1.xml#'AP%20Ledger'!A1

Inventory Control Card

/xl/drawings/drawing1.xml#'Inventory%20Control'!A1

Transactions

/xl/drawings/drawing1.xml#Transactions!A1

Sales Journal

/xl/drawings/drawing1.xml#'Sales%20Journal'!A1

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. As you work on parts of the project, you will note references to pages or sections of your accounting textbooks that will provide examples or explanations related to that task. You are also 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 3/10, net 30.

b. When AC Speed sells merchandise to a customer on account, they offer that customer credit terms of 3/10, net 45.

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 first-in, first-out (FIFO) inventory costing method.

e. Subsidiary ledger records are kept for each customer and for each vendor. The balances in the customer subsidiary ledger records, in total, must equal the Accounts Receivable account balance in the general ledger. The balances in the vendor subsidiary ledger records, in total, must equal the Accounts Payable account balance in the general ledger.

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, such as the one on page 220.

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, similar in format to the example on page 711. 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 18 on financial statement analysis. Page 809, 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 18 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 18 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.

Main Menu

/xl/drawings/drawing2.xml#'Main%20Menu'!A1

Academic Integrity Statement

/xl/drawings/drawing2.xml#'Academic%20Integrity'!A1

Academic Integrity

			Project Academic Integrity Statement
			I understand that this is an individual, not a team, project; that I am expected to do my own work on the project. I may discuss project requirements in general terms with others, but I am not permitted to collaborate with anyone or copy anyone's work, manually or electronically, in full or in part.
			I also understand that I am not permitted to supply anyone with the results of my work or with information or assistance that compromises another student's completion of the project through his or her own efforts.
			If I have any questions about these requirements, I will promptly ask my instrucor for clarification.
			I understand that any violation of this project academic integrity statement will lead, at minimum, to a failing grade for the project.
			By entering my name and student ID number below, I am attesting that I have read, understood, and will personally adhere to this project academic integrity statement.
			Student Name
			Student ID Number
			Date

Main Menu

/xl/drawings/drawing3.xml#'Main%20Menu'!A1

Instructions

/xl/drawings/drawing3.xml#Instructions!A1

Transactions

JULY JOURNAL TRANSACTIONS
1-Jul	Issued 8,200 shares of common stock for $11 per share (Refer to Chart of Accounts GL for description of common stock).
1-Jul	Signed a two year 14%, $216,000 note payable with Fifth Third Bank.
1-Jul	Sold 1500 speakers on account to GM for $112 each, Invoice #2301
1-Jul	Purchased 2800 rearview mirrors on credit from Gentex for $45 each.
2-Jul	Rented idle warehouse space to a new tenant and received $15,000 for three months rent. (July - October)
2-Jul	Sold 250 rearview mirrors on account to Honda for $105 each, Invoice #2302
3-Jul	Purchased 3450 speakers on credit from Bose for $72 each.
3-Jul	Sold 1300 GPS units on account to Toyota for $65 each, Invoice #2303
4-Jul	60 defective speakers were returned from GM. A credit was issued to the customer.
5-Jul	The 60 defective speakers were returned to Bose.
6-Jul	Paid $650 for equipment repair. Check # 7000
7-Jul	Reimbursed employees for entertainment expenses totaling $300. Check # 7001
8-Jul	Paid June utility bill of $1850. Check # 7002
8-Jul	Purchased office supplies from Staples on credit for $700.
11-Jul	Paid in full for the July 1 purchase from Gentex. Check # 7003
11-Jul	Received payment from GM on remaining balance for July 1st sale
12-Jul	The Board of Directors declared a cash dividend of $0.50 per share for shareholders of record on July 14th, payable on July 20th.
12-Jul	Purchased 3100 GPS units from Garmin for $28 each on credit.
12-Jul	Received payment in full from Honda for July 2nd sale.
13-Jul	Paid in full for the July 3rd purchase from Bose, Check # 7004
13-Jul	Received payment in full from Toyota for July 3nd sale
15-Jul	Check # 7005 was issued for payroll: $23,750 for salaries and $1,925 for wages
17-Jul	Bought new Office Furniture for $15,600. Furniture use begins in August. Check # 7006
19-Jul	1550 GPS units purchased on July 12th from Garmin were found to be the wrong model. All 1550 units were returned.
19-Jul	Paid $1400 bill for phone survey performed by marketing consultant, Check # 7007
20-Jul	Received $122,500 from Ford for June 5th sales.
20-Jul	Paid $21,000 mortgage payment to Fifth Third Bank ($6,000 principal and $15,000 interest), Check # 7008.
20-Jul	Paid the dividend that was declared on July 12, Check # 7009
22-Jul	Paid the remaining balance on the purchase from Garmin on July 12th. Check #7010
23-Jul	General Motors declared bankruptcy. $10,000 receivable from General Motors was written off .
25-Jul	Received $119,050 payment from Toyota for sale on June 11th.
26-Jul	Purchased 800 shares of Treasury Stock for $15 per share, Check # 7011 (cost method)
26-Jul	Sold 425 speakers to Honda for $114 each, Invoice # 2304
27-Jul	Paid Gentex $40,000 for June 27 purchase, Check # 7012
27-Jul	Sold 1850 Rearview mirrors to Ford for $89 each, Invoice # 2305
28-Jul	Issued bonds payable at face value for $ 485,000
29-Jul	Paid Bose $137,740 for balance due in June, Check # 7013
29-Jul	Check #7014 was issued for payroll: $ 20,500 for salaries and $ 3,560 for wages
30-Jul	Received and paid legal service invoice of $9,025, Check # 7015
31-Jul	Paid the first month's principal of $25,000 plus interest for notes issued at the beginning of the month. Check # 7016
*All purchases on account terms of 3/10, net 30
**All credit sales have terms of 3/10, net 45
July Month-end Adjustments:
( A )	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 estimate of bad debt expense should be 1.5% of total sales.
( B )	The balance in the Prepaid Insurance account at the beginning of July represents 6 months of coverage. Record the amount of insurance expense for July. (p.102)
( C )	AC Speed has earned one month of the rent prepaid by their tenant at the beginning of July. (pp. 104-105)
( D )	The Company took a physical inventory count on July 31 and found the following inventory on hand:
	Merchandise Inventory - $310,000 (p.211)
( E )	The Company took a physical count of Office Supplies on July 31 and found the following to be on hand:
	Office Supplies - $2,415 (p.101)
( F )	Depreciation on the company's fixed assets for the month of July is as follows:
	1. The furniture and equipment for the warehouse purchased a few years ago cost $10,000. These assets have a 10-year life, with $1500 salvage value, and are depreciated using the straight-line method. (p.444)
	2. The furniture and equipment for the office was purchased last year for $8,500. These assets have a 5 year life, an expected salvage value of $1,500, and are depreciated using double declining method.
	3.The new office furniture purchased in July has a 5 year life with a $500 salvage value, and is depreciated using the straight line method

Main Menu

/xl/drawings/drawing4.xml#'Main%20Menu'!A1

Products

Product Name	Description
GPS	In vehicle GPS unit
Speakers	High sound quality speakers
Rearview Mirror	Rearview mirror with built in reverse camera display

Main Menu

/xl/drawings/drawing5.xml#'Main%20Menu'!A1

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, 125,000 Authorized; 75,000 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	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

Main Menu

/xl/drawings/drawing6.xml#'Main%20Menu'!A1

Chart of Accounts AR Ledger

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

Main Menu

/xl/drawings/drawing7.xml#'Main%20Menu'!A1

Chart of Accounts AP Ledger

AC Speed Corporation
Chart of Accounts - Accounts Payable Ledger
	Account Name
	Garmin
	Magellan
	Bose
	Gentex

Main Menu

/xl/drawings/drawing8.xml#'Main%20Menu'!A1

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
				d

Main Menu

/xl/drawings/drawing9.xml#'Main%20Menu'!A1

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

Main Menu

/xl/drawings/drawing10.xml#'Main%20Menu'!A1

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-Jul

2500

$ 40.00

$ 100,000.00

$ - 0

$ - 0

$ 100,000.00

Shoe:

Speakers

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-Jul

2000

$ 71.00

$ 142,000.00

$ - 0

$ - 0

$ 142,000.00

Shoe:

Rearview Mirror

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-Jul

1200

$ 43.00

$ 51,600.00

$ - 0

$ - 0

$ 51,600.00

Main Menu

/xl/drawings/drawing11.xml#'Main%20Menu'!A1

Receipts

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

Main Menu

/xl/drawings/drawing12.xml#'Main%20Menu'!A1

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

Main Menu

/xl/drawings/drawing13.xml#'Main%20Menu'!A1

General Journal

AC Speed Corporation
General Journal
Date	Accounts	Post Ref	DEBIT	CREDIT

Main Menu

/xl/drawings/drawing14.xml#'Main%20Menu'!A1

General Journal ADJ

AC Speed Corporation
General Journal
Date		Accounts	Post Ref	DEBIT	CREDIT

Main Menu

/xl/drawings/drawing15.xml#'Main%20Menu'!A1

General Journal Closing

AC Speed Corporation
General Journal
Date	Accounts	Post Ref	DEBIT	CREDIT

Main Menu

/xl/drawings/drawing16.xml#'Main%20Menu'!A1

General Ledger

Account:	Cash				Account No.	100
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun	Balance				$ 93,900.00
Account:	Accounts Receivable				Account No.	102
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun	Balance				$ 490,000.00
Account:	Allowance for Doubtful Accounts				Account No.	103
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun	Balance					$ 15,000.00
Account:	Merchandise Inventory				Account No.	104
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun	Balance				$ 293,600.00
Account:	Office Supplies				Account No.	105
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun	Balance				$ 2,000.00
Account:	Prepaid Insurance				Account No.	106
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun					$ 30,000.00
Account:	Land				Account No.	140
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-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
30-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
30-Jun	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
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
30-Jun	Balance					$ 1,900.00
Account:	Equipment & Furniture - Office				Account No.	153
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
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
30-Jun	Balance					$ 1,600.00
Account:	Accounts Payable				Account No.	201
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun	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
Account:	Bonds Payable				Account No.	251
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
Account:	Mortgage (Warehouse) Payable				Account No.	252
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
1-Jul						$ 200,000.00
Account:	Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding				Account No.	300
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun	Balance					$ 75,000.00
Account:	Paid In Capital - Excess of Par				Account No.	301
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun						$ 1,341,000.00
Account:	Retained Earnings				Account No.	330
			Transaction		Account Balance
Date	Item	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun	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:	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

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/xl/drawings/drawing17.xml#'Main%20Menu'!A1

AR Ledger

Account:	General Motors
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun				$ 10,000.00
Account:	Ford Motor Co.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
5-Jun		$ 200,000.00		$ 200,000.00
Account:	Toyota
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
11-Jun		$ 200,000.00		$ 200,000.00
Account:	Honda
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT

Main Menu

/xl/drawings/drawing18.xml#'Main%20Menu'!A1

AP ledger

Account:	Garmin			Account No.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun					$ 18,000.00
Account:	Gentex			Account No.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
27-Jun					$ 40,000.00
Account:	Bose			Account No.
		Transaction		Account Balance
Date	Post Ref	DEBIT	CREDIT	DEBIT	CREDIT
30-Jun			$ 142,000.00		$ 142,000.00

Main Menu

/xl/drawings/drawing19.xml#'Main%20Menu'!A1

Worksheet July 2011

		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, 125,000 Authorized; 75,000 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	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

Main Menu

/xl/drawings/drawing20.xml#'Main%20Menu'!A1

IS July 2011

Income Statement

Main Menu

/xl/drawings/drawing21.xml#'Main%20Menu'!A1

Stmt RE July 2011

Statement of Retained Earnings

Main Menu

/xl/drawings/drawing22.xml#'Main%20Menu'!A1

BS July 2011

Balance Sheet

Main Menu

/xl/drawings/drawing23.xml#'Main%20Menu'!A1

Post Closing Trial Balance

0
Post-closing Trial Balance
	DEBIT	CREDIT

Main Menu

/xl/drawings/drawing24.xml#'Main%20Menu'!A1

Comparative IS

AC Speed Corporation
Income Statement
	12/31/11		12/31/10		12/31/09		12/31/08		7/31/11

Comparative BS

AC Speed Corporation
Balance Sheet
	12/31/11		12/31/10		12/31/09		12/31/08		7/31/11

Ratios

	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009		INDUSTRY
Liquidity
Current Ratio (One decimal place)							2.2
Acid Test Ratio (One decimal place)							1.5
Receivables Turnover (One decimal place)							10
Inventory Turnover (One decimal place)							9.5
Profitability
Profit Margin (% with two decimal places)							7.5%
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)							7.9
Price-Earnings (P/E ) Ratio (Two decimal places)							10.72
Payout Ratio (% One decimal place)							6.5%
Solvency Ratios
Debt to Total Assets Ratio (% One decimal place)							42.2%
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Common Dividends	41,600		37,500		35,000
Weighted Average Common Shares	65,000		63,000		63,000
Market Price per Share	56		52		50
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.

Main Menu

/xl/drawings/drawing25.xml#'Main%20Menu'!A1

Adj Trial Balances Prior Yrs

	B/S Adjuster	112%	112%	106%	106%	110%	110%	109%	109%
	I/S Adjuster	12	12	102%	102%	102%	102%	101%	101%
		Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009		Dec. 31, 2008		July 31, 2011
		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	1,047,528	0	1,007,602	0	901,464	0	891,052	0	584,120
102	Accounts Receivable	1,149,993	0	1,048,769	0	979,226	0	853,307	0	515,000
103	Allowance for Doubtful Accounts	0	20,192	0	20,674	0	20,463	0	22,959		14,042
104	Merchandise Inventory	696,308	0	721,053	0	757,584	0	859,628	0	329,050
105	Office Supplies	3,996	0	3,811	0	4,089	0	4,295	0	2,365
106	Prepaid Insurance	28,022	0	27,945	0	26,074	0	25,294	0	20,000
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	33,600	0	35,616	0	39,178	0	42,704	0	30,000
152	Accumulated Depreciation - Equip & Furn. - Warehouse	0	2,589	0	2,687	0	2,444	0	2,511		2,042
153	Equipment & Furniture - Office	13,309	0	13,391	0	14,402	0	16,761	0	8,500
154	Accumulated Depreciation - Equip & Furn. - Office	0	2,330	0	2,628	0	2,947	0	2,089		1,830
201	Accounts Payable	0	811,012	0	798,712	0	756,324	0	613,841		741,860
202	Wages Payable	0	0	0	0	0	0	0	0
203	Interest Payable	0	0	0	0	0	0	0	0
204	Dividends Payable	0	0	0	0	0	0	0	0
205	Unearned Rent	0	9,295	0	9,847	0	8,210	0	9,346		10,000
250	Notes Payable	0	207,663	0	222,106	0	239,734	0	260,449		180,000
251	Bonds Payable	0	577,677	0	627,937	0	695,046	0	712,735		520,000
252	Mortgage (Warehouse) Payable	0	119,054	0	125,759	0	138,079	0	143,791		195,000
300	Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding	0	65,000	0	65,000	0	65,000	0	65,000		66,300
301	Paid In Capital - Excess of Par	0	1,545,000	0	1,545,000	0	1,545,000	0	1,545,000		1,410,300
330	Retained Earnings	0	1,086,913		1,037,616		933,734		1,001,124		167,100
340	Treasury Stock	14,560	0	14,560	0	14,560	0	14,560	0	13,000
500	Sales	0	7,588,995	0	6,376,923	0	6,204,281	0	5,823,100		750,000
510	Sales Discounts	155,056	0	167,848	0	134,257	0	114,133	0	10,110
511	Sales Returns & Allowances	108,742	0	127,321	0	118,629	0	121,863	0	8,000
600	Cost of Goods Sold	5,635,022	0	4,616,540	0	4,575,156		4,203,855		457,032
700	Wage Expense (hourly workers)	93,477	0	86,607	0	88,788	0	89,758	0	7,120
701	Salaries Expense (Exempt Staff)	546,225	0	533,062	0	524,917	0	528,856	0	41,000
702	Marketing Expense	21,280	0	18,432	0	16,927	0	15,824	0	1,500
703	Travel and Entertainment Expense	17,460	0	13,446	0	11,399	0	8,850	0	800
704	Bad Debt Expense	189,714	0	114,213	0	114,543	0	116,518	0	9,000
705	Property Tax Expense	0	0	0	0	0	0	0	0
706	Maintenance & Repair Expense	5,758	0	5,961	0	7,742	0	8,000	0	500
707	Legal Expenses	67,201	0	65,611	0	63,411	0	57,674	0	5,060
708	Insurance Expense	48,850	0	50,406	0	52,290	0	54,196	0	4,300
709	Utilities Expense	18,060	0	18,370	0	19,371	0	20,028	0	1,750
710	Office Supplies Expense	4,120	0	4,769	0	5,506	0	5,705	0	435
711	Telecommunications Expense	0	0	0	0	0	0	0	0
712	Depreciation Expense - Equip & Furniture - Warehouse	2,002	0	1,995	0	1,680	0	1,391	0	142
713	Depreciation Expense - Equip & Furniture - Office	3,806	0	3,270	0	2,979	0	2,384	0	230
800	Rent Income	0	23,620	0	24,110	0	24,970	0	25,575		3,640
900	Interest Expense	154,650	0	157,800	0	161,460	0	170,284	0	12,500
	Total	13,559,339	13,559,339	12,358,998	12,358,998	12,136,232	12,136,232	11,727,520	11,727,520	5,562,114	5,562,114