| Kline Sisters Corporation Trial Balances |
| | | Unadjusted | | | Final Trial Balance |
| Account | | Trial Balance Dec 31, 2016 | | | Decebmer 31, 2015 |
| | | DR | CR | | DR | CR |
| Cash | | $ 190,000 | | | $ 155,000 |
| Accounts receivable | | $ 463,000 | | | $ 455,000 |
| Prepaid Insurance | | $ 8,000 | | | $ 16,000 |
| Inventory | | $ 443,000 | | | $ 435,000 |
| Long Term Investment | | $ 86,000 | | | $ 135,000 |
| Trademark | | $ 36,000 | | | $ 40,000 |
| Land | | $ 300,000 | | | $ 300,000 |
| Property Plant & Equipment | | $ 424,000 | | | $ 400,000 |
| Accumulated Depreciation | | | $ 166,000 | | | $ 145,000 |
| Accounts Payable | | | $ 55,000 | | | $ 78,000 |
| Salaries Payable | | | $ 6,000 | | | $ 9,000 |
| Deferred tax liability | | | $ 25,000 | | | $ 20,000 |
| Lease Liability | | | $ 120,000 |
| Bonds Payable | | | $ 185,000 | | | $ 345,000 |
| Discount on bonds | | $ 33,000 | | | $ 40,000 |
| common stock ($10 par) | | | $ 420,000 | | | $ 400,000 |
| Paid in capital in excess of par-common | | | $ 170,000 | | | $ 150,000 |
| Preferred stock ($1 par) | | | $ 40,000 | | | $ - 0 |
| Paid in capital in excess of par -pref | | | $ 10,000 |
| Retained Earnings | | | $ 829,000 | | | $ 829,000 |
| Dividends | | $ 64,000 |
| Sales Revenue | | | $ 650,000 |
| Investment Revenue | | | $ 18,000 |
| Gain on sale of investments | | | $ 7,000 |
| Cost of goods sold | | $ 274,500 |
| Salaries expense | | $ 82,000 |
| Depreciation expense | | $ 45,000 |
| Trademark amortization expense | | $ 4,000 |
| Insurance expense | | $ 48,000 |
| Bond interest expense | | $ 60,000 |
| Miscellaneous expense | | $ 15,500 |
| Loss on building fire | | $ 67,000 |
| Federal income tax expense | | $ 58,000 |
| Totals | | $ 2,701,000 | $ 2,701,000 | | $ 1,976,000 | $ 1,976,000 |
| Additional information from the 2016 accounting records: |
| Investment revenue includes the Company's $9,000 share of the net income from a 30% ownership interest in Eastern Fiber Optics Corporation. |
| A long-term investment in bonds (AFS), originally purchased for $58,000 on Jan. 1, 2015, was sold for $65,000. |
| Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $5,000. |
| A building that originally cost $96,000 and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $5,000. |
| The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $120,000. (unrelated to machinery lease) |
| $160,000 of bonds were retired at maturity. |
| $20,000 of common stock was sold for $40,000 and $50,000 of 6% convertible preferred stock was sold at par on March 31, 2016. |
| Number of shares authorized equals the number of shares issued and outstanding. |
| Shareholders were paid cash dividends of $64,000. |
hannah525
unadj_trial_balance_kline.xlsx
