1. Record the account information listed on the trial balance (page 7 of the instructions) onto the general ledger sheets provided (pages WP-3 through WP-10). [Note: Cash, Accounts Receivable, and Prepaid Rent have already been done for you.] The balances of all of the accounts should be dated as of December 31, 20XX. (Make sure that you also write-in the account number for each of these general ledger accountsfound on the chart of accounts, page 5 of these instructions).

2. Prepare the worksheet (WP-2) for year-end procedures

Suggested steps are as follows:

a. Complete the chart of accounts that is provided for Veggies-R-Us. (page 5 of these instructions), i.e., state whether each account is an asset, liability, shareholders equity, revenue, or expense account.

b. Transfer the account names from the chart of accounts, (page 5 of these instructions) to the worksheet that is provided (WP-2). Make sure that you list all of these accounts on the worksheet (even if they dont currently have balances) and make sure that you list them in the order that they are listed on the chart of accounts.

c. Transfer the balances that you have from your general ledger (completed in step #1) to the worksheet started in step 2.a. [Check figures are debit/credit = $438,290]

3. Prepare the required adjusting journal entries for the month-end based upon the information provided on page 6 of these instructions (Information for AJEs #1 through #10).

Suggested steps are as follows:

a. Based on the information provided in a. on page 6 (of these instructions), determine the required adjusting journal entry. Write up this adjusting journal entry on the General Journal sheets provided (WP-11 to WP-14). Make sure to properly date and label your adjusting journal entry (i.e., 1, 2, 3, etc). Start with the account to be debited first, then the account to be credited is written in next. Provide a description for each of your adjusting journal entries. NOTE: These adjusting journal entries are within the group of journal entries that you were required to do throughout the semester.

b. Post this adjusting journal entry from the General Journal to the proper accounts on your worksheet (WP-2). Indicate that you have posted the adjusted journal entry by making a squiggly line in the POST. REF. Column of the General Journal. (Remember, put this squiggly line on the far right side of this column because later we will need to enter the account number in this column when we post this adjusting journal entry to the general ledger. Dont do this yet, we have to complete the worksheet first!)

c. Now go back to page 6 (of these instructions), and perform the same steps from above (3.a. & 3.b.) for the information provided in b. through j.

d. After you have completed all of the required adjusting journal entries, make sure that your worksheet balances. To do this, add up all of the debits and all of the credits that you have made in the ADJUSTMENTS column of the worksheet. Your debits should equal your credits. [Check number = $37,097]

4. If your worksheet balances, it is now time to calculate the adjusted trail balance amounts on the worksheet. Once you have completed this step you need to once again make sure that your worksheet balances. Add up the debits and credits in the ADJUSTED TRIAL BALANCE column of the worksheets. Your debits should equal your credits. [Check number = $448,232 for debits and credits, Cash = $26,750; Accum Depr-Building = $30,580; Premium on bonds payable = $5,700; Revenue = $154,775]

5. Complete the INCOME STATEMENT and BALANCE SHEET columns of the worksheet. The debits and credits will not be equal, the difference for both of these sections should = $55,693 (Net Income for the period).

6. Post the adjusting journal entries from your general journal (WP-11 through WP-14) to the proper General Ledger accounts (WP-3 through WP-10). When you have completed posting an amount from the General Journal to the General Ledger, enter the account number that you posted this AJE to in the POST. REF. Column of the General Journal.

Make sure that the balances in your General Ledger accounts EQUAL the balances on your Worksheet (WP-2) after your have posted the Adjusting Journal Entries to the General Ledger. (All of these account amounts must equal, or a mistake has been made!)

7. With the aid of your worksheet, prepare formal financial statements for Veggies-R-Us., for the year ended December 31, 20XX. (Use your text book if necessary to prepare these statements: Income Statement, Statement of Shareholders Equity, and a classified Balance Sheet. Sample financial statements can also be found at the end of the excel file called Layout of worksheets)

[check figures, net income = $55,693; Total Assets = $295,478; Retained Earnings 12/31/20XX = $105,363.]

8. Use General Journal sheet WP-11 through WP-14 to prepare closing entries. Post these closing entries to the General Ledger. (After this step is completed, all of your revenue accounts, expense accounts, and the dividend account should have a balance of 0-.)

The trial balance of Veggies-R-Us., at December 31, 20XX, and the data needed for the year-end adjustments follow. (Round all results to the nearest whole dollar amount.)

The dollar value of supplies on hand at year end = $5,250; this was determined after taking a physical inventory.

Prepaid rent still in force at December 31, $900.

Depreciation on furniture for the year, $210.

Depreciation on building for the year, $1,980.

Depreciation on equipment for the year, $1,125.

At the end of the year, Veggies-R-Us. owed P-Tato $480 and $820 to other employees of the company for work performed during the year just ended.

Unearned revenue, customer deposits still unearned at December 31 was $3,125.

Veggies-R-Us. uses the allowance method to determine their bad debt expense. The allowance for bad debts is based upon the balance in accounts receivable. Based upon past experience Veggies-R-Us. uses the rate of 0.75% (.0075) of accounts receivable to determine the appropriate balance in the Allowance for Doubtful accounts. Round the balance in this allowance account (your calculated year end balance) to the nearest whole dollar.

Bonds payable info: The principal amount (a.k.a. face value, par value, stated value) of these bonds = $150,000. These bonds have a 10 year term. The stated rate (a.k.a. contract rate, nominal rate, contract rate) of interest on these bonds = 5%. Theses bonds are dated July 1, 20XX (current year) and were sold on July 1, 20XX (current year) for the sum of $156,000.

Interest on these bonds is to be paid semi-annually on January 1 and July 1 of each year. An entry needs to be made for December 31s accrued interest due and for the appropriate amount relating to the amortization of the premium (use straight-line amortization for this premium). A check will be written and issued for the appropriate amount of interest due on January 1. (Check out your textbook pages 594 597)

The investments that A. Duck Ponds currently has in their investment account (current asset) represents investments that were purchased recently. Based upon stock market quotes obtained for December 31, the market value of these investments = $112,000. (Consider these to be trading securities pg 632-633 of your textbook)

Account Title

Debit

Credit

Cash

$26,750

Accounts receivable

47,630

Allowance for doubtful accounts

250

Prepaid rent

1,680

Supplies

8,700

Investments

113,520

Furniture

15,350

Accumulated depreciation-furniture

12,800

Equipment

44,600

Accumulated depreciation-equipment

1,830

Building

89,900

Accumulated depreciation-building

28,600

Accounts payable

6,240

Salary payable

Unearned revenue, customer deposits

25,500

Bonds payable

150,000

Premium of bonds payable

6,000

Common stock

20,000

Retained earnings

54,920

Dividends

5,250

Revenue

132,400

Salary expense

51,600

Rent expense

5,000

Utilities expense

10,410

Depreciation expense-furniture

0

Depreciation expense-equipment

0

Depreciation expense-building

0

Advertising expense

5,650

Supplies expense

12,000

Bad debts expense

0

Interest expense

0

Total

$438,290

$438,290