2017 ACCT 1115 Co. Comparitive statement of Financial Position December 31, 2018 and 2017 Account 2018 Current Assets: Cash 100,000 Accounts Receivable 200,000 Inventory 185,000 Prepaid Insurance 24,000 Total current assets 509,000 Long term Investments 250,000 Equipment 500,000 Accumulated depreciation Equipment (150,000) Total Assets 1,109,000.00 50,000 100,000 125,000 36,000 311,000 80,000 500,000 (100,000) 791,000.00 60,000 Liabilities and sharholders equity Accounts Payable Wages & Salaries Payable Unearned Sales Revenue Income tax payable Total current liabilities Bonds payable Total Liabilities Common shares Retained earnings Total Liabilities and sharholders equity 160,000 75,000 107,500 45,000 387,500 350,000 737,500 100,000 271,500 1,109,000.00 10,000 42,000 112,000 350,000 462,000 100,000 229,000 791,000.00 2017 620,000 620,000 410,000 210,000 ACCT 1115 Co. Comparitive statement of Financial Position December 31, 2018 and 2017 Account 2018 Sales Revenue 713,000 Sales discount Net slaes 713,000 Cost of goods sold 471,500 Gross Profit 241,500 Operating exp: Salaries & wages exp. 17,250 Rent expense 11,500 Utility Expense 5,750 Maintenance exp. Dep. Expense (equip. & Build) 57,500 Bad debt exp 4,025 Insurance exp 13,800 Total operating exp. 109,825 Operating income 131,675 Other revenues and expenses: Rent revenue Interest exp. 34,500 Income before tax 97,175 Income tax exp. 45,000 Net Income 52,175 15,000 10,000 5,000 50,000 3,500 12,000 95,500 114,500 30,000 84,500 42,000 42,500 Jan 1 purchased new building for 586,355. they paid 130,301 cash and they sign 12 note payable for the balance. The note carry interest of 6% The note principle due with the interest on Dec 31, 2019. The building expected useful life 25 years, residual (salvage) value amount of 65,151 ACCT 1115 uses straight line as their method of depreciation. Jan 3, all wages payable from 2018 paid cash Jan 8, they deliver merchandise to customer amount of 107,500 cost of these products are 26,060 Previously ACCT 1115 received cash amount of 107,500 from customer and record it in Dec 18, 2018 in account (Unearned sales revenue) Jan 12, all income taxes owed from last year are paid cash Jan 13, collect from customers 130,301 cash Jan 15, issued common shares for 390,904 cash Jan 16 purchased merchandise for 273,633 from ABC Co., term 3/20, n/45. FOB destination.3% discount if paid in 20 days Jan 21 returned merchandise to ABC co amount of 13,030 Jan 28 paid the amounts owed to ABC CO. Jan 31 paid utilities 6,515 cash jan 31 paid salaries 10,424 cash Feb 2 sold merchandise of 156,361 cost of those goods was 104,241 ACCT 1115 used perpetual inventory system Feb 12 sold merchandise of 78,181 to XYZ CO., term 2/10, n/30. FOB shipping point. cost of those goods was 52,120.2% discount if received in 10 days March 1, XYZ paid their account in full Apr 1 paid rent for the months Jan-Mar amount of 3,909 Apr 15, purchased merchandise for cash 260,602 May 1 borrow from a local bank 130,301 by signing a 12% 12note payable Aug 1, they paid for one-year rent amount of 15,636 Aug 31, paid cash for maintenance and cleaning the building 6,515 Sep 1, paid in salaries 19,545 Sep 30, they rent part of their building to a local business and collect one year rent in advance amount of 31,272 for 12 months Oct 21 sold merchandise on account for 260,602 to BC ltd., cost of those goods was 130,301 Nov 1, Bc Itd., paid 65,151 cash on their account Nov 8 sold merchandise to SK co., for 273,633 term 2/10, n/30. FOB shipping point. Cost of those goods was 182,422. 2% discount if received in 10 days Nov 14, SK paid their account in full Dec 31, paid income taxes amount of 10,000 M N 3. DO NOT type any numbers in the "T" accounts, all numbers MUST be linked to the JE sheet (using equal sign or vlookup) 5 6 7 ASSETS Cash dr + SHAREHOLDERS' EQUITY Common Shares LIABILITIES Accounts Payable cr- dr- dr- dr + Retained earnings or - 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 dr- Notes Payable ont REVENUES dr- Sales Revenue Crt dr- Unearned sales Revenue dr + Accounts Receivable o- dr. Sales Discount 26 27 28 29 30 31 32 33 34 35 36 37 38 dr- Unearned Rent Revenuen dr + or dr + Inventory or Cost of Goods Sold dr- Wages & salaries payable on dr 39 40 41 42 43 44 45 46 47 48 49 Income Tax payable On dr + Rent Expense or - Prepaid Insurance exp. Beg dr- Bee 15 B D E G L M N dr- H Income Tax payable OF+ dr. Rent Expense or Prepaid Insurance exp. Beg dr- Beg 15 dr- Bonds payable On End End Beg dr- Prepaid rent exp. ort End BE dr + Beg alaries & wages Expens or 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 End dr + Long term investments - End Beg End dr + Beg Utility Expense of Equipment c- 10 dr. Beg End End Maintenance exp. C dr- Bee dr. Accumulated dep. Equip Cr- Bet End End Building or- dr + Interest expense or - 70 71 72 73 74 75 75 77 78 79 BO 81 82 RS dr. Beg Beg End End dr + Income tax exp. or Bes Fnd 2017 ACCT 1115 Co. Comparitive statement of Financial Position December 31, 2018 and 2017 Account 2018 Current Assets: Cash 100,000 Accounts Receivable 200,000 Inventory 185,000 Prepaid Insurance 24,000 Total current assets 509,000 Long term Investments 250,000 Equipment 500,000 Accumulated depreciation Equipment (150,000) Total Assets 1,109,000.00 50,000 100,000 125,000 36,000 311,000 80,000 500,000 (100,000) 791,000.00 60,000 Liabilities and sharholders equity Accounts Payable Wages & Salaries Payable Unearned Sales Revenue Income tax payable Total current liabilities Bonds payable Total Liabilities Common shares Retained earnings Total Liabilities and sharholders equity 160,000 75,000 107,500 45,000 387,500 350,000 737,500 100,000 271,500 1,109,000.00 10,000 42,000 112,000 350,000 462,000 100,000 229,000 791,000.00 2017 620,000 620,000 410,000 210,000 ACCT 1115 Co. Comparitive statement of Financial Position December 31, 2018 and 2017 Account 2018 Sales Revenue 713,000 Sales discount Net slaes 713,000 Cost of goods sold 471,500 Gross Profit 241,500 Operating exp: Salaries & wages exp. 17,250 Rent expense 11,500 Utility Expense 5,750 Maintenance exp. Dep. Expense (equip. & Build) 57,500 Bad debt exp 4,025 Insurance exp 13,800 Total operating exp. 109,825 Operating income 131,675 Other revenues and expenses: Rent revenue Interest exp. 34,500 Income before tax 97,175 Income tax exp. 45,000 Net Income 52,175 15,000 10,000 5,000 50,000 3,500 12,000 95,500 114,500 30,000 84,500 42,000 42,500 Jan 1 purchased new building for 586,355. they paid 130,301 cash and they sign 12 note payable for the balance. The note carry interest of 6% The note principle due with the interest on Dec 31, 2019. The building expected useful life 25 years, residual (salvage) value amount of 65,151 ACCT 1115 uses straight line as their method of depreciation. Jan 3, all wages payable from 2018 paid cash Jan 8, they deliver merchandise to customer amount of 107,500 cost of these products are 26,060 Previously ACCT 1115 received cash amount of 107,500 from customer and record it in Dec 18, 2018 in account (Unearned sales revenue) Jan 12, all income taxes owed from last year are paid cash Jan 13, collect from customers 130,301 cash Jan 15, issued common shares for 390,904 cash Jan 16 purchased merchandise for 273,633 from ABC Co., term 3/20, n/45. FOB destination.3% discount if paid in 20 days Jan 21 returned merchandise to ABC co amount of 13,030 Jan 28 paid the amounts owed to ABC CO. Jan 31 paid utilities 6,515 cash jan 31 paid salaries 10,424 cash Feb 2 sold merchandise of 156,361 cost of those goods was 104,241 ACCT 1115 used perpetual inventory system Feb 12 sold merchandise of 78,181 to XYZ CO., term 2/10, n/30. FOB shipping point. cost of those goods was 52,120.2% discount if received in 10 days March 1, XYZ paid their account in full Apr 1 paid rent for the months Jan-Mar amount of 3,909 Apr 15, purchased merchandise for cash 260,602 May 1 borrow from a local bank 130,301 by signing a 12% 12note payable Aug 1, they paid for one-year rent amount of 15,636 Aug 31, paid cash for maintenance and cleaning the building 6,515 Sep 1, paid in salaries 19,545 Sep 30, they rent part of their building to a local business and collect one year rent in advance amount of 31,272 for 12 months Oct 21 sold merchandise on account for 260,602 to BC ltd., cost of those goods was 130,301 Nov 1, Bc Itd., paid 65,151 cash on their account Nov 8 sold merchandise to SK co., for 273,633 term 2/10, n/30. FOB shipping point. Cost of those goods was 182,422. 2% discount if received in 10 days Nov 14, SK paid their account in full Dec 31, paid income taxes amount of 10,000 M N 3. DO NOT type any numbers in the "T" accounts, all numbers MUST be linked to the JE sheet (using equal sign or vlookup) 5 6 7 ASSETS Cash dr + SHAREHOLDERS' EQUITY Common Shares LIABILITIES Accounts Payable cr- dr- dr- dr + Retained earnings or - 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 dr- Notes Payable ont REVENUES dr- Sales Revenue Crt dr- Unearned sales Revenue dr + Accounts Receivable o- dr. Sales Discount 26 27 28 29 30 31 32 33 34 35 36 37 38 dr- Unearned Rent Revenuen dr + or dr + Inventory or Cost of Goods Sold dr- Wages & salaries payable on dr 39 40 41 42 43 44 45 46 47 48 49 Income Tax payable On dr + Rent Expense or - Prepaid Insurance exp. Beg dr- Bee 15 B D E G L M N dr- H Income Tax payable OF+ dr. Rent Expense or Prepaid Insurance exp. Beg dr- Beg 15 dr- Bonds payable On End End Beg dr- Prepaid rent exp. ort End BE dr + Beg alaries & wages Expens or 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 End dr + Long term investments - End Beg End dr + Beg Utility Expense of Equipment c- 10 dr. Beg End End Maintenance exp. C dr- Bee dr. Accumulated dep. Equip Cr- Bet End End Building or- dr + Interest expense or - 70 71 72 73 74 75 75 77 78 79 BO 81 82 RS dr. Beg Beg End End dr + Income tax exp. or Bes Fnd