ACC3301 - Intermediate Accounting II Practice Assessment Assignment Instructions Please use the Adjusted Trial Balance for Rockford Corporation included as a separate Excel file to complete this assignment. Note that the Excel file contains tabs for the individual worksheets designated for each of the required statements or assignments. Please name the workbook you submit as specified below. You are asked to prepare the following statements: Income Statement for the year ending December 31, 2019 Statement of Retained Earnings for the year ending December 31, 2019 Statement of Stockholders Equity for the year ending December 31, 2019 Balance Sheet at December 31, 2019 In addition to the above statements, you are to prepare the journal entries required to close the books for Rockford Corporation at December 31, 2019 Note: The following relate to Common Stock Authorized - 1,000,000 shares Issued - 100,000 shares Outstanding - 65,000 shares Please prepare this assignment using the Microsoft Excel file provided with this assignment. Each statement or schedule should be prepared using a separate tab contained in your Excel spreadsheet workbook. Please name the workbook beginning with your last name then first initial followed by Practice Assessment ACC3300 Spring 2020 (as an example, I would name my file submission as JacksonT Practice Assessment ACC3301 Spring 2020). This assignment is to be submitted using Blackboard on or before the last day of class as indicated in the course syllabus. Thank you for your attention to this assignment. Please let me know if you have questions, need additional information or explanation, or would like to discuss the assignment further. Thomas A. Jackson, CPA Lecturer - Accounting and International Business Marilyn Davies College of Business University of Houston-Downtown Rockford Corporation Adjusted Trial Balance December 31, 2019 2019 Account Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Inventory Supplies Prepaid Insurance Prepaid Rent Other Assets Land Buildings Accumulated Depreciation-Buildings Trucks Accumulated Depreciation-Trucks Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Salaries and Wages Payable FICA Taxes Payable Federal Income Taxes Payable Federal Withholding Taxes Payable FUTA Payable SUTA Payable Interest Payable Dividends Payable Notes Payable-Long Term Bonds Payable Discount on Bonds Payable Common Stock-$30 Par (10,000 authorized, 6,900 issued, 5,200 outstanding) Paid-in Capital in Excess of Par-Common Retained Earnings Treasury Stock Dividends Sales Revenue Sales Discounts Sales Returns and Allowances $ Debit Credit 280,178 $ 280,280 14,014 104,200 1,281 448,502 830 5,200 3,500 160,000 99,650 306,000 91,960 70,500 47,540 38,900 19,125 15,000 181,549 4,406 9,050 15,335 400 2,600 10,955 8,740 113,000 275,000 4,864 125,610 8,740 77,281 14,060 207,000 292,400 362,748 5,660,052 - Account Cost of Goods Sold Advertising Expense Bad Debt Expense Supplies Expense Freight-Out Office Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Plant Assets Interest Expense Loss on Disposal of Plant Assets Income Tax Expense Total $ Debit 3,985,262 7,678 13,134 4,458 19,490 1,455 37,745 4,365 995,752 21,910 87,441 17,478 37,061 500 72,000 7,335,305 $ Credit 4,431 7,335,305 Rockford Corporation Adjusted Trial Balance December 31, 2018 2018 Account Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Inventory Supplies Prepaid Insurance Prepaid Rent Other Assets Land Buildings Accumulated Depreciation-Buildings Trucks Accumulated Depreciation-Trucks Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Salaries and Wages Payable FICA Taxes Payable Federal Income Taxes Payable Federal Withholding Taxes Payable FUTA Payable SUTA Payable Interest Payable Dividends Payable Notes Payable-Long Term Bonds Payable Discount on Bonds Payable Common Stock-$30 Par (10,000 autorized, 6,900 issued, 5,200 outstanding) Paid-in Capital in Excess of Par-Common Retained Earnings Treasury Stock Dividends Sales Revenue Sales Discounts Sales Returns and Allowances $ Debit Credit 280,178 $ 280,280 14,014 104,200 1,281 448,502 830 5,200 3,500 160,000 99,650 306,000 91,960 70,500 47,540 38,900 19,125 15,000 181,549 4,406 9,050 15,335 400 2,600 10,955 8,740 113,000 275,000 4,864 125,610 8,740 77,281 14,060 207,000 292,400 362,748 5,660,052 - Account Cost of Goods Sold Advertising Expense Bad Debt Expense Supplies Expense Freight-Out Office Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Plant Assets Interest Expense Loss on Disposal of Plant Assets Income Tax Expense Total $ Debit 3,985,262 7,678 13,134 4,458 19,490 1,455 37,745 4,365 995,752 21,910 87,441 17,478 37,061 500 72,000 7,335,305 $ Credit 4,431 7,335,305 Rockford Corporation Income Statement For the Year Ended December 31, 2018 Revenues Sales Revenue Less: Sales Discounts Sales Returns and Allowances Net Sales Revenue $ $ Gross Profit Earnings per Share 5,660,052 $ 5,568,711 $ $ 3,985,262 1,583,449 $ 27,168 $ $ $ 1,183,738 1,210,906 372,543 $ 4,431 77,281 14,060 Cost of Good Sold Expenses Selling Expenses Advertising Expense $ Freight-Out $ Total Selling Expense General & Administrative Expense Bad Debt Expense $ Supplies Expense Office Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Payroll Tax Expense Utilities Expense $ Total General & Administrative Expense Total Selling, General & Administrative Expense Operating Income Other Revenues and Gains Interest Revenue Other Expenses and Losses Interest Expense $ Loss on Disposal of Plant Assets $ Income Before Income Taxes Income Tax Expense Net Income $ 7,678 19,490 13,134 4,458 1,455 37,745 4,365 995,752 21,910 87,441 17,478 37,061 500 $ $ $ 37,561 339,413 72,000 267,413 $ 51.43 Rockford Corporation Statement of Retained Earnings For the Year Ended December 31, 2018 B Balance - January 1, 2018 +A Additions: Net Income -S Subtractions: Dividends =E Balance - December 31, 2018 $ 362,748 267,413 $ 8,740 621,421 Rockford Corporation Statement of Stockholder's Equity For the Year Ended December 31, 2018 Paid-in Capital in Excess of Par-Common Common Stock Beginning Balance - January 1, 2018 Additions: Net Income Subtractions: Dividends Ending Balance - December 31, 2018 $ 207,000 $ - $ 207,000 $ 292,400 292,400 Rockford Corporation Balance Sheet December 31, 2018 Assets Current Assets Cash Accounts Receivable Less: Allowance for Doubtful Accounts Notes Receivable Interest Receivable Inventory Supplies Prepaid Insurance Prepaid Rent Total Current Assets Non Current Assets Property, Plant and Equipment Land Buildings $ Accumulated Depreciation-Buildings Trucks Accumulated Depreciation-Trucks Equipment Accumulated Depreciation-Equipment $ Total Property, Plant and Equipment Other Assets Total Assets Liabilities Current Liabilities Notes Payable-Short Term Accounts Payable Salaries and Wages Payable FICA Taxes Payable Federal Withholding Taxes Payable FUTA Payable SUTA Payable Interest Payable Dividends Payable Total Current Liabilities Long-Term Liabilities Notes Payable-Long Term Bonds Payable Discount on Bonds Payable $ 280,280 14,014 $ $ 306,000 91,960 70,500 47,540 38,900 19,125 $ $ $ 280,178 266,266 104,200 1,281 448,502 830 5,200 3,500 1,109,957 99,650 214,040 22,960 19,775 356,425 160,000 1,626,382 15,000 181,549 4,406 9,050 15,335 400 2,600 10,955 8,740 248,035 $ 275,000 4,864 113,000 270,136 Total Long-Term Liabilities Total Liabilities $ 383,136 631,171 $ 207,000 Stockholders' Equity Contributed Capital Common Stock-$30 Par (10,000 autorized, 6,900 issued, 5,200 outstanding) Paid-in Capital in Excess of Par-Common Retained Earnings Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 292,400 621,421 $ (125,610) $ 995,211 $ 1,626,382 Rockford Corporation Closing Entries December 31, 2018 Account(s) Debit Step 1 - Close Temporary Accounts with a Credit Balance Sales Revenue 5,660,052 Interest Revenue 4,431 Retained Earnings Step 2 - Close Temporary Accounts with a Debit Balance Retained Earnings 5,397,070 Sales Discounts Sales Returns and Allowances Cost of Goods Sold Advertising Expense Bad Debt Expense Supplies Expense Freight-Out Office Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Expense Loss on Disposal of Plant Assets Income Tax Expense Step 3 - Close Dividends to Retained Earnings Retained Earnings Dividends Credit 5,664,483 77,281 14,060 ### 7,678 13,134 4,458 19,490 1,455 37,745 4,365 995,752 21,910 87,441 17,478 37,061 500 72,000 8,740 8,740