Beginning balance (February 28, 2009) 1. Purchase Inventory 2. Incur Factory wages 3. Sell inventory for cash and on account 4. Pay for inventory 5. Collect receivables Cash and cash equivalents ,253,947 9. Purchase PPE 17,000,000 8,200,000 4,100,000 IN 6. Incur SG&A (cash and |payable) 7. Pay wages 2.000,000 6,423,789 18. Receive franchise 125,000 498.832 4,229,733 10. Dividends declared and paid 11. All other transactions Unadjusted Trial Balance 12. Adjust for inventory count 13. Record depreciation 14. Wage accrual 15. Consultant's report Pre-closing trial 2,403,458 790,224 balance 18. Closing entry Post-closing (ending) balance 2010 F /S figures Accounts receivable 5,000,000 4, 100,000 Notes receivable, current 702,207) Actual February 28, 3,743,092 4,427,526 Inventories 4,064,611 7,500,000 6,000,000 14,000,000 91,059 91,059 Deferred income taxes 369,197 (66,328) 216,836 Dr. Other current assets 224,378 92,052 3,281,447 Property and equipment, net 5,253,598 (4,215) 461,249 220,163 Notes receivable, less current portion 124,452 498,832 132,859 698,580 5,186,709 Goodwill, net 1,046,944 139,198 263,650 Intangible assets, net 183,135 1,046,944 Other long term assets 91,057 (73,110) 1 10,025 Accounts payable 1,074,643 7,500,000 8,200,000 (3,007) Accrued salaries and wages 423,789 6,000,000 6,423,789 503,189 88,050 646,156 877,832 Other accrued expenses 531,941 3,300,000 646,156 Dividend payable 598,986 (2,885,413) 3,709 (1) 946,528 Deferred income 142,000 827,700 125,000 (46,062) 602,694 Cr. Deferred income taxes Common stock 179,696 66,729 220,938 894,429 Additional paid-in capital 7,311,280 1,112 Retained earnings 5,751,017 315,322 180,808 2,407,167 7,626,602 Sales 22,000,000 6,923,927 Franchise and royalty fees 944,017 5,492,531 22,944,017 Cost of sales 14,000,000 693,786 216,836 5,492,531 Franchise costs 14,910,622 Sales & marketing ,499,477 1,505,431 1,499,477 General and administrative 2,044,569 1,505,431 Retail operating (261,622) 1,750,000 639,200 2,422,147 Depreciation and amortization 6,956 Interest income 698,580 1,756,956 Income tax expense (27,210) 698,580 (27,210) A=L+ OE + R - E 28,000.000 2,090,468 8,200,000 4,000,000 997,664 (7,418) 433,672 1,397,160 2,090,468 (3,580,077)