Financial Statement Analysis
[This section should center on your analysis of the financial performance of the company based on the statements you prepared. Illustrate the company's cash position, its net income as a percentage of sales, and its current liabilities to current assets position. Explain what this indicates about the company's current financial position and performance.] 
A Company General Journal Entries October, 20xx Accounts Credit Date 1-Oct Cash Common Stook Debit 25,000.00 25,000.00 1-00 Baking Supplies Accounts Payable 8,500.00 8,500.00 10,000.00 3-Oct Cash Notes Payable 10,000.00 7-0 Rent Expense Prepaid Rent Cash 1,500.00 1,500.00 3,000.00 375.00 10-Oct Business License Expense Cash 375.00 250.00 11-Oct Misc. Expense Cash 250.00 5,000.00 13-Oct Baking Equipment Common Stock 5,000.00 200.00 13-Oct Advertising Expense Cash 200.00 300.00 14-Oct Office Supplies Cash 300.00 75.00 30-Oct Telephone Expense Accounts Payable 75.00 1,200.00 31-Oct Prepaid Insurance Cash 1,200.00 120.00 31-Oct Wages Expense Wages Payable 120.00 31-OctCash Accounts Receivable Bakery Sales 10,000.00 5,000.00 15,000.00 Total 69,020.00 69,020.00 A Company General Journal Entries November, 20xx Accounts Credit Date 5-Nov Wages Payable Cash Debit 120.00 120.00 3,800.00 8-Nov Cash Accounts Receivable 3,800.00 75.00 10-Nov Accounts Payable Cash 75.00 5,000.00 15-Nov Baking Supplies Accounts Payable 5,000.00 480.00 15-Nov Wages Expense Wages Payable 480.00 1,500.00 15-Nov Rent Expense Cash 1,500.00 1,000.00 18-Nov Cash Accounts Receivable 1,000.00 8,500.00 20-Nov Accounts Payable Cash 8,500.00 480.00 20-Nov Wages Payable Cash 480.00 300.00 22-Nov Office Supplies Cash 300.00 75.00 30-Nov Telephone Expense Accounts Payable 75.00 420.00 30-Nov Wages Expense Wages Payable 420.00 30-Nov Cash Accounts Receivable Bakery Sales 12,500.00 7,500.00 20,000.00 Total 41,750.00 41,750.00 December, 20xx Accounts Credit Date 1-Dec Dividends Cash Debit 10,000.00 10,000.00 420.00 5-Deo Wages Payable Cash 420.00 60.00 7-Dec Merchandise Inventory Cash 60.00 4,000.00 8-Dec Cash Accounts Receivable 4,000.00 75.00 10-Dec Accounts Payable Cash 75.00 7,000.00 11-Dec Baking Supplies Accounts Payable 7,000.00 5,000.00 13-Dec Accounts Payable Cash 5,000.00 456.00 15-Dec Wages Expense Wages Payable 456.00 1500.00 15-Dec Rent Expense Cash 1,500.00 68.00 15-Dec Cash Merchandise Sales 68.00 48.00 15-Dec Cost of Goods Sold Merchandise Inventory 48.00 20-Dec Wages Payable Cash 456.00 456.00 122.00 20-Dec Merchandise Inventory Cash 122.00 153.00 24-Deo Cash Merchandise Sales 153.00 109.60 24-Dec Cost of Goods Sold Merchandise Inventory 109.60 30-Dec Merchandise Inventory Cash 151.25 151.25 480.00 31-Deo Wages Expense Wages Payable 480.00 31-Dec, Cash Accounts Receivable Bakery Sales 19,000.00 6,000.00 25,000.00 Total 55.098.85 55.098.85 date date date Business License exp date Cash 1-Oct 25,000.00 3-Oct 10,000.00 Notes Payable 10,000.00 3-Oct 10-Oct 375.00 Common Stock 25,000 5,000 1-Oct 13-Oct 7-Oct 10-Oct 30,000 3,000.00 375.00 250.00 200.00 300.00 1,200.00 11-Oct 13-Oct 14-Oct 31-Oct 31-Oct 10,000.00 120.00 5-Nov 8-Nov 3,800.00 75.00 10-Nov 18-Nov 1,000.00 Insurance expense 1,500.00 8,500.00 480.00 300.00 15-Nov 20-Nov 20-Nov 22-Nov 8-Nov 18-Nov 30-Nov Accounts Rec. 31-Oct 5,000.00 3,800.00 1,000.00 30-Nov 7,500.00 4,000.00 31-Dec 6,000.00 12,500.00 10,000.00 420.00 60.00 1-Dec 5-Dec 7-Dec 8-Dec 8-Dec 4,000.00 10-Dec 8800 75.00 5,000.00 1,500.00 18500 9700 13-Dec 15-Dec 15-Dec 68.00 456.00 20-Dec 122.00 20-Dec 24-Dec 153.00 30-Dec 31-Dec 151.25 19,000.00 85,521.00 34,084.25 51,436.75 Misc. expense 11-Oct 250.00 Baking equipment 13-Oct 5,000.00 Advertising expense 13-Oct 200.00 Baking supplies 1-Oct 8,500.00 15-Nov 5,000 11-Dec 7,000 Office supplies 14-Oct 300.00 22-Nov 300 Rent expense 7-Oct 1,500 15-Nov 1,500 15-Dec 1,500 20,500.00 600.00 4,500 Bakery Sales Prepaid rent 7-Oct 1,500 Prepaid insurance 31-Oct 1,200 15,000 20,000 25,000 60,000 31-Oct 30-Nov 31-Dec 1-Oct 31-Oct Salary and wages expense 31-Oct 120 15-Nov 480 30-Nov 420 15-Dec 456 31-Dec 480 Salaries and wages payable 120 31-Oct 5-Nov 120 480 15-Nov 20-Nov 480 15-Nov 420 30-Nov 30-Nov 5-Dec 420 Accounts payable 8,500.00 75.00 10-Nov 75 5,000.00 20-Nov 8,500 75.00 10-Dec 75 7,000.00 13-Dec 5,000 13,650 20,650 7,000 Telephone expense 30-Oct 75 30-Nov 75 1,956 456.00 15-Dec 11-Dec 20-Dec 456 480.00 31-Dec 1,476 1,956.00 480.00 150 Dividends 1-Dec 10,000 10,000 COGS 15-Dec 48.00 24-Dec 109.60 157.60 Merchandis 68.00 15-Dec 24-Dec 153.00 221.00 Merch. Inv. FIFO 7-Dec 60.00 48.00 15-Dec 20-Dec 122.00 109.60 24-Dec 30-Dec 151.25 333.25 175.65 157.60 FIFO Ending Inventory Purchases Purchases No. of No. of Items Unit Price Total Price Items 10 $ 6.00 $ 60.00 Sales No. of Unit Price Total Price Items 12/7: 10 boxes purchased at $6 Date Cr Unit Price Total Price 10 $ 6.00 $ 60.00 Dr 60.00 7-Dec Date 7-Dec Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 15-Dec 8 $ 6.00 $ 48.00 2 $ 6.00 $ 12.00 12/20: 20 boxes purchased at $6.10 12/30:25 boxes purchased at $6.05 Sales - selling price, $8.50 a box 12/15: 8 boxes 12/24: 18 boxes 20-Decl 20 $ 6.10 $ 122.00 68.00 2 $ 20 $ 22 6.00 $ 12.00 6.10 $ 122.00 $ 134.00 15-Dec Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 24-Dec 48.00 2 $ 6.00 $ 12.00 16 $ 6.10 $ 97.60 18 $ 109.60 4 $ 6.10 $ 24.40 15-Dec cost of Goods Sold (8 X $6) Merchandise Inventory Recorded the cost of goods sold 48.00 30-Dec 25 $ 6.05 $ 151.25 122.00 4 $ 6.10 $ 24.40 25 $ 6.05 $ 151.25 29 $ 175.65 20-Dec Merchandise Inventory (20 x $6.10 ) Cash 122.00 Net Inventor ly 55 $ 333.25 26 $ 157.60 29 $ 175.65 153.00 24-Dec Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 153.00 109.60 24-Dec Cost of Goods Sold (2 x $6)+(16 x $6.10) Merchandise Inventory Recorded the cost of goods sold 109.60 151.25 30-Dec Merchandise Inventory (25 x $6.05) Cash 151.25 A Company Adjusting Journal Entries 20XX Debit Credit 208.33 208.33 550.00 550.00 Date Accounts 31-Dec Depreciation Expense Accumulated Depreciation 31-Dec Office Supplies Expense Office Supplies 31-Dec Insurance Expense Prepaid Insurance 31-Dec Insurance Expense Interest Payable 31-Dec Baking Supplies Expense Baking Supplies 200.00 200.00 150.00 150.00 19,400.00 19,400.00 20,508.33 20,508.33 A Company Income Statement For Qtr. Ending 12/31/20XX Revenues Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold Gross Profit 60,000.00 221.00 60,221.00 157.60 60,063.40 19,400.00 4,500.00 150.00 200.00 Operating Expenses: Baking Supplies Expense Rent Expense Interest Expense Insurance Expense Depreciation Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense 208.33 250.00 550.00 375.00 200.00 1,956.00 150.00 Total Operating Expenses: 27,939.33 Net Income 32,124.07 A Company Statement of Stockholder's Equity For Qtr. Ending 12/31/20xx Common Stock Retained Earnings Total Beginning Balances, September 30 0 Issued Common Stock 30,000.00 30,000.00 Net Income 32,124.07 32,124.07 Dividends (10,000.00) (10,000.00) Ending Balances, December 31: 30,000.00 22,124.07 52,124.07 0 0 A Company Balance Sheet As of December 31, 20XX Assets Current Assets: Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Office Supplies Accounts Receivable Total Current Assets Liabilities and Owners' Equity Current Liabilities: Interest Payable Accounts Payable Wages Payable Total Current Liabilities 150.00 7,000.00 480.00 7,630.00 51,436.75 1,100.00 175.65 1,500.00 1,000.00 50.00 9,700.00 64,962.40 Long Term Liabilities: Notes Payable Total Long Term Liabilities: 10,000.00 10,000.00 Total Liabilities: 17,630.00 Shareholder's Equity: Common Stock Accounts Receivable 30,000.00 22124.07 Non-Current Assets: Baking Equipment Accumulated Depreciation Baking Equipment (Net) 5,000.00 (208.33) 4,791.67 Total Equity 52,124.07 Total Assets: 69,754.07 Total Liabilities & Equity 69,754.07 A Company Closing Entries Qtr ending 12/31/20xx Credit Date Accounts 31-Dec Bakery Sales Merchandise Sales Retained Earnings Debit 60,000.00 221.00 60,221.00 28,096.93 31-Dec Retained Earnings Baking Supplies Expense Rent Expense Wages Expense Office Supplies Expense Business License Expense Office Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense COGS 19,400.00 4,500.00 1,956.00 550.00 375.00 250.00 208.33 200.00 200.00 150.00 150.00 157.60 10,000.00 31-Dec Retained Earnings Dividends 10,000.00 A Company Post-Closing Trial Balance Qtr. Ending 12/31/20xx Account Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation Office Supplies Accounts Receivable Accounts Payable Wages Payable Interest Payable Notes Payable Common Stock Retained Earnings Unadjusted Trial Balance Debit Credit 51,436.75 1,100.00 175.65 1,500.00 1,000.00 5,000.00 208.00 50.00 9,700.00 10,000.00 150.00 7,000.00 480.00 30,000.00 22,124.00 Total 69,962.40 69,754.00
