H 2 Instructions: 3 You are the controller at Star Wars, Inc., a wholesale distributor of light sabers and other interstellar weaponry. The corporation 4 was founded in galaxy far, far away a long time ago. The company has 300,000 share of common stock authorized with a par value 5 of $20. Currently, 9,500 shares are issued and outstanding In your role as controller, you are responsible for the company's 6 accounting records, financial statement preparation, and ensuring that the company has adequate internal controls. You also 7 support management at Star Wars by providing required financial reports. You supervise a staff that takes care of the other 8 aspects of accounting, but ultimately you oversee all the functions of the accounting department. Star Wars, Inc. maintains a 9 calendar year-end (the books are closed on December 31 of each year). Adjusting entries are only prepared annually. 10 Therefore, when you prepare the adjusting entries, they will need to be for the entire year, not just for December. In order 11 to complete this practice set, you will need to record all regular transactions for the month of December, 2014 (all other regular 12 transactions have already been recorded for the year) and all of the year-end adjusting entries. You will journalize 13 all transactions and adjustments in the general journal, post them to the general ledger accounts, prepare an adjusted trial 14 balance, prepare the financial statements, prepare closing entries, and finally a post-closing trial balance for the year ended 15 December 31, 2014, 17 The following information pertains to the various accounting practices applicable to Star Wars, Inc 18 1. Star Wars, Inc. maintains inventory using the perpetual method. All inventory costs are tracked using 19 first in, first out (FIFO) cost flows. (See the cost of goods sold sheet for details regarding inventory) 20 2. Purchases of inventory are recorded at the net amount (discounts are recognized on the date of purchase, if applicable) 21 The purchase terms are different for each supplier. Forfeited discounts are recorded separately as cost of goods sold. 22 3. Sales on account are subject to terms 2/10,n/30 and are recorded at gross value 23 4. The company utilizes a general journal and general ledger, but also tracks detailed information on suppliers and customers 24 in accounts payable and accounts receivable subsidiary ledgers, respectively. You will need to maintain the subsidiary ledgers 25 5. Salaried employees are paid monthly at the end of the month on the last day of the month). Hourly employees are paid 26 every two weeks. Each two week pay period ends on the Friday of the second week 27 6. The Company's chart of accounts is listed on the right side of this spreadsheet. 28 7. The Company uses the Allowance Method of accounting for bad debt. The Company calculates bad debt expense at the end 29 of the fiscal year at 2% of net sales. Chart of Accounts: Name of Account Number of Accou Cash 101 Petty Cash 104 Accounts Receivable 111 Allowance for Doubtful Accounts 112 Notes Receivable 115 Interest Receivable 118 Inventory 120 Supplies 125 Prepaid Insurance 128 Prepaid Rent 130 Other Assets 131 Land 135 Buildings 140 Accumulated Depreciation - Buildings 141 Equipment Accumulated Depreciation - Equipment Space Ships 155 Accumulated Depreciation - Space Ships 156 Notes Payable Accounts Payable 201 Salaries and Wages Payable 210 FICA Taxes Payable Income Taxes Payable 212 Federal Withholding Taxes Payable State Withholding Taxes Payable 214 FUTA Taxes Payable SUTA Taxes Payable 216 Unearned Revenues 146 147 200 211 213 215 217 225 226 230 232 233 300 301 305 310 315 320 401 402 403 Unearned Revenues Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable Common Stock Additional Paid-in Capital, Common Retained Earnings Treasury Stock Dividends Income Summary Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Advertising Expense Bad Debt Expense Supplies Expense Repairs Expense Miscellaneous Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Fixed Assets Interest Expense 601 605 606 607 608 609 610 611 700 701 800 e at 11 20 2014 B 315 320 401 402 403 IN NOP Dividends Income Summary Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Advertising Expense Bad Debt Expense Supplies Expense Repairs Expense Miscellaneous Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Fixed Assets Interest Expense Loss on Disposal of Fixed Assets Income Tax Expense 500 601 602 603 604 605 606 607 608 609 610 611 700 701 800 801 900 2 m 10 00 Star Wars, Inc Trial Balance November 30, 2014 4 Accounts: Debit Credit Cash 249,930 Petty Cash 150 Accounts Receivable 317,420 Allowance for Doubtful Accounts 4,580 Notes Receivable (current) 45,000 Interest Receivable Inventory 500,000 12 Supplies 2,320 Prepaid Insurance 11,020 Prepaid Rent 25,410 Other Assets (current) 145,000 Land 43,000 Buildings 306,000 Accumulated Depreciation - Buildings 73,040 Equipment 32,800 Accumulated Depreciation - Equipment 13,200 Space Ships 174,000 Accumulated Depreciation - Space Ships 39,540 Instructions Trial Balance at 11.30 2014 | General Journal awn Gener 39,540 15,000 126,850 1,787 9,573 2,486 IABILITIE 400 2,600 Accumulated Depreciation - Space Ships Notes Payable (current) Accounts Payable Salaries & Wages Payable FICA Taxes Payable Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Payable FUTA Taxes Payable SUTA Taxes Payable Unearned Revenues Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable 6,400 Common Stock Additional Paid-in Capital, Common Retained Earnings Treasury Stock 42,610 . Sales Revenue calor Doturne . Allowance apon Instructions Trial Balance at 11 30 2014 113,000 275,000 190,000 255,400 426,388 V. EQUI 42 5,234,940 General ournal Sales Returns & Allowances Sales Discounts Cost of Goods Sold Advertising Expense 47 z Bad Debt Expense 9,380 73,044 3,648,722 6,578 1,540 17,732 933,122 e Supplies Expense Repairs Expense 50 O Miscellaneous Expense 51 Z Depreciation Expense Insurance Expense Salaries & Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Fixed Assets Interest Expense Loss on Disposal of Fixed Assets Income Tax Expense OPERA 82,916 16,270 3,150 Other Rev/Exp 24,570 72,000 Totals 6,786,9346 ,786,934 Trial Balance at 11 30 2014 General Journal Instructions 1 12 13 1457 Accounts Debit Credit 1 Dec REceived payment from Endor LTD. for their A/R balance (see A/R ledger for balance owed) Endor took advantage of the 2% discount for paying within the discount period. Round discount to the nearest dollar $1 1 Dec Sold 500 units to vader Enterprise on account for $380 each. 2 Dec Purchased 600 units from calrisian's components on account for $149 each terms net 145 2 Dec PAid off balance of$26,000 owed to Ewok Inc. The purchase took place in a previous month. See A/P ledger. No discount applies 3 Dec Received a notification that Bosk co. has declared bankruptcy and collection of the amounts Bosko co owes id unlikely. See A/R ledger for amount. The accounts receivable balance should be written off. The ledger. No discount applies 3 Dec Received a notification that Bosk co. has declared bankruptcy. and collection of the amounts Bosko co owes id unlikely. See A/R ledger for amount. The accounts receivable balance should be written off. The company uses the allowance method for accounting for bad debt. 3 Dec Sold 415 units to storm Troopers on account for $390 each 6 Dec Received a payment from C3PO co. in full payment of both A/R balance owed (see A/R ledger) The $50,300 invoice was paid within the discount period and was subject to a 2% 1 . 2 . 3 . Received a payment from C3PO co. in full payment of both A/R balance owed (see A/R ledger) The $50,300 invoice was paid within the discount period and was subject to a 2% discount. The other invoice of $22,000 was paid in full (no discount) 6 Dec Sold 490 units to wookie Inc on account for $ 390 each 6 Dec Received bill of $1,215 from star Destroyer Repair for fighter repair 12 213 7 Dec PAid Greedo Inc. $$9,900 in full payment of an A/P balance The purchase was made in a prior period. See the A/P ledger PAid $10,486 to wamp Rat, co. in full payment of the invoice from Nov. see A/P ledger. 7 Dec 7 Dec Received payment from Jabba's Huts, Inc. In full payment of an invoice dated Nov 30 for $74,350 (see A/R ledger) The payment qualified for a 2% discount 9 Dec Sold 112 units to Jango Fett Inc. On account for the amount of $395 each 10 Dec Received payment from wookie Inc. for the Dec. 6 sale, net of the discount 10 Dec Purchased 220 units from Land speeder Inc on accounts for $152 each, terms n/30 10 Dec Received a check in the amount of $30,000 from R2D2 computers in partial payment of 1. 12. 131415E1 10 Dec Received a check in the amount of $30,000 from R2D2 computers in partial payment of the balance they owe( no discount apply) from a Nov 15 sale o $95,900 11 Dec Paid bi-weekly wages via payroll checks Employee wages(gross) $3,550 FICA taxes withheld $272 FEderal Income taxes $800 A al - 11 - BIUA EL 15 E - SE 1 1 . 1 .2 . . .3 12 Dec Received a payment of $24,050 from Jango Fett Inc. in full payment for an invoice dated. from Nov 27th. No discount applies. See A/R ledger 12 Dec Sold 325 units to princess Lela co. for a total of $397 each on account 13 Dec Sold 211 units to R2D2 computers on credit for $397 each 13 Dec PAid for pizza party at corporate headquarters for $500. Use Misc 1 .2... 3 .4.. 5 1 . 7 expenses 14 Dec Cash sale for 375 units was $395 each 14 Dec Received payment from Jango Fett Inc. from the Dec 9th purchase. Fett Inc qualifies for the discount. Round discount to the nearest $1 15 Dec Sold 995 units to Vader Enterprise on Account for $398 17 Dec R2D2 computers is granted an allowance of $3,000 for defective units from Dec 13 sale Record the sale allowance. Don't forget to update the AIR ledger for the allowance. 17 Dec Purchased $600 of supplies for cash 18 Dec Paid Federal withholding taxes of $9,573 and FICA withholding of $1,787 to the US Treasury Department. These amounts were previously recorded as liabilities. The amounts were 123E4EE5- TESTI 7 ledger for the allowance. 17 Dec Purchased $600 of supplies for cash 18 Dec Paid Federal withholding taxes of $9,573 and FICA withholding of $1,787 to the US Treasury Department. These amounts were previously recorded as liabilities. The amounts were paid with one check Paid off Purchase from Dec 10 to land Speeder Inc. | 18 Dec 19 Dec Yoda Inc agrees to convert its overdue $20,000 A/R balance into a 12% note due in 9 months. Do not accrue interest yet. 19 Dec Purchased 310 units of product from Tattooine Ltd. For $154 each on credit, terms n/60 20 Dec Sold storm Troopers unlimited 575 units of products for $402 per unit on credit 20 Dec Purchased office supplies from NAboo Stationery co. for $1,750 on credit, term n/60. Treat the supplies as an asset 20 Dec Received payment from princesss Lela co. from the Dec 12 sale. Discount applies. Round to the nearest $1 21 Dec Purchased a new supercomputer from palpatine computing co. for $25,000. A down payment of $5,000 was paid immediately, the remainder is owed within 45 days (n/45). Use the Equipment account. 21 Dec Purchased 115 units from Tattoonie Inc. for $158 each on credit, term n/60 21 Dec Paid $2,600 for SUTA payable balance. Payment was sent to appropriate state agency. 24 Dec Paid bi weekly wages Employee wages(gross) $6,200 FICA taxes $474 1231 appropriate state agency Paid bi weekly wages Employee wages(gross) $6,200 FICA taxes $474 Federal Income taxes $1,233 State Income taxes $261 Net pay $4,232 Employers payroll taxes: FICA tax $474 (no FUTA or SUTA) 26 Dec Star wars Inc. repurchases 700 shares of its own stock from an investor for $42 per share. The repurchase is recorded as treasury stock at its repurchase cost. 26 Dec The Board of Directors of Star 26 Dec The Board of Directors of Star wars Inc. declares a $1.50 per share cash dividend to be paid in January of the next year. See Instructions for initial outstanding shares. Remember, in the previous transactions some shares were purchased (and are no longer outstanding). Dividends are only paid on outstanding shares. Take the amount directly out of retained earnings = = = = 26 Dec R2D2 computers agrees to convert a $65,900 overdue AIR balance into a 13% note due in 6 months. The original sale was fro a Nov 15 sale. Previously R2D2 paid $30,000 on balance off. 27 Dec An uninhabited moon orbiting the planet of star wars Inc's headquarters is acquired by using 20,000 shares of unissued common stack. The moon has a fair value of $1,000,000. The moon is immediately used for operations. Moons are considered a land asset. See instructions for stock par value. 27 Dec A bill from Han Solo, Esquire is received for legal services performed related to the acquisition of the moon. The total of the bill is $3,000 and is paid immediately 27 Dec Sold 255 units of product to Janggo Fett Inc for $403 each on credit. 1 .. . .2 28 Dec Paid bill for advertisement run on Dec 15th. The bill was for $1,850 28 Dec Paid $1,500 for repairs on star ships 28 Dec Purchased 205 units of product from hyperspace unlimited for $157 per unit on credit, terms n/30. 28 Dec Sold a piece of land owned by star wars co. for $35,000 cash. The land had an original cost of $15,000. ID 1 y - = = = = = 29 Dec Sold 700 to Vader Enterprise for $405 each on credit 31 Dec REceived payment from Vader Enterprise from Dec 15 sale. No discount applies. 31 Dec Paid the A/P balance to Tattooine Inc from the 12/19 purchase. No discount applies. 31 Dec Paid $500 bill for various repairs. 31 Dec Star wars Inc.sold a used star destroyer to chewbacca and sons co. for $5,100 cash. The original cost of the star destroyer was $30,000 with a salvage value of $3,000, a useful life of 10 years and accumulated depreciation of $20,000 through the end of last fiscal year. Note: you will need to record 12's year depreciation for this years before recording the sale. (the company policy is to depreciate assets for 12 year in the year of acquisition and disposal). Use the straight line method 31 Dec Star wars Inc. sold a used star destroyer to chewbacca and sons co for $5,100 cash. The. original cost of the star destroyer was $30,000 with a salvage value of $3,000, a useful life of 10 years and accumulated depreciation of $20,000 through the end of last fiscal year. Note: you will need to record 72 's year depreciation for this years before recording the sale. (the company policy is to depreciate assets for 12 year in the year of acquisition and disposal). Use the straight-line method 31 Dec Prepaid rent on a new facility for the next fiscal year. Payment was for $19,000. 31 Dec Paid monthly salaries via payroll was vor $19,000 Paid monthly salaries via payroll 31 Dec checks Employee salaries gross$40,900 FICA taxes $2,120 Federal income taxes $7,696 State income taxes $1,517 Net pay $29,567 Employer's payroll taxes FICA tax $2,120 (NO FUTA or SUTA) ADJUSTING ENTRIES The Annual provision for bad debt is recovered as 1% of net sales. Round to the nearest $1 B Office supplies on hand at the end of the year totaled $677 The insurance premium outstanding at the beginning of the year ($5,020) covers the period of Jan. 1 to august 31 of this year (for $6,000) runs from September of this year to August of next year. Record the expired insurance Payroll summary for wages earned from Dec 24 to Dec 31 is detailed below. These amounts will be paid next year $5,600 Gross wages FICA Taxes payable $390 Federal withholdings $1036 State Withholding $218 Net pay $3,956 Employers share of FICA $390 (NO FUTA or SUTA) Interest has accrued at 7% on the long-term note payable since March 1 of this year. Round to the nearest $1 The six month interest payment on the bonds payable is due Jan 3 of next year for the six month period ended on dec 31 of this year. The cash payment amount is for $2,000, the interest expense is for $2111 and discount amortization is $111. The interest revenue accrued to Dec 31 of this year on notes receivable is composed of the following Ben Kenobi Inc $1,125 Yoda Ing 85 $111. H The interest revenue accrued to Dec 31 of this year on notes receivable is composed of the following: Ben Kenobi Inc $1,125 Yoda Inc $85 R2D2 computers $30 The interest accrued at 12/31 of this year on the note payable (current) of $15,000 at 11% is one whole year of expense. The interest and principal are due Jan 2 of next year. A warehouse lease payment of $25,410 was made on Oct 1 of this year for monthly rental through the end of March of the next year. The amount was booked to prepaid rent on Oct 1 Adjust for the used portion of prepaid rent at Dec 31 of this year. K $1,220 is owed for utilities used through the end of this year. The A/P balance goes to Naboo utilities Co. Additional income tax expense of $38,000 needs to be corrected at year end Vithauer: Deprecation must be recorded for the year given the following information: Assets Acouston Date Cost Estmated Le Savage Deprecaton Method Buiding 7/1/08 $306,000 25 years $15,000 straight-ire Starship # 1 4 /1/09 $28,000 60,000 parsecs $3,100 unts of production (parsecs) (4,000 parsecs this yr.) Starship #2 9/1/11 $33.000 60,000 parsecs $4,200 units of producten (parsecs) (8,000 parsecs this yr.) Star Destroyer #2 3/29/09 $40,000 10 years $2,000 straght-ne Star Destroyer #3 9/16/10 $43,000 10 years $3,000 strahtine Office Equpment 11/15/09 $32,800 7 years $0 straight-ine Supercomputer 12/21/14 $25,000 years $3,000 Double Deching Balance (note: the company takes 1/2 year's deprecation in the year of acquisition) Round to the nearest dollar for total depredation. Home Help Share pe Brmulas Data Get Add-ins My Add-ins Review View Th? Recommended Charts Developer B Search t Line 1 3D Tours Maps PivotChart I V Column Wind Sparklines E Slicer Timeline Link Comment et Tert Symb Loss Add-ins 5 | EF IK Closing Entries: Close Revenues, Contra-Revenues, and Gains here. 08 the 09 e end 210 Use Income Summary as credit amount. 211 212 Close Expenses and Losses here. Use Income Summary for debited amount 213 214 215 216 217 218 219 220 instruction Tra n e 30 2014 General Journal General Ledger Accounts Receivable GENERAL LEDGER Note: All amounts in this reginning balances 12/1/2014 Add-ins - Recommended Charts Maps PivotChart - Line Column Wind Loss Slicer Timeline Link 3D Map Tours Comment Add-ins Charts Sparklines Filters Links | Comments I Beco E F G H K L M N am. Depr. -Equipment 13.200 Accounts pel Accum. Depr. - Space Ships 39.540 Notes Payable (current) 15,000 174,000 125.850 13, 200 174,000 ries & Wapes Payable FICA Taxes Payable Federal Withholding Taxes Payable 9,573 Instructions T ral Balance at 11 30 2014 General Journal General Ledger Accounts Receivable lec ... Dete D C FUTA Taxes Payable 400 Interest Payable SUTA Taxes Payable 2,600 400 2,600 Bonds Payable 275,000 Discount on Bonds Payable 6,400 Common Stock 190,000 275,000 6,400 190,000 Treasury Stock 42,610 Sales Revenue 5,234, 940 Sales Returns & Allowances 9,3801 Instructions Trial Balance at 11 30 2014 General Jouman General Ledge Dividends Payable Notes Payable (long-term) 113,000 113,000 Additional Paiden Capital, Common 255,400 Retained Earnings 426,388 255,400 426,388 Closing 426,388 Sales Discounts 73,044 Cost of Goods Sold 3,648,722 o Save Insert Draw Page Layout Formulas Data Review View Developer Get Add-ins Table Illustrations My Add-ins - Table Recommended Pivot Tables Tables XX albit Recommended Charts Add-ins Charts XV fx D Treasury Stock 42,610 Sales Revenue 5,234,940 Sales Returns & Allowances 9,380 42,610 5,234,940 9.380 Closing 5,234,940 9,380 Advertising Expense Bad Debt Expense 5.578 Supplies Expense 1.540 540 Closing Instructions Trial Balance at 11:30 2014 General Journal general Ledger AS O Type here to search El Tours Sparklines Filters M P L Sales Discounts 73,044 N O Cost of Goods Sold 3,648,722 73,044 3,648,722 73,044 3,648,722 | Repairs Expense 17,732 Miscellaneous Expense er Accounts Receivable ledger Accounts Payable ledger Bad Debt Expense Advertising Expense 6,578 6,578 Closing 6,578 Depreciation Expense Insurance Expense Closing Utilities Expense 16,270 Interest Revenue 3,150 oin to c 16,270 Trial Balance at 3,150 30 2014 Gene SPROKIES Filters LIMNO Repairs Expens * 17,732 Miscellaneous Expense 17,732 17,732 Rent Expense Payroll Tax Expense 82,916 82,916 82,916 Loss on Disposal of Assets Interest Expense 24570 24,570 Accounts Receivable ledger dger Accounts Payable ledger . 3,150 24.570 16,270 3,150 24,570 losing 16,270 3,150 24,570 Income Tax Expense 72.000 T-Accounts Balance? If zero, then T-Accounts Balance Post closing T-Accounts balance? If zero, then T-Accounts Balance 72,000 Closing 72.000 A B C D E F ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER G H Note: All amounts in italics are beginning Bosk Co. 3,700 C3PO Co. 22,000 50,300 Endor Ltd. 27,120 3,700 72,300 27,120 Princess Leia Co. Storm Troopers Unlimited R2D2 Computers 95,900 95,900 M IN ning balances at 12/1/2014 Jabba's Huts, Inc. 74,350 Jango Fett, Inc. 24,050 74,350 24,050 Vader Enterprises Yoda, Inc. 20,000 20,000 A B C D E F G H 95,900 Wookie, Inc Total ending balance at 12/31/14 317,420 29 Instructions Trial Balance at 130 Gene Talou g eneral Ledge Accounts RACON Xx A B C D E F G H I K ACCOUNTS PAYABLE SUBSIDIARY LEDGER Note: All amounts in italics are beginning balances at 12/1/2014 L M N O P Calrisian's Components Count Dooku Consulting 7,200 Greedo Inc. Hyperspace Unlimited 9,900 26,000 37,719 7,200 HH 63,719 9,900 Land Speeder, Inc. Naboo Utilities Co. Palpatine Computing Co. Star Destroyer Repairs Tattooine Ltd. 35,545 - 35,545 CDEFGHET Land Speeder, Inc. Naboo Utilities Co. Palpatine Computing Co. Naboo Stationery Co. Wamp Rat, Co. 10,486 Total ending balance at 12/31/14 126,850 10,486 Beginning balances as of 12/1/14 115 #of Units Cost per Unit Total Cost 2,000 I $ 230,000 120 $ 84,000 1,000 $ 130,000 400 140 $ 56,000 700 Purchase Date 4/17 Beginning Inventory 6/1 Beginning Inventory 8/22 Beginning Inventory 10/1 Beginning Inventory 12/2 Purchase 12/10 Purchase 12/19 Purchase 12/21 Purchase 12/28 Purchase Totals 4,100 $ 500,000 Wof Units 12/1 Sale 12/3 Sale 12/6 Sale 12/9 Sale 12/12 Sale 12/13 Sale ... Accounts Payable ledger Inventory COGS calculations Cost of Goods Sold (Perpetual FIFO) Date of Sale Units Sold: Cost per Uni Total Cost COGS from 1/1 to 11/30 $3,648,722 12/1 12/3 12/6 12/9 12/12 . Trial Balance at 12 31 2014 Financial Statements Post Closing Trial B G H I J Cost of Goods Sold (Perpetual FIFO) of Units Date of Sale Junits Sold: Cost per UnifTotal Cost 12/1 Sale COGS from 1/1 to 11/30 $3,648,722 12/3 Sale 12/1 12/6 Sale 12/3 12/9 Sale 12/6 12/12 Sale 12/9 12/13 Sale 12/12 12/14 Sale 12/13 12/15 Sale 12/13 12/20 Sale 12/14 12/27 Sale 12/15 12/29 Sale 12/15 Total units sold 12/20 12/20 12/27 12/27 Updated Inventory Totals (after sales) 12/29 Purchase Date of Units Cost per un Total Cost 12/29 4/17 Beginning Inventor 2,000 $ 115 230,000 12/29 6/1 Beginning inventory 700 $ 120 $ 34,000 8/22 Beginning inventory Total COGS$ 3,648,722 1,000S 1 30 S 130,000 Accounts Payable ledger Inventory COGS calculations Trial Balance at 12 31 2014 12/27 12/29 12/29 12/29 USU Total COGS S 3,648,722 Updated Inventory Totals (after sales) 33 Purchase Date # of Units Cost per Unik Total Cost 4/17 Beginning Inventory 2,000 $ 115 $ 230,000 6/1 Beginning Inventory 700 $ 120 $ 84,000 8/22 Beginning Inventory 1,000 130 $ 130,000 10/1 Beginning Inventory 140 $ 56,000 12/2 Purchase 12/10 Purchase 12/19 Purchase 12/21 Purchase 12/28 Purchase Totals $ 500,000 ses sin is in Balanced? (if Oor-) Get Add-ins Table Illustrations wotTable Recommended Pivot Tables My Add-ins - 0 Recommended Charts Tables Add-ins 580 13 C D Star Wars, Inc Trial Balance December 31, 2014 4 Accounts: Debit Credit Cash 249,930 Petty Cash 150 Accounts Receivable 317,420 Allowance for Doubtful Accounts Notes Receivable (current) 45,000 Interest Receivable Inventory 500,000 Supplies 2,320 Prepaid Insurance 11,020 Prepaid Rent 25,410 Other Assets (current) 145,000 Land 43,000 Buildings 306,000 Accumulated Depreciation - Buildings 73,040 Equipment 32,800 Accumulated Depreciation - Equipment 13,200 Space Ships 174,000 Accumulated Depreciation - Space Ships 39.540 Accounts Payable ledger Inventory COGS calculations ASSETS BE 73,044 3,648,722 6,578 1,540 17,732 BE 4 Sales Discounts 5 w Cost of Goods Sold -6 y Advertising Expense 17 Bad Debt Expense 18 Supplies Expense 49 m Repairs Expense 50 ( Miscellaneous Expense z Depreciation Expense Insurance Expense Salaries & Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Fixed Assets de Interest Expense Loss on Disposal of Fixed Assets Income Tax Expense 933,122 Rev/Exp OPERATING 82,916 16,270 3,150 24,570 72,000 Totals 6,786,934 6,786,934 Accounts Payable ledger Inventory COGS calculations Trial Balance Oo oo Star Wars, Inc. Income Statement For the Year Ended December 31, 2014 St 11 Sales Revenue 12 Less: Sales Discounts 13 Sales Returns & Allowances 14 Net Sales Revenue Div 15 Sto 16 Cost of Goods Sold Net 18 Gross Margin 19 Bala 20 Operating Expenses: 21 Salaries & Wages Expense 22 Utilities Expense 23 Advertising Expense 24 Supplies Expense 25 Insurance Expense 26 Repairs Expense 27 Payroll Tax Expense 28 Rent Expense Assets Curr ca Add-ins 172 : x fic D TE A B C 5 Insurance Expense 26 Repairs Expense 27 Payroll Tax Expense 28 Rent Expense 29 Bad Debt Expense 30 Depreciation Expense 31 Miscellaneous Expense 32 Total Operating Expenses 33 34 Operating Margin 35 36 Other Income and (Expenses): 37 Interest Revenue 38 Gain on Disposal 39 Loss on Disposal 40 Interest Expense 41 42 Income Before Taxes 43 44 Income Tax Expense 72,000 45 46 Net Income $ (72,000) Star Wars, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 2014 Balance, 1/1/2014 Common Stock $ 190,000 $ APIC 255,400 $ Retained Earnings Treasury Stock 426,388 $ (42,610) $ Total 829,178 Stock Issuance Dividends Declared Stock Repurchase Net Income Balance, 12/31/2014 $ 190,000 $ 255,400 $ 426,388 $ (42,610) $ 829,178 Remember to net the AIR account and the Allowance Account! Star Wars, Inc. Balance Sheet December 31, 2014 Assets: Current Assets Cash (including petty cash) Accounts Receivable (Net of Allowance) Notes Receivable (current) Interest Receivable Inventory Supplies Prepaid Insurance Prepaid Rent Other Assets (current) Total Current Assets Property, Plant, and Equipment Land Space Ships Less: Accum. Depr. - Space Ships Equipment Less: Accum. Depr. - Equipment Buildings Enter Accumulated Depreciation as a Negative Enter Accumulated Depreciation as a Negative J OP Buildings Less: Accum. Depr. - Buildings Property, Plant, and Equipment, net Enter Accumulated Depreciation as a Negative Total Assets Liabilities: Current Liabilities Notes Payable (current) Accounts Payable Salaries & Wages Payable FICA Taxes Payable Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Payable Unearned Revenues FUTA Taxes Payable SUTA Taxes Payable Interest Payable Dividends Payable Total Current Liabilities Long-term Liabilities antnu CGS palculatin GH Dividends Payable Total Current Liabilities Long-term Liabilities Notes Payable (long-term) Bonds Payable Less: Discount on Bonds Payable Total Liabilities Equity: Contributed Capital Common Stock Additional Paid-in Capital Retained Earnings Retained Earnings Less: Treasury Stock Treasury Stock Total Equity Total Liabilities and Equity Balance? (O=yes) Credit 4,580 o Star Wars, Inc Post Closing Trial Balance December 31, 2014 Accounts: Debit Cash 249,930 Petty Cash 150 Accounts Receivable 317,420 Allowance for Doubtful Accounts Notes Receivable (current) 45,000 Interest Receivable Inventory 500,000 2 Supplies 2,320 3 m Prepaid Insurance 11,020 Prepaid Rent 25,410 Other Assets (current) 145,000 Land 43,000 Buildings 306,000 Accumulated Depreciation - Buildings Equipment 32,800 Accumulated Depreciation - Equipment Space Ships 174,000 22 Accumulated Depreciation - Space Ships ASSE PN8Bouw- 73,040 13,200 39.540 15,000 126,850 5 OY 1,787 9,573 2,486 400 2,600 wo 0 NOUAWNO Notes Payable (current) Accounts Payable Salaries & Wages Payable FICA Taxes Payable i Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Payable FUTA Taxes Payable SUTA Taxes Payable 2 Unearned Revenues Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable Common Stock 9 Additional Paid-in Capital, Common 0 Retained Earnings 11 Treasury Stock 1. Sales Revenue Sales Returns & Allowances CC Sales Discounts Coct of Good cold 113,000 275,000 6,400 190,000 255,400 426,388 42,610 5,234,940 9,380 73,044 619 729 73,044 3,648,722 6,578 1,540 17,732 14 Y Sales Discounts 75 cost of Goods Sold 46 y Advertising Expense 47 Bad Debt Expense 48 - Supplies Expense 49 Repairs Expense 50 ( Miscellaneous Expense Z Depreciation Expense Insurance Expense Salaries & Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Fixed Assets Interest Expense Loss on Disposal of Fixed Assets Income Tax Expense 933,122 her Rev/Exp OPERATING 82,916 16,270 3,150 24,570 72,000 Totals 6,786,934 6,786,934 H 2 Instructions: 3 You are the controller at Star Wars, Inc., a wholesale distributor of light sabers and other interstellar weaponry. The corporation 4 was founded in galaxy far, far away a long time ago. The company has 300,000 share of common stock authorized with a par value 5 of $20. Currently, 9,500 shares are issued and outstanding In your role as controller, you are responsible for the company's 6 accounting records, financial statement preparation, and ensuring that the company has adequate internal controls. You also 7 support management at Star Wars by providing required financial reports. You supervise a staff that takes care of the other 8 aspects of accounting, but ultimately you oversee all the functions of the accounting department. Star Wars, Inc. maintains a 9 calendar year-end (the books are closed on December 31 of each year). Adjusting entries are only prepared annually. 10 Therefore, when you prepare the adjusting entries, they will need to be for the entire year, not just for December. In order 11 to complete this practice set, you will need to record all regular transactions for the month of December, 2014 (all other regular 12 transactions have already been recorded for the year) and all of the year-end adjusting entries. You will journalize 13 all transactions and adjustments in the general journal, post them to the general ledger accounts, prepare an adjusted trial 14 balance, prepare the financial statements, prepare closing entries, and finally a post-closing trial balance for the year ended 15 December 31, 2014, 17 The following information pertains to the various accounting practices applicable to Star Wars, Inc 18 1. Star Wars, Inc. maintains inventory using the perpetual method. All inventory costs are tracked using 19 first in, first out (FIFO) cost flows. (See the cost of goods sold sheet for details regarding inventory) 20 2. Purchases of inventory are recorded at the net amount (discounts are recognized on the date of purchase, if applicable) 21 The purchase terms are different for each supplier. Forfeited discounts are recorded separately as cost of goods sold. 22 3. Sales on account are subject to terms 2/10,n/30 and are recorded at gross value 23 4. The company utilizes a general journal and general ledger, but also tracks detailed information on suppliers and customers 24 in accounts payable and accounts receivable subsidiary ledgers, respectively. You will need to maintain the subsidiary ledgers 25 5. Salaried employees are paid monthly at the end of the month on the last day of the month). Hourly employees are paid 26 every two weeks. Each two week pay period ends on the Friday of the second week 27 6. The Company's chart of accounts is listed on the right side of this spreadsheet. 28 7. The Company uses the Allowance Method of accounting for bad debt. The Company calculates bad debt expense at the end 29 of the fiscal year at 2% of net sales. Chart of Accounts: Name of Account Number of Accou Cash 101 Petty Cash 104 Accounts Receivable 111 Allowance for Doubtful Accounts 112 Notes Receivable 115 Interest Receivable 118 Inventory 120 Supplies 125 Prepaid Insurance 128 Prepaid Rent 130 Other Assets 131 Land 135 Buildings 140 Accumulated Depreciation - Buildings 141 Equipment Accumulated Depreciation - Equipment Space Ships 155 Accumulated Depreciation - Space Ships 156 Notes Payable Accounts Payable 201 Salaries and Wages Payable 210 FICA Taxes Payable Income Taxes Payable 212 Federal Withholding Taxes Payable State Withholding Taxes Payable 214 FUTA Taxes Payable SUTA Taxes Payable 216 Unearned Revenues 146 147 200 211 213 215 217 225 226 230 232 233 300 301 305 310 315 320 401 402 403 Unearned Revenues Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable Common Stock Additional Paid-in Capital, Common Retained Earnings Treasury Stock Dividends Income Summary Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Advertising Expense Bad Debt Expense Supplies Expense Repairs Expense Miscellaneous Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Fixed Assets Interest Expense 601 605 606 607 608 609 610 611 700 701 800 e at 11 20 2014 B 315 320 401 402 403 IN NOP Dividends Income Summary Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Advertising Expense Bad Debt Expense Supplies Expense Repairs Expense Miscellaneous Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Fixed Assets Interest Expense Loss on Disposal of Fixed Assets Income Tax Expense 500 601 602 603 604 605 606 607 608 609 610 611 700 701 800 801 900 2 m 10 00 Star Wars, Inc Trial Balance November 30, 2014 4 Accounts: Debit Credit Cash 249,930 Petty Cash 150 Accounts Receivable 317,420 Allowance for Doubtful Accounts 4,580 Notes Receivable (current) 45,000 Interest Receivable Inventory 500,000 12 Supplies 2,320 Prepaid Insurance 11,020 Prepaid Rent 25,410 Other Assets (current) 145,000 Land 43,000 Buildings 306,000 Accumulated Depreciation - Buildings 73,040 Equipment 32,800 Accumulated Depreciation - Equipment 13,200 Space Ships 174,000 Accumulated Depreciation - Space Ships 39,540 Instructions Trial Balance at 11.30 2014 | General Journal awn Gener 39,540 15,000 126,850 1,787 9,573 2,486 IABILITIE 400 2,600 Accumulated Depreciation - Space Ships Notes Payable (current) Accounts Payable Salaries & Wages Payable FICA Taxes Payable Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Payable FUTA Taxes Payable SUTA Taxes Payable Unearned Revenues Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable 6,400 Common Stock Additional Paid-in Capital, Common Retained Earnings Treasury Stock 42,610 . Sales Revenue calor Doturne . Allowance apon Instructions Trial Balance at 11 30 2014 113,000 275,000 190,000 255,400 426,388 V. EQUI 42 5,234,940 General ournal Sales Returns & Allowances Sales Discounts Cost of Goods Sold Advertising Expense 47 z Bad Debt Expense 9,380 73,044 3,648,722 6,578 1,540 17,732 933,122 e Supplies Expense Repairs Expense 50 O Miscellaneous Expense 51 Z Depreciation Expense Insurance Expense Salaries & Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Fixed Assets Interest Expense Loss on Disposal of Fixed Assets Income Tax Expense OPERA 82,916 16,270 3,150 Other Rev/Exp 24,570 72,000 Totals 6,786,9346 ,786,934 Trial Balance at 11 30 2014 General Journal Instructions 1 12 13 1457 Accounts Debit Credit 1 Dec REceived payment from Endor LTD. for their A/R balance (see A/R ledger for balance owed) Endor took advantage of the 2% discount for paying within the discount period. Round discount to the nearest dollar $1 1 Dec Sold 500 units to vader Enterprise on account for $380 each. 2 Dec Purchased 600 units from calrisian's components on account for $149 each terms net 145 2 Dec PAid off balance of$26,000 owed to Ewok Inc. The purchase took place in a previous month. See A/P ledger. No discount applies 3 Dec Received a notification that Bosk co. has declared bankruptcy and collection of the amounts Bosko co owes id unlikely. See A/R ledger for amount. The accounts receivable balance should be written off. The ledger. No discount applies 3 Dec Received a notification that Bosk co. has declared bankruptcy. and collection of the amounts Bosko co owes id unlikely. See A/R ledger for amount. The accounts receivable balance should be written off. The company uses the allowance method for accounting for bad debt. 3 Dec Sold 415 units to storm Troopers on account for $390 each 6 Dec Received a payment from C3PO co. in full payment of both A/R balance owed (see A/R ledger) The $50,300 invoice was paid within the discount period and was subject to a 2% 1 . 2 . 3 . Received a payment from C3PO co. in full payment of both A/R balance owed (see A/R ledger) The $50,300 invoice was paid within the discount period and was subject to a 2% discount. The other invoice of $22,000 was paid in full (no discount) 6 Dec Sold 490 units to wookie Inc on account for $ 390 each 6 Dec Received bill of $1,215 from star Destroyer Repair for fighter repair 12 213 7 Dec PAid Greedo Inc. $$9,900 in full payment of an A/P balance The purchase was made in a prior period. See the A/P ledger PAid $10,486 to wamp Rat, co. in full payment of the invoice from Nov. see A/P ledger. 7 Dec 7 Dec Received payment from Jabba's Huts, Inc. In full payment of an invoice dated Nov 30 for $74,350 (see A/R ledger) The payment qualified for a 2% discount 9 Dec Sold 112 units to Jango Fett Inc. On account for the amount of $395 each 10 Dec Received payment from wookie Inc. for the Dec. 6 sale, net of the discount 10 Dec Purchased 220 units from Land speeder Inc on accounts for $152 each, terms n/30 10 Dec Received a check in the amount of $30,000 from R2D2 computers in partial payment of 1. 12. 131415E1 10 Dec Received a check in the amount of $30,000 from R2D2 computers in partial payment of the balance they owe( no discount apply) from a Nov 15 sale o $95,900 11 Dec Paid bi-weekly wages via payroll checks Employee wages(gross) $3,550 FICA taxes withheld $272 FEderal Income taxes $800 A al - 11 - BIUA EL 15 E - SE 1 1 . 1 .2 . . .3 12 Dec Received a payment of $24,050 from Jango Fett Inc. in full payment for an invoice dated. from Nov 27th. No discount applies. See A/R ledger 12 Dec Sold 325 units to princess Lela co. for a total of $397 each on account 13 Dec Sold 211 units to R2D2 computers on credit for $397 each 13 Dec PAid for pizza party at corporate headquarters for $500. Use Misc 1 .2... 3 .4.. 5 1 . 7 expenses 14 Dec Cash sale for 375 units was $395 each 14 Dec Received payment from Jango Fett Inc. from the Dec 9th purchase. Fett Inc qualifies for the discount. Round discount to the nearest $1 15 Dec Sold 995 units to Vader Enterprise on Account for $398 17 Dec R2D2 computers is granted an allowance of $3,000 for defective units from Dec 13 sale Record the sale allowance. Don't forget to update the AIR ledger for the allowance. 17 Dec Purchased $600 of supplies for cash 18 Dec Paid Federal withholding taxes of $9,573 and FICA withholding of $1,787 to the US Treasury Department. These amounts were previously recorded as liabilities. The amounts were 123E4EE5- TESTI 7 ledger for the allowance. 17 Dec Purchased $600 of supplies for cash 18 Dec Paid Federal withholding taxes of $9,573 and FICA withholding of $1,787 to the US Treasury Department. These amounts were previously recorded as liabilities. The amounts were paid with one check Paid off Purchase from Dec 10 to land Speeder Inc. | 18 Dec 19 Dec Yoda Inc agrees to convert its overdue $20,000 A/R balance into a 12% note due in 9 months. Do not accrue interest yet. 19 Dec Purchased 310 units of product from Tattooine Ltd. For $154 each on credit, terms n/60 20 Dec Sold storm Troopers unlimited 575 units of products for $402 per unit on credit 20 Dec Purchased office supplies from NAboo Stationery co. for $1,750 on credit, term n/60. Treat the supplies as an asset 20 Dec Received payment from princesss Lela co. from the Dec 12 sale. Discount applies. Round to the nearest $1 21 Dec Purchased a new supercomputer from palpatine computing co. for $25,000. A down payment of $5,000 was paid immediately, the remainder is owed within 45 days (n/45). Use the Equipment account. 21 Dec Purchased 115 units from Tattoonie Inc. for $158 each on credit, term n/60 21 Dec Paid $2,600 for SUTA payable balance. Payment was sent to appropriate state agency. 24 Dec Paid bi weekly wages Employee wages(gross) $6,200 FICA taxes $474 1231 appropriate state agency Paid bi weekly wages Employee wages(gross) $6,200 FICA taxes $474 Federal Income taxes $1,233 State Income taxes $261 Net pay $4,232 Employers payroll taxes: FICA tax $474 (no FUTA or SUTA) 26 Dec Star wars Inc. repurchases 700 shares of its own stock from an investor for $42 per share. The repurchase is recorded as treasury stock at its repurchase cost. 26 Dec The Board of Directors of Star 26 Dec The Board of Directors of Star wars Inc. declares a $1.50 per share cash dividend to be paid in January of the next year. See Instructions for initial outstanding shares. Remember, in the previous transactions some shares were purchased (and are no longer outstanding). Dividends are only paid on outstanding shares. Take the amount directly out of retained earnings = = = = 26 Dec R2D2 computers agrees to convert a $65,900 overdue AIR balance into a 13% note due in 6 months. The original sale was fro a Nov 15 sale. Previously R2D2 paid $30,000 on balance off. 27 Dec An uninhabited moon orbiting the planet of star wars Inc's headquarters is acquired by using 20,000 shares of unissued common stack. The moon has a fair value of $1,000,000. The moon is immediately used for operations. Moons are considered a land asset. See instructions for stock par value. 27 Dec A bill from Han Solo, Esquire is received for legal services performed related to the acquisition of the moon. The total of the bill is $3,000 and is paid immediately 27 Dec Sold 255 units of product to Janggo Fett Inc for $403 each on credit. 1 .. . .2 28 Dec Paid bill for advertisement run on Dec 15th. The bill was for $1,850 28 Dec Paid $1,500 for repairs on star ships 28 Dec Purchased 205 units of product from hyperspace unlimited for $157 per unit on credit, terms n/30. 28 Dec Sold a piece of land owned by star wars co. for $35,000 cash. The land had an original cost of $15,000. ID 1 y - = = = = = 29 Dec Sold 700 to Vader Enterprise for $405 each on credit 31 Dec REceived payment from Vader Enterprise from Dec 15 sale. No discount applies. 31 Dec Paid the A/P balance to Tattooine Inc from the 12/19 purchase. No discount applies. 31 Dec Paid $500 bill for various repairs. 31 Dec Star wars Inc.sold a used star destroyer to chewbacca and sons co. for $5,100 cash. The original cost of the star destroyer was $30,000 with a salvage value of $3,000, a useful life of 10 years and accumulated depreciation of $20,000 through the end of last fiscal year. Note: you will need to record 12's year depreciation for this years before recording the sale. (the company policy is to depreciate assets for 12 year in the year of acquisition and disposal). Use the straight line method 31 Dec Star wars Inc. sold a used star destroyer to chewbacca and sons co for $5,100 cash. The. original cost of the star destroyer was $30,000 with a salvage value of $3,000, a useful life of 10 years and accumulated depreciation of $20,000 through the end of last fiscal year. Note: you will need to record 72 's year depreciation for this years before recording the sale. (the company policy is to depreciate assets for 12 year in the year of acquisition and disposal). Use the straight-line method 31 Dec Prepaid rent on a new facility for the next fiscal year. Payment was for $19,000. 31 Dec Paid monthly salaries via payroll was vor $19,000 Paid monthly salaries via payroll 31 Dec checks Employee salaries gross$40,900 FICA taxes $2,120 Federal income taxes $7,696 State income taxes $1,517 Net pay $29,567 Employer's payroll taxes FICA tax $2,120 (NO FUTA or SUTA) ADJUSTING ENTRIES The Annual provision for bad debt is recovered as 1% of net sales. Round to the nearest $1 B Office supplies on hand at the end of the year totaled $677 The insurance premium outstanding at the beginning of the year ($5,020) covers the period of Jan. 1 to august 31 of this year (for $6,000) runs from September of this year to August of next year. Record the expired insurance Payroll summary for wages earned from Dec 24 to Dec 31 is detailed below. These amounts will be paid next year $5,600 Gross wages FICA Taxes payable $390 Federal withholdings $1036 State Withholding $218 Net pay $3,956 Employers share of FICA $390 (NO FUTA or SUTA) Interest has accrued at 7% on the long-term note payable since March 1 of this year. Round to the nearest $1 The six month interest payment on the bonds payable is due Jan 3 of next year for the six month period ended on dec 31 of this year. The cash payment amount is for $2,000, the interest expense is for $2111 and discount amortization is $111. The interest revenue accrued to Dec 31 of this year on notes receivable is composed of the following Ben Kenobi Inc $1,125 Yoda Ing 85 $111. H The interest revenue accrued to Dec 31 of this year on notes receivable is composed of the following: Ben Kenobi Inc $1,125 Yoda Inc $85 R2D2 computers $30 The interest accrued at 12/31 of this year on the note payable (current) of $15,000 at 11% is one whole year of expense. The interest and principal are due Jan 2 of next year. A warehouse lease payment of $25,410 was made on Oct 1 of this year for monthly rental through the end of March of the next year. The amount was booked to prepaid rent on Oct 1 Adjust for the used portion of prepaid rent at Dec 31 of this year. K $1,220 is owed for utilities used through the end of this year. The A/P balance goes to Naboo utilities Co. Additional income tax expense of $38,000 needs to be corrected at year end Vithauer: Deprecation must be recorded for the year given the following information: Assets Acouston Date Cost Estmated Le Savage Deprecaton Method Buiding 7/1/08 $306,000 25 years $15,000 straight-ire Starship # 1 4 /1/09 $28,000 60,000 parsecs $3,100 unts of production (parsecs) (4,000 parsecs this yr.) Starship #2 9/1/11 $33.000 60,000 parsecs $4,200 units of producten (parsecs) (8,000 parsecs this yr.) Star Destroyer #2 3/29/09 $40,000 10 years $2,000 straght-ne Star Destroyer #3 9/16/10 $43,000 10 years $3,000 strahtine Office Equpment 11/15/09 $32,800 7 years $0 straight-ine Supercomputer 12/21/14 $25,000 years $3,000 Double Deching Balance (note: the company takes 1/2 year's deprecation in the year of acquisition) Round to the nearest dollar for total depredation. Home Help Share pe Brmulas Data Get Add-ins My Add-ins Review View Th? Recommended Charts Developer B Search t Line 1 3D Tours Maps PivotChart I V Column Wind Sparklines E Slicer Timeline Link Comment et Tert Symb Loss Add-ins 5 | EF IK Closing Entries: Close Revenues, Contra-Revenues, and Gains here. 08 the 09 e end 210 Use Income Summary as credit amount. 211 212 Close Expenses and Losses here. Use Income Summary for debited amount 213 214 215 216 217 218 219 220 instruction Tra n e 30 2014 General Journal General Ledger Accounts Receivable GENERAL LEDGER Note: All amounts in this reginning balances 12/1/2014 Add-ins - Recommended Charts Maps PivotChart - Line Column Wind Loss Slicer Timeline Link 3D Map Tours Comment Add-ins Charts Sparklines Filters Links | Comments I Beco E F G H K L M N am. Depr. -Equipment 13.200 Accounts pel Accum. Depr. - Space Ships 39.540 Notes Payable (current) 15,000 174,000 125.850 13, 200 174,000 ries & Wapes Payable FICA Taxes Payable Federal Withholding Taxes Payable 9,573 Instructions T ral Balance at 11 30 2014 General Journal General Ledger Accounts Receivable lec ... Dete D C FUTA Taxes Payable 400 Interest Payable SUTA Taxes Payable 2,600 400 2,600 Bonds Payable 275,000 Discount on Bonds Payable 6,400 Common Stock 190,000 275,000 6,400 190,000 Treasury Stock 42,610 Sales Revenue 5,234, 940 Sales Returns & Allowances 9,3801 Instructions Trial Balance at 11 30 2014 General Jouman General Ledge Dividends Payable Notes Payable (long-term) 113,000 113,000 Additional Paiden Capital, Common 255,400 Retained Earnings 426,388 255,400 426,388 Closing 426,388 Sales Discounts 73,044 Cost of Goods Sold 3,648,722 o Save Insert Draw Page Layout Formulas Data Review View Developer Get Add-ins Table Illustrations My Add-ins - Table Recommended Pivot Tables Tables XX albit Recommended Charts Add-ins Charts XV fx D Treasury Stock 42,610 Sales Revenue 5,234,940 Sales Returns & Allowances 9,380 42,610 5,234,940 9.380 Closing 5,234,940 9,380 Advertising Expense Bad Debt Expense 5.578 Supplies Expense 1.540 540 Closing Instructions Trial Balance at 11:30 2014 General Journal general Ledger AS O Type here to search El Tours Sparklines Filters M P L Sales Discounts 73,044 N O Cost of Goods Sold 3,648,722 73,044 3,648,722 73,044 3,648,722 | Repairs Expense 17,732 Miscellaneous Expense er Accounts Receivable ledger Accounts Payable ledger Bad Debt Expense Advertising Expense 6,578 6,578 Closing 6,578 Depreciation Expense Insurance Expense Closing Utilities Expense 16,270 Interest Revenue 3,150 oin to c 16,270 Trial Balance at 3,150 30 2014 Gene SPROKIES Filters LIMNO Repairs Expens * 17,732 Miscellaneous Expense 17,732 17,732 Rent Expense Payroll Tax Expense 82,916 82,916 82,916 Loss on Disposal of Assets Interest Expense 24570 24,570 Accounts Receivable ledger dger Accounts Payable ledger . 3,150 24.570 16,270 3,150 24,570 losing 16,270 3,150 24,570 Income Tax Expense 72.000 T-Accounts Balance? If zero, then T-Accounts Balance Post closing T-Accounts balance? If zero, then T-Accounts Balance 72,000 Closing 72.000 A B C D E F ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER G H Note: All amounts in italics are beginning Bosk Co. 3,700 C3PO Co. 22,000 50,300 Endor Ltd. 27,120 3,700 72,300 27,120 Princess Leia Co. Storm Troopers Unlimited R2D2 Computers 95,900 95,900 M IN ning balances at 12/1/2014 Jabba's Huts, Inc. 74,350 Jango Fett, Inc. 24,050 74,350 24,050 Vader Enterprises Yoda, Inc. 20,000 20,000 A B C D E F G H 95,900 Wookie, Inc Total ending balance at 12/31/14 317,420 29 Instructions Trial Balance at 130 Gene Talou g eneral Ledge Accounts RACON Xx A B C D E F G H I K ACCOUNTS PAYABLE SUBSIDIARY LEDGER Note: All amounts in italics are beginning balances at 12/1/2014 L M N O P Calrisian's Components Count Dooku Consulting 7,200 Greedo Inc. Hyperspace Unlimited 9,900 26,000 37,719 7,200 HH 63,719 9,900 Land Speeder, Inc. Naboo Utilities Co. Palpatine Computing Co. Star Destroyer Repairs Tattooine Ltd. 35,545 - 35,545 CDEFGHET Land Speeder, Inc. Naboo Utilities Co. Palpatine Computing Co. Naboo Stationery Co. Wamp Rat, Co. 10,486 Total ending balance at 12/31/14 126,850 10,486 Beginning balances as of 12/1/14 115 #of Units Cost per Unit Total Cost 2,000 I $ 230,000 120 $ 84,000 1,000 $ 130,000 400 140 $ 56,000 700 Purchase Date 4/17 Beginning Inventory 6/1 Beginning Inventory 8/22 Beginning Inventory 10/1 Beginning Inventory 12/2 Purchase 12/10 Purchase 12/19 Purchase 12/21 Purchase 12/28 Purchase Totals 4,100 $ 500,000 Wof Units 12/1 Sale 12/3 Sale 12/6 Sale 12/9 Sale 12/12 Sale 12/13 Sale ... Accounts Payable ledger Inventory COGS calculations Cost of Goods Sold (Perpetual FIFO) Date of Sale Units Sold: Cost per Uni Total Cost COGS from 1/1 to 11/30 $3,648,722 12/1 12/3 12/6 12/9 12/12 . Trial Balance at 12 31 2014 Financial Statements Post Closing Trial B G H I J Cost of Goods Sold (Perpetual FIFO) of Units Date of Sale Junits Sold: Cost per UnifTotal Cost 12/1 Sale COGS from 1/1 to 11/30 $3,648,722 12/3 Sale 12/1 12/6 Sale 12/3 12/9 Sale 12/6 12/12 Sale 12/9 12/13 Sale 12/12 12/14 Sale 12/13 12/15 Sale 12/13 12/20 Sale 12/14 12/27 Sale 12/15 12/29 Sale 12/15 Total units sold 12/20 12/20 12/27 12/27 Updated Inventory Totals (after sales) 12/29 Purchase Date of Units Cost per un Total Cost 12/29 4/17 Beginning Inventor 2,000 $ 115 230,000 12/29 6/1 Beginning inventory 700 $ 120 $ 34,000 8/22 Beginning inventory Total COGS$ 3,648,722 1,000S 1 30 S 130,000 Accounts Payable ledger Inventory COGS calculations Trial Balance at 12 31 2014 12/27 12/29 12/29 12/29 USU Total COGS S 3,648,722 Updated Inventory Totals (after sales) 33 Purchase Date # of Units Cost per Unik Total Cost 4/17 Beginning Inventory 2,000 $ 115 $ 230,000 6/1 Beginning Inventory 700 $ 120 $ 84,000 8/22 Beginning Inventory 1,000 130 $ 130,000 10/1 Beginning Inventory 140 $ 56,000 12/2 Purchase 12/10 Purchase 12/19 Purchase 12/21 Purchase 12/28 Purchase Totals $ 500,000 ses sin is in Balanced? (if Oor-) Get Add-ins Table Illustrations wotTable Recommended Pivot Tables My Add-ins - 0 Recommended Charts Tables Add-ins 580 13 C D Star Wars, Inc Trial Balance December 31, 2014 4 Accounts: Debit Credit Cash 249,930 Petty Cash 150 Accounts Receivable 317,420 Allowance for Doubtful Accounts Notes Receivable (current) 45,000 Interest Receivable Inventory 500,000 Supplies 2,320 Prepaid Insurance 11,020 Prepaid Rent 25,410 Other Assets (current) 145,000 Land 43,000 Buildings 306,000 Accumulated Depreciation - Buildings 73,040 Equipment 32,800 Accumulated Depreciation - Equipment 13,200 Space Ships 174,000 Accumulated Depreciation - Space Ships 39.540 Accounts Payable ledger Inventory COGS calculations ASSETS BE 73,044 3,648,722 6,578 1,540 17,732 BE 4 Sales Discounts 5 w Cost of Goods Sold -6 y Advertising Expense 17 Bad Debt Expense 18 Supplies Expense 49 m Repairs Expense 50 ( Miscellaneous Expense z Depreciation Expense Insurance Expense Salaries & Wages Expense Rent Expense Payroll Tax Expense Utilities Expense Interest Revenue Gain on Disposal of Fixed Assets de Interest Expense Loss on Disposal of Fixed Assets Income Tax Expense 933,122 Rev/Exp OPERATING 82,916 16,270 3,150 24,570 72,000 Totals 6,786,934 6,786,934 Accounts Payable ledger Inventory COGS calculations Trial Balance Oo oo Star Wars, Inc. Income Statement For the Year Ended December 31, 2014 St 11 Sales Revenue 12 Less: Sales Discounts 13 Sales Returns & Allowances 14 Net Sales