Hullie & Oates Company
End of Period Worksheet
For the Year Ended December 31, 2011
	Unadjusted				Adjusted
Account Title	Trial Balance		Adjustments		Trial Balance
	DR	CR	DR	CR	DR	CR
Cash	36,000	-
Accounts Receivable	72,850	-
Allowance for Doubtful Accounts		2,000
Interest Receivable	-
Merchandise Inventory	160,500	-
Prepaid Insurance	18,000	-		-
Prepaid Advertising	48,000
Prepaid Rent	-
Store Supplies	4,250	-
Office Supplies	-	-
Note Receivable	24,000
Store Equipment	175,000	-
Accumulated Depreciation - Store Equipment	-	40,050
Office Equipment	80,000	-
Accumulated Depreciation - Office Equipment	-	17,200
Accounts Payable	-	85,200
Salaries Payable	-	-
Interest Payable	-	-
Unearned Rent	-	20,000
Note Payable (final payment due 2017)	-	146,000
Common Stock	-	60,000
Retained Earnings	-	110,500
Dividends	25,000	-
Sales	-	788,350
Sales Returns and Allowances	11,700	-
Sales Discounts	7,200	-
Cost of Goods Sold	457,200	-
Sales Salaries Expense	94,650	-
Advertising Expense		-
Depreciation Expense - Store Equipment	-	-
Store Supplies Expense	-	-
Miscellaneous Selling Expense	2,600	-
Office Salaries Expense	34,000	-
Rent Expense	10,200	-
Insurance Expense	-	-	-
Depreciation Expense - Office Equipment	-	-
Office Supplies Expense	6,500	-
Miscellaneous Administrative Expense	1,650	-
Rent Revenue	-	-
Interest Revenue
Interest Expense	-	-
Bad Debt Expense	-	-
Total	1,269,300	1,269,300

Here is the trial balance for Hullie & Oates Company as of 12/31/11. Hullie & Oates Company prepare financial statements annually.

(Round all numbers to the nearest dollar)

On April 1, 2011 a 12-month insurance policy was purchased for $18,000.

On January 1, 2011 Hullie & Oates paid Gretsky Advertising $48,000 for two years of advertising services. Equal services are provided in year 1 and year 2.

Hullie & Oates needed some additional storage space so on November 1, 2011 they rented a unit for an annual rate of $10,200. The entire amount was expensed when paid.

$4,250 of store supplies were purchased during the year and the asset store supplies was increased. $3,850 of these supplies were used during the year.

$6,500 of office supplies were purchased during the year and were immediately expensed. $1,500 of these supplies remained at the end of 2011.

On July 1, 2011, Hullie & Oates issued a 9-month note receivable to Shanahan & Co. at an annual interest rate of 7%. Principle and interest will be paid at the end of the 9-months. The note was recorded in Notes Receivable and is the only note outstanding.

Depreciation for the year is based on the following:

Straight line depreciation

Store equipment Assets were held for the entire year; Residual Value = $7,000; Service life is estimated to be 10 years.

Office equipment Assets were held for the entire year; Residual Value = $5,000; Service life is estimated to be 5 years.

Sales salaries of $6,200 and office salaries of $4,800 remained unpaid at 12/31/11.

On October 1, 2011, Hullie & Oates rented a portion of one store to Twist & Chase Co. The contract was for 10 months and Hullie & Oates required the 10 months of cash upfront on October 1^st. The rent is being earned equally over the next 10 months. When cash was received, unearned rent was appropriately recorded.

The note payable was outstanding the entire year and a 5.5% interest rate exists on the note. No interest has been recorded for the year.

Based on past experience, Hullie & Oates calculates bad debt expense at 1% of net sales for the year.

After the above adjusting entries are entered on the adjustment worksheet, the amounts should be linked to the adjustments column of the worksheet. Your adjustment amounts should be a formula so if you change the debit/credit amount on the adjustments worksheet, the column amount will automatically change.

Complete the adjusted columns by the use of the formula. Think about the best way to do this. Your last two columns should never contain constant numbers but will include formulas only.

Prepare a multiple-step income statement with good form.

Prepare a Statement of Stockholders Equity.

Prepare a journal entry form of the closing entries for Hullie & Oates at the end of 12/31/11.

Prepare a Classified Balance Sheet for 12/31/11

Complete the Ratio Tab.

P.S. I believe the unadjusted trial balance simply means it isn't adjusted by any changes. I am unsure how to respond do your comment directly Anon.

The Ratio tabs only has

Ratios
Current Capital
Curren Ratio