Instructions: You are the controller at Star Wars, Inc., a wholesale distributor of light sabers and other interstellar weaponry. The corporation was founded in galaxy far, far away a long time ago. The company has 420,000 share of common stock authorized with a par value of $18. Currently, 28,000 shares are issued and outstanding. In your role as controller, you are responsible for the company's accounting records, financial statement preparation, and ensuring that the company has adequate internal controls. You also support management at Star Wars by providing required financial reports. You supervise a staff that takes care of the other aspects of accounting, but ultimately you oversee all the functions of the accounting department. Star Wars, Inc. maintains a calendar year-end (the books are closed on December 31 of each year). Adjusting entries are only prepared annually. Therefore, when you prepare the adjusting entries, they will need to be for the entire year, not just for December. In order to complete this practice set, you will need to record all regular transactions for the month of December, 2014 (all other regular transactions have already been recorded for the year) and all of the year-end adjusting entries. You will journalize all transactions and adjustments in the general journal, post them to the general ledger accounts, prepare an adjusted trial balance, prepare the financial statements, prepare closing entries, and finally a post-closing trial balance for the year ended December 31, 2014. The following information pertains to the various accounting practices applicable to Star Wars, Inc. 1. Star Wars, Inc. maintains inventory using the perpetual method. All inventory costs are tracked using last in, first out (LIFO) cost flows. (See the cost of goods sold sheet for details regarding inventory) 2. Purchases of inventory are recorded at the net amount (discounts are recognized on the date of purchase, if applicable) The purchase terms are different for each supplier. Forfeited discounts are recorded separately as cost of goods sold. 3. Sales on account are subject to terms 2/15, n/40 and are recorded at gross value. 4. The company utilizes a general journal and general ledger, but also tracks detailed information on suppliers and customers in accounts payable and accounts receivable subsidiary ledgers, respectively. You will need to maintain the subsidiary ledgers. 5. Salaried employees are paid monthly at the end of the month (on the last day of the month). Hourly employees are paid every two weeks. Each two week pay period ends on the Friday of the second week. 6. The Company's chart of accounts is listed on the right side of this spreadsheet. 7. The Company uses the Allowance Method of accounting for bad debt. The Company calculates bad debt expense at the end of the fiscal year at 5% of ending A/R (using the % of receivables method). Check Figures: Net Income Total Assets COGS $ $ $ $ 1,227,435 5,874,794 972,300 For December 4,102,302 Total COGS Chart of Accounts: Name of Account Cash Petty Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Inventory men Supplies Prepaid Insurance Prepaid Rent Other Assets Land w Buildings Accumulated Depreciation - Buildings Equipment 2 Accumulated Depreciation - Equipment Space Ships ware Accumulated Depreciation - Space Ships Notes Payable Accounts Payable Salaries and Wages Payable FICA Taxes Payable Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Payable FUTA Taxes Payable nun SUTATaxes Payable Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable common Additional Paid-in Capital, Common Retained Earnings Treasury Stock Dividends Number of Account 101 104 111 112 115 118 120 125 128 130 131 135 140 141 146 147 155 156 200 201 210 211 212 213 214 215 216 225 223 226 22 230 232 20 233 20 300 wo 301 305 303 310 315 wa 320 24 401 402 403 500 w 601 602 wa 603 we 604 w 605 606 we 607 w 608 wo 609 OUS 610 010 611 700 701 800 801 802 900 Common Stock 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 Petty Cash Overage/Shortage Income Tax Expense Credit 4,580 245,000 377,996 LIABILITIES 325 450 65,000 321,650 5,200 3,825 36,000 13521 4,111 650 3,890 Star Wars, Inc Trial Balance November 30, 2014 Accounts: Debit Cash 211,524 Petty Cash 300 Accounts Receivable 317 420 Allowance for Doubtful Accounts Notes Receivable (current) 65,000 Interest Receivable Inventory 373,700 Supplies 3,110 Prepaid Insurance 15,440 Prepaid Rent 32,150 Other Assets (current) 165,000 Land 750,000 Buildings 1,100,000 Accumulated Depreciation - Buildings non Equipment 891,500 . Accumulated Depreciation - Equipment . Space Ships 762,865 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 SUTATaxes Payable Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable 57,350 Common Stock Additional Paid-in Capital, Common Retained Earnings Treasury Stock 56,325 Sales Revenue Sales Returns & Allowances 12,567 Sales Discounts 82,567 Cost of Goods Sold 3,130,002 Advertising Expense 25,678 Bad Debt Expense Supplies Expense 16,574 Repairs Expense 28,777 Miscellaneous Expense Depreciation Expense Insurance Expense Salaries & Wages Expense 953,172 Rent Expense Payroll Tax Expense 99,657 Utilities Expense 24,567 Interest Revenue Gain on Disposal of Fixed Assets Interest Expense 48,752 Loss on Disposal of Fixed Assets Petty Cash Overage/Shortage Income Tax Expense 72,000 1,200,000 500,000 504,000 385,000 217,389 5,079,585 Other Rev/EXI OPERATING EXPENSES REV. EQUITY 3,150 Totals 9,295,997 9,295,997 included as a comment (red triangle in cell). or over cell and the comment will pop up. General Journal Date Accounts Example Journal Ent Debit 11-Dec 11-Dec 11-Dec 12-Dec 26-Dec 27-Dec Closing Entries: You will need to close all the temporary accounts at the end Close Revenues/Gains (and contra-revenue) accounts here (even if zero balance). Close to Income Summary Close Expenses/Losses accounts here (even if zero balance). Close to Income Summary Close the accounts in the order they appear on the account list. Close income summary to retained earnings Totals GENERAL LEDGER Note: All amounts in italics are beginning balances at 12/1/2014 Cash 211,524 Petty Cash 300 Accounts Receivable 317,420 Allowance for Doubtful Accounts 4,580 Notes Receivable (current) 65,000 III 211,524 300 317,420 4,580 65,000 Interest Receivable Inventory 373,700 Supplies 3,110 Prepaid Insurance 15,440 Prepaid Rent 32,150 373,700 3,110 | 15,440 32,150 Other Assets (current) 165,000 Land 750,000 Buildings 1,100,000 Accum. Depr. - Building 245,000 Equipment 891,500 165,000 750,000 1,100,000 245,000 891,500 Land Other Assets (current) 165,000 Buildings 1,100,000 Accum. Depr. - Building 245,000 Equipment 891,500 750,000 165,000 750,000 1,100,000 245,000 891,500 Notes Payable (current) Accounts Payable Accum. Depr. - Equipment 377,996 Space Ships 762,865 Accum. Depr. - Space Ships 325,450 65,000 321,650 377,996 762,865 325,450 65,000 321,650 FICA Taxes Payable Salaries & Wages Payable 5,200 Income Taxes Payable 36,000 Federal Withholding Taxes Payable 13,521 State Withholding Taxes Payable 4,111 3,825 5,200 3,825 36,000 13,521 4,111 FUTA Taxes Payable SUTA Taxes Payable Interest Payable Dividends Payable Notes Payable (long-term) 1,200,000 650 3,890 650 3,890 1,200,000 Bonds Payable Common Stock Discount on Bonds Payable 57,350 Additional Paid-n Capital, Common 385,000 Retained Earnings 217,389 500,000 504,000 500,000 57,350 504,000 385,000 217,389 217,389 Treasury Stock 56,325 Sales Revenue 5,079,585 Sales Returns & Allowances 12,567 Sales Discounts 82,567 Cost of Goods Sold 3,130,002 56,325 5,079,585 12,567 82,567 3,130,002 5,079,585 12,567 82,567 3,130,002 Advertising Expense 25,678 Bad Debt Expense Miscellaneous Expense Supplies Expense 16,574 Repairs Expense 28,777 25,678 16,574 28,777 25,678 16,574 28,777 Depreciation Expense Insurance Expense Rent Expense Salaries & Wages Expense 953,172 Payroll Tax Expense 99,657 953,172 99,657 953,172 99,657 953,1721 99,657 Interest Revenue Gain on Disposal of Assets Loss on Disposal of Assets Utilities Expense 24,567 Interest Expense 48,752 3,150 24,567 3,150 48,752 24,567 3,150 48,752 Petty Cash Overage/Shortage 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 72,000 ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER Note: All amounts in italics are beginning balances at 12/1/2014 Bosk Co. Endor Ltd. C3PO Co. 22,000 50,300 Jabba's Huts, Inc. 74,350 Jango Fett, Inc. 24,050 3,700 27,120 3,700 72,300 27,120 74,350 24,050 Princess Leia Co. Storm Troopers Unlimited Vader Enterprises R2D2 Computers 95,900 Yoda, Inc. 20,000 95,900 20,000 Wookie, Inc Total ending balance at 12/31/14 $ 317,420 ACCOUNTS PAYABLE SUBSIDIARY LEDGER Note: All amounts in italics are beginning balances at 12/1/2014 Calrisian's Components Ewok Inc. Greedo Inc. Hyperspace Unlimited Count Dooku Consulting 37,829 59,420 45,800 75,250 37,829 121,050 59,420 Land Speeder, Inc. Naboo Utilities Co. Palpatine Computing Co. Star Destroyer Repairs Tattooine Ltd. 37,880 37,880 Wamp Rat, Co. 65,471 Total ending balance at 12/31/14 (after posting all transactions) 321,650 65,471 Beginning balances as of 12/1/14 300 Purchase Date 4/17 Beginning Inventory 6/1 Beginning Inventory 8/22 Beginning Inventory 10/1 Beginning Inventory 12/6 Purchase 12/10 Purchase 12/18 Purchase 12/19 Purchase 12/24 Purchase 12/30 Purchase Totals # of Units Cost per Unit Total Cost 500 $ 335$ 167,500 $ 340 $ 102,000 200 $ 346 $ 69,200 100 $ 350 $ 35,000 $ $ $ $ $ $ 1,100 $ 373,700 12/1 Sale 12/3 Sale 12/7 Sale 12/9 Sale 12/11 Sale 12/12 Sale 12/13 Sale 12/20 Sale 12/21 Sale 12/26 Sale 12/31 Sale Total units sold # of Units 250 200 185 300 305 165 250 310 320 235 180 2,700 Cost of Goods Sold (Perpetual LIFO): Date of Sale Units Sold: Cost per Unit Total Cost 12/1 $ 12/1 $ 12/3 $ 12/3 $ 12/7 12/9 12/11 $ 12/12 12/12 12/12 $ 12/13 12/13 12/20 12/20 12/21 12/21 12/26 12/26 $ 12/31 $ Total COGS $ Updated Inventory Totals (after sales) Purchase Date # of Units Cost per Unit Total Cost 4/17 Beginning Inventory 500 $ 335 $ 167,500 6/1 Beginning Inventory 300 $ 340 $ 102,000 8/22 Beginning Inventory 200 $ 346 $ 69,200 10/1 Beginning Inventory 100 $ 350 $ 35,000 12/6 Purchase $ $ 12/10 Purchase $ $ 12/18 Purchase $ $ 12/19 Purchase $ $ 12/24 Purchase $ $ 12/30 Purchase $ $ Totals 1,100 $ 373,700 - - Balanced? (if Oor -) $ Credit 4,580 ASSETS 165.000 245,000 377,996 Star Wars, Inc Trial Balance December 31, 2014 Accounts: Debit Cash 211,524 Petty Cash 300 Accounts Receivable 317,420 Allowance for Doubtful Accounts Notes Receivable (current) 65,000 Interest Receivable Inventory 373,700 Supplies 3,110 Prepaid Insurance 15,440 Prepaid Rent 32,150 Other Assets (current) Land 750,000 Buildings 1,100,000 Accumulated Depreciation - Buildings Equipment 891,500 Accumulated Depreciation - Equipment Space Ships 762,865 Accumulated Depreciation - Space Ships Notes Payable (current) Accounts Payable Salaries & Wages Payable FICA Taxes Payable n Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Payable FUTA Taxes Payable SUTATaxes Payable Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable 57,350 Common Stock Additional Paid-in Capital, Common Retained Earnings Treasury Stock Sales Revenue Sales Returns & Allowances 12,567 Sales Discounts 82.567 Cost of Goods Sold 3,130,002 Advertising Expense 25,678 Bad Debt Expense Supplies Expense 16,574 Repairs Expense Miscellaneous Expense Depreciation Expense Insurance Expense Salaries & Wages Expense 953,172 Rent Expense Payroll Tax Expense 99,657 Utilities Expense 24.567 Interest Revenue Gain on Disposal of Fixed Assets Interest Expense 48,752 Loss on Disposal of Fixed Assets Petty Cash Overage/Shortage Income Tax Expense 72,000 LIABILITIES 325,450 65,000 321,650 5,200 3,825 36,000 13,521 4,111 650 3,890 1,200,000 500,000 504,000 385,000 217,389 56,325 5,079,585 Other Rev/EXE OPERATING EXPENSES REV. EQUITY 28,777 3,150 Totals 9,295,997 9,295,997 Please Create An Income Statement, Statement of Stockholders' Equity and Balance Sheet In Good Form NOTE: You need to fill in the GREY areas with the correct numbers (use the ending balances sheet). Star Wars, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 2014 Star Wars, Inc. Income Statement For the Year Ended December 31, 2014 Common Stock $ 504,000 $ APIC 385,000 $ Retained Earnings Treasury Stock 217,389 $ (56,325) $ Total 1,050,064 Balance, 1/1/2014 Stock Issuance Sales Revenue Less: Sales Discounts Sales Returns & Allowances Net Sales Revenue Dividends Declared Stock Repurchase Cost of Goods Sold Net Income Gross Margin Balance, 12/31/2014 $ 504,000 $ 385,000 $ 217,389 $ (56,325) $ 1,050,064 Operating Expenses: Salaries & Wages Expense Utilities Expense Advertising Expense Supplies Expense Insurance Expense Repairs Expense Payroll Tax Expense Rent Expense Bad Debt Expense Depreciation Expense Miscellaneous Expense Total Operating Expenses Remember to net the A/R account and the Allowance Accountil Operating Margin 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 Less: Accum. Depr. - Buildings Property, Plant, and Equipment, net $ Other Income and (Expenses): Interest Revenue Gain on Disposal Loss on Disposal Petty Cash Overage/Shortage Interest Expense Enter Accumulated Depreciation as a Negative Income Before Taxes Enter Accumulated Depreciation as a Negative ITALIANO Income Tax Expense Enter Accumulated Depreciation as a Negative Net Income 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 FUTA Taxes Payable SUTA Taxes Payable Interest Payable 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) $ $ 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 FUTA Taxes Payable SUTA Taxes Payable Interest Payable 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 Cash 4,580 ASSETS Prepaid Rent 245,000 Equipment 377,996 325450 65,000 321,650 5,200 3.825 3,825 36,000 LIABILITIES Star Wars, Inc Post Closing Trial Balance December 31, 2014 Accounts: Debit 211,524 Petty Cash 300 Accounts Receivable 317420 Allowance for Doubtful Accounts Notes Receivable (current) 65,000 Interest Receivable Inventory 373,700 Supplies 3,110 Prepaid Insurance 15,440 32,150 Other Assets (current) 165,000 Land Land 750,000 Buildings 1,100,000 Accumulated Depreciation - Buildings 891,500 Accumulated Depreciation - Equipment Space Ships 762,865 Accumulated Depreciation - Space Ships Notes Payable (current) Accounts Payable Salaries & Wages Payable FICATaxes Payable Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Pavable mes.com FUTA Taxes Pavable SUTATaxes Payable Interest Payable Buddha Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable 57,350 Common Stock in Additional Paid-in Capital, Common Retained Earnings Ketamed barn Treasury Stock 56,325 Sales Revenue Sales Returns & Allowances 12,567 Sales Discounts 82,567 Cost of Goods Sold 3,130,002 Advertising Expense 25,678 m Bad Debt Expense A. Supplies Expense 16,574 Repairs Expense 28,777 Miscellaneous Expense Depreciation Expense Insurance Expense Salaries & Wages Expense 953,172 Rent Expense Payroll Tax Expense 99,657 Utilities Expense 24,567 Interest Revenue Gain on Disposal of Fixed Assets Interest Expense 48,752 Loss on Disposal of Fixed Assets Petty Cash Overage/Shortage Income Tax Expense 72,000 13,521 4,111 650 3,890 1,200,000 500,000 504,000 385,000 217,389 5,079,585 5079585 Other Rev/E OPERATING EXPENSES REV. EQUIT - 3,150 Totals 9,295,997 9,295,997 Instructions: You are the controller at Star Wars, Inc., a wholesale distributor of light sabers and other interstellar weaponry. The corporation was founded in galaxy far, far away a long time ago. The company has 420,000 share of common stock authorized with a par value of $18. Currently, 28,000 shares are issued and outstanding. In your role as controller, you are responsible for the company's accounting records, financial statement preparation, and ensuring that the company has adequate internal controls. You also support management at Star Wars by providing required financial reports. You supervise a staff that takes care of the other aspects of accounting, but ultimately you oversee all the functions of the accounting department. Star Wars, Inc. maintains a calendar year-end (the books are closed on December 31 of each year). Adjusting entries are only prepared annually. Therefore, when you prepare the adjusting entries, they will need to be for the entire year, not just for December. In order to complete this practice set, you will need to record all regular transactions for the month of December, 2014 (all other regular transactions have already been recorded for the year) and all of the year-end adjusting entries. You will journalize all transactions and adjustments in the general journal, post them to the general ledger accounts, prepare an adjusted trial balance, prepare the financial statements, prepare closing entries, and finally a post-closing trial balance for the year ended December 31, 2014. The following information pertains to the various accounting practices applicable to Star Wars, Inc. 1. Star Wars, Inc. maintains inventory using the perpetual method. All inventory costs are tracked using last in, first out (LIFO) cost flows. (See the cost of goods sold sheet for details regarding inventory) 2. Purchases of inventory are recorded at the net amount (discounts are recognized on the date of purchase, if applicable) The purchase terms are different for each supplier. Forfeited discounts are recorded separately as cost of goods sold. 3. Sales on account are subject to terms 2/15, n/40 and are recorded at gross value. 4. The company utilizes a general journal and general ledger, but also tracks detailed information on suppliers and customers in accounts payable and accounts receivable subsidiary ledgers, respectively. You will need to maintain the subsidiary ledgers. 5. Salaried employees are paid monthly at the end of the month (on the last day of the month). Hourly employees are paid every two weeks. Each two week pay period ends on the Friday of the second week. 6. The Company's chart of accounts is listed on the right side of this spreadsheet. 7. The Company uses the Allowance Method of accounting for bad debt. The Company calculates bad debt expense at the end of the fiscal year at 5% of ending A/R (using the % of receivables method). Check Figures: Net Income Total Assets COGS $ $ $ $ 1,227,435 5,874,794 972,300 For December 4,102,302 Total COGS Chart of Accounts: Name of Account Cash Petty Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Inventory men Supplies Prepaid Insurance Prepaid Rent Other Assets Land w Buildings Accumulated Depreciation - Buildings Equipment 2 Accumulated Depreciation - Equipment Space Ships ware Accumulated Depreciation - Space Ships Notes Payable Accounts Payable Salaries and Wages Payable FICA Taxes Payable Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Payable FUTA Taxes Payable nun SUTATaxes Payable Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable common Additional Paid-in Capital, Common Retained Earnings Treasury Stock Dividends Number of Account 101 104 111 112 115 118 120 125 128 130 131 135 140 141 146 147 155 156 200 201 210 211 212 213 214 215 216 225 223 226 22 230 232 20 233 20 300 wo 301 305 303 310 315 wa 320 24 401 402 403 500 w 601 602 wa 603 we 604 w 605 606 we 607 w 608 wo 609 OUS 610 010 611 700 701 800 801 802 900 Common Stock 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 Petty Cash Overage/Shortage Income Tax Expense Credit 4,580 245,000 377,996 LIABILITIES 325 450 65,000 321,650 5,200 3,825 36,000 13521 4,111 650 3,890 Star Wars, Inc Trial Balance November 30, 2014 Accounts: Debit Cash 211,524 Petty Cash 300 Accounts Receivable 317 420 Allowance for Doubtful Accounts Notes Receivable (current) 65,000 Interest Receivable Inventory 373,700 Supplies 3,110 Prepaid Insurance 15,440 Prepaid Rent 32,150 Other Assets (current) 165,000 Land 750,000 Buildings 1,100,000 Accumulated Depreciation - Buildings non Equipment 891,500 . Accumulated Depreciation - Equipment . Space Ships 762,865 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 SUTATaxes Payable Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable 57,350 Common Stock Additional Paid-in Capital, Common Retained Earnings Treasury Stock 56,325 Sales Revenue Sales Returns & Allowances 12,567 Sales Discounts 82,567 Cost of Goods Sold 3,130,002 Advertising Expense 25,678 Bad Debt Expense Supplies Expense 16,574 Repairs Expense 28,777 Miscellaneous Expense Depreciation Expense Insurance Expense Salaries & Wages Expense 953,172 Rent Expense Payroll Tax Expense 99,657 Utilities Expense 24,567 Interest Revenue Gain on Disposal of Fixed Assets Interest Expense 48,752 Loss on Disposal of Fixed Assets Petty Cash Overage/Shortage Income Tax Expense 72,000 1,200,000 500,000 504,000 385,000 217,389 5,079,585 Other Rev/EXI OPERATING EXPENSES REV. EQUITY 3,150 Totals 9,295,997 9,295,997 included as a comment (red triangle in cell). or over cell and the comment will pop up. General Journal Date Accounts Example Journal Ent Debit 11-Dec 11-Dec 11-Dec 12-Dec 26-Dec 27-Dec Closing Entries: You will need to close all the temporary accounts at the end Close Revenues/Gains (and contra-revenue) accounts here (even if zero balance). Close to Income Summary Close Expenses/Losses accounts here (even if zero balance). Close to Income Summary Close the accounts in the order they appear on the account list. Close income summary to retained earnings Totals GENERAL LEDGER Note: All amounts in italics are beginning balances at 12/1/2014 Cash 211,524 Petty Cash 300 Accounts Receivable 317,420 Allowance for Doubtful Accounts 4,580 Notes Receivable (current) 65,000 III 211,524 300 317,420 4,580 65,000 Interest Receivable Inventory 373,700 Supplies 3,110 Prepaid Insurance 15,440 Prepaid Rent 32,150 373,700 3,110 | 15,440 32,150 Other Assets (current) 165,000 Land 750,000 Buildings 1,100,000 Accum. Depr. - Building 245,000 Equipment 891,500 165,000 750,000 1,100,000 245,000 891,500 Land Other Assets (current) 165,000 Buildings 1,100,000 Accum. Depr. - Building 245,000 Equipment 891,500 750,000 165,000 750,000 1,100,000 245,000 891,500 Notes Payable (current) Accounts Payable Accum. Depr. - Equipment 377,996 Space Ships 762,865 Accum. Depr. - Space Ships 325,450 65,000 321,650 377,996 762,865 325,450 65,000 321,650 FICA Taxes Payable Salaries & Wages Payable 5,200 Income Taxes Payable 36,000 Federal Withholding Taxes Payable 13,521 State Withholding Taxes Payable 4,111 3,825 5,200 3,825 36,000 13,521 4,111 FUTA Taxes Payable SUTA Taxes Payable Interest Payable Dividends Payable Notes Payable (long-term) 1,200,000 650 3,890 650 3,890 1,200,000 Bonds Payable Common Stock Discount on Bonds Payable 57,350 Additional Paid-n Capital, Common 385,000 Retained Earnings 217,389 500,000 504,000 500,000 57,350 504,000 385,000 217,389 217,389 Treasury Stock 56,325 Sales Revenue 5,079,585 Sales Returns & Allowances 12,567 Sales Discounts 82,567 Cost of Goods Sold 3,130,002 56,325 5,079,585 12,567 82,567 3,130,002 5,079,585 12,567 82,567 3,130,002 Advertising Expense 25,678 Bad Debt Expense Miscellaneous Expense Supplies Expense 16,574 Repairs Expense 28,777 25,678 16,574 28,777 25,678 16,574 28,777 Depreciation Expense Insurance Expense Rent Expense Salaries & Wages Expense 953,172 Payroll Tax Expense 99,657 953,172 99,657 953,172 99,657 953,1721 99,657 Interest Revenue Gain on Disposal of Assets Loss on Disposal of Assets Utilities Expense 24,567 Interest Expense 48,752 3,150 24,567 3,150 48,752 24,567 3,150 48,752 Petty Cash Overage/Shortage 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 72,000 ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER Note: All amounts in italics are beginning balances at 12/1/2014 Bosk Co. Endor Ltd. C3PO Co. 22,000 50,300 Jabba's Huts, Inc. 74,350 Jango Fett, Inc. 24,050 3,700 27,120 3,700 72,300 27,120 74,350 24,050 Princess Leia Co. Storm Troopers Unlimited Vader Enterprises R2D2 Computers 95,900 Yoda, Inc. 20,000 95,900 20,000 Wookie, Inc Total ending balance at 12/31/14 $ 317,420 ACCOUNTS PAYABLE SUBSIDIARY LEDGER Note: All amounts in italics are beginning balances at 12/1/2014 Calrisian's Components Ewok Inc. Greedo Inc. Hyperspace Unlimited Count Dooku Consulting 37,829 59,420 45,800 75,250 37,829 121,050 59,420 Land Speeder, Inc. Naboo Utilities Co. Palpatine Computing Co. Star Destroyer Repairs Tattooine Ltd. 37,880 37,880 Wamp Rat, Co. 65,471 Total ending balance at 12/31/14 (after posting all transactions) 321,650 65,471 Beginning balances as of 12/1/14 300 Purchase Date 4/17 Beginning Inventory 6/1 Beginning Inventory 8/22 Beginning Inventory 10/1 Beginning Inventory 12/6 Purchase 12/10 Purchase 12/18 Purchase 12/19 Purchase 12/24 Purchase 12/30 Purchase Totals # of Units Cost per Unit Total Cost 500 $ 335$ 167,500 $ 340 $ 102,000 200 $ 346 $ 69,200 100 $ 350 $ 35,000 $ $ $ $ $ $ 1,100 $ 373,700 12/1 Sale 12/3 Sale 12/7 Sale 12/9 Sale 12/11 Sale 12/12 Sale 12/13 Sale 12/20 Sale 12/21 Sale 12/26 Sale 12/31 Sale Total units sold # of Units 250 200 185 300 305 165 250 310 320 235 180 2,700 Cost of Goods Sold (Perpetual LIFO): Date of Sale Units Sold: Cost per Unit Total Cost 12/1 $ 12/1 $ 12/3 $ 12/3 $ 12/7 12/9 12/11 $ 12/12 12/12 12/12 $ 12/13 12/13 12/20 12/20 12/21 12/21 12/26 12/26 $ 12/31 $ Total COGS $ Updated Inventory Totals (after sales) Purchase Date # of Units Cost per Unit Total Cost 4/17 Beginning Inventory 500 $ 335 $ 167,500 6/1 Beginning Inventory 300 $ 340 $ 102,000 8/22 Beginning Inventory 200 $ 346 $ 69,200 10/1 Beginning Inventory 100 $ 350 $ 35,000 12/6 Purchase $ $ 12/10 Purchase $ $ 12/18 Purchase $ $ 12/19 Purchase $ $ 12/24 Purchase $ $ 12/30 Purchase $ $ Totals 1,100 $ 373,700 - - Balanced? (if Oor -) $ Credit 4,580 ASSETS 165.000 245,000 377,996 Star Wars, Inc Trial Balance December 31, 2014 Accounts: Debit Cash 211,524 Petty Cash 300 Accounts Receivable 317,420 Allowance for Doubtful Accounts Notes Receivable (current) 65,000 Interest Receivable Inventory 373,700 Supplies 3,110 Prepaid Insurance 15,440 Prepaid Rent 32,150 Other Assets (current) Land 750,000 Buildings 1,100,000 Accumulated Depreciation - Buildings Equipment 891,500 Accumulated Depreciation - Equipment Space Ships 762,865 Accumulated Depreciation - Space Ships Notes Payable (current) Accounts Payable Salaries & Wages Payable FICA Taxes Payable n Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Payable FUTA Taxes Payable SUTATaxes Payable Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable 57,350 Common Stock Additional Paid-in Capital, Common Retained Earnings Treasury Stock Sales Revenue Sales Returns & Allowances 12,567 Sales Discounts 82.567 Cost of Goods Sold 3,130,002 Advertising Expense 25,678 Bad Debt Expense Supplies Expense 16,574 Repairs Expense Miscellaneous Expense Depreciation Expense Insurance Expense Salaries & Wages Expense 953,172 Rent Expense Payroll Tax Expense 99,657 Utilities Expense 24.567 Interest Revenue Gain on Disposal of Fixed Assets Interest Expense 48,752 Loss on Disposal of Fixed Assets Petty Cash Overage/Shortage Income Tax Expense 72,000 LIABILITIES 325,450 65,000 321,650 5,200 3,825 36,000 13,521 4,111 650 3,890 1,200,000 500,000 504,000 385,000 217,389 56,325 5,079,585 Other Rev/EXE OPERATING EXPENSES REV. EQUITY 28,777 3,150 Totals 9,295,997 9,295,997 Please Create An Income Statement, Statement of Stockholders' Equity and Balance Sheet In Good Form NOTE: You need to fill in the GREY areas with the correct numbers (use the ending balances sheet). Star Wars, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 2014 Star Wars, Inc. Income Statement For the Year Ended December 31, 2014 Common Stock $ 504,000 $ APIC 385,000 $ Retained Earnings Treasury Stock 217,389 $ (56,325) $ Total 1,050,064 Balance, 1/1/2014 Stock Issuance Sales Revenue Less: Sales Discounts Sales Returns & Allowances Net Sales Revenue Dividends Declared Stock Repurchase Cost of Goods Sold Net Income Gross Margin Balance, 12/31/2014 $ 504,000 $ 385,000 $ 217,389 $ (56,325) $ 1,050,064 Operating Expenses: Salaries & Wages Expense Utilities Expense Advertising Expense Supplies Expense Insurance Expense Repairs Expense Payroll Tax Expense Rent Expense Bad Debt Expense Depreciation Expense Miscellaneous Expense Total Operating Expenses Remember to net the A/R account and the Allowance Accountil Operating Margin 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 Less: Accum. Depr. - Buildings Property, Plant, and Equipment, net $ Other Income and (Expenses): Interest Revenue Gain on Disposal Loss on Disposal Petty Cash Overage/Shortage Interest Expense Enter Accumulated Depreciation as a Negative Income Before Taxes Enter Accumulated Depreciation as a Negative ITALIANO Income Tax Expense Enter Accumulated Depreciation as a Negative Net Income 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 FUTA Taxes Payable SUTA Taxes Payable Interest Payable 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) $ $ 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 FUTA Taxes Payable SUTA Taxes Payable Interest Payable 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 Cash 4,580 ASSETS Prepaid Rent 245,000 Equipment 377,996 325450 65,000 321,650 5,200 3.825 3,825 36,000 LIABILITIES Star Wars, Inc Post Closing Trial Balance December 31, 2014 Accounts: Debit 211,524 Petty Cash 300 Accounts Receivable 317420 Allowance for Doubtful Accounts Notes Receivable (current) 65,000 Interest Receivable Inventory 373,700 Supplies 3,110 Prepaid Insurance 15,440 32,150 Other Assets (current) 165,000 Land Land 750,000 Buildings 1,100,000 Accumulated Depreciation - Buildings 891,500 Accumulated Depreciation - Equipment Space Ships 762,865 Accumulated Depreciation - Space Ships Notes Payable (current) Accounts Payable Salaries & Wages Payable FICATaxes Payable Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Pavable mes.com FUTA Taxes Pavable SUTATaxes Payable Interest Payable Buddha Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable 57,350 Common Stock in Additional Paid-in Capital, Common Retained Earnings Ketamed barn Treasury Stock 56,325 Sales Revenue Sales Returns & Allowances 12,567 Sales Discounts 82,567 Cost of Goods Sold 3,130,002 Advertising Expense 25,678 m Bad Debt Expense A. Supplies Expense 16,574 Repairs Expense 28,777 Miscellaneous Expense Depreciation Expense Insurance Expense Salaries & Wages Expense 953,172 Rent Expense Payroll Tax Expense 99,657 Utilities Expense 24,567 Interest Revenue Gain on Disposal of Fixed Assets Interest Expense 48,752 Loss on Disposal of Fixed Assets Petty Cash Overage/Shortage Income Tax Expense 72,000 13,521 4,111 650 3,890 1,200,000 500,000 504,000 385,000 217,389 5,079,585 5079585 Other Rev/E OPERATING EXPENSES REV. EQUIT - 3,150 Totals 9,295,997 9,295,997