June 1 Signed a 3 year 7.1% , $210000 note payable with First Bank.

June 1 Purchased 3100 GPS units on credit from Navistar for $35.5 per unit.

June 1 Issued 5,000 shares of common stock for $10 per share (Refer to General ledger for description of common stock).

June 1 Sold 1983 DVD players on account to Toyota for $75 per unit, Invoice #5555

June 2 Sold 3400 GPS units on account to Kia for $58 per unit, Invoice #5556.

June 2 Purchased office supplies from Office Max on credit for $1150

June 2 Sold 975 docking stations for $66 per unit and 1925GPS units for $82 per unit on account to Nissan, Invoice #5557.

June 3 The Board of Directors declared a cash dividend of $5 per share for shareholders of record on June 5th, payable on June 12th.

June 4 Received payment from Toyota for May 11th sale.

June 4 Rented part of the warehouse to a new tenant and received $5400 for three months rent starting in June

June 5 Paid $2,100 to Michigan Utility Co. for utilities bill that was recorded in May as an Account Payable, Check #5278.

June 7 Received and paid expense reports for travel and entertainment totaling$900 , Check #5279.

June 8 Paid for office supplies purchased on June 2nd, Check #5280.

June 11 Paid in full for the June 1 purchase from Navistar, Check #5281.

June 11 Received a bill from the law firm of Larry, Moe & Curly for$5400 , payable upon receipt, for bond consulting fees, Check #5282.

June 12 Paid the dividend that was declared on June 3, Check #5283.

June 13 Took advantage of a special deal to purchase3250 DVD players on account from JVC for$48 per unit.

June 13 Purchased 850 GPS units on credit from Magellan for $33 per unit.

June 15 Sold 2000 DVD players on credit to Ford Motor Co. for$89 per unit, Invoice 5558.

June 15 Check # 5284 was issued for payroll:$14500 for salaried and $4750 for wages (wage expense)

June 16 Purchased 1800 docking stations on credit from Samsung for$42 per unit.

June 17 Issued a credit to Kia for the return of 350 defective units from the June 2nd sale. These units has a cost basis of $36 per unit.

June 17 Returned the 350 defective units received from Kia to Navistar.

June 18 Received payment in full from Toyota for the June 1st sale.

June 20 While inspecting the June 13th purchase, it was discovered that the GPS units were programmed for South America instead of North America. AC Speed returned the entire order to Magellan.

June 20 A bankruptcy judge disallowed AC Speed's claim for $5,000 due from General Motors. Management Decided to write off this accounts receivable.

June 22 Sold 1650 docking stations on credit to Kia for 64.5 per unit, Invoice #5559.

June 23 Paid $75000 of the $162500 owed to JVC from May 25, Check #5285.

June 23 Received payment from Ford Motor Co. for $175000 of the $300000 owed from May 5.

June 24 Purchased a $100 international phone card for one of the sales representative's upcoming European business trip, Check #5286.

June 25 Paid in full for the purchase from JVC on June 13, Check #5287

June 26 Purchased 1250 docking station from Samsung for $41 per unit paying in cash, Check #5288

June 27 Sold 1500 docking stations on credit to Honda for $61 per unit, Invoice 5560.

June 27 Hired and paid a consultant $75000 to devise a marketing plan. AC Speed's management felt this was necessary to develop brand awareness. Check #5289. June 28 AC Speed is behind in its mortgage payments to Bank of America. Paid a total of $10000 ( $2000 principal and $8000 interest), Check #5290.

June 29 Received payment in full from Honda for the June 27th transaction.

June 29 Paid in full for the purchase from Magellan on May 31st, Check #5291.

June 29 Check # 5292 was issued for payroll:$14500 for salaried and $4750 for wages (wage expense)

June 30 Paid the first month's principal payment of $15,000 on the note payable.In addition, paid one month's interest, Check #5293

June 30 Issued bonds payable at face value for $450,000

*All purchases on account terms of 2/15, n/30

**All credit sales have terms of 2/20, n/30

June Month-end Adjustments: ( A ) AC Speed has earned one month of the prepaid rent received from their tenant at the beginning of June. ( B ) The Company took a physical count of Office Supplies on June 30 and found the following to be on hand: Office Supplies -$2500 ( C ) AC Speed estimates bad debt expense on a monthly basis rather than waiting until year-end. The company uses the allowance method. Based on recent industry estimates, AC Speed estimates that the allowance account should be 2% of accounts receivable. ( D ) The Company took a physical inventory count on June 30 and found the following inventory on hand: Merchandise Inventory -$120000 ( E ) The Balance in the prepaid insurance account at the beginning of June represents 4 months of coverage. Record the amount of insurance for June. ( F ) Depreciation on the company's fixed assets for the month of June is as follows: 1. The furniture and equipment for the warehouse was purchased a few years ago for10000. These assets have a 4-year life, an expected salvage value of 1000 and are depreciated using the straight-line method. 2. The furniture and equipment for the office was purchased last year for8500. these assets have a 7 year life, an expected salvage value of 1500 and are depreicated using stright-line method.

User Name Computer Name Open Time Close Time Andrew ANDREW-PC ### ### tbergsma LTFACDDTBERGSMA ### ### Tim PCTIMBASEMENT ### ### Tim PCTIMBASEMENT ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### Tim PCTIMBASEMENT ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### tbergsma LTFACDDTBERGSMA ### ### ### ### ### ### Open WB Name C:\\Users\\Andrew\\AppData\\Local\\Temp\\ACCT202ProjectSolutionNEW-2.xlsm D:\\Users\\tbergsma\\Downloads\\ACCT202ProjectSolutionNEW-2 Combined.xlsm C:\\Users\\Tim\\Dropbox\\ACCT202 PS W14\\ACCT202ProjectSolutionNEW-2 Combined_Rev1.xlsm C:\\Users\\Tim\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm C:\\Users\\Tim\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\OneDrive\\Documents\\DU Teaching\\ACCT202PS\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solutio d:\\Users\\tbergsma\\OneDrive\\Documents\\DU Teaching\\ACCT202PS\\ACCT202 PS F14\\ACCT202_PracticeSet_F14_Solution d:\\Users\\tbergsma\\OneDrive\\Documents\\DU Teaching\\ACCT202PS\\ACCT202 PS F14\\ACCT202_PracticeSet_F14_Solution https://d.docs.live.net/213637fca0d9e955/Documents/DU Teaching/ACCT202PS/ACCT202 PS F14/ACCT202_PracticeSet_F D:\\Users\\tbergsma\\OneDrive\\Documents\\DU Teaching\\ACCT202PS\\ACCT202 PS F14\\ACCT202_PracticeSet_F14_StudentF d:\\Users\\tbergsma\\OneDrive\\Documents\\DU Teaching\\ACCT202PS\\ACCT202 PS F14\\ACCT202_PracticeSet_F14_StudentF Close WB Name C:\\Users\\Andrew\\Desktop\\ACCT202ProjectSolutionNEW-2 Combined.xlsm D:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202ProjectSolutionNEW-2 Combined_Rev1.xlsm C:\\Users\\Tim\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm d:\\Users\\tbergsma\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm C:\\Users\\Tim\\Dropbox\\ACCT202 PS W14\\ACCT202_PracticeSet_W14_Solution.xlsm https://d.docs.live.net/213637fca0d9e955/Documents/DU Teaching/ACCT202PS/ACCT202 PS F14/ACCT202_PracticeSet_F d:\\Users\\tbergsma\\OneDrive\\Documents\\DU Teaching\\ACCT202PS\\ACCT202 PS F14\\ACCT202_PracticeSet_F14_Solution https://d.docs.live.net/213637fca0d9e955/Documents/DU Teaching/ACCT202PS/ACCT202 PS F14/ACCT202_PracticeSet_F https://d.docs.live.net/213637fca0d9e955/Documents/DU Teaching/ACCT202PS/ACCT202 PS F14/ACCT202_PracticeSet_F D:\\Users\\tbergsma\\OneDrive\\Documents\\DU Teaching\\ACCT202PS\\ACCT202 PS F14\\ACCT202_PracticeSet_F14_StudentF D:\\Users\\tbergsma\\OneDrive\\Documents\\DU Teaching\\ACCT202PS\\W16\\ACCT202_PracticeSet_W16_StudentFile_DU.xls /Users/kyleecarlson/Documents/ACCT 202/AC SPEED PROJECT.xlsm /Users/kyleecarlson/Documents/ACCT 202/AC SPEED PROJECT.xlsm /Users/kyleecarlson/Documents/ACCT 202/AC SPEED PROJECT.xlsm /Users/kyleecarlson/Documents/ACCT 202/AC SPEED PROJECT.xlsm /Users/kyleecarlson/Documents/ACCT 202/AC SPEED PROJECT.xlsm /Users/kyleecarlson/Documents/ACCT 202/AC SPEED PROJECT.xlsm /Users/kyleecarlson/Documents/ACCT 202/AC SPEED PROJECT.xlsm _Solution.xlsm _StudentFile_DU.xlsm _StudentFile_DU.xlsm Go To: Instructions Go To: Academic Integrity Go To: Sales Journal Go To: Purchases Journal Go To: General Ledger Go To: A/R Sub-Ledger Go To: A/P Sub-Ledger Go To: Products Go To: Cash Receipts Journal Student Name: CRN: Professor: Go To: Cash Payments Journal Go To: Chart of Accounts - GL Go To: General Journal Pg 1 Go To: Worksheet Go To: Chart of Accounts - AR Go To: General Journal Pg 2 Go To: Chart of Accounts - AP Go To: General Journal Pg 3 Go To: Inventory Control Card Davenport University ACCT202 Practice Set Winter: 2016 Student File Company Background & Scenario The AC Speed Company is a well-established, publicly-held corporation, operating as a wholesaler in the auto parts industry. Specifically, AC Speed purchases auto parts from manufacturers and sells them to large business customers. Most purchases and sales are on account, with trade credit terms (specified below). You're a Davenport University student pursuing a bachelor's degree in business and employed at the AC Speed Company this semester as an intern. You've worked in various departments and on several projects so far, learning a lot about the company's business operations. Management seems impressed with your enthusiasm and the quality of your work. The company's accountant has just been called away for a family emergency and will likely be absent for a month or so. The General Manager asks you to take over the accountant's regular duties on an interim basis. You're nervous about doing so, but are confident that what you've learned in accounting class, plus your personal problem-solving skills, will make this a successful experience. What a great learning opportunity, not to mention an enhancement to your resume! Project Overview & Instructions A. Overview a. Part 1 is a financial accounting activity that requires you to record various business transactions during the month, close the accounting records at the end of the month, and prepare the financial statements. These tasks relate to the steps in the accounting cycle that you learned in your first accounting course.` b. Part 2 is an activity that requires you to analyze the company's year-end financial statements to assist management in assessing the company's position and making decisions about its future direction. c. This is an individual, not a team, project. While you may discuss this project with others, you must prepare and submit your own work. Refer to the academic integrity statement in the project workbook. d. Before starting work, review the entire project: all instructions, business transactions descriptions, workbook sections, check figures, due dates, and submission requirements. B. General Instructions a. The parts of this project, including specific business transactions and steps in the accounting cycle, must be completed in sequence. This is particularly important with business transactions relating to purchases and sales of inventory. b. You are encouraged to use your textbook's table of contents (front) or index (back) to locate helpful references. c. These project instructions will not address every detail of every task. If you have questions, ask your instructor. d. Most of your work for this project will be accomplished in Excel. A basic skill level in this application is expected. That is, you should be able to such things as move around in a workbook, enter data in cells, use the sum function, compose basic formulas, and save your work. e. If rounding is required, round to the nearest cent. For example, $96.835 would be entered as $96.84. f. Use the check figures provided to check your work as you progress through the project. Investigate any discrepancies and correct them as you go along. g. Refer to the project rubric to determine how components of the project will be assessed. h. Appearance counts! Pay attention to the format, to spelling, and to other details of appearance. This reflects on management's perception of you as a professional. C. Submission Requirements a. Final submission of all parts of this project must be in electronic (not paper) form. That is, you will submit your completed work via an assignment link in a Blackboard course site or via an email attachment. Follow your instructor's directions. b. Save backup copies of your work. If you have multiple versions of the project, clearly label them for your own reference and to ensure that you submit the appropriate version to your instructor. c. You must read the academic integrity statement in the project workbook and enter your student ID number on the form to signify your agreement with and adherence to that statement. Final project submissions will not be accepted without this. d. Due dates for the parts of this project will be provided by your instructor in the course syllabus, in the Blackboard course site, or in a designated handout. Be sure to enter these on your personal calendar and plan your work on this project accordingly. D. Credit TermsAC & Speed Inventory Accounting a. When purchases merchandise from a supplier or vendor on account, they receive credit terms of 2/15, net 30. b. When AC Speed sells merchandise to a customer on account, they offer that customer credit terms of 2/20, net 30 c. AC Speed accounts for the specific types of merchandise in their inventory with a set of subsidiary ledgers (inventory control cards). The balances in these subsidiary ledger records, in total, must equal the balance in the Merchandise account in the general ledger. d. AC Speed uses Inventory a perpetual inventory accounting system and a last-in, first-out (LIFO) inventory costing method. E. Financial Accounting Steps: a. Record each business transaction, in sequence by date, in the appropriate special journal or the general journal. Also, immediately record any transaction involving inventory, a customer, or a vendor in the appropriate subsidiary ledger record. b. At the end of the month, post each entry in the general journal to the general ledger. c. At the end of the month, total each column in each special journal and post that total to the general ledger. EXCEPT for entries in the \"Other\" columns, which must be posted individually to the general ledger. d. When posting is completed, bring the balance in each general ledger account up to date. e. When posting is completed, bring the balance in each subsidiary ledger account up to date. f. At this point in the closing process, the balances of all subsidiary ledger accounts would be totaled and that total compared to the balance of the corresponding control account in the general ledger. That is, the total of inventory control cards would be compared to the Merchandise Inventory balance; the customer subsidiary ledger total to the Accounts Receivable balance; and the vendor subsidiary ledger total to the Accounts Payable balance. Any discrepancies would be investigated and corrected. Given the limited scope of this project scenario, reconciliation between subsidiary ledgers and control accounts is not possible. g. List all general ledger account balances in the unadjusted trial balance columns of the worksheet. Use the sum function in Excel to total the debit and credit columns. These totals should be equal. h. Prepare the end-of-month adjusting entries. Record these entries in the general journal and post them to the general ledger. Also record the adjusting entries in the designated columns in the worksheet and total the debit and credit columns. These totals should be equal. i. Update general ledger account balances after posting adjusting journal entries. j. Complete the unadjusted trial balance columns on the worksheet. Use Excel formulas to carry balances from the unadjusted trial balance columns, adjusting as necessary by entries in the adjustments columns. Check your results against the balances recorded in the general ledger. k. Sort the dollars recorded in the adjusted trial balance columns into either the income statement or the balance sheet columns. Total these columns. The entry of net income should cause the debit and credit columns to equal one another. l. Use the income statement information on the worksheet to prepare a multi-step income statement in good form. Look at examples of this income statement format in your textbook. m. Prepare a statement of retained earnings in good form. Look at examples of this statement in your textbook. Remember that net income from your just-completed income statement is a necessary component of this statement. n. Use the balance sheet information on the worksheet to prepare a classified balance sheet. Remember that the ending retained earnings balance from the just-completed statement is a necessary component of the equity section of the balance sheet. o. Prepare the end-of-month closing entries. Record these entries in the general journal and post them to the general ledger. Update balances in the general ledger accounts. p. List the general ledger accounts that have balances other than zero on the post-closing trial balance. The totals of the debit column and the credit column should be equal. F. Part 2 of this project requires you to analyze the company's year-end financial statements to assist the management of AC Speed in assessing the company's financial position and making decisions about its future direction. a. Before beginning this part of the project, you will find it helpful to review Chapter 17 on financial statement analysis. Page 707, a summary of ratios, will be particularly useful. b. Tabs in the project workbook provide trial balance data for the current and two preceding years for AC Speed and a location to calculation a selection of ratios. Use the trial balance data and the formulas in Chapter 17 to compute the ratios listed for each of the three years. YOU MUST STRUCTURE YOUR RATIO CALCULATIONS AS FORMULAS AND LINKS TO APPROPRIATE CELLS ON THE TRIAL BALANCE TAB. You will lose points by simply typing the final ratio numbers or percentages. c. After you calculate the ratios, consider whether there is a trend over the three-year period. Also compare the ratios you calculated for AC Speed with those listed as industry averages. Review the information in Chapter 17 to help you determine what the ratios are telling you about various aspects of AC Speed's business operations. d. Use Word to prepare a memo (minimum 500 words) to AC Speed's general manager, addressing the three questions listed at the bottom of the ratios tab. This should be formatted as a business memo, not an APA paper. Be sure to include a brief introduction and conclusion in the memo. Each question should be addressed in one or two paragraphs in the body of the memo. Remember that the general manager will expect details/facts/ratios to support statements you may make about the status of the business. Your writing should be concise, clear, and readable, with a fairly formal tone (since it's addressed to AC Speed's general manager, who is likely to share it with other members of management). Your instructor will provide the due date and submission requirements for this part of the project. Project Academic Integrity Statement I understand that this is an individual, not a team, project; that I am expected to do my own work on the project. I may discuss project requirements in general terms with others, but I am not permitted to collaborate with anyone or copy anyone's work, manually or electronically, in full or in part. I also understand that I am not permitted to supply anyone with the results of my work or to provide them with any assistance that compromises another student's completion of the project through his or her own efforts. If I have any questions about these requirements, I will promptly ask my instructor for clarification I understand that any violation of this project academic integrity statement will lead, at minimum, to a failing grade for the project. By entering my name and student ID number below, I am attesting that I have read, understood, and will personally adhere to this project's academic integrity statement. Student Name: Student ID Number: Date: Main Menu JUNE JOURNAL TRANSACTIONS June 1 June 1 June 1 June 1 June 2 June 2 June 2 June 3 June 4 June 4 June 5 June 7 June 8 June 11 June 11 June 12 June 13 June 13 June 15 June 15 June 16 June 17 June 17 June 18 June 20 June 20 June 22 June 23 June 23 June 24 June 25 June 26 June 27 June 27 June 28 June 29 June 29 June 29 June 30 June 30 *All purchases on account terms of 2/15, n/30 **All credit sales have terms of 2/20, n/30 June Month-end Adjustments: (A) (B) (C) (D) (E) (F) Main Menu UNE JOURNAL TRANSACTIONS Signed a 3 year 7.1% , $210000 note payable with First Bank. Purchased 3100 GPS units on credit from Navistar for $35.5 per unit. Issued 5,000 shares of common stock for $10 per share (Refer to General ledger for description of common stock). Sold 1983 DVD players on account to Toyota for $75 per unit, Invoice #5555 Sold 3400 GPS units on account to Kia for $58 per unit, Invoice #5556. Purchased office supplies from Office Max on credit for $1150 Sold 975 docking stations for $66 per unit and 1925 GPS units for $82 per unit on account to Nissan, Invoice #5557. The Board of Directors declared a cash dividend of $5 per share for shareholders of record on June 5th, payable on June 12th. Received payment from Toyota for May 11th sale. Rented part of the warehouse to a new tenant and received $5400 for three months rent starting in June Paid $2,100 to Michigan Utility Co. for utilities bill that was recorded in May as an Account Payable, Check #5278. Received and paid expense reports for travel and entertainment totaling $900 , Check #5279. Paid for office supplies purchased on June 2nd, Check #5280. Paid in full for the June 1 purchase from Navistar, Check #5281. Received a bill from the law firm of Larry, Moe & Curly for $5400 , payable upon receipt, for bond consulting fees, Check #5282. Paid the dividend that was declared on June 3, Check #5283. Took advantage of a special deal to purchase 3250 DVD players on account from JVC for $48 per unit. Purchased 850 GPS units on credit from Magellan for $33 per unit. Sold 2000 DVD players on credit to Ford Motor Co. for $89 per unit, Invoice 5558. Check # 5284 was issued for payroll: $14500 for salaried and $4750 for wages (wage expense) Purchased 1800 docking stations on credit from Samsung for $42 per unit. Issued a credit to Kia for the return of 350 defective units from the June 2nd sale. These units has a cost basis of $36 per unit. Returned the 350 defective units received from Kia to Navistar. Received payment in full from Toyota for the June 1st sale. While inspecting the June 13th purchase, it was discovered that the GPS units were programmed for South America instead of North America. AC Speed returned the entire order to Magellan. A bankruptcy judge disallowed AC Speed's claim for $5,000 due from General Motors. Management Decided to write off this accounts receivable. Sold 1650 docking stations on credit to Kia for 64.5 per unit, Invoice #5559. Paid $75000 of the $162500 owed to JVC from May 25, Check #5285. Received payment from Ford Motor Co. for $175000 of the $300000 owed from May 5. Purchased a $100 international phone card for one of the sales representative's upcoming European business trip, Check #5286. Paid in full for the purchase from JVC on June 13, Check #5287 Purchased 1250 docking station from Samsung for $41 per unit paying in cash, Check #5288 Sold 1500 docking stations on credit to Honda for $61 per unit, Invoice 5560. Hired and paid a consultant $75000 to devise a marketing plan. AC Speed's management felt this was necessary to develop brand awareness. Check #5289. AC Speed is behind in its mortgage payments to Bank of America. Paid a total of $10000 ( $2000 principal and $8000 interest), Check #5290. Received payment in full from Honda for the June 27th transaction. Paid in full for the purchase from Magellan on May 31st, Check #5291. Check # 5292 was issued for payroll: $14500 for salaried and $4750 for wages (wage expense) Paid the first month's principal payment of $15,000 on the note payable. In addition, paid one month's interest, Check #5293 Issued bonds payable at face value for $450,000 ll purchases on account terms of 2/15, n/30 All credit sales have terms of 2/20, n/30 ne Month-end Adjustments: AC Speed has earned one month of the prepaid rent received from their tenant at the beginning of June. The Company took a physical count of Office Supplies on June 30 and found the following to be on hand: Office Supplies - $2500 AC Speed estimates bad debt expense on a monthly basis rather than waiting until year-end. The company uses the allowance method. Based on recent industry estimates, AC Speed estimates that the allowance account should be 2% of accounts receivable. The Company took a physical inventory count on June 30 and found the following inventory on hand: Merchandise Inventory - $120000 The Balance in the prepaid insurance account at the beginning of June represents 4 months of coverage. Record the amount of insurance for June. Depreciation on the company's fixed assets for the month of June is as follows: 1. The furniture and equipment for the warehouse was purchased a few years ago for 10000. These assets have a 4-year life, an expected salvage value of 1000 and are depreciated using the straight-line method. 2. The furniture and equipment for the office was purchased last year for 8500. these assets have a 7 year life, an expected salvage value of 1500 and are depreicated using stright-line method. Product Name GPS DVD Player Docking Station Description In vehicle GPS unit In vehicle DVD player Cell phone / Mobile Communications Docking Station AC Speed Corporation Chart of Accounts - General Ledger BALANCE SHEET ACCOUNTS Assets Current Assets Acct # Account Name 100 Cash 102 Accounts Receivable 103 Allowance for Doubtful Accounts 104 Merchandise Inventory 105 Office Supplies 106 Prepaid Insurance Property, Plant and Equipment 140 Land 145 Building 146 Accumulated Depreciation - Building 151 Equipment & Furniture - Warehouse 152 Accumulated Depreciation - Equip & Furn. - Warehouse 153 Equipment & Furniture - Office 154 Accumulated Depreciation - Equip & Furn. - Office Liabilities Current Liabilities 201 Accounts Payable 202 Wages Payable 203 Interest Payable 204 Dividends Payable 205 Unearned Rent Long-Term Liabilities 250 Notes Payable 251 Bonds Payable 252 Mortgage (Warehouse) Payable Capital (Equity) 300 Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding 301 Paid In Capital - Excess of Par 330 Retained Earnings 340 Treasury Stock INCOME STATEMENT ACCOUNTS Revenue 500 Sales 510 Sales Discounts 511 Sales Returns & Allowances Cost of Goods Sold 600 Cost of Goods Sold Operating Expenses 700 Wage Expense (hourly workers) 701 Salaries Expense (Exempt Staff) 702 Marketing Expense 703 Travel and Entertainment Expense 704 Bad Debt Expense 705 Property Tax Expense 706 Office Maintenance & Repair Expense 707 Legal Expenses 708 Insurance Expense 709 Utilities Expense 710 Office Supplies Expense 711 Telecommunications Expense 712 Depreciation Expense - Equip & Furniture - Warehouse 713 Depreciation Expense - Equip & Furniture - Office Other Income 800 Rent Income Other Expenses 900 Interest Expense Other 1000 Income Summary AC Speed Corporation Chart of Accounts - Accounts Receivable Ledger Account Name General Motors Ford Motor Co. Toyota Honda Kia Nissan AC Speed Corporation Chart of Accounts - Accounts Payable Ledger Account Name Garmin JVC Magellan Michigan Utility Company Motorola Navistar Office Max Samsung AC Speed Corporation Sales Journal Date Invoice No. 1-Jun 5555 Toyota $ 148,725.00 $ 128,895.00 2-Jun 5556 kia $ 197,200.00 $ 122,400.00 2-Jun 5557 nissan $ 222,200.00 $ 106,375.00 15-Jun 5558 ford $ 178,000.00 $ 94,080.00 22-Jun 5559 kia $ 106,425.00 $ 69,300.00 27-Jun 5560 honda $ 91,500.00 $ 61,550.00 $ 944,050.00 $ 582,600.00 A/R Account Debited Post Ref A/R - DR Sales - CR CGS - DR Inv - CR AC Speed Corporation Purchases Journal Date Creditors Account Credited Other Account - Debited Post Ref A/P - CR Inventory - DR 1-Jun navistar $ 110,050.00 $ 110,050.00 2-Jun office max $ 1,150.00 Office Supplies DR Other - DR ### 13-Jun jvc $ 156,000.00 $ 156,000.00 13-Jun magellan $ 28,050.00 $ 28,050.00 16-Jun samsung $ 75,600.00 $ 75,600.00 17-Jun navistar $ (12,425.00) ### 20-Jun magellan $ (28,050.00) ### $ 369,700.00 AC Speed Corporation Cash Receipts Journal Date Acct - CR Customer Acct Other Acct Post Ref Sales - CR A/R - CR Other - CR Sale Discount DR Cash - DR 1-Jun common stock $ 50,000.00 $ 50,000.00 1-Jun firast bank $ 210,000.00 $ 210,000.00 $ 185,000.00 $ 5,400.00 2,974.50 $ 145,750.50 $ 175,000.00 1,830.00 $ 89,670.00 $ 450,000.00 4-Jun toyota $ 185,000.00 4-Jun new tenant $ 18-Jun toyota $ 148,725.00 23-Jun ford $ 15,000.00 29-Jun honda $ 91,500.00 30-Jun bonds payable 5,400.00 $ $ $ 450,000.00 $ 1,310,820.50 CGS - DR - CR Inv AC Speed Corporation Cash Payments Journal Date Check # Payee 5-Jun 5278 mi utility 7-Jun 5279 exp report 8-Jun 5280 11-Jun Account Debited Post Ref Cash - CR $ 2,100.00 $ 900.00 office max $ 1,150.00 5281 navistar $ 110,050.00 11-Jun 5282 larry moe curley 12-Jun 5283 shareholders 15-Jun 5284 payroll 703 707 700 Inventory - CR Other - DR $ $ 5,400.00 $ 50,000.00 $ 50,000.00 $ 19,250.00 $ 4,750.00 $ 14,500.00 701 23-Jun 5285 jvc 24-Jun 5286 phone 25-Jun 5287 jvc $ 156,000.00 26-Jun 5288 samsung $ 51,250.00 $ 27-Jun 5289 consultant 702 $ 75,000.00 $ 75,000.00 28-Jun 5290 bank of america 252 $ 10,000.00 $ 2,000.00 $ 8,000.00 711 $ 100.00 900 29-Jun 5291 magellan 29-Jun 5292 payroll 700 $ 30,000.00 $ 19,250.00 701 30-Jun 5293 first bank 250 $ 16,242.50 900 $ 621,692.50 2,100.00 $ 150.00 $ 110,050.00 5,400.00 75,000.00 $ 900.00 $ $ A/P - DR $ $ 75,000.00 100.00 $ 156,000.00 51,250.00 $ $ 4,750.00 $ 14,500.00 $ 15,000.00 $ 1,242.50 30,000.00 AC Speed Corporation General Journal Date 1-Jun Cash Note payable Accounts Post Ref $ DEBIT 210,000.00 1-Jun inventory accounts payable $ 110,050.00 1-Jun cash common stock $ 50,000.00 1-Jun accounts receivable sales revenue $ 148,725.00 2-Jun accounts receivable sales revenue $ 197,200.00 2-Jun office supplies accounts payable $ 1,150.00 2-Jun accounts receivable sales revenue $ 222,200.00 3-Jun retained earning / cash dividend cash divident payable $ 25,000.00 4-Jun cash rent revenue $ 5,400.00 5-Jun accounts payable cash $ 2,100.00 7-Jun traveling and entertainment expense cash $ 900.00 8-Jun accounts payable cash $ 1,150.00 11-Jun accounts payable cash $ 110,050.00 11-Jun consulting fee cash $ 5,400.00 12-Jun cash divident payable cash $ 25,000.00 13-Jun merchandise inventory accounts payable $ 156,000.00 13-Jun merchandise inventory accounts payable $ 28,050.00 15-Jun accounts payable sales revenue $ 178,000.00 15-Jun Salaries expense wages expense cash $ 16-Jun merchandise inventory accounts payable $ 75,600.00 17-Jun sales revenue accounts receivable $ 20,300.00 merchandise inventory cost of goods sold $ 12,600.00 17-Jun accounts payable merchandise inventory $ 12,600.00 18-Jun accounts receivable sales revenue $ 148,725.00 20-Jun bad debts expense / allowance for doubtful accounts receivable $ 5,000.00 22-Jun accounts receivable sales revenue $ 106,425.00 23-Jun accounts payable cash $ 75,000.00 23-Jun cash accounts receivable $ 175,000.00 24-Jun traeling and business promotion expense cash $ 100.00 25-Jun accounts payable cash $ 156,000.00 26-Jun merchandise inventory cash $ 51,520.00 27-Jun accounts receivable sales revenue $ 91,500.00 27-Jun consulting fee cash $ 75,000.00 28-Jun note payable interest expense cash $ $ 2,000.00 8,000.00 29-Jun cash accounts receivable $ 89,670.00 29-Jun accounts payable cash $ 30,000.00 29-Jun salaries expense wages expense cash $ $ 14,500.00 4,750.00 30-Jun interest payable notes payable cash $ $ 15,000.00 1,242.50 30-Jun bond payable cash $ 450,000.00 CREDIT $ 210,000.00 $ 110,050.00 $ 50,000.00 $ 148,725.00 $ 197,200.00 $ 1,150.00 $ 222,200.00 $ 25,000.00 $ 5,400.00 $ 2,100.00 $ 900.00 $ 1,150.00 $ 110,050.00 $ 5,400.00 $ 25,000.00 $ 156,000.00 $ 28,050.00 $ 178,000.00 $ $ 4,750.00 19,250.00 $ 75,600.00 $ 20,300.00 $ 12,600.00 $ 12,600.00 $ 148,725.00 14,500.00 $ 5,000.00 $ 106,425.00 $ 75,000.00 $ 175,000.00 $ 100.00 $ 156,000.00 $ 51,520.00 $ 91,500.00 $ 75,000.00 $ 10,000.00 $ 89,670.00 $ 30,000.00 $ 19,250.00 $ 16,242.50 $ 450,000.00 AC Speed Corporation General Journal Date Accounts Post Ref DEBIT CREDIT AC Speed Corporation General Journal Date Accounts Post Ref DEBIT CREDIT Account: Cash Transaction Date 31-May Balance Item Post Ref DEBIT CREDIT Account: Accounts Receivable Transaction Date 31-May Balance Item Post Ref DEBIT CREDIT Account: Allowance for Doubtful Accounts Transaction Date 31-May Balance Item Post Ref DEBIT CREDIT Account No. Account Balance DEBIT $ 75,000.00 Account No. Account Balance DEBIT $ 490,000.0 Account No. Account Balance DEBIT Account: Merchandise Inventory Transaction Date 31-May Balance Item Post Ref DEBIT CREDIT Account: Office Supplies Transaction Date 31-May Balance Item Post Ref DEBIT CREDIT Account: Prepaid Insurance Transaction Date 31-May Item Post Ref DEBIT CREDIT Account No. Account Balance DEBIT $ 334,000.00 Account No. Account Balance DEBIT $ 2,000.00 Account No. Account Balance DEBIT $ 14,000.00 Account: Land Transaction Date Item 1-Jun Balance Carried Forward Post Ref $ DEBIT 2,000,600.00 CREDIT Account: Building Transaction Date Item 1-Jun Balance Carried Forward Post Ref $ DEBIT 1,500,000.00 CREDIT Account: Accumulated Depreciation - Building Transaction Date Item 31-May Balance Carried Forward Post Ref DEBIT $ CREDIT 1,500,000.00 Account: Equipment & Furniture - Warehouse Transaction Date 31-May Balance Item Post Ref DEBIT CREDIT Account No. Account Balance DEBIT $ 2,000,600.00 Account No. Account Balance DEBIT $ 1,500,000.00 Account No. Account Balance DEBIT Account No. Account Balance DEBIT $ 10,000.00 Account: Accumulated Depreciation - Equip & Furn. - Warehouse Transaction Date Item Post Ref DEBIT CREDIT 31-May Balance Account No. Account Balance DEBIT Account: Equipment & Furniture - Office Transaction Date 31-May Balance Item Post Ref DEBIT CREDIT Account: Accumulated Depreciation - Equip & Furn. - Office CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT Transaction Date 31-May Balance Item Post Ref DEBIT Account: Accounts Payable Transaction Date 31-May Balance Item Post Ref DEBIT Account No. Account Balance DEBIT $ 8,500.00 Account: Wages Payable CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT Transaction Date Item Post Ref DEBIT Account: Interest Payable Transaction Date Item Post Ref DEBIT Account: Dividends Payable Transaction Date Item Post Ref DEBIT Account: Unearned Rent CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT Transaction Date Item Post Ref DEBIT Account: Notes Payable Transaction Date 1-Jun Item Post Ref DEBIT $ - Account: Bonds Payable Account No. Account Balance DEBIT Transaction Date 1-Jun Item Post Ref DEBIT CREDIT $ - Account: Mortgage (Warehouse) Payable Account No. Account Balance DEBIT Transaction Date 1-Jun Item Post Ref DEBIT CREDIT 0 Account: Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding Transaction Date 31-May Balance Item Post Ref DEBIT CREDIT Account No. Account Balance DEBIT Account: Paid In Capital - Excess of Par CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT Transaction Date 31-May Item Post Ref DEBIT Account: Retained Earnings Transaction Date Item 31-May Balance Brought Forward Post Ref DEBIT Account: Treasury Stock Transaction Date Item Post Ref DEBIT Account: Sales CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT Transaction Date Item Post Ref DEBIT Account: Sales Discounts Transaction Date Item Post Ref DEBIT Account: Sales Returns & Allowances Transaction Date Item Post Ref DEBIT Account: Cost of Goods Sold CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT Transaction Date Item Post Ref DEBIT Account: Wage Expense (hourly workers) Transaction Date Item Post Ref DEBIT Account: Salaries Expense (Exempt Staff) Transaction Date Item Post Ref DEBIT Account: Marketing Expense CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT Transaction Date Item Post Ref DEBIT Account: Travel and Entertainment Expense Transaction Date Item Post Ref DEBIT Account: Bad Debt Expense Transaction Date Item Post Ref DEBIT Account: Property Tax Expense CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT Transaction Date Item Post Ref DEBIT Account: Office Maintenance & Repair Expense Transaction Date Item Post Ref DEBIT Account: Legal Expenses Transaction Date Item Post Ref DEBIT Account: Insurance Expense CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT Transaction Date Item Post Ref DEBIT Account: Utilities Expense Transaction Date Item Post Ref DEBIT Account: Office Supplies Expense Transaction Date Item Post Ref DEBIT Account: Telecommunications Expense CREDIT Account No. Account Balance DEBIT Account: Depreciation Expense - Equip & Furniture - Warehouse Transaction Date Item Post Ref DEBIT CREDIT Account No. Account Balance DEBIT Account: Depreciation Expense - Equip & Furniture - Office Account No. Account Balance DEBIT Transaction Date Item Post Ref DEBIT Transaction Date Item Post Ref DEBIT CREDIT Account: Rent Income CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT CREDIT Account No. Account Balance DEBIT Transaction Date Item Post Ref DEBIT Account: Interest Expense Transaction Date Item Post Ref DEBIT Account: Income Summary Transaction Date Item Post Ref DEBIT 100 Account Balance CREDIT 102 Account Balance 4 103 Account Balance CREDIT $ 15,000.00 104 Account Balance CREDIT 105 Account Balance CREDIT 106 Account Balance CREDIT 140 Account Balance CREDIT 145 Account Balance CREDIT 146 Account Balance CREDIT $ 1,500,000.00 151 Account Balance CREDIT 152 Account Balance CREDIT $ 1,900.00 153 Account Balance CREDIT 154 Account Balance CREDIT $ 1,600.00 201 Account Balance CREDIT $ 948,600.00 202 Account Balance CREDIT 203 Account Balance CREDIT 204 Account Balance CREDIT 205 Account Balance CREDIT 250 Account Balance CREDIT $ - 251 Account Balance CREDIT $ - 252 Account Balance CREDIT $ 200,000.00 300 Account Balance CREDIT $ 60,000.00 301 Account Balance CREDIT $ 1,341,000.00 330 Account Balance CREDIT $ 366,000.00 340 Account Balance CREDIT 500 Account Balance CREDIT 510 Account Balance CREDIT 511 Account Balance CREDIT 600 Account Balance CREDIT 700 Account Balance CREDIT 701 Account Balance CREDIT 702 Account Balance CREDIT 703 Account Balance CREDIT 704 Account Balance CREDIT 705 Account Balance CREDIT 706 Account Balance CREDIT 707 Account Balance CREDIT 708 Account Balance CREDIT 709 Account Balance CREDIT 710 Account Balance CREDIT 711 Account Balance CREDIT 712 Account Balance CREDIT 713 Account Balance CREDIT 800 Account Balance CREDIT 900 Account Balance CREDIT 1000 Account Balance CREDIT Account: General Motors Transaction Date Post Ref 31-May 20-Jun 20-Jun Account: DEBIT CREDIT $ $ $ 5,000.00 $ Ford Motor Co. Transaction Date Post Ref 5-May $ 15-Jun $ 28-Jun Account: Account Balance DEBIT CREDIT 5,000.00 5,000.00 - DEBIT 300,000.00 178,000.00 CREDIT $ $ $ 175,000.00 $ Account Balance DEBIT CREDIT 300,000.00 478,000.00 303,000.00 Toyota Transaction Date Post Ref 11-May $ 1-Jun $ 4-Jun 18-Jun DEBIT 185,000.00 148,725.00 CREDIT $ $ $ $ 185,000.00 $ 148,725.00 $ Account Balance DEBIT CREDIT 185,000.00 333,725.00 148,725.00 - Account: Honda Transaction Date Post Ref 27-Jun $ 29-Jun Account: DEBIT 91,500.00 CREDIT $ $ 91,500.00 $ Kia Transaction Date Post Ref 2-Jun $ 17-Jun 22-Jun $ Account: Account Balance DEBIT CREDIT 91,500.00 - DEBIT 197,200.00 CREDIT $ 106,425.00 $ 20,300.00 $ $ Account Balance DEBIT CREDIT 197,200.00 176,900.00 187,525.00 Nissan Transaction Date Post Ref 2-Jun $ DEBIT 22,200.00 CREDIT $ Account Balance DEBIT CREDIT 222,200.00 Account: Garmin Transaction Date Post Ref 31-May Account: JVC Date Post Ref 31-May 13-Jun Account: Magellan Date Post Ref 31-May 13-Jun 20-Jun $ Account: DEBIT CREDIT Account No. Transaction Account Balance DEBIT CREDIT DEBIT CREDIT $ 162,500.00 $ 162,500.00 $ 156,000.00 $ 318,500.00 Account No. Transaction Account Balance DEBIT CREDIT DEBIT CREDIT $ 30,000.00 $ 28,050.00 $ 58,050.00 28,050.00 $ 30,000.00 Motorola Transaction Date Post Ref 31-May Account No. Account Balance DEBIT CREDIT $ 18,000.00 DEBIT CREDIT Account No. Account Balance DEBIT CREDIT $ 58,000 Account: Navistar Date Post Ref 31-May 1-Jun 17-Jun $ Account: Office Max Date Post Ref 2-Jun Account: Samsung Date Post Ref 16-Jun Account No. Transaction Account Balance DEBIT CREDIT DEBIT CREDIT $ 50,000.00 $ 110,050.00 $ 160,050.00 12,425.00 $ 147,625.00 Account No. Transaction Account Balance DEBIT CREDIT DEBIT CREDIT $ 1,150.00 $ 1,150.00 Account No. Transaction Account Balance DEBIT CREDIT DEBIT CREDIT $ 75,600.00 $ 75,600.00 Unadjusted Trial Balance Acct. No. Account Title Dr. Adjustments Cr. 100 Cash 494,497.00 102 Accounts Receivable 808,525.00 103 Allowance for Doubtful Accounts 104 Merchandise Inventory 105 Office Supplies 106 Prepaid Insurance 140 Land 2,000,600.00 145 Building 1,500,000.00 146 Accumulated Depreciation - Building 151 Equipment & Furniture - Warehouse 152 Accumulated Depreciation - Equip & Furn. - Warehouse 153 Equipment & Furniture - Office 154 Accumulated Depreciation - Equip & Furn. - Office 201 Accounts Payable 202 Wages Payable 203 Interest Payable 204 Dividends Payable 205 Unearned Rent 250 Notes Payable 195,000.00 251 Bonds Payable 450,000.00 252 Mortgage (Warehouse) Payable 198,000.00 300 Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding 301 Paid In Capital - Excess of Par 330 Retained Earnings 340 Treasury Stock 500 Sales 510 Sales Discounts 511 Sales Returns & Allowances 600 Cost of Goods Sold 700 Wage Expense (hourly workers) 9,500.00 701 Salaries Expense (Exempt Staff) 29,000.00 702 Marketing Expense 703 Travel and Entertainment Expense 704 Bad Debt Expense 705 Property Tax Expense 706 Office Maintenance & Repair Expense 707 Legal Expenses 708 Insurance Expense 709 utilities/ Consultation Expense 710 Office Supplies Expense 711 Telecommunications Expense 712 Depreciation Expense - Equip & Furniture - Warehouse 713 Depreciation Expense - Equip & Furniture - Office 800 Rent Income 900 Interest Expense Total Net Income (Loss) Total Total 10,000.00 143,030.00 3,150.00 14,000.00 1,500,000.00 10,000.00 1,900.00 8,500.00 1,600.00 904,500.00 5,400.00 65,000.00 1,386,000.00 41,000.00 944,050.00 4,755.50 20,300.00 565,949.00 900.00 80,400.00 100.00 9,243.00 5,702,449.50 5,702,450.00 Dr. Cr. Adjusted Trial Balance Dr. Cr. Income Statement Dr. Cr. Bal. Sheet Stmt. Own. Equity Dr. Cr. AC Speed Corporation Income Statement AC Speed Corporation Statement of Retained Earnings AC Speed Corporation Balance Sheet AC Speed Corporation Post-closing Trial Balance DEBIT CREDIT 0 Adjusted Trial Balance Acct. No. Account Title Dr. Cr. 100 Cash 299,000 102 Accounts Receivable 948,800 0 103 Allowance for Doubtful Accounts 0 16,800 104 Merchandise Inventory 601,856 0 105 Office Supplies 2,240 0 106 Prepaid Insurance 15,680 0 140 Land 2,000,600 0 145 Building 1,500,000 146 Accumulated Depreciation - Building 151 Equipment & Furniture - Warehouse 152 Accumulated Depreciation - Equip & Furn. - Warehouse 153 Equipment & Furniture - Office 9,520 0 154 Accumulated Depreciation - Equip & Furn. - Office 0 1,792 201 Accounts Payable 0 812,432 202 Wages Payable 0 0 203 Interest Payable 0 0 204 Dividends Payable 0 0 205 Unearned Rent 0 0 250 Notes Payable 0 0 251 Bonds Payable 0 0 252 Mortgage (Warehouse) Payable 0 124,000 300 Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding 0 65,000 301 Paid In Capital - Excess of Par 0 1,545,000 330 Retained Earnings 0 1,171,744 340 Treasury Stock 0 0 500 Sales 0 8,850,000 510 Sales Discounts 0 0 511 Sales Returns & Allowances 0 0 600 Cost of Goods Sold 7,656,000 0 700 Wage Expense (hourly workers) 120,000 0 701 Salaries Expense (Exempt Staff) 360,000 0 702 Marketing Expense 288,000 0 703 Travel and Entertainment Expense 27,600 0 704 Bad Debt Expense 0 0 705 Property Tax Expense 0 0 706 Office Maintenance & Repair Expense 6,000 0 707 Legal Expenses 198,600 0 708 Insurance Expense 24,000 0 709 Utilities Expense 12,000 0 710 Office Supplies Expense 3,480 0 711 Telecommunications Expense 660 0 712 Depreciation Expense - Equip & Furniture - Warehouse 1,980 0 713 Depreciation Expense - Equip & Furniture - Office 1,680 0 800 Rent Income 0 0 900 Interest Expense 0 0 14,088,896 14,088,896 Total 0 1,500,000 11,200 0 0 2,128 AC Speed Corporation Income Statement 12/31/2012 12/31/2011 12/31/2010 12/31/2009 5/31/2012 Common Dividends 19,200 16,130 15,000 1,600 Weighted Average Common Shares 65,000 65,000 65,000 62,500 Market Price per Common Share 35.00 34.00 31.00 34.00 AC Speed Corporation Balance Sheet 12/31/2012 12/31/2011 12/31/2010 12/31/2009 5/31/2012 12/31/2012 12/31/2011 12/31/2010 INDUSTRY Liquidity Current Ratio (One decimal place) 2.2 Acid Test Ratio (One decimal place) 1.6 Receivables Turnover (One decimal place) 10 Inventory Turnover (One decimal place) 9.5 Profitability Profit Margin (% with two decimal places) Asset Turnover (two decimal places) 3.5% 1.9 Return on Assets (% one decimal place) 10.5% Return on Common Shareholders' Equity (One decimal place) 18.3% Earnings per Share (EPS) (Two decimal places) 3.05 Price-Earnings (P/E ) Ratio (Two decimal places) 14.8 Payout Ratio (% One decimal place) 15.0% Solvency Ratios Debt to Total Assets Ratio (% One decimal place) 42.2% Shoe: GPS Beginning Inventory (BI) Date 1-Jun 1-Jun 2-Jun BI Units 3300 BI $/Unit BI $ $ 35.00 $ 115,500.00 Purchases Purch Units Purch $/Unit Sales Purch $ $ Sale Units (CGS) Sale $/Unit (CGS) Sale Units (CGS) Sale $/Unit (CGS) Sale Units (CGS) Sale $/Unit (CGS) - Ending Inventory (EI) Sale $ (CGS) $ - EI Units EI $/Unit EI $ $ 115,500.00 13-Jun 17-Jun 17-Jun 20-Jun 27-Jun Shoe: Date 1-Jun 1-Jun 13-Jun 15-Jun Shoe: Date 1-Jun 2-Jun 16-Jun 22-Jun 26-Jun 27-Jun 27-Jun DVD Player Beginning Inventory (BI) BI Units 2500 BI $/Unit BI $ $ 65.00 $ 162,500.00 Purchases Purch Units BI $/Unit $ 40.00 $ BI $ 56,000.00 Sales Purch $ $ Docking Station Beginning Inventory (BI) BI Units 1400 Purch $/Unit - Purchases Purch Units Purch $/Unit Ending Inventory (EI) Sale $ (CGS) $ - EI Units Sales Purch $ EI $/Unit EI $ $ 162,500.00 Ending Inventory (EI) Sale $ (CGS) $ - EI Units EI $/Unit $ EI $ 56,000.00