Phase one has been done i am struggling with Phase 2, 3 and 4. HELP ME PLEASE

The Replacement Accountant: Teaching Case for the Accounting Cycle (Fall 2016) INTRODUCTION Zippy Lines, Inc., based in Colorado, is a small corporation in its second year of operation. The company sells specialty outdoor sporting goods and equipment used by mountain climbers. The company sells its goods in its retail store and to outdoor adventure firms. Additionally, the company occasionally holds instructional classes for large groups. Kirk Krazen, the accountant for the company, was hurt in a climbing accident during early February 2014 and is expected to be out of the office until May. The company has hired you as a temporary replacement and requested that you prepare the monthly close for January, February and March. The company's fiscal year coincides with the calendar year, and you are required to prepare the financial statements for the first quarter. The monthly close process includes preparation of journal entries, the trial balance, adjusting entries and an adjusted trial balance. The quarterly financial statements should include a balance sheet, income statement, retained earnings statement and cash flow statement. The company's president, Al Venture, has provided you with access to all of the company's books and records and you have gathered the information that is discussed below. Overview of Accounts 1 - - - - - - - - Cash The company has one bank account in which all of its operating expenses are paid and all of its cash receipts are deposited. There were no outstanding checks or deposits in transit at the end of December. There was one outstanding check, number 1122, at the end of January and no deposits in transit. Accounts receivable The company maintains a subsidiary ledger for accounts receivable. The company's payment terms are net 30 days. The total balance outstanding on December 31, 2013 was $17,500. Customer balances are listed in the subsidiary ledger, Table 5, Part 1. The company bases its allowance for doubtful accounts on estimated default rates and is set at 1% of balances due within 30 days, 2% on balances due 30 to 60 days, 15% on balances due over 60 but less than 90 days, and 30% of balances due more than 90 days. The allowance for doubtful accounts was $1,500 as of December 31, 2013. The company visited Big Corporation on January 31st and held an instructional course for a team-building activity for Big Corporation. Zippy Lines charged $10,000 for the class, but has not been paid nor has the invoice been prepared or the revenue recorded. Inventory The company uses a periodic inventory system and applies a FIFO cost flow assumption. The company uses lower of cost or market to value its inventory. The inventory balance was $29,170 as of December 31, 2013. Table 4, Part 1 contains information on its inventory for January, which is based on a physical count. Supplies The balance on the ledger as of December 31, 2013 was $21,300. A physical count of supplies was performed as of January 31, 2014, and the balance is $12,250. Prepaid Assets The prepaid insurance balance of $12,000 at December 31, 2103 is for an annual property and liability policy with an annual cost of $24,000. The policy was purchased on July 1, 2013 and expires on June 30, 2014. The payment for health and all other benefits is $6,125 every two months. In January, the company issued the payment for January and February. There was no prepaid balance for the health insurance as of December 31, 2013. Property, Plant and Equipment, and Depreciation In January 2013, the company purchased its building and equipment and put these assets into operation. The company paid $617,500 for its building. The amounts paid for the equipment for its retail store and its office equipment were $178,000 and $25,000, respectively. 2 - - - The depreciation periods are 20 years for the building, 10 years for the store equipment and 5 years for office equipment. There is no salvage value for any of the property, plant and equipment assets. As of December 31, 2013, one year of depreciation has been accumulated for each of the categories of property, plant and equipment. Liabilities The accounts payable balance of $31,525 at December represents the balance owed to the company's primary inventory supplier. The accrued expense of $2,125 on December 31, 2013 represented unpaid consulting bills. The company paid the consultant $1,575 on January 14th and has an estimated balance of $3,250 open as of January 31, 2014. Employees earn $1,024 per day and have received payment through January 28th, so they are owed 3 days wages at the end of January. There was no salary accrued as of December 31, 2013. The company has a promissory note with TP Bank for $250,000 that is due on July 1, 2016. The note has an interest rate of 10%, which is payable on June 30th of each year. The interest payable of $12,500 at December 31, 2013 represents six months of accrued interest. Close for the month of January You have gathered the following additional information for January: - - - Table 1 is the post-closing trial balance as of December 31, 2013. - Mr. Krazen recorded all of the originating journal entries for the month of January, so the company's general ledger reflects the cash disbursement transactions and the cash receipts. Table 2, Part 1 is a list of all of the transactions recorded in the general ledger and posted in the accounts for January. The company's accounts receivable balances have been updated to reflect the cash received. The journal entries to the cash account and the accounts receivable has been made for the month of January. However, no adjusting entries have been prepared for January. Table 6, Part 1 is a trial balance listing all the accounts and balances as of January 31, 2014 taken from the general ledger. A copy of the company's bank statement for January is provided in Table 3, Part 1. As part of the closing process, you must adjust the ending inventory value and record cost of goods sold. A copy of the accounts receivable subsidiary ledger is provided in Table 5, Part 1. You are requested to prepare the aging schedule and allowance for doubtful accounts for January as part of the adjusting entry process. 3 Close for the month of February Kirk Krazen, the accountant for the company, is still injured and unable to work during February. For the month of February, you are asked to prepare all journal entries including all cash disbursement and cash receipt transactions. These journal entries must be recorded to the general ledger and posted to the accounts. The balances for accounts receivable and aging schedule must be updated. After all journal entries have been completed for the month, you will need to prepare a trial balance and then make the necessary adjusting entries. Table 2, Part 2 shows transactions for February. No entries have been recorded. Table 3, Part 2 shows bank balances for February. Below is information to be used to prepare adjusting entries for February. Unless otherwise specified, the items reviewed as the basis for adjusting entries in January remain as described for February. Below are the balances as of February 28, 2014: The supplies balance is $7,550. Inventory information is shown in Table 4, Part 2. FIFO cost flow assumption is used and inventory is valued at lower of cost or market. The employees were paid on February 28th and as of the end of February the employees were not owed any wages. The prepaid insurance balance is for an annual property and liability policy with an annual cost of $24,000, which was purchased on July 1, 2013 and expires on June 30, 2014. Close for the month of March and 1st Quarter Financial Statements Kirk Krazen still remains unable to work during March. For the month of March, you are asked to prepare all journal entries including all 4 cash disbursement and receipt transactions. These journal entries must be recorded to the general ledger and posted to the accounts. After all journal entries have been completed for the month, you will need to prepare a trial balance and make the necessary adjusting entries. Table 2, Part 3 shows transactions for March. No entries have been recorded. Provided in Table 3, Part 3 is a summary of the bank balance and transactions for March. Table 5, Part 3 shows the accounts receivable subsidiary ledger. Below is information to be used to prepare adjusting entries for March. Unless otherwise specified, the items reviewed as the basis for adjusting entries in January and February remain as described for March. As of March 31, 2014: The supplies count shows a balance of $3,500. Inventory balances are shown on Table 4, Part 3 and inventory is valued at lower of cost or market using FIFO. The employees were paid on March 28th and as of the end of March the employees were owed 3 days wages. A payment of $6,125 was made for health insurance in March for March and April. The prepaid insurance balance is for an annual property and liability policy with an annual cost of $36,000, which was purchased on July 1, 2013 and expires on June 30, 2014. The company purchased $50,000 in equipment for the store on March 31. The company paid $30,000 in cash and issued a 60 day note payable of $20,000. The equipment was put into service on April 1 and the company will begin depreciation in April. The note will begin accruing interest as of April 1. Required Phase I - Recording adjusting entries for January 5 1. Prepare the bank reconciliation and record the journal entry for the month of January. 2. Prepare a trial balance. 3. Using the information in Table 5, Part 1, prepare an aging schedule and calculate the allowance for doubtful accounts for January. 4. Calculate the ending inventory balance and cost of goods sold for January. 5. Prepare adjusting entries for January, including the allowance for doubtful accounts, inventory and cost of goods sold, depreciation, interest, depreciation, accrued expenses etc. 6. Prepare the adjusted trial balance for January. Phase II - Journal entries and adjusting entries for the month of February 1. Prepare all journal entries for February. 2. Prepare a trial balance. 3. Prepare the bank reconciliation, an aging schedule and allowance for doubtful accounts and necessary inventory adjustments. 4. Add adjusting entries to prepare the adjusted trial balance for February Phase III - Journal entries and adjusting entries for the month of March and 1st Quarter Financial Statements 1. Use information in Table 2, Part 3 and Table 3, Part 3 to record all journal entries for the month of March and prepare the bank reconciliations. 2. Prepare a trial balance for March. 3. Prepare all necessary adjusting entries to prepare the adjusted trial balances for March. 4. Prepare the financial statements for the first quarter of 2014 (income statement, statement of retained earnings, balance sheet and statement of cash flow (either direct or indirect basis). Phase IV. 6 Kirk Krazen is scheduled to begin work in the next week. Due to your successful performance during his absence, you have been asked to remain with the company. Since the company is beginning to grow rapidly, management of the company decides to implement an accounting system, QuickBooks. To be able to produce financial statements for the year, the information from the first quarter must be transferred to the accounting system. 1. Use the information from each phase and record all entries in Quickbooks. You may choose to maintain accounts receivable and inventory in the Excel files. 2. After confirming that the months of January through March are properly recorded, prepare the financial statements for the 1st quarter using QuickBooks. Compare those results to your results from Phase III. 7 Tables 1. December 31, 2013 Closing Adjusted Trial Balance 2. Transactions for January, February and March 3. Bank statements for January, February and March 4. Inventory for January, February and March 5. Accounts receivable for January, February and March 6. Trial balance for January (completed), February and March (uncompleted) 7. Uncompleted adjusted trial balance for January, February and March 8 Table 1 - Post-closing trial balance for December 2013 Account Number 1000001 1000002 1000003 1000004 1000005 1000006 1000007 1010001 1010002 1010003 1010004 1010005 1010006 2000001 2000002 2000003 2000004 2010001 3000001 3000002 3000003 3000004 4000001 5000001 5000002 5010001 5010002 Account Name Cash Accounts receivable Allowance for doubtful accounts Inventory Supplies Prepaid insurance Prepaid expense - other P,P & E -Store Equipment Accumulated depreciation - Store Equip. P,P & E -Office Equipment Accumulated depreciation - Office Equip. P,P & E - Building Accumulated depreciation - building Accounts payable Accrued expenses Salaries payable Interest payable Notes payable Common stock Capital in excess of par Retained earnings Dividends Sales Revenue Purchases Cost of goods sold Salary expense Benefits expense 31-Dec-13 DR CR $45,125 17,500 1,500 29,170 21,300 12,000 178,000 17,800 25,000 5,000 617,500 30,875 31,525 2,125 12,500 250,000 100,000 400,000 94,270 9 5010003 5010004 5010005 5010006 5010007 5010008 5010009 5010010 5010011 5010012 Supplies expense Insurance expense Utilities expense Travel expenses Advertising expenses Interest expense Bank fees Consulting expenses Depreciation expense Bad debt expense Total 945,595 945,595 Table 2 - List of transactions for January through March Table 2, Part 1 - January Transactions Check # 1084 10851092 1093 10941101 1102 1103 11041111 Date 1/4/201 4 1/4/201 4 1/4/201 4 1/7/201 4 1/11/20 14 1/12/20 14 1/14/20 14 1/14/20 14 1/14/20 14 1/14/20 14 1/15/20 14 1/21/20 14 1/23/20 Description Cash sales Sales on credit Payment for accounts payable Payment for salaries Payment for utilities Purchase inventory on credit Payment for salaries Cash Receipts on Accts Receivable Cash sales Payment for consulting Payment for accounts payable Payment for salaries Cash Receipts on Accts Receivable Amoun t $ 21,500 $ 49,500 $ 22,115 $ 5,120 $ 895 $68,6 05 $ 5,120 $26,5 25 $40,0 00 $ 1,575 $40,0 00 $ 5,120 $13,2 Status Recorde d Recorde d Recorde d Recorde d Recorde d Recorde d Recorde d Recorde d Recorde d Recorde d Recorde d Recorde d Recorde 10 11121119 1120 1121 1122 14 1/25/20 14 1/25/20 14 1/25/20 14 1/30/20 14 Payment for salaries Payment for travel Payment for magazine advertising Payment for employee benefits Table 2, Part 2 - February Transactions Date Description 1123 11241131 1132 11331140 11411148 11491156 1157 2/4/201 4 2/4/201 4 2/4/201 4 2/7/201 4 2/11/20 14 2/14/20 14 2/14/20 14 2/14/20 14 2/21/20 14 2/25/20 14 2/27/20 14 2/28/20 14 2/28/20 14 2/28/20 14 2/28/20 75 $ 5,120 $ 275 $4 25 $6,125 Paid consulting balance Amou nt $25,50 0 $52,11 5 $3,250 Payment for salaries $5,120 Payment for utilities $795 Payment for salaries $5,120 Sale on credit to Adirondack Adventures Cash sales $62,15 0 $75,02 5 $5,120 Cash sales Purchased inventory on credit Payment for salaries Purchased inventory on credit Cash receipts from Adirondack Adventures Payment for salaries Payment for accounts payable d Recorde d Recorde d Recorde d Recorde d $40,00 0 $13,00 0 $5,120 Cash receipts from Outdoor Ways $34,41 0 $6,150 Cash sales $22,45 11 Table 2, 1158 1159 11601167 1168 11691176 11771184 11851192 1193 1194 1195 1196 14 Part 3 - March Transactions 3/2/201 Paid accounts payable balance 4 3/4/201 Purchased inventory in cash 4 3/7/201 Sales on credit to Colorado 4 Climbers 3/7/201 Payment for salaries 4 3/11/20 Payment for utilities 14 3/14/20 Payment for salaries 14 3/14/20 Cash sales 14 3/14/20 Sales on credit to Johnson Guides 14 3/21/20 Payment for salaries 14 3/22/20 Purchased inventory on credit 14 3/27/20 Cash receipt from Johnson Guides 14 3/28/20 Payment for salaries 14 3/28/20 Payment for travel 14 3/28/20 Payment for advertising 14 3/28/20 Cash from Big Corporation 14 3/28/20 Payment for employee benefits 14 3/31/20 Cash receipts from Spirit 14 Adventures 3/31/20 Cash sales 14 3/31/20 Purchased equipment for store for 14 $30,000 in cash plus note payable of $20,000 0 $52,1 15 $45,0 00 $52,5 00 $5,12 0 $815 $5,12 0 $71,5 75 $26,5 25 $5,12 0 $50,0 00 $28,8 75 $5,12 0 $275 $425 $10,0 00 $6,12 5 $1,00 0 $34,7 15 $30,0 00 12 Table 3 - Bank Statements for January through March Part 1 - Summary of Bank statement for January TDC Bank Denver, CO For month of January 2014 Beginning balance........................ $ Deposits ......................................... Checks cleared.............................. Bank fees....................................... Ending balance................................ $ 45,125 10 1,300 (85,765) (600) 60,060 Check numbers missing (not cleared) as of 1/31/14 1122 Part 2 - Summary of bank statement for February TDC Bank Denver, CO For the month of February 2014 Beginning balance......................... $ 60,060 Deposits ......................................... 113,525 Checks cleared.............................. (65,060) 13 Bank fees....................................... Ending balance............................. $ (400) 108,125 Check numbers missing (not cleared) as of 2/28/14 none Part 3 - Summary of bank statement for March TDC Bank Denver, CO Mar-14 Beginning balance......................... $ 108,125 Deposits ......................................... 174,765 Checks cleared.............................. (148,410) Bank fees....................................... (400) Ending balance............................. $ 134,080 Check numbers missing (not cleared) as of 3/31/14 - checks 1193, 1194, 1195 Table 4 - Inventory Part 1 - Inventory - January I. Ending Counts: Item Name Ropes Climbing shoes Climbing Hardware Helmets Total Units 100 700 Replacement Cost 10 35 Selling Price 25 60 Selling Costs 5 5 Normal Profit % 30% 25% 100 20 35 5 20% 600 1500 25 40 5 30% Date 1/1/2014 1/12/2014 Units 30 264 II. Ropes Beginning Purchase Unit Cost 9 10 Total 270 2,640 14 End 1/31/2014 III. Climbing Shoes Date Beginning 1/1/2014 Purchase 1/12/2014 End 1/31/2014 IV. Climbing Hardware Date Beginning 1/1/2014 Purchase 1/12/2014 End 1/31/2014 V. 100 - Units 500 1050 700 Unit Cost 32 33 Total 16,000 34,650 - Units 50 385 100 Unit Cost 18 19 Total 900 7,315 - Units 500 1,000 600 Unit Cost 24 24 Total 12,000 24,000 - Helmets Date 1/1/2014 1/12/2014 1/31/2014 Beginning Purchase End Table 4, Part 2 - Inventory - February I. Ending Units Replacem Selling Selling Counts:Item Name Ropes 84 10 25 5 Climbing shoes 500 32 60 5 Climbing Hardware 75 20 35 5 Helmets 425 24 40 5 Total 1184 II. Ropes Beginning inventory Purchase Purchase End III. Normal 30% 25% 20% 30% Date 2/1/2014 2/4/2014 2/25/2014 2/28/2014 Units 100 114 150 84 Unit Total 10 10 1,140 1,500 Date 2/1/2014 2/4/2014 Units 700 900 Unit Total 33 29,700 - Climbing Shoes Beginning inventory Purchase 15 Purchase End 2/25/2014 2/28/2014 400 500 32 12,800 IV. Climbing Hardware Beginning inventory Purchase Purchase End Date 2/1/2014 2/4/2014 2/25/2014 2/28/2014 Units 100 425 325 75 Unit Total 19 20 8,075 6,500 Date 2/1/2014 2/4/2014 2/25/2014 2/28/2014 Units 600 550 800 425 Unit Total 24 24 13,200 19,200 V. Helmets Beginning inventory Purchase Purchase End Table 4, Part 3 - Inventory I. Ending Counts: Item Name Ropes Climbing shoes Climbing Hardware Helmets Total II. Ropes Beginning inventory Purchase Purchase End III. Units 80 246 109 249 684 Replacem 10 33 20 25 Selling 25 60 35 40 Selli 5 5 5 5 Normal 30% 25% 20% 30% Date 3/1/2014 3/4/2014 3/22/201 3/31/201 Units 84 125 152 80 Unit Total 10 10 1,250 1,520 - Date 3/1/2014 3/4/2014 Units 500 825 Unit Total 32 26,40 Climbing Shoes Beginning inventory Purchase 16 Purchase End IV. 590 246 35 20,65 Date 3/1/2014 3/4/2014 3/22/201 3/31/201 Units 75 330 500 109 Unit Total 22 21 7,260 10,50 - Date 3/1/2014 3/4/2014 3/22/201 3/31/201 Units 425 400 680 249 Unit Total 26 25 10,40 17,00 - Climbing Hardware Beginning inventory Purchase Purchase End V. 3/22/201 3/31/201 Helmets Beginning inventory Purchase Purchase End Table 5 - Accounts receivable subsidiary ledger Part 1 - January Jan-14 Name Johnson Guides Adirondack Adventures Colorado Climbers Outdoor Ways Balanc New e Sales 12/31/ 13 $1,200 $21,50 0 $4,000 $8,5 00 $2,000 $10,0 00 $6,150 Kincade Climbers $650 Spartan $500 $ 2,500 $ Cash Balanc Receip e ts 1/31/1 4 $13,9 $8,800 00 $9,0 $3,500 00 $12,0 $0 00 $ $6,150 $ $2,500 650 $3,700 Aging Schedule Due 90 $ - $ - $ $2,15 4,000 0 $ $ 17 Adventures Nature's Highway Billings Mountains Sky Adventures Spirit Adventures Big Corporation Total 3,200 $ 500 $2,250 $ $0 $ 2,300 $0 $ 1,000 $0 $ $17,50 $49,5 0 00 $750 $ 2,250 $ 2,000 $ - 3,200 $1,250 $ 500 $0 $ $300 $ 300 $1,000 $ 1,000 $39,80 $27,20 $ 0 0 19,800 Table 5, Part 2 - February Accounts Receivable Name Balance New Cash 1/31/14 Sales Receipts Balan Johnson Guides $8,800 Adirondack $3,500 Colorado $0 Outdoor Ways $6,150 Kincade $2,500 Spartan $3,700 Nature's $1,250 Billings $0 Sky Adventures $300 Spirit $1,000 Big Corporation $ Total $27,20 $ $ $ Table 5, Part 3 - March Accounts Receivable Mar-14 Name Balanc New Cash Balan e Sales Recei ce 2/28/1 pts 3/31/1 4 4 Johnson Guides Adirondack Adventures 500 $ 750 $ - $ $2,90 4,500 0 Aging Schedule Due 90 $ Aging Schedule Due 90 18 Colorado Climbers Outdoor Ways Kincade Climbers Spartan Adventures Nature's Highway Billings Mountains Sky Adventures Spirit Adventures Big Corporation Total $ - $ - $ - $ - $ - $ - $ - $ - Table 6 - Part 1, Trial Balance, January Accou DR CR 19 10000 10000 10000 10000 10000 10000 10000 10100 10100 10100 10100 10100 10100 20000 20000 20000 20000 20100 30000 30000 30000 30000 40000 50000 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 Cash Accounts receivable Allowance for doubtful accounts Inventory Supplies Prepaid insurance Prepaid expense - other P,P & E -Store Equipment Accumulated depreciation - Store P,P & E -Office Equipment Accumulated depreciation - Office P,P & E - Building Accumulated depreciation - Accounts payable Accrued expenses Salaries payable Interest payable Notes payable Common stock Capital in excess of par Retained earnings Dividends Sales Revenue Purchases Cost of goods sold Salary expense Benefits expense Supplies expense Insurance expense Utilities expense Travel expenses Advertising expenses Interest expense Depreciation Consulting expenses Bank fees Bad debt expense 54,5 27,2 1,5 29,1 21,3 12,0 178,0 17,8 25,0 5,0 617,5 30,8 38,0 2,1 12,5 250,0 100,0 400,0 104,2 111,0 68,6 20,4 6,1 8 2 4 1,5 $ $ Table 6, Part 2 - Trial Balance, February Accou DR CR 20 10000 10000 10000 10000 10000 10000 10000 10100 10100 10100 10100 10100 10100 20000 20000 20000 20000 20100 30000 30000 30000 30000 40000 50000 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 Cash Accounts receivable Allowance for doubtful accounts Inventory Supplies Prepaid insurance Prepaid expense, other P,P & E -Store Equipment Accumulated depreciation - Store P,P & E -Office Equipment Accumulated depreciation - Office P,P & E - Building Accumulated depreciation - building Accounts payable Accrued expenses Salaries payable Interest payable Notes payable Common stock Capital in excess of par Retained earnings Dividends Sales Revenue Purchases Cost of goods sold Salary expense Benefits expense Supplies expense Insurance expense Utilities expense Travel expenses Advertising expenses Interest expense Depreciation Consulting expenses Bank fees Bad debt expense Table 6, Part 3 - Trial Balance, March Accoun DR CR 21 100000 100000 100000 100000 100000 100000 100000 101000 101000 101000 101000 101000 101000 200000 200000 200000 200000 201000 300000 300000 300000 300000 400000 500000 501000 501000 501000 501000 501000 501000 501000 501000 501000 501000 501001 501001 501001 Cash Accounts receivable Allowance for doubtful accounts Inventory Supplies Prepaid insurance Prepaid expense, other P,P & E -Store Equipment Accumulated depreciation - Store P,P & E -Office Equipment Accumulated depreciation - Office P,P & E - Building Accumulated depreciation - building Accounts payable Accrued expenses Salaries payable Interest payable Notes payable Common stock Capital in excess of par Retained earnings Dividends Sales Revenue Purchases Cost of goods sold Salary expense Benefits expense Supplies expense Insurance expense Utilities expense Travel expenses Advertising expenses Interest expense Depreciation Consulting expenses Bank fees Bad debt expense Table 7 - Part 1 - Adjusted Trial Balance for January Accou 31-Jan-14 nt Numb Account Name DR CR Adjusting Entries DR CR Adjusted Balance DR CR 22 er 10000 01 10000 02 10000 03 10000 04 10000 05 10000 06 10000 07 10100 01 10100 02 10100 03 10100 04 10100 05 10100 06 20000 01 20000 02 20000 03 20000 04 20100 01 30000 01 30000 02 30000 03 Cash Accounts receivable Allowance for doubtful accounts Inventory Supplies Prepaid insurance 60,6 60 27,2 00 29,1 70 21,3 00 12,0 00 - - 1,5 00 - - - - - - Prepaid expense, other P,P & E -Store Equipment Acc. depreciation - Store Equip. P,P & E -Office Equipment Acc. depreciation - Office Equip. P,P & E - Building Acc. depreciation - building Accounts payable Accrued expenses Salaries payable Interest payable Notes payable Common stock Capital in excess of par Retained earnings 178,0 00 - - 17,8 00 25,0 00 - 617,5 00 5,0 00 - - - - - 30,8 75 38,0 15 2,1 25 - - 12,5 00 250,0 00 100,0 00 400,0 00 94,27 0 - - 23 30000 04 40000 01 50000 01 50100 00 50100 01 50100 02 50100 03 50100 04 50100 05 50100 06 50100 07 50100 08 50100 09 50100 10 50100 11 50100 12 Table 7 Accou nt Numb er 10000 01 10000 02 Dividends Sales Revenue Purchases Cost of goods sold Salary expense Benefits expense Supplies expense Insurance expense - 111,0 00 - 68,6 05 - - - - - 20,4 80 - - - - - - - - - - - - - - Utilities expense 8 95 Travel expenses 2 75 Advertising expenses Interest expense Depreciation expense 4 Bank fees Bad debt expense - - - - - - - - 75 - - - - - - - - $1,063,0 85 $1,063,0 85 DR CR - - 25 1,5 - - - - Part 2 - Adjusted Trial Balance for February 28-Feb-14 Account Name - - - Consulting expenses - - $ - - - $ - - Adjusting Entries DR CR Adjusted Balance DR CR Cash Accounts receivable 24 10000 03 10000 04 10000 05 10000 06 10000 07 10100 01 10100 02 10100 03 10100 04 10100 05 10100 06 20000 01 20000 02 20000 03 20000 04 20100 01 30000 01 30000 02 30000 03 30000 04 40000 01 50000 01 Allowance for doubtful accounts Inventory Supplies Prepaid insurance Prepaid expense, other P,P & E -Store Equipment Acc. depreciation - Store Equip. P,P & E -Office Equipment Acc. depreciation - Office Equip. P,P & E - Building Acc. depreciation - building Accounts payable Accrued expenses Salaries payable Interest payable Notes payable Common stock Capital in excess of par Retained earnings Dividends Sales Revenue Purchases 25 50100 00 50100 01 50100 02 50100 03 50100 04 50100 05 50100 06 50100 07 50100 08 50100 09 50100 10 50100 11 50100 12 Cost of goods sold Salary expense Benefits expense Supplies expense Insurance expense Utilities expense Travel expenses Advertising expenses Interest expense Depreciation expense Consulting expenses Bank fees Bad debt expense Table 7 - Part 3 - Adjusted Trial Balance for March Accou nt 10000 10000 10000 10000 10000 10000 10000 10100 10100 10100 10100 10100 10100 Account Name Cash Accounts receivable Allowance for doubtful Inventory Supplies Prepaid insurance Prepaid expense - other P,P & E -Store Acc. depreciation - P,P & E -Office Acc. depreciation - P,P & E - Building Acc. depreciation - 31-Mar-14 DR CR Adjusting DR CR Adjusted DR CR 26 20000 20000 20000 20000 20100 30000 30000 30000 30000 40000 50000 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 50100 Accounts payable Accrued expenses Salaries payable Interest payable Notes payable Common stock Capital in excess of par Retained earnings Dividends Sales Revenue Purchases Cost of goods sold Salary expense Benefits expense Supplies expense Insurance expense Utilities expense Travel expenses Advertising expenses Interest expense Depreciation expense Consulting expenses Bank fees Bad debt expense 27