Practice Set Workbook Download Info X Cluse - 700M + count chboard Courses Page 07 0 Practice Set Directions: You, as the main accountant for Indiana Jones, Inc., are responsible for recording all the transactions during the year, as well as the adjusting entries at the end of the year. You are also responsible for preparing the financial statements for Indiana Jones, Inc. You must prepare a Multi-Step Income Stateneat. a Statement of Stockholders' Equity, and a Classified Balance Sheet (don't worry about the Statement of Cash Flows-soneone else prepares this) for fiscal year 2005, which ends on December 31, 2005. You will use the Excel workbook set up for this problem. Included in the workbook are the beginning account balances at January 1, 2005, the Transaction Worksheet, the Cost of Goods Sold worksheet, the ending account balances at December 31, 2005, the Post-Closing account balances at December 31, 2005 and a worksheet to create financial statements. You must record all the transactions and adjusting entries in the Transactions Worksheet. Increase or decrease the accounts for each transaction. I have added a column on the far right to ensure that each transaction balances in the accounting equation (if it balances, you will see a zero in the column to the far right. If it doesn't balance you will see a nutsber). Note that the total balance for cach account is indicated on the bottom of the Transaction Worksheet (before and after closing entries) and is linked to the ending account balances at December 31, 2005 (regular and post-closing). Make sure the closing entries are posted to area at the bottom of the general ledger worksheet (clearly marked "Closing Entries and highlighted in grey). Once you have recorded all transactions, adjustments, and closing entries, the year-end account balances should automatically fill in. Use them to produce the financial statements. Note: Round all amounts to the nearest $1. Specific Rules for Transaction Worksheet and Financial Statements: 1. You will not be using debits and credits for transactions. Instead, you will record transactions as increases (+) or decreases (-) to the accounts involved in the transaction. For example, if the company purchased equipment on credit, you would increase the equipment account and increase the AP accounts. Later, when you pay off the AP balance, you would decrease cash and AP by putting negative numbers in those accounts 2. When increasing expense accounts, you need to put the amount as a NEGATIVE number on the transaction worksheet. The formulas I have in the spreadsheet assume that all expense transactions are NEGATIVE numbers. 3. Dividends will be treated as a direct reduction of retained earnings 4. When completing closing entries, instead of zeroing out the revenue and expense accounts to income summary, you will book the offsetting amounts directly to retained earnings. 5. On the income statement, treat expenses as NEGATIVE numbers. The formulas assume that expenses are NEGATIVE. Same idea for any contra-accounts on the balance sheet (use NEGATIVE numbers) 6. For contra accounts, an increase will be NEGATIVE and decrease will be POSITIVE. Contra accounts are the opposite of normal accounts For example, to write off an uncollectible account, you will decrease the allowance for doubtful accounts by using a POSITIVE entry Pertinent Information: You are given the beginning balances of all accounts at January 1, 2005 (after fiscal year 2004's closing entries have been posted). You will be given a series of transactions to record that occur throughout the year 2005. Indiana Jones' fiscal year is on the calendar year (i.e. the year-end is December 31, 2005). Indiana Jones se acenal basis accountino Triana Jones, Inc is oration. The com e s the following accounting methods Practice Set Workbook -- Fa Download Inu x Cluse - 700M + Account Dachboard Courses Page of 7 0 Pertinent Information: You are given the beginning balances of all accounts at January 1, 2005 (after fiscal year 2004's closing entries have been posted). You will be given a series of transactions to record that occur throughout the year 2005. Indiana Jones' fiscal year is on the calendar year (i.e. the year-end is December 31, 2005). Indiana Jones uses accrual basis accounting Indiana Jones, Inc. is a corporation. The company uses the following accounting methods: 1. The Company uses LIFO for inventory valuation. The Company uses the Perpetual Method for inventory valuation. The Company only stocks Merchan Inventory, Inventory purchases are booked directly to the merchandise inventory account. Since the Company uses the perpetual method, the cost of goo sold and merchandise inventory accounts are updated after every sale. (hint: for every sale, you will use different accounts) Note: The January 1, 2005 inventory balance consists of 2,000 units with a per unit cost of $15. 2. The Company uses the Allowance Method to account for bad debt. The Company determines its Allowance for Doubtful Accounts by estimating that 10 the ending balance of Accounts Receivable will be uncollectible (Balance Sheet Approach). When specifically identified accounts are determined to be uncollectible, then the Company writes them off against the Allowance. 3. Indiana Jones Inc. depreciates Property, Plant, and Equipment using the straight-line method. Buildings are depreciated over 40 years. Equipment is depreciated over a 10-year life. The building has no salvage value and the equipment has a salvage value of $100,000. You will find the original cost of buildings and equipment in the beginning balances spreadsheet. 4. The Company owns a patent for laser excavation technology it developed two years past. The patent is amortized over its useful life. Amortization expense is $7,000 per year, and booked at the end of the year. Other relevant information: 1. The A/R balance at January 1, 2005 consists of the following customer balances: Barranca Inc. ..............$7.000 (current) Short Round Co............$3.500 (90 days past due) Sacred Stone Co..........$10,000 (current) Well of Souls, Ltd... .$4.500 (current) 2. The Company's common stock was issued with a $2.50 par value. 100,000 shares are authorized. 40,000 shares are issued and outstanding 3. The prepaid insurance amount relates to three years' worth of insurance that began on January 1, 2005 (how convenient!) 4. The Note Payable is a ten-year note that was taken out on December 31, 2001. The interest rate is 8.25% per annum. Interest payments are due January the previous year's interest (i.e. fiscal year 2005 interest is due January 3, 2006). End-of-Year Adjusting Entries: 1. Remember to record the adjustment for salaries for the year. 2. Remember to depreciate the equipenent. 3. Remember to amortize the patent. 4. Remember to record bad debt expense (note: there is already a balance in the allowance for doubtful accounts account) 5. Reznember to depreciate the building. 6. Remember to ndjust prepaid insurance. 7. Remember to record the adjustment for interest earned on the short-term investment. 8. Remember to record the adjustment for utilities. Practice Set Workbook --- Download M X Close Page of 7 0 - ZOOM + - Account ASSETS Short-term Investments Allowance for Doubtful interest Accounts Receivable Dashboard Cash Accounts Receivable 2500 Merchandise Inventory 31. OTRO orice Supplies 1 Prepaid Insurance 1 .00 Land KORO Courses Date Description 11 HEGINNING HALANS 1:8 Indiana pays off the beginning salanes payable balance 1/12 Indiana buys 1,000 units of inventory at a per unit cost or $16 on account, terms net 50. 1/19 Indiana pays off the beginning income taxes payable balance 1/21 Indiana scils 1.100 units to Sallah Co for $85 cach an credit torms 2/15 nct 45 1/31 Indiana pays off S30 000 of the beginning accounts payable balance 27 Indiana parys for $4 000 of magazine advertising 2/15 Indiana writes of the AR balance owed by Short Round Co. as uncollecoble (see instructions) 2/1 Indiana collects the amount owed by Sallah Co. outside of the discount period. 2/27 Indiana pays $18000 of the interest payable balance. 3/4 Indiana pays off the 1/12 purchase 319 Indiana seis 500 units to Ravenwood LLC for $95 each on credit terms 2/15 net:45 3/14 Indiana collects the amount owed by Raverwood LLC within the discount period 3/24 Indiana buys 1 200 units of inventory ala per unit cost of $1a on account, terms He 80. 4/1 Indiana provides the services owed to a client. The client paid Indiana $20,000 last year 4/8 Indiana pays off the beginning dividends payable balance 1/12 Indiana pays off the 3/24 purchase. 4/25 Indiana sells 000 units to Mula Ram, Inc. for $90 each or creuil les 2115 mel/45 5/1 Indiana grants Mola Ram, Inc. an allowance of $4,000 for damaged goods from the 4/25 sale. 5/8 Indiana collects the amount owed by Mola Ram, Inc. within the discount period. 5/15 Indiana pays Tcht, Dietrich and Gabler GmbH for miscellaneous expenses for $10 000 5/27 Indiana buys 1.500 units of inventory ata per un cost of $20 on account forms net 60 B2 Indiana collects the amount owed by arrancaine (see instructions) No discount applies 8/27 Indiana pays for $8 000 of magazine advertising 7/3 Indiana pays off the 5/27 purchase. 7/10 Indiana sells 1,600 units la Elsa Schneider Co. for $92 each on Credit, lemus 215, ne145 7/17 Indiana buys office supplies for $5,000 on credit terms net 45. 7/27 Indiana pays off the 7/17 purchase. 819 Indiana collects the amount owed by Elsa Schncider Co outside the discount period 8/24 Indiana Days of $20 000 of the beginning accounts payabis balance 8727 Indiana buys WOD units of inventory at a per unit cost to $29 on account, terms net 60 9:1 Indiana sells 500 units to Pankat Canstruction for $92 each in cash 9/12 Indiana pays of the 8/27 purchase 8/30 Indiana buys a short-term investment for $50,000 2014 Indiana els 750 units to Malah Sinch Co for $3 each on credit, terms 2/15, net 45 10715 Indiana collects the amount owed by Maharajah Singh Co. within the discount period. 10/31 Indiana receives $12,000 in advance for services to be provided next year. practice Set Wortb... A Show all Practice Sct Workbook -- FI Download Info X Close Page 070 - ZOOM + L - Account Dachboard 10:4 Indiana sells 750 units to Mahara ah Snch Co for $93 each on credit terms 25. nat 45 10/15 Indiana collects the amount wed by Maharajah Singh Co within the discount period 10/31 Indiana receives $12000 in advance for services in be provided next year 11/8 Indiana buys 1.000 units of inventory at a per unit cost of $25 on account, terms net 80 11/19 Indian buys office supplies for S4,000 in asti. 11/27 Indiana pays for postage, shipping costs, and other miscellaneous items (total of $3,000). 12141 Indiana pays off the 1119 purchase. 12/12 Indiana burys 00 units of inventary at a per unit cost of $26 an account terms rct.GO 12/16 Indiana sells 1.000 units to Kazim & Brothers Co for $95 each on credit, terms 2/15, net 45. 12/29 Indiana sells S90 000 of services to Bellag LLC an credit terms 2/15 m/45 12/31 Indiana declares a dividend of $15,000 to be paid next year 12/31 Indiana buys $500 office supplies in Cash Courses Adj. #2 Adjusting entries (see comments - cells with small red triangles in upper right corner) place mouse here to see comment place mouse here to see comment place mouse here to see comment place mouse hare to Soc Comment place mouse here to see comment place mouse here to see comment place mouse here to see comment place mouse here to see comment place mouse here to see comment place mouse here to see comment place mucchere to see comment Totals before closing entries 25 OCO 8 00) . 30.000 1200 15.000 50.00 Close Closing entries Closing revenues and expenses Totals after closing entries 25 000 (8000 30 000 1200 15.000 5000 practice Set Wortb... A Show all X Practice Sct Workbook Download Info X Close Page 070 - ZOOM + L - Account Dachboard Cost per Unit Courses 11 Beginning Inventory 1/12 Purchase 3/24 Purchase 5.27 Purchase 9.27 Purchase 11/9 Purchase 12/12 Purchase Totals Calendar 2.000 of Units Cost of Goods Sold Perpetual LIFOI Date of Sale Units Sold: Cost per Unit Total Cost 1021 1:21 Sale 318 Sale 4.25 Sale 7/10 Sale 91 Sale 10/4 Sale 12/16 Sale Total units sold 7/10 7/10 9/1 1014 1044 1014 12/16 12/16 Total Cost - Total COGS . FOOD Updated Inventory Totals (after sales) #of Units Cast per Unit 1/1 Beginning Inventory 1/12 Purchase 3/24 Purchase 527 Purchase 8/27 Purchase 11/9 Purchase 12/12 Purchase Totals Balanced? Dor-> practice Set Wortb... A Practice Sct Workbook Download Info X Close Page of 7 - ZOOM + - Account Dachboard Courses Calendar ASSETS Indiana Jones, Inc. Summary of Account Balances December 31, 2005 Accounts Balances Cash 130 000 Short-term investments Accounts Receivable 25.000 Allowance for Doubtful Accounts (0,000) Interest Receivable Office Supplies 1.200 Merchandise Inventory 30 000 Prepaid Insurance 15,000 Land 50,000 Building 300.000 Accumulated Depreciation - Building 160.000 Equipment 800.000 Accumulated Depreciation - Equipment (100,000 Intangible Asset - Patent 30.000 Accounts Payable 50,000 Salancs Payable 12.000 Income Taxos Pevable 12,00D Lineamed Revenue 30 DOO Dividends Payable 15 000 Interest Payable 22.000 Noles Perable 370.000 Common S ock 100.000 Additional Padin Capital 230,000 LIABILITIES EQUITY REVENUES Heta ned Earnings Sales Revenue Sales Discounts Sales Allowances Service Revenue Interest inom Cost of Goods Sold Advertising Experise Office Supplies Expense Salate Expense Utilitics Expensc Insurance Expense Bad Debt Expense EXPENS Practice Set Wortb... Show all Practice Set Workbook - Fall Download Info X Close Page of 7 - ZOOM + - Account Dachboard Alcuni laled Depreciation - Equipment Intangible Asset - Patent Accounts Payable Salarica Payable Income Taxes Pavable Unsaned Revenue Dividends Payable Interest Payable Nules Payable Common S ock Additional Pardin Capital (100,000) 30.000 50,000 12 DOD 12 DOID 30.000 15 000 22.000 Courses LIABILMES EQUITY Calendar 100.000 230,000 172 200 REVENUES Reta ned Earnings Sales Revenue Sales Discounts Sales Allowances Service Revenue Interest income Cost of Goods Sold Advertising Experise Office Supplies Expense Salanes Expense Iltilities Expense Insurance Experso Bad Debt Expense Depreciation Expense Amortization Expense Miscellaneous Expense Interest Experise Income Tax Fxpense Tatal EXPENSES Correct If the accounting equation is in balance, you will see the word "Correct", if not then you will find incorrect Practice Set Wortb... Show all Practice Sct Workbook Download Info X Close Page 070 - ZOOM + L O - Account Pleas Create A m Stent, S tol Stockholderity and Balance Shot Caud Form NOTE. You need to in the GREY aw w the bulance sheet ENTER EXPENSES AS NEGATIVE AMOUNTS!!!!! Indiana Jones, Inc. Net of discounts allowances For the Year Ended December 31, 2005 Indiana Jones, Inc. Common Stock APKC Retained Earning Balance 1200S 00003 230000 5 172.2005 Dachboard Total 507.200 Courses Net Sales Reverwe Costel Goods Sald Gross Mai Operating Expenses Dividends Decod Balance, 12/31/2016 5 0 1 12 2005 502 200 Calendar Advertising Expense matalan Espense accounts Receivable Net of Allowance Remember to the AB Operating Other Income and per Total Current Arts Less L isted Depreciation Property. Plant and Equipment, net Income Taues Net rooms Total Assets Eaming 13 Current Liabilities Contributed Capital Retained Eamings practice Set Wortb... A Show all Practice Sct Workbook Download Info X Close Page 070 - ZOOM + L - Account Dachboard Contributed Capital Courses Additional Pand-in Capital Retained Eamings Calendar Total Liabilities and Equity Balance? 0-yes) Indiana Jones, Inc. Post-Closing Account Balances December 31, 2005 Accounts Cash 130 000 Short-term Investments Accounts Receivable 25 000 Alowance for Doubtful Accounts 19.000) Interest Receivable Office Supplies 1.200 Merchandise Inventory 30.000 Precad Insurance 15.000 60 000 Building ASSETS Practice Set Wortb... Show all Practice Sct Workbc Download Info X Close Page 070 - ZOOM + L - Account (8,000) Alowance for Douborul Accounts Interest Receivable Office Supplies Merchandise Inventory Prepaid Insurance Land Dachboard 30 000 ASSETS Building Courses Calendar Accumulated Depreciation -- Building Equpment Accumulated Depreciation - Equipment Intang ble Asset -- Patent Accounts Payable Salarios Payable Income Taxos Payable Unearned Revenue Dividends Payable Interest Payable Noles Payable Common Stock Additional Paid-in Capital 50.000 200.000 (60.000 600.000 (100,000 30.000 50.000 12 000 12 00 30 000 15 000 22,000 LIABILITIES 230,000 EQUITY 172 200 Revenues and Expenses should be zero here REVENUES Rotaired Earnings Sales Revende Sales Discounts Sales Allowances Service Revenue Interest Income Cost of Goods Sold Advertising Cxpense Office Supplies Expenso Salanes Expense Utilities Expense Insurance Expensc Bad Debi Expense Depreciation Expense Amortzation Expense Miscellaneous Expense Interest Exocnsc Income Tax Experise Total EXPENSES Correct if the accounting equation is in balance, you will see the word "Correct", if not then you will find Practice Set Wortb... Show all Practice Set Workbook Download Info X Cluse - 700M + count chboard Courses Page 07 0 Practice Set Directions: You, as the main accountant for Indiana Jones, Inc., are responsible for recording all the transactions during the year, as well as the adjusting entries at the end of the year. You are also responsible for preparing the financial statements for Indiana Jones, Inc. You must prepare a Multi-Step Income Stateneat. a Statement of Stockholders' Equity, and a Classified Balance Sheet (don't worry about the Statement of Cash Flows-soneone else prepares this) for fiscal year 2005, which ends on December 31, 2005. You will use the Excel workbook set up for this problem. Included in the workbook are the beginning account balances at January 1, 2005, the Transaction Worksheet, the Cost of Goods Sold worksheet, the ending account balances at December 31, 2005, the Post-Closing account balances at December 31, 2005 and a worksheet to create financial statements. You must record all the transactions and adjusting entries in the Transactions Worksheet. Increase or decrease the accounts for each transaction. I have added a column on the far right to ensure that each transaction balances in the accounting equation (if it balances, you will see a zero in the column to the far right. If it doesn't balance you will see a nutsber). Note that the total balance for cach account is indicated on the bottom of the Transaction Worksheet (before and after closing entries) and is linked to the ending account balances at December 31, 2005 (regular and post-closing). Make sure the closing entries are posted to area at the bottom of the general ledger worksheet (clearly marked "Closing Entries and highlighted in grey). Once you have recorded all transactions, adjustments, and closing entries, the year-end account balances should automatically fill in. Use them to produce the financial statements. Note: Round all amounts to the nearest $1. Specific Rules for Transaction Worksheet and Financial Statements: 1. You will not be using debits and credits for transactions. Instead, you will record transactions as increases (+) or decreases (-) to the accounts involved in the transaction. For example, if the company purchased equipment on credit, you would increase the equipment account and increase the AP accounts. Later, when you pay off the AP balance, you would decrease cash and AP by putting negative numbers in those accounts 2. When increasing expense accounts, you need to put the amount as a NEGATIVE number on the transaction worksheet. The formulas I have in the spreadsheet assume that all expense transactions are NEGATIVE numbers. 3. Dividends will be treated as a direct reduction of retained earnings 4. When completing closing entries, instead of zeroing out the revenue and expense accounts to income summary, you will book the offsetting amounts directly to retained earnings. 5. On the income statement, treat expenses as NEGATIVE numbers. The formulas assume that expenses are NEGATIVE. Same idea for any contra-accounts on the balance sheet (use NEGATIVE numbers) 6. For contra accounts, an increase will be NEGATIVE and decrease will be POSITIVE. Contra accounts are the opposite of normal accounts For example, to write off an uncollectible account, you will decrease the allowance for doubtful accounts by using a POSITIVE entry Pertinent Information: You are given the beginning balances of all accounts at January 1, 2005 (after fiscal year 2004's closing entries have been posted). You will be given a series of transactions to record that occur throughout the year 2005. Indiana Jones' fiscal year is on the calendar year (i.e. the year-end is December 31, 2005). Indiana Jones se acenal basis accountino Triana Jones, Inc is oration. The com e s the following accounting methods Practice Set Workbook -- Fa Download Inu x Cluse - 700M + Account Dachboard Courses Page of 7 0 Pertinent Information: You are given the beginning balances of all accounts at January 1, 2005 (after fiscal year 2004's closing entries have been posted). You will be given a series of transactions to record that occur throughout the year 2005. Indiana Jones' fiscal year is on the calendar year (i.e. the year-end is December 31, 2005). Indiana Jones uses accrual basis accounting Indiana Jones, Inc. is a corporation. The company uses the following accounting methods: 1. The Company uses LIFO for inventory valuation. The Company uses the Perpetual Method for inventory valuation. The Company only stocks Merchan Inventory, Inventory purchases are booked directly to the merchandise inventory account. Since the Company uses the perpetual method, the cost of goo sold and merchandise inventory accounts are updated after every sale. (hint: for every sale, you will use different accounts) Note: The January 1, 2005 inventory balance consists of 2,000 units with a per unit cost of $15. 2. The Company uses the Allowance Method to account for bad debt. The Company determines its Allowance for Doubtful Accounts by estimating that 10 the ending balance of Accounts Receivable will be uncollectible (Balance Sheet Approach). When specifically identified accounts are determined to be uncollectible, then the Company writes them off against the Allowance. 3. Indiana Jones Inc. depreciates Property, Plant, and Equipment using the straight-line method. Buildings are depreciated over 40 years. Equipment is depreciated over a 10-year life. The building has no salvage value and the equipment has a salvage value of $100,000. You will find the original cost of buildings and equipment in the beginning balances spreadsheet. 4. The Company owns a patent for laser excavation technology it developed two years past. The patent is amortized over its useful life. Amortization expense is $7,000 per year, and booked at the end of the year. Other relevant information: 1. The A/R balance at January 1, 2005 consists of the following customer balances: Barranca Inc. ..............$7.000 (current) Short Round Co............$3.500 (90 days past due) Sacred Stone Co..........$10,000 (current) Well of Souls, Ltd... .$4.500 (current) 2. The Company's common stock was issued with a $2.50 par value. 100,000 shares are authorized. 40,000 shares are issued and outstanding 3. The prepaid insurance amount relates to three years' worth of insurance that began on January 1, 2005 (how convenient!) 4. The Note Payable is a ten-year note that was taken out on December 31, 2001. The interest rate is 8.25% per annum. Interest payments are due January the previous year's interest (i.e. fiscal year 2005 interest is due January 3, 2006). End-of-Year Adjusting Entries: 1. Remember to record the adjustment for salaries for the year. 2. Remember to depreciate the equipenent. 3. Remember to amortize the patent. 4. Remember to record bad debt expense (note: there is already a balance in the allowance for doubtful accounts account) 5. Reznember to depreciate the building. 6. Remember to ndjust prepaid insurance. 7. Remember to record the adjustment for interest earned on the short-term investment. 8. Remember to record the adjustment for utilities. Practice Set Workbook --- Download M X Close Page of 7 0 - ZOOM + - Account ASSETS Short-term Investments Allowance for Doubtful interest Accounts Receivable Dashboard Cash Accounts Receivable 2500 Merchandise Inventory 31. OTRO orice Supplies 1 Prepaid Insurance 1 .00 Land KORO Courses Date Description 11 HEGINNING HALANS 1:8 Indiana pays off the beginning salanes payable balance 1/12 Indiana buys 1,000 units of inventory at a per unit cost or $16 on account, terms net 50. 1/19 Indiana pays off the beginning income taxes payable balance 1/21 Indiana scils 1.100 units to Sallah Co for $85 cach an credit torms 2/15 nct 45 1/31 Indiana pays off S30 000 of the beginning accounts payable balance 27 Indiana parys for $4 000 of magazine advertising 2/15 Indiana writes of the AR balance owed by Short Round Co. as uncollecoble (see instructions) 2/1 Indiana collects the amount owed by Sallah Co. outside of the discount period. 2/27 Indiana pays $18000 of the interest payable balance. 3/4 Indiana pays off the 1/12 purchase 319 Indiana seis 500 units to Ravenwood LLC for $95 each on credit terms 2/15 net:45 3/14 Indiana collects the amount owed by Raverwood LLC within the discount period 3/24 Indiana buys 1 200 units of inventory ala per unit cost of $1a on account, terms He 80. 4/1 Indiana provides the services owed to a client. The client paid Indiana $20,000 last year 4/8 Indiana pays off the beginning dividends payable balance 1/12 Indiana pays off the 3/24 purchase. 4/25 Indiana sells 000 units to Mula Ram, Inc. for $90 each or creuil les 2115 mel/45 5/1 Indiana grants Mola Ram, Inc. an allowance of $4,000 for damaged goods from the 4/25 sale. 5/8 Indiana collects the amount owed by Mola Ram, Inc. within the discount period. 5/15 Indiana pays Tcht, Dietrich and Gabler GmbH for miscellaneous expenses for $10 000 5/27 Indiana buys 1.500 units of inventory ata per un cost of $20 on account forms net 60 B2 Indiana collects the amount owed by arrancaine (see instructions) No discount applies 8/27 Indiana pays for $8 000 of magazine advertising 7/3 Indiana pays off the 5/27 purchase. 7/10 Indiana sells 1,600 units la Elsa Schneider Co. for $92 each on Credit, lemus 215, ne145 7/17 Indiana buys office supplies for $5,000 on credit terms net 45. 7/27 Indiana pays off the 7/17 purchase. 819 Indiana collects the amount owed by Elsa Schncider Co outside the discount period 8/24 Indiana Days of $20 000 of the beginning accounts payabis balance 8727 Indiana buys WOD units of inventory at a per unit cost to $29 on account, terms net 60 9:1 Indiana sells 500 units to Pankat Canstruction for $92 each in cash 9/12 Indiana pays of the 8/27 purchase 8/30 Indiana buys a short-term investment for $50,000 2014 Indiana els 750 units to Malah Sinch Co for $3 each on credit, terms 2/15, net 45 10715 Indiana collects the amount owed by Maharajah Singh Co. within the discount period. 10/31 Indiana receives $12,000 in advance for services to be provided next year. practice Set Wortb... A Show all Practice Sct Workbook -- FI Download Info X Close Page 070 - ZOOM + L - Account Dachboard 10:4 Indiana sells 750 units to Mahara ah Snch Co for $93 each on credit terms 25. nat 45 10/15 Indiana collects the amount wed by Maharajah Singh Co within the discount period 10/31 Indiana receives $12000 in advance for services in be provided next year 11/8 Indiana buys 1.000 units of inventory at a per unit cost of $25 on account, terms net 80 11/19 Indian buys office supplies for S4,000 in asti. 11/27 Indiana pays for postage, shipping costs, and other miscellaneous items (total of $3,000). 12141 Indiana pays off the 1119 purchase. 12/12 Indiana burys 00 units of inventary at a per unit cost of $26 an account terms rct.GO 12/16 Indiana sells 1.000 units to Kazim & Brothers Co for $95 each on credit, terms 2/15, net 45. 12/29 Indiana sells S90 000 of services to Bellag LLC an credit terms 2/15 m/45 12/31 Indiana declares a dividend of $15,000 to be paid next year 12/31 Indiana buys $500 office supplies in Cash Courses Adj. #2 Adjusting entries (see comments - cells with small red triangles in upper right corner) place mouse here to see comment place mouse here to see comment place mouse here to see comment place mouse hare to Soc Comment place mouse here to see comment place mouse here to see comment place mouse here to see comment place mouse here to see comment place mouse here to see comment place mouse here to see comment place mucchere to see comment Totals before closing entries 25 OCO 8 00) . 30.000 1200 15.000 50.00 Close Closing entries Closing revenues and expenses Totals after closing entries 25 000 (8000 30 000 1200 15.000 5000 practice Set Wortb... A Show all X Practice Sct Workbook Download Info X Close Page 070 - ZOOM + L - Account Dachboard Cost per Unit Courses 11 Beginning Inventory 1/12 Purchase 3/24 Purchase 5.27 Purchase 9.27 Purchase 11/9 Purchase 12/12 Purchase Totals Calendar 2.000 of Units Cost of Goods Sold Perpetual LIFOI Date of Sale Units Sold: Cost per Unit Total Cost 1021 1:21 Sale 318 Sale 4.25 Sale 7/10 Sale 91 Sale 10/4 Sale 12/16 Sale Total units sold 7/10 7/10 9/1 1014 1044 1014 12/16 12/16 Total Cost - Total COGS . FOOD Updated Inventory Totals (after sales) #of Units Cast per Unit 1/1 Beginning Inventory 1/12 Purchase 3/24 Purchase 527 Purchase 8/27 Purchase 11/9 Purchase 12/12 Purchase Totals Balanced? Dor-> practice Set Wortb... A Practice Sct Workbook Download Info X Close Page of 7 - ZOOM + - Account Dachboard Courses Calendar ASSETS Indiana Jones, Inc. Summary of Account Balances December 31, 2005 Accounts Balances Cash 130 000 Short-term investments Accounts Receivable 25.000 Allowance for Doubtful Accounts (0,000) Interest Receivable Office Supplies 1.200 Merchandise Inventory 30 000 Prepaid Insurance 15,000 Land 50,000 Building 300.000 Accumulated Depreciation - Building 160.000 Equipment 800.000 Accumulated Depreciation - Equipment (100,000 Intangible Asset - Patent 30.000 Accounts Payable 50,000 Salancs Payable 12.000 Income Taxos Pevable 12,00D Lineamed Revenue 30 DOO Dividends Payable 15 000 Interest Payable 22.000 Noles Perable 370.000 Common S ock 100.000 Additional Padin Capital 230,000 LIABILITIES EQUITY REVENUES Heta ned Earnings Sales Revenue Sales Discounts Sales Allowances Service Revenue Interest inom Cost of Goods Sold Advertising Experise Office Supplies Expense Salate Expense Utilitics Expensc Insurance Expense Bad Debt Expense EXPENS Practice Set Wortb... Show all Practice Set Workbook - Fall Download Info X Close Page of 7 - ZOOM + - Account Dachboard Alcuni laled Depreciation - Equipment Intangible Asset - Patent Accounts Payable Salarica Payable Income Taxes Pavable Unsaned Revenue Dividends Payable Interest Payable Nules Payable Common S ock Additional Pardin Capital (100,000) 30.000 50,000 12 DOD 12 DOID 30.000 15 000 22.000 Courses LIABILMES EQUITY Calendar 100.000 230,000 172 200 REVENUES Reta ned Earnings Sales Revenue Sales Discounts Sales Allowances Service Revenue Interest income Cost of Goods Sold Advertising Experise Office Supplies Expense Salanes Expense Iltilities Expense Insurance Experso Bad Debt Expense Depreciation Expense Amortization Expense Miscellaneous Expense Interest Experise Income Tax Fxpense Tatal EXPENSES Correct If the accounting equation is in balance, you will see the word "Correct", if not then you will find incorrect Practice Set Wortb... Show all Practice Sct Workbook Download Info X Close Page 070 - ZOOM + L O - Account Pleas Create A m Stent, S tol Stockholderity and Balance Shot Caud Form NOTE. You need to in the GREY aw w the bulance sheet ENTER EXPENSES AS NEGATIVE AMOUNTS!!!!! Indiana Jones, Inc. Net of discounts allowances For the Year Ended December 31, 2005 Indiana Jones, Inc. Common Stock APKC Retained Earning Balance 1200S 00003 230000 5 172.2005 Dachboard Total 507.200 Courses Net Sales Reverwe Costel Goods Sald Gross Mai Operating Expenses Dividends Decod Balance, 12/31/2016 5 0 1 12 2005 502 200 Calendar Advertising Expense matalan Espense accounts Receivable Net of Allowance Remember to the AB Operating Other Income and per Total Current Arts Less L isted Depreciation Property. Plant and Equipment, net Income Taues Net rooms Total Assets Eaming 13 Current Liabilities Contributed Capital Retained Eamings practice Set Wortb... A Show all Practice Sct Workbook Download Info X Close Page 070 - ZOOM + L - Account Dachboard Contributed Capital Courses Additional Pand-in Capital Retained Eamings Calendar Total Liabilities and Equity Balance? 0-yes) Indiana Jones, Inc. Post-Closing Account Balances December 31, 2005 Accounts Cash 130 000 Short-term Investments Accounts Receivable 25 000 Alowance for Doubtful Accounts 19.000) Interest Receivable Office Supplies 1.200 Merchandise Inventory 30.000 Precad Insurance 15.000 60 000 Building ASSETS Practice Set Wortb... Show all Practice Sct Workbc Download Info X Close Page 070 - ZOOM + L - Account (8,000) Alowance for Douborul Accounts Interest Receivable Office Supplies Merchandise Inventory Prepaid Insurance Land Dachboard 30 000 ASSETS Building Courses Calendar Accumulated Depreciation -- Building Equpment Accumulated Depreciation - Equipment Intang ble Asset -- Patent Accounts Payable Salarios Payable Income Taxos Payable Unearned Revenue Dividends Payable Interest Payable Noles Payable Common Stock Additional Paid-in Capital 50.000 200.000 (60.000 600.000 (100,000 30.000 50.000 12 000 12 00 30 000 15 000 22,000 LIABILITIES 230,000 EQUITY 172 200 Revenues and Expenses should be zero here REVENUES Rotaired Earnings Sales Revende Sales Discounts Sales Allowances Service Revenue Interest Income Cost of Goods Sold Advertising Cxpense Office Supplies Expenso Salanes Expense Utilities Expense Insurance Expensc Bad Debi Expense Depreciation Expense Amortzation Expense Miscellaneous Expense Interest Exocnsc Income Tax Experise Total EXPENSES Correct if the accounting equation is in balance, you will see the word "Correct", if not then you will find Practice Set Wortb... 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