Principles of Accounting Comprehensive Problem
Pippin Clothiers
	November 2015 Trial Balance
	DR	CR
Accounts Receivable	378,000
Allowance for Doubtful Accounts		25,000
Accumulated Depreciation- Building		79,000
Accumulated Depreciation- Equipment		45,600
Accumulated Amortization		3,000
Building	462,000
Cash	140,000
Equipment	167,230
Goodwill	24,000
Patents	60,000
Inventory	251,000
Land	251,000
Prepaid Insurance	5,800
Accounts Payable		277,000
Notes Payable		-
Unearned Revenue		10,000
Interest Payable		-
Common Stock ($5Par)		840,000
Paid-in Capital in Excess of Par Value		40,000
Retained Earnings		295,730
Sales		833,720
Sales Returns & Allowances	10,000
Amortization Expense	200
Bad Debt Expense	-
Cost of Goods Sold	501,350
Depreciation Expense- Building	10,000
Depreciation Expense- Euipment	5,600
Interest Expense	6,000
Insurance Expense	1,670
Entertainment Expense
Postage Expense
Miscellaneous Expense
Gain/Loss on Disposal of Equipment	-
Rent Expense	69,400
Utitlity Expense	11,000
Wages & Salaries Expense	94,800
Totals	$ 2,449,050	$ 2,449,050

Normal Journal Entries

Date	Transaction
Dec 1	Paid rent expense of $5,000 for December.
Dec 1	Took out bank note for $100,000 with an interest rate of 6%.
Dec 3	Purchased $400,000 of inventory terms 2/10 net 30
Dec 5	Sold land for cost $25,000.
Dec 8	Sold equipment with original cost of $30,000 and accumulated depreciation of $15,000 for $12,000.
Dec 9	Purchased building for $20,000.
Dec 10	Sold inventory on account for $400,000 with a cost of $200,000
Dec 11	Paid for inventory purchased December 3.
Dec 12	Paid postage $100, Miscellaneous $200, Entertainment $85 in cash.
Dec 15	Paid wages and salaries of $5,000.
Dec 18	Wrote off uncollectible account $15,000.
Dec 20	Received payment in full for sale on December 10.
Dec 31	Declared and paid dividends of $0.50 per share.
Dec 31	Paid wages and salaries of $5,000.

Adjusting Entries:

Accrue interest expense interest expense on bonds issued on December 1.

Depreciation expense for the month is $2,500 for building and $1,500 for equipment.

Accrue sales for goods sold of $25,000 with a cost of goods of $10,000.

Prepaid insurance of $400 expired in December.

Unearned revenue of $10,000 with a cost of $5,000 was earned during the month.

Amortization expense for the month $500.

Allowance for doubtful accounts is 3 percent of net sales rounded to the nearest dollar.

Instructions: Complete all steps in excel

Starting with the balances from page 1 complete the following steps in excel.

1. Journalize and post normal monthly transactions to general ledger accounts in T accounts.

2. Prepare trial balance.

3. Journalize and post adjusting entries in the same T accounts as #1 above.

4. Prepare adjusted trial balance.

5. Generate income statement, statement of retained earnings, and balance sheet and classified balance sheet.

6. Journalize and post closing entries in the same T accounts in #1 above.

7. Prepare post closing trial balance.

A couple of helpful hints:

1. Pattern your files after those in the book for your trial balances.

2. Be certain to include opening balances from November in your ledger accounts.

3. When making adjustment # 7 be certain to include ALL sales including those from adjusting entries. Some check figures for you: Net Income $282,153, Net Sales $1,258,720, Total Assets Balance $1,751,383 Cash Balance $165,615.

4. Remember to not give up. Start early. If you cannot come to my numbers, it is just as important that you finish and balance. There will be a slight deduction for not balancing.