Record the accounts listed on the trial balance...

1. Record the accounts listed on the trial balance (page 6 of the instructions) on the general ledger sheets provided (pages WP-3 through WP-10). The balances of all of the accounts should be dated as of December 31, 20XX. (Make sure that you also write-in the account number for each of these general ledger accounts found on the chart of accounts, page 4 of these instructions).

2. Prepare the worksheet (WP-2) for year-end procedures Suggested steps are as follows:

a. Complete the chart of accounts that is provided for A. Duck Ponds, Inc. (page 4 of these instructions), i.e., state whether each account is an asset, liability, shareholders equity, revenue, or expense account.

b. Transfer the account names from the chart of accounts, (page 4 of these instructions) to the worksheet that is provided (WP-2). Make sure that you list all of these accounts on the worksheet (even if they dont currently have balances) and make sure that you list them in the order that they are listed on the chart of accounts.

c. Transfer the balances that you have from your general ledger (completed in step #1) to the worksheet started in step2.a. [Check figures are debit/credit = $428,940]

3. Prepare the required journal entries for the month-end based upon the information provided on page 5 of these instructions (a. j.). Suggested steps are as follows:

a. Based on the information provided in a. on page 5 (of these instructions), determine the required journal entry. Write up this journal entry on the General Journal sheets provided (WP-11 to WP-14). Make sure to properly date and label your journal entry (i.e., 1, 2, 3, etc). Start with the account to be debited first, then the account to be credited is written in next. Provide a description for each of your journal entries.

b. Post this journal entry from the General Journal to the proper accounts on your worksheet (WP-2). Indicate that you have posted the journal entry by making a squiggly line in the POST. REF. Column of the General Journal. (Remember, put this squiggly line on the far right side of this column because later we will need to enter the account number in this column when we post this journal entry to the general ledger. Dont do this yet, we have to complete the worksheet first!)

c. Now go back to page 5 (of these instructions), and perform the same steps from above (3.a. & 3.b.) for the information provided in b. through j.

d. After you have completed all of the required adjusting journal entries, make sure that your worksheet balances. To do this, add up all of the debits and all of the credits that you have made in the ADJUSTMENTS column of the worksheet. Your debits should equal your credits. [Check number = $28,462]

4. If your worksheet balances, it is now time to calculate the adjusted trail balance amounts on the worksheet. Once you have completed this step you need to once again make sure that your worksheet balances. Add up the debits and credits in the ADJUSTED TRIAL BALANCE column of the worksheets. Your debits should equal your credits. [Check number = $438,797 for debits and credits, Cash = $19,300; Accum Depr-Building = $29,580; Premium on bonds payable = $5,700; Revenue = $144,525]

5. Complete the INCOME STATEMENT and BALANCE SHEET columns of the worksheet. The debits and credits will not be equal, the difference for both of these sections should = $47,428 (Net Income for the period).

6. With the aid of your worksheet, prepare formal financial statements for A. Duck Ponds, Inc., for the year ended December 31, 20XX. [check figures, net income = $47,428, Total Assets = $287,593, Retained Earnings 12/31/20XX = $97,098.]

7. Post the adjusting journal entries from your general journal (WP-11 through WP-14) to the proper General Ledger accounts (WP-3 through WP- 10). When you have completed posting an amount from the General Journal to the General Ledger, enter the account number that you posted this AJE to in the POST. REF. Column of the General Journal.

8. Use General Journal sheet WP-11 through WP-14 to prepare closing entries. Post these closing entries to the General Ledger.

PG. 4 Chart of Accounts- A. Duck Ponds, Inc. Account Number Account Title Account Type

101 Cash Asset

115 Accounts Receivable

115.1 Allowance for Doubtful Accounts

117 Prepaid Rent

120 Supplies

130 Investment

130.1 Fair-Value Adjustment Trading Securities

140 Furniture

140.1 Accumulated Depreciation-Furniture

150 Equipment

150.1 Accumulated Depreciation Equipment

160 Building

160.1 Accumulated Depreciation-Building

201 Accounts Payable

210 Salaries Payable

215 Unearned Revenue, Customer Deposits

220 Interest Payable

250 Bonds Payable

250.1 Premium on Bonds Payable

307 Common Stock

318 Retained Earnings

319 Dividends

330 Income Summary

401 Revenue

501 Salary Expense

505 Rent Expense

515 Utilities Expense

520 Depreciation Expense-furniture

525 Depreciation Expense-equipment

526 Depreciation Expense-building

530 Advertising Expense

535 Supplies Expense

540 Bad Dept Expense

605 Interest Expense

630 Unrealized Gain (Loss) - Investments

PG. 5 COMPLETING THE ACCOUNTING CYCLE The trial balance of A. Duck Ponds, Inc., at December 31, 20XX, and the data needed for the year-end adjustments follow. (Round all results to the nearest whole dollar amount.)

a. The dollar value of supplies on hand at year end = $4,950, this was determined after taking a physical inventory.

b. Prepaid rent still in force at December 31, $1,200.

c. Depreciation on furniture for the year, $420.

d. Depreciation on building for the year, $980.

e. Depreciation on equipment for the year, $2,350.

f. At the end of the year, A. Duck Ponds, Inc. owed Hipster Hippo $360 and $420 to other employees of the company for work performed during the year just ended.

g. Unearned revenue, customer deposits still unearned at December 31, $4,025. h. A. Duck Ponds, Inc. uses the allowance method to determine their bad debt expense. The allowance for bad debts is based upon the balance in accounts receivable. Based upon past experience A. Duck Ponds, Inc. uses the rate of 0.75% (.0075) of accounts receivable to determine the appropriate balance in the Allowance for Doubtful accounts. Round the balance in this allowance account (your calculated year end balance) to the nearest whole dollar.

i. Bonds payable info: The principal amount (a.k.a. face value, par value, stated value) of these bonds = $150,000. These bonds have a 10 year term. The stated rate (a.k.a. contract rate, nominal rate, contract rate) of interest on these bonds = 5%. Theses bonds are dated July 1, 20XX (current year) and were sold on July 1, 20XX (current year) for the sum of $156,000. Interest on these bonds is to be paid semi-annually on January 1 and July 1 of each year.

An entry needs to be made for December 31 accrued interest due and for the appropriate amount relating to the amortization of the premium (use straight-line amortization for this premium). A check will be written and issued for the appropriate amount of interest due on January 1.

j. The investments that A. Duck Ponds currently has in their investment account (current asset) represents investments that were purchased recently. Based upon stock market quotes obtained for December 31, the market value of these investments = $112,000.

PG. 6 A. Duck Ponds, Inc. Trial Balance December 31, 20XX Account Title Debit Credit

Cash $19,300

Accounts receivable 47,630

Allowance for doubtful accounts 250

Prepaid rent 1,680

Supplies 6,800

Investments 113,520

Furniture 15,350

Accumulated depreciationfurniture 12,800

Equipment 44,600

Accumulated depreciationequipment 1,830

Building 89,900

Accumulated depreciationbuilding 28,600

Accounts payable 6,240

Salary payable Unearned revenue, customer deposits 19,750

Bonds payable 150,000

Premium of bonds payable 6,000

Common stock 20,000

Retained earnings 54,920

Dividends 5,200

Revenue 128,800

Salary expense 51,600

Rent expense 5,000

Utilities expense 10,410

Depreciation expense-furniture 0

Depreciation expense-equipment 0

Depreciation expense-building 0

Advertising expense 5,650

Supplies expense 12,000

Bad debts expense 0

Interest expense 0

Total $428,940 $428,940