* the Previous sale on Dec.1 had $200,000 in sales revenue & Accounts receivable

*Need to record 3 accounts for this question. The previous sale on Dec. 11 had $248,575 in sales revenue & Accounts receivable

*need to record 3 accounts for this question

2 Instructions: 3 You are the controller at Star Wars, Inc., a wholesale distributor of light sabers and other interstellar weaponry. The corporation 4 was founded in galaxy far, far away a long time ago. The company has 420,000 share of common stock authorized with a par value 5 of $18. Currently, 28,000 shares are issued and outstanding. In your role as controller, you are responsible for the company's 6 accounting records, financial statement preparation, and ensuring that the company has adequate internal controls. You also 7 support management at Star Wars by providing required financial reports. You supervise a staff that takes care of the other 8 aspects of accounting, but ultimately you oversee all the functions of the accounting department. Star Wars, Inc. maintains a 9 calendar year-end (the books are closed on December 31 of each year). Adjusting entries are only prepared annually. 10 Therefore, when you prepare the adjusting entries, they will need to be for the entire year, not just for December. In order 11 to complete this practice set, you will need to record all regular transactions for the month of December, 2014 (all other regular 12 transactions have already been recorded for the year) and all of the year-end adjusting entries. You will journalize 13 all transactions and adjustments in the general journal, post them to the general ledger accounts, prepare an adjusted trial 14 balance, prepare the financial statements, prepare closing entries, and finally a post-closing trial balance for the year ended 15 December 31, 2014. 16 17 The following information pertains to the various accounting practices applicable to Star Wars, Inc. 18 1. Star Wars, Inc. maintains inventory using the perpetual method. All inventory costs are tracked using 19 first in, first out (FIFO) cost flows. (See the cost of goods sold sheet for details regarding inventory) 20 2. Purchases of inventory are recorded at the net amount (discounts are recognized on the date of purchase, if applicable) 21 The purchase terms are different for each supplier. Forfeited discounts are recorded separately as cost of goods sold. 22 3. Sales on account are subject to terms 2/15, n/40 and are recorded at gross value. 23 4. The company utilizes a general journal and general ledger, but also tracks detailed information on suppliers and customers in accounts payable and accounts receivable subsidiary ledgers, respectively. You will need to maintain the subsidiary ledgers. 25 5. Salaried employees are paid monthly at the end of the month (on the last day of the month). Hourly employees are paid Chart of Accounts: Name of Account Number of Accou Cash 101 Petty Cash 104 Accounts Receivable 111 Allowance for Doubtful Accounts 112 Notes Receivable 115 Interest Receivable 118 Inventory 120 Supplies 125 Prepaid Insurance 128 Prepaid Rent 130 Other Assets 131 Land 135 Buildings 140 Accumulated Depreciation - Buildings 141 Equipment 146 Accumulated Depreciation - Equipmen 147 Space Ships 155 Accumulated Depreciation - Space Ship 156 Notes Payable 200 Accounts Payable 201 Salaries and Wages Payable 210 FICA Taxes Payable 211 24 141 146 24 26 17 The following information pertains to the various accounting practices applicable to Star Wars, Inc. 18 1. Star Wars, Inc. maintains inventory using the perpetual method. All inventory costs are tracked using 19 first in, first out (FIFO) cost flows. (See the cost of goods sold sheet for details regarding inventory) 20 2. Purchases of inventory are recorded at the net amount (discounts are recognized on the date of purchase, if applicable) 21 The purchase terms are different for each supplier. Forfeited discounts are recorded separately as cost of goods sold. 22 3. Sales on account are subject to terms 2/15, n/40 and are recorded at gross value. 23 4. The company utilizes a general journal and general ledger, but also tracks detailed information on suppliers and customers in accounts payable and accounts receivable subsidiary ledgers, respectively. You will need to maintain the subsidiary ledgers. 25 5. Salaried employees are paid monthly at the end of the month (on the last day of the month). Hourly employees are paid every two weeks. Each two week pay period ends on the Friday of the second week. 27 6. The Company's chart of accounts is listed on the right side of this spreadsheet. 28 7. The Company uses the Allowance Method of accounting for bad debt. The Company calculates bad debt expense at the end 29 of the fiscal year at 5% of ending A/R (using the % of receivables method). 30 31 32 33 Check Figures: 34 Net Income $ 1,236,435 35 Total Assets $ 5,883,794 36 COGS $ $ 963,300 For December Accumulated Depreciation - Buildings Equipment Accumulated Depreciation - Equipmen Space Ships Accumulated Depreciation - Space Ship Notes Payable Accounts Payable Salaries and Wages Payable FICA Taxes Payable Income Taxes Payable Federal Withholding Taxes Payable State Withholding Taxes Payable FUTA Taxes Payable SUTA Taxes Payable Interest Payable Dividends Payable Notes Payable (long-term) Bonds Payable Discount on Bonds Payable Common Stock 147 155 156 200 201 210 211 212 213 214 215 216 225 226 230 232 233 300 Storm Troopers Unlimited receives a sales allowance for $41,000 for damaged units. This relates to the Dec. 1 sale. Accounts Receivable 243,000 Accounts Payable 146,000 20-Dec - Received payment from Princess Leia Co. from the Dec. 11 sale. 20-Dec Feuerai WILMINTOromg An uninhabited moon orbiting the planet of Star Wars, Inc.'s headquarters is acquired by issuing 20,000 shares of unissued common stock. The moon has a fair value of $1,200,000. The moon is immediately used for operations. The moon is considered land. Cash ec The Board of Directors of Star Wars Inc. declares a $2.50 per share cash dividend to be paid in January of the next year. You will need to determine the number of shares outstanding. See instructions for the beginning amount and don't forget to take into account previous transactions involving new shares issued. Take the amount directly out of retained earnings. ec