THIS IS HOW THE QUESTION IS POSTED ON THE HOMEWORK >>>>> THE ONLY THING I DID NOT INCLUDE IS THE CHARTS THAT WERE ALREADY COMPLETED PLEASE CAN SOMEONE HELP ME...AND EXPLAIN THIS TO ME

Rockford Corporation is a wholesale plumbing supply distributor. The corporation was organized in 1981, under the laws of the state of Illinois, with an authorized capitalization of 100,000 shares of no-par common stock with a stated value of $18 per share. The common stock is sold over the counter in the local area. You have been hired as of Thursday Dec. 25 2014 to replace the controller who has resigned. As controller you are responsible for the corporation's accounting records preparation of the financial statements safegaurding the corporate assets and providing management with financial information to set prices and to monitor and control operations.

Rockford Corporation closes its book annually on Dec. 31 but prepares financial statements quartely. Adjusting entries are posted to the geberal ledger only at yearend at the end of the first, second and third quarter the adjustments are entered only on a work sheet not in the general ledger. Therefore, the adjusting entries to be recorded on Dec.31 are annual adjustments that you must journalize and the post to the general ledger accounts before preparing the financial statements.

Rockford Corporation maintains a perpetual inventory sysytem and takes a physical count each year to adjust the inventory carrying amount. Purchase are recorded at the gross amount ( discounts taken are recognized at the date of payment) of supplier's invoice and the terms vary with each supplier. Sales on account are subject to terms of 1/10, n/30. Discounts are taken and granted only when the terms are met. The cost of all inventory sold in Dec. was 65% of sales price. The Corporation uses the following journals and ledgers:

Journals

1. A sale journal (S) - to record sales of merchandise on account.

2.A purchase journal (P) - tp record purchases of merchandise on account.

3. A cash receipts journal (CR) - to record all cash receipts

4. A cash disbursements journal (CD) - to record all cash payments.

5. ageneral journal (J) - to record all tranactions that cannot be recorded in other journals..

Ledgers

1. A general ledger

2. An accounts receivable subsidiary ledger.

3. An accounts payable subsidiary ledger.

In recording sales tractions each sale should be posted on the day of the sale directly to the customer's account in the subsidiary ledger, using the invoice number as the posting reference number in the subsidiary account. Also cash receipts from customers should be posted to the subsidary ledgar on the day they are received. The purchase order number should be used as the posting reference number in the subsidiary ledger for purchases on account from suppliers. Purchases from suppliers and payments to them should be posted daily. All other individual posting may be made weekly or at the monthend. Account numbers should be used as posting reference numbers in the journals. Officers and office personnel are salaried employees and are paid monthly on the last day of each month. The delivery truck drivers and warehouse employees are hourly wage employees and are paid biweekly. Each biweekly pay period ends Friday. On the following Monday you assistants provide you with a payrollsummary from which you prepare general journal entries to record the biweekly payroll and the employer;s taxes on the payroll. The biweekly employees paychecks are distributed on the following day (Tuesday)

The jan. 1 201 balances appear in the general ledger accounts as well as the Nov. 30 2014 balances for those accounts whose balances have changed. All transactions affecting the noncurrent accounts from Jan 1 2014 through Nov. 30 2014 with explanations appear in these accounts to facilitate the preparation of the statement of cash flows.

Subsidiary ledger account balances as of Nov. 30 2014 are as follow:

Accounts Receivable	Account Number	Amount
Boecker Builders	117	72,420
The Potts Company	122	42,300
Swanson Brothers Construction	133	28,750
A& B Hardware	143	-
Trudy's Plumbing	155	13,500
Coconino	160	31,700
Rankin Plumbing Corp	166	76,350
Beverly's Building Products	175	12,800
Bilder Construction Co	180	68,900
Iwanaga Plumbing and Heating	190	4,800
Total		351,520

Accounts Payable	Account Number	Amount
Phoenix Plastics	14	18,280
Business Basics Inc	16	-
Edward's Plumbing Suppliers	18	20,050
DeKalb Transport	20	-
Oxenford Copperworks	35	31,700
Smith Pipe Co	39	35,000
Ron & Rods Plumbing Products	44	14,850
Katan Steel Corp.	57	18,000
Total		137,880

The trransactions through Dec. 23 have already been recorded by the former controller. You are to begin your work by entering the transaction of Dec. 25 for the payment of cash to repurchase stock.

			Dec 14
S	M	T	W	T	F	S
	1	2	3	4	5	6
7	8	9	10	11	12	13
14	15	16	17	18	19	20
21	22	23	24	25	26	27
28	29	30	31

December Tranactions

1 Received a check in the amount of $28,463 from Swanson Brothers Contruction in full payment of invoice No. 1120 dated Nov. 26 in the amount of $28,750.

1 Sold dewer and drainage pipe to Beverly's Building Products on account invoice No. 1201 for $25050

2 Purchased copper tubing and fittings from Edwards Plumbing Supplies Inc. on account purchase order No. 315 for $ 35880 terms n/60

2 Issued check No. 1580 for $31700 to Oxenford Copperworks in settlement of the balance owned on purchase order No. 280

3. Acourt notice indicates that Iwanaga Plumbing and Heating is bankrupt and payment of its account improbable the president orders the account to be written off as a bad debt (invoice No. 780)

3 Sold bathroom fixtures to Bilder Construction Co on account invoice No 1202 for $42720

4 Received a check in the amount of $41877 from the Potts Co in full payment of invoice No. 1128 dated November 27 for $42300

4 Sold plumbing supplies and plasticpipe to Coconino Contractors Inc. on account invoice No. 1203 for $11200

4 Issued check No. 1581 for $1120 to Standard Oil Co in payment of gas oil and truck repair from Tierney's Standard Service.

5 Issued check No. 1582 for $17820 to Khatan Steel Corp. in full settlement of purchase order No. 312 for $18000

5 Issued check No. 1583 for $12,054 to Phoenix Plastics in full payment of Phoenix;s invoice dated Nov. 28 in the amount of $13,300 for purchase order No. 313 terms 2/10 n/30

5 Received a check in the amount of $75586 from Rankin Plumbing Corp. in full payment of invoice No. 1129 dated Nov 28 for $76350

8 Sold cast pipe to Trudy's Plumbing on account invoice No. 1204 for 23100

8 Received a check in the amount of $31700 from Coconion Contractors Inc. in full payment of invoice No. 1091 dated Oct. 20

8 Purchased bathroom fixtures from Phoenix Plastices on account purchases order No. 316 for $51900 terms 3/10 n/30

8 Received a check in the amount of $ 39100 from Boecker Builders in partial payment of balance outstanding covering invoice No. 1050 and 1071

9 The payroll summary for the biweekly pay period ended Friday Dec. 5 contained the following information:

Delivery and warehouse wages 5,890

FICA taxes withheld 450

Federal income taxes withheld 1,472

State income taxes withheld 471

Net pay 3,497

Employers's payroll taxes :

FICA tax 450

Federal unemployment tax -

State unemployment tax -

Issued check number 1584 for the amount of the net pay and deposited it in the payroll bank account. Individual payroll checks were then preppared for distributions to the biweekly employees on Tuesday Dec. 9 2014

9 Issued check No. 1585 for $790 to Scooter Gordon for lettering and sign painting on some delivery trucks

9 Issued check No. 1586 for $5980 to Phoenix Plastics in payment of Phoenix invoice dated Nov. 12 in the amount of $5980 our purchase order No. 299

10 Issued check No. 1587 for $34300 to Smith pipe Co. in full payment of their invoice dated Nov. 28 terms 2/15 n/30

10 Received a check in the amount of $13500 from Trudys Plumbing in full settlement of invoice No. 1106 dated November 7

10Sold pipe fixtures and accessories to Trudy's Plumbing on account invoice No. 1205 for $33850

11 Sold plumbing supplies and copper tubing to the Potts Company on account invoice number 1206 for $51450

11 Received a check in the amount of $33,320 from Boecker Builders in full payment of invoice No. 1071

11 Cash sales to date totaled $15258

12 Received a check in the amount of $22869 from Trudy's Plumbing in paymnet of invoice No. 1204

12 Sold plumbing fixtures and supplies to Boecker Builders on account invoice No. 1207

15 The Potts Co returned defective copper tubing that us purchased on Dec. 11. A credit memo in the amount of $5145 is issued relative to invoice No. 1206. The copper tubing had cost of $3344

15 The defective copper tubing is returned to Edwards Plumbing supplies Inc. along with a debit memo in the amount of $3344 in reduction of purchase order No. 315

15 Issued check check No. 1588 for $599 in payment of Nov. telephone bill to Northern Illinois Communications.

16 Issued check No. 1589 in the amount of $ 12,360 in payment of federal withholding taxes $10,573 and FICA taxes $1787 payable on November salaries and wages The check is remitted to the Winnebago County Bank as the depository.

16 Issued check No 1590 for $50,343 to Phoenix Plactices Inc in payment of purchase order No. 316

17 The president informs you taht Bilder Construction Co agrees to convert the $68900 overdue account receivable (invoice No. 1120) to a 6% note due six months from today

17 Purchased plumbing materials from Smith Pipe Company on account purchase order No. 1208 for $8,340

18 Sold fixtures and materials to Coconino Contractors Inc. on account invoice No. 1209 for $47,930

18 An invoice in the amount of $1,021 was received from S. White Trucking Comany for freight on purchase order No. 317 and paid by issing check No. 1591

18 Received a check in the amount of $33,512 from Trudys Plumbing in payment of in voice No. 1205

19 Purchase office supplies from the Pen & Pad issuing check No. 1592 in the amount of $1,460. (Note Debit asset account)

19 Purchased a new Faith computerfor $7600 from Business Basics Inc purchase order No. 318 paying $600 down through check No. 1593 with the balance due in thirty days (n/30). The computer has an estimated life of 6 years with a salvage value of $1600

22 Purchased bathroom and kitchen fixtures from Phoenix Plastics on account purchase order No. 3199 for $48,330 terms 1/10 n/30

22 Received a bill from DeKalb Transport for $3520 for freight costs incurred during the last 30 days terms n/30

23 The payroll summary for the biweekly pay period ended Friday Dec. 19 contained the following information:

Delivery and warehouse wages 5,780

FICA taxes withheld 442

Federal income taxes withheld 1,445

State income taxes withheld 462

Net pay 3,431

Employers payroll taxes:

FICA tax 442

Federal unemployment tax -

State unemployment tax -

Issued check No. 1594 for the amount of the net pay and deposited it in the payroll bank account. Individual payroll checks were then prepared for distributions to the biweekly employees on Tuesday Dec. 23

NOTE TRANSACTIONS UP TO THIS POINT HAVE BEEN RECORDED. AT THIS POINT YOU BECAME CONTROLLER AND ARE RESPONSIBLE FOR RECORDIGN ALL FUTHER TRANSACTIONS.

25 The board of directors voted to purchase 3,000 shares of its own stock from stockholder Dionne Schivone at $56 per share and issued check No. 1595 in payment. Stock repurchases are recorded at cost. Rockford is purchasing these shares because Ms. Schivone had been a valuable employee.

26 The board of directors declared a $1.50 per share cash dividend payable on Jan. 14 to shareholders of record by the end of the day of Dec. 26

26 The president informs you that Beverlys Building Prodects agrees to convert the $12,800 overdue accounts receivable (invoice No. 1119) balance to a 8% note due six months from today

29 A half acre parcel of land adjacent to the building is acquired in exchnage for 750 shares of unissed common stock. The land has a fair value of $50,000 and will be used immediately as an outside storage lot and parking lot

29 An invoice in the amount of $1060 is received from Wayne McManus lawyer for lawyer for legal services involved in the acquisition of the adjacent parcell of land check No. 1596 is issued

29 Sold pipe and plumbing materials to Boecker Builders on account invoice No. 1210 for $48,080

30 Issued check No. 1597 in the amount of $4,500 to the Northern Star for adverstisement run in the home building supplement of Dec. 13

30 Issued check No. 1598 in the amount of $1,830 to Standard Oil Co. in payment of gas oil and truck repairs from Standard Oil Co. (use Freight-out)

30 Purchased copper and cast iron pipe from Oxenford Copperworks on account purchase order No. 320 for $65,640 terms 1/10 n/30

30 Check No. 1599 for $12,400 is issed to the bond sinking fund trustee Chicago Trust Co. for deposit in the sinking fund (Use Other Assets)

30 Sold plumbing supplies to Swanson Brothers Construction on account invoice No. 1211 for $22,150

31 Received a check for $24,730 from Boecker Builders in payment of invoice No. 1207

31 Issued check No. 1600 for $54,569 to Smith Pipe Company in payment of purchase order No. 317

31 The custodian of the petty cash fund submits the following receipts for reimbursement and reports a cash-on-hand count of $ 8

Postage stamps used (supplies) $38

United Parcel (frieght out) 23

COD postage (freight costs) 51

Christmas office decorations (Misc exp) 30

Check No. 1601 is issued and cashed to reimburse the fund.

31 Sold an electric truck-lift to Leila Stierman Co. for $2600 cash. The original cost was $7,900 with salvage value of $900 a life of 10 years and accumulated depreciation recorded through 12/31/13 is $ 4,550. The straight line method is used. ( Note: the company follows the practice of recording a half year's depreciation in the year of acquisition and a ha;f year in the year of disposal) First bring the depreciation expense up to date in the general journal. Then journalize the entire entry for sale in the cash receipts journal.

31 sold bathroom fixtures and plumbing supplies to Trudy's Plumbing on account invoice No. 1212 for $50370.

31 Because for some time the petty cash fund has been smaller than required for montly expenditures the fund is increased by $105 by cashing check No. 1602 and placing the money in the petty cash fund.

31 The payroll summary for the monthly paid employees in submitted so that Dec. checks can be distributed before the year end the details are as follows:

Office and administrative salaries $43,900

Federal income taxes withheld 10,975

State income taxes withheld 3,512

FICA taxes withheld 3,358

Net Pay $26,055

Issued check No 1603 for the amount of the net pay and deposited it in the payroll bank account. Individuaal payroll checks were prepared for distribution to all monthly employees by the end of the day.

Employers payroll Taxes

FICA tax (all office and administrative) $3,358

Federal unemployment tax 0

State unemployemt tax 0

31 Cash sale since Dec. 12 total $52100

Instructions

1 Make the entries in the appropriate journal for Dec. 25 through Dec. 31. (adjusting entries are recorded in general journal)

2 Post any amounts to be posted as individual amounts from journals to the general ledger and update the receivable and payable subsidiary ledger accounts.(only a few entries are posted for Dec. e.g. account receivable. Please post all other entries)

3 Foot and cross-foot the columnar journals and complete the month-end postings of all books of orginal entry.

4 Prepare a trial balance by entering the account balance from the general ledger in the work sheet (list all accounts including those with zero balances)

5 From the following information prepare adjusting entries in the general journal and enter them in the work sheet.

a The annual provision for doubtful accounts receivables is recorded by providing a charge to Bad Debt Expense in an amount equal to 3% of net credit sale. All cash sales were excuted in Dec.

b An inventory count of the office supplies revealed $800 of supplies on hand at year end.

c the prepaid insurance on January 1 2014 was $3400 which covers the period January 1 through August 31 2014. The insurance premium of $6800 recorded Rockford estimates that 50% of the premiums are attributable to general activities (Use Insurance Expense) and 50 % to selling activities. (Use Miscellaneous Expense)

d The payroll summary for the employees who are paid bi weekly shows the following information at December 31 2014:

Delivery and Warehouse Wages $6,000

FICA Taxes payable 459

Federal Withholding Taxes 1,500

State Withholding Taxes 480.00

Net pay 3,561 (will pay in 2015)

e The employer share of the FICA tax (459) must be accrued no stae or federal unemployment tax is incurred during the forth quarter because all wages and salries earned during the last quarter excedd the maximum subject to unemployment tax.

f Interest has accured at 7% on the long-term notes payable since July 1 2014 These interest are due on January 1 2015 ( the first six month interest have been recorded and paid in July) Interest on bonds is accured and paid semi-annually at a 4% annual coupon rate. The next interest payment is due on Jan 1 2018 Market interest rate was 6 % at issurance. Use effective interest amortization method.

g The interest accrued to 12/31/14 on notes receivable is composed of the following:

Platteville Plumbers, 10% 6 months due March 31 2015 1052

Bilder Construction 6% 6 months due June 14 2015 161

Beverly's Building 8% 6 months due June 26 2015 23

$1236

The interest accrued at 12/31/14 on the note payable (current) of $16000 is $1250. Interest is payable on January 2 2015. ( The note is due in 2015)

h A warehouse lease payment of $8400 was made on September 1 2014. for rental through February 28 2015 ( The prepaid rent account is is for advance lease payments on the warehouse)

i $815 is owned to Northern Electric Co. and $425 is owned to City of Rockford for utility services proved during Dec. 2014

j Plant and equipment to be depreciated are composed of the following:

Assets	Date Acquired	Cost	Estimated usage or life	salvage value	depreciation on method
Building	7/1/2010	$306,000	25 years	$20,000	sum of years digits
Truck #1	4/1/2010	28,000	60,000 mile	3,100	miles driven
Truck #2	9/1/2011	33,000	60,000 mile	4,200	miles driven
Lift Truck #1	8/17/2007	7,900	10 years	900	straight-line
Lift Truck #2	3/29/2011	4,500	10 years	500	straight line
Lift Truck #3	9/16/2012	5,000	10 years	500	straight-line
Office Equipment	7/1/2012	32,800	7 years	2,000	straight- line
Computer	12/19/2014	7,600	4 years	1,600	Double-decling
*	Sold 12/31/14

Truck No. 1 has been driven 45,000 miles prior to 1/1/14 and truck No. 2 has been driven 30,500 miles prior to 1/1/14. During 2014 truck No. 1 was driven 10000 miles and truck No. 2 was driven 15000 miles. Remember that Rockford Company takes a half-years depreciation in the year of acquisition and half year in the year of sale.

6 Complete the worksheet. Compute State of Illinois corporate income taxes at 4.5% of pretax income. The state income tax is deductible on the federal tax return and the federal tax is not deductible on the illinois eturn. Assume federal corporate income tax on income subject to federal tax is as follows:

First $50000 15%

next 25000 25%

remainder 34%

Income between $100,000 and $ 335,000 is assessed a 5 % federal surtax not to exceed $11,750.00

7 Prepare the journal entry for income taxes. Post all adjusting entries.

8 Prepare 2014 income statement (assume the weighted average number of shares outstanding for the year 2014 is 5,600 shares) assume that bad debt expense and depreciation expense are administrative expenses.

9 Prepare 2014 statement of retained earnings

10 Prepare 2014 balance sheet