11 Indiana Jones, Inc. 2 Summary of Account Balances 3 December 31, 2005 4 Accounts Balances 5 Cash 140,000 6 Short-term Investments 7 Accounts Receivable 42,000 8 Allowance for Doubtful Accounts (7,000) 9. Interest Receivable 10 Office Supplies 1,000 11 Merchandise Inventory 22,000 12 Prepaid Insurance 25,000 13 Land 50,000 14 Building 400,000 15 Accumulated Depreciation -- Building (80.000) 16 Equipment 500.000 17 Accumulated Depreciation -- Equipment (100.000) 18 Intangible Asset -- Patent 40 000 19. Accounts Payable 90 000 20 Salaries Payable 10 000 21 Income Taxes Payable 115 000 22 Unearned Revenue 50 000 23 Dividends Payable 10000 24 Interest Payable 160001 ASSETS LIABILITIES UES 24 Interest Payable 25 Notes Payable 26 Common Stock 27 Additional Paid-in Capital 15.000 350.000 100,000 230 000 EQUITY 163 000 REVENUES 1 1 - 28 Retained Earnings 29 Sales Revenue B0 Sales Discounts 31 Sales Allowances B2 Service Revenue 33 Interest Income 34 Cost of Goods Sold 35 Advertising Expense 36 Office Supplies Expense 37 Salaries Expense 38 Utilities Expense 39 Insurance Expense 10 Bad Debt Expense 11 Depreciation Expense 12 Amortization Expense 13 Miscellaneous Expense 14 Interest Expense 45 Income Tax Expense 46 EXPENSES - 1 8 Income Statement 9 For the Year Ended December 31, 2005 10 11 Net Sales Revenue 12 13 Cost of Goods Sold 14 15 Gross Margin 16 17 Operating Expenses: 18 Salaries Expense 19 Utilities Expense 20 Advertising Expense 21 Office Supplies Expense 22 Insurance Expense 23 Bad Debt Expense 24 Depreciation Expense 25 Miscellaneous Expense 26 Amortization Expense 27 Total Operating Expenses 28 29 Operating Margin 30 31 Other Income and Expenses: D E LL A B C 22 Insurance Expense 23 Bad Debt Expense 24 Depreciation Expense 25 Miscellaneous Expense 26 Amortization Expense 27 Total Operating Expenses 28 29 Operating Margin 30 31 Other Income and Expenses: 32 Interest Income 33 Service Revenue 34 Interest Expense 35 36 Income Before Taxes 37 38 Income Taxes 39 40 Net Income S S 42 Earnings Per Share 43 44 45 Date Description 1/1 BEGINNING BALANCES 1/8 Indiana pays off $30,000 of accounts payable 1/12 Indiana buys 300 units of inventory at a cost of $82 unit on credit, terms net/60. 1/19 Indiana sells 320 units to Belloq, Inc. for $290 each on credit, terms 2/15, net 45 1/21 Indiana pays the salaries payable balance from the beginning of the year. 1/31 Indiana collects the A/R owed by Lao Che from the beginning of the year in full (see instructions) 217 Indiana buys $3,000 of office supplies in cash. 2/15 Indiana pays off $30,000 of accounts payable. 2/18 Indiana collects the amount owed from Bellog, Inc from the 1/19 sale outside the discount period. 2 2127 Indiana provides the services owed to a client. The client paid $50,000 in advance last year. 3 3/4 Indiana pays off the 1/12 purchase. 3/8 Indiana writes of the Temple of Doom A/R balance as uncollectible (see instructions) 5 3/14 Indiana collects the A/R owed by Ark of the Covenant Inc. and Asp Co. (see instructions) 3124 Indiana buys 350 units of inventory at a cost of $85/unit on credit, terms net/60. 7 4/4 Indiana sells 280 units to Elsa Schneider, Lid. For $300 each on credit, terms 2/15, net:45 3 4/8 Indiana grants Elsa Schneider, Ltd. an allowance of $300 for damaged goods. 9 4/12 indiana collects the A/R owed by Elsa Schneider, Ltd. within the discount period. 0 4/25 Indiana pays for online advertising in the amount of $4,000 1 5/1 Indiana buys a short-term investment for $20,000 5/8 Indiana pays off the 3/24 purchase. 3 5/15 indiana buys 275 units of inventory at a cost of $87/unit on credit, terms net/60. 5/27 Indiana pays the income taxes payable amount from the beginning of the year balance 5 6/3 Indiana pays the dividends payable amount from the beginning of the year balance. hin 150 units of inventory at cost of $90nit on credit terms nato Date Description 613 Indiana pays the dividends payable amount from the beginning of the year balance. 6/27 Indiana buys 150 units of inventory at a cost of $90/unit on credit, terms net/60 7/3 Indiana sells 220 units to Brody Curators, Inc. for $305 each on credit, terms 2/15, net/45. 7710 Indiana pays off the 5/15 purchase. 7/17 Indiana collects the A/R owed by Brody Curators, Inc. within the discount period. 7/27 Indiana pays $5,000 of the interest payable it owes. 8/9 Indiana pays for postage, shipping costs, and other miscellaneous items (total of $1,000). 8/24 Indiana sells 130 units to Katanga Shipping for $305 each for cash. 8/27 Indiana pays off the 6/27 purchase. 9/1 Indiana buys 300 units of inventory at a cost of $93/unit on credit, terms net/60. 9/12 Indiana buys $500 of office supplies on credit terms net/60. 9/21 Indiana sells 250 units to Sallah Excavating, Inc. for $310 each on credit, terms 2/15, net45. 1014 Indiana sells 50 units to Ravenwood, LLC for $30 each for cash. 10:15 Indiana collects the A/R owed by Sallah Excavating, Inc. outside the discount period. 10/31 Indiana pays off the 9/1 purchase. 11/9 Indiana pays off the 9/12 purchase. 1 11/19 Indiana pays for online advertising in the amount of $8,000. 2 11/27 Indiana buys 175 units of inventory at a cost of $97/unit on credit, terms net/60. 3 1214 Indiana sells 100 units to Jock Lindsay for $315 each on credit, terms 2/15, net/45 12/12 Indiana pays Toht, Dietrich, and Gobler GmbH for miscellaneous expenses for $2,000. 5 12/16 Indiana collects the A/R owed by Jock Lindsay within the discount period, 6 12/29 Indiana declares a dividend of $10,000 to be paid next year. 7 12/31 Indiana provides services to Mola Ram Co for $50,000 on credit, terms 2/15, net/45 8 12/31 Indiana collection $8,000 from Brody Curators, Inc for services to be provided next year -9 00 Oh Beginning Balances Assets Cash : $ 110,000 Short term Inestments : Accounts Receivable: $42,000 Allowance for Duwbaru) Agrands : $-7000 Intrest Recivable Merchandise Inventory: $ 22,00 Office Supplies : $ 1.000 Prepaid Insurance : 325,000 Land: $ 59,000 Building : $ 400,000 Accumulated Depreciation (Building) :$ 80,000 Equipment: 500,000 Accumulated Depreciation (Equipment) $ - 100,000 Intangible Asset - Patent : 40,000 Liabities Accounts Payable :$60,000 Salarics Payable $ 10,000 Income taxes Payable S 15,000 Intrest Payable :$ 15,000 Unoormed Revenue: $ 50,000 Dividends Payable: $ 10,000 Modes Payable: $ 350,000 $ 100,000 Equity Common Stock : Additional Paid-in Capital: $ 230,000 Retained Earnings $ 163,000 Revenues Sales Revenue : Sales Discounts: Sales Allowances! Service Revenue : Intrest Income : Expenses Cost of Goods Sold: Salaries Expense : Advertising Expense : Office Supplies Expense! Utilities Expense: Insurance Expenses Bad Debt Expenses Depreciation Expense Amortization Expense: Miscellanous Expense : Intrest Expense : Income tax Expense: 11 Indiana Jones, Inc. 2 Summary of Account Balances 3 December 31, 2005 4 Accounts Balances 5 Cash 140,000 6 Short-term Investments 7 Accounts Receivable 42,000 8 Allowance for Doubtful Accounts (7,000) 9. Interest Receivable 10 Office Supplies 1,000 11 Merchandise Inventory 22,000 12 Prepaid Insurance 25,000 13 Land 50,000 14 Building 400,000 15 Accumulated Depreciation -- Building (80.000) 16 Equipment 500.000 17 Accumulated Depreciation -- Equipment (100.000) 18 Intangible Asset -- Patent 40 000 19. Accounts Payable 90 000 20 Salaries Payable 10 000 21 Income Taxes Payable 115 000 22 Unearned Revenue 50 000 23 Dividends Payable 10000 24 Interest Payable 160001 ASSETS LIABILITIES UES 24 Interest Payable 25 Notes Payable 26 Common Stock 27 Additional Paid-in Capital 15.000 350.000 100,000 230 000 EQUITY 163 000 REVENUES 1 1 - 28 Retained Earnings 29 Sales Revenue B0 Sales Discounts 31 Sales Allowances B2 Service Revenue 33 Interest Income 34 Cost of Goods Sold 35 Advertising Expense 36 Office Supplies Expense 37 Salaries Expense 38 Utilities Expense 39 Insurance Expense 10 Bad Debt Expense 11 Depreciation Expense 12 Amortization Expense 13 Miscellaneous Expense 14 Interest Expense 45 Income Tax Expense 46 EXPENSES - 1 8 Income Statement 9 For the Year Ended December 31, 2005 10 11 Net Sales Revenue 12 13 Cost of Goods Sold 14 15 Gross Margin 16 17 Operating Expenses: 18 Salaries Expense 19 Utilities Expense 20 Advertising Expense 21 Office Supplies Expense 22 Insurance Expense 23 Bad Debt Expense 24 Depreciation Expense 25 Miscellaneous Expense 26 Amortization Expense 27 Total Operating Expenses 28 29 Operating Margin 30 31 Other Income and Expenses: D E LL A B C 22 Insurance Expense 23 Bad Debt Expense 24 Depreciation Expense 25 Miscellaneous Expense 26 Amortization Expense 27 Total Operating Expenses 28 29 Operating Margin 30 31 Other Income and Expenses: 32 Interest Income 33 Service Revenue 34 Interest Expense 35 36 Income Before Taxes 37 38 Income Taxes 39 40 Net Income S S 42 Earnings Per Share 43 44 45 Date Description 1/1 BEGINNING BALANCES 1/8 Indiana pays off $30,000 of accounts payable 1/12 Indiana buys 300 units of inventory at a cost of $82 unit on credit, terms net/60. 1/19 Indiana sells 320 units to Belloq, Inc. for $290 each on credit, terms 2/15, net 45 1/21 Indiana pays the salaries payable balance from the beginning of the year. 1/31 Indiana collects the A/R owed by Lao Che from the beginning of the year in full (see instructions) 217 Indiana buys $3,000 of office supplies in cash. 2/15 Indiana pays off $30,000 of accounts payable. 2/18 Indiana collects the amount owed from Bellog, Inc from the 1/19 sale outside the discount period. 2 2127 Indiana provides the services owed to a client. The client paid $50,000 in advance last year. 3 3/4 Indiana pays off the 1/12 purchase. 3/8 Indiana writes of the Temple of Doom A/R balance as uncollectible (see instructions) 5 3/14 Indiana collects the A/R owed by Ark of the Covenant Inc. and Asp Co. (see instructions) 3124 Indiana buys 350 units of inventory at a cost of $85/unit on credit, terms net/60. 7 4/4 Indiana sells 280 units to Elsa Schneider, Lid. For $300 each on credit, terms 2/15, net:45 3 4/8 Indiana grants Elsa Schneider, Ltd. an allowance of $300 for damaged goods. 9 4/12 indiana collects the A/R owed by Elsa Schneider, Ltd. within the discount period. 0 4/25 Indiana pays for online advertising in the amount of $4,000 1 5/1 Indiana buys a short-term investment for $20,000 5/8 Indiana pays off the 3/24 purchase. 3 5/15 indiana buys 275 units of inventory at a cost of $87/unit on credit, terms net/60. 5/27 Indiana pays the income taxes payable amount from the beginning of the year balance 5 6/3 Indiana pays the dividends payable amount from the beginning of the year balance. hin 150 units of inventory at cost of $90nit on credit terms nato Date Description 613 Indiana pays the dividends payable amount from the beginning of the year balance. 6/27 Indiana buys 150 units of inventory at a cost of $90/unit on credit, terms net/60 7/3 Indiana sells 220 units to Brody Curators, Inc. for $305 each on credit, terms 2/15, net/45. 7710 Indiana pays off the 5/15 purchase. 7/17 Indiana collects the A/R owed by Brody Curators, Inc. within the discount period. 7/27 Indiana pays $5,000 of the interest payable it owes. 8/9 Indiana pays for postage, shipping costs, and other miscellaneous items (total of $1,000). 8/24 Indiana sells 130 units to Katanga Shipping for $305 each for cash. 8/27 Indiana pays off the 6/27 purchase. 9/1 Indiana buys 300 units of inventory at a cost of $93/unit on credit, terms net/60. 9/12 Indiana buys $500 of office supplies on credit terms net/60. 9/21 Indiana sells 250 units to Sallah Excavating, Inc. for $310 each on credit, terms 2/15, net45. 1014 Indiana sells 50 units to Ravenwood, LLC for $30 each for cash. 10:15 Indiana collects the A/R owed by Sallah Excavating, Inc. outside the discount period. 10/31 Indiana pays off the 9/1 purchase. 11/9 Indiana pays off the 9/12 purchase. 1 11/19 Indiana pays for online advertising in the amount of $8,000. 2 11/27 Indiana buys 175 units of inventory at a cost of $97/unit on credit, terms net/60. 3 1214 Indiana sells 100 units to Jock Lindsay for $315 each on credit, terms 2/15, net/45 12/12 Indiana pays Toht, Dietrich, and Gobler GmbH for miscellaneous expenses for $2,000. 5 12/16 Indiana collects the A/R owed by Jock Lindsay within the discount period, 6 12/29 Indiana declares a dividend of $10,000 to be paid next year. 7 12/31 Indiana provides services to Mola Ram Co for $50,000 on credit, terms 2/15, net/45 8 12/31 Indiana collection $8,000 from Brody Curators, Inc for services to be provided next year -9 00 Oh Beginning Balances Assets Cash : $ 110,000 Short term Inestments : Accounts Receivable: $42,000 Allowance for Duwbaru) Agrands : $-7000 Intrest Recivable Merchandise Inventory: $ 22,00 Office Supplies : $ 1.000 Prepaid Insurance : 325,000 Land: $ 59,000 Building : $ 400,000 Accumulated Depreciation (Building) :$ 80,000 Equipment: 500,000 Accumulated Depreciation (Equipment) $ - 100,000 Intangible Asset - Patent : 40,000 Liabities Accounts Payable :$60,000 Salarics Payable $ 10,000 Income taxes Payable S 15,000 Intrest Payable :$ 15,000 Unoormed Revenue: $ 50,000 Dividends Payable: $ 10,000 Modes Payable: $ 350,000 $ 100,000 Equity Common Stock : Additional Paid-in Capital: $ 230,000 Retained Earnings $ 163,000 Revenues Sales Revenue : Sales Discounts: Sales Allowances! Service Revenue : Intrest Income : Expenses Cost of Goods Sold: Salaries Expense : Advertising Expense : Office Supplies Expense! Utilities Expense: Insurance Expenses Bad Debt Expenses Depreciation Expense Amortization Expense: Miscellanous Expense : Intrest Expense : Income tax Expense