Ultimate Frisbee, Inc. had the following post-closing trial balance as of December 31,
2019.
Ultimate Frisbee, Inc had the following transactions during 2020:
Debit Credit
Cash 35,000
Accounts Receivable 1,300
Inventory 4,200
Prepaid Insurance 7,000
Supplies 5,000
Building 240,000
Accumulated Deprec - Bldg 12,000
Office Equipment 9,000
Accumulated Deprec - Office Equip 2,000
Accounts Payable 2,300
LT Note Payable - Bank 100,000
Common Stock 42,000
Retained Earnings 143,200
301,500 301,500
Ultimate Frisbee, Inc.
Post Closing Trial Balance
12/31/2019

Jan 15 Issued common stock for $60,000
Feb 10 Purchased supplies on account for $4,750
Feb 25 Paid the invoice for Supplies that were purchased on Feb 10th
Apr 5 Purchased merchandise (Inventory) of 16,000 Frisbees at $1.15 per Frisbee on
account
Apr 10 Paid a Design Company cash to screen print your own logo and design on the frisbee
for .20 per Frisbee
May 5 Paid the invoice of April 5
May 10 Sold 3,000 of the Frisbees on account to Sports Fanatics, Inc., for $3.50 per Frisbee.
May 19 Received cash from the sale on May 10.
Jun 1 Issued a 60-day, 12% note (receivable) for $10,000 to Phil Dumphy, one of our
managers, who stumbled upon some legal trouble.
Jun 15 Sold 5,000 Frisbees on account to Win or Go Home, Inc., for $3.90 per Frisbee.
Jun 30 Paid sales salaries of $1,700 and office salaries of $1,200, utilities of $300, insurance
expense of $500 and travel expenses of $250
July 5 Purchased a Screen-Printing Machine by paying $3,000 in cash and signing a 90-day,
6% note for $7,000.
July 24 Received payment from Win or Go Home, Inc
Aug 1 Received amount owed on June 1 note, plus interest at the maturity date.
Sept 1 Sold 5,000 Frisbees to Players R Us, Inc, for $3.95 per Frisbee on Account.
Sep 5 Purchased land by issuing a $40,000, 12% 90-day note to Ace Development Co.
Oct 1 Received payment in full from Players R Us, Inc.
Oct 15 Paid off the Note for Equipment.
Nov 30 Paid sales salaries of $2,200 and office salaries of $1,100, utilities of $500, insurance
expense of $300 and travel expenses of $150
Dec 5 Paid in full the September 5 note at maturity.
Instructions:
1. Enter in your beginning balances from December 31, 2019
2. Journalize the above transactions and post to the ledger (T-accounts).

3. Based on the following data, prepare a bank reconciliation for December of the
current year:
a. Balance according to the bank statement at December 31, $80,448
b. Balance according to the ledger at December 31, _________

c. The following checks were still outstanding as of Dec 31, 2019:
Check #1234 $5,301
Check #1235 $10,300
Check #1236 $6,000
d. Interest earned, $100
e. Deposit in transit, not recorded by bank, $113
f. Bank debit memorandum for service charges, $55
g. A check for $200 in payment of an invoice was incorrectly recorded in the ledger
as $20
4. Based on the bank reconciliation prepared in 2 above, journalize the entry or
entries to be made by Ultimate Frisbee, Inc and post to the ledger (T-accounts).
5. Based on the above transactions, prepare an Unadjusted Trial balance.
6. Based on the following information, journalize the adjusting entries in your
Unadjusted Trial balance and prepare an Adjusted Trial Balance as of December
31, of the current year:
a. Accrued Sales Revenue, $3,600
b. Prepaid insurance expired during the year, $4,400.
c. Accrued Salaries for a 2-day period ending Dec 31st. Salaries of $1,500 are
typically paid weekly for a 5-day work week.
d. Accrued Interest expense for the 5yr, 3% Long Term Note Payable from the
Bank.
e. A physical count of supplies showed $4,900 left on hand.
f. Depreciation is computed as follows:
Asset Cost Residual
Value
Acquisition Date Useful
Life in
Years
Depreciation
Method Used
Buildings $240,000 $ 0 January 2, 2020 40 Straight-line
Office Equip. 9,000 1,000 January 3, 2019 4 Straight-line
Machine 10,000 1,000 July 5, 2020 5 Straight-line
7. Using your Adjusted Trial Balance, prepare an income statement, statement of retained earnings and balance sheet as of December 31,2020.
typically paid weekly for a 5-day work week.
d. Accrued Interest expense for the 5yr, 3% Long Term Note Payable from the Bank.
e. A physical count of supplies showed $4,900 left on hand.
f. Depreciation is computed as follows:
Asset Cost Residual
Value
Acquisition Date Useful
Life in
Years
Depreciation
Method Used
Buildings $240,000 $ 0 January 2, 2020 40 Straight-line
Office Equip. 9,000 1,000 January 3, 2019 4 Straight-line
Machine 10,000 1,000 July 5, 2020 5 Straight-line
7. Using your Adjusted Trial Balance, prepare an income statement, statement of retained earnings and balance sheet as of December 31,2020.