Widgets R Us Inc.
				Net Income
				Worksheet
	Post-Closing					Unadjusted					Adjusted		Income Statement			Balance Sheet
	Trial Balance		2017 Transaction Entries			Trial Balance		2017 Adjusting Entries			Trial Balance		For the Year Ended 12/31/17			12/31/2017
Note: 12/31/2016 is equivalent to 1/1/2017	12/31/2016		Dr.		Cr.	12/31/2017		Dr.		Cr.	12/31/2017		Dr.	Cr.		Dr.	Cr.
Cash	$2,136	1	$13,000	6	$490	$178	8a	10	8b	3	$175					$175
		3	1,775	9	48,400				8c	10
		5	50,725	10	336
		11	1,750	12	12,050
		15	1,320	13	1,193
				14	1,325
				16	1,716
				17	10
				18	8
				19	5,000
Petty Cash		17	10
		18	2			12					12					12
Certificate of Deposit		19	5,000			5,000					5,000					5,000
Accounts Receivable	1,650	1	56,250	2	200						0					0
				3	1,775
				4	750
				5	51,650	3,525					3,525					3,525
Allowance for Uncollectibles	-36	2	200			164			1	$269	-105						$105
Interest Receivable							7	25			25					25
Merchandise Inventory	3,100					3,100	2	1,510			4,610					4,610
Prepaid Insurance	154	10	336			490			3	329	161					161
						0					0
Building	5,100					5,100					5,100					5,100
Accumulated Depreciation - Building	-765					-765			4	255	-1,020						1,020
Furniture & Fixtures	2,000					2,000					2,000					2,000
Accumulated Depreciation - Furniture & Fixtures	-1,200					-1,200			4	400	-1,600						1,600
Computer Equipment	4,500					4,500					4,500					4,500
Accumulated Depreciation - Computer Equipment	-900					-900			4	900	-1,800						1,800
Copier	375					375					375					375
Accumulated Depreciation - Copier	-125					-125			4	125	-250						250
Accounts Payable	-3,450	8	1,000	7	47,500
		9	48,400			-1,550					-1,550						1,550
Note Payable	-1,500	16	1,500			0					0						0
Salaries Payable	-240	12	240			0			5	245	-245						245
Interest Payable	-216	16	216			0					0						0
Income Tax Payable	-1,193	13	1,193			0			9	3,521	-3,521						3,521
Unearned Rent Revenue	-260			15	1,320	-1,580	6	$1,024			-556						556
Common Stock ($10 Par Value)	-2,400			11	250	-2,650					-2,650						2,650
Additional Paid-in-Capital	-4,000			11	1,500	-5,500					-5,500						5,500
Retained Earnings	-2,730					-2,730					-2,730						2,730
Dividends Declared	0	14	1,325			1,325					1,325					1,325
Sales Revenue	0			1	69,250	-69,250					-69,250			$69,250
Sales Discounts		5	925	6	10	915					915		915
Sales Returns and Allowances		4	750
		6	500			1,250					1,250		1,250
Purchases	0	7	47,500			47,500			2	47,500	0
Purchase Returns and Allowances				8	1,000	-1,000	2	1,000
Cost of Goods Sold	0					0	2	44,990			44,990		$44,990
Salaries Expense	0	12	4,135			4,135	5	245			4,380		4,380
Administrative Expense	0	12	5,500				8b	3					0
		18	6			5,506					5,509		5,509
Selling Expense	0	12	2,175			2,175	8c	10			2,185		2,185
Bad Debt Expense	0					0	1	269			269		269
Insurance Expense	0					0	3	329			329		329
Depreciation Expense	0					0	4	1,680			1,680		1,680
Interest Expense													0
Interest Revenue									7	25
									8a	10	-35			$35
Rent Revenue	0								6	1,024	-1,024			1,024
Income Tax Expense	0						9	3,521			3,521		3,521
	0
TOTAL	$0		$245,733		$245,733	$0		$54,616		$54,616	$0		$65,028	$70,309		$26,808	$21,527
Net Income													$5,281				$5,281
													$70,309	$70,309		$26,808	$26,808

Part B: Extra Credit (19 Possible Points) - Due Thursday, May 4

(You must submit printouts of your work):

Prepare the required comparative financial statements for Widgets R Us, Inc. (the current year, 2017, should be on the left). Use the financial statements provided in the

solution to Practice Set 1B as your starting point.

The 2016 and 2017 income statements should be condensed, multiple-step in form, and classify their operating expenses into selling and administrative. Show the COGS, Selling Expense, and Administrative Expense calculations in separate schedules that support their respective one lines found on the condensed income statement. The payroll is 60% selling and 40% administrative. The insurance expense is 90% administrative and 10% selling. The depreciation expense on machinery is a selling expense, and the depreciation expense on the building and copier is an administrative expense. Bad debt expense is a selling expense.

Prepare simple statements of retained earnings for 2017 and 2016.

Prepare classified balance sheets at the end of 2017 and 2016 with Cash and Cash Equivalents in the first line of the current asset section. Include common stock information in the equity section (refer to the 2016 solution).

Prepare a complete statement of cash flows for 2017 and 2016. Use the direct

method to report cash flows from operating activities and the transaction-based statement of cash flows introduced earlier in this course. Tie out cash and cash equivalents as shown on the balance sheet not just the checking account balance