You are tasked with the preparation of a set of 2015 financial statements for BRONX BOMBERS, INC. acompany that purchases merchandise inventory for resale.You will be required to prepare journal entries (utilizing a general journal along with a set of specialjournals), the posting of those entries to both general and subsidiary ledger accounts, and preparation ofmonth-end adjustments, an adjusted trial balance, financial statements, and closing entries in order to readythe general ledger for 2015 activity. BRONX BOMBERS, INC. uses the following chart of accounts:Account NumberAccount Title100Cash110Accounts Receivable115Allowance for Doubtful Accounts (AFDA)120Interest Receivable130Inventory135Supplies140Prepaid Rent145Prepaid Insurance150Available for Sale Investments (non-current)160Land170Buildings175Accumulated Depreciation ? Buildings180Equipment185Accumulated Depreciation ? Equipment190Patents210Accounts Payable220Salaries Payable225Utilities Payable230Interest Payable235Unearned Rent240Income Taxes Payable245Dividends Payable250Notes Payable (non-current)300Common Stock310Additional Paid-In Capital320Retained Earnings325Dividends330Accumulated Other Comprehensive Income350Treasury Stock

2

400 Sales Revenue

402Sales Returns & Allowances404Sales Discounts410Interest Revenue420Rent Revenue430Dividend Revenue500Cost of Goods Sold505Purchases507Purchase Returns & Allowances508Purchase Discounts510Salaries Expense515Bad Debt Expense520Rent Expense530Depreciation Expense ? Buildings535Depreciation Expense ? Equipment540Patent Amortization Expense550Utilities Expense555Supplies Expense560Insurance Expense570Interest Expense590Income Tax Expense

Bronx Bombers, Inc. is a calendar-year firm that has been in business in the USA for the past ten years.Your job is to maintain the accounting records of Bronx Bombers, Inc. for the month of December,prepare theannualfinancial statements (income statement, balance sheet, and statement of cash flows?using the direct method) as of December 31, 2015, and then close the nominal accounts to prepare theaccounting records for 2015 entries.BRONX BOMBERS, INC. utilizes the following five journals:

?Sales journal ? this journal isexclusively used to record all credit sales

?Purchases journal ? this journal isexclusively used to record all purchases of inventory items

on credit

?Cash Receipts journal ? this journal isexclusively used to record all transactions that involve areceipt of cash

?Cash Disbursements journal ? this journal isexclusively used to record all transactions thatinvolve a cash payment

?General journal ? this journal is used to record all transactions thatare notrecorded in one of thespecial journals above

BRONX BOMBERS, INC. also maintains both a general ledger and two subsidiary ledgers: ?A/R Subsidiary ledger ? this ledger contains the specific balances owed to BRONX BOMBERS, INC. by individual customers ?A/P Subsidiary ledger ? this ledger contains the specific balances owed by BRONX BOMBERS,INC. to individual suppliers of merchandise inventory A/R Subsidiary Ledger CustomerCustomer #Date of SaleBalance OwedM Krohngold110-127/20/15$8,000J Goar110-259/13/1522,000C Winters110-3310/25/1516,000J Tishman110-4411/22/1560,000P O?Malley110-4611/24/1524,000C Becker110-4711/28/1530,000A/R Balance ? 11/30/15 $160,000 All credit sales are made to customers on the following terms: 2/15, n/30. Payments received fromcustomers are first credited towards the oldest balances in determining any applicable discount. A/P Subsidiary Ledger SupplierVendor #Date of PurchaseBalance OwedNole Industries210-1711/07/15$36,000TH, Inc.210-2011/18/1524,000DevilCo210-2211/27/1540,000A/P Balance ? 11/30/14 $100,000 All credit purchases of inventory are made from suppliers that offer different terms for prompt payment.For the existing balances (and any new purchases), terms are:Nole Industries: 2/30, n/60TH, Inc.: 3/15, n/30DevilCo: n/30 4 Case Requirements: Please prepare the following for turn-in:1.Five journals (SJ, PJ, CRJ, CDJ, and the GJ) with December transactions, year-end adjustments, andclosing entries recorded appropriately,2.The two subsidiary ledgers (A/R and A/P) and the General Ledger with December postings and year-end balances,3.An adjusted trial balance as of December 31, 20154.An Income Statement for the year ended December 31, 2015,5.A Balance Sheet as of December 31, 2015, and6.A Statement of Cash Flows (Direct Method) for the year ended December 31, 2015, with requiredsupplementary disclosures.The General and Subsidiary ledger accounts have been updated to reflect correct Nov. 30, 2015 balances(except forInventoryandRetained Earnings, which are not adjusted until year-end). Your job is tojournalize the December transactions that follow below, post these entries to the appropriate ledgeraccounts, prepare adjusting entries (for the month of December?all adjustments through Nov. 30 havebeen made) and post these to the appropriate ledger accounts, prepare an adjusted trial balance as of Dec.31, 2015, prepare the three required financial statements, and then prepare and post-closing entries toprepare the general ledger for 2015. All students must prepare their own solution to this project. You may work with other students tosolve issues and you may discuss your work with each other. However, every student must turn inan individual solution to the practice set. December Transactions for BRONX BOMBERS, INC. ? Note that all payments to suppliers andreceipts from credit customers are always net of any applicable purchase or sales discounts(assume these discounts are always taken if payments occur within the appropriate discountperiod). Dec 1Purchased 15,000 shares of previously issued BRONX BOMBERS, INC. common stock for $150,000 and placed in treasury. Paid weekly cash payroll of $5,000. December 1 is a Friday--$4,000 of salaries were accruedon November 30 and reported appropriately as part of salaries expense on the previousmonths? income statement. Sold $30,000 of inventory to C Winters on credit (invoice #12010).Made cash sales of $18,000. 5 Dec 4Received cash payment from J Tishman for balance owed.Paid Nole Industries invoice for balance owed.Accepted a sales return from P O?Malley for a $4,000 item. P O?Malley paid her balance due after the return. Dec 5Paid the November Utilities bill of $7,500 (this was recognized as an expense in November).Wrote off the balance owed by M Krohngold as uncollectible.Received a payment from C Winters that reduced his balance owed by $10,000.Dec 6Bought inventory from a new supplier, CavalierCorp (Vendor# 210-25) on credit in theamount of $75,000 (invoice #CC1206). Cavalier?s terms for repayment are 3/10, n/30.Received payment in full from C Becker.Made a credit sale to a new customer, S Riley (customer # 110-48), in the amount of $40,000 (invoice #12011). Dec 7Returned $18,000 of merchandise purchased from DevilCo (wrong items). Paid balance due after return. Received a check for payment in full from J Goar.Dec 8Recorded weekly cash sales of $20,000.Paid weekly cash payroll of $5,000.Dec 11Paid TH, Inc. balance owed.Paid CavalierCorp balance owed. Bought inventory items from Nole Industries on credit for $25,000 (invoice #NI1211).Dec 12Received a check from C Winters that reduced his balance owed by $20,000.Received dividends of $25,000 from our investment in Hokie, Inc (an AFS investment).Sold additional merchandise on credit to S Riley for $20,000 (invoice #12012).Dec 13Bought inventory from TH, Inc. for $35,000 on credit (invoice #TH1213).S Riley returned an item purchased on Dec 12 (amount = $5,000). 6 Received a check from S Riley for 12/6 purchase. Amount fully satisfied balance owed for that purchase.

Please see attachment for the full details.

Acct 6031 - Fall 2016 Accounting Practice Set This case is designed to reinforce certain technical accounting skills that are a prerequisite to a solid understanding of the generally accepted accounting principles that underlie preparation of general purpose financial statements. You are tasked with the preparation of a set of 2015 financial statements for BRONX BOMBERS, INC. a company that purchases merchandise inventory for resale. You will be required to prepare journal entries (utilizing a general journal along with a set of special journals), the posting of those entries to both general and subsidiary ledger accounts, and preparation of month-end adjustments, an adjusted trial balance, financial statements, and closing entries in order to ready the general ledger for 2015 activity. BRONX BOMBERS, INC. uses the following chart of accounts: Account Number Account Title 100 Cash 110 Accounts Receivable 115 Allowance for Doubtful Accounts (AFDA) 120 Interest Receivable 130 Inventory 135 Supplies 140 Prepaid Rent 145 Prepaid Insurance 150 Available for Sale Investments (non-current) 160 Land 170 Buildings 175 Accumulated Depreciation - Buildings 180 Equipment 185 Accumulated Depreciation - Equipment 190 Patents 210 220 225 230 235 240 245 250 Accounts Payable Salaries Payable Utilities Payable Interest Payable Unearned Rent Income Taxes Payable Dividends Payable Notes Payable (non-current) 300 310 Common Stock Additional Paid-In Capital 1 320 325 330 350 Retained Earnings Dividends Accumulated Other Comprehensive Income Treasury Stock 2 400 402 404 410 420 430 Sales Revenue Sales Returns & Allowances Sales Discounts Interest Revenue Rent Revenue Dividend Revenue 500 505 507 508 510 515 520 530 535 540 550 555 560 570 590 Cost of Goods Sold Purchases Purchase Returns & Allowances Purchase Discounts Salaries Expense Bad Debt Expense Rent Expense Depreciation Expense - Buildings Depreciation Expense - Equipment Patent Amortization Expense Utilities Expense Supplies Expense Insurance Expense Interest Expense Income Tax Expense Bronx Bombers, Inc. is a calendar-year firm that has been in business in the USA for the past ten years. Your job is to maintain the accounting records of Bronx Bombers, Inc. for the month of December, prepare the annual financial statements (income statement, balance sheet, and statement of cash flowsusing the direct method) as of December 31, 2015, and then close the nominal accounts to prepare the accounting records for 2015 entries. BRONX BOMBERS, INC. utilizes the following five journals: Sales journal - this journal is exclusively used to record all credit sales Purchases journal - this journal is exclusively used to record all purchases of inventory items on credit Cash Receipts journal - this journal is exclusively used to record all transactions that involve a receipt of cash Cash Disbursements journal - this journal is exclusively used to record all transactions that involve a cash payment General journal - this journal is used to record all transactions that are not recorded in one of the special journals above 3 BRONX BOMBERS, INC. also maintains both a general ledger and two subsidiary ledgers: A/R Subsidiary ledger - this ledger contains the specific balances owed to BRONX BOMBERS, INC. by individual customers A/P Subsidiary ledger - this ledger contains the specific balances owed by BRONX BOMBERS, INC. to individual suppliers of merchandise inventory A/R Subsidiary Ledger Customer Customer # M Krohngold 110-12 J Goar 110-25 C Winters 110-33 J Tishman 110-44 P O'Malley 110-46 C Becker 110-47 A/R Balance - 11/30/15 Date of Sale 7/20/15 9/13/15 10/25/15 11/22/15 11/24/15 11/28/15 Balance Owed $8,000 22,000 16,000 60,000 24,000 30,000 $160,000 All credit sales are made to customers on the following terms: 2/15, n/30. Payments received from customers are first credited towards the oldest balances in determining any applicable discount. A/P Subsidiary Ledger Supplier Vendor # Nole Industries 210-17 TH, Inc. 210-20 DevilCo 210-22 A/P Balance - 11/30/14 Date of Purchase Balance Owed 11/07/15 $36,000 11/18/15 24,000 11/27/15 40,000 $100,000 All credit purchases of inventory are made from suppliers that offer different terms for prompt payment. For the existing balances (and any new purchases), terms are: Nole Industries: 2/30, n/60 TH, Inc.: 3/15, n/30 DevilCo: n/30 4 Case Requirements: Please prepare the following for turn-in: 1. Five journals (SJ, PJ, CRJ, CDJ, and the GJ) with December transactions, yearend adjustments, and closing entries recorded appropriately, 2. The two subsidiary ledgers (A/R and A/P) and the General Ledger with December postings and year-end balances, 3. An adjusted trial balance as of December 31, 2015 4. An Income Statement for the year ended December 31, 2015, 5. A Balance Sheet as of December 31, 2015, and 6. A Statement of Cash Flows (Direct Method) for the year ended December 31, 2015, with required supplementary disclosures. The General and Subsidiary ledger accounts have been updated to reflect correct Nov. 30, 2015 balances (except for Inventory and Retained Earnings, which are not adjusted until year-end). Your job is to journalize the December transactions that follow below, post these entries to the appropriate ledger accounts, prepare adjusting entries (for the month of Decemberall adjustments through Nov. 30 have been made) and post these to the appropriate ledger accounts, prepare an adjusted trial balance as of Dec. 31, 2015, prepare the three required financial statements, and then prepare and post-closing entries to prepare the general ledger for 2015. All students must prepare their own solution to this project. You may work with other students to solve issues and you may discuss your work with each other. However, every student must turn in an individual solution to the practice set. December Transactions for BRONX BOMBERS, INC. - Note that all payments to suppliers and receipts from credit customers are always net of any applicable purchase or sales discounts (assume these discounts are always taken if payments occur within the appropriate discount period). Dec 1 Purchased 15,000 shares of previously issued BRONX BOMBERS, INC. common stock for $150,000 and placed in treasury. Paid weekly cash payroll of $5,000. December 1 is a Friday--$4,000 of salaries were accrued on November 30 and reported appropriately as part of salaries expense on the previous months' income statement. Sold $30,000 of inventory to C Winters on credit (invoice #12010). Made cash sales of $18,000. 5 6 Dec 4 Received cash payment from J Tishman for balance owed. Paid Nole Industries invoice for balance owed. Accepted a sales return from P O'Malley for a $4,000 item. P O'Malley paid her balance due after the return. Dec 5 Paid the November Utilities bill of $7,500 (this was recognized as an expense in November). Wrote off the balance owed by M Krohngold as uncollectible. Received a payment from C Winters that reduced his balance owed by $10,000. Dec 6 Bought inventory from a new supplier, CavalierCorp (Vendor# 210-25) on credit in the amount of $75,000 (invoice #CC1206). Cavalier's terms for repayment are 3/10, n/30. Received payment in full from C Becker. Made a credit sale to a new customer, S Riley (customer # 110-48), in the amount of $40,000 (invoice #12011). Dec 7 Returned $18,000 of merchandise purchased from DevilCo (wrong items). Paid balance due after return. Received a check for payment in full from J Goar. Dec 8 Recorded weekly cash sales of $20,000. Paid weekly cash payroll of $5,000. Dec 11 Paid TH, Inc. balance owed. Paid CavalierCorp balance owed. Bought inventory items from Nole Industries on credit for $25,000 (invoice #NI1211). Dec 12 Received a check from C Winters that reduced his balance owed by $20,000. Received dividends of $25,000 from our investment in Hokie, Inc (an AFS investment). 7 Sold additional merchandise on credit to S Riley for $20,000 (invoice #12012). Dec 13 Bought inventory from TH, Inc. for $35,000 on credit (invoice #TH1213). S Riley returned an item purchased on Dec 12 (amount = $5,000). Received a check from S Riley for 12/6 purchase. Amount fully satisfied balance owed for that purchase. 8 Dec 14 Sold merchandise to J Tishman ($8,000invoice #12013) and C Becker ($12,000invoice #12014)both on credit. Returned $6,000 of merchandise to Nole Industries (wrong sizes) and paid balance due. Dec 15 Recorded weekly cash sales of $32,000. Paid weekly cash payroll of $5,000. Received a check from S Riley in full settlement of balance owed. Dec 18 Bought office supplies on credit for $15,000 from OfficeMin (open a new A/P in the subsidiary ledger--Vendor # 210-30). Invoice # is OM1218. OfficeMin's terms are n/30. Purchased inventory from CavalierCorp on credit for $30,000 (invoice #CC1218). Purchased inventory from an independent artist for $12,000 cash. Dec 19 Received the December Utilities bill (to be paid in January) in the amount of $8,000. No A/P account needs to be createdcredit Utilities Payable for balance owed. The annual dividend of $1/share is declared. The dividend will be distributed to shareholders on January 19, 2016. BRONX BOMBERS, INC. recorded the declaration by debiting the Dividends account. Dec 20 Paid staff a Holiday bonus of $8,000 (record as Salaries Expense). Received a check from C Becker for payment of balance owed. Dec 21 Paid TH, Inc. balance due. Sold merchandise to C Winters on credit for $24,000 (invoice #12015). Purchased land for $600,000. A $120,000 cash down payment was required and a $480,000 note was accepted by the seller for the balance. Dec 22 Paid weekly cash payroll of $5,000. Recorded weekly cash sales of $40,000. 9 Closed for the Holidayswill reopen on January 2, 2016. 10 Information for Adjusting Entries as of 12/31/15 Rent Expense is $4,000/month and was prepaid on January 1, 2015 for two years. Insurance for the month of December was $2,500. A policy that expires in 2015 provided coverage. A physical count of inventory finds the 12/31/15 balance to be $275,000 (see * below for help). The AFS Investments account consists of two separate investments (both were purchased in a prior year) as follows (credit AOCI for increase in fair value): 1) Hokie, Inc. common stock - fair market value at 12/31/15 = $160,000. 2) Bonds issued by TerpCo. Fair market value at 12/31/15 = $140,000. Interest earned in December (to be received from TerpCo in June 2016) equals $3,600. An analysis of the A/R subsidiary ledger reveals that an allowance of $20,000 is necessary for anticipated uncollectible account balances. Depreciation on the Buildings is $4,000/month. Depreciation on the remaining Equipment is $1,800/month. The Patent was originally acquired on January 1, 2015 for $180,000 cash and has a ten-year life (from the acquisition date) and no salvage value. Supplies on hand at 12/31/15 were $10,000. Accrued interest on the $300,000 note payable and the new $480,000 note for the month of December totals $8,000 (to be paid in 2016). We are subleasing some extra office space to BC LLC for $8,000 month. BC prepaid twelve months rent on June 1, 2015. The income tax rate for 2015 is 35%. * BRONX BOMBERS, INC. is using a periodic inventory system that produces an amount for COGS indirectly. An adjusting entry is required at year-end to update the inventory account balance to the correct year-end amount (given) and to transfer the balances from other accounts to COGS. As an example assume that the inventory count at year-end (when compared to last year's balance) indicates a decline of $5,000. Also assume that amounts recorded for purchases, 11 purchase returns and allowances, and purchase discounts are as indicated in this example. The required adjusting entry is: COGS 27,500 (plug figure) Purchase Returns and Allowances 2,000 Purchase Discounts 500 Purchases 25,000 Inventory 5,000 12 Additional Information needed for Preparation of the Statement of Cash Flows Balances at 1/1/14: Cash $848,600 A/R 50,000 AFDA (10,000) Inventory 300,000 Prepaid Rent -0Prepaid Insurance -0Interest Receivable -0Supplies 10,000 Dividends Payable$80,000 A/P 60,000 Salaries Payable -0Utilities Payable 7,000 Interest Payable 25,000 Unearned Rent -0Income Taxes Payable99,000 The only change among the long-term assets (other than those described in the December activity) was the acquisition of a patent on 1/1/15 for $180,000 cash. The AFS investments were both purchased in 2011. There were no changes in any stockholders' equity accounts during the months of January - November. The adjustment required to compute \"Cash received from Customers\" when there is a separate Allowance account needs special attention. Assume that A/R increased by $40,000 (from $300,000 to $340,000) and that AFDA also increased by $5,000 (from $10,000 to $15,000) over the year. In addition, assume that Bad Debt Expense recognized on the income statement equals $20,000 and Sales Revenue for the year was $500,000. Cash Received from Customers (Direct Method) Cash A/R Bad Debt Expense AFDA Sales Revenue (net) 445,000 40,000 20,000 (plug figure) 5,000 500,000 For the indirect method, we can simply make an adjustment for the net change in A/R and ignore bad debt expenseusing the numbers above, the required adjustment would be: A/R (net) - 1/1$290,000 ($300,000 A/R less $10,000 AFDA balance) A/R (net) - 12/31$325,000 ($340,000 A/R less $15,000 AFDA balance) Net increase = $35,000. This amount should be deducted from net income in converting to cash flow from operating activities. It is also unnecessary to make a separate adjustment for bad debt expense when following this approach. 13 Using Special Journals I have provided an example entry into each of the five journals based on the following activity: 1. A credit sale in the amount of $2,000 is made to Customer X (invoice #123) on 1/1/14. Terms are: 2/15, n/30. This will be recorded in the sales journal. The sales journal is used to record all credit sales (but no other transactions). 2. A credit purchase of merchandise inventory in the amount of $3,000 is made from Supplier Y (invoice #Y44) on 1/5/14. Terms are 3/10, n/30. This will be recorded in the purchases journal. All credit purchases of inventory are recorded in the purchases journal. 3. Customer X returns $500 of merchandise (from 1/1 sale above) on 1/10/14. This will be recorded in the general journal. The general journal is reserved for transactions that do not involve cash (those will be recorded in either the cash receipts or cash disbursements journal) and are not credit sales or purchases. 4. Customer X sends a check on 1/12/14 for the balance due. This will be recorded in the cash receipts journal. Since the payment is made within the applicable discount period the customer has reduced the check amount by the 2% discount offered for prompt payment. 5. We send Supplier Y a check on 1/13/14 for the balance due. This will be recorded in the cash disbursements journal. Since the payment is made within the applicable discount period we have reduced the check amount by the 3% discount offered for prompt payment. Entries Sales Journal (SJ) DateA/R Subsidiary Acct # Customer Name 1/1 110-15 Customer X Invoice # 123 Amount 2,000 This sale should be immediately posted to the subsidiary A/R ledger account for Customer X (\"on the fly\" so to speak). That way, a current balance for each customer is always at hand. Do not post to general ledger control account A/R until all transactions are journalized. Then, sum the amount column and post a single amount (the total credit sales for the period) to two GL accountsdebit A/R and credit Sales Revenue. Purchases Journal (PJ) DateA/P Subsidiary Acct # Supplier Name 1/5 210-27 Supplier Y Invoice # Y44 Amount 3,000 This purchase of merchandise inventory should be immediately posted to the subsidiary A/P ledger account for Supplier Y. Wait and post to the GL control 14 account A/P until after all transactions are journalized. Then, sum the amount column and post a single amount to two GL accountsdebit Purchases and credit A/P. 15 General Journal (GJ) Date 1/10 Account Name/GL Account # Sales Returns and Allowances/402 A/R - Customer X/110 Debit Credit 500 500 Immediately post the credit to the subsidiary A/R ledger account for Customer X to maintain a current balance. Wait and post both the debit and credit to the two GL accounts (Sales Returns and Allowances and A/R) after all transactions have been journalized. Cash Receipts Journal (CRJ) Date Explanation Cash A/R Sales OtherOther Acct Name/GL Acct # 1/12Pmt received from X1,470(1,500) 30 Sales Discounts/404 Post the $1,500 credit to the subsidiary A/R ledger account for Customer X immediately to maintain a current balance (now zero after the return and the payment). The $1,470 is calculated as: $1,500 x 2% discount = $30. $1,500 owed less $30 discount = $1,470 paid. Once all transactions have been journalized, post to GL accounts as follows: Sum the Cash, A/R and Sales columns and post these totals to Cash (debit), A/R (credit), and Sales Revenue (credit). Do not sum the \"Other\" columnthese amounts must be individually posted to the GL account listed in the \"Other Acct Name\" column. In this example the $30 should be posted to the Sales Discounts account as a debit. It may help to jot down the entry on scratch paper in general journal style (but remember it does not appear in the general journalonly in the cash receipts journal): Cash Sales Discounts A/R 1,470 30 1,500 Cash Disbursements Journal (CDJ) Date 1/13 Explanation Cash A/PPurchasesOtherOther Acct Name/GL Acct # Pmt made to Y (2,910)3,000 (90) Purchase Discounts/508 Post the $3,000 debit to the subsidiary A/P ledger account for Supplier Y immediately to maintain a current balance (now zero after the payment). The $2,910 is calculated as: $3,000 x 3% discount = $90. $3,000 owed less $90 discount = $2,910 paid. Once all transactions have been journalized, post to GL accounts as follows: Sum the Cash, A/P and Purchases columns and post these totals to Cash (credit), A/P (debit), and Purchases (debit). 16 Do not sum the \"Other\" columnthese amounts must be individually posted to the GL account listed in the \"Other Acct Name\" column. In this example the $90 should be posted to the Purchase Discounts account as a credit. As above, the \"journal style\" entry may help with debits/credits: A/P 3,000 Cash Purchase Discounts 2,910 90 17 Bronx Bombers, Inc. - Sales Journal Date A/R Acct # Customer Name Invoice # Amount Bronx Bombers, Inc. - Purchases Journal Date A/P Acct # Supplier Name Invoice # 18 Amount Bronx Bombers, Inc. - Cash Receipts Journal Date Explanation Cash DR A/R (CR) Sales (CR) 19 Other DR/(CR) Other Acct. Name/GL Acct # Bronx Bombers, Inc. - Cash Disbursements Journal Date Explanation Cash (CR) A/P DR Purchases DR 20 Other DR or (CR) Other Acct. Name/GL Acct # Bronx Bombers, Inc. - General Journal (December Transactions) Date Account Name/GL Account # 21 Debit Credit Bronx Bombers, Inc. - General Journal (Adjusting Entries) Date Account Name/GL Account # Debit Credit Bronx Bombers, Inc. - General Journal (Adjusting Entries - continued) 22 Date Account Name/GL Account # Debit Bronx Bombers, Inc. - General Journal (Closing Entries) 23 Credit Date Account Name/GL Account # Debit Bronx Bombers, Inc. - Subsidiary A/R Ledger 24 Credit Customer Name Krohngold Customer # 110-12 Explanation Balance Date 12/1 Goar 110-25 Balance 12/1 $22,000 Winters 110-33 Balance 12/1 $16,000 Tishman 110-44 Balance 12/1 $60,000 O'Malley 110-46 Balance 12/1 $24,000 Becker 110-47 Balance 12/1 $30,000 Riley 110-48 25 Debit Credit Balance $8,000 Bronx Bombers, Inc. - Subsidiary A/P Ledger Supplier Nole Industries Vendor # 210-17 Explanation Balance Date 12/1 TH, Inc. 210-20 Balance 12/1 $24,000 DevilCo 210-22 Balance 12/1 $40,000 CavalierCorp 210-25 OfficeMin 210-30 26 Debit Credit Balance $36,000 Bronx Bombers, Inc. - General Ledger Acct # 100 Acct Name Source Debit Cash Credit Balance - DR or (CR) 600,000 110 Accounts Receivable 160,000 115 AFDA (10,000) 120 Interest Receivable 130 Inventory 135 Supplies 140 Prepaid Rent 52,000 145 Prepaid Insurance 15,000 -0- 300,000 8,000 27 Bronx Bombers, Inc. - General Ledger Acct # 150 Acct Name AFS Investments Source Debit Credit Balance - DR or (CR) 250,000 160 Land 450,000 170 Buildings 800,000 175 Acc. Deprc. - Bldgs 180 Equipment 324,000 185 Acc. Deprc. - Eqpt (86,400) 190 Patent 163,500 210 Accounts Payable 220 Salaries Payable (120,000) (100,000) (4,000) 28 Bronx Bombers, Inc. - General Ledger Acct # 225 Acct Name Utilities Payable Source Debit Credit Balance - DR or (CR) (7,500) 230 Interest Payable (25,000) 235 Unearned Rent (48,000) 240 Income Taxes Payable (13,410) 245 Dividends Payable 250 Notes Payable (300,000) 300 Common Stock ($1 par value) (100,000) 310 Add'l Paid-in Capital 320 Retained Earnings 325 Dividends -0- (1,497,000) (662,000) -0- 29 Bronx Bombers, Inc. - General Ledger Acct # 330 Acct Name AOCI Source Debit Credit Balance - DR or (CR) (50,000) 350 Treasury Stock -0- 400 Sales Revenue 402 Sales Returns & Allowances 100,000 404 Sales Discounts 40,000 410 Interest Revenue (1,450,000) (14,400) 30 Bronx Bombers, Inc. - General Ledger Acct # 420 Acct Name Rent Revenue Source Debit Credit Balance - DR or (CR) (48,000) 430 Dividend Revenue -0- 500 Cost of Goods Sold -0- 505 Purchases 700,000 507 Purchase Returns & Allowances (40,000) 508 Purchase Discounts (20,000) 31 Bronx Bombers, Inc. - General Ledger Acct # 510 Acct Name Salaries Expense Source Debit Credit Balance - DR or (CR) 240,000 515 Bad Debts Expense 28,000 520 Rent Expense 44,000 530 Deprc. Exp. - Bldgs 44,000 535 Deprc. Exp. - Eqpt 19,800 540 Patent Amort. Exp. 16,500 550 Utilities Expense 80,000 Bronx Bombers, Inc. - General Ledger 32 Acct # 555 Acct Name Supplies Expense Source Debit Credit Balance - DR or (CR) 50,000 560 Insurance Expense 27,500 570 Interest Expense 30,000 590 Income Tax Expense 53,410 33 Bronx Bombers, Inc. - Adjusted Trial Balance As of December 31, 2015 Account # Account Name Debit Balance 34 Credit Balance Bronx Bombers, Inc. - Adjusted Trial Balance (continued) As of December 31, 2015 Account # Account Name Debit Balance 35 Credit Balance Bronx Bombers, Inc. Income Statement For the year ended December 31, 2015 Bronx Bombers, Inc. - Balance Sheet 36 As of December 31, 2015 Workspace for Accrual to Cash Conversions for Statement of Cash Flows 37 Bronx Bombers, Inc. Statement of Cash Flows (Direct Method) For the year ended December 31, 2015 Bronx Bombers, Inc. 38 Required Reconciliation of Net Income to Cash Flow from Operating Activities For the year ended December 31, 2015 39