Post on 10-Jan-2017
Chart of Accounts
Cash 101Petty Cash 105Accounts Receivable 112Allowance for Doubtful Accounts 113Notes Receivable 115Interest Receivable 118Inventory 120Supplies 126Prepaid Insurance 130Prepaid Rent 131Other Assets 135Land 140Buildings 145
146Equipment 151
152Trucks 163
164Notes Payable 200Accounts Payable 201Salaries and Wages Payable 212FICA Taxes Payable 214Incomes Taxes Payable 215Federal Withholding Taxes Payable 216State Withholding Taxes Payable 218FUTA Taxes Payable 224SUTA Taxes Payable 226Interest Payable 230Dividends Payable 250Notes Payable (LT Liability) 268Bonds Payable 270Discount on Bonds Payable 273Common Stock 311Paid-in Capital in Excess of Stated Value 317Retained Earnings 320Treasury Stock 330Dividends 332Income Summary 350Sales Revenue 401Sales Returns and Allowances 412Sales Discounts 414Purchases 510Purchases Returns and Allowances 512Purchases Discounts 514Freight-in 516Advertising Expense 610Bad Debt Expense 612Supplies Expense 631Freight-out 644Miscellaneous Expense 649Depreciation Expense 711Insurance Expense 722Salaries and Wages Expense 726Rent Expense 729Payroll Tax Expense 730Utilities Expense 732Interest Revenue 820Gain on Disposal of Plant Assets 826Interest Expense 905Loss on Disposal of Plant Assets 921Income Tax Expense 999
Accum. Depr. - Buildings
Accum. Depr. - Equipment
Accum. Depr. - Trucks
General Journal Page
Date Account Titles and Explanation Ref Debit Credit
12 3 Allowance for Doubtful Accounts 113 3700112/190 3700
To record the write-off of an account due to bankruptcy.
12 9 Payroll Tax Expense 730 350 FICA Taxes Payable 214 350To record employer's portion of FICA taxes on biweekly payroll.
12 15 Sales Returns and Allowances 412 4680 Accounts Receivable-The Potts Company 112/122 4680To record defective copper tubing returned by customer.
12 17 Notes Receivable 115 45200112/180 45200
To record receipt of a 14%, 6-month note for an overdue accounts receivable
12 22 Freight-in 516 2300201/20 2300
To record freight costs for December 2014
12 23 Payroll Tax Expense 730 415 FICA Taxes Payable 214 415To record employer's portion of FICA taxes on biweekly payroll.
12 26 Dividends 332 8280 Dividends Payable 250 8280To record declaration of dividends payable to stockholders on record
12 26 Note Receivable 115 14000 Accounts Receivable-Beverley's Building Products 112/175 14000To record the receipt of a 12%, 6-month note for an overdue accounts receivable
12 29 Land 140 54000 Common Stock-Stated Value $30 18000 Paid-in Capital in Excess of Stated Value 311 36000To record acquisition of land parcel in exchange for 600 shares of common stock
12 31 Depreciation Expense 711 350164 350
To bring depreciation up to date
12 31 Payroll Tax Expense 730 3120 FICA Taxes Payable 214 3120To record employer's portion of FICA taxes on monthly payroll.
Accounts Receivable-Iwanaga Plumbing and Heating
Accounts Receivable-Boecker Construction
Accounts Payable-DeKalb Transport
Accum. Depr. - Trucks
Date Account Titles and Explanation Ref Debit Credit
Adj 1 Bad Debt Expense 612 110976Allowance for Doubtful Accounts 113 110976To record adjustment for the provision of bad debts
Adj 2 Supplies Expense 631 2850 Supplies 126 2850To record adjustment for supplies on hand at year end
Adj 3 Income Summary 350 531960 Inventory 120 531960Inventory 120 554930 Income Summary 350 554930To record adjustment for inventory on hand at year end
Adj 4 Miscellaneous Expense 649 1455Insurance Expense 722 4365 Prepaid Insurance 130 5820To record adjustment for insurance premiums used during 2014
Adj 5 Salaries and Wages Expense 726 6100 FICA Payable 214 430 Federal Withholding Payable 216 1036 State Withholding Payable 218 218 Salaries and Wages Payable 212 4416To record adjustment for accrued wages at year end
Adj 6 Payroll Tax Expense 730 430 FICA Payable 214 430To record employer's portion of FICA taxes for accrued wages adjustment
Adj 7 Interest Expense 905 11556 Interest Payable 230 10020 Discount on Bonds Payable 273 1536To record adjustment for accrued interest on notes and bonds payable
Adj 8 Interest Receivable 118 1374 Interest Revenue 820 1374Interest Expense 905 1500 Interest Payable 230 1500To record adjustment for accrued interest on notes receivable and one note payable
Adj 9 Rent Expense 729 22610 Prepaid Rent 131 22610To record adjustment for expired rent
Adj 10 Utilities Expense 732 809 Accounts Payable- Northern Electric Co. 201/58 530
Date Account Titles and Explanation Ref Debit Credit
Accounts Payable- City of Rockford 201/59 279To record adjustment for balance owed for utility services provided in December 2014
Adj 11 Depreciation Expense 711 37090152 5620164 12550146 18920
To record adjustment for annual accumulated depreciation
Adj 12 Income Tax Expense 999 15413 Income Tax Payable 215 15413To record accrued income taxes for 2014.
12 31 Sales Revenue 401 5640052Interest Revenue 820 4524 Income Summary 350 5644576To close revenue accounts to income summary
12 31 Income Summary 350 5426647
Sales Returns and Allowances 412 14060 Sales Discounts 414 77181 Cost of Goods Sold 3863934 Advertising Expense 610 7678 Supplies Expense 631 4458 Freight-Out 644 19490 Rent Expense 729 22610 Bad Debt Expense 612 110976 Depreciation Expense 711 37440 Insurance Expense 722 4365 Salaries and Wages Expense 726 992752 Miscellaneous Expense 649 1455 Payroll Tax Expense 730 87231 Utilities Expense 732 17478 Interest Expense 905 37626 Loss on Disposal of Plant Assets 921 500 Income Tax Expense 999 127413
Accum. Depr. - Equipment
Accum. Depr – Trucks
Accum. Depr. - Building
Date Account Titles and Explanation Ref Debit CreditTo close expense accounts to income summary
12 31 Income Summary 350 217929 Retained Earnings 320 217929To close income summary to retained earnings
Purchase Journal
Page 6
Purchase Journal
Date 2014Purchase
Account Credited Acct. No. AmountOrder No.12 2 315 Edward's Plumbing Supplies, Inc. n/60 18 24320
8 316 Phoenix Plastics 1/10, n/30 14 5270017 317 Smith Pipe Company 1/15, n/60 39 5080019 318 (see Cash Disbursements Journal)22 319 Phoenix Plastics 1/10, n/30 14 4833030 320 35 63940
240090Oxenford Copperworks
Sales Journal
Page 7
Sales Journal
Date 2014Invoice
Account Debited Acct. No. AmountNo.12 1 1201 Beverley's Building Products 175 13150
3 1202 180 449004 1203 160 103008 1204 Trudy's Plumbing 155 29300
10 1205 Trudy's Plumbing 155 2885011 1206 The Potts Company 122 3145012 1207 117 2473017 1208 A & B Hardware 143 792018 1209 160 4278029 1210 117 4904030 1211 Swanson Brother's Construction 133 2465031 1212 Trudy's Plumbing 155 55770
362840
Bilder Construction Co.Coconino Contractors, Inc.
Boecker Builders
Coconino Contractors, Inc.Boecker Builders
Cash Disbursements Journal
Page 8
Cash Disbursements JournalDate Check
Payee
Cash
Ref.
A/P Sundry Accounts
2014 No. Cr. Dr. Cr. Acct. No. ✓ Dr. Cr.
12 2 1580 26400 35 26400
4 1581 Standard Oil Company 810 644 ✓ 8105 1582 9900 57 10000 1005 1583 Phoenix Plastics 10486 14 10700 214
9 1584 Payroll Bank Account 3420 726 ✓ 4860
9 214 ✓ 350
9 216 ✓ 900
9 218 ✓ 190
9 1585 Scooter Gordon 600 610 ✓ 6009 1586 Phoenix Plastics 6750 14 675010 1587 Smith Pipe Company 37719 39 38100 381
15 1588 N. III. Communications 399 732 ✓ 399
16 1589 Winnebago County Bank 11360 216 ✓ 9573
16 214 ✓ 178716 1590 Phoenix Plastics 52173 14 52700 527
18 1591 S. White Trucking 1021 516 ✓ 1021
19 1592 Pen & Pad 1360 126 ✓ 1360
19 1593 Business Basics, Inc. 600 151 ✓ 6100
19 201/16 ✓ 5500
23 1594 Payroll Bank Accounts 4063 726 ✓ 5770
23 214 ✓ 415
23 216 ✓ 1067
23 218 ✓ 225
26 1595 83000 330 ✓ 83000
29 1596 Wayne McManus 2650 140 ✓ 2650
30 1597 Northern Star 500 610 ✓ 500
30 1598 Standard Oil Co. 925 644 ✓ 925
30 1599 Chicago Trust Co. 15000 135 ✓ 1500031 1600 Smith Pipe Company 50292 39 50800 508
31 1601 Petty Cash Fund 142 631 ✓ 68
31 644 ✓ 23
31 516 ✓ 51
31 1602 Petty Cash Fund 75 105 ✓ 75
31 1603 Payroll Bank Account 30567 726 ✓ 42900
31 216 ✓ 7696
31 218 ✓ 1517
31 214 ✓ 3120350212 195450 1730 177472 20980
Purch. Disc.
Oxenford Copperworks
Khatan Steel Corp.
Dionne Schivone
Cash Disbursements Journal
Page 9
Total Credits Total Debits372922 372922
Cash Receipts Journal
Page 10
Cash Receipts JournalDate
Description
Cash Sales Disc.
Ref.
Accounts Rec. Sales Rev. Sundry Accounts
2014 Dr. Dr. Cr. Cr. Acct. No. ✓ Dr. Cr.
12 1 Swanson Brothers 23569 481 133 240504 The Potts Company 49294 1006 122 503005 Rankin Plumbing Corp. 72863 1487 166 743508 27800 160 278008 29000 117 2900010 Trudy's Plumbing 15100 155 1510011 33920 117 3392011 Cash sales 12292 1229212 Trudy's Plumbing 28714 586 155 2930018 Trudy's Plumbing 28273 577 155 2885030 24730 117 24730
31 2500 164 ✓ 4900
31 921 ✓ 500
31 163 ✓ 790031 Cash sales 29980 29980
378035 4137 337400 42272 5400 7900
Total Credits Total Debits387572 387572
Coconino Contractors, Inc.Boecker Builders
Boecker Builders
Boecker Builders
Leila Steirman Co.
General LedgerAccount: Cash Acct # 101
Date Explanation Ref. Debit Credit Balance1/1 Balance 39,16011/30 Balance 209,93012/31 Cash balance from cash receipts journal 378,035 587,96512/31 Cash disbursements 350,212 237,753
Account: Petty Cash Acct # 105Date Explanation Ref. Debit Credit Balance
1/1 Balance 15012/31 To increase balance 75 225
Account: Accounts Receivable Acct # 112Date Explanation Ref. Debit Credit Balance
1/1 Balance 172,64311/30 Balance 317,42012/3 J9 3,700 313,72012/15 J9 4,680 309,04012/17 J9 45,200 263,84012/26 Beverley's Building Products 14,000 249,84012/31 Balance from sales journal 362,840 612,68012/31 Balance from cash receipts journal 337,400 275,280
Account: Allowance for Doubtful Accounts Acct # 113Date Explanation Ref. Debit Credit Balance
1/1 Balance 13,52011/30 Balance 4,58012/3 J9 3,700 88012/31 Provision for doubtful accounts Adj1 110,976 111,856
Account: Notes Receivable Acct #115Date Explanation Ref. Debit Credit Balance
1/1 Balance 40,00011/30 45,00012/17 J9 45,200 90,20012/26 Beverley's Building Products 14,000 104,200
Balance-Platteville PlumbersBilder Construction
Account: Interest Receivable Acct # 118Date Explanation Ref. Debit Credit Balance
1/1 Balance 58011/30 Balance 012/31 Interest accrued Adj8 1,374 1,374
Account: Inventory Acct # 120Date Explanation Ref. Debit Credit Balance
1/1 Balance 531,96012/31 Inventory adjustment Adj3 531,960 012/31 Inventory adjustment – inventory on hand Adj3 554,930 554,930
Account: Supplies Acct # 126Date Explanation Ref. Debit Credit Balance
1/1 Balance 1,65011/30 Balance 2,32012/19 CD18 1,360 3,68012/31 Supplies on hand at year end Adj2 2,850 830
Account: Prepaid Insurance Acct # 130Date Explanation Ref. Debit Credit Balance
1/1 Balance 3,22011/30 Balance 11,02012/31 Prepaid Insurance used in 2014 Adj4 5,820 5,200
Account: Prepaid Rent Acct # 131Date Explanation Ref. Debit Credit Balance
1/1 Balance 2,80011/30 Balance 25,41012/31 Rent used in 2014 Adj9 22,610 2,800
Account: Other Assets Acct # 135Date Explanation Ref. Debit Credit Balance
1/1 Balance 130,0007/1 CD15 15,000 145,00012/30 For deposit in sinking fund 15,000 160,000
Account: Land Acct # 140Date Explanation Ref. Debit Credit Balance
1/1 Balance 43,00012/29 Land acquisition for common stock 54,000 97,00012/29 Legal fees paid for acquisition 2,650 99,650
Account: Buildings Acct # 145Date Explanation Ref. Debit Credit Balance
1/1 Balance 306,000
Account: Acct # 146Date Explanation Ref. Debit Credit Balance
1/1 Balance 73,04012/31 Depreciation for 2014 Adj11 18,920 91,960
Account: Equipment Acct # 151Date Explanation Ref. Debit Credit Balance
1/1 Balance 32,80012/21 CD18 6,100 38,900
Account: Acct # 152Date Explanation Ref. Debit Credit Balance
1/1 Balance 13,20012/31 Depreciation for 2014 Adj11 5,620 18,820
Account: Trucks Acct # 163Date Explanation Ref. Debit Credit Balance
1/1 Balance 78,40012/31 Sold truck lift 7,900 70,500
Account: Acct # 164Date Explanation Ref. Debit Credit Balance
1/1 Balance 39,54012/31 Depreciation 350 39,89012/31 Sale of truck lift 4,900 34,99012/31 Depreciation for 2014 12,550 47,540
Account: Notes Payable Acct # 200Date Explanation Ref. Debit Credit Balance
1/1 Balance – Renewed 12/31/13 15,000
Account: Accounts Payable Acct # 201Date Explanation Ref. Debit Credit Balance
Accum. Depr. - Buildings
Accum. Depr. - Equipment
Accum. Depr. - Trucks
1/1 Balance 86,35211/30 Balance 126,85012/15 J9 3,550 123,30012/19 CD18 5,500 128,80012/22 J9 2,300 131,10012/31 Balance from purchase journal 240,090 371,19012/31 Balance from cash disbursements journal 195,450 175,74012/31 Balance owed for utility services through Dec 2014 Adj10 809 176,549
Account: Salaries and Wages Payable Acct # 212Date Explanation Ref. Debit Credit Balance
1/1 Balance 1,90611/30 Balance 012/31 Salaries accrued for biweekly paid employees Adj5 4,416 4,416
Account: FICA Taxes Payable Acct # 214Date Explanation Ref. Debit Credit Balance
1/1 Balance 78111/30 Balance 1,78712/9 CD18 350 2,13712/9 J9 350 2,48712/16 CD18 1,787 70012/23 J9 415 1,11512/23 CD18 415 1,53012/31 Monthly paid employees 3,120 4,65012/31 Employers portion for monthly paid employees 3,120 7,77012/31 Employers portion for biweekly paid employees Adj6 430 8,20012/31 Adj5 430 8,630
Account: Income Taxes Payable Acct # 215Date Explanation Ref. Debit Credit Balance
1/1 Balance 15,78911/30 Balance 012/31 Income tax accrued for 2014 Adj12 15,413 15,413
Account: Federal Withholding Taxes Payable Acct # 216Date Explanation Ref. Debit Credit Balance
1/1 Balance 5,14811/30 Balance 9,57812/9 CD18 900 10,47312/16 CD18 9,573 90012/23 CD18 1,067 1,96712/31 Monthly paid employees 7,696 9,66312/31 Biweekly paid employees Adj5 1,036 10,699
Account: State Withholding Taxes Payable Acct # 218Date Explanation Ref. Debit Credit Balance
1/1 Balance 1,59511/30 Balance 2,486
12/9 CD18 190 2,67612/23 CD18 225 2,90112/31 Monthly paid employees 1,517 4,41812/31 Biweekly paid employees Adj5 218 4,636
Account: FUTA Taxes Payable Acct # 224Date Explanation Ref. Debit Credit Balance
1/1 Balance 21611/30 Balance 400
Account: SUTA Taxes Payable Acct # 226Date Explanation Ref. Debit Credit Balance
1/1 Balance 1,32311/30 Balance 2,600
Account: Interest Payable Acct # 230Date Explanation Ref. Debit Credit Balance
1/1 Balance 15,16511/30 Balance 012/31 Accrued interest Adj7 10,020 10,02012/31 Accrued interest on notes payable Adj8 1,500 11,520
Account: Dividends Payable Acct # 250Date Explanation Ref. Debit Credit Balance
1/1 Balance 23,10011/30 Balance 012/26 Declaration of dividends 8,280 8,280
Account: Notes Payable (LT Liability) Acct # 268Date Explanation Ref. Debit Credit Balance
1/1 Balance 43,0007/1 Increased Mortgage CR10 70,000 113,000
Account: Bonds Payable Acct # 270Date Explanation Ref. Debit Credit Balance
1/1 Balance (issued Mar. 1, 2008) 275,000
Account: Discount on Bonds Payable Acct # 273Date Explanation Ref. Debit Credit Balance
1/1 Balance 6,40012/31 Amortization of discount through 12/31/14 Adj7 1,536 4,864
Account: Common Stock - $30 Stated Value Acct # 311Date Explanation Ref. Debit Credit Balance
1/1 Balance (6300 shares) 189,00012/29 600 shares issued in exchange for land parcel 18,000 207,000
Account: Paid-in Capital in Excess of Stated Value Acct # 317Date Explanation Ref. Debit Credit Balance
1/1 Balance 256,40012/29 600 shares issued in exchange for land parcel 36,000 292,400
Account: Retained Earnings Acct # 320Date Explanation Ref. Debit Credit Balance
1/1 Balance 362,74812/31 Closing of income summary 217,929 580,677
Account: Treasury Stock Acct # 330Date Explanation Ref. Debit Credit Balance
1/1 Balance (700 shares) 42,61012/26 Repurchase of 1,000 shares 83,000 125,610
Account: Dividends Acct # 332Date Explanation Ref. Debit Credit Balance
12/26 Declaration of dividends 8,280 8,280
Account: Income Summary Acct # 350
Date Explanation Ref. Debit Credit Balance12/31 Adj3 531,960 531,96012/31 Adj3 554,930 22,97012/31 Closing of revenue accounts 5,644,576 5,667,54612/31 Closing of expense accounts 5,426,647 240,89912/31 Closed to retained earnings 217,929 22,970
Account: Sales Revenue Acct # 401Date Explanation Ref. Debit Credit Balance
11/30 Balance 5,234,94012/31 Balance from cash receipts journal 42,272 5,277,21212/31 Balance from sales journal 362,840 5,640,05212/31 Closed to income summary 5,640,052 0
Account: Sales Returns and Allowances Acct # 412Date Explanation Ref. Debit Credit Balance
11/30 Balance 9,38012/15 J9 4,680 14,06012/31 Closed to income summary 14,060 0
Account: Sales Discounts Acct # 414Date Explanation Ref. Debit Credit Balance
1/1 Balance 73,04412/31 Balance from cash receipts journal 4,137 77,18112/31 Closed to income summary 77,181 0
Account: Purchases Acct # 510Date Explanation Ref. Debit Credit Balance
11/30 Balance 3,722,29012/31 Balance from purchase journal 240,090 3,962,380
Account: Purchases Returns and Allowances Acct # 512Date Explanation Ref. Debit Credit Balance
11/30 Balance 25,52012/15 J9 3,550 29,070
Account: Purchases Discounts Acct # 514Date Explanation Ref. Debit Credit Balance
11/30 Balance 67,49612/31 Balance from cash disbursements journal 1,730 69,226
Account: Freight-in Acct # 516Date Explanation Ref. Debit Credit Balance
11/30 Balance 19,44812/18 CD18 1,021 20,46912/22 J9 2,300 22,76912/31 C.O.D Postage 51 22,820
Account: Advertising Expense Acct # 610Date Explanation Ref. Debit Credit Balance
11/30 Balance 6,57812/9 CD18 600 7,17812/30 Advertisement 500 7,67812/31 Closed to income summary 7,678 0
Account: Bad Debt Expense Acct # 612Date Explanation Ref. Debit Credit Balance
12/31 Provision for doubtful accounts Adj1 110,976 110,97612/31 Closed to income summary 110,976 0
Account: Supplies Expense Acct # 631Date Explanation Ref. Debit Credit Balance
11/30 Balance 1,54012/30 Postage Stamps 68 1,60812/31 Supplies used during year Adj2 2,850 4,45812/31 Closed to income summary 4,458 0
Account: Freight-Out Acct # 644Date Explanation Ref. Debit Credit Balance
11/30 Balance 17,73212/4 CD18 810 18,54212/30 Payment to Standard Oil Co. 925 19,46712/31 United Parcel 23 19,49012/31 Closed to income summary 19,490 0
Account: Miscellaneous Expense Acct # 649Date Explanation Ref. Debit Credit Balance
12/31 Insurance premium associated with selling activities Adj4 1,455 1,45512/31 Closed to income summary 1,455 0
Account: Depreciation Expense Acct # 711
Date Explanation Ref. Debit Credit Balance12/31 Depreciation on truck lift 350 35012/31 Depreciation for 2014 Adj11 37,090 37,44012/31 Closed to income summary 37,440 0
Account: Insurance Expense Acct # 722Date Explanation Ref. Debit Credit Balance
12/31 Insurance Premium attributable to general activities Adj4 4,365 4,36512/31 Closed to income summary 4,365 0
Account: Salaries and Wages Expense Acct # 726Date Explanation Ref. Debit Credit Balance
11/30 Balance 933,12212/9 CD18 4,860 937,98212/23 CD18 5,770 943,75212/31 To pay monthly paid employees 42,900 986,65212/31 Biweekly paid employees Adj5 6,100 949,85212/31 Closed to income summary 949,852 0
Account: Rent Expense Acct # 729Date Explanation Ref. Debit Credit Balance
12/31 Rent expense for 2014 Adj9 22,610 22,61012/31 Closed to income summary 22,610 0
Account: Payroll Tax Expense Acct # 730Date Explanation Ref. Debit Credit Balance
11/30 Balance 82,91612/9 J9 350 83,26612/23 J9 415 83,68112/31 Employers portion for monthly paid employees 3,120 86,80112/31 Employers portion for biweekly paid employees Adj6 430 87,23112/31 Closed to income summary 87,231 0
Account: Utilities Expense Acct # 732Date Explanation Ref. Debit Credit Balance
11/30 Balance 16,27012/15 CD18 399 16,66912/31 Utilities provided during Dec 2014 Adj10 809 17,47812/31 Closed to income summary 17,478 0
Account: Interest Revenue Acct # 820Date Explanation Ref. Debit Credit Balance
11/30 Balance 3,150
12/31 Interest accrued Adj8 1,374 4,52412/31 Closed to income summary 4,524 0
Account: Gain on Disposal of Plant Assets Acct # 826Date Explanation Ref. Debit Credit Balance
Account: Interest Expense Acct # 905Date Explanation Ref. Debit Credit Balance
11/30 Balance 24,57012/31 Accrued interest Adj7 11,556 36,12612/31 Accrued interest on notes receivable Adj8 1,500 37,62612/31 Closed to income summary 37,626 0
Account: Loss on Disposal of Plant Assets Acct # 921Date Explanation Ref. Debit Credit Balance
12/31 Loss on Disposal of truck lift 500 50012/31 Closed to income summary 500 0
Account: Income Tax Expense Acct # 999Date Explanation Ref. Debit Credit Balance
11/30 Balance 112,00012/31 Income Tax Expense for 2014 Adj12 15,413 127,41312/31 Closed to income summary 127,413 0
Rockford CorporationTrial Balance Adjusting Entries
December 31, 2014
Account Titles Debit Credit Debit CreditCash 237,753Petty Cash 225Accounts Receivable 275,280Allowance for Doubtful Accounts 880 110976Notes Receivable 104,200Interest Receivable 1374Inventory 531,960 554930 531960Supplies 3,680 2850Prepaid Insurance 11,020 5820Prepaid Rent 25,410 22610Other Assets 160,000Land 99,650Buildings 306,000
73,040 18920Equipment 38,900
13,200 5620Trucks 70,500
34,990 12550Notes Payable 15,000Accounts Payable 175,740 809Salaries and Wages Payable 4416FICA Taxes Payable 7,770 860Income Taxes PayableFederal Withholding Taxes Payable 9,663 1036State Withholding Taxes Payable 4,418 218FUTA Taxes Payable 400SUTA Taxes Payable 2,600Interest Payable 11520Dividends Payable 8,280Notes Payable (LT Liability) 113,000Bonds Payable 275,000Discount on Bonds Payable 6,400 1536Common Stock 207,000Paid-in Cap. In Excess of Stated Value 292,400Retained Earnings 362,748Treasury Stock 125,610Dividends 8,280Income Summary 531960 554930Sales Revenue 5,640,052Sales Returns and Allowances 14,060Sales Discounts 77,181Purchases 3,962,380
Accum. Depr. - Buildings
Accum. Depr. - Equipment
Accum. Depr. - Trucks
Purchase Returns and Allow. 29,070Purchase Discounts 69,226Freight-in 22,820Advertising Expense 7,678Bad Debt Expense 110976Supplies Expense 1,608 2850Freight-out 19,490Miscellaneous Expense 0 1455Depreciation Expense 350 37090Insurance Expense 4365Salaries and Wages Expense 986,652 6100Rent Expense 22610Payroll Tax Expense 86,801 430Utilities Expense 16,669 809Interest Revenue 3,150 1374Gain on Disposal of Plant AssetsInterest Expense 24,570 13056Loss on Disposal of Plant Assets 500Income Tax Expense 112,000
Totals 7,337,627 7,337,627 1288005 1288005Income Tax Expense 15413Income Taxes Payable 15413
Net Income
Totals 7,337,627 7,337,627 1303418 1303418
Adjusted Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit237753 237753
225 225275280 275280
111856 111856104200 104200
1374 1374554930 554930
830 8305200 52002800 2800
160000 16000099650 99650
306000 30600091960 91960
38900 3890018820 18820
70500 7050047540 4754015000 15000
176549 1765494416 44168630 8630
10699 106994636 4636
400 4002600 2600
11520 115208280 8280
113000 113000275000 275000
4864 4864207000 207000292400 292400362748 362748
125610 1256108280 8280
22970 229705640052 5640052
14060 1406077181 77181
3962380 3962380
29070 2907069226 69226
22820 228207678 7678
110976 1109764458 4458
19490 194901455 1455
37440 374404365 4365
992752 99275222610 2261087231 8723117478 17478
4524 4524
37626 37626500 500
112000 112000
7528896 752889615413 15413
15413 15413
217929 217929
7544309 7544309 5765842 5765842 1996396 1996396
Schedules
Page 25
Schedule of Accounts Receivable
4904026770
Swanson Brother's Construction 24650A & B Hardware 7920Trudy's Plumbing 55770
53080Beverley's Building Products 13150
44900Total Accounts Receivable 275280
Schedule of Accounts Payable
Phoenix Plastics 48330Business Basics, Inc. 5500Edward's Plumbing Supplies, Inc. 40820
230063940
Ron & Rod's Plumbing Products 14850Northern Electric Co. 530City of Rockford 279Total Accounts Payable 176549
Boecker BuildersThe Pott's Company
Coconino Contractors, Inc.
Bilder Construction Company
DeKalb TransportOxenford Copperworks
Subsidiary Ledgers
Page 26
Accounts Receivable Subsidiary Ledger
Account: Acct # 117Date Explanation Ref. Debit Credit Balance
11/30 Balance 62,92012/8 1050 & 1071 29,000 33,92012/11 1071 33,920 012/12 1207 24,730 24,73012/29 Sale of materials on accounts 1210 49,040 73,77012/30 Received payment for 1207 24,730 49,040
Account: The Potts Company Acct # 122Date Explanation Ref. Debit Credit Balance
11/30 Balance 50,30012/4 1128 50,300 012/11 1206 31,450 31,45012/15 1206 4,680 26,770
Account: Swanson Brothers Construction Acct # 133Date Explanation Ref. Debit Credit Balance
11/30 Balance 24,05012/1 1120 24,050 012/30 Purchase of supplies of account 1211 24,650 24,650
Account: A & B Hardware Acct # 143Date Explanation Ref. Debit Credit Balance
12/17 1208 7,920 7,920
Boecker Builders
Subsidiary Ledgers
Page 27
Account: Trudy's Plumbing Acct # 155Date Explanation Ref. Debit Credit Balance
11/30 Balance 15,10012/8 1204 29,300 44,40012/10 1106 15,100 29,30012/10 1205 28,850 58,15012/12 1204 29,300 28,85012/18 1205 28,850 012/31 Sold materials on account 1212 55,770 55,770
Account: Acct # 160Date Explanation Ref. Debit Credit Balance
11/30 Balance 27,80012/4 1203 10,300 38,10012/8 1091 27,800 10,30012/18 1209 42,780 53,080
Account: Rankin Plumbing Corp. Acct # 166Date Explanation Ref. Debit Credit Balance
11/30 Balance 74,35012/5 1129 74,350 0
Account: Beverley's Building Products Acct # 175Date Explanation Ref. Debit Credit Balance
11/30 Balance 14,00012/5 1201 13,150 27,15012/26 Converted to 12%, 6-month note 14,000 13,150
Account: Acct # 180
Coconino Contractors, Inc.
Bilder Construction Company
Subsidiary Ledgers
Page 28
Date Explanation Ref. Debit Credit Balance11/30 Balance 45,20012/3 1202 44,900 90,10012/17 1120 45,200 44,900
Account: Acct # 190Date Explanation Ref. Debit Credit Balance
11/30 Balance 3,70012/3 Write-Off 780 3,700 0
Account: Acct # Date Explanation Ref. Debit Credit Balance
Balance
Account: Acct # Date Explanation Ref. Debit Credit Balance
1/1 Balance
Accounts Payable Subsidiary LedgerAccount: Phoenix Plastics Acct # 14
Date Explanation Ref. Debit Credit Balance11/30 Balance 17,45012/5 313 10,700 6,75012/8 1/10, n/30 316 52,700 59,45012/9 299 6,750 52,700
Iwanaga Plumbing and Heating
Subsidiary Ledgers
Page 29
12/16 316 52,700 012/22 1/10, n/30 319 48,330 48,330
Account: Business Basics, Inc. Acct # 16Date Explanation Ref. Debit Credit Balance
12/19 Balance 318 5,500 5,500
Account: Edward's Plumbing Supplies, Inc. Acct # 18 Date Explanation Ref. Debit Credit Balance
11/30 Balance 20,05012/2 n/60 315 24,320 44,37012/15 315 3,550 40,820
Account: Acct # 20Date Explanation Ref. Debit Credit Balance
12/22 n/30 J9 2,300 2,300
Account: Acct # 35Date Explanation Ref. Debit Credit Balance
11/30 Balance 26,40012/2 280 26,400 012/30 1/10, n/30 320 63,940 63,940
DeKalb Transport
Oxenford Copperworks
Subsidiary Ledgers
Page 30
Account: Smith Pipe Company Acct # 39Date Explanation Ref. Debit Credit Balance
11/30 Balance 38,10012/10 314 38,100 012/17 1/15, n/60 317 50,800 50,80012/31 Discount 508 50,29212/31 Payment 50,292 0
Account: Ron & Rod's Plumbing Products Acct # 44Date Explanation Ref. Debit Credit Balance
11/30 Balance 14,850
Account: Acct # 57Date Explanation Ref. Debit Credit Balance
11/30 Balance 10,00012/5 312 10,000 0
Account: Northern Electric Co. Acct # 58Date Explanation Ref. Debit Credit Balance
12/31 Utility Services through 12/2015 530 530
Account: City of Rockford Acct # 59Date Explanation Ref. Debit Credit Balance
12/31 Utility Services through 12/2015 279 279
Khatan Steel Corp.
Rockford CorporationIncome Statement
For Year End December 31, 2014
Sales Sales Revenue $5,640,052.00 Less: Purchase Returns and Allowances $14,060.00 Purchase Discounts $77,181.00 $91,241.00 Net Sales $5,548,811.00Cost of Goods Sold $3,863,934.00Gross Profit $1,684,877.00
Operational Expenses Selling Expenses Advertising Expense $7,678.00 Supplies Expense $4,458.00 Freight-out $19,490.00Rent Expense $22,610.00 $54,236.00
Administrative Expenses Bad Debt Expense $110,976.00 Depreciation Expense $37,440.00 Insurance Expense $4,365.00 Salaries and Wages Expense $992,752.00 Miscellaneous Expense $1,455.00 Payroll Tax Expense $87,231.00 Utilities Expense $17,478.00 $1,251,697.00Total Expenses $1,305,933.00Income from Operations $378,944.00Other Revenues/Gains Interest Revenue $4,524.00 $4,524.00
$383,468.00Other Expenses/Losses Interest Expense $37,626.00 Loss on Disposal of Plant Assets $500.00 $37,126.00Income Before Income Tax $346,342.00 Income Tax Expense $127,413.00 $127,413.00Net Income $218,929.00Earnings Per Share $39.09
Rockford CorporationStatement of Retained Earnings
For The Year Ended December 31, 2014
Retained Earnings at 1/1/14 $362,748.00Plus: Net Income $217,929.00
$580,677.00Less: Dividends -$8,280.00Retained Earnings at 12/31/14 $588,957.00
Rockford CorporationBalance Sheet
At December 31, 2014
AssetsCurrent Assets Cash and Cash Equivalents $237,978.00 Accounts Receivable $275,280.00 Less: Allowance for Doubtful Accounts -$111,856.00 $163,424.00 Notes Receivable $104,200.00 Interest Receivable $1,374.00 Inventory $554,930.00 Supplies $830.00 Prepaid Insurance $5,200.00 Prepaid Rent $2,800.00 Other Assets $160,000.00Total Current Assets $1,230,736.00
Property, Plants, EquipmentLand $99,650.00Buildings $306,000.00
-$91,960.00 214,040.00Equipment $38,900.00
-$18,820.00 20,080.00Trucks $70,500.00
-$47,540.00 22,960.00 $257,080.00Total Property, Plants, Equipment $356,730.00 Total Assets $1,587,466.00
Liabilities & Shareholder's EquityCurrent LiabilitiesNotes Payable $15,000.00Accounts Payable $176,549.00Salaries and Wages Payable $4,416.00FICA Taxes Payable $8,630.00Income Taxes Payable $15,413.00Federal Withholding Taxes Payable $10,699.00State Withholding Taxes Payable $4,636.00FUTA Taxes Payable $400.00SUTA Taxes Payable $2,600.00Interest Payable $11,520.00Dividends Payable $8,280.00Total Current Liabilities $258,143.00
Long-Term LiabilitiesNotes Payable (LT Liability) $113,000.00Bonds Payable $275,000.00Discount on Bonds Payable -$4,864.00 $270,136.00Total Long-Term Liabilities $383,136.00Total Liabilities $641,279.00
Shareholder's EquityCommon Stock $207,000.00Paid-in Cap. In Excess of Stated Value $292,400.00Retained Earnings $580,677.00Less: Dividends -$8,280.00 Treasury Stock -$125,610.00 -133,890.00Total Shareholder's Equity $946,187.00 Total Liabilities and Shareholder's Equity $1,587,466.00
Accum. Depr. - Buildings
Accum. Depr. - Equipment
Accum. Depr. - Trucks
Rockford CorporationPost Closing Trial Balance
For Year Ending December 31, 2014
Account Titles Debit CreditCash 237,753Petty Cash 225Accounts Receivable 275,280Allowance for Doubtful Accounts 111,856Notes Receivable 104,200Interest Receivable 1,374Inventory 554,930Supplies 830Prepaid Insurance 5,200Prepaid Rent 2,800Other Assets 160,000Land 99,650Buildings 306,000
91,960Equipment 38,900
18,820Trucks 70,500
47,540Notes Payable 15,000Accounts Payable 176,549Salaries and Wages Payable 4,416FICA Taxes Payable 8,630Income Taxes Payable 15,413Federal Withholding Taxes Payable 10,699State Withholding Taxes Payable 4,636FUTA Taxes Payable 400SUTA Taxes Payable 2,600Interest Payable 11,520Dividends Payable 8,280Notes Payable (LT Liability) 113,000Bonds Payable 275,000Discount on Bonds Payable 4,864Common Stock 207,000Paid-in Cap. In Excess of Stated Value 292,400Retained Earnings 580,677Treasury Stock 125,610Dividends 8,280
Totals 1,996,396 1,996,396
Accum. Depr. - Buildings
Accum. Depr. - Equipment
Accum. Depr. - Trucks