Cumberland Water Sports Answer Book - PKL Software Busters June 16 Sales Returns and Allowances 402...

Cumberland Water Sports Answer Book 2nd Edition

Copyright © 2011 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com

Last Revised: March 7, 2011

Cumberland Water Sports Answer Book

2nd Edition

Student Documents and

Evaluation Answers




Student Documents

for

June 3 – 9 Module 1

The student is not required to print any documents for June 3 – 9. These documents would be printed for audit purposes only.

Answer Book

Cumberland Water SportsGeneral Journal

Date Accounts and Explanation PR Debit Credit----------------------------------------------------------------------------------

June 3 Cash 101 105.30 Service Fees Earned 411 97.50 Sales Tax Payable 205 7.80 Invoice: G4010

June 2 Cash 101 15.90 Miscellaneous Expense 635 15.90 Invoice: 67345

June 2 Advertising Expense 604 15.90 Cash 101 15.90 Check: ERROR Invoice: ERROR

June 3 Store Equipment and Fixtures 131 268.00 Store and Shop Supplies 127 115.42 Accounts Payable 201 383.42 Invoice: A4761 Vendor: 20110 Armor Supply

June 4 Cash 101 10,125.00 Watercraft and Accessory Sales 401 9,375.00 Sales Tax Payable 205 750.00 Invoice: G4011

June 4 Cost of Goods Sold 501 7,500.00 Merchandise Inventory 115 7,500.00 Invoice: G4011

June 4 Petty Cash 102 50.00 Store and Shop Supplies 127 23.50 Delivery Expense 606 18.75 Cash 101 92.25 Check: 31217 Invoice: PCASH

June 4 Allowance for Doubtful Accounts 106 1,005.50 Accounts Receivable 105 1,005.50 Invoice: WROFF Customer: 11340 Buster Jenkins

June 4 Cash 101 1,090.00 Unearned Storage Fees 221 1,090.00 Invoice: G4012

June 5 Merchandise Inventory 115 3,564.00 Accounts Payable 201 3,564.00 Invoice: S2717 Vendor: 28600 Starlight Sports

June 6 Cash 101 525.00 Dividends Earned 713 525.00 Invoice: CASHD

June 6 Cash 101 623.59 Watercraft and Accessory Sales 401 421.40 Service Fees Earned 411 156.00 Sales Tax Payable 205 46.19 Invoice: G4013

June 6 Cost of Goods Sold 501 210.70 Merchandise Inventory 115 210.70 Invoice: G4013

June 6 Merchandise Inventory 115 46,180.00 Transportation-In 505 100.00 Accounts Payable 201 46,280.00 Invoice: K4461 Vendor: 24500 Kawasaki USA

June 6 Accounts Receivable 105 349.27 Watercraft and Accessory Sales 401 323.40 Sales Tax Payable 205 25.87 Invoice: G4014 Customer: 11780 Runner Bay Jetters

June 6 Cost of Goods Sold 501 161.70 Merchandise Inventory 115 161.70 Invoice: G4014 Customer: 11780 Runner Bay Jetters

June 7 Cash 101 15,120.00 Watercraft and Accessory Sales 401 14,000.00 Sales Tax Payable 205 1,120.00 Invoice: G4015


June 7 Cash 101 25,000.00 Common Stock 301 25,000.00 Invoice: CMSTK

June 8 Accum. Deprec., Store Equip. and Fix. 132 950.00 Store Equipment and Fixtures 131 950.00 Invoice: DONAT

June 9 Advertising Expense 604 350.00 Cash 101 350.00 Check: 31218 Invoice: 90886

June 9 Dividends Payable 207 2,400.00 Cash 101 2,400.00 Check: 31219 Invoice: DIVPD

Answer Book

Cumberland Water Sports Trial Balance June 9, 2012

Account Titles Debit Credit --------------------------------------------------------------- Cash 75,853.01 Petty Cash 100.00 Short-Term Investments 15,200.00 Accounts Receivable 56,658.02 Allowance for Doubtful Accounts 981.82 Accts. Receivable, Credit Card Co. 8,124.00 Merchandise Inventory 222,663.02 Prepaid Insurance 4,475.00 Prepaid Property Tax 650.00 Store and Shop Supplies 3,102.92 Store Equipment and Fixtures 69,018.00 Accum. Deprec., Store Equip. and Fix. 6,800.00 Shop Equipment 34,250.00 Accum. Depreciation, Shop Equipment 14,520.00 Trucks 42,300.00 Accumulated Depreciation, Trucks 7,250.00 Accounts Payable 73,556.92 Notes Payable 12,000.00 Sales Tax Payable 4,370.26 Unearned Storage Fees 13,740.00 Long-term Notes Payable 70,000.00 Common Stock 225,000.00 Retained Earnings 68,902.77 Dividends Declared 2,400.00 Watercraft and Accessory Sales 236,769.80 Sales Returns and Allowances 2,117.00 Service Fees Earned 8,368.50 Cost of Goods Sold 160,222.40 Transportation-In 1,304.00 Salaries and Wages Expense 17,830.50 Truck and Equipment Operating Exp. 899.95 Advertising Expense 2,143.90 Delivery Expense 610.50 Credit Card Expense 1,112.00 Tools Expense 340.00 Rent Expense 15,600.00 Electricity and Gas Expense 877.05 Telephone Expense 423.00 Bank Service Charges 75.00 License Expense 416.00 Professional Services Expense 403.00 Cash Short and Over 18.00 Discounts Lost 35.00 Miscellaneous Expense 27.80 Interest Earned 283.00 Dividends Earned 638.00

Miscellaneous Revenue 20.00 Income Taxes Expense 3,250.00 Interest Expense 702.00 ---------- ---------- Total 743,201.07 743,201.07 ========== ==========




Student Documents

for


The student is required to print all documents shown for June 10 – 16 except the General Journal entries.

Answer Book



June 10 Dep. Expense, Store Equipment and Fix. 610 80.00 Accum. Deprec., Store Equip. and Fix. 132 80.00 Invoice: DEPRE

June 10 Cash 101 630.00 Accum. Deprec., Store Equip. and Fix. 132 1,280.00 Loss on Sale/Disposal of Assets 821 195.00 Store Equipment and Fixtures 131 2,105.00 Invoice: ASALE

June 10 Delivery Expense 606 124.60 Cash 101 124.60 Check: 31220 Invoice: R3449

June 10 Cash 101 7,460.00 Short-Term Investments 103 5,200.00 Gain on Short-Term Investments 731 2,260.00 Invoice: STINV

June 10 Accounts Receivable 105 1,330.00 Allowance for Doubtful Accounts 106 1,330.00 Invoice: RECOV Customer: 11685 Hazel Peske

June 10 Cash 101 1,330.00 Accounts Receivable 105 1,330.00 Invoice: RECOV Customer: 11685 Hazel Peske

June 11 Accounts Payable 201 19,305.00 Discounts Lost 633 195.00 Cash 101 19,500.00 Check: 31221 Invoice: W6438 Vendor: 29650 Water Dancer Jetcraft

June 11 Cash 101 7,880.28 Credit Card Expense 607 243.72 Accts. Receivable, Credit Card Co. 107 8,124.00 Invoice: CC202

June 13 Shop Equipment 135 3,260.00

Cash 101 3,260.00 Check: 31222 Invoice: EXTRA

June 14 Cash 101 5,000.00 Accounts Receivable 105 7,852.00 Watercraft and Accessory Sales 401 11,900.00 Sales Tax Payable 205 952.00 Invoice: G4016 Customer: 10300 Andy Barnes

June 14 Cost of Goods Sold 501 9,520.00 Merchandise Inventory 115 9,520.00 Invoice: G4016 Customer: 10300 Andy Barnes

June 14 Accounts Payable 201 6,880.00 Merchandise Inventory 115 6,880.00 Invoice: K4461 Debit Memo: DM601 Vendor: 24500 Kawasaki USA

June 14 Salaries and Wages Expense 601 446.35 Cash 101 446.35 Check: 31223 Invoice: WAGES

June 15 Accounts Receivable 105 5,080.00 Cash 101 5,000.00 Miscellaneous Revenue 741 80.00 Check: 10300 Invoice: G4016 Customer: 10300 Andy Barnes

June 15 Accounts Payable 201 3,564.00 Cash 101 3,564.00 Check: 31224 Invoice: S2717 Vendor: 28600 Starlight Sports

June 16 Accounts Payable 201 39,400.00 Cash 101 39,400.00 Check: 31225 Invoice: K4461 Vendor: 24500 Kawasaki USA

June 16 Cash 101 6,550.00 Accounts Receivable 105 6,550.00 Invoice: G3906 Customer: 11100 Glen Grady

June 16 Cash 101 1,814.40 Service Fees Earned 411 195.00 Watercraft and Accessory Sales 401 1,485.00 Sales Tax Payable 205 134.40 Invoice: G4017


June 16 Cash 101 25,440.00 Accounts Receivable 105 25,440.00 Invoice: G3954 Customer: 11990 Wave Busters

June 16 Sales Returns and Allowances 402 78.40 Sales Tax Payable 205 6.27 Accounts Receivable 105 84.67 Invoice: G4014 Credit Memo: CM601 Customer: 11780 Runner Bay Jetters

June 16 Merchandise Inventory 115 39.20 Cost of Goods Sold 501 39.20 Invoice: G4014 Debit Memo: CM601 Customer: 11780 Runner Bay Jetters

Answer Book


Account Titles Debit Credit --------------------------------------------------------------- Cash 60,662.74 Petty Cash 100.00 Short-Term Investments 10,000.00 Accounts Receivable 37,515.35 Allowance for Doubtful Accounts 2,311.82 Merchandise Inventory 205,114.22 Prepaid Insurance 4,475.00 Prepaid Property Tax 650.00 Store and Shop Supplies 3,102.92 Store Equipment and Fixtures 66,913.00 Accum. Deprec., Store Equip. and Fix. 5,600.00 Shop Equipment 37,510.00 Accum. Depreciation, Shop Equipment 14,520.00 Trucks 42,300.00 Accumulated Depreciation, Trucks 7,250.00 Accounts Payable 4,407.92 Notes Payable 12,000.00 Sales Tax Payable 5,450.39 Unearned Storage Fees 13,740.00 Long-term Notes Payable 70,000.00 Common Stock 225,000.00 Retained Earnings 68,902.77 Dividends Declared 2,400.00 Watercraft and Accessory Sales 250,154.80 Sales Returns and Allowances 2,195.40 Service Fees Earned 8,563.50 Cost of Goods Sold 170,891.20 Transportation-In 1,304.00 Salaries and Wages Expense 18,276.85 Truck and Equipment Operating Exp. 899.95 Advertising Expense 2,143.90 Delivery Expense 735.10 Credit Card Expense 1,355.72 Tools Expense 340.00 Dep. Expense, Store Equipment and Fix. 80.00 Rent Expense 15,600.00 Electricity and Gas Expense 877.05 Telephone Expense 423.00 Bank Service Charges 75.00 License Expense 416.00 Professional Services Expense 403.00 Cash Short and Over 18.00 Discounts Lost 230.00 Miscellaneous Expense 27.80 Interest Earned 283.00 Dividends Earned 638.00

Gain on Short-Term Investments 2,260.00 Miscellaneous Revenue 100.00 Income Taxes Expense 3,250.00 Interest Expense 702.00 Loss on Sale/Disposal of Assets 195.00 ---------- ---------- Total 691,182.20 691,182.20 ========== ==========

Answer Book

Cumberland Water SportsInventory AnalysisLast Activity Date: June 16 2012

Stock Inventory Reorder Units Unit At/BelowNumber Item Point On Hand Cost Reorder

A1100 JET SKI STX-15F 6 8 $ 7,500.00A6000 WATER DANCER SHARK 1 3 6,336.00A750X JET SKI STX-12F 2 3 6,600.00A900R WATER DANCER ROCKET 1 2 7,425.00A900T JET SKI 900 STX 3 5 5,600.00AA003 JET CRAFT III 1 2 5,445.00AL600 STARLIGHT TRAILER D 5 6 891.00AL800 STARLIGHT TRAILER T 2 2 1,188.00 YesAL900 STARLIGHT QUAD 2 3 1,980.00AS888 JET SKI 800 SX-R 3 2 4,760.00 YesAU150 JET SKI ULTRA 150 2 3 6,880.00BM102 HICKSETER PIPE 2 3 215.00BM105 FLAME ARRESTOR 38MM 4 2 30.50 YesBM106 CARB 38MM 2 3 110.00BM111 STAGE 2 KIT 4 5 240.00C0042 42 MM MULUK CARB 1 4 73.50C0110 RACING OIL (GAL.) 5 24 12.74C0300 STAINLESS IMP. 900 4 2 78.40 YesC0400 STAINLESS IMP. 1100 2 0 88.20 YesC1000 QUICK TURN NOZZLE 2 2 38.22 YesC3300 JET SUIT MEN'S 9 12 74.25C3400 JET SUIT WOMEN'S 9 22 79.26KW001 JS BATTERY 3 3 29.40 YesKW002 KAWASAKI OIL (CASE) 4 15 24.50KW003 NOZZLE EXTENSION 2 0 122.50 YesKW500 900 PAD KIT 3 5 39.20KW800 ZXi FUEL TANK 2 4 75.95M0222 JET SKI COVER 750 2 3 60.00M0666 MEN'S VEST SML 6 24 22.00M0777 WOMEN'S VEST SML 6 20 20.00M7000 CUSTOM RIDE PLATE 2 0 52.00 YesM9999 TWIN PIPE KIT 850 3 3 195.00 YesN6050 CUSTOM DECAL KIT 8 12 11.50R1000 CUMBERLAND T-SHIRTS 9 19 6.00R1500 CUMBERLAND CAPS 9 35 4.00

Items At or Below Reorder Point: 10

Total Value of Inventory: 205,114.22

Answer Book

Cumberland Water Sports Schedule of Accounts Receivable Last Activity Date: June 16, 2012

Number Name Balance 10300 Andy Barnes $ 12,932.00 10550 Broken Arrow Jet Skiers .00 10890 Sean Dee 375.25 10930 Folsom Lake Skimmers .00 11100 Glen Grady 11,100.00 11220 Isabelle Hart .00 11340 Buster Jenkins .00 11560 Chris Nelson 12,100.00 11640 Paul Owens 241.50 11685 Hazel Peske .00 11780 Runner Bay Jetters 766.60 11850 Sierra Jet Set .00 11960 Don Temple .00 11990 Wave Busters .00 ---------- Total Accounts Receivable $ 37,515.35 ==========

Answer Book

Cumberland Water Sports All Accounts Receivable Customers Number: 10300 Name: Andy Barnes Address: 455 Sierra Blvd. Rocklin, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 June 14 G4016 7,852.00 7,852.00 June 15 G4016 10300 5,080.00 12,932.00 ______________________________________________________________________

Number: 10550 Name: Broken Arrow Jet Skiers Address: 4455 Gold Pan St. Colfax, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 ______________________________________________________________________

Number: 10890 Name: Sean Dee Address: 100 Sierra Views Blvd. Roseville, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 30 G4000 375.25 375.25 ______________________________________________________________________

Number: 10930 Name: Folsom Lake Skimmers Address: 620 Riverside Drive Folsom, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 ______________________________________________________________________

Number: 11100 Name: Glen Grady Address: 10 Gold Rush Plaza Orangevale, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 3 G3906 17,650.00 17,650.00 June 16 G3906 6,550.00 11,100.00 ______________________________________________________________________

Number: 11220 Name: Isabelle Hart Address: 356 Hill Rd. Auburn, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 ______________________________________________________________________

Number: 11340 Name: Buster Jenkins Address: PO Box 267 Apple Hill, CA Date Explanation Debit Credit Balance ______________________________________________________________________ March 5 G3697 1,005.50 1,005.50 June 4 WROFF 1,005.50 0.00 ______________________________________________________________________

Number: 11560 Name: Chris Nelson Address: 124 Cedar Dr. Granite Bay, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 29 G3995 12,100.00 12,100.00 ______________________________________________________________________

Number: 11640 Name: Paul Owens Address: 1800 Ridge Road Loomis, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 12 G3924 241.50 241.50 ______________________________________________________________________

Number: 11685 Name: Hazel Peske Address: 900 Ranch Road Auburn, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 June 10 RECOV 1,330.00 1,330.00 June 10 RECOV 1,330.00 0.00 ______________________________________________________________________

Number: 11780 Name: Runner Bay Jetters Address: 10 Royal Bar Blvd. Penryn, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 21 G3971 502.00 502.00 June 6 G4014 349.27 851.27 June 16 G4014 CM601 84.67 766.60 ______________________________________________________________________

Number: 11850 Name: Sierra Jet Set Address: PO Box 341A Truckee, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 ______________________________________________________________________

Number: 11960 Name: Don Temple Address: 1369 Laird Road Lommis, CA Date Explanation Debit Credit Balance

______________________________________________________________________ June 2 Balance 0.00 ______________________________________________________________________

Number: 11990 Name: Wave Busters Address: 245 Redwing Ct. Penryn, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 17 G3954 25,440.00 25,440.00 June 16 G3954 25,440.00 0.00 ______________________________________________________________________

Answer Book

Cumberland Water Sports Schedule of Accounts Payable Last Activity Date: June 16, 2012

Number Name Balance 20110 Armor Supply $ 498.92 20950 Baker Marine Supply 2,864.00 22400 Clear Water, Inc. .00 24100 Jacoby, Incorporated .00 24500 Kawasaki USA .00 26950 Len's Sporting Goods 1,045.00 27400 Riptide Marine, Inc. .00 28600 Starlight Sports .00 29650 Water Dancer Jetcraft .00 ---------- Total Accounts Payable $ 4,407.92 ==========

Answer Book

Vendor Data

Number: 20110 Name: Armor Supply Address: 100 Watt Avenue Sacramento, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ May 28 A4435 115.50 115.50 June 3 A4761 383.42 498.92 _______________________________________________________________________

Number: 20950 Name: Baker Marine Supply Address: 240 Shasta Lake Lane Redding, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 1 B9524 2,864.00 2,864.00 _______________________________________________________________________

Number: 22400 Name: Clear Water, Inc. Address: 900 Stadium Drive Auburn, CA 2/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 Balance 0.00 _______________________________________________________________________

Number: 24100 Name: Jacoby, Incorporated Address: 3700 Gold Rush Ave. Gold Hill, Ca Net 10


Number: 24500 Name: Kawasaki USA Address: 4772 Oak Drive Hover City, CA 2/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 Balance 0.00 June 6 K4461 46,280.00 46,280.00

June 14 K4461 DM601 6,880.00 39,400.00 June 16 31225 K4461 39,400.00 0.00 _______________________________________________________________________

Number: 26950 Name: Len's Sporting Goods Address: 3588 Vista View Drive Eureka, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 M1201 1,045.00 1,045.00 _______________________________________________________________________

Number: 27400 Name: Riptide Marine, Inc. Address: 5234 Almond Street Corning, Ca Net 30


Number: 28600 Name: Starlight Sports Address: 2233 Starlight Rd. Red Bluff, Ca 1/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 Balance 0.00 June 5 S2717 3,564.00 3,564.00 June 15 31224 S2717 3,564.00 0.00 _______________________________________________________________________

Number: 29650 Name: Water Dancer Jetcraft Address: 1560 Olive Hurst Ave. Oroville, CA 1/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ May 13 W6438 19,305.00 19,305.00 June 11 31221 W6438 19,305.00 0.00 _______________________________________________________________________

Answer Book

Cumberland Water SportsLedger Card

Account: 101 Cash

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 26,106.37June 3 G4010 105.30 26,211.67June 2 67345 15.90 26,227.57June 2 ERROR ERROR 15.90 26,211.67June 4 G4011 10,125.00 36,336.67June 4 31217 PCASH 92.25 36,244.42June 4 G4012 1,090.00 37,334.42June 6 CASHD 525.00 37,859.42June 6 G4013 623.59 38,483.01June 7 G4015 15,120.00 53,603.01June 8 CMSTK 25,000.00 78,603.01June 9 31218 90886 350.00 78,253.01June 9 31219 DIVPD 2,400.00 75,853.01June 10 ASALE 630.00 76,483.01June 10 31220 R3449 124.60 76,358.41June 10 STINV 7,460.00 83,818.41June 10 11685 RECOV 1,330.00 85,148.41June 11 31221 29650 W6438 19,500.00 65,648.41June 11 CC202 7,880.28 73,528.69June 13 31222 EXTRA 3,260.00 70,268.69June 14 10300 G4016 5,000.00 75,268.69June 14 31223 WAGES 446.35 74,822.34June 15 10300 10300 G4016 5,000.00 69,822.34June 15 31224 28600 S2717 3,564.00 66,258.34June 16 31225 24500 K4461 39,400.00 26,858.34June 16 11100 G3906 6,550.00 33,408.34June 16 G4017 1,814.40 35,222.74June 16 11990 G3954 25,440.00 60,662.74

Answer Book


Account: 105 Accounts Receivable

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 57,314.25June 4 11340 WROFF 1,005.50 56,308.75June 6 11780 G4014 349.27 56,658.02June 10 11685 RECOV 1,330.00 57,988.02June 10 11685 RECOV 1,330.00 56,658.02June 14 10300 G4016 7,852.00 64,510.02June 15 10300 10300 G4016 5,080.00 69,590.02June 16 11100 G3906 6,550.00 63,040.02June 16 11990 G3954 25,440.00 37,600.02June 16 11780 G4014 CM601 84.67 37,515.35

Answer Book


Account: 115 Merchandise Inventory

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 191,991.42June 4 G4011 7,500.00 184,491.42June 5 28600 S2717 3,564.00 188,055.42June 6 G4013 210.70 187,844.72June 6 24500 K4461 46,180.00 234,024.72June 6 11780 G4014 161.70 233,863.02June 7 G4015 11,200.00 222,663.02June 14 10300 G4016 9,520.00 213,143.02June 14 24500 K4461 DM601 6,880.00 206,263.02June 16 G4017 1,188.00 205,075.02June 16 11780 G4014 CM601 39.20 205,114.22

Answer Book


Account: 201 Accounts Payable

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 23,329.50June 3 20110 A4761 383.42 23,712.92June 5 28600 S2717 3,564.00 27,276.92June 6 24500 K4461 46,280.00 73,556.92June 11 31221 29650 W6438 19,305.00 54,251.92June 14 24500 K4461 DM601 6,880.00 47,371.92June 15 31224 28600 S2717 3,564.00 43,807.92June 16 31225 24500 K4461 39,400.00 4,407.92

Answer Book


Account: 401 Watercraft and Accessory Sales

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 212,650.00June 4 G4011 9,375.00 222,025.00June 6 G4013 421.40 222,446.40June 6 11780 G4014 323.40 222,769.80June 7 G4015 14,000.00 236,769.80June 14 10300 G4016 11,900.00 248,669.80June 16 G4017 1,485.00 250,154.80

Answer Book


Account: 501 Cost of Goods Sold

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 141,150.00June 4 G4011 7,500.00 148,650.00June 6 G4013 210.70 148,860.70June 6 11780 G4014 161.70 149,022.40June 7 G4015 11,200.00 160,222.40June 14 10300 G4016 9,520.00 169,742.40June 16 G4017 1,188.00 170,930.40June 16 11780 G4014 CM601 39.20 170,891.20

Answer Book

Cumberland Water SportsInventory Item: JET SKI STX-15F Stock Number: A1100Reorder Point: 6

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 6June 04 1 CASH G4011 June 06 3 24500 K4461 ____________________________________________________________

Beginning Units: 6 Unit Balance: 8 Units In: 3 Unit Cost: 7,500.00 Units Out: 1 FIFO Value: 60,000.00____________________________________________________________

Answer Book

Cumberland Water SportsInventory Item: JET SKI 800 SX-R Stock Number: AS888Reorder Point: 3

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 4June 14 2 10300 G4016 ____________________________________________________________


Answer Book

Cumberland Water SportsInventory Item: JET SKI ULTRA 150 Stock Number: AU150Reorder Point: 2

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 3June 06 1 24500 K4461 June 14 1 24500 K4461 DM601____________________________________________________________


Answer Book

Cumberland Water SportsInventory Item: JS BATTERY Stock Number: KW001Reorder Point: 3

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 3____________________________________________________________

Beginning Units: 3 Unit Balance: 3 Units In: 0 Unit Cost: 29.40 Units Out: 0 FIFO Value: 88.20____________________________________________________________

Answer Book

Cumberland Water SportsInventory Item: NOZZLE EXTENSION Stock Number: KW003Reorder Point: 2

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 2June 06 1 CASH G4013 June 06 1 11780 G4014 ____________________________________________________________


Answer Book

Cumberland Water SportsInventory Item: ZXi FUEL TANK Stock Number: KW800Reorder Point: 2



Answer Book

Cumberland Water SportsInventory Item: CUMBERLAND CAPS Stock Number: R1500Reorder Point: 9






Mid-‐Project Evaluation

Questions and Answers

Answer Book

MID PROJECT EVALUATIONCumberland Water Sports Score: 30 Percent Score: 100% Question YourNumber Answer---------------------------------------------------------------------- 1. What is the net realizable value of the Accounts B Receivable? A) $39,827.17 B) $35,203.53 C) $37,503.53 D) $35,203.00 E) None of the above

2. What was the correct balance of the Cash account $37,334.42 at the close of business on June 4?

3. On the Cash ledger card, what item was paid with B check number 31223? A) Petty Cash B) Wages C) Accounts Payable D) Accounts Receivable E) None of the above

4. On June 16 what invoice was paid in full with K4461 check number 31225?

5. What has been the cost to Cumberland Water Sports $1,355.72 for customer use of credit cards?

6. How much have freight costs for the purchase of $1,304.00 merchandise added to the Cost of Goods Sold?

7. How much has it cost Cumberland Water Sports to $735.10 send merchandise to customers?

8. Identify by customer number, the customer who 11100 made a partial payment on invoice G3906?

9. What date was the payment made on invoice G3906? D A) June 13 B) June 14 C) June 15 D) June 16 E) None of the above

10. Does the balance of the Schedule of Accounts A Receivable match the balance of the Accounts

Receivable account? A) Yes B) No

11. What is the balance of Sean Dee’s account? $375.25

12. How many customers currently have outstanding C account balances? A) 2 B) 4 C) 6 D) 7 E) None of the above

13. If Cumberland Water Sports extends 30-day credit B to all charge customers, which customer currently has the largest past-due account (over 30 days)? A) Barnes B) Grady C) Jenkins D) Nelson E) None of the above

14. What was the balance of the Kawaski USA account $39,400.00 after the recording of the debit memo?

15. If the control system in place for handling B invoices had been followed, the Water Dancer Jet Craft invoice (W6438) should have been paid by what date? A) May 22 B) May 23 C) May 24 D) June 2 E) None of the above

16. On what date is the June 3 invoice from Armor C Supply invoice due and payable? A) June 26 B) June 28 C) July 3 D) July 5 E) None of the above

17. The Kawasaki, USA invoice K4461, was recorded net A (terms of 2/10, n/30), and paid on June 16. How much was saved by taking the discount? A) $804.08 B) $788.00 C) $397.97 D) $722.54 E) None of the above

18. The balance owed to Len's Sporting Goods should C be paid no later than which date? A) June 30 B) July 1

C) July 2 D) July 5 E) None of the above

19. Are any of the current Accounts Payable account B balances past due? A) Yes B) No

20. How many inventory items are at or below the C reorder point? A) 6 B) 8 C) 10 D) 12 E) None of the above

21. How many inventory items are currently `out of B stock`? A) 1 B) 3 C) 5 D) 8 E) 10

22. If all of the R1500 Cumberland Caps currently in $204,974.22 stock were sold, what would be the new value of the June 16 total ending inventory?

23. Should a purchase order be sent to Kawasaki, USA A for additional inventory of batteries (KW001)? A) Yes B) No

24. To what inventory item has stock number KW800 A been assigned? A) ZXi Fuel Tank B) Pad Kit C) Cumberland Bag D) Stage 2 Kit E) None of the above

25. On the inventory stock card how many units of E stock number AU150 are listed as returned to the vendor? A) 2 B) 3 C) 4 D) 5 E) None of the above

26. How many AS888 Jet Ski units have been sold since 2 you began working on this project?

27. One order of Jet Ski STX-15F (A1100) has been A received since June 2. The Jet Skies were purchased on account from which vendor?

A) 24500 B) 26950 C) 27400 D) 28600 E) None of the above

28. How many KW003 units were sold on June 06? C

A) 5 B) 4 C) 2 D) 1 E) None of the above

29. When a credit customer return merchansie, which B document is issued to the customer by Cumberland Water Sports? A) debit memorandum B) credit memorandum C) an invoice D) a check E) None of the above

30. When Cumberland Water Sports returns merchandise A to a vendor, which document accompanies the merchandise on the return? A) debit memorandum B) a check C) an invoice D) a credit memorandum E) None of the above




Student Documents

for



Answer Book



June 17 Notes Payable 203 12,000.00 Interest Expense 813 330.00 Cash 101 12,330.00 Check: 31226 Invoice: NTPAY

June 18 Accounts Receivable 105 21,250.35 Watercraft and Accessory Sales 401 19,676.25 Sales Tax Payable 205 1,574.10 Invoice: G4018 Customer: 11850 Sierra Jet Set

June 18 Cost of Goods Sold 501 15,741.00 Merchandise Inventory 115 15,741.00 Invoice: G4018 Customer: 11850 Sierra Jet Set

June 19 Cash 101 1,200.00 Unearned Storage Fees 221 1,200.00 Invoice: G4019

June 20 Cash 101 417.33 Accounts Receivable 105 417.33 Invoice: G3971 Customer: 11780 Runner Bay Jetters

June 20 Accts. Receivable, Credit Card Co. 107 692.55 Watercraft and Accessory Sales 401 430.00 Service Fees Earned 411 211.25 Sales Tax Payable 205 51.30 Invoice: G4020

June 20 Cost of Goods Sold 501 215.00 Merchandise Inventory 115 215.00 Invoice: G4020

June 21 Depreciation Expense, Trucks 612 270.00 Accumulated Depreciation, Trucks 140 270.00 Invoice: DEPRE

June 21 Trucks 139 17,505.00 Accumulated Depreciation, Trucks 140 3,450.00 Cash 101 16,125.00

Trucks 139 4,830.00 Check: 31227 Invoice: W3571

June 21 License Expense 628 530.00 Cash 101 530.00 Check: 31288 Invoice: DMV06

June 21 Store Equipment and Fixtures 131 5,054.40 Cash 101 5,054.40 Check: 31229 Invoice: 79002

June 21 Merchandise Inventory 115 635.00 Accounts Payable 201 635.00 Invoice: M3093 Vendor: 26950 Len's Sporting Goods

June 22 Store and Shop Supplies 127 635.40 Accounts Payable 201 635.40 Invoice: A5049 Vendor: 20110 Armor Supply

June 22 Cash 101 13,922.00 Notes Receivable 109 10,000.00 Watercraft and Accessory Sales 401 22,150.00 Sales Tax Payable 205 1,772.00 Invoice: G4021


June 23 Merchandise Inventory 115 529.20 Accounts Payable 201 529.20 Invoice: C5217 Vendor: 22400 Clear Water, Inc.

June 23 Cash 101 5,080.00 Accounts Receivable 105 5,080.00 Invoice: BADCK Customer: 10300 Andy Barnes

June 23 Accounts Payable 201 38.90 Store and Shop Supplies 127 38.90 Invoice: A5049 Vendor: 20110 Armor Supply

June 23 Depreciation Expense, Shop Equipment 611 260.00 Accum. Depreciation, Shop Equipment 136 260.00 Invoice: ASALE

June 23 Cash 101 340.00 Accum. Depreciation, Shop Equipment 136 2,090.00 Shop Equipment 135 2,200.00 Gain on Sale of Assets 721 230.00 Invoice: ASALE

Answer Book


Account Titles Debit Credit --------------------------------------------------------------- Cash 47,582.67 Petty Cash 100.00 Short-Term Investments 10,000.00 Accounts Receivable 53,268.37 Allowance for Doubtful Accounts 2,311.82 Accts. Receivable, Credit Card Co. 692.55 Notes Receivable 10,000.00 Merchandise Inventory 172,602.42 Prepaid Insurance 4,475.00 Prepaid Property Tax 650.00 Store and Shop Supplies 3,699.42 Store Equipment and Fixtures 71,967.40 Accum. Deprec., Store Equip. and Fix. 5,600.00 Shop Equipment 35,310.00 Accum. Depreciation, Shop Equipment 12,690.00 Trucks 54,975.00 Accumulated Depreciation, Trucks 4,070.00 Accounts Payable 6,168.62 Sales Tax Payable 8,847.79 Unearned Storage Fees 14,940.00 Long-term Notes Payable 70,000.00 Common Stock 225,000.00 Retained Earnings 68,902.77 Dividends Declared 2,400.00 Watercraft and Accessory Sales 292,411.05 Sales Returns and Allowances 2,195.40 Service Fees Earned 8,774.75 Cost of Goods Sold 204,567.20 Transportation-In 1,304.00 Salaries and Wages Expense 18,276.85 Truck and Equipment Operating Exp. 899.95 Advertising Expense 2,143.90 Delivery Expense 735.10 Credit Card Expense 1,355.72 Tools Expense 340.00 Dep. Expense, Store Equipment and Fix. 80.00 Depreciation Expense, Shop Equipment 260.00 Depreciation Expense, Trucks 270.00 Rent Expense 15,600.00 Electricity and Gas Expense 877.05 Telephone Expense 423.00 Bank Service Charges 75.00 License Expense 946.00 Professional Services Expense 403.00 Cash Short and Over 18.00 Discounts Lost 230.00

Miscellaneous Expense 27.80 Interest Earned 283.00 Dividends Earned 638.00 Gain on Sale of Assets 230.00 Gain on Short-Term Investments 2,260.00 Miscellaneous Revenue 100.00 Income Taxes Expense 3,250.00 Interest Expense 1,032.00 Loss on Sale/Disposal of Assets 195.00 ---------- ---------- Total 723,227.80 723,227.80 ========== ==========

Answer Book



A1100 JET SKI STX-15F 6 8 $ 7,500.00A6000 WATER DANCER SHARK 1 3 6,336.00A750X JET SKI STX-12F 2 3 6,600.00A900R WATER DANCER ROCKET 1 0 7,425.00 YesA900T JET SKI 900 STX 3 5 5,600.00AA003 JET CRAFT III 1 2 5,445.00AL600 STARLIGHT TRAILER D 5 5 891.00 YesAL800 STARLIGHT TRAILER T 2 2 1,188.00 YesAL900 STARLIGHT QUAD 2 1 1,980.00 YesAS888 JET SKI 800 SX-R 3 2 4,760.00 YesAU150 JET SKI ULTRA 150 2 1 6,880.00 YesBM102 HICKSETER PIPE 2 2 215.00 YesBM105 FLAME ARRESTOR 38MM 4 2 30.50 YesBM106 CARB 38MM 2 3 110.00BM111 STAGE 2 KIT 4 5 240.00C0042 42 MM MULUK CARB 1 4 73.50C0110 RACING OIL (GAL.) 5 24 12.74C0300 STAINLESS IMP. 900 4 2 78.40 YesC0400 STAINLESS IMP. 1100 2 6 88.20C1000 QUICK TURN NOZZLE 2 2 38.22 YesC3300 JET SUIT MEN'S 9 12 74.25C3400 JET SUIT WOMEN'S 9 22 79.26KW001 JS BATTERY 3 3 29.40 YesKW002 KAWASAKI OIL (CASE) 4 15 24.50KW003 NOZZLE EXTENSION 2 0 122.50 YesKW500 900 PAD KIT 3 5 39.20KW800 ZXi FUEL TANK 2 4 75.95M0222 JET SKI COVER 750 2 3 60.00M0666 MEN'S VEST SML 6 24 22.00M0777 WOMEN'S VEST SML 6 20 20.00M7000 CUSTOM RIDE PLATE 2 10 52.00M9999 TWIN PIPE KIT 850 3 3 195.00 YesN6050 CUSTOM DECAL KIT 8 22 11.50R1000 CUMBERLAND T-SHIRTS 9 19 6.00R1500 CUMBERLAND CAPS 9 35 4.00






Student Documents

for



Answer Book



June 24 Truck and Equipment Operating Exp. 603 363.70 Cash 101 363.70 Check: 31230 Invoice: 67676

June 24 Advertising Expense 604 1,375.00 Cash 101 1,375.00 Check: 31231 Invoice: W3200

June 24 Professional Services Expense 629 505.00 Cash 101 505.00 Check: 31232 Invoice: P1764

June 24 Prepaid Insurance 121 1,800.00 Cash 101 1,800.00 Check: 31233 Invoice: 66633

June 24 Merchandise Inventory 115 2,107.00 Accounts Payable 201 2,107.00 Invoice: K5050 Vendor: 24500 Kawasaki USA

June 25 Cash 101 9,099.00 Watercraft and Accessory Sales 401 8,425.00 Sales Tax Payable 205 674.00 Invoice: G4022


June 25 Cash 101 11,100.00 Accounts Receivable 105 11,100.00 Invoice: G3906 Customer: 11100 Glen Grady

June 26 Accounts Receivable 105 529.20 Watercraft and Accessory Sales 401 490.00 Sales Tax Payable 205 39.20 Invoice: G4023 Customer: 11560

Chris Nelson

June 26 Cost of Goods Sold 501 245.00 Merchandise Inventory 115 245.00 Invoice: G4023 Customer: 11560 Chris Nelson

June 27 Sales Tax Payable 205 8,847.79 Cash 101 8,847.79 Check: 31234 Invoice: TAXES

June 27 Accounts Payable 201 115.50 Cash 101 115.50 Check: 31235 Invoice: AA443 Vendor: 20110 Armor Supply

June 28 Cash 101 700.00 Unearned Storage Fees 221 700.00 Invoice: G4024

June 28 Merchandise Inventory 115 9,900.00 Accounts Payable 201 9,900.00 Invoice: S3488 Vendor: 28600 Starlight Sports

June 28 Accts. Receivable, Credit Card Co. 107 14,701.50 Watercraft and Accessory Sales 401 13,612.50 Sales Tax Payable 205 1,089.00 Invoice: G4025


June 28 Delivery Expense 606 287.00 Accounts Payable 201 287.00 Invoice: J1400 Vendor: 24100 Jacoby, Incorporated

June 28 Cash 101 386.10 Service Fees Earned 411 357.50 Sales Tax Payable 205 28.60 Invoice: G4026

June 28 Cash 101 12,100.00 Accounts Receivable 105 12,100.00 Invoice: G3995 Customer: 11560 Chris Nelson

June 29 Salaries and Wages Expense 601 409.06

Cash 101 409.06 Check: 31236 Invoice: WAGES

June 30 Store and Shop Supplies 127 87.50 Cash Short and Over 631 3.05 Miscellaneous Expense 635 7.50 Cash 101 98.05 Check: 31237 Invoice: PCASH

June 30 Cash 101 11,225.00 Short-Term Investments 103 8,000.00 Gain on Short-Term Investments 731 3,225.00 Invoice: INVST

June 30 Sales Returns and Allowances 402 58.80 Sales Tax Payable 205 4.70 Accounts Receivable 105 63.50 Invoice: G4023 Credit Memo: CM602 Customer: 11560 Chris Nelson

June 30 Merchandise Inventory 115 29.40 Cost of Goods Sold 501 29.40 Invoice: G4023 Debit Memo: CM602 Customer: 11560 Chris Nelson

Answer Book


Account Titles Debit Credit --------------------------------------------------------------- Cash 78,678.67 Petty Cash 100.00 Short-Term Investments 2,000.00 Accounts Receivable 30,534.07 Allowance for Doubtful Accounts 2,311.82 Accts. Receivable, Credit Card Co. 15,394.05 Notes Receivable 10,000.00 Merchandise Inventory 166,763.82 Prepaid Insurance 6,275.00 Prepaid Property Tax 650.00 Store and Shop Supplies 3,786.92 Store Equipment and Fixtures 71,967.40 Accum. Deprec., Store Equip. and Fix. 5,600.00 Shop Equipment 35,310.00 Accum. Depreciation, Shop Equipment 12,690.00 Trucks 54,975.00 Accumulated Depreciation, Trucks 4,070.00 Accounts Payable 18,347.12 Sales Tax Payable 1,826.10 Unearned Storage Fees 15,640.00 Long-term Notes Payable 70,000.00 Common Stock 225,000.00 Retained Earnings 68,902.77 Dividends Declared 2,400.00 Watercraft and Accessory Sales 314,938.55 Sales Returns and Allowances 2,254.20 Service Fees Earned 9,132.25 Cost of Goods Sold 222,412.80 Transportation-In 1,304.00 Salaries and Wages Expense 18,685.91 Truck and Equipment Operating Exp. 1,263.65 Advertising Expense 3,518.90 Delivery Expense 1,022.10 Credit Card Expense 1,355.72 Tools Expense 340.00 Dep. Expense, Store Equipment and Fix. 80.00 Depreciation Expense, Shop Equipment 260.00 Depreciation Expense, Trucks 270.00 Rent Expense 15,600.00 Electricity and Gas Expense 877.05 Telephone Expense 423.00 Bank Service Charges 75.00 License Expense 946.00 Professional Services Expense 908.00 Cash Short and Over 21.05 Discounts Lost 230.00

Answer Book



A1100 JET SKI STX-15F 6 8 $ 7,500.00A6000 WATER DANCER SHARK 1 3 6,336.00A750X JET SKI STX-12F 2 3 6,600.00A900R WATER DANCER ROCKET 1 0 7,425.00 YesA900T JET SKI 900 STX 3 5 5,600.00AA003 JET CRAFT III 1 0 5,445.00 YesAL600 STARLIGHT TRAILER D 5 5 891.00 YesAL800 STARLIGHT TRAILER T 2 2 1,188.00 YesAL900 STARLIGHT QUAD 2 5 1,980.00AS888 JET SKI 800 SX-R 3 1 4,760.00 YesAU150 JET SKI ULTRA 150 2 1 6,880.00 YesBM102 HICKSETER PIPE 2 2 215.00 YesBM105 FLAME ARRESTOR 38MM 4 2 30.50 YesBM106 CARB 38MM 2 3 110.00BM111 STAGE 2 KIT 4 5 240.00C0042 42 MM MULUK CARB 1 4 73.50C0110 RACING OIL (GAL.) 5 24 12.74C0300 STAINLESS IMP. 900 4 0 78.40 YesC0400 STAINLESS IMP. 1100 2 6 88.20C1000 QUICK TURN NOZZLE 2 2 38.22 YesC3300 JET SUIT MEN'S 9 12 74.25C3400 JET SUIT WOMEN'S 9 22 79.26KW001 JS BATTERY 3 31 29.40KW002 KAWASAKI OIL (CASE) 4 15 24.50KW003 NOZZLE EXTENSION 2 10 122.50KW500 900 PAD KIT 3 5 39.20KW800 ZXi FUEL TANK 2 4 75.95M0222 JET SKI COVER 750 2 3 60.00M0666 MEN'S VEST SML 6 24 22.00M0777 WOMEN'S VEST SML 6 20 20.00M7000 CUSTOM RIDE PLATE 2 10 52.00M9999 TWIN PIPE KIT 850 3 3 195.00 YesN6050 CUSTOM DECAL KIT 8 22 11.50R1000 CUMBERLAND T-SHIRTS 9 19 6.00R1500 CUMBERLAND CAPS 9 35 4.00



Answer Book


Account: 101 Cash

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 26,106.37June 3 G4010 105.30 26,211.67June 2 67345 15.90 26,227.57June 2 ERROR ERROR 15.90 26,211.67June 4 G4011 10,125.00 36,336.67June 4 31217 PCASH 92.25 36,244.42June 4 G4012 1,090.00 37,334.42June 6 CASHD 525.00 37,859.42June 6 G4013 623.59 38,483.01June 7 G4015 15,120.00 53,603.01June 8 CMSTK 25,000.00 78,603.01June 9 31218 90886 350.00 78,253.01June 9 31219 DIVPD 2,400.00 75,853.01June 10 ASALE 630.00 76,483.01June 10 31220 R3449 124.60 76,358.41June 10 STINV 7,460.00 83,818.41June 10 11685 RECOV 1,330.00 85,148.41June 11 31221 29650 W6438 19,500.00 65,648.41June 11 CC202 7,880.28 73,528.69June 13 31222 EXTRA 3,260.00 70,268.69June 14 10300 G4016 5,000.00 75,268.69June 14 31223 WAGES 446.35 74,822.34June 15 10300 10300 G4016 5,000.00 69,822.34June 15 31224 28600 S2717 3,564.00 66,258.34June 16 31225 24500 K4461 39,400.00 26,858.34June 16 11100 G3906 6,550.00 33,408.34June 16 G4017 1,814.40 35,222.74June 16 11990 G3954 25,440.00 60,662.74June 17 31226 NTPAY 12,330.00 48,332.74June 19 G4019 1,200.00 49,532.74June 20 11780 G3971 417.33 49,950.07June 21 31227 W3571 16,125.00 33,825.07June 21 31228 DMV06 530.00 33,295.07June 21 31229 79002 5,054.40 28,240.67June 22 G4021 13,922.00 42,162.67June 23 10300 BADCK 5,080.00 47,242.67June 23 ASALE 340.00 47,582.67June 24 31230 67676 363.70 47,218.97June 24 31231 W3200 1,375.00 45,843.97June 24 31232 P1764 505.00 45,338.97June 24 31233 66633 1,800.00 43,538.97June 25 G4022 9,099.00 52,637.97June 25 11100 G3906 11,100.00 63,737.97June 27 31234 TAXES 8,847.79 54,890.18June 27 31235 20110 A4435 115.50 54,774.68June 28 G4024 700.00 55,474.68

June 28 G4026 386.10 55,860.78June 28 11560 G3995 12,100.00 67,960.78June 29 31236 WAGES 409.06 67,551.72June 30 31237 PCASH 98.05 67,453.67June 30 INVST 11,225.00 78,678.67June 30 BKS06 68.30 78,746.97June 30 BKS06 BKS06 379.45 78,367.52

Answer Book


Account: 607 Credit Card Expense

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 1,112.00June 11 CC202 243.72 1,355.72June 30 BKS06 BKS06 338.35 1,694.07

Answer Book


Account: 627 Bank Service Charges

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 75.00June 30 BKS06 BKS06 41.10 116.10

Answer Book


Account: 711 Interest Earned

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 283.00June 30 BKS06 68.30 351.30

Answer Book

Cumberland Water Sports Trial Balance After Bank Reconcilation June 30, 2012

Account Titles Debit Credit --------------------------------------------------------------- Cash 78,367.52 Petty Cash 100.00 Short-Term Investments 2,000.00 Accounts Receivable 30,534.07 Allowance for Doubtful Accounts 2,311.82 Accts. Receivable, Credit Card Co. 15,394.05 Notes Receivable 10,000.00 Merchandise Inventory 166,763.82 Prepaid Insurance 6,275.00 Prepaid Property Tax 650.00 Store and Shop Supplies 3,786.92 Store Equipment and Fixtures 71,967.40 Accum. Deprec., Store Equip. and Fix. 5,600.00 Shop Equipment 35,310.00 Accum. Depreciation, Shop Equipment 12,690.00 Trucks 54,975.00 Accumulated Depreciation, Trucks 4,070.00 Accounts Payable 18,347.12 Sales Tax Payable 1,826.10 Unearned Storage Fees 15,640.00 Long-term Notes Payable 70,000.00 Common Stock 225,000.00 Retained Earnings 68,902.77 Dividends Declared 2,400.00 Watercraft and Accessory Sales 314,938.55 Sales Returns and Allowances 2,254.20 Service Fees Earned 9,132.25 Cost of Goods Sold 222,412.80 Transportation-In 1,304.00 Salaries and Wages Expense 18,685.91 Truck and Equipment Operating Exp. 1,263.65 Advertising Expense 3,518.90 Delivery Expense 1,022.10 Credit Card Expense 1,694.07 Tools Expense 340.00 Dep. Expense, Store Equipment and Fix. 80.00 Depreciation Expense, Shop Equipment 260.00 Depreciation Expense, Trucks 270.00 Rent Expense 15,600.00 Electricity and Gas Expense 877.05 Telephone Expense 423.00 Bank Service Charges 116.10 License Expense 946.00 Professional Services Expense 908.00 Cash Short and Over 21.05 Discounts Lost 230.00




Student Documents

for

Adjusting and Closing Entries Module 5

The student is required to print all documents shown for Adjusting and Closing entries

except the General Journal entries.

Answer Book



June 30 Insurance Expense 622 2,495.00 Prepaid Insurance 121 2,495.00 Adjusting Entry

June 30 Store and Shop Supplies Expense 602 1,644.92 Store and Shop Supplies 127 1,644.92 Adjusting Entry

June 30 Prepaid Advertising 125 985.00 Advertising Expense 604 985.00 Adjusting Entry

June 30 Property Tax Expense 624 650.00 Prepaid Property Tax 124 650.00 Adjusting Entry

June 30 Salaries and Wages Expense 601 141.25 Salaries and Wages Payable 209 141.25 Adjusting Entry

June 30 Unearned Storage Fees 221 10,450.00 Storage Fees Earned 421 10,450.00 Adjusting Entry

June 30 Dep. Expense, Store Equipment and Fix. 610 2,250.00 Accum. Deprec., Store Equip. and Fix. 132 2,250.00 Adjusting Entry

June 30 Depreciation Expense, Shop Equipment 611 1,380.00 Accum. Depreciation, Shop Equipment 136 1,380.00 Adjusting Entry

June 30 Depreciation Expense, Trucks 612 336.00 Accumulated Depreciation, Trucks 140 336.00 Adjusting Entry

June 30 Interest Receivable 113 18.89 Interest Earned 711 18.89 Adjusting Entry

June 30 Income Taxes Expense 811 2,640.00 Income Taxes Payable 213 2,640.00 Adjusting Entry

June 30 Credit Card Expense 607 461.82 Accts. Receivable, Credit Card Co. 107 461.82

Adjusting Entry

June 30 Bad Debt Expense 623 660.53 Allowance for Doubtful Accounts 106 660.53 Adjusting Entry

Answer Book

Cumberland Water Sports Adjusted Trial Balance June 30, 2012

Account Titles Debit Credit --------------------------------------------------------------- Cash 78,367.52 Petty Cash 100.00 Short-Term Investments 2,000.00 Accounts Receivable 30,534.07 Allowance for Doubtful Accounts 2,972.35 Accts. Receivable, Credit Card Co. 14,932.23 Notes Receivable 10,000.00 Interest Receivable 18.89 Merchandise Inventory 166,763.82 Prepaid Insurance 3,780.00 Prepaid Advertising 985.00 Store and Shop Supplies 2,142.00 Store Equipment and Fixtures 71,967.40 Accum. Deprec., Store Equip. and Fix. 7,850.00 Shop Equipment 35,310.00 Accum. Depreciation, Shop Equipment 14,070.00 Trucks 54,975.00 Accumulated Depreciation, Trucks 4,406.00 Accounts Payable 18,347.12 Sales Tax Payable 1,826.10 Salaries and Wages Payable 141.25 Income Taxes Payable 2,640.00 Unearned Storage Fees 5,190.00 Long-term Notes Payable 70,000.00 Common Stock 225,000.00 Retained Earnings 68,902.77 Dividends Declared 2,400.00 Watercraft and Accessory Sales 314,938.55 Sales Returns and Allowances 2,254.20 Service Fees Earned 9,132.25 Storage Fees Earned 10,450.00 Cost of Goods Sold 222,412.80 Transportation-In 1,304.00 Salaries and Wages Expense 18,827.16 Store and Shop Supplies Expense 1,644.92 Truck and Equipment Operating Exp. 1,263.65 Advertising Expense 2,533.90 Delivery Expense 1,022.10 Credit Card Expense 2,155.89 Tools Expense 340.00 Dep. Expense, Store Equipment and Fix. 2,330.00 Depreciation Expense, Shop Equipment 1,640.00 Depreciation Expense, Trucks 606.00 Rent Expense 15,600.00 Insurance Expense 2,495.00 Bad Debt Expense 660.53

Property Tax Expense 650.00 Electricity and Gas Expense 877.05 Telephone Expense 423.00 Bank Service Charges 116.10 License Expense 946.00 Professional Services Expense 908.00 Cash Short and Over 21.05 Discounts Lost 230.00 Miscellaneous Expense 35.30 Interest Earned 370.19 Dividends Earned 638.00 Gain on Sale of Assets 230.00 Gain on Short-Term Investments 5,485.00 Miscellaneous Revenue 100.00 Income Taxes Expense 5,890.00 Interest Expense 1,032.00 Loss on Sale/Disposal of Assets 195.00 ---------- ---------- Total 762,689.58 762,689.58 ========== ==========

Answer Book

Cumberland Water SportsIncome StatementFor the Quarter Ended June 30, 2012

Revenues: Watercraft and Accessory Sales $ 314,938.55 Less: Sales Returns and Allowances 2,254.20 ---------- Net Sales $ 312,684.35 ---------- Cost of Goods Sold: Cost of Goods Sold $ 222,412.80 Transportation-In 1,304.00 ---------- Total Cost of Good Sold 223,716.80 ---------- Gross Profit From Sales $ 88,967.55

Fees Earned: Service Fees Earned $ 9,132.25 Storage Fees Earned 10,450.00 ---------- Total Fees Earned 19,582.25 ---------- Total Gross Profit From Sales and Fees Earned $ 108,549.80 ---------- Operating Expenses: Selling Expenses: Salaries and Wages Expense $ 18,827.16 Store and Shop Supplies Expense 1,644.92 Truck and Equipment Operating Expense 1,263.65 Advertising Expense 2,533.90 Delivery Expense 1,022.10 Credit Card Expense 2,155.89 Tools Expense 340.00 Depreciation Expense, Store & Shop Equipment 2,330.00 Depreciation Expense, Shop Equipment 1,640.00 Depreciation Expense, Trucks 606.00 ---------- Total Selling Expense $ 32,363.62 ---------- General and Adminstrative Expenses: Rent Expense $ 15,600.00 Insurance Expense 2,495.00 Bad Debt Expense 660.53 Property Tax Expense 650.00 Electricity and Gas Expense 877.05 Telephone Expense 423.00 Bank Service Charges 116.10 License Expense 946.00 Professional Services Expense 908.00 Cash Short and Over 21.05

Discounts Lost 230.00 Miscellaneous Expense 35.30 ---------- Total General and Adminstrative Expenses $ 22,962.03 ---------- Total Operating Expenses $ 55,325.65 ---------- Income From Operations $ 53,224.15 ----------

Other Revenues and Expenses: Interest Earned $ 370.19 Dividends Earned 638.00 Gain on Sale of Assets 230.00 Gain on Short-Term Investments 5,485.00 Miscellaneous Revenue 100.00 ---------- Total Other Revenues: $ 6,823.19 ---------- Income Taxes Expense $ 5,890.00 Interest Expense 1,032.00 Loss on Sale/Disposal of Assets 195.00 Loss on Short-Term Investments 0.00 ---------- Total Other Expenses: $ 7,117.00 ---------- Net Other Expenses 293.81 ---------- Net Income $ 52,930.34 ==========

Answer Book



A1100 JET SKI STX-15F 6 8 $ 7,500.00A6000 WATER DANCER SHARK 1 3 6,336.00A750X JET SKI STX-12F 2 3 6,600.00A900R WATER DANCER ROCKET 1 0 7,425.00 YesA900T JET SKI 900 STX 3 5 5,600.00AA003 JET CRAFT III 1 0 5,445.00 YesAL600 STARLIGHT TRAILER D 5 5 891.00 YesAL800 STARLIGHT TRAILER T 2 2 1,188.00 YesAL900 STARLIGHT QUAD 2 5 1,980.00AS888 JET SKI 800 SX-R 3 1 4,760.00 YesAU150 JET SKI ULTRA 150 2 1 6,880.00 YesBM102 HICKSETER PIPE 2 2 215.00 YesBM105 FLAME ARRESTOR 38MM 4 2 30.50 YesBM106 CARB 38MM 2 3 110.00BM111 STAGE 2 KIT 4 5 240.00C0042 42 MM MULUK CARB 1 4 73.50C0110 RACING OIL (GAL.) 5 24 12.74C0300 STAINLESS IMP. 900 4 0 78.40 YesC0400 STAINLESS IMP. 1100 2 6 88.20C1000 QUICK TURN NOZZLE 2 2 38.22 YesC3300 JET SUIT MEN'S 9 12 74.25C3400 JET SUIT WOMEN'S 9 22 79.26KW001 JS BATTERY 3 31 29.40KW002 KAWASAKI OIL (CASE) 4 15 24.50KW003 NOZZLE EXTENSION 2 10 122.50KW500 900 PAD KIT 3 5 39.20KW800 ZXi FUEL TANK 2 4 75.95M0222 JET SKI COVER 750 2 3 60.00M0666 MEN'S VEST SML 6 24 22.00M0777 WOMEN'S VEST SML 6 20 20.00M7000 CUSTOM RIDE PLATE 2 10 52.00M9999 TWIN PIPE KIT 850 3 3 195.00 YesN6050 CUSTOM DECAL KIT 8 22 11.50R1000 CUMBERLAND T-SHIRTS 9 19 6.00R1500 CUMBERLAND CAPS 9 35 4.00



Answer Book

Cumberland Water Sports Post-Closing Trial Balance June 30, 2012

Account Titles Debit Credit --------------------------------------------------------------- Cash 78,367.52 Petty Cash 100.00 Short-Term Investments 2,000.00 Accounts Receivable 30,534.07 Allowance for Doubtful Accounts 2,972.35 Accts. Receivable, Credit Card Co. 14,932.23 Notes Receivable 10,000.00 Interest Receivable 18.89 Merchandise Inventory 166,763.82 Prepaid Insurance 3,780.00 Prepaid Advertising 985.00 Store and Shop Supplies 2,142.00 Store Equipment and Fixtures 71,967.40 Accum. Deprec., Store Equip. and Fix. 7,850.00 Shop Equipment 35,310.00 Accum. Depreciation, Shop Equipment 14,070.00 Trucks 54,975.00 Accumulated Depreciation, Trucks 4,406.00 Accounts Payable 18,347.12 Sales Tax Payable 1,826.10 Salaries and Wages Payable 141.25 Income Taxes Payable 2,640.00 Unearned Storage Fees 5,190.00 Long-term Notes Payable 70,000.00 Common Stock 225,000.00 Retained Earnings 119,433.11 ---------- ---------- Total 471,875.93 471,875.93 ========== ==========

Answer Book Cumberland Water Sports Balance Sheet June 30, 2012

ASSETS Current Assets: Cash $ 78,367.52 Petty Cash 100.00 Short-Term Investments 2,000.00 Accounts Receivable $ 30,534.07 Allowance for Doubtful Accounts 2,972.35 ---------- Net Realizable Value of Accounts Receivable 27,561.72 Accts. Rec., Credit Card Comp. 14,932.23 Notes Receivable 10,000.00 Interest Receivable 18.89 Merchandise Inventory 166,763.82 Prepaid Insurance 3,780.00 Prepaid Property Tax 0.00 Prepaid Advertising 985.00 Store and Shop Supplies 2,142.00 ----------

Total Current Assets $ 306,651.18

Plant and Equipment Store Equipment and Fixtures $ 71,967.40 Accumulated Depreciation 7,850.00 ---------- Book Value $ 64,117.40 ---------- Shop Equipment 35,310.00 Accumulated Depreciation 14,070.00 ---------- Book Value $ 21,240.00 ---------- Trucks 54,975.00 Accumulated Depreciation 4,406.00 ---------- Book Value $ 50,569.00 ---------- Total Plant and Equipment 135,926.40 ---------- Total Assets $ 442,577.58 ========== LIABILITIES

Current Liabilities Accounts Payable $ 18,347.12 Notes Payable 0.00 Sales Tax Payable 1,826.10 Dividends Payable 0.00 Salaries and Wages Payable 141.25 Estimated Property Tax Payable 0.00

Income Taxes Payable 2,640.00 Interest Payable 0.00 Unearned Storage Fees 5,190.00 ---------- Total Current Liabilities $ 28,144.47

Long-term Notes Payable 70,000.00 ---------- Total Liabilities $ 98,144.47

STOCKHOLDERS'EQUITY Common Stock $ 225,000.00 Retained Earnings 119,433.11 ---------- Total Stockholder's Equity 344,433.11 ---------- Total Liabilities and Owner's Equity $ 442,577.58 ==========

Answer Book

Cumberland Water Sports Schedule of Accounts Receivable Last Activity Date: June 30, 2012

Number Name Balance 10300 Andy Barnes $ 7,852.00 10550 Broken Arrow Jet Skiers .00 10890 Sean Dee 375.25 10930 Folsom Lake Skimmers .00 11100 Glen Grady .00 11220 Isabelle Hart .00 11340 Buster Jenkins .00 11560 Chris Nelson 465.70 11640 Paul Owens 241.50 11685 Hazel Peske .00 11780 Runner Bay Jetters 349.27 11850 Sierra Jet Set 21,250.35 11960 Don Temple .00 11990 Wave Busters .00 ---------- Total Accounts Receivable $ 30,534.07 ==========

Answer Book

Cumberland Water Sports All Accounts Receivable Customers Number: 10300 Name: Andy Barnes Address: 455 Sierra Blvd. Rocklin, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 June 14 G4016 7,852.00 7,852.00 June 15 G4016 10300 5,080.00 12,932.00 June 23 BADCK 5,080.00 7,852.00 ______________________________________________________________________

Number: 10550 Name: Broken Arrow Jet Skiers Address: 4455 Gold Pan St. Colfax, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 ______________________________________________________________________

Number: 10890 Name: Sean Dee Address: 100 Sierra Views Blvd. Roseville, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 30 G4000 375.25 375.25 ______________________________________________________________________

Number: 10930 Name: Folsom Lake Skimmers Address: 620 Riverside Drive Folsom, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 ______________________________________________________________________

Number: 11100 Name: Glen Grady Address: 10 Gold Rush Plaza Orangevale, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 3 G3906 17,650.00 17,650.00 June 16 G3906 6,550.00 11,100.00 June 25 G3906 11,100.00 0.00 ______________________________________________________________________

Number: 11220 Name: Isabelle Hart Address: 356 Hill Rd. Auburn, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00

______________________________________________________________________

Number: 11340 Name: Buster Jenkins Address: PO Box 267 Apple Hill, CA Date Explanation Debit Credit Balance ______________________________________________________________________ March 5 G3697 1,005.50 1,005.50 June 4 WROFF 1,005.50 0.00 ______________________________________________________________________

Number: 11560 Name: Chris Nelson Address: 124 Cedar Dr. Granite Bay, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 29 G3995 12,100.00 12,100.00 June 26 G4023 529.20 12,629.20 June 28 G3995 12,100.00 529.20 June 30 G4023 CM602 63.50 465.70 ______________________________________________________________________

Number: 11640 Name: Paul Owens Address: 1800 Ridge Road Loomis, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 12 G3924 241.50 241.50 ______________________________________________________________________

Number: 11685 Name: Hazel Peske Address: 900 Ranch Road Auburn, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 June 10 RECOV 1,330.00 1,330.00 June 10 RECOV 1,330.00 0.00 ______________________________________________________________________

Number: 11780 Name: Runner Bay Jetters Address: 10 Royal Bar Blvd. Penryn, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 21 G3971 502.00 502.00 June 6 G4014 349.27 851.27 June 16 G4014 CM601 84.67 766.60 June 20 G3971 417.33 349.27 ______________________________________________________________________

Number: 11850 Name: Sierra Jet Set Address: PO Box 341A Truckee, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00

June 18 G4018 21,250.35 21,250.35 ______________________________________________________________________

Number: 11960 Name: Don Temple Address: 1369 Laird Road Lommis, CA Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 ______________________________________________________________________

Number: 11990 Name: Wave Busters Address: 245 Redwing Ct. Penryn, CA Date Explanation Debit Credit Balance ______________________________________________________________________ May 17 G3954 25,440.00 25,440.00 June 16 G3954 25,440.00 0.00 ______________________________________________________________________

Answer Book

Cumberland Water Sports Schedule of Accounts Payable Last Activity Date: June 28, 2012

Number Name Balance 20110 Armor Supply $ 979.92 20950 Baker Marine Supply 2,864.00 22400 Clear Water, Inc. 529.20 24100 Jacoby, Incorporated 287.00 24500 Kawasaki USA 2,107.00 26950 Len's Sporting Goods 1,680.00 27400 Riptide Marine, Inc. .00 28600 Starlight Sports 9,900.00 29650 Water Dancer Jetcraft .00 ---------- Total Accounts Payable $ 18,347.12 ==========

Answer Book

Vendor Data

Number: 20110 Name: Armor Supply Address: 100 Watt Avenue Sacramento, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ May 28 A4435 115.50 115.50 June 3 A4761 383.42 498.92 June 22 A5049 635.40 1,134.32 June 23 A5049 38.90 1,095.42 June 27 31235 A4435 115.50 979.92 _______________________________________________________________________

Number: 20950 Name: Baker Marine Supply Address: 240 Shasta Lake Lane Redding, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 1 B9524 2,864.00 2,864.00 _______________________________________________________________________

Number: 22400 Name: Clear Water, Inc. Address: 900 Stadium Drive Auburn, CA 2/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 Balance 0.00 June 23 C5217 529.20 529.20 _______________________________________________________________________

Number: 24100 Name: Jacoby, Incorporated Address: 3700 Gold Rush Ave. Gold Hill, Ca Net 10

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 Balance 0.00 June 28 J1400 287.00 287.00 _______________________________________________________________________

Number: 24500 Name: Kawasaki USA Address: 4772 Oak Drive Hover City, CA 2/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 Balance 0.00 June 6 K4461 46,280.00 46,280.00 June 14 K4461 DM601 6,880.00 39,400.00 June 16 31225 K4461 39,400.00 0.00 June 24 K5050 2,107.00 2,107.00 _______________________________________________________________________

Number: 26950 Name: Len's Sporting Goods Address: 3588 Vista View Drive Eureka, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 M1201 1,045.00 1,045.00 June 21 M3093 635.00 1,680.00 _______________________________________________________________________

Number: 27400 Name: Riptide Marine, Inc. Address: 5234 Almond Street Corning, Ca Net 30


Number: 28600 Name: Starlight Sports Address: 2233 Starlight Rd. Red Bluff, Ca 1/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 Balance 0.00 June 5 S2717 3,564.00 3,564.00 June 15 31224 S2717 3,564.00 0.00 June 28 S3488 9,900.00 9,900.00 _______________________________________________________________________

Number: 29650 Name: Water Dancer Jetcraft Address: 1560 Olive Hurst Ave. Oroville, CA 1/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ May 13 W6438 19,305.00 19,305.00 June 11 31221 W6438 19,305.00 0.00 _______________________________________________________________________

Answer Book


Account: 101 Cash

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 26,106.37June 3 G4010 105.30 26,211.67June 2 67345 15.90 26,227.57June 2 ERROR ERROR 15.90 26,211.67June 4 G4011 10,125.00 36,336.67June 4 31217 PCASH 92.25 36,244.42June 4 G4012 1,090.00 37,334.42June 6 CASHD 525.00 37,859.42June 6 G4013 623.59 38,483.01June 7 G4015 15,120.00 53,603.01June 8 CMSTK 25,000.00 78,603.01June 9 31218 90886 350.00 78,253.01June 9 31219 DIVPD 2,400.00 75,853.01June 10 ASALE 630.00 76,483.01June 10 31220 R3449 124.60 76,358.41June 10 STINV 7,460.00 83,818.41June 10 11685 RECOV 1,330.00 85,148.41June 11 31221 29650 W6438 19,500.00 65,648.41June 11 CC202 7,880.28 73,528.69June 13 31222 EXTRA 3,260.00 70,268.69June 14 10300 G4016 5,000.00 75,268.69June 14 31223 WAGES 446.35 74,822.34June 15 10300 10300 G4016 5,000.00 69,822.34June 15 31224 28600 S2717 3,564.00 66,258.34June 16 31225 24500 K4461 39,400.00 26,858.34June 16 11100 G3906 6,550.00 33,408.34June 16 G4017 1,814.40 35,222.74June 16 11990 G3954 25,440.00 60,662.74June 17 31226 NTPAY 12,330.00 48,332.74June 19 G4019 1,200.00 49,532.74June 20 11780 G3971 417.33 49,950.07June 21 31227 W3571 16,125.00 33,825.07June 21 31228 DMV06 530.00 33,295.07June 21 31229 79002 5,054.40 28,240.67June 22 G4021 13,922.00 42,162.67June 23 10300 BADCK 5,080.00 47,242.67June 23 ASALE 340.00 47,582.67June 24 31230 67676 363.70 47,218.97June 24 31231 W3200 1,375.00 45,843.97June 24 31232 P1764 505.00 45,338.97June 24 31233 66633 1,800.00 43,538.97June 25 G4022 9,099.00 52,637.97June 25 11100 G3906 11,100.00 63,737.97June 27 31234 TAXES 8,847.79 54,890.18June 27 31235 20110 A4435 115.50 54,774.68June 28 G4024 700.00 55,474.68

June 28 G4026 386.10 55,860.78June 28 11560 G3995 12,100.00 67,960.78June 29 31236 WAGES 409.06 67,551.72June 30 31237 PCASH 98.05 67,453.67June 30 INVST 11,225.00 78,678.67June 30 BKS06 68.30 78,746.97June 30 BKS06 BKS06 379.45 78,367.52

Answer Book


Account: 105 Accounts Receivable

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 57,314.25June 4 11340 WROFF 1,005.50 56,308.75June 6 11780 G4014 349.27 56,658.02June 10 11685 RECOV 1,330.00 57,988.02June 10 11685 RECOV 1,330.00 56,658.02June 14 10300 G4016 7,852.00 64,510.02June 15 10300 10300 G4016 5,080.00 69,590.02June 16 11100 G3906 6,550.00 63,040.02June 16 11990 G3954 25,440.00 37,600.02June 16 11780 G4014 CM601 84.67 37,515.35June 18 11850 G4018 21,250.35 58,765.70June 20 11780 G3971 417.33 58,348.37June 23 10300 BADCK 5,080.00 53,268.37June 25 11100 G3906 11,100.00 42,168.37June 26 11560 G4023 529.20 42,697.57June 28 11560 G3995 12,100.00 30,597.57June 30 11560 G4023 CM602 63.50 30,534.07

Answer Book


Account: 115 Merchandise Inventory

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 191,991.42June 4 G4011 7,500.00 184,491.42June 5 28600 S2717 3,564.00 188,055.42June 6 G4013 210.70 187,844.72June 6 24500 K4461 46,180.00 234,024.72June 6 11780 G4014 161.70 233,863.02June 7 G4015 11,200.00 222,663.02June 14 10300 G4016 9,520.00 213,143.02June 14 24500 K4461 DM601 6,880.00 206,263.02June 16 G4017 1,188.00 205,075.02June 16 11780 G4014 CM601 39.20 205,114.22June 18 11850 G4018 15,741.00 189,373.22June 20 G4020 215.00 189,158.22June 21 26950 M3093 635.00 189,793.22June 22 G4021 17,720.00 172,073.22June 23 22400 C5217 529.20 172,602.42June 24 24500 K5050 2,107.00 174,709.42June 25 G4022 6,740.00 167,969.42June 26 11560 G4023 245.00 167,724.42June 28 28600 S3488 9,900.00 177,624.42June 28 G4025 10,890.00 166,734.42June 30 11560 G4023 CM602 29.40 166,763.82

Answer Book


Account: 201 Accounts Payable

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 23,329.50June 3 20110 A4761 383.42 23,712.92June 5 28600 S2717 3,564.00 27,276.92June 6 24500 K4461 46,280.00 73,556.92June 11 31221 29650 W6438 19,305.00 54,251.92June 14 24500 K4461 DM601 6,880.00 47,371.92June 15 31224 28600 S2717 3,564.00 43,807.92June 16 31225 24500 K4461 39,400.00 4,407.92June 21 26950 M3093 635.00 5,042.92June 22 20110 A5049 635.40 5,678.32June 23 22400 C5217 529.20 6,207.52June 23 20110 A5049 38.90 6,168.62June 24 24500 K5050 2,107.00 8,275.62June 27 31235 20110 A4435 115.50 8,160.12June 28 28600 S3488 9,900.00 18,060.12June 28 24100 J1400 287.00 18,347.12

Answer Book


Account: 305 Retained Earnings

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 68,902.77June 30 Closing Entry 52,930.34 121,833.11June 30 Closing Entry 2,400.00 119,433.11

Answer Book


Account: 401 Watercraft and Accessory Sales

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 212,650.00June 4 G4011 9,375.00 222,025.00June 6 G4013 421.40 222,446.40June 6 11780 G4014 323.40 222,769.80June 7 G4015 14,000.00 236,769.80June 14 10300 G4016 11,900.00 248,669.80June 16 G4017 1,485.00 250,154.80June 18 11850 G4018 19,676.25 269,831.05June 20 G4020 430.00 270,261.05June 22 G4021 22,150.00 292,411.05June 25 G4022 8,425.00 300,836.05June 26 11560 G4023 490.00 301,326.05June 28 G4025 13,612.50 314,938.55June 30 Closing Entry 314,938.55 0.00

Answer Book


Account: 901 Income Summary

Date Explanation Debit Credit BalanceJune 2 Beginning Balance 0.00June 30 Closing Entry 341,343.99 341,343.99June 30 Closing Entry 288,413.65 52,930.34June 30 Closing Entry 52,930.34 0.00

Answer Book

Cumberland Water SportsInventory Item: JET SKI 900 STX Stock Number: A900TReorder Point: 3

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 4June 06 3 24500 K4461 June 07 2 CASH G4015 ____________________________________________________________


Answer Book

Cumberland Water SportsInventory Item: JET SKI STX-15F Stock Number: A1100Reorder Point: 6

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 6June 04 1 CASH G4011 June 06 3 24500 K4461 ____________________________________________________________


Answer Book

Cumberland Water SportsInventory Item: STARLIGHT TRAILER T Stock Number: AL800Reorder Point: 2

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 0June 05 3 28600 S2717 June 16 1 CASH G4017 ____________________________________________________________


Answer Book

Cumberland Water SportsInventory Item: JET SKI ULTRA 150 Stock Number: AU150Reorder Point: 2

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 3June 06 1 24500 K4461 June 14 1 24500 K4461 DM601June 22 2 CASH G4021 ____________________________________________________________


Answer Book

Cumberland Water SportsInventory Item: JS BATTERY Stock Number: KW001Reorder Point: 3

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 3June 24 30 24500 K5050 June 26 3 11560 G4023 June 30 1 11560 G4023 CM602____________________________________________________________


Answer Book

Cumberland Water SportsInventory Item: NOZZLE EXTENSION Stock Number: KW003Reorder Point: 2

Units Dr/CrDate In Out Check Vendor Customer Invoice MemoBalance 2June 06 1 CASH G4013 June 06 1 11780 G4014 June 24 10 24500 K5050 ____________________________________________________________

Beginning Units: 2 Unit Balance: 10 Units In: 10 Unit Cost: 122.50 Units Out: 2 FIFO Value: 1,225.00____________________________________________________________




Final Project Evaluation

Questions and Answers

Answer Book

FINAL PROJECT EVALUATIONCumberland Water Sports Score: 35 Percent Score: 100% Question YourNumber Answer---------------------------------------------------------------------- 1. What is the net realizable value of the Accounts $27,561.72 Receivable?

2. On June 30 Balance Sheet, what is the 'net worth' $344,433.11 or 'net assets' of the business?

3. What is the book value of the Shop Equipment? $21,240.00

4. To the nearest tenth, what is the current ratio B for Cumberland Water Sports? A) 10.6 B) 10.9 C) 4.3 D) 3.1 E) None of the above

5. To the nearest tenth, what is the acid-test C (quick) ratio of the business? A) 4.3 B) 5.0 C) 4.7 D) 3.8 E) None of the above

6. Does Cumberland Water Sports have enough cash on A hand to meet its current debt? A) Yes B) No

7. Identify by customer number, the customer who has 11640 the smallest outstanding balance on June 30.

8. Cumberland Water Sports extends net 30 terms to A all customers. Does any customer have a balance that is past due? A) Yes B) No

9. On or before what date should the balance of B Runner Bay Jetters' invoice G4014 be received? A) June 26 B) July 6 C) July 18 D) July 30

E) None of the above

10. What was the balance owed to Armor Supply before $1,134.32 the return of supplies on June 23?

11. In order to be paid on time, which Armor Supply A4761 invoice number must be paid no later than July 3?

12. If the Kawasaki USA account is not paid in full C within the discount period, what will be the total amount of the discount lost? A) $42.14 B) $41.31 C) $43.00 D) $21.07 E) None of the above

13. What was the sales invoice number for the single G4017 unit of inventory item AL800 that was sold on June 16?

14. What is the FIFO inventory value of the AL800 D trailers in stock? A) $1,188.00 B) $2,736.00 C) $3,564.00 D) $2,376.00 E) None of the above

15. How many units of KW001 were sold during June? 3

16. How many units of KW001 were returned during 1 June?

17. How many units of Cumberland T-Shirts are in 19 stock?

18. How many units of inventory item A1100 were 3 purchased during June?

19. How many inventory items are now 'out-of-stock?' C A) 0 B) 2 C) 3 D) 5 E) None of the above

20. If there had been no transportation-in costs, $90,271.55 what would have been the Gross Profit From Sales?

21. The Total Cost of Goods Sold is what percent of C Net Sales? A) 71.11% B) 71.04% C) 71.55%

D) 71.17% E) None of the above

22. The Gross Profit from Sales is what percent of D Net Sales? A) 25.09% B) 22.60% C) 27.54% D) 28.45% E) None of the above

23. The Income From Operations is what percent of C Total Net Revenues (Net Sales plus Total Fees Earned)? A) 6.23% B) 16.05% C) 16.02% D) 16.62% E) None of the above.

24. The Sales Returns and Allowances is what percent C of Watercraft and Accessory Sales? A) Less than .7000% B) .7000% C) .7158% D) .7230% E) .7136%

25. In the previous quarter, the Total Selling B Expenses were 8.75% of Total Net Sales and Fees Earned. Has there been an improvement over the previous quarter? A) Yes B) No

26. What was the percentage of decrease in the D Merchandise Inventory account balance for the month of June? A) 5.17% B) 6.99% C) 10.66% D) 13.14% E) None of the above.

27. If the total of Service Fees Earned and Storage $57,169.71 Fees Earned could have increased 25% by increasing Salaries and Wages Expense $450.00 and increasing Advertising Expense $500.00, what would be the total Income From Operations?

28. A 1% increase in Nets Sales and Fees Earned and a $3,876.00 1% decrease in Total Operating Expenses would result in what dollar amount of increase in Income From Operations, to the nearest dollar?

29. If $800.00 of Delivery Expense charges were found $52,930.34 to have been charged to the Transporation-In

account, correcting this error would result in what amount of Net Income?

30. If an audit determined that the ending inventory B was overstated $1,500.00, the corrected amount of Net Income would be A) understated. B) overstated. C) unchanged.

31. Assume that at the end of the quarter the B Merchandise Inventory account was credited for $1,000.00 due to inventory 'shrinkage.' Which account would be debited? A) Cash B) Cost of Goods Sold C) Income Summary D) Merchandise Inventory E) None of the above

32. When the ending Merchandise Inventory account B balance is understated, the Income From Operations is A) overstated. B) understated. C) unchanged. E) None of the above.

33. After the general ledger is closed, what is the C balance of the Dividends Declared account? A) $2,400.00 B) $400.00 C) $00.00 D) $37,998.98 E) None of the above

34. What is the last account listed on the E Post-Closing Trial Balance? A) Income Summary B) Common Stock C) Dividends Declared D) Merchandise Inventory E) None of the above

35. After closing, what is the balance of the Income D Summary account? A) $288,323.65 B) $341,513.99 C) $53,190.34 D) $00.00 E) None of the above

Cumberland Water Sports Answer Book - PKL Software Busters June 16 Sales Returns and Allowances 402...

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Transcript of Cumberland Water Sports Answer Book - PKL Software Busters June 16 Sales Returns and Allowances 402...