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*Enter your name, access code, and CRN below and then click the Activate button.This file is NOT to be shared with any person as it is specifically linked with your name.
Date: 4/7/2023
Name: Renee
Access Code: 2012300276
CRN: 30108
Davenport University Activation was successful.
ACCT202 Practice Set *Click the following buttons to go to the corresponding worksheets:
Ver. 5.1, 2011-12Summer 2012
Instructions
Academic Integrity
Products
Chart of Accounts - GL
Chart of Accounts - AR
Chart of Accounts - AP
Purchases Journal
Cash Receipts Journal
Cash Payments Journal
General Journal Pg 1
General Journal Pg 2
General Journal Pg 3
General Ledger
A/R Sub-Ledger
A/P Sub-Ledger
Worksheet
Inventory Control Card
Transactions
ACTIVATE
Sales Journal
Login Student Access Code Course LoginDate Name Number CRN Date4/7/2023 Renee 2012300276 30108 6/14/2012
Company Background & Scenario
Project Overview & InstructionsA. Overview
B. General Instructions
c. These project instructions will not address every detail of every task. If you have questions, ask your instructor.
e. If rounding is required, round to the nearest cent. For example, $96.835 would be entered as $96.84.
g. Refer to the project rubric to determine how components of the project will be assessed.
C. Submission Requirements
D. Credit Terms & Inventory Accounting
E. Financial Accounting Steps:
b. At the end of the month, post each entry in the general journal to the general ledger.
d. When posting is completed, bring the balance in each general ledger account up to date.e. When posting is completed, bring the balance in each subsidiary ledger account up to date.
i. Update general ledger account balances after posting adjusting journal entries.
The AC Speed Company is a well-established, publicly-held corporation, operating as a wholesaler in the auto parts industry. Specifically, AC Speed purchases auto parts from manufacturers and sells them to large business customers. Most purchases and sales are on account, with trade credit terms (specified below).
You’re a Davenport University student pursuing a bachelor’s degree in business and employed at the AC Speed Company this semester as an intern. You’ve worked in various departments and on several projects so far, learning a lot about the company’s business operations. Management seems impressed with your enthusiasm and the quality of your work.
The company’s accountant has just been called away for a family emergency and will likely be absent for a month or so. The General Manager asks you to take over the accountant’s regular duties on an interim basis. You’re nervous about doing so, but are confident that what you’ve learned in accounting class, plus your personal problem-solving skills, will make this a successful experience. What a great learning opportunity, not to mention an enhancement to your resume!
a. Part 1 is a financial accounting activity that requires you to record various business transactions during the month, close the accounting records at the end of the month, and prepare the financial statements. These tasks relate to the steps in the accounting cycle that you learned in your first accounting course.`
b. Part 2 is an activity that requires you to analyze the company’s year-end financial statements to assist management in assessing the company’s position and making decisions about its future direction.
c. This is an individual, not a team, project. While you may discuss this project with others, you must prepare and submit your own work. Refer to the Academic Integrity Statement in the project workbook.
d. Before starting work, review the entire project: all instructions, business transactions descriptions, workbook sections, check figures, due dates, and submission requirements.
a. The parts of this project, including specific business transactions and steps in the accounting cycle, must be completed in sequence. This is particularly important with business transactions relating to purchases and sales of inventory.
b. As you work on parts of the project, you will note references to pages or sections of your accounting textbooks that will provide examples or explanations related to that task. You are also encouraged to use your textbook’s table of contents (front) or index (back) to locate helpful references.
d. Most of your work for this project will be accomplished in Excel. A basic skill level in this application is expected. That is, you should be able to such things as move around in a workbook, enter data in cells, use the sum function, compose basic formulas, and save your work.
f. Use the check figures provided to check your work as you progress through the project. Investigate any discrepancies and correct them as you go along.
h. Appearance counts! Pay attention to the format, to spelling, and to other details of appearance. This reflects on management’s perception of you as a professional.
a. Final submission of all parts of this project must be in electronic (not paper) form. That is, you will submit your completed work via an assignment link in a Blackboard course site or via an email attachment. Follow your instructor’s directions.
b. Save backup copies of your work. If you have multiple versions of the project, clearly label them for your own reference and to ensure that you submit the appropriate version to your instructor.
c. You must read the academic integrity statement in the project workbook and enter your student ID number on the form to signify your agreement with and adherence to that statement. Final project submissions will not be accepted without this.
d. Due dates for the parts of this project will be provided by your instructor in the course syllabus, in the Blackboard course site, or in a designated handout. Be sure to enter these on your personal calendar and plan your work on this project accordingly.
a. When AC Speed purchases merchandise from a supplier or vendor on account, they receive credit terms of 3/10, net 30.
b. When AC Speed sells merchandise to a customer on account, they offer that customer credit terms of 3/10, net 45.
c. AC Speed accounts for the specific types of merchandise in their inventory with a set of subsidiary ledgers (inventory control cards). The balances in these subsidiary ledger records, in total, must equal the balance in the Merchandise Inventory account in the general ledger.
d. AC Speed uses a perpetual inventory accounting system and a first-in, first-out (FIFO) inventory costing method.
e. Subsidiary ledger records are kept for each customer and for each vendor. The balances in the customer subsidiary ledger records, in total, must equal the Accounts Receivable account balance in the general ledger. The balances in the vendor subsidiary ledger records, in total, must equal the Accounts Payable account balance in the general ledger.
a. Record each business transaction, in sequence by date, in the appropriate special journal or the general journal. Also, immediately record any transaction involving inventory, a customer, or a vendor in the appropriate subsidiary ledger record.
c. At the end of the month, total each column in each special journal and post that total to the general ledger. EXCEPT for entries in the “Other” columns, which must be posted individually to the general ledger.
f. At this point in the closing process, the balances of all subsidiary ledger accounts would be totaled and that total compared to the balance of the corresponding control account in the general ledger. That is, the total of inventory control cards would be compared to the Merchandise Inventory balance; the customer subsidiary ledger total to the Accounts Receivable balance; and the vendor subsidiary ledger total to the Accounts Payable balance. Any discrepancies would be investigated and corrected. Given the limited scope of this project scenario, reconciliation between subsidiary ledgers and control accounts is not possible.
g. List all general ledger account balances in the unadjusted trial balance columns of the worksheet. Use the sum function in Excel to total the debit and credit columns. These totals should be equal.
h. Prepare the end-of-month adjusting entries. Record these entries in the general journal and post them to the general ledger. Also record the adjusting entries in the designated columns in the worksheet and total the debit and credit columns. These totals should be equal.
j. Complete the unadjusted trial balance columns on the worksheet. Use Excel formulas to carry balances from the unadjusted trial balance columns, adjusting as necessary by entries in the adjustments columns. Check your results against the balances recorded in the general ledger.
k. Sort the dollars recorded in the adjusted trial balance columns into either the income statement or the balance sheet columns. Total these columns. The entry of net income should cause the debit and credit columns to equal one another.
l. Use the income statement information on the worksheet to prepare a multi-step income statement in good form. Look at examples of this income statement format in your textbook, such as the one on page 220.
m. Prepare a statement of retained earnings in good form. Look at examples of this statement in your textbook. Remember that net income from your just-completed income statement is a necessary component of this statement.
n. Use the balance sheet information on the worksheet to prepare a classified balance sheet, similar in format to the example on page 711. Remember that the ending retained earnings balance from the just-completed statement is a necessary component of the equity section of the balance sheet.
o. Prepare the end-of-month closing entries. Record these entries in the general journal and post them to the general ledger. Update balances in the general ledger accounts.
p. List the general ledger accounts that have balances other than zero on the post-closing trial balance. The totals of the debit column and the credit column should be equal.
F. Part 2 of this project requires you to analyze the company’s year-end financial statements to assist the management of AC Speed in assessing the company’s financial position and making decisions about its future direction.
a. Before beginning this part of the project, you will find it helpful to review Chapter 18 on financial statement analysis. Page 809, a summary of ratios, will be particularly useful.
b. Tabs in the project workbook provide trial balance data for the current and two preceding years for AC Speed and a location to calculation a selection of ratios. Use the trial balance data and the formulas in Chapter 18 to compute the ratios listed for each of the three years. YOU MUST STRUCTURE YOUR RATIO CALCULATIONS AS FORMULAS AND LINKS TO APPROPRIATE CELLS ON THE TRIAL BALANCE TAB. You will lose points by simply typing the final ratio numbers or percentages.
c. After you calculate the ratios, consider whether there is a trend over the three-year period. Also compare the ratios you calculated for AC Speed with those listed as industry averages. Review the information in Chapter 18 to help you determine what the ratios are telling you about various aspects of AC Speed’s business operations.
d. Use Word to prepare a memo (minimum 500 words) to AC Speed’s general manager, addressing the three questions listed at the bottom of the ratios tab. This should be formatted as a business memo, not an APA paper. Be sure to include a brief introduction and conclusion in the memo. Each question should be addressed in one or two paragraphs in the body of the memo. Remember that the general manager will expect details/facts/ratios to support statements you may make about the status of the business. Your writing should be concise, clear, and readable, with a fairly formal tone (since it’s addressed to AC Speed’s general manager, who is likely to share it with other members of management). Your instructor will provide the due date and submission requirements for this part of the project.
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Academic Integrity Statement
Project Academic Integrity Statement
Student Name
Student ID Number
Date
I understand that this is an individual, not a team, project; that I am expected to do my own work on the project. I may discuss project requirements in general terms with others, but I am not permitted to collaborate with anyone or copy anyone's work, manually or electronically, in full or in part.
I also understand that I am not permitted to supply anyone with the results of my work or with information or assistance that compromises another student's completion of the project through his or her own efforts.
If I have any questions about these requirements, I will promptly ask my instrucor for clarification.
I understand that any violation of this project academic integrity statement will lead, at minimum, to a failing grade for the project.
By entering my name and student ID number below, I am attesting that I have read, understood, and will personally adhere to this project academic integrity statement.
1-Jul
1-Jul Signed a two year 14%, $216,000 note payable with Fifth Third Bank.
1-Jul Sold 1500 speakers on account to GM for $112 each, Invoice #2301
1-Jul Purchased 2800 rearview mirrors on credit from Gentex for $45 each.
2-Jul
2-Jul Sold 250 rearview mirrors on account to Honda for $105 each, Invoice #2302
3-Jul Purchased 3450 speakers on credit from Bose for $72 each.
3-Jul Sold 1300 GPS units on account to Toyota for $65 each, Invoice #2303
4-Jul
5-Jul
6-Jul
7-Jul
8-Jul
8-Jul
11-Jul Paid in full for the July 1 purchase from Gentex. Check # 7003
11-Jul Received payment from GM on remaining balance for July 1st sale
12-Jul
12-Jul
12-Jul Received payment in full from Honda for July 2nd sale.
13-Jul Paid in full for the July 3rd purchase from Bose, Check # 7004
13-Jul Received payment in full from Toyota for July 3nd sale
15-Jul
17-Jul
19-Jul
19-Jul
20-Jul Received $122,500 from Ford for June 5th sales.
JULY JOURNAL TRANSACTIONS
Issued 8,200 shares of common stock for $11 per share (Refer to Chart of Accounts GL for description of common stock).
Rented idle warehouse space to a new tenant and received $15,000 for three months rent. (July - October)
60 defective speakers were returned from GM. A credit was issued to the customer.
The 60 defective speakers were returned to Bose.
Paid $650 for equipment repair. Check # 7000
Reimbursed employees for entertainment expenses totaling $300. Check # 7001
Paid June utility bill of $1850. Check # 7002
Purchased office supplies from Staples on credit for $700.
The Board of Directors declared a cash dividend of $0.50 per share for shareholders of record on July 14th, payable on July 20th.
Purchased 3100 GPS units from Garmin for $28 each on credit.
Check # 7005 was issued for payroll: $23,750 for salaries and $1,925 for wages
Bought new Office Furniture for $15,600. Furniture use begins in August. Check # 7006
1550 GPS units purchased on July 12th from Garmin were found to be the wrong model. All 1550 units were returned.
Paid $1400 bill for phone survey performed by marketing consultant, Check # 7007
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20-Jul
20-Jul Paid the dividend that was declared on July 12, Check # 7009
22-Jul Paid the remaining balance on the purchase from Garmin on July 12th. Check #7010
23-Jul General Motors declared bankruptcy. $10,000 receivable from General Motors was written off .
25-Jul
26-Jul
26-Jul Sold 425 speakers to Honda for $114 each, Invoice # 2304
27-Jul Paid Gentex $40,000 for June 27 purchase, Check # 7012
27-Jul
28-Jul Issued bonds payable at face value for $ 485,000
29-Jul
29-Jul
30-Jul
31-Jul
July Month-end Adjustments:
( A )
( B )
( C )AC Speed has earned one month of the rent prepaid by their tenant at the beginning of July. (pp. 104-105)
( D )The Company took a physical inventory count on July 31 and found the following inventory on hand:
( E )The Company took a physical count of Office Supplies on July 31 and found the following to be on hand:
( F ) Depreciation on the company's fixed assets for the month of July is as follows:
Paid $21,000 mortgage payment to Fifth Third Bank ($6,000 principal and $15,000 interest), Check # 7008.
Received $119,050 payment from Toyota for sale on June 11th.
Purchased 800 shares of Treasury Stock for $15 per share, Check # 7011 (cost method)
Sold 1850 Rearview mirrors to Ford for $89 each, Invoice # 2305
Paid Bose $158,240 for balance due in June, Check # 7013
Check #7014 was issued for payroll: $ 20,500 for salaries and $ 3,560 for wages
Received and paid legal service invoice of $9,025, Check # 7015
Paid the first month's principal of $25,000 plus interest for notes issued at the beginning of the month. Check # 7016
*All purchases on account terms of 3/10, net 30
**All credit sales have terms of 3/10, net 45
AC Speed estimates bad debt expense on a monthly basis rather than waiting until year-end. The company uses the allowance method. Based on recent industry estimates, AC Speed estimates that the estimate of bad debt expense should be 1.5% of total sales.
The balance in the Prepaid Insurance account at the beginning of July represents 6 months of coverage. Record the amount of insurance expense for July. (p.102)
Merchandise Inventory - $310,000 (p.211)
Office Supplies - $2,415 (p.101)
1. The furniture and equipment for the warehouse purchased a few years ago cost $10,000. These assets have a 10-year life, with $1500 salvage value, and are depreciated using the straight-line method. (p.444)
2. The furniture and equipment for the office was purchased last year for $8,500. These assets have a 5 year life, an expected salvage value of $1,500, and are depreciated using double declining method.
3.The new office furniture purchased in July has a 5 year life with a $500 salvage value, and is depreciated using the straight line method
Product Name DescriptionGPS In vehicle GPS unitSpeakers High sound quality speakersRearview Mirror Rearview mirror with built in reverse camera display
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AC Speed CorporationChart of Accounts - General Ledger
BALANCE SHEET ACCOUNTS Assets Current Assets
Acct # Account Name100 Cash102 Accounts Receivable103 Allowance for Doubtful Accounts104 Merchandise Inventory105 Office Supplies106 Prepaid Insurance
Property, Plant and Equipment140 Land145 Building146 Accumulated Depreciation - Building151 Equipment & Furniture - Warehouse152 Accumulated Depreciation - Equip & Furn. - Warehouse153 Equipment & Furniture - Office154 Accumulated Depreciation - Equip & Furn. - Office
Liabilities Current Liabilities
201 Accounts Payable202 Wages Payable203 Interest Payable204 Dividends Payable205 Unearned Rent
Long-Term Liabilities250 Notes Payable251 Bonds Payable252 Mortgage (Warehouse) Payable
Capital (Equity)300 Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding301 Paid In Capital - Excess of Par330 Retained Earnings340 Treasury Stock
INCOME STATEMENT ACCOUNTS Revenue
500 Sales510 Sales Discounts511 Sales Returns & Allowances
Cost of Goods Sold600 Cost of Goods Sold
Operating Expenses700 Wage Expense (hourly workers)701 Salaries Expense (Exempt Staff)702 Marketing Expense703 Travel and Entertainment Expense704 Bad Debt Expense705 Property Tax Expense706 Maintenance & Repair Expense707 Legal Expenses708 Insurance Expense709 Utilities Expense710 Office Supplies Expense711 Telecommunications Expense712 Depreciation Expense - Equip & Furniture - Warehouse713 Depreciation Expense - Equip & Furniture - Office
Other Income800 Rent Income
Other Expenses900 Interest Expense
Other1000 Income Summary
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AC Speed CorporationChart of Accounts - Accounts Receivable Ledger
Account NameGeneral MotorsFord Motor Co.ToyotaHonda
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AC Speed CorporationChart of Accounts - Accounts Payable Ledger
Account Name
GarminMagellanBoseGentex
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AC Speed CorporationSales Journal
Date A/R Account DebitedInvoice
No.Post Ref
A/R - DR Sales - CR
AC Speed CorporationSales Journal
CGS - DR Inv - CR
AC Speed CorporationPurchases Journal
Date Creditors Account Credited Other Account - Debited A/P - CR Other - DR Post Ref
Inventory - DR
Office Supplies -
DR
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Shoe: GPSBeginning Inventory (BI) Purchases Sales Ending Inventory (EI)
Date BI Units BI $/Unit BI $ Purch $ Sale $ (CGS) EI Units EI $/Unit EI $ 1-Jul 2500 $ 40.00 $ 100,000.00 $ - $ - $ 100,000.00
Shoe: SpeakersBeginning Inventory (BI) Purchases Sales Ending Inventory (EI)
Date BI Units BI $/Unit BI $ Purch $ Sale $ (CGS) EI Units EI $/Unit EI $ 1-Jul 2000 $ 71.00 $ 142,000.00 $ - $ - $ 142,000.00
Shoe: Rearview MirrorBeginning Inventory (BI) Purchases Sales Ending Inventory (EI)
Date BI Units BI $/Unit BI $ Purch $ Sale $ (CGS) EI Units EI $/Unit EI $ 1-Jul 1200 $ 43.00 $ 51,600.00 $ - $ - $ 51,600.00
Purch Units
Purch $/Unit
Sale Units (CGS)
Sale $/Unit (CGS)
Purch Units
Purch $/Unit
Sale Units (CGS)
Sale $/Unit (CGS)
Purch Units
Purch $/Unit
Sale Units (CGS)
Sale $/Unit (CGS)
AC Speed CorporationCash Receipts Journal
Date Sales - CR A/R - CR Other - CR Cash - DR
Acct - CR Customer Acct
Other AcctPost Ref
Sale Discount - DR
CGS - DR Inv - CR
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AC Speed CorporationCash Payments Journal
Date Check # Payee Account Debited Cash - CR Inventory - CR Other - DR A/P - DRPost Ref
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AC Speed CorporationGeneral Journal
Date Accounts DEBIT CREDIT Post Ref
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AC Speed CorporationGeneral Journal
Date Accounts DEBIT CREDIT Post Ref
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AC Speed CorporationGeneral Journal
Date Accounts DEBIT CREDIT Post Ref
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Account: Cash Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance $ 93,900.00
Account: Accounts Receivable Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance $ 490,000.00
Account: Allowance for Doubtful Accounts Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance
Account: Merchandise Inventory Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance $ 293,600.00
Account: Office Supplies Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance $ 2,000.00
Account: Prepaid Insurance Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun $ 30,000.00
Account: Land Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance Carried Forward $ 2,000,600.00 $ 2,000,600.00
Account: Building Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance Carried Forward $ 1,500,000.00 $ 1,500,000.00
Account: Accumulated Depreciation - Building Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance Carried Forward $ 1,500,000.00
Account: Equipment & Furniture - Warehouse Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance $ 10,000.00
Account: Accumulated Depreciation - Equip & Furn. - Warehouse Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance
Account: Equipment & Furniture - Office Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance $ 8,500.00
Account: Accumulated Depreciation - Equip & Furn. - Office Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance
Account: Accounts Payable Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance
Account: Wages Payable Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Interest Payable Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Dividends Payable Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Unearned Rent Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Notes Payable Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Bonds Payable Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Mortgage (Warehouse) Payable Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 1-Jul
Account: Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance
Account: Paid In Capital - Excess of Par Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun
Account: Retained Earnings Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance Brought Forward
Account: Treasury Stock Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Sales Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Sales Discounts Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Sales Returns & Allowances Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Cost of Goods Sold Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Wage Expense (hourly workers) Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Salaries Expense (Exempt Staff) Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Marketing Expense Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Travel and Entertainment Expense Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Bad Debt Expense Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Property Tax Expense Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Maintenance & Repair Expense Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Legal Expenses Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Insurance Expense Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Utilities Expense Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Office Supplies Expense Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Telecommunications Expense Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Depreciation Expense - Equip & Furniture - Warehouse Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Depreciation Expense - Equip & Furniture - Office Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Rent Income Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Interest Expense Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
Account: Income Summary Account No. Transaction Account Balance
Date Item Post Ref DEBIT CREDIT DEBIT
100 Account Balance
CREDIT
102 Account Balance
CREDIT
103 Account Balance
CREDIT $ 15,000.00
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104 Account Balance
CREDIT
105 Account Balance
CREDIT
106 Account Balance
CREDIT
140 Account Balance
CREDIT
145 Account Balance
CREDIT
146 Account Balance
CREDIT $ 1,500,000.00
151 Account Balance
CREDIT
152 Account Balance
CREDIT $ 1,900.00
153 Account Balance
CREDIT
154 Account Balance
CREDIT $ 1,600.00
201 Account Balance
CREDIT $ 948,600.00
202 Account Balance
CREDIT
203 Account Balance
CREDIT
204 Account Balance
CREDIT
205 Account Balance
CREDIT
250 Account Balance
CREDIT
251 Account Balance
CREDIT
252 Account Balance
CREDIT $ 200,000.00
300 Account Balance
CREDIT $ 75,000.00
301 Account Balance
CREDIT $ 1,341,000.00
330 Account Balance
CREDIT $ 366,000.00
340 Account Balance
CREDIT
500 Account Balance
CREDIT
510 Account Balance
CREDIT
511 Account Balance
CREDIT
600 Account Balance
CREDIT
700 Account Balance
CREDIT
701 Account Balance
CREDIT
702 Account Balance
CREDIT
703 Account Balance
CREDIT
704 Account Balance
CREDIT
705 Account Balance
CREDIT
706 Account Balance
CREDIT
707 Account Balance
CREDIT
708 Account Balance
CREDIT
709 Account Balance
CREDIT
710 Account Balance
CREDIT
711 Account Balance
CREDIT
712 Account Balance
CREDIT
713 Account Balance
CREDIT
800 Account Balance
CREDIT
900 Account Balance
CREDIT
1000 Account Balance
CREDIT
Account: General Motors Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT 30-Jun $ 10,000.00
Account: Ford Motor Co. Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT 5-Jun $ 200,000.00 $ 200,000.00
Account: Toyota Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT 11-Jun $ 200,000.00 $ 200,000.00
Account: Honda Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT
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Account: Garmin Account No. Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT 30-Jun $ 18,000.00
Account: Gentex Account No. Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT 27-Jun $ 40,000.00
Account: Bose Account No. Transaction Account Balance
Date Post Ref DEBIT CREDIT DEBIT CREDIT 30-Jun $ 142,000.00 $ 142,000.00
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Unadjusted Adjusted Income Bal. SheetTrial Balance Adjustments Trial Balance Statement Stmt. Own. Equity
Acct. No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
100 Cash
102 Accounts Receivable
103 Allowance for Doubtful Accounts
104 Merchandise Inventory
105 Office Supplies
106 Prepaid Insurance
140 Land
145 Building
146 Accumulated Depreciation - Building
151 Equipment & Furniture - Warehouse
152 Accumulated Depreciation - Equip & Furn. - Warehouse
153 Equipment & Furniture - Office
154 Accumulated Depreciation - Equip & Furn. - Office
201 Accounts Payable
202 Wages Payable
203 Interest Payable
204 Dividends Payable
205 Unearned Rent
250 Notes Payable
251 Bonds Payable
252 Mortgage (Warehouse) Payable
300 Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding
301 Paid In Capital - Excess of Par
330 Retained Earnings
340 Treasury Stock
500 Sales
510 Sales Discounts
511 Sales Returns & Allowances
600 Cost of Goods Sold
700 Wage Expense (hourly workers)
701 Salaries Expense (Exempt Staff)
702 Marketing Expense
703 Travel and Entertainment Expense
704 Bad Debt Expense
705 Property Tax Expense
706 Maintenance & Repair Expense
707 Legal Expenses
708 Insurance Expense
709 Utilities Expense
710 Office Supplies Expense
711 Telecommunications Expense
712 Depreciation Expense - Equip & Furniture - Warehouse
713 Depreciation Expense - Equip & Furniture - Office
800 Rent Income
900 Interest Expense
Total
Net Income (Loss)
Total
Income StatementMain Menu
Statement of Retained Earnings
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Balance SheetMain Menu
0Post-closing Trial Balance
DEBIT CREDIT
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AC Speed CorporationIncome Statement
12/31/2011 12/31/2010 12/31/2009
AC Speed CorporationIncome Statement
12/31/2008 7/31/2011
AC Speed CorporationBalance Sheet
12/31/2011 12/31/2010
AC Speed CorporationBalance Sheet
12/31/2009 12/31/2008 7/31/2011
Dec. 31, 2011 Dec. 31, 2010LiquidityCurrent Ratio (One decimal place)
Acid Test Ratio (One decimal place)
Receivables Turnover (One decimal place)
Inventory Turnover (One decimal place)
Profitability
Profit Margin (% with two decimal places)
Asset Turnover (two decimal places)
Return on Assets (% one decimal place)
Return on Common Shareholders' Equity (One decimal place)
Earnings per Share (EPS) (Two decimal places)
Price-Earnings (P/E ) Ratio (Two decimal places)
Payout Ratio (% One decimal place)
Solvency Ratios
Debt to Total Assets Ratio (% One decimal place)
Dec. 31, 2011 Dec. 31, 2010Common Dividends 41,600 37,500Weighted Average Common Shares 65,000 63,000Market Price per Share 56 52
INSTRUCTIONS:Calculate all of the ratios listed above.Evaluate the company's performance trend relative to liquidity, profitability and solvency.Evaluate the company's performance relative to liquidity, profitability and solvency for their industry for the three years.Relate to the company management in which areas they are performing well and in which areas they need improvement.
Dec. 31, 2009 INDUSTRY
2.2
1.5
10
9.5
7.5%
1.9
10.5%
18.3%
Main Menu
7.9
10.72
6.5%
42.2%
Dec. 31, 200935,00063,000
50
Evaluate the company's performance relative to liquidity, profitability and solvency for their industry for the three years.Relate to the company management in which areas they are performing well and in which areas they need improvement.
Dec. 31, 2011 Dec. 31, 2010 Dec. 31, 2009 Dec. 31, 2008Adjusted Adjusted Adjusted Adjusted
Trial Balance Trial Balance Trial Balance Trial Balance
Acct. No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.100 Cash 1,047,528 0 1,007,602 0 901,464 0 891,052 0
102 Accounts Receivable 1,149,993 0 1,048,769 0 979,226 0 853,307 0
103 Allowance for Doubtful Accounts 0 20,192 0 20,674 0 20,463 0 22,959
104 Merchandise Inventory 696,308 0 721,053 0 757,584 0 859,628 0
105 Office Supplies 3,996 0 3,811 0 4,089 0 4,295 0
106 Prepaid Insurance 28,022 0 27,945 0 26,074 0 25,294 0
140 Land 2,000,600 0 2,000,600 0 2,000,600 0 2,000,600 0
145 Building 1,500,000 1,500,000 1,500,000 1,500,000
146 Accumulated Depreciation - Building 1,500,000 1,500,000 1,500,000 1,500,000
151 Equipment & Furniture - Warehouse 33,600 0 35,616 0 39,178 0 42,704 0
152 Accumulated Depreciation - Equip & Furn. - Warehouse 0 2,589 0 2,687 0 2,444 0 2,511
153 Equipment & Furniture - Office 13,309 0 13,391 0 14,402 0 16,761 0
154 Accumulated Depreciation - Equip & Furn. - Office 0 2,330 0 2,628 0 2,947 0 2,089
201 Accounts Payable 0 811,012 0 798,712 0 756,324 0 613,841
202 Wages Payable 0 0 0 0 0 0 0 0
203 Interest Payable 0 0 0 0 0 0 0 0
204 Dividends Payable 0 0 0 0 0 0 0 0
205 Unearned Rent 0 9,295 0 9,847 0 8,210 0 9,346
250 Notes Payable 0 207,663 0 222,106 0 239,734 0 260,449
251 Bonds Payable 0 577,677 0 627,937 0 695,046 0 712,735
252 Mortgage (Warehouse) Payable 0 119,054 0 125,759 0 138,079 0 143,791
300 Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding 0 65,000 0 65,000 0 65,000 0 65,000
301 Paid In Capital - Excess of Par 0 1,545,000 0 1,545,000 0 1,545,000 0 1,545,000
330 Retained Earnings 0 1,086,913 1,037,616 933,734 1,001,124
340 Treasury Stock 14,560 0 14,560 0 14,560 0 14,560 0
500 Sales 0 7,588,995 0 6,376,923 0 6,204,281 0 5,823,100
510 Sales Discounts 155,056 0 167,848 0 134,257 0 114,133 0
511 Sales Returns & Allowances 108,742 0 127,321 0 118,629 0 121,863 0
600 Cost of Goods Sold 5,635,022 0 4,616,540 0 4,575,156 4,203,855
700 Wage Expense (hourly workers) 93,477 0 86,607 0 88,788 0 89,758 0
701 Salaries Expense (Exempt Staff) 546,225 0 533,062 0 524,917 0 528,856 0
702 Marketing Expense 21,280 0 18,432 0 16,927 0 15,824 0
703 Travel and Entertainment Expense 17,460 0 13,446 0 11,399 0 8,850 0
704 Bad Debt Expense 189,714 0 114,213 0 114,543 0 116,518 0
705 Property Tax Expense 0 0 0 0 0 0 0 0
706 Maintenance & Repair Expense 5,758 0 5,961 0 7,742 0 8,000 0
707 Legal Expenses 67,201 0 65,611 0 63,411 0 57,674 0
708 Insurance Expense 48,850 0 50,406 0 52,290 0 54,196 0
709 Utilities Expense 18,060 0 18,370 0 19,371 0 20,028 0
710 Office Supplies Expense 4,120 0 4,769 0 5,506 0 5,705 0
711 Telecommunications Expense 0 0 0 0 0 0 0 0
712 Depreciation Expense - Equip & Furniture - Warehouse 2,002 0 1,995 0 1,680 0 1,391 0
713 Depreciation Expense - Equip & Furniture - Office 3,806 0 3,270 0 2,979 0 2,384 0
800 Rent Income 0 23,620 0 24,110 0 24,970 0 25,575
900 Interest Expense 154,650 0 157,800 0 161,460 0 170,284 0
Total 13,559,339 13,559,339 12,358,998 12,358,998 12,136,232 12,136,232 11,727,520 11,727,520
Profit & Loss Account for Year Ended on December 31, 2011
Amount (Rs.) Amount (Rs.)
Sales (Gross) 7,588,995
Less:
Sales Return (155,056)
Sales Discounts (108,742)
(263,798)
Sales (Net) 7,325,197
Less: Cost of Sales
Cost of Goods Sold (5,635,022)
Wage Expense (hourly workers) (93,477)
Salaries Expense (Exempt Staff) (546,225)
Depreciation Expense - Equip & Furniture - Warehouse (2,002)
Depreciation Expense - Equip & Furniture - Office (3,806)
Bad Debt Expense (189,714)
Property Tax Expense -
Maintenance & Repair Expense (5,758)
Legal Expenses (67,201)
Insurance Expense (48,850)
Utilities Expense (18,060)
Office Supplies Expense (4,120)
(6,614,235)
Less: Marketing & Adminstration Expenses
Travel & Entertainment Expenses (17,460)
Marketing Expenses (21,280)
(38,740)
Less:Other Expenses:
Interest Expense (154,650) (154,650)
Add: Other Income
Rent Income 23,620 23,620
Net Profit 541,192
Balance Sheet As on December 31, 2011
Non-Current Assets Amount (Rs.) Amount (Rs.)
Land 2,000,600 2,000,600
Building 1,500,000
Accumulated Depreciation-Building (1,500,000) -
Equipment & Furniture - Warehouse 33,600
Accumulated Depreciation - Equip & Furn. - Warehouse (2,589) 31,011
Equipment & Furniture - Office 13,309
Accumulated Depreciation - Equip & Furn. - Office (2,330) 10,979
Current Assets
Inventory 696,308 696,308
Account Receivable 1,149,993
Allowance for Doubtful Accounts (20,192) 1,129,801
Cash 1,047,528 1,047,528
Office Supplies 3,996 3,996
Prepaid insurance 28,022 28,022
Treasury Stock 14,560 14,560
Total Assets 4,962,806
Capital & Retained Earning
Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding 65,000 65,000
Paid In Capital - Excess of Par 1,545,000 1,545,000
Retained Earnings 1,628,105 1,628,105
Current Liabilities
Accounts Payable 811,012 811,012
Unearned Rent 9,295 9,295
Notes Payable 207,663 207,663
Bonds Payable 577,677 577,677
Mortgage (Warehouse) Payable 119,054 119,054
Total Equity & Liabilities 4,962,806 4,962,806