Financial Accounting Worksheet

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Account Name
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Inventory
Prepaid Insurance
Prepaid Rent
Furniture and Fixtures
Accumulated Depreciation
Land
Accounts Payable
Other Payables
Unearned Income
Bank Loan
Capital Stock
Depreciation expense
Wages and Salaries Expense
Interest
Bank Service Charges
Rent
Bad Debt Expense
Income taxes
Type
Bank
Accounts Receivable (A/R)
Current Assets
Current Assets
Current Assets
Current Assets
Property, plant and Equipment
Property, plant and Equipment
Property, plant and Equipment
Accounts Payable (A/P)
Other Current Liabilities
Other Current Liabilities
Long-term Liabilities
Equity
Other Expense
Expenses
Expenses
Expenses
Expenses
Expenses
Expenses
Detail Type
Chequing
Accounts Receivable (A/R)
Allowance for bad debts
inventory
Prepaid Expenses
Prepaid Expenses
furniture and fixtures
Accumulated Depreciation
Other fixed assets
Accounts Payable (A/P)
Current Liabilities
Current Liabilities
Bank Loans
Common Stock
Depreciation
Payroll Expenses
Interest paid
Bank Charges
Rent or Lease of buildings
Bad debts
Taxes paid
BUSI 1001/1004 – Financial Reporting
Quickbooks Assignment
Solution
a.
1.
2.
3.
4.
5.
6.
7.
8.
9.1
Cash
Capital Stock
$20,000
$20,000
Land
Cash
55,000
Cash
Bank Loan
20,000
Inventory
Accounts Payable
Prepaid Insurance
Cash
55,000
20,000
555,000
555,000
4,200
4,200
Cash
Accounts Receivable
Sales
780,000
405,000
Cash
Accounts Receivable
425,000
Advertising Expense
Wages and Salaries Expense
Miscellaneous Expense
Interest Expense
Other Payables
Accounts Payable
Retained Earnings
Rent Expense
Cash
31,000
145,000
17,000
9,900
25,165
387,000
100,000
154,000
Bank Service Charges
Cash
1,185,000
425,000
869,065
258
258
9.2
Accounts Receivable
Cash
Balance per Bank Statement
Add: Deposits in Transit
Less: Outstanding Cheques
Balance per Books
(Agrees to cash balance)
10.1 Allowance for doubtful accounts
Accounts Receivable
10.2 Bad Debt Expense
Allowance for doubtful accounts
0 – 30 days:
2 % * 60,000
31 – 60 days: 10 % * 55,000
61 – 90 days: 45 % * 12,000
90 + days:
80 % * 5,000
End balance in AFDA
545
545
432,332
3,300
(7,800)
427,832
2,500
2,500
18,600
18,600
1,200
5,500
5,400
4,000
16,100
Bad debt expense: 16,100 + 2,500 = 18,600
11.
12.
Depreciation
Accumulated Depreciation
2,500
Insurance Expense
Prepaid Insurance – old
Prepaid Insurance – new
2,600
13. Interest Expense
Other Payable
(100,000 + 20,000) * 9% / 12 months
2,500
1,200
1,400
900
900
14. Cost of Goods Sold
Inventory
551,000
15. Sales
Unearned Income
8,700
16. Miscellaneous Expense
Accounts Payable
7,100
17. Wages and Salaries Expense
Other Payables
6,200
18. Rent Expense
551,000
8,700
7,100
6,200
14,000
Prepaid Rent
14,000
19. Unearned Revenues
Sales
5,600
5,600
20. Income Taxes
Other Payables
(221,842* 30%)
66,553
66,553
Assets
1
3
6
7
B
Cash
111,900
20,000 55,000
20,000 4,200
780,000 869,065
425,000
428,635
258
545
427,832
2
5
8
SFP
6
9.2
9.1
9.2
4
B
5
B
Prepaid rent
14,000
14,000
0
Inventory
86,000
555,000 551,000
90,000
Prepaid Insurance
1,200
4,200 2,600
2,800
7
12
14
8
19
12
18
8
Accumulated
Depreciation
2,500
2,500
5,000
B
2
Accounts
Payable
98,700
387,000 555,000
7,100
273,800
4
16
B
Unearned Revenues
5,600
5,600 8,700
8,700
15
B
Bank Loan
100,000
20,000
120,000
Furniture & Fixtures
25,000
Allowance for
Doubtful Accounts
10.1
2,500 18,600 10.2
16,100
Accounts
Receivable
55,000
405,000 425,000
545 2,500
33,045
Liabilities & Equity
Other Payables
25,165
25,165 900
6,200
66,553
73,653
Capital
Stock
100,000
20,000
120,000
11
B
Land
55,000
8
Retained
Earnings
38,865
100,000
138,865
2
B
13
14
20
B
1
B
Expenses
INCOME STATEMENT
14
Cost of Goods Sold
551,000
8
11
Depreciation
2,500
8
8
16
8
18
20
Miscellaneous
17,000
7,100
24,100
Rent
154,000
14,000
168,000
Income Taxes
66,553
8
13
Wages & Salaries
145,000
6,200
151,200
Advertising
31,000
Interest
9,900
900
10,800
12
Insurance
2,400
9.1
Bank Service
Charges
258
10.2
Bad Debt Expense
18,600
Revenues
15
Sales
8,700 1,185,000 6
5,600
19
1,181,900
b.
KP Sports Inc.
Trial Balance
As at December 31, 20×4
Cash
Accounts receivable
Allowance for Doubtful Accounts
Inventory
Prepaid Insurance
Prepaid rent
Furniture and fixtures
Accumulated depreciation
Land
Accounts payable
Other payables
Unearned income
Bank loan
Capital Stock
Retained earnings
Sales
Cost of goods sold
Wages and salaries
Depreciation expense
Advertising
Miscellaneous
Interest
Bank Service Charges
Bad Debt Expense
Rent
Insurance
Income taxes
Debit
Credit
$427,832
33,045
16,100
90,000
2,800
0
25,000
$ 5,000
55,000
273,800
73,653
8,700
120,000
120,000
138,865
1,181,900
551,000
151,200
2,500
31,000
24,100
10,800
258
18,600
168,000
2,600
66,553
$1,799,153
$1,799,153
c.
KP Sports Inc.
Income Statement
for the year ended December 31, 20×4
Sales
Cost of goods sold
Gross profit
$1,181,900
551,000
630,900
Operating expenses
Wages and salaries
Depreciation
Advertising
Miscellaneous
Rent
Bank Service Charges
Bad Debt Expense
Insurance
151,200
2,500
31,000
24,100
168,000
258
18,600
2,600
398,258
Operating Income
Interest expense
232,642
10,800
Net income before taxes
Income tax expense
221,842
66,553
Net income
$155,289
KP Sports Inc.
Statement of Changes in Shareholders’ Equity
for the year ended December 31, 20×4
Balance, January 1, 20×4
Issue of common stock
Net income
Dividends
Balance, December 31, 20×4
Common
Stock
$100,000
20,000
$120,000
Retained
Earnings
(Deficit)
($38,865)
155,289
(100,000)
$16,424
Total
$61,135
20,000
155,289
(100,000)
$136,424
KP Sports Inc.
Statement of Financial Position
as at December 31, 20×4
ASSETS
Current Assets
Cash
Accounts receivable
Allowance for Doubtful Accounts
Inventory
Prepaid insurance
Prepaid rent
Noncurrent Assets
Furniture and fixtures
Less accumulated depreciation
Land
$427,832
33,045
(16,100)
90,000
2,800
0
537,577
25,000
(5,000)
55,000
75,000
$612,577
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable
Other payables
Unearned income
$ 273,800
73,653
8,700
356,153
Long-term debt
Bank loan
Shareholders’ Equity
Capital stock
Deficit
120,000
120,000
16,424
136,424
$612,577
BUSI 1001/1004 – Financial Reporting
QuickBooks Assignment and Instructions
Your assignment submission must be in Excel and uploaded (one file only) to the
assignment drobox before midnight March 23, 2020.
Please note that this problem is an extension of ICP 3-3 KP Sports Inc.
Detailed instructions on how to enter the journal entries and export reports from QuickBooks
have been included in this document.
It is now one year later; Karen and Pat did not prepare any of the journal entries for KP Sports
Inc. during the year. The following transactions are the summarized transactions for the year
ended December 31, 20×4.
1.
Karen and Pat each purchased $10,000 of additional common shares, using their own
money.
2.
Pat and Karen purchased a piece of land during the year for $55,000. The land was
purchased with cash.
3.
The bank loan of $100,000 obtained on Feb 1, 20×3 is still outstanding. An additional
$20,000 bank loan was taken out on Jan 1, 20×4. Interest payments are due on the 1st of
the month. Annual interest rate is 9%. The loan terms were renegotiated and both loans
are due on February 1, 20×6.
4.
Inventory of $555,000 was purchased on account.
5.
The outstanding insurance policy expired June 30, 20×4. The insurance policy was
renewed for $4,200 cash. The policy takes effect on July 1, 20×4 and expires Dec 31,
20×5.
6.
Sales for the year were as follows:
Cash sales – $780,000
Sales on account – $405,000
7.
A total of $425,000 of the sales made on account were collected.
1
8.
Additional cash disbursements for the year were as follows:
Wages and salaries
Rent
Advertising
Miscellaneous expenses
Dividends to shareholders
Interest on bank loan
Payments on other payables accounts
Payments on account re: purchases of inventory
$145,000
154,000
31,000
17,000
100,000
9,900
25,165
387,000
$869,065
9. (2 entries) The December 31, 20×3 bank statement showed a balance of $432,332. The
following information is available for the December 31, 20×4 bank reconciliation:
1. Cheques amounting to $7,800 are outstanding at December 31
2. The December 31, 20×4 deposit of $3,300 had not been received by the bank
in time to be included in the December bank statement.
3. Bank service charges amounted to $258.
4. A customer’s cheque in the amount of $545 was returned by the bank NSF
10.
(2 entries) The Company calculates its allowance for doubtful accounts by
aging the accounts receivable based on the following percentages:
Days Past Invoice
0 – 30
31 – 60
61 – 90
91 +
Percent Estimated to be
Uncollectible
2%
10%
45%
80%
Days Past Invoice
at December 31
60,000
55,000
12,000
5,000
It was also determined that accounts totalling $2,500 need to be written off.
The following adjustments at year-end must be made:
11.
The furniture and fixtures are still expected to last a total of 10 years (9 years remaining)
with no salvage value. The straight-line method is to be used.
12.
The adjustment for insurance expense.
13.
The interest payable on the bank loan.
14.
An inventory count shows that a total of $90,000.
2
15.
Customers placed orders for goods not yet delivered. These customers paid a total of
$8,700 of deposits. These deposits have been included as part of the cash sales in part 6.
16.
Invoices received but not yet paid amount to $7,100 for miscellaneous expenses.
17.
Employees are owed a total of $6,200.
18.
The adjustment for rent expense and prepaid rent.
19.
The opening balance in unearned revenues of $5,600 was earned during the year.
20.
The expected income tax rate is 30%.
The opening balances as at December 31, 20×3 are as follows:
ASSETS
Current Assets
Cash
Accounts receivable
Inventory
Prepaid insurance
Prepaid rent
Noncurrent Assets
Furniture and fixtures
Less accumulated depreciation
$111,900
55,000
86,000
1,200
14,000
268,100
25,000
2,500
22,500
$290,600
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable
Other payables
Unearned income
Long-term debt
Bank loan
Shareholders’ Equity
Capital stock
Deficit
$ 98,700
25,165
5,600
129,465
100,000
100,000
(38,865)
61,135
3
$290,600
Required –
a.
Prepare all journal entries and enter all the above transactions into QuickBooks.
(23 entries in total – The opening balance entry (given) & 22 entries for 20×4)
b.
Export the following reports from QuickBooks (excel):
Journal
Trial Balance
Profit and Loss
Statement of Changes in Equity
Balance Sheet
Assets
Cash
111,900
SFP
Accounts
Receivable
55,000
Inventory
86,000
Prepaid Insurance
1,200
Prepaid rent
14,000
Allowance for
Doubtful Accounts
Furniture & Fixtures
25,000
Accumulated
Depreciation
2,500
Land
Liabilities & Equity
Accounts
Payable
98,700
Unearned Revenues
5,600
Bank Loan
100,000
Other Payables
25,165
Capital
Stock
100,000
Retained
Earnings
38,865
4
Expenses
INCOME STATEMENT
Cost of Goods Sold
Wages & Salaries
Depreciation
Advertising
Miscellaneous
Interest
Rent
Insurance
Income Taxes
Bank Service
Charges
Revenues
Sales
Bad Debt Expense
5
Covered in this document:
Setting up an account with QuickBooks …………………………………………………………………………..7
Entering transactions ……………………………………………………………………………………………………13
Generating Reports ……………………………………………………………………………………………………….20
Editing journal entries…………………………………………………………………………………………………..34
Combining multiple excel documents …………………………………………………………………………….36
6
Setting up an account with QuickBooks
1. Paste the following link into your web browser:
https://www.intuit.com/ca/partners/education-program/registration/students/quickbooks-online/
2. Enter your information into the registration sheet. For the following boxes, enter the
information as shown:
• Email Address: Use your Carleton email (FirstnameLastname@cmail.carleton.ca)
• Institution name: Carleton University
• Name of course: Accounting
• Software Required: QuickBooks Online
7
3. Click submit on the form. The web page should appear as follows:
4. You should receive an e-mail to your Carleton account. Keep this email as it contains the
request number that will be used if there are any issues with registration.
8
5. You will receive an email when the registration is accepted. Click on the link under
“Your Access Information”.
6. The link will open a new tab, on this page fill out the information required and click
“Start Free Trial”.
9
7. QuickBooks should automatically launch. The software may prompt you with a few
additional questions; fill them out as shown in the images below.
10
8. After initial set-up, you can access Quickbooks by using the same link from the initial
email you received (Step 5). If you use this link to access QuickBooks, it will load the
screen as shown below. Select “Continue to Trial” to enter QuickBooks.
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12
In order to enter transactions into QuickBooks, follow these steps:
1. After you have logged in, on the left side of the screen there is a list of options. From the
list, you want to select “Accounting”.
2. On the screen that opens select the arrow beside “New” in the top right corner and then
select “Import”. (If a button labelled “Go to Chart of Accounts” or “See Chart of
Accounts” appears, click on it in order to access this page.)
3. Select “Browse” and attach the excel file provided, titled “QuickBooks Import File”,
which has all of the accounts needed listed in it, and then select “Next”. (Before you
complete this step, you need to download the “QuickBooks Import File” from CuLearn.)
4. Ensure that the next screen appears as shown below and select “Next”.
13
5. The fields should automatically populate, similar to as shown below – then select
“Import”.
14
6. To enter the opening trial balance you need to create a journal entry. In the top left corner
select the “NEW” icon and select “Journal Entry” from the drop down menu.
7. In the top left, change the “Journal date” to 31/12/2013.
8. You need to enter the journal entry as shown below. (See instructions in Step 9)
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Account
Cash
Accounts Receivable
Inventory
Prepaid Insurance
Prepaid Rent
Furniture and Fixtures
Accumulated Depreciation
Accounts Payable
Other Payables
Unearned Income
Bank Loan
Capital Stock
Retained Earnings
Debit
111,900.00
55,000.00
86,000.00
1,200.00
14,000.00
25,000.00
Credit
2,500.00
98,700.00
25,165.00
5,600.00
100,000.00
100,000.00
38,865.00
$331,965.00
$331,965.00
9. Under the column titled “account”, click the first line and select “Cash” from the drop
down menu. Then, enter the corresponding amount of “111,900” in the debit column.
After the cash has been entered click on the next line (# 2) and select “Accounts
Receivable” from the dropdown menu. Once again, type in the corresponding amount of
“55,000” in the debit column. Continue on the next lines entering the various accounts
and their corresponding amounts in the debit and credits columns per the journal entry
given above in Step 8. (When entering journal entries, the next line will automatically
add a credit to match the debit you entered. You can ignore this number, as it will
disappear when you enter another amount in the line.)
16
10. The accounts receivable requires that it is assigned to a customer. In the “Name” column
and “Accounts Receivable” row, select the box (as shown below) and click on the arrow.
Select “Add New” and under Name type in “Customer”. Under Type use the arrow and
select customer in the drop down menu. Select “Save” in the open dialogue box.
11. Similarly, for the accounts payable select the Name box and click “Add New” and type in
“Supplier” (“Type” should be set to Supplier) and select “Save” in the open dialogue box.
12. Once all accounts and balances have been entered at the bottom right of the screen select
“Save”. To exit the journal entry click the “X” in the top right corner.
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13. To confirm that this was entered correctly on the left menu select “Reports” and then
“Balance sheet”. This will open the balance sheet; compare the balance sheet to the one
below to ensure the entries were made correctly. (The balance sheet is the same as the
one shown in the assignment) (If the report list does not show up when selected, first
click “Dashboard” and then click “Reports”.)
14. The balance sheet will automatically display todays date. You want to view the balance
sheet at the date you entered all of the transactions (31/12/2013). On the balance sheet in
the top left, change the dates to “31/12/2013” and 31/12/2013” then click “Run Report”.
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15. Continue entering the journal entries the same way that the first journal entry was made.
As in step 6 select the “NEW” icon and select “Journal Entry” from the drop down menu.
19
16.
17. First journal entry of the assignment – In the # column on the first line select “Cash”
from the dropdown menu and enter “20,000” in the debit column. In second line select
“Capital Stock” from the dropdown menu and enter “20,000” in the credit column.
18. Be sure to change the date to 31/12/2014, as the additional transaction occurred in 20×4.
After entering the first journal entry, you can select “Save and new” to start the next
journal entry.
20
19. Second journal entry of the assignment – In the # column on the first line select “Land”
from the dropdown menu and enter “55,000” in the debit column. In second line select
“Cash” from the dropdown menu and enter “55,000” in the credit column. Then select
“Save and new” in the bottom right corner to start the next journal entry.
20. Third journal entry of the assignment – In the # column on the first line select “Cash”
from the dropdown menu and enter “20,000” in the debit column. In second line select
“Bank Loan” from the dropdown menu and enter “20,000” in the credit column. Then
select “Save” in the bottom right corner.
21. We are now going to view the various reports in order to verify that the transactions have
been entered properly. You can open the reports at any time to see how the journal entries
have affected your financial statements. From the left menu select “Reports”, on this page
there is a search bar labelled “Find report by name”. This will allow you to access any of
the reports that you need. In QuickBooks the names of the various reports are as follows:
• Journal
• Trial Balance
• Balance Sheet
• Profit and Loss
21
•
Statement of Changes in Equity
22. First type in “Journal” and select it from the dropdown.
23. In order to view the journal entries you need to adjust the dates based on the dates that
the journals were entered. At the top left, change the dates to “01/01/2014” and
“31/12/2014”. (Use the start date 31/12/2013 to also view the opening balance entry)
Once the journals have updated compare to the image below. If you click on any of the
journal entries, it will re-open that particular entry. Opening the journal from here will
allow you to edit the entry and save it.
22
24. On the left menu select “Reports” and then in the “Find the report by name” search bar
type in “Trial balance”.
25. This time change the dates to “01/01/2014” and “31/12/2014” and then click “Run
Report”. Make sure that the date on the report is December 31, 2014. Once the balances
have updated compare your trial balance to the image below
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26. From the left menu select “Reports”, on this page there is a search bar labelled “Find
report by name”. Type in “Balance Sheet” and select it from the dropdown menu.
27. At the top left, change the dates to “01/01/2014” and “31/12/2014” and click “Run
Report”. Once the balances have updated compare your balance sheet to the image
below.
24
28. From the left menu select “Reports”, on this page there is a search bar labelled “Find
report by name”. Type in “Profit and loss” and select it from the dropdown menu.
25
29. At the top left, change the dates to “01/01/2014” and “31/12/2014” and click “Run
Report”. At this point, the profit and loss statement should have no data as we have not
entered any revenue or expenses.
30. On the left menu select “Reports” and then in the “Find the report by name” search bar
type in “Statement of Changes in Equity” and select the corresponding report.
31. In this case change the dates to “01/01/2014” and “01/01/2015” and then click “Run
Report”. We want the dates after year-end so that all of the income statement accounts
close out to retained earnings. Then at the top right select “Customize”.
26
32. Expand the dropdown menu for “Rows/Columns” and check the box for “Previous Year
(PY) and then click “Run Report” in the bottom right. There should now be two columns
showing in the report.
33. Once the balances have updated compare your Statement of Retained Earnings to the
image below.
27
34. Continue entering the remainder of the journal entries. (Don’t worry if you make a
mistake, instructions on editing journal entries will follow below) Whenever you use the
accounts payable or accounts receivable accounts you will need to assign them to the
supplier or customer that you created in Step 10 & 11.
28
To generate the reports needed for the assignment do the following:
Simple exporting instructions: Open the report; update the dates and any parameters needed.
Within each report, select the export icon in the top right and click “Export to excel”. Export
each of the five reports needed and combine them in one excel document.
Detailed exporting instructions:
1. Once all of the journal entries have been entered into QuickBooks you need to generate
the reports required for the assignment. First we will generate the report with the journal
entries; on the left side select “Reports” and then in the “Find the report by name” search
bar type in “Journal”.
2. At the top left, change the dates to “31/12/2013” and “31/12/2014”. Once the journals
have updated check to make sure that they are all showing up. Then at the top right select
the third icon (export icon) and from the dropdown select “Export to Excel”.
29
3. The next report we will generate is the trial balance. On the left menu select “Reports”
and then in the “Find the report by name” search bar type in “Trial balance”.
4. This time change the dates to “01/01/2014” and “31/12/2014” and then click “Run
Report”. Make sure that the date on the report is December 31, 2014. Then at the top
right select the third icon (export icon) and from the dropdown select “Export to Excel”.
5. The next report we will generate is the balance sheet. On the left menu select “Reports”
and then in the “Find the report by name” search bar type in “Balance Sheet”.
30
6. Once again change the dates to “01/01/2014” and “31/12/2014” and then click “Run
Report”. Make sure that the date on the report is December 31, 2014. Then at the top
right select the third icon (export icon) and from the dropdown select “Export to Excel”.
7. The next report we will generate is the income statements. On the left menu select
“Reports” and then in the “Find the report by name” search bar type in “Income
Statement” and select the corresponding report.
8. Once again change the dates to “01/01/2014” and “31/12/2014” and then click “Run
Report”. Make sure that the date on the report is December 31, 2014. Then at the top
right select the third icon (export icon) and from the dropdown select “Export to Excel”.
31
9. The next report we will generate is the changes in equity. On the left menu select
“Reports” and then in the “Find the report by name” search bar type in “Statement of
Changes in Equity” and select the corresponding report.
10. In this case change the dates to “01/01/2014” and “01/01/2015” and then click “Run
Report”. We want the dates after year-end so that all of the income statement accounts
close out to retained earnings. Then at the top right select “Customize”.
11. Expand the dropdown menu for “Rows/Columns” and check the box for “Previous Year
(PY) and then click “Run Report” in the bottom right. There should now be two columns
showing in the report.
32
12. Then at the top right in the report select the third icon (export icon) and from the
dropdown select “Export to Excel”.
13. Merge all excels into one excel (instructions below) for submission.
33
If you made a mistake in your journal entries and would like to make changes, do the
following:
1. On the left menu select “Reports” and then in the “Find the report by name” search bar
type in “Journal”.
2. At the top right, change the dates to “31/12/2013” and “31/12/2014”. All of your journal
entries should show up (if your error was in the dates expand the dates to include a larger
period). Within the report, the third column from the left (labelled “#”) is where all the
entries are numbered. Scan the entries for the one with the issue and click on the
corresponding number.
34
3. When you click on the journal entry number it will open the journal entry and you will be
able to make changes to the journal entry and save it.
35
In order to combine all of your excel reports into one document do the following;
1. First open the excel documents that you want to combine. Start with the Journal Entry
and Trial balance excel documents.
2. In the Trial Balance excel document, right click on the tab where it says “Trial Balance”.
3. A menu will appear, on the menu select “Move or Copy…”.
4. The below dialogue box will appear, under the dropdown for “To book:” select the name
of your journal entry excel worksheet (it must be open in a different instance of excel).
Then select “move to end” and “Create a copy”. When you select OK you should notice
that an additional excel tab will appear in your journal entry excel spreadsheet.
5. Repeat these steps for the other excel spreadsheets until they are all included in the tabs
of one sheet. Once this is done review your work for any errors. If you are satisfied with
the assignment, you can then upload it to CuLearn.
36
Xue Chen 101129209
Journal
January – December 2014
Date
31/12/2014
Transaction
Type
Journal Entry
#
2
Name
Memo/De
scription
Account
Cash
Capital Stock
31/12/2014
Journal Entry
3
Land
Cash
31/12/2014
Journal Entry
4
Cash
Bank Loan
31/12/2014
Journal Entry
5
Inventory
Accounts Payable
31/12/2014
Journal Entry
6
Prepaid Insurance
Cash
31/12/2014
Journal Entry
7
Cash
Accounts Receivable
Sales
31/12/2014
Journal Entry
8
Cash
Accounts Receivable
31/12/2014
Journal Entry
9
Advertising
Wages and Salaries Expense
Miscellaneous
Interest expense
Other Payables
Accounts Payable
Retained Earnings
Rent
Cash
31/12/2014
Journal Entry
10
Bank Service Charges
Cash
Accounts Receivable
Cash
31/12/2014
Journal Entry
11
Allowance for Doubtful Accounts
Accounts Receivable
Bad Debt Expense
Allowance for Doubtful Accounts
31/12/2014
Journal Entry
12
Depreciation expense
Accumulated Depreciation
31/12/2014
Journal Entry
13
Insurance
Prepaid Insurance
Prepaid Insurance
31/12/2014
Journal Entry
14
Interest expense
Other Payables
31/12/2014
Journal Entry
15
Cost of Goods Sold
Inventory
31/12/2014
Journal Entry
16
Sales
Unearned revenues
31/12/2014
Journal Entry
17
Miscellaneous
Accounts Payable
31/12/2014
Journal Entry
18
Wages and Salaries Expense
Other Payables
31/12/2014
Journal Entry
19
Rent
Prepaid Rent
31/12/2014
Journal Entry
20
Unearned revenues
Sales
31/12/2014
Journal Entry
21
Income taxes
Other Payables
TOTAL
Monday, Feb 10, 2020 06:25:06 PM GMT-8
Debit
Credit
20,000.00
20,000.00
$
20,000.00 $
20,000.00
55,000.00
55,000.00
$
55,000.00 $
55,000.00
20,000.00
20,000.00
$
20,000.00 $
20,000.00
555,000.00
555,000.00
$
555,000.00 $
555,000.00
4,200.00
4,200.00
$
4,200.00 $
4,200.00
780,000.00
405,000.00
1,185,000.00
$ 1,185,000.00
$ 1,185,000.00
425,000.00
425,000.00
$
425,000.00 $
425,000.00
31,000.00
145,000.00
17,000.00
9,900.00
25,165.00
387,000.00
100,000.00
154,000.00
869,065.00
$
869,065.00 $
869,065.00
258.00
258.00
545.00
545.00
$
803.00
$
803.00
2,500.00
2,500.00
18,600.00
18,600.00
$
21,100.00 $
21,100.00
2,500.00
2,500.00
$
2,500.00 $
2,500.00
2,600.00
1,200.00
1,400.00
$
2,600.00 $
2,600.00
900.00
900.00
$
900.00
$
900.00
551,000.00
551,000.00
$
551,000.00 $
551,000.00
8,700.00
8,700.00
$
8,700.00 $
8,700.00
7,100.00
7,100.00
$
7,100.00 $
7,100.00
6,200.00
6,200.00
$
6,200.00 $
6,200.00
14,000.00
14,000.00
$
14,000.00 $
14,000.00
5,600.00
5,600.00
$
5,600.00 $
5,600.00
66,553.00
66,553.00
$
66,553.00 $
$ 3,820,321.00
66,553.00
$ 3,820,321.00
Xue Chen 101129209
Trial Balance
As of December 31, 2014
Debit
Credit
427,832.00
Cash
Accounts Receivable
33,045.00
16,100.00
Allowance for Doubtful Accounts
90,000.00
Inventory
Prepaid Insurance
Prepaid Rent
2,800.00
0.00
5,000.00
Accumulated Depreciation
Furniture and Fixtures
25,000.00
Land
55,000.00
273,800.00
Accounts Payable
73,653.00
Other Payables
8,700.00
Unearned revenues
Bank Loan
120,000.00
Capital Stock
120,000.00
Retained Earnings
138,865.00
1,181,900.00
Sales
Cost of Goods Sold
551,000.00
Advertising
31,000.00
Bad Debt Expense
18,600.00
Bank Service Charges
Income taxes
258.00
66,553.00
2,600.00
Insurance
Interest expense
10,800.00
Rent
168,000.00
Wages and Salaries Expense
151,200.00
Depreciation expense
Miscellaneous
TOTAL
2,500.00
24,100.00
$ 1,799,153.00
$ 1,799,153.00
Monday, Feb 10, 2020 06:27:03 PM GMT-8 – Accrual Basis
Xue Chen 101129209
Profit and Loss
January – December 2014
Total
INCOME
1,181,900.00
Sales
Total Income
$
1,181,900.00
$
551,000.00
$
630,900.00
COST OF GOODS SOLD
551,000.00
Cost of Goods Sold
Total Cost of Goods Sold
GROSS PROFIT
EXPENSES
Advertising
31,000.00
Bad Debt Expense
18,600.00
258.00
Bank Service Charges
66,553.00
Income taxes
2,600.00
Insurance
10,800.00
Interest expense
Rent
168,000.00
Wages and Salaries Expense
151,200.00
2,500.00
Depreciation expense
Total Expenses
$
451,511.00
OTHER EXPENSES
24,100.00
Miscellaneous
Total Other Expenses
$
24,100.00
PROFIT
$
155,289.00
Monday, Feb 10, 2020 06:29:32 PM GMT-8 – Accrual Basis
Xue Chen 101129209
Statement of changes in equity
As of January 1, 2015
Total
As of Jan 1, 2015
Capital Stock
Retained Earnings
Total Equity
$
As of Jan 1, 2014 (PY)
120,000.00
100,000.00
16,424.00
-38,865.00
136,424.00
$
Sunday, Mar 22, 2020 01:30:11 PM GMT-7 – Accrual Basis
61,135.00
Xue Chen 101129209
Balance Sheet
As of December 31, 2014
Total
Assets
Current Assets
Cash and Cash Equivalent
427,832.00
Cash
Total Cash and Cash Equivalent
$
427,832.00
Accounts Receivable (A/R)
33,045.00
Accounts Receivable
Total Accounts Receivable (A/R)
$
90,000.00
Inventory
2,800.00
Prepaid Insurance
0.00
Prepaid Rent
Total Current Assets
33,045.00
-16,100.00
Allowance for Doubtful Accounts
$
537,577.00
Non-current Assets
Property, plant and equipment
Accumulated Depreciation
-5,000.00
Furniture and Fixtures
25,000.00
55,000.00
Land
Total Property, plant and equipment
Total Non Current Assets
Total Assets
$
75,000.00
$
75,000.00
$
612,577.00
Liabilities and Equity
Liabilities
Current Liabilities
Accounts Payable (A/P)
273,800.00
Accounts Payable
Total Accounts Payable (A/P)
$
8,700.00
Unearned revenues
Total Current Liabilities
273,800.00
73,653.00
Other Payables
$
356,153.00
$
120,000.00
$
476,153.00
Non-current Liabilities
120,000.00
Bank Loan
Total Non-current Liabilities
Total Liabilities
Equity
120,000.00
Capital Stock
Retained Earnings
-138,865.00
Profit for the year
155,289.00
Total Equity
Total Liabilities and Equity
$
136,424.00
$
612,577.00
Monday, Feb 10, 2020 06:28:39 PM GMT-8 – Accrual Basis

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