Ater, Rockford Project, BUA202

Chart of Accounts

Cash 101Petty Cash 105Accounts Receivable 112Allowance for Doubtful Accounts 113Notes Receivable 115Interest Receivable 118Inventory 120Supplies 126Prepaid Insurance 130Prepaid Rent 131Other Assets 135Land 140Buildings 145

146Equipment 151

152Trucks 163

164Notes Payable 200Accounts Payable 201Salaries and Wages Payable 212FICA Taxes Payable 214Incomes Taxes Payable 215Federal Withholding Taxes Payable 216State Withholding Taxes Payable 218FUTA Taxes Payable 224SUTA Taxes Payable 226Interest Payable 230Dividends Payable 250Notes Payable (LT Liability) 268Bonds Payable 270Discount on Bonds Payable 273Common Stock 311Paid-in Capital in Excess of Stated Value 317Retained Earnings 320Treasury Stock 330Dividends 332Income Summary 350Sales Revenue 401Sales Returns and Allowances 412Sales Discounts 414Purchases 510Purchases Returns and Allowances 512Purchases Discounts 514Freight-in 516Advertising Expense 610Bad Debt Expense 612Supplies Expense 631Freight-out 644Miscellaneous Expense 649Depreciation Expense 711Insurance Expense 722Salaries and Wages Expense 726Rent Expense 729Payroll Tax Expense 730Utilities Expense 732Interest Revenue 820Gain on Disposal of Plant Assets 826Interest Expense 905Loss on Disposal of Plant Assets 921Income Tax Expense 999

Accum. Depr. - Buildings

Accum. Depr. - Equipment

Accum. Depr. - Trucks

General Journal Page

Date Account Titles and Explanation Ref Debit Credit

12 3 Allowance for Doubtful Accounts 113 3700112/190 3700

To record the write-off of an account due to bankruptcy.

12 9 Payroll Tax Expense 730 350 FICA Taxes Payable 214 350To record employer's portion of FICA taxes on biweekly payroll.

12 15 Sales Returns and Allowances 412 4680 Accounts Receivable-The Potts Company 112/122 4680To record defective copper tubing returned by customer.

12 17 Notes Receivable 115 45200112/180 45200

To record receipt of a 14%, 6-month note for an overdue accounts receivable

12 22 Freight-in 516 2300201/20 2300

To record freight costs for December 2014

12 23 Payroll Tax Expense 730 415 FICA Taxes Payable 214 415To record employer's portion of FICA taxes on biweekly payroll.

12 26 Dividends 332 8280 Dividends Payable 250 8280To record declaration of dividends payable to stockholders on record

12 26 Note Receivable 115 14000 Accounts Receivable-Beverley's Building Products 112/175 14000To record the receipt of a 12%, 6-month note for an overdue accounts receivable

12 29 Land 140 54000 Common Stock-Stated Value $30 18000 Paid-in Capital in Excess of Stated Value 311 36000To record acquisition of land parcel in exchange for 600 shares of common stock

12 31 Depreciation Expense 711 350164 350

To bring depreciation up to date

12 31 Payroll Tax Expense 730 3120 FICA Taxes Payable 214 3120To record employer's portion of FICA taxes on monthly payroll.

Accounts Receivable-Iwanaga Plumbing and Heating

Accounts Receivable-Boecker Construction

Accounts Payable-DeKalb Transport



Adj 1 Bad Debt Expense 612 110976Allowance for Doubtful Accounts 113 110976To record adjustment for the provision of bad debts

Adj 2 Supplies Expense 631 2850 Supplies 126 2850To record adjustment for supplies on hand at year end

Adj 3 Income Summary 350 531960 Inventory 120 531960Inventory 120 554930 Income Summary 350 554930To record adjustment for inventory on hand at year end

Adj 4 Miscellaneous Expense 649 1455Insurance Expense 722 4365 Prepaid Insurance 130 5820To record adjustment for insurance premiums used during 2014

Adj 5 Salaries and Wages Expense 726 6100 FICA Payable 214 430 Federal Withholding Payable 216 1036 State Withholding Payable 218 218 Salaries and Wages Payable 212 4416To record adjustment for accrued wages at year end

Adj 6 Payroll Tax Expense 730 430 FICA Payable 214 430To record employer's portion of FICA taxes for accrued wages adjustment

Adj 7 Interest Expense 905 11556 Interest Payable 230 10020 Discount on Bonds Payable 273 1536To record adjustment for accrued interest on notes and bonds payable

Adj 8 Interest Receivable 118 1374 Interest Revenue 820 1374Interest Expense 905 1500 Interest Payable 230 1500To record adjustment for accrued interest on notes receivable and one note payable

Adj 9 Rent Expense 729 22610 Prepaid Rent 131 22610To record adjustment for expired rent

Adj 10 Utilities Expense 732 809 Accounts Payable- Northern Electric Co. 201/58 530


Accounts Payable- City of Rockford 201/59 279To record adjustment for balance owed for utility services provided in December 2014

Adj 11 Depreciation Expense 711 37090152 5620164 12550146 18920

To record adjustment for annual accumulated depreciation

Adj 12 Income Tax Expense 999 15413 Income Tax Payable 215 15413To record accrued income taxes for 2014.

12 31 Sales Revenue 401 5640052Interest Revenue 820 4524 Income Summary 350 5644576To close revenue accounts to income summary

12 31 Income Summary 350 5426647

Sales Returns and Allowances 412 14060 Sales Discounts 414 77181 Cost of Goods Sold 3863934 Advertising Expense 610 7678 Supplies Expense 631 4458 Freight-Out 644 19490 Rent Expense 729 22610 Bad Debt Expense 612 110976 Depreciation Expense 711 37440 Insurance Expense 722 4365 Salaries and Wages Expense 726 992752 Miscellaneous Expense 649 1455 Payroll Tax Expense 730 87231 Utilities Expense 732 17478 Interest Expense 905 37626 Loss on Disposal of Plant Assets 921 500 Income Tax Expense 999 127413


Accum. Depr – Trucks

Accum. Depr. - Building

Date Account Titles and Explanation Ref Debit CreditTo close expense accounts to income summary

12 31 Income Summary 350 217929 Retained Earnings 320 217929To close income summary to retained earnings

Purchase Journal

Page 6

Purchase Journal

Date 2014Purchase

Account Credited Acct. No. AmountOrder No.12 2 315 Edward's Plumbing Supplies, Inc. n/60 18 24320

8 316 Phoenix Plastics 1/10, n/30 14 5270017 317 Smith Pipe Company 1/15, n/60 39 5080019 318 (see Cash Disbursements Journal)22 319 Phoenix Plastics 1/10, n/30 14 4833030 320 35 63940

240090Oxenford Copperworks

Sales Journal

Page 7

Sales Journal

Date 2014Invoice

Account Debited Acct. No. AmountNo.12 1 1201 Beverley's Building Products 175 13150

3 1202 180 449004 1203 160 103008 1204 Trudy's Plumbing 155 29300

10 1205 Trudy's Plumbing 155 2885011 1206 The Potts Company 122 3145012 1207 117 2473017 1208 A & B Hardware 143 792018 1209 160 4278029 1210 117 4904030 1211 Swanson Brother's Construction 133 2465031 1212 Trudy's Plumbing 155 55770

362840

Bilder Construction Co.Coconino Contractors, Inc.

Boecker Builders

Coconino Contractors, Inc.Boecker Builders

Cash Disbursements Journal

Page 8

Cash Disbursements JournalDate Check

Payee

Cash

Ref.

A/P Sundry Accounts

2014 No. Cr. Dr. Cr. Acct. No. ✓ Dr. Cr.

12 2 1580 26400 35 26400

4 1581 Standard Oil Company 810 644 ✓ 8105 1582 9900 57 10000 1005 1583 Phoenix Plastics 10486 14 10700 214

9 1584 Payroll Bank Account 3420 726 ✓ 4860

9 214 ✓ 350

9 216 ✓ 900

9 218 ✓ 190

9 1585 Scooter Gordon 600 610 ✓ 6009 1586 Phoenix Plastics 6750 14 675010 1587 Smith Pipe Company 37719 39 38100 381

15 1588 N. III. Communications 399 732 ✓ 399

16 1589 Winnebago County Bank 11360 216 ✓ 9573

16 214 ✓ 178716 1590 Phoenix Plastics 52173 14 52700 527

18 1591 S. White Trucking 1021 516 ✓ 1021

19 1592 Pen & Pad 1360 126 ✓ 1360

19 1593 Business Basics, Inc. 600 151 ✓ 6100

19 201/16 ✓ 5500

23 1594 Payroll Bank Accounts 4063 726 ✓ 5770

23 214 ✓ 415

23 216 ✓ 1067

23 218 ✓ 225

26 1595 83000 330 ✓ 83000

29 1596 Wayne McManus 2650 140 ✓ 2650

30 1597 Northern Star 500 610 ✓ 500

30 1598 Standard Oil Co. 925 644 ✓ 925

30 1599 Chicago Trust Co. 15000 135 ✓ 1500031 1600 Smith Pipe Company 50292 39 50800 508

31 1601 Petty Cash Fund 142 631 ✓ 68

31 644 ✓ 23

31 516 ✓ 51

31 1602 Petty Cash Fund 75 105 ✓ 75

31 1603 Payroll Bank Account 30567 726 ✓ 42900

31 216 ✓ 7696

31 218 ✓ 1517

31 214 ✓ 3120350212 195450 1730 177472 20980

Purch. Disc.

Oxenford Copperworks

Khatan Steel Corp.

Dionne Schivone

Cash Disbursements Journal

Page 9

Total Credits Total Debits372922 372922

Cash Receipts Journal

Page 10

Cash Receipts JournalDate

Description

Cash Sales Disc.

Ref.

Accounts Rec. Sales Rev. Sundry Accounts

2014 Dr. Dr. Cr. Cr. Acct. No. ✓ Dr. Cr.

12 1 Swanson Brothers 23569 481 133 240504 The Potts Company 49294 1006 122 503005 Rankin Plumbing Corp. 72863 1487 166 743508 27800 160 278008 29000 117 2900010 Trudy's Plumbing 15100 155 1510011 33920 117 3392011 Cash sales 12292 1229212 Trudy's Plumbing 28714 586 155 2930018 Trudy's Plumbing 28273 577 155 2885030 24730 117 24730

31 2500 164 ✓ 4900

31 921 ✓ 500

31 163 ✓ 790031 Cash sales 29980 29980

378035 4137 337400 42272 5400 7900

Total Credits Total Debits387572 387572

Coconino Contractors, Inc.Boecker Builders

Boecker Builders

Boecker Builders

Leila Steirman Co.

General LedgerAccount: Cash Acct # 101

Date Explanation Ref. Debit Credit Balance1/1 Balance 39,16011/30 Balance 209,93012/31 Cash balance from cash receipts journal 378,035 587,96512/31 Cash disbursements 350,212 237,753

Account: Petty Cash Acct # 105Date Explanation Ref. Debit Credit Balance

1/1 Balance 15012/31 To increase balance 75 225

Account: Accounts Receivable Acct # 112Date Explanation Ref. Debit Credit Balance

1/1 Balance 172,64311/30 Balance 317,42012/3 J9 3,700 313,72012/15 J9 4,680 309,04012/17 J9 45,200 263,84012/26 Beverley's Building Products 14,000 249,84012/31 Balance from sales journal 362,840 612,68012/31 Balance from cash receipts journal 337,400 275,280

Account: Allowance for Doubtful Accounts Acct # 113Date Explanation Ref. Debit Credit Balance

1/1 Balance 13,52011/30 Balance 4,58012/3 J9 3,700 88012/31 Provision for doubtful accounts Adj1 110,976 111,856

Account: Notes Receivable Acct #115Date Explanation Ref. Debit Credit Balance

1/1 Balance 40,00011/30 45,00012/17 J9 45,200 90,20012/26 Beverley's Building Products 14,000 104,200

Balance-Platteville PlumbersBilder Construction

Account: Interest Receivable Acct # 118Date Explanation Ref. Debit Credit Balance

1/1 Balance 58011/30 Balance 012/31 Interest accrued Adj8 1,374 1,374

Account: Inventory Acct # 120Date Explanation Ref. Debit Credit Balance

1/1 Balance 531,96012/31 Inventory adjustment Adj3 531,960 012/31 Inventory adjustment – inventory on hand Adj3 554,930 554,930

Account: Supplies Acct # 126Date Explanation Ref. Debit Credit Balance

1/1 Balance 1,65011/30 Balance 2,32012/19 CD18 1,360 3,68012/31 Supplies on hand at year end Adj2 2,850 830

Account: Prepaid Insurance Acct # 130Date Explanation Ref. Debit Credit Balance

1/1 Balance 3,22011/30 Balance 11,02012/31 Prepaid Insurance used in 2014 Adj4 5,820 5,200

Account: Prepaid Rent Acct # 131Date Explanation Ref. Debit Credit Balance

1/1 Balance 2,80011/30 Balance 25,41012/31 Rent used in 2014 Adj9 22,610 2,800

Account: Other Assets Acct # 135Date Explanation Ref. Debit Credit Balance

1/1 Balance 130,0007/1 CD15 15,000 145,00012/30 For deposit in sinking fund 15,000 160,000

Account: Land Acct # 140Date Explanation Ref. Debit Credit Balance

1/1 Balance 43,00012/29 Land acquisition for common stock 54,000 97,00012/29 Legal fees paid for acquisition 2,650 99,650

Account: Buildings Acct # 145Date Explanation Ref. Debit Credit Balance

1/1 Balance 306,000

Account: Acct # 146Date Explanation Ref. Debit Credit Balance

1/1 Balance 73,04012/31 Depreciation for 2014 Adj11 18,920 91,960

Account: Equipment Acct # 151Date Explanation Ref. Debit Credit Balance

1/1 Balance 32,80012/21 CD18 6,100 38,900


1/1 Balance 13,20012/31 Depreciation for 2014 Adj11 5,620 18,820

Account: Trucks Acct # 163Date Explanation Ref. Debit Credit Balance

1/1 Balance 78,40012/31 Sold truck lift 7,900 70,500


1/1 Balance 39,54012/31 Depreciation 350 39,89012/31 Sale of truck lift 4,900 34,99012/31 Depreciation for 2014 12,550 47,540

Account: Notes Payable Acct # 200Date Explanation Ref. Debit Credit Balance

1/1 Balance – Renewed 12/31/13 15,000

Account: Accounts Payable Acct # 201Date Explanation Ref. Debit Credit Balance




1/1 Balance 86,35211/30 Balance 126,85012/15 J9 3,550 123,30012/19 CD18 5,500 128,80012/22 J9 2,300 131,10012/31 Balance from purchase journal 240,090 371,19012/31 Balance from cash disbursements journal 195,450 175,74012/31 Balance owed for utility services through Dec 2014 Adj10 809 176,549

Account: Salaries and Wages Payable Acct # 212Date Explanation Ref. Debit Credit Balance

1/1 Balance 1,90611/30 Balance 012/31 Salaries accrued for biweekly paid employees Adj5 4,416 4,416

Account: FICA Taxes Payable Acct # 214Date Explanation Ref. Debit Credit Balance

1/1 Balance 78111/30 Balance 1,78712/9 CD18 350 2,13712/9 J9 350 2,48712/16 CD18 1,787 70012/23 J9 415 1,11512/23 CD18 415 1,53012/31 Monthly paid employees 3,120 4,65012/31 Employers portion for monthly paid employees 3,120 7,77012/31 Employers portion for biweekly paid employees Adj6 430 8,20012/31 Adj5 430 8,630

Account: Income Taxes Payable Acct # 215Date Explanation Ref. Debit Credit Balance

1/1 Balance 15,78911/30 Balance 012/31 Income tax accrued for 2014 Adj12 15,413 15,413

Account: Federal Withholding Taxes Payable Acct # 216Date Explanation Ref. Debit Credit Balance

1/1 Balance 5,14811/30 Balance 9,57812/9 CD18 900 10,47312/16 CD18 9,573 90012/23 CD18 1,067 1,96712/31 Monthly paid employees 7,696 9,66312/31 Biweekly paid employees Adj5 1,036 10,699

Account: State Withholding Taxes Payable Acct # 218Date Explanation Ref. Debit Credit Balance

1/1 Balance 1,59511/30 Balance 2,486

12/9 CD18 190 2,67612/23 CD18 225 2,90112/31 Monthly paid employees 1,517 4,41812/31 Biweekly paid employees Adj5 218 4,636

Account: FUTA Taxes Payable Acct # 224Date Explanation Ref. Debit Credit Balance

1/1 Balance 21611/30 Balance 400

Account: SUTA Taxes Payable Acct # 226Date Explanation Ref. Debit Credit Balance

1/1 Balance 1,32311/30 Balance 2,600

Account: Interest Payable Acct # 230Date Explanation Ref. Debit Credit Balance

1/1 Balance 15,16511/30 Balance 012/31 Accrued interest Adj7 10,020 10,02012/31 Accrued interest on notes payable Adj8 1,500 11,520

Account: Dividends Payable Acct # 250Date Explanation Ref. Debit Credit Balance

1/1 Balance 23,10011/30 Balance 012/26 Declaration of dividends 8,280 8,280

Account: Notes Payable (LT Liability) Acct # 268Date Explanation Ref. Debit Credit Balance

1/1 Balance 43,0007/1 Increased Mortgage CR10 70,000 113,000

Account: Bonds Payable Acct # 270Date Explanation Ref. Debit Credit Balance

1/1 Balance (issued Mar. 1, 2008) 275,000

Account: Discount on Bonds Payable Acct # 273Date Explanation Ref. Debit Credit Balance

1/1 Balance 6,40012/31 Amortization of discount through 12/31/14 Adj7 1,536 4,864

Account: Common Stock - $30 Stated Value Acct # 311Date Explanation Ref. Debit Credit Balance

1/1 Balance (6300 shares) 189,00012/29 600 shares issued in exchange for land parcel 18,000 207,000

Account: Paid-in Capital in Excess of Stated Value Acct # 317Date Explanation Ref. Debit Credit Balance

1/1 Balance 256,40012/29 600 shares issued in exchange for land parcel 36,000 292,400

Account: Retained Earnings Acct # 320Date Explanation Ref. Debit Credit Balance

1/1 Balance 362,74812/31 Closing of income summary 217,929 580,677

Account: Treasury Stock Acct # 330Date Explanation Ref. Debit Credit Balance

1/1 Balance (700 shares) 42,61012/26 Repurchase of 1,000 shares 83,000 125,610

Account: Dividends Acct # 332Date Explanation Ref. Debit Credit Balance

12/26 Declaration of dividends 8,280 8,280

Account: Income Summary Acct # 350

Date Explanation Ref. Debit Credit Balance12/31 Adj3 531,960 531,96012/31 Adj3 554,930 22,97012/31 Closing of revenue accounts 5,644,576 5,667,54612/31 Closing of expense accounts 5,426,647 240,89912/31 Closed to retained earnings 217,929 22,970

Account: Sales Revenue Acct # 401Date Explanation Ref. Debit Credit Balance

11/30 Balance 5,234,94012/31 Balance from cash receipts journal 42,272 5,277,21212/31 Balance from sales journal 362,840 5,640,05212/31 Closed to income summary 5,640,052 0

Account: Sales Returns and Allowances Acct # 412Date Explanation Ref. Debit Credit Balance

11/30 Balance 9,38012/15 J9 4,680 14,06012/31 Closed to income summary 14,060 0

Account: Sales Discounts Acct # 414Date Explanation Ref. Debit Credit Balance

1/1 Balance 73,04412/31 Balance from cash receipts journal 4,137 77,18112/31 Closed to income summary 77,181 0

Account: Purchases Acct # 510Date Explanation Ref. Debit Credit Balance

11/30 Balance 3,722,29012/31 Balance from purchase journal 240,090 3,962,380

Account: Purchases Returns and Allowances Acct # 512Date Explanation Ref. Debit Credit Balance

11/30 Balance 25,52012/15 J9 3,550 29,070

Account: Purchases Discounts Acct # 514Date Explanation Ref. Debit Credit Balance

11/30 Balance 67,49612/31 Balance from cash disbursements journal 1,730 69,226

Account: Freight-in Acct # 516Date Explanation Ref. Debit Credit Balance

11/30 Balance 19,44812/18 CD18 1,021 20,46912/22 J9 2,300 22,76912/31 C.O.D Postage 51 22,820

Account: Advertising Expense Acct # 610Date Explanation Ref. Debit Credit Balance

11/30 Balance 6,57812/9 CD18 600 7,17812/30 Advertisement 500 7,67812/31 Closed to income summary 7,678 0

Account: Bad Debt Expense Acct # 612Date Explanation Ref. Debit Credit Balance

12/31 Provision for doubtful accounts Adj1 110,976 110,97612/31 Closed to income summary 110,976 0

Account: Supplies Expense Acct # 631Date Explanation Ref. Debit Credit Balance

11/30 Balance 1,54012/30 Postage Stamps 68 1,60812/31 Supplies used during year Adj2 2,850 4,45812/31 Closed to income summary 4,458 0

Account: Freight-Out Acct # 644Date Explanation Ref. Debit Credit Balance

11/30 Balance 17,73212/4 CD18 810 18,54212/30 Payment to Standard Oil Co. 925 19,46712/31 United Parcel 23 19,49012/31 Closed to income summary 19,490 0

Account: Miscellaneous Expense Acct # 649Date Explanation Ref. Debit Credit Balance

12/31 Insurance premium associated with selling activities Adj4 1,455 1,45512/31 Closed to income summary 1,455 0

Account: Depreciation Expense Acct # 711

Date Explanation Ref. Debit Credit Balance12/31 Depreciation on truck lift 350 35012/31 Depreciation for 2014 Adj11 37,090 37,44012/31 Closed to income summary 37,440 0

Account: Insurance Expense Acct # 722Date Explanation Ref. Debit Credit Balance

12/31 Insurance Premium attributable to general activities Adj4 4,365 4,36512/31 Closed to income summary 4,365 0

Account: Salaries and Wages Expense Acct # 726Date Explanation Ref. Debit Credit Balance

11/30 Balance 933,12212/9 CD18 4,860 937,98212/23 CD18 5,770 943,75212/31 To pay monthly paid employees 42,900 986,65212/31 Biweekly paid employees Adj5 6,100 949,85212/31 Closed to income summary 949,852 0

Account: Rent Expense Acct # 729Date Explanation Ref. Debit Credit Balance

12/31 Rent expense for 2014 Adj9 22,610 22,61012/31 Closed to income summary 22,610 0

Account: Payroll Tax Expense Acct # 730Date Explanation Ref. Debit Credit Balance

11/30 Balance 82,91612/9 J9 350 83,26612/23 J9 415 83,68112/31 Employers portion for monthly paid employees 3,120 86,80112/31 Employers portion for biweekly paid employees Adj6 430 87,23112/31 Closed to income summary 87,231 0

Account: Utilities Expense Acct # 732Date Explanation Ref. Debit Credit Balance

11/30 Balance 16,27012/15 CD18 399 16,66912/31 Utilities provided during Dec 2014 Adj10 809 17,47812/31 Closed to income summary 17,478 0

Account: Interest Revenue Acct # 820Date Explanation Ref. Debit Credit Balance

11/30 Balance 3,150

12/31 Interest accrued Adj8 1,374 4,52412/31 Closed to income summary 4,524 0

Account: Gain on Disposal of Plant Assets Acct # 826Date Explanation Ref. Debit Credit Balance

Account: Interest Expense Acct # 905Date Explanation Ref. Debit Credit Balance

11/30 Balance 24,57012/31 Accrued interest Adj7 11,556 36,12612/31 Accrued interest on notes receivable Adj8 1,500 37,62612/31 Closed to income summary 37,626 0

Account: Loss on Disposal of Plant Assets Acct # 921Date Explanation Ref. Debit Credit Balance

12/31 Loss on Disposal of truck lift 500 50012/31 Closed to income summary 500 0

Account: Income Tax Expense Acct # 999Date Explanation Ref. Debit Credit Balance

11/30 Balance 112,00012/31 Income Tax Expense for 2014 Adj12 15,413 127,41312/31 Closed to income summary 127,413 0

Rockford CorporationTrial Balance Adjusting Entries

December 31, 2014

Account Titles Debit Credit Debit CreditCash 237,753Petty Cash 225Accounts Receivable 275,280Allowance for Doubtful Accounts 880 110976Notes Receivable 104,200Interest Receivable 1374Inventory 531,960 554930 531960Supplies 3,680 2850Prepaid Insurance 11,020 5820Prepaid Rent 25,410 22610Other Assets 160,000Land 99,650Buildings 306,000

73,040 18920Equipment 38,900

13,200 5620Trucks 70,500

34,990 12550Notes Payable 15,000Accounts Payable 175,740 809Salaries and Wages Payable 4416FICA Taxes Payable 7,770 860Income Taxes PayableFederal Withholding Taxes Payable 9,663 1036State Withholding Taxes Payable 4,418 218FUTA Taxes Payable 400SUTA Taxes Payable 2,600Interest Payable 11520Dividends Payable 8,280Notes Payable (LT Liability) 113,000Bonds Payable 275,000Discount on Bonds Payable 6,400 1536Common Stock 207,000Paid-in Cap. In Excess of Stated Value 292,400Retained Earnings 362,748Treasury Stock 125,610Dividends 8,280Income Summary 531960 554930Sales Revenue 5,640,052Sales Returns and Allowances 14,060Sales Discounts 77,181Purchases 3,962,380




Purchase Returns and Allow. 29,070Purchase Discounts 69,226Freight-in 22,820Advertising Expense 7,678Bad Debt Expense 110976Supplies Expense 1,608 2850Freight-out 19,490Miscellaneous Expense 0 1455Depreciation Expense 350 37090Insurance Expense 4365Salaries and Wages Expense 986,652 6100Rent Expense 22610Payroll Tax Expense 86,801 430Utilities Expense 16,669 809Interest Revenue 3,150 1374Gain on Disposal of Plant AssetsInterest Expense 24,570 13056Loss on Disposal of Plant Assets 500Income Tax Expense 112,000

Totals 7,337,627 7,337,627 1288005 1288005Income Tax Expense 15413Income Taxes Payable 15413

Net Income

Totals 7,337,627 7,337,627 1303418 1303418

Adjusted Trial Balance Income Statement Balance Sheet

Debit Credit Debit Credit Debit Credit237753 237753

225 225275280 275280

111856 111856104200 104200

1374 1374554930 554930

830 8305200 52002800 2800

160000 16000099650 99650

306000 30600091960 91960

38900 3890018820 18820

70500 7050047540 4754015000 15000

176549 1765494416 44168630 8630

10699 106994636 4636

400 4002600 2600

11520 115208280 8280

113000 113000275000 275000

4864 4864207000 207000292400 292400362748 362748

125610 1256108280 8280

22970 229705640052 5640052

14060 1406077181 77181

3962380 3962380

29070 2907069226 69226

22820 228207678 7678

110976 1109764458 4458

19490 194901455 1455

37440 374404365 4365

992752 99275222610 2261087231 8723117478 17478

4524 4524

37626 37626500 500

112000 112000

7528896 752889615413 15413

15413 15413

217929 217929

7544309 7544309 5765842 5765842 1996396 1996396

Schedules

Page 25

Schedule of Accounts Receivable

4904026770

Swanson Brother's Construction 24650A & B Hardware 7920Trudy's Plumbing 55770

53080Beverley's Building Products 13150

44900Total Accounts Receivable 275280

Schedule of Accounts Payable

Phoenix Plastics 48330Business Basics, Inc. 5500Edward's Plumbing Supplies, Inc. 40820

230063940

Ron & Rod's Plumbing Products 14850Northern Electric Co. 530City of Rockford 279Total Accounts Payable 176549

Boecker BuildersThe Pott's Company

Coconino Contractors, Inc.

Bilder Construction Company

DeKalb TransportOxenford Copperworks

Subsidiary Ledgers

Page 26

Accounts Receivable Subsidiary Ledger


11/30 Balance 62,92012/8 1050 & 1071 29,000 33,92012/11 1071 33,920 012/12 1207 24,730 24,73012/29 Sale of materials on accounts 1210 49,040 73,77012/30 Received payment for 1207 24,730 49,040

Account: The Potts Company Acct # 122Date Explanation Ref. Debit Credit Balance

11/30 Balance 50,30012/4 1128 50,300 012/11 1206 31,450 31,45012/15 1206 4,680 26,770

Account: Swanson Brothers Construction Acct # 133Date Explanation Ref. Debit Credit Balance

11/30 Balance 24,05012/1 1120 24,050 012/30 Purchase of supplies of account 1211 24,650 24,650

Account: A & B Hardware Acct # 143Date Explanation Ref. Debit Credit Balance

12/17 1208 7,920 7,920

Boecker Builders

Subsidiary Ledgers

Page 27

Account: Trudy's Plumbing Acct # 155Date Explanation Ref. Debit Credit Balance

11/30 Balance 15,10012/8 1204 29,300 44,40012/10 1106 15,100 29,30012/10 1205 28,850 58,15012/12 1204 29,300 28,85012/18 1205 28,850 012/31 Sold materials on account 1212 55,770 55,770


11/30 Balance 27,80012/4 1203 10,300 38,10012/8 1091 27,800 10,30012/18 1209 42,780 53,080

Account: Rankin Plumbing Corp. Acct # 166Date Explanation Ref. Debit Credit Balance

11/30 Balance 74,35012/5 1129 74,350 0

Account: Beverley's Building Products Acct # 175Date Explanation Ref. Debit Credit Balance

11/30 Balance 14,00012/5 1201 13,150 27,15012/26 Converted to 12%, 6-month note 14,000 13,150

Account: Acct # 180

Coconino Contractors, Inc.

Bilder Construction Company

Subsidiary Ledgers

Page 28

Date Explanation Ref. Debit Credit Balance11/30 Balance 45,20012/3 1202 44,900 90,10012/17 1120 45,200 44,900


11/30 Balance 3,70012/3 Write-Off 780 3,700 0

Account: Acct # Date Explanation Ref. Debit Credit Balance

Balance

Account: Acct # Date Explanation Ref. Debit Credit Balance

1/1 Balance

Accounts Payable Subsidiary LedgerAccount: Phoenix Plastics Acct # 14

Date Explanation Ref. Debit Credit Balance11/30 Balance 17,45012/5 313 10,700 6,75012/8 1/10, n/30 316 52,700 59,45012/9 299 6,750 52,700

Iwanaga Plumbing and Heating

Subsidiary Ledgers

Page 29

12/16 316 52,700 012/22 1/10, n/30 319 48,330 48,330

Account: Business Basics, Inc. Acct # 16Date Explanation Ref. Debit Credit Balance

12/19 Balance 318 5,500 5,500

Account: Edward's Plumbing Supplies, Inc. Acct # 18 Date Explanation Ref. Debit Credit Balance

11/30 Balance 20,05012/2 n/60 315 24,320 44,37012/15 315 3,550 40,820


12/22 n/30 J9 2,300 2,300


11/30 Balance 26,40012/2 280 26,400 012/30 1/10, n/30 320 63,940 63,940

DeKalb Transport

Oxenford Copperworks

Subsidiary Ledgers

Page 30

Account: Smith Pipe Company Acct # 39Date Explanation Ref. Debit Credit Balance

11/30 Balance 38,10012/10 314 38,100 012/17 1/15, n/60 317 50,800 50,80012/31 Discount 508 50,29212/31 Payment 50,292 0

Account: Ron & Rod's Plumbing Products Acct # 44Date Explanation Ref. Debit Credit Balance

11/30 Balance 14,850


11/30 Balance 10,00012/5 312 10,000 0

Account: Northern Electric Co. Acct # 58Date Explanation Ref. Debit Credit Balance

12/31 Utility Services through 12/2015 530 530

Account: City of Rockford Acct # 59Date Explanation Ref. Debit Credit Balance

12/31 Utility Services through 12/2015 279 279

Khatan Steel Corp.

Rockford CorporationIncome Statement

For Year End December 31, 2014

Sales Sales Revenue $5,640,052.00 Less: Purchase Returns and Allowances $14,060.00 Purchase Discounts $77,181.00 $91,241.00 Net Sales $5,548,811.00Cost of Goods Sold $3,863,934.00Gross Profit $1,684,877.00

Operational Expenses Selling Expenses Advertising Expense $7,678.00 Supplies Expense $4,458.00 Freight-out $19,490.00Rent Expense $22,610.00 $54,236.00

Administrative Expenses Bad Debt Expense $110,976.00 Depreciation Expense $37,440.00 Insurance Expense $4,365.00 Salaries and Wages Expense $992,752.00 Miscellaneous Expense $1,455.00 Payroll Tax Expense $87,231.00 Utilities Expense $17,478.00 $1,251,697.00Total Expenses $1,305,933.00Income from Operations $378,944.00Other Revenues/Gains Interest Revenue $4,524.00 $4,524.00

$383,468.00Other Expenses/Losses Interest Expense $37,626.00 Loss on Disposal of Plant Assets $500.00 $37,126.00Income Before Income Tax $346,342.00 Income Tax Expense $127,413.00 $127,413.00Net Income $218,929.00Earnings Per Share $39.09

Rockford CorporationStatement of Retained Earnings

For The Year Ended December 31, 2014

Retained Earnings at 1/1/14 $362,748.00Plus: Net Income $217,929.00

$580,677.00Less: Dividends -$8,280.00Retained Earnings at 12/31/14 $588,957.00

Rockford CorporationBalance Sheet

At December 31, 2014

AssetsCurrent Assets Cash and Cash Equivalents $237,978.00 Accounts Receivable $275,280.00 Less: Allowance for Doubtful Accounts -$111,856.00 $163,424.00 Notes Receivable $104,200.00 Interest Receivable $1,374.00 Inventory $554,930.00 Supplies $830.00 Prepaid Insurance $5,200.00 Prepaid Rent $2,800.00 Other Assets $160,000.00Total Current Assets $1,230,736.00

Property, Plants, EquipmentLand $99,650.00Buildings $306,000.00

-$91,960.00 214,040.00Equipment $38,900.00

-$18,820.00 20,080.00Trucks $70,500.00

-$47,540.00 22,960.00 $257,080.00Total Property, Plants, Equipment $356,730.00 Total Assets $1,587,466.00

Liabilities & Shareholder's EquityCurrent LiabilitiesNotes Payable $15,000.00Accounts Payable $176,549.00Salaries and Wages Payable $4,416.00FICA Taxes Payable $8,630.00Income Taxes Payable $15,413.00Federal Withholding Taxes Payable $10,699.00State Withholding Taxes Payable $4,636.00FUTA Taxes Payable $400.00SUTA Taxes Payable $2,600.00Interest Payable $11,520.00Dividends Payable $8,280.00Total Current Liabilities $258,143.00

Long-Term LiabilitiesNotes Payable (LT Liability) $113,000.00Bonds Payable $275,000.00Discount on Bonds Payable -$4,864.00 $270,136.00Total Long-Term Liabilities $383,136.00Total Liabilities $641,279.00

Shareholder's EquityCommon Stock $207,000.00Paid-in Cap. In Excess of Stated Value $292,400.00Retained Earnings $580,677.00Less: Dividends -$8,280.00 Treasury Stock -$125,610.00 -133,890.00Total Shareholder's Equity $946,187.00 Total Liabilities and Shareholder's Equity $1,587,466.00




Rockford CorporationPost Closing Trial Balance

For Year Ending December 31, 2014

Account Titles Debit CreditCash 237,753Petty Cash 225Accounts Receivable 275,280Allowance for Doubtful Accounts 111,856Notes Receivable 104,200Interest Receivable 1,374Inventory 554,930Supplies 830Prepaid Insurance 5,200Prepaid Rent 2,800Other Assets 160,000Land 99,650Buildings 306,000

91,960Equipment 38,900

18,820Trucks 70,500

47,540Notes Payable 15,000Accounts Payable 176,549Salaries and Wages Payable 4,416FICA Taxes Payable 8,630Income Taxes Payable 15,413Federal Withholding Taxes Payable 10,699State Withholding Taxes Payable 4,636FUTA Taxes Payable 400SUTA Taxes Payable 2,600Interest Payable 11,520Dividends Payable 8,280Notes Payable (LT Liability) 113,000Bonds Payable 275,000Discount on Bonds Payable 4,864Common Stock 207,000Paid-in Cap. In Excess of Stated Value 292,400Retained Earnings 580,677Treasury Stock 125,610Dividends 8,280

Totals 1,996,396 1,996,396




Documents

Ater, Rockford Project, BUA202