systems understanding aid

Solution - Main Transaction Set - Transactions List A

The next 23 pages (pages 56-78) are the solutions to the Systems Understand Aid main transaction set fortransactions list A. Additional transaction sets are provided later in this manual . See page 234 for the documentsolutions summary page. Illustrations of completed documents for the main transaction set for transactionslist A are included on pages 235-242. See page 259 for a description of the filing system.

2009 2008 CURRENT ASSETS Cash $103,141.67 $11,025.19 Accounts receivable - net 42,506.08 7,814.19 Inventory 192,593.00 101,681.00 Marketable securities 24,000.00 0.00 Total current assets 362,240.75 120,520.38

FIXED ASSETS - Net of accumulated depreciation 215,921.00 239,105.50

Total assets $578,161.75 $359,625.88

CURRENT LIABILITIES Accounts payable $8,767.15 $11,279.35 Payroll taxes withheld and payable 4,262.22 3,284.54 Federal income taxes payable 51,429.77 29,797.00 Interest payable 201.37 0.00 Total current liabilities 64,660.51 44,360.89

NOTE PAYABLE 70,000.00 0.00 Total liabilities 134,660.51 44,360.89

STOCKHOLDERS' EQUITY Common stock 225,000.00 225,000.00 Retained earnings 218,501.24 90,264.99 Total stockholders' equity 443,501.24 315,264.99

Total liabilities and stockholders' equity $578,161.75 $359,625.88

SOLUTION - MAIN TRANSACTION SET TRANSACTIONS LIST A

WAREN SPORTS SUPPLY

LIABILITIES & STOCKHOLDERS' EQUITY

ASSETS

AT DECEMBER 31, 2009 AND 2008BALANCE SHEET

56


REVENUE Sales $1,592,545.00 Less: Sales returns and allowances 61,111.00 Sales discounts taken 15,405.82 Net sales 1,516,028.18COST OF GOODS SOLD Beginning inventory 101,681.00 Net purchases 1,094,252.80 Freight-in 24,680.94 Goods available for sale 1,220,614.74 Less: Ending inventory 192,593.00

Cost of goods sold 1,028,021.74

GROSS MARGIN 488,006.44

OPERATING EXPENSES Rent expense 57,600.00 Advertising expense 22,155.00 Office supplies expense 5,621.45 Depreciation expense 35,109.50 Wages and salaries 141,563.97 Payroll taxes 11,562.27 Bad debt expense 6,064.11 Other operating expense 29,287.75

Total operating expenses 308,964.05

Operating income 179,042.39

OTHER INCOME - Miscellaneous income 825.00

OTHER EXPENSE - Interest expense 201.37

INCOME BEFORE TAXES 179,666.02

FEDERAL INCOME TAXES 51,429.77

NET INCOME 128,236.25

RETAINED EARNINGS - Beginning of year 90,264.99

RETAINED EARNINGS - End of year $218,501.24

WAREN SPORTS SUPPLYSTATEMENT OF INCOME AND RETAINED EARNINGS

For the Year Ended December 31, 2009

57


CUST AMOUNT AGE IN DAYSNO. CUSTOMER DUE CURRENT 31-60 61-90 OVER 90

408 Branch College 1,200.00 $1,200.00409 Univ. of S. Iowa 17,924.00 17,924.00410 E. Wisconsin Univ. 28,297.00 8,392.00 19,905.00 0.00

TOTAL $47,421.00 $26,316.00 $19,905.00 $0.00 $1,200.00NF

VEND. AMOUNTNO. NAME PAYABLE

253 Chicago Office Supply $5,117.15261 Gillett Consulting 3,650.00

TOTAL $8,767.15 NF

ACCUM. NET ASSET COST DEPREC. BOOK VALUE

Office furniture $50,750.00 $50,750.00 $0.00 Delivery trucks 69,255.00 34,627.50 34,627.50 Inventory handling system 200,660.00 30,099.00 170,561.00 High-speed copier 7,367.00 736.70 6,630.30 Computers 4,558.00 455.80 4,102.20

TOTALS $332,590.00 $116,669.00 $215,921.00NF

DECEMBER 31, 2009

ACCOUNTS PAYABLE TRIAL BALANCEDECEMBER 31, 2009

WAREN SPORTS SUPPLYFIXED ASSET TRIAL BALANCE

WAREN SPORTS SUPPLYACCOUNTS RECEIVABLE AGED TRIAL BALANCE

DECEMBER 31, 2009

WAREN SPORTS SUPPLY

60


ACCT. NO. ACCOUNT TITLE DEBIT CREDIT

ASSETS10100 Cash 103,141.6710200 Accounts receivable 47,421.0010300 Allowance for doubtful accounts 4,914.9210400 Inventory 192,593.0010600 Marketable securities 24,000.0010800 Fixed assets 332,590.0010900 Accumulated depreciation 116,669.0011000 Notes receivable

LIABILITIES20100 Accounts payable 8,767.1520300 Federal income taxes withheld 1,824.4420400 State unemployment taxes payable 92.1720500 Federal unemployment taxes payable 27.3120600 F.I.C.A. taxes payable 2,318.3020700 Federal income taxes payable 51,429.7720900 Interest payable 201.3721000 Notes payable 70,000.00

STOCKHOLDERS' EQUITY26000 Common stock 225,000.0029000 Retained earnings 218,501.24

------------------------- ------------------------- TOTALS $699,745.67 $699,745.67

============= =============RK

WAREN SPORTS SUPPLYPOST-CLOSING TRIAL BALANCE

December 31, 2009

62


Bank GeneralStatement Ledger

Unadjusted balance, 12-31-09 $113,376.53 $103,169.17

Add: Deposit in transit - Dec. 23 10,000.00Deposit in transit - Dec. 23 10,240.00

Deduct: Outstanding checksCk. #1118 1,985.21Ck. #1143 4,800.00Ck. #1152 521.25Ck. #1153 15,366.40Ck. #1154 2,925.24Ck. #1155 1,924.90Ck. #1156 1,601.86Ck. #1157 1,350.00

(30,474.86)Adjustments:

Bank service charge (27.50)

Adjusted balance, 12-31-09 $103,141.67 $103,141.67

Journal Entry - December 31, 2009

Acct. No. Debit Credit41000 Other operating expense $27.5010100 Cash $27.50

WAREN SPORTS SUPPLYBANK RECONCILIATION

December 31, 2009

59

WAREN SPORTS SUPPLY YEAR-END WORKSHEET (Accounts with no activity in this worksheet December 31, 2009 are excluded in this solution.)

ACCT ACCOUNTNO. TITLE

DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

ASSETS10100 Cash 11,025.19 103,141.67 103,141.67 103,141.6710200 Accounts receivable 11,065.00 47,421.00 47,421.00 47,421.0010300 Allowance for doubtful accounts 3,250.81 1,149.19 6,064.11 4,914.92 4,914.9210400 Inventory 101,681.00 101,681.00 90,912.00 0.00 192,593.00 192,593.0010600 Marketable securities 24,000.00 24,000.00 24,000.0010800 Fixed assets 320,665.00 332,590.00 332,590.00 332,590.0010900 Accumulated depreciation 81,559.50 81,559.50 35,109.50 116,669.00 116,669.00

LIABILITIES20100 Accounts payable 11,279.35 8,767.15 8,767.15 8,767.1520300 Federal income taxes withheld 1,326.76 1,824.44 1,824.44 1,824.4420400 State unemployment taxes payable 281.17 92.17 92.17 92.1720500 Federal unemployment taxes payable 83.31 27.31 27.31 27.3120600 F.I.C.A. taxes payable 1,593.30 2,318.30 2,318.30 2,318.3020700 Federal incomes taxes payable 29,797.00 51,429.77 51,429.77 51,429.7720900 Interest payable 0.00 201.37 201.37 201.3721000 Notes payable 70,000.00 70,000.00 70,000.00

STOCKHOLDERS' EQUITY26000 Common stock 225,000.00 225,000.00 225,000.00 225,000.0029000 Retained earnings 90,264.99 90,264.99 90,264.99 90,264.99

REVENUE AND GROSS PROFIT30100 Sales 1,592,545.00 1,592,545.00 1,592,545.0030200 Sales returns and allowances 61,111.00 61,111.00 61,111.0030300 Sales discounts taken 15,405.82 15,405.82 15,405.8230400 Cost of goods sold 1,028,021.74 1,028,021.74 1,028,021.7430500 Purchases 1,130,295.00 1,130,295.00 0.0030600 Purchases returns and allowances 19,445.00 19,445.00 0.0030700 Purchases discounts taken 16,597.20 16,597.20 0.0030800 Freight-in 24,680.94 24,680.94 0.0031200 Miscellaneous revenue 825.00 825.00 825.00

EXPENSES40100 Rent expense 57,600.00 57,600.00 57,600.0040200 Advertising expense 22,155.00 22,155.00 22,155.0040300 Office supplies expense 5,621.45 5,621.45 5,621.4540400 Depreciation expense 35,109.50 35,109.50 35,109.5040500 Wages and salaries expense 141,563.97 141,563.97 141,563.9740600 Payroll tax expense 11,562.27 11,562.27 11,562.2740700 Federal income tax expense 51,429.77 51,429.77 51,429.7740800 Interest expense 201.37 201.37 201.3740900 Bad debt expense 6,064.11 6,064.11 6,064.1141000 Other operating expense 29,287.75 29,287.75 29,287.75

Sub-totals 1,465,133.75 1,593,370.00 699,745.67 571,509.42 Net Income (Loss) -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- 128,236.25 128,236.25 TOTALS 444,436.19 444,436.19 2,109,266.06 2,109,266.06 1,247,780.69 1,247,780.69 2,164,879.42 2,164,879.42 1,593,370.00 1,593,370.00 699,745.67 699,745.67

12/31/2008POST CLOSINGTRIAL BALANCE

12/31/2009UNADJUSTED

TRIAL BALANCEBALANCE

SHEETADJUSTMENTS ADJUSTED

TRIAL BALANCEINCOME

STATEMENT

61

Solution -Main Transaction Set -Transactions List A

WAREN SPORTS SUPPLY GENERAL JOURNAL December, 2009

ACCT.DATE NO. EXPLANATION POST DEBIT CREDIT

1Dec. 22 10300 Allowance for doubtful accounts 3 2,900.00

10200 Accounts receivable 3 2,900.00

To write off uncollectible Stevenson College account RK

2Dec. 31 41000 Other operating expense 3 27.50

10100 Cash 3 27.50

To record December bank service charges

3Dec. 31 40600 Payroll tax expense 3 1,278.63

20600 F I C A payable 3 1 159 15


20600 F.I.C.A. payable 3 1,159.1520400 State unemployment taxes payable 3 92.1720500 Federal unemployment taxes payable 3 27.31

To record December payroll taxes

4Dec. 31 40400 Depreciation expense 3 35,109.50

10900 Accumulated depreciation 3 35,109.50

To record 2009 depreciation

5Dec. 31 40800 Interest expense 3 201.37

20900 Interest payable 3 201.37

To accrue interest on note payable (70,000 X 15/365 X .07)

6Dec. 31 40900 Bad debt expense 3 6,064.11

10300 Allowance for doubtful accounts 3 6,064.11

To record 2009 provision for bad debts

74

7Dec. 31 30400 Cost of goods sold 3 1,028,021.74

30600 Purchases returns and allowances 3 19,445.0030700 Purchases discounts taken 3 16,597.2010400 Inventory 3 90,912.00 0.0030500 Purchases 3 1,130,295.0030800 Freight-in 3 24,680.94

To adjust inventory (to reflect results of12-31-09 physical inventory) and record costof goods sold

8Dec. 31 40700 Federal income tax expense 3 51,429.77

20700 Federal income taxes payable 3 51,429.77

To record 2009 federal income tax provision

9Dec. 31 30100 Sales 3 1,592,545.00

31200 Miscellaneous revenue 3 825.0030200 Sales returns and allowances 3 61,111.0030300 Sales discounts taken 3 15,405.8230400 Cost of goods sold 3 1,028,021.7428000 Income summary 3 488 831 44


28000 Income summary 3 488,831.44

To close revenue and gross profitaccounts to income summary

10Dec. 31 28000 Income summary 3 360,595.19

40100 Rent expense 3 57,600.0040200 Advertising expense 3 22,155.0040300 Office supplies expense 3 5,621.4540400 Depreciation expense 3 35,109.5040500 Wages and salaries expense 3 141,563.9740600 Payroll tax expense 3 11,562.2740700 Federal income tax expense 3 51,429.7740800 Interest expense 3 201.3740900 Bad debt expense 3 6,064.1141000 Other operating expense 3 29,287.75

To close expense accounts to income summary

11Dec. 31 28000 Income summary 3 128,236.25

29000 Retained earnings 3 128,236.25

To close income summary to retained earnings

75

SALES JOURNAL DECEMBER

Inv. or Subs. Subs. CreditCr. Memo Acct. Post Acct. Rec. Sales Returns Sales

Date Customer Number No. G/L 10200 G/L 30200 G/L 30100Dec. 2 Rosemont University 727 406 3 4,174.00 4,174.00Dec. 7 Clayborn University 728 407 3 7,252.00 7,252.00Dec. 9 E. Wisconsin University 729 410 3 21,872.00 21,872.00Dec. 13 Branch College 730 408 3 1,656.00 1,656.00Dec. 19 Univ. of S. Iowa 731 409 3 17,924.00 17,924.00Dec. 23 E. Wisconsin University CM 42 410 3 (3,480.00) 3,480.00

---------------------- ---------------------- ---------------------- Monthly totals 49,398.00 3,480.00 52,878.00

============ ============ ============3 3 3

Debit

Solution -Main Trans

CASH RECEIPTS JOURNAL DECEMBER

DEBIT CREDITCtrl Cash Sales Disc. A/R - G/L 10200 Sales Other G/L

Date Description Init G/L 10100 G/L 30300 Subs. A/C # Amt. Post G/L 30100 A/C # Amt. PostDec. 6 Gates University NF 5,891.00 5,891.00Dec. 9 Rosemont University NF 4,090.52 83.48 406 4,174.00 3Dec. 14 Hancock College NF 5,306.00 5,306.00Dec. 15 Clayborn University NF 7,106.96 145.04 407 7,252.00 3Dec. 15 Atwood Brothers NF 825.00 31200 825.00 3Dec. 16 First Amer. Bank 70,000.00 21000 70,000.00 3Dec. 22 Branch College 1,622.88 33.12 408 1,656.00 3Dec. 23 E. Wisconsin University 10,000.00 410 10,000.00 3Dec. 23 Wright University 10,240.00 10,240.00

------------------ ----------------- --------------------------------------------- ---------------- ---------------- Monthly totals 115,082.36 261.64 23,082.00 21,437.00 70,825.00

========== ========== ============ ========= ========= 3 RK 3 3 3

76

saction Set -Transactions List A

PURCHASES JOURNAL DECEMBER

Vendor Debit CreditInvoice Purchases Other G/L A/P - G/L 20100 Purch. Ret.

Date Vendor No. G/L 30500 Acc# Amount Post Subs. A/C# Amount Post G/L 30600Dec. 5 Velocity Sporting Goods 33965 36,115.00 252 36,115.00 3Dec. 12 Chicago Office Supply 2344 10800 7,367.00 253 7,367.00 3Dec. 22 Velocity Sporting Goods 34719 15,680.00 252 15,680.00 3Dec. 26 Chicago Office Supply 2378 40300 559.15 253 559.15 3Dec. 31 Chicago Office Supply 2423 10800 4,558.00 253 4,558.00 3

----------- ----------- ----------- Monthly totals 51,795.00 12,484.15 64,279.15

====== ====== ======3 3

Summary Totals10800 11,925.00 340300 559.15 3

CASH DISBURSEMENTS JOURNAL DECEMBER

Solution -Main T CASH DISBURSEMENTS JOURNAL DECEMBER

CREDIT DEBITCheck Cash Purch. Disc. A/P - G/L 20100 Freight-in Other G/L

Date No. Description G/L 10100 G/L 30700 Subs. A/C # Amt. Post G/L 30800 A/C # Amt. PostDec. 7 1140 First Security Insurance 2,575.00 41000 2,575.00 3Dec. 12 1141 Chicago Office Supply 7,367.00 253 7,367.00 3Dec. 13 1142 Velocity Sporting Goods 35,392.70 722.30 252 36,115.00 3Dec. 13 1143 Worldwide Management 4,800.00 40100 4,800.00 3Dec. 14 1144 Board of Water and Light 1,360.25 41000 1,360.25 3Dec. 14 1145 Interstate Motor Freight 778.75 778.75Dec. 15 1146 Internal Revenue Service 3,523.23 20300 1,516.07 3

- - 20600 2,007.16 3Dec. 15 1147 Internal Revenue Service 14.82 20500 14.82 3Dec. 15 1148 State of Illinois 50.03 20400 50.03 3Dec. 15 1149-51 See Payroll JournalDec.23 1152 Interstate Freight 521.25 521.25Dec.29 1153 Velocity Sporting Goods 15,366.40 313.60 252 15,680.00 3Dec.31 1154-56 See Payroll JournalDec.31 1157 University Athletic News 1,350.00 40200 1,350.00 3

--------------- ----------------- ----------------- ---------------- --------------- Monthly totals 73,099.43 1,035.90 59,162.00 1,300.00 13,673.33

========= ========== ========== ========= =========3 RK 3 3 3

Transaction Set -Transactions List A

77

PAYROLL JOURNAL DECEMBER

EARNINGS DEDUCTIONS PAYMENT SubsRegular Regular Overtime Overtime Gross Pay F.I.C.A. Fed.Inc.Tax Net Pay Ck . Post

Date Employee Hours Pay Hours Pay G/L 40500 G/L 20600 G/L 20300 G/L 10100 No. RefD 15 R K 3 500 00 3 500 00 267 75 441 71 2 790 54 1149 3

Solution -Main Tra

Dec. 15 Ray Kramer 3,500.00 3,500.00 267.75 441.71 2,790.54 1149 3Jim Adams 88.00 1,848.00 5.77 181.76 2,029.76 155.28 272.48 1,602.00 1150 3Nancy Ford 88.00 1,496.00 1.23 31.37 1,527.37 116.83 86.19 1,324.35 1151 3

Dec. 31 Ray Kramer 3,700.00 3,700.00 283.05 491.71 2,925.24 1154 3Jim Adams 96.00 2,208.00 8.73 301.19 2,509.19 191.95 392.34 1,924.90 1155 3Nancy Ford 96.00 1,747.20 5.09 138.96 1,886.16 144.29 140.01 1,601.86 1156 3

---------------------- --------------- ------------------ --------------- ------------------- ------------------ Monthly totals 14,499.20 653.28 15,152.48 1,159.15 1,824.44 12,168.89

============ ========= ========== ========= =========== ==========3 3 3 3

78

nsaction Set -Transactions List A

GENERAL LEDGERDebit

10100 - CASH Journal Debit Credit BalanceOct. 1 Balance Forward 44,407.53Oct. 31 CR 110,395.64Oct. 31 CD 98,304.36Oct. 31 Net Wages and Salary PR 10,498.83Oct. 31 Bank Service Charge G 25.00 45,974.98Nov. 30 CR 82,113.56Nov. 30 CD 44,113.33Nov. 30 Net Wages and Salary PR 10,599.08Nov. 30 Bank Service Charge G 21.00 73,355.13Dec. 31 CR 115,082.36Dec. 31 CD 73,099.43Dec. 31 Net Wages and Salary PR 12,168.89Dec. 31 Bank Service Charge G 27.50 103,141.67

Debit Ctrl10200 - ACCOUNTS RECEIVABLE Journal Debit Credit Balance InitOct. 1 Balance Forward 49,451.00 NFOct. 31 S 86,714.00Oct. 31 CR 74,369.00 61,796.00 NFNov. 30 S 37,263.00Nov. 30 CR 75,054.00 24,005.00 NFDec. 22 G 2,900.00Dec. 31 S 49,398.00Dec. 31 CR 23,082.00 47,421.00 NF


10300 - ALLOWANCE FOR Credit DOUBTFUL ACCOUNTS Journal Debit Credit BalanceOct. 1 Balance Forward 1,750.81Dec. 22 G 2,900.00Dec. 31 G 6,064.11 4,914.92

Debit10400 - INVENTORY Journal Debit Credit BalanceJan. 1 Balance Forward 101,681.00Dec. 31 G 90,912.00 0.00 192,593.00

Debit10600 - MARKETABLE SECURITIES Journal Debit Credit BalanceOct. 1 Balance Forward 24,000.00

Debit Ctrl10800 - FIXED ASSETS Journal Debit Credit Balance InitOct. 1 Balance Forward 320,665.00 NFDec. 31 P 11,925.00 332,590.00 NF

63

GENERAL LEDGERCredit Ctrl

10900 - ACCUMULATED DEPN. Journal Debit Credit Balance InitOct. 1 Balance Forward 81,559.50 NFDec. 31 G 35,109.50 116,669.00 NF

Credit Ctrl20100 - ACCOUNTS PAYABLE Journal Debit Credit Balance InitOct. 1 Balance Forward 1,087.83 NFOct. 31 P 85,920.80Oct. 31 CD 82,372.83 4,635.80 NFNov. 30 P 27,938.09Nov. 30 CD 28,923.89 3,650.00 NFDec. 31 P 64,279.15Dec. 31 CD 59,162.00 8,767.15 NF

Credit 20300 - FED. INCOME TAXES W/H Journal Debit Credit BalanceOct. 1 Balance Forward 1,515.80Oct. 31 CD 1,515.80Oct. 31 PR 1,517.33 1,517.33Nov 30 CD 1,517.33Nov 30 PR 1,516.07 1,516.07Dec. 31 CD 1,516.07Dec. 31 PR 1,824.44 1,824.44


20400 - STATE UNEMPLOYMENT Credit TAXES PAYABLE Journal Debit Credit BalanceOct. 1 Balance Forward 0.00Oct. 31 G 44.98 44.98Nov. 30 CD 44.98Nov. 30 G 50.03 50.03Dec. 31 CD 50.03Dec. 31 G 92.17 92.17

20500 - FEDERAL UNEMPLOYMENT Credit TAXES PAYABLE Journal Debit Credit BalanceOct. 1 Balance Forward 0.00Oct. 31 G 13.33 13.33Nov. 30 CD 13.33Nov. 30 G 14.82 14.82Dec. 31 CD 14.82Dec. 31 G 27.31 27.31

64

GENERAL LEDGERCredit

20600 - F.I.C.A. TAXES PAYABLE Journal Debit Credit BalanceOct. 1 Balance Forward 1,745.62Oct. 31 CD 1,745.62Oct. 31 F.I.C.A. Withheld PR 995.38Oct. 31 Employer's Tax G 995.38 1,990.76Nov. 30 CD 1,990.76Nov. 30 F.I.C.A. Withheld PR 1,003.58Nov. 30 Employer's Tax G 1,003.58 2,007.16Dec. 31 CD 2,007.16Dec. 31 F.I.C.A. Withheld PR 1,159.15Dec. 31 Employer's Tax G 1,159.15 2,318.30

Credit20700 - FED. INCOME TAXES PAYABLE Journal Debit Credit BalanceOct. 1 Balance Forward 0.00Dec. 31 G 51,429.77 51,429.77

Credit20900 - INTEREST PAYABLE Journal Debit Credit BalanceOct. 1 Balance Forward 0.00Dec. 31 G 201.37 201.37

Credit21000 - NOTES PAYABLE Journal Debit Credit BalanceO t 1 B l F d 0 00


Oct. 1 Balance Forward 0.00Dec. 31 CR 70,000.00 70,000.00

Credit26000 - COMMON STOCK Journal Debit Credit BalanceOct. 1 Balance Forward 225,000.00

28000 - INCOME SUMMARY Journal Debit Credit BalanceDec. 31 G 488,831.44Dec. 31 G 360,595.19Dec. 31 G 128,236.25 0.00

Credit29000 - RETAINED EARNINGS Journal Debit Credit BalanceOct. 1 Balance Forward 90,264.99Dec. 31 G 128,236.25 218,501.24

65


30100 - SALES Journal Debit Credit BalanceOct. 1 Balance Forward 1,326,865.00Oct. 31 Credit Sales S 86,714.00Oct. 31 Cash Sales CR 36,607.00 1,450,186.00Nov. 30 Credit Sales S 60,277.00Nov. 30 Cash Sales CR 7,767.00 1,518,230.00Dec. 31 Credit Sales S 52,878.00Dec. 31 Cash Sales CR 21,437.00 1,592,545.00Dec. 31 G 1,592,545.00 0.00

Debit30200 - SALES RETURNS & ALLOW. Journal Debit Credit BalanceOct. 1 Balance Forward 34,617.00Nov. 30 S 23,014.00 57,631.00Dec. 31 S 3,480.00 61,111.00Dec. 31 G 61,111.00 0.00

Debit30300 - SALES DISCOUNTS TAKEN Journal Debit Credit BalanceOct. 1 Balance Forward 13,856.38Oct. 31 CR 580.36 14,436.74Nov. 30 CR 707.44 15,144.18Dec. 31 CR 261.64 15,405.82Dec. 31 G 15,405.82 0.00


Debit30400 - COST OF GOODS SOLD Journal Debit Credit BalanceDec. 31 G 1,028,021.74 1,028,021.74Dec. 31 G 1,028,021.74 0.00

Debit30500 - PURCHASES Journal Debit Credit BalanceOct. 1 Balance Forward 969,835.00Oct. 31 P 81,285.00 1,051,120.00Nov. 30 P 27,380.00 1,078,500.00Dec. 31 P 51,795.00 1,130,295.00Dec. 31 G 1,130,295.00 0.00

30600 - PURCHASES RETURNS Credit AND ALLOWANCES Journal Debit Credit BalanceOct. 1 Balance Forward 19,445.00Dec. 31 G 19,445.00 0.00

66


30700 - PURCHASES DISC. TAKEN Journal Debit Credit BalanceOct. 1 Balance Forward 13,388.00Oct. 31 CD 1,625.70 15,013.70Nov. 30 CD 547.60 15,561.30Dec. 31 CD 1,035.90 16,597.20Dec. 31 G 16,597.20 0.00

Debit30800 - FREIGHT-IN Journal Debit Credit BalanceOct. 1 Balance Forward 18,038.35Oct. 31 CD 2,985.60 21,023.95Nov. 30 CD 2,356.99 23,380.94Dec. 31 CD 1,300.00 24,680.94Dec. 31 G 24,680.94 0.00

Credit31200 - MISCELLANEOUS REVENUE Journal Debit Credit BalanceOct. 1 Balance Forward 0.00Dec. 31 CR 825.00 825.00Dec. 31 G 825.00 0.00

Debit 40100 - RENT EXPENSE Journal Debit Credit BalanceOct. 1 Balance Forward 43,200.00Oct 31 CD 4 800 00 48 000 00


Oct. 31 CD 4,800.00 48,000.00Nov. 30 CD 4,800.00 52,800.00Dec. 31 CD 4,800.00 57,600.00Dec. 31 G 57,600.00 0.00

Debit 40200 - ADVERTISING EXPENSE Journal Debit Credit BalanceOct. 1 Balance Forward 13,030.00Oct. 31 CD 4,525.00 17,555.00Nov. 30 CD 3,250.00 20,805.00Dec. 31 CD 1,350.00 22,155.00Dec. 31 G 22,155.00 0.00

Debit40300 - OFFICE SUPPLIES EXPENSE Journal Debit Credit BalanceOct. 1 Balance Forward 3,518.41Oct. 31 P 985.80 4,504.21Nov. 30 P 558.09 5,062.30Dec. 31 P 559.15 5,621.45Dec. 31 G 5,621.45 0.00

Debit40400 - DEPRECIATION EXPENSE Journal Debit Credit BalanceDec. 31 G 35,109.50 35,109.50Dec. 31 G 35,109.50 0.00

67

GENERAL LEDGERDebit Ctrl

40500 - WAGES AND SALARIES EXP. Journal Debit Credit Balance InitOct. 1 Balance Forward 100,281.22 NFOct. 31 PR 13,011.54 113,292.76 NFNov. 30 PR 13,118.73 126,411.49 NFDec. 31 PR 15,152.48 141,563.97 NFDec. 31 G 141,563.97 0.00

Debit40600 - PAYROLL TAX EXPENSE Journal Debit Credit BalanceOct. 1 Balance Forward 8,161.52Oct. 31 G 1,053.69 9,215.21Nov. 30 G 1,068.43 10,283.64Dec. 31 G 1,278.63 11,562.27Dec. 31 G 11,562.27 0.00

Debit 40700 - FED. INCOME TAX EXPENSE Journal Debit Credit BalanceDec. 31 G 51,429.77 51,429.77Dec. 31 G 51,429.77 0.00

Debit40800 - INTEREST EXPENSE Journal Debit Credit BalanceDec. 31 G 201.37 201.37Dec. 31 G 201.37 0.00

Debit


Debit40900 - BAD DEBT EXPENSE Journal Debit Credit BalanceDec. 31 G 6,064.11 6,064.11Dec. 31 G 6,064.11 0.00

Debit 41000 - OTHER OPERATING EXPENSE Journal Debit Credit BalanceOct. 1 Balance Forward 17,880.14Oct. 31 G 25.00 17,905.14Oct. 31 P 3,650.00 21,555.14Oct. 31 CD 1,985.21 23,540.35Nov. 30 G 21.00 23,561.35Nov. 30 CD 1,763.65 25,325.00Dec. 31 CD 3,935.25 29,260.25Dec. 31 G 27.50 29,287.75Dec. 31 G 29,287.75 0.00

68


406 ROSEMONT UNIVERSITY121 E. FrontLouisville, Kentucky 40202 CREDIT LIMIT: $125,000

DATE Description Debit Credit BalanceOct. 1 Balance Forward 0.00Oct. 6 Invoice # 722 29,018.00 29,018.00Oct. 14 Payment # 722 29,018.00 0.00Nov. 7 Invoice # 724 2,460.00 2,460.00Nov. 17 Payment # 724 2,460.00 0.00Dec. 2 Invoice # 727 4,174.00 4,174.00Dec. 9 Payment #727 4,174.00 0.00

407 CLAYBORN UNIVERSITY13210 S. UptonLogansport, Indiana 46947 CREDIT LIMIT: $125,000

DATE Description Debit Credit BalanceOct. 1 Balance Forward 0.00Dec. 7 Invoice # 728 7,252.00 7,252.00Dec. 15 Payment # 728 7,252.00 0.00

408 BRANCH COLLEGE242 W. Holt Rd.Trenton, Missouri 64683 CREDIT LIMIT: $100,000

DATE Description Debit Credit BalanceOct. 1 Balance Forward 46,551.00Oct. 7 Payment # 721 45,351.00 1,200.00Nov. 10 Invoice # 725 32,912.00 34,112.00Nov. 18 Payment # 725 32,912.00 1,200.00Dec. 13 Invoice # 730 1,656.00 2,856.00Dec. 22 Payment # 730 1,656.00 1,200.00

409 UNIVERSITY OF SOUTHERN IOWA13210 S. LoganDubuque, Iowa 52003 CREDIT LIMIT: $100,000

DATE Description Debit Credit BalanceOct. 1 Balance Forward 0.00Dec. 19 Invoice # 731 17,924.00 17,924.00

410 EASTERN WISCONSIN UNIVERSITY14123 W. SaginawMadison, Wisconsin 53702 CREDIT LIMIT: $75,000

DATE Description Debit Credit BalanceOct. 1 Balance Forward 0.00Nov. 14 Invoice # 726 24,905.00 24,905.00Nov. 21 Partial payment # 726 5,000.00 19,905.00Dec. 9 Invoice # 729 21,872.00 41,777.00Dec. 23 Return for credit - #CM 42 3,480.00 38,297.00Dec. 23 Partial payment # 729 10,000.00 28,297.00

411 STEVENSON COLLEGE2689 Industrial BoulevardChicago, Illinois 60614 CREDIT LIMIT: $75,000

DATE Description Debit Credit BalanceOct. 1 Balance Forward 2,900.00Oct. 24 Invoice # 723 57,696.00 60,596.00Nov. 7 Return for credit - #CM 41 23,014.00 37,582.00Nov. 7 Payment # 723 34,682.00 2,900.00Dec. 22 Wrote off a/c. as uncollectible 2,900.00 0.00

RK

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER

70


252 VELOCITY SPORTING GOODS 1285 Colgrove Ave. Pierre, SD 57501

TERMS: 2/10, Net 30 FREIGHT : Collect

DATE Description Debit Credit BalanceOct. 1 Balance Forward 0.00Oct. 5 Vendor Invoice # 32407 81,285.00 81,285.00Oct. 14 Check # 1112 81,285.00 0.00Nov. 3 Vendor invoice # 33371 27,380.00 27,380.00Nov. 13 Check # 1125 27,380.00 0.00Dec. 5 Vendor invoice # 33965 36,115.00 36,115.00Dec. 13 Check # 1142 36,115.00 0.00Dec. 22 Vendor Invoice #34719 15,680.00 15,680.00Dec. 29 Check # 1153 15,680.00 0.00

253 CHICAGO OFFICE SUPPLY 1441 E. Michigan Chicago, Illinois 60606

TERMS: Due on receipt of invoice FREIGHT: No Charge

DATE Description Debit Credit BalanceOct. 1 Balance Forward 1,087.83Oct. 7 Check # 1111 1,087.83 0.00Oct. 19 Vendor invoice # 2112 985.80 985.80Nov. 8 Check # 1124 985.80 0.00Nov. 21 Vendor invoice # 2275 558.09 558.09Nov. 23 Check # 1136 558.09 0.00Dec. 12 Vendor invoice # 2344 7,367.00 7,367.00Dec. 12 Check # 1141 7,367.00 0.00Dec. 26 Vendor Invoice # 2378 559.15 559.15Dec. 31 Vendor Invoice # 2423 4,558.00 5,117.15

261 GILLETT CONSULTING 5613 Lantern View Chicago, Illinois 60612

TERMS: Net 30 days

DATE Description Debit Credit BalanceOct. 1 Balance Forward 0.00Oct. 3 Vendor Invoice # 9884 3,650.00 3,650.00

ACCOUNTS PAYABLE SUBSIDIARY LEDGER

69


Pay Time Filing Withholding Effective ApprovedRate Unit Status Allowances Date By

Ray Kramer $3,400.00 semimonthly M 2 12/16/07 RK$3,500.00 semimonthly M 2 12/16/08 RK$3,700.00 semimonthly M 2 12/16/09 RK

Jim Adams $20.00 hourly S 2 12/16/07 RK$21.00 hourly S 2 12/16/08 RK$23.00 hourly S 2 12/16/09 RK

Nancy Ford $17.00 hourly M 3 10/01/09 Hire date, RK$18.20 hourly M 3 12/16/09 RK

Ray Kramer Soc.Sec.No. 365-73-2376417 Cherry Chicago, 60912 Phone No. 781-3565

4/6/98 Date of Termination2/15/1966 Occupation Manager

HOURS WORKED Federal Regular Overtime Gross Income

Paid Hours Hours Pay F.I.C.A. Tax 10-1-09 Balance forward 63,000.00 4,819.50 7,950.78

10-15-09 3,500.00 267.75 441.7110-30-09 3,500.00 267.75 441.71

Cumulative Annual Total 70,000.00 5,355.00 8,834.2011-13-09 3,500.00 267.75 441.7111-30-09 3,500.00 267.75 441.71

Cumulative Annual Total 77,000.00 5,890.50 9,717.6212-15-09 3,500.00 267.75 441.7112-31-09 3,700.00 283.05 491.71

Cumulative Annual Total 84,200.00 6,441.30 10,651.04 67,107.66

Employee's NameHome AddressEmployedDate of Birth

2,790.54

DATE

12-15-0912-31-09

10-15-09

PAY RATE HISTORY

EMPLOYEE EARNINGS SUBSIDIARY LEDGER

11-15-0911-30-09

Period Ending

2,790.54

61,391.882,790.542,790.54

10-31-09

NetPay

2,790.54

55,810.80

2,925.24

50,229.72

71


Soc.Sec.No.Employee's Name Phone No. 379-54-9833Home Address 2522 Longfellow, Chicago,60823 351-5874Employed 1/16/05 Date of TerminationDate of Birth 10/1/1980 Occupation Accounting Clerk

DATE HOURS WORKED Federal Period Regular Overtime Gross F.I.C.A. Income NetEnding Paid Hours Hours Pay Tax Pay

10-1-09 Balance forward 37,281.22 2,852.02 5,091.05 29,338.15

10-15-09 10-15-09 88.00 11.87 2,221.91 169.97 320.52 1,731.4210-31-09 10-30-09 88.00 8.75 2,123.63 162.46 295.95 1,665.22

Cumulative Annual Total 41,626.76 3,184.45 5,707.52 32,734.7911-15-09 11-13-09 80.00 12.88 2,085.72 159.55 286.47 1,639.7011-30-09 11-30-09 88.00 10.54 2,180.01 166.77 310.04 1,703.20

Cumulative Annual Total 45,892.49 3,510.77 6,304.03 36,077.6912-15-09 12-15-09 88.00 5.77 2,029.76 155.28 272.48 1,602.0012-31-09 12-31-09 96.00 8.73 2,509.19 191.95 392.34 1,924.90

Cumulative Annual Total 50,431.44 3,858.00 6,968.85 39,604.59

Soc.Sec.No.Employee's Name Phone No. 367-55-4832Home Address 351-5251Employed 10/01/09 Date of TerminationDate of Birth 5/22/1976 Occupation Clerk

DATE HOURS WORKED Federal Period Regular Overtime Gross Income NetEnding Paid Hours Hours Pay F.I.C.A. Tax Pay

10-1-09 Balance forward 0.00 0.00 0.00 0.00

10-15-09 10-15-09 48.00 816.00 62.42 7.02 746.5610-31-09 10-30-09 50.00 850.00 65.03 10.42 774.55

Cumulative Annual Total 1,666.00 127.45 17.44 1,521.1111-15-09 11-13-09 49.00 833.00 63.73 8.72 760.5511-30-09 11-30-09 60.00 1,020.00 78.03 27.42 914.55

Cumulative Annual Total 3,519.00 269.21 53.58 3,196.2112-15-09 12-15-09 88.00 1.23 1,527.37 116.83 86.19 1,324.3512-31-09 12-31-09 96.00 5.09 1,886.16 144.29 140.01 1,601.86

Cumulative Annual Total 6,932.53 530.33 279.78 6,122.42

1018 Whittier, Chicago, 60823

Jim Adams

Nancy Ford

EMPLOYEE EARNINGS SUBSIDIARY LEDGER

72


FIXED ASSET SUBSIDIARY LEDGER

Item Office Furniture Depreciation Method Straight-linePurch.From Chicago Office Supply Where Located OfficeEst Life 5 years Est. Salvage Value $ 0

Asset Record Depreciation Record Asset Date Debit Credit Balance Debit Credit Balance NBVSept. 30 03 50,750.00 50,750.00 50,750.00Dec. 31 03 5,075.00 5,075.00 45,675.00Dec. 31 04 10,150.00 15,225.00 35,525.00Dec. 31 05 10,150.00 25,375.00 25,375.00Dec. 31 06 10,150.00 35,525.00 15,225.00Dec. 31 07 10,150.00 45,675.00 5,075.00Dec. 31 08 5,075.00 50,750.00 0.00

Item Delivery Trucks Depreciation Method Straight-linePurch.From Dyckstra Ford Where Located Loading DockEst Life 5 years Est. Salvage Value $ 0

Asset Record Depreciation Record Asset Date Debit Credit Balance Debit Credit Balance NBVApr. 21 07 69,255.00 69,255.00 69,255.00Dec. 31 07 6,925.50 6,925.50 62,329.50Dec. 31 08 13,851.00 20,776.50 48,478.50Dec. 31 09 13,851.00 34,627.50 34,627.50

Item Inv. Handling System Depreciation Method Straight-linePurch.From Conveyor Systems, Inc. Where Located WarehouseEst Life 10 years Est. Salvage Value $ 0

Asset Record Depreciation Record Asset Date Debit Credit Balance Debit Credit Balance NBV

Jul. 5 08 200,660.00 200,660.00 200,660.00Dec. 31 08 10,033.00 10,033.00 190,627.00Dec. 31 09 20,066.00 30,099.00 170,561.00

Item High-Speed Copier Depreciation Method Straight-linePurch.From Chicago Office Supply Where Located OfficeEst Life 5 years Est. Salvage Value $ 0

Asset Record Depreciation Record Asset Date Debit Credit Balance Debit Credit Balance NBVDec. 12 09 7,367.00 7,367.00 7,367.00Dec. 31 09 736.70 736.70 6,630.30

Item Computers Depreciation Method Straight-linePurch.From Chicago Office Supply Where Located OfficeEst Life 5 years Est. Salvage Value $ 0

Asset Record Depreciation Record Asset Date Debit Credit Balance Debit Credit Balance NBVDec. 31 09 4,558.00 4,558.00 4,558.00Dec. 31 09 455.80 455.80 4,102.20

73

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