Case Week 7 Carrie Miller

Pleasant Breeze Fan CompanyTrial Balance

30-Nov-07

Debits Credits1020 Checking Account 68,126.611025 Payroll Checking1030 Petty Cash 200.001100 Accounts Receivable 21,274.751150 Allowance for Doubtful Accts 2,035.001160 Notes Receivable - Short Term1170 Office Supplies 6,520.001200 Fan Inventory 30,752.001400 Prepaid Expenses 10,800.001500 Land 40,000.001510 Building 150,000.001511 Acc Dep, Building 8,750.001515 Cars 74,000.00 1516 Acc Dep, Company Cars 46,000.001520 Office and Shop Equipment 8,400.00 1521 Acc Dep, Off/Shop Equip 840.002000 Accounts Payable

Warranty Payable 262.842100 Short Term Notes Payable 2300 Salary and Wages Payable2330 FITW Payable 1,454.532335 Social Security Taxes Payable 1,308.202337 Medicare Taxes Payable 305.962340 FUTA Payable 168.002360 SUTA Payable2700 Notes Payable - Long Term2800 Mortgage Payable 115,884.213920 Joe Black, Capital 270,500.413930 Joe Black, Withdrawals 88,000.00

4000 Fan Revenue 454,315.004050 Sales Returns / Allowances 5,200.004070 Sales Discounts 8,600.005000 Cost of Sales 272,952.005750 Car Ops and Maintenance 4,800.00 6000 Salary and Wages Expense 64,550.00 6100 Employer Tax Expense 12,626.156300 Telephone / Utilities Expense 6,000.006450 Office Supplies Expense6700 Travel Expense 20,100.006800 Postage and Freight 6,000.006850 Depreciation Expense 6950 Gain / Loss on Asset Sales6960 Interest Expense 2,659.806975 Warranty Expense 262.84

901,824.15 901,824.15

Pleasant Breeze Fan CompanyWorksheet31-Dec-07

Trial Balance Adjustments Adj. Trial Balance Income Statement Balance SheetDebits Credits Debits Credits Debits Credits Debits Credits Debits Credits

1020 Checking Account 69,741.41 69741.41 69741.411025 Payroll Checking 0.00 0.00 0.001030 Petty Cash 200.00 200.00 200.001100 Accounts Receivable 20,912.50 2318.75 18593.75 18593.751150 Allowance for Doubtful Accts 2,035.00 2318.75 818.38 534.63 534.631160 Notes Receivable - Short Term 3,237.50 3237.50 3237.501170 Office Supplies 6,520.00 6445.00 75.00 75.001200 Fan Inventory 18,744.42 308.00 18436.42 18436.421400 Prepaid Expenses 10,800.00 3900.00 6900.00 6900.001500 Land 40,000.00 40000.00 40000.001510 Building 150,000.00 150000.00 150000.001511 Acc Dep, Building 8,750.00 3500.00 12250.00 12250.001515 Cars 78,000.00 78000.00 78000.001516 Acc Dep, Company Cars 38,720.00 7990.00 46710.00 46710.001520 Office and Shop Equipment 8,400.00 8400.00 8400.001521 Acc Dep, Off/Shop Equip 840.00 3024.00 3,864.00 3,864.002000 Accounts Payable 8,370.00 8,370.00 8,370.002010 Warranty Payable 262.84 506.29 769.13 769.132100 Short Term Notes Payable 2300 Salary and Wages Payable 3685.68 3,685.68 3,685.682330 Federal Income Tax Payable 414.65 414.65 414.652335 Social Security Tax Payable 550.56 550.56 550.562337 Medicare Tax Payable 128.76 128.76 128.762340 FUTA Payable 182.40 6.00 188.40 188.402360 SUTA Payable 72.00 30.00 102.00 102.002700 Notes Payable - Long Term 25,200.00 25,200.00 25,200.002800 Mortgage Payable 115,636.32 115,636.32 115,636.323920 Joe Black, Capital 270,500.41 270,500.41 270,500.413930 Joe Black, Withdrawals 96,000.00 96000.00 96000.00

4000 Fan Revenue 493,016.25 493,016.25 493016.254020 Interest Revenue 144.68 3.60 148.28 148.284050 Sales Returns / Allowances 5,445.00 5445.00 5445.004070 Sales Discounts 9,095.25 9095.25 9095.255000 Cost of Sales 300,402.00 308.00 300710.00 300710.005750 Car Ops and Maintenance 4,800.00 4800.00 4800.006000 Salary and Wages Expense 82,900.00 4439.99 87339.99 87339.996100 Employer Tax Expense 14,116.33 375.66 14491.99 14491.996300 Telephone / Utilities Expense 6,710.00 6710.00 6710.006450 Office Supplies Expense 168.00 6445.00 6613.00 6613.00

6700 Travel Expense 21,195.00 21195.00 21195.006800 Postage and Freight 6,157.00 6157.00 6157.006850 Depreciation Expense 3,250.00 14514.00 17764.00 17764.006950 Gain / Loss on Asset Sales 2,970.00 2970.00 2970.006960 Interest Expense 3,142.65 530.12 3672.77 3672.776975 Professional & Bank Service Fees 560.00 560.00 560.007000 Warranty Expense 262.84 506.29 769.13 769.13

963,729.90 963,729.901165 Interest Receivable 3.60 3.60 3.602020 Interest Payable 530.12 530.12 530.127020 Insurance Expense 2700.00 2700.00 2700.007030 Warehouse Expense 1200.00 1200.00 1200.007040 Bad Debt Expense 818.38 818.38 818.38

34159.79 34159.79 982599.19 982599.19 493011.51 493164.53 489587.68 489434.66153.02 153.02

493164.53 493164.53 489587.68 489587.68

General Journal for Pleasant Breeze Fan Company

REQUIREMENT #1:

Prepare journal entries to record the December transactions in the General Journal below.

General JournalDate Description(Account Name) Debit Credit

1-Dec Merchandise Inventory 980.00 Accounts Payable, Grand Blanc Fans 980.00P.O. # 0512-001

1-Dec Merchandise Inventory 1848.00 Accounts Payable, Columbia Products 1848.00P.O. # 0512-002

1-Dec Merchandise Inventory 3570.00 Accounts Payable, Santa Ana Gales Fans 3570.00P.O. # 0512-003

1-Dec Merchandise Inventory 1100.00 Accounts Payable, Juarez Light Products 1100.00P.O. # 0512-004

1-Dec Mortgage Payable 247.89Interest Expense 482.85

Checking Account 730.74Mortgage Payment

3-Dec Accounts Receivable, Remodeler's Supply 7840.00 Sales 7840.00

Costs of Sales 5690.00 Merchandise Inventory 5690.00

4-Dec Accounts Payable, Columbia Products 294.00Accounts Payable, Juarez Light Products 55.00 Merchandise Inventory 349.00Inventory Received - Short Count

5-Dec Telephone / Utilities Expense 710.00 Checking Account 710.00$500 for utilities, $210 for Nov phone

7-Dec Payroll entries will be completed in Week 2. You will fund the payroll check account with a checkand record it to this journal as a total.

Payroll Checking 5760.41 Checking Account 5760.41Entry made in Week 2 - leave

8-Dec Accounts Receivable, Builder's Warehouse 13685.00 Sales 13685.00

Costs of Sales 9855.00 Merchandise Inventory 9855.00

8-Dec Depreciation Expense - Toyota 3250.00 Accum Dep - Toyota 3250.00Depreciate Toyota to day of trade

Accum Dep - Toyota 10530.00Gain / Loss on Asset Sales 2970.00 Checking Account 10500.00 Toyota Camry 24000.00Record sale of Toyota

Company Cars - 2006 Honda 28000.00 Checking Account 2800.00 Notes Payable 25200.00Purchase of Honda with down payment and note

9-Dec Accounts Receivable, Helpful Hardware Chain 10456.25 Sales 10456.25

Costs of Sales 7350.00 Merchandise Inventory 7350.00Record credit sale to Helpful Hardware

10-Dec Accounts Payable. Grand Blanc Fans 980.00 Merchandise Inventory 9.80 Checking Account 970.20Payment for PO 0512-001

12-Dec Merchandise Inventory 7600.00 Accounts Payable, Juarez Light Products 7600.00P.O. # 0512-005

14-Dec Accounts Receivable, Bowery Super Warehouse 6720.00 Sales 6720.00

Costs of Sales 4695.00 Merchandise Inventory 4695.00Record Sale to Bowery Super Warehouse

15-Dec Checking Account 7683.20Sales Discounts 156.80 Accounts Receivable, Remodeler's Supply 7840.00Invoice 12-0101

15-Dec FITW Payable 1454.53Social Security Taxes Payable 1308.20Medicare Taxes Payable 305.96 Checking Account 3068.69Pay Nov Payroll Taxes

15-Dec Accounts Payable, Columbia Products 1554.00Merchandise Inventory 31.08 Checking Account 1522.92Payment for PO 0512-002

19-Dec Checking Account 13411.30

Sales Discounts 273.70 Accounts Receivable, Builder's Warehouse 13685.00Received payment from Builder's Warehouse

20-Dec Accounts Payable, Santa Ana Gales Co. 3570.00 Merchandise Inventory 35.70 Checking Account 3534.30Payment for PO 0512-003

22-Dec Payroll entries will be made on a separate journal pageYou will fund the payroll check account with a checkand record it to this journal as a total.

22-Dec Payroll Checking 8622.08 Checking Account 8622.08

24-Dec Checking Account 10818.50 Accounts Receivable 10818.50Invoice 11-24

23-Dec Sales Returns and Allowances 245.00

Accounts Receivable, Bowery Super Warehouse 245.00Merchandise Inventory 140.00 Cost of Sales 140.00Bowery Super Warehouse return - did not return light kits

26-Dec Checking Account 3172.75Notes Receivable - Bowery 3237.50Sales Discount 64.75 Accounts Receivable - Bowery Super Warehouse 6475.00Bowery paid 1/2 of invoice and signed note for balance

30-Dec Professional Service Fees 400.00 Checking Account 400.00

31-Dec Accounts Payable, Juarez Light Products 1045.00 Checking Account 1045.00Only received 95 on 12/1 shipment,

31-Dec Merchandise Inventory 770.00 Accounts Payable 770.00Thomas Freight

31-Dec Travel Expense 430.00Office Supplies Expense 110.00Postage Expense 20.00 Checking Account 560.00

31-Dec Travel Expense 665.00Postage Expense 137.00Office Supplies Expense 58.00 Checking Account 860.00

31-Dec Joe Black, Drawing 8000.00 Checking Account 8000.00

Adjusting Entries General JournalDate Description(Account Name) Debit Credit

31-Dec Interest Expense 481.82 Interest Payable 481.82Mortgage Interest

31-Dec Interest Expense 48.30 Interest Payable 48.30Car Note Interest (ordinary interest)

31-Dec Interest Receivable 3.60 Interest Revenue 3.605 days interest on Bowry Note

31-Dec Insurance Expense 2700.00 Prepaid Expenses 2700.00Insurance Adjustment

31-Dec Office Supplies Expense 6445.00 Office Supplies (Prepaid) 6445.00Office Supplies Adjustment

31-Dec Warehouse Expenses 1200.00 Prepaid Expenses 1200.00Forklift Rent

31-Dec Salary Expense 4439.99 Salaries Payable 3685.68 FITW Payable 414.65 Social Security Taxes Payable 275.28 Medicare Taxes Payable 64.38Wages adjustment for second half of December- Wages

31-Dec Employer Tax Expense 375.66 Social Security Taxes Payable 275.28 Medicare Taxes Payable 64.38 FUTA Payable 6.00 SUTA Payable 30.00Wages adjustment for second half of December- Employer Payroll Taxes

Week 5 EntriesINVENTORY CORRECTIONS

31-Dec Cost of Sales 308.00 Inventory 308.00

ACCOUNT RECEIVABLE ENTRIES

31-Dec Allowance for Bad Debt 2318.75 Accounts Receivable 2318.75Write off Account

31-Dec Bad Debt Expense 818.38 Allowance for Bad Debt 818.38Bad Debt Adjustment

Week 6 Entries31-Dec Warranty Expense 506.29

General Ledger

In order by Account number. This column is the: This column is the:

Balance Sheet Income Statement

ASSETS:Account: Checking Account Account #: 1020 Account: Fan Revenue Account #: 4000

Balance BalanceDate Explanation Debit Credit Debit Credit Date Explanation Debit Credit Debit Credit

11/30 Beg Bal 68,126.61 11/30 Beg Bal 454,315.0012/1 730.74 67,395.87 12/3 7,840.00 462,155.0012/5 710.00 66,685.87 12/8 13,685.00 475,840.0012/7 5,760.41 60,925.46 12/9 10,456.25 486,296.2512/8 10,500.00 71,425.46 12/14 6,720.00 493,016.2512/8 2,800.00 68,625.46 12/31 closing 493,016.25 0.00

12/10 970.20 67,655.26 0.0012/15 7,683.20 75,338.4612/15 3,068.69 72,269.7712/15 1,522.92 70,746.85 Account: Interest Revenue Account #: 401012/19 13,411.30 84,158.15 Balance12/20 3,534.30 80,623.85 Date Explanation Debit Credit Debit Credit12/22 8,622.08 72,001.77 11/30 Beg Bal 0.0012/24 10,818.50 82,820.27 12/31 144.68 144.6812/26 3,172.75 85,993.02 12/31 Adjustment 3.60 148.2812/30 400.00 85,593.02 12/31 closing 148.28 0.0012/31 1,045.00 84,548.02 0.0012/31 560.00 83,988.0212/31 860.00 83,128.0212/31 8,000.00 75,128.02 Account: Sales Returns and Allowances Account #: 405012/31 5,371.29 69,756.73 Balance12/31 Interest on Checking 144.68 69,901.41 Date Explanation Debit Credit Debit Credit12/31 Bank Service Fees 160.00 69,741.41 11/30 Beg Bal 5,200.00

69,741.41 12/23 245.00 5,445.0069,741.41 12/31 closing 5,445.00 0.00 69,741.41 0.0069,741.41 0.00

Account: Payroll Checking Account #: 1025Balance Account: Sales Discounts Account #: 4070

Date Explanation Debit Credit Debit Credit Balance11/30 Beg Bal 0.00 Date Explanation Debit Credit Debit Credit12/10 5,760.41 5,760.41 11/30 Beg Bal 8,600.0012/10 5,760.41 0.00 12/15 156.80 8,756.8012/22 8,622.08 8,622.08 12/19 273.70 9,030.5012/22 8,622.08 0.00 12/26 64.75 9,095.2512/31 0.00 12/31 closing 9,095.25 0.00

0.00 0.00

Account: Cost of Sales Account #: 5000Account: Petty Cash Account #: 1030 Balance

Balance Date Explanation Debit Credit Debit CreditDate Explanation Debit Credit Debit Credit 11/30 Beg Bal 272,952.00

11/30 Beg Bal 200.00 12/3 5,690.00 278,642.00 200.00 12/8 9,855.00 288,497.00

200.00 12/9 7,350.00 295,847.0012/14 4,695.00 300,542.0012/23 140.00 300,402.00

Account: Accounts Receivable Account #: 1100 12/31 Adjustment 308.00 300,710.00Balance 12/31 closing 300,710.00 0.00

Date Explanation Debit Credit Debit Credit 0.0011/30 Beg Bal 21,274.7512/3 7,840.00 29,114.7512/8 13,685.00 42,799.75 Account: Car Ops and Maintenance Account #: 575012/9 10,456.25 53,256.00 Balance

12/14 6,720.00 59,976.00 Date Explanation Debit Credit Debit Credit12/15 7,840.00 52,136.00 Beg Bal 4,800.0012/19 13,685.00 38,451.00 12/31 4,800.00 0.0012/23 245.00 38,206.00 0.0012/24 10,818.50 27,387.5012/26 6,475.00 20,912.5012/31 Write-off Howell Construction 2,318.75 18,593.75 Account: Salary and Wages Expense Account #: 6000

18,593.75 BalanceDate Explanation Debit Credit Debit Credit

11/30 Beg Bal 64,550.00Account: Allowance for Doubtful Accounts Account #: 1150 12/7 7,250.00 71,800.00

Balance 12/22 11,100.00 82,900.00Date Explanation Debit Credit Debit Credit 12/31 Adjusting Entry 4,439.99 87,339.99

11/30 Beg Bal 2035.00 12/31 87,339.99 0.0012/31 Howell Construction 2,318.75 -283.75 0.0012/31 Adjustment 818.38 534.63

534.63Account: Employer Tax Expense Account #: 6100

BalanceAccount: Notes Receivable Account #: 1160 Date Explanation Debit Credit Debit Credit

Balance 11/30 Beg Bal 12,626.15 Date Explanation Debit Credit Debit Credit 12/7 590.63 13,216.78

11/30 Beg Bal 0.00 12/22 899.55 14,116.3312/26 3,237.50 3,237.50 12/31 Adjusting Entry 375.66 14,491.99

3,237.50 12/31 14,491.99 0.003,237.50 0.00

Account: Interest Receivable Account #: 1165 Account: Telephone Utilities Expense Account #: 6300Balance Balance

Date Explanation Debit Credit Debit Credit Date Explanation Debit Credit Debit Credit11/30 Beg Bal 0.00 11/30 Beg Bal 6,000.0012/31 Adjustment 3.60 3.60 12/10 500.00 6,500.00

3.60 12/10 210.00 6,710.0012/24 6,710.0012/31 6,710.00 0.00

Account: Office Supplies Account #: 1170 0.00Balance

Date Explanation Debit Credit Debit Credit11/30 Beg Bal 6,520.00 Account: Office Supplies Expense Account #: 645012/31 Adjustment 6,445.00 75.00 Balance

75.00 Date Explanation Debit Credit Debit Credit75.00 11/30 Beg Bal 0.00 75.00 12/31 168.00 168.00

12/31 Adjusting Entry 6,445.00 6,613.0012/31 6,613.00 0.00

Account: Fan Inventory Account #: 1200 0.00Balance

Date Explanation Debit Credit Debit Credit11/30 Beg Bal 30,752.00 Account: Travel Expense Account #: 670012/1 980.00 31,732.00 Balance12/1 1,848.00 33,580.00 Date Explanation Debit Credit Debit Credit12/1 3,570.00 37,150.00 11/30 Beg Bal 20,100.00 12/1 1,100.00 38,250.00 12/31 1,095.00 21,195.0012/3 5,690.00 32,560.00 12/31 21,195.00 0.0012/4 349.00 32,211.00 0.0012/8 9,855.00 22,356.00 0.0012/9 7,350.00 15,006.00

12/10 9.80 14,996.2012/12 7,600.00 22,596.20 Account: Postage and Freight Account #: 680012/14 4,695.00 17,901.20 Balance12/15 31.08 17,870.12 Date Explanation Debit Credit Debit Credit12/20 35.70 17,834.42 11/30 Beg Bal 6,000.00 12/23 140.00 17,974.42 12/31 157.00 6,157.0012/31 770.00 18,744.42 12/31 6,157.00 0.0012/31 Adjustment 308.00 18,436.42 0.00

18,436.4218,436.4218,436.42 Account: Depreciation Expense Account #: 6850

BalanceDate Explanation Debit Credit Debit Credit

Account: Prepaid Expenses Account #: 1400 11/30 Beg Bal 0.00 Balance 12/8 3,250.00 3,250.00

Date Explanation Debit Credit Debit Credit 12/31 Adjusting Entry 14,514.00 17,764.00

11/30 Beg Bal 10,800.00 12/31 17,764.00 0.0012/31 Adjustment 3,900.00 6,900.00 0.00

6,900.006,900.006,900.00 Account: Gain/Loss on Sale of Assets Account #: 6950


Account: Land Account #: 1500 11/30 Beg Bal 0.00Balance 12/7 2,970.00 2,970.00

Date Explanation Debit Credit Debit Credit 12/31 2,970.00 0.0011/30 Beg Bal 40,000.00 0.00

40,000.00 0.0040,000.0040,000.00

Account: Interest Expense Account #: 6960Balance

Account: Building Account #: 1510 Date Explanation Debit Credit Debit CreditBalance 11/30 Beg Bal 2,659.80

Date Explanation Debit Credit Debit Credit 12/1 482.85 3,142.6511/30 Beg Bal 150,000.00 12/31 Adjusting Entry 530.12 3,672.77

150,000.00 12/31 3,672.77 0.00150,000.00 0.00

150,000.00

Account: Professional & Bank Service Fees Account #: 6975Account: Accum Dep - Building Account #: 1511 Balance

Balance Date Explanation Debit Credit Debit CreditDate Explanation Debit Credit Debit Credit 11/30 Beg Bal 0.00

11/30 Beg Bal 8750.00 12/31 400.00 400.0012/31 Adjustment 3,500.00 12250.00 12/31 160.00 560.00

12250.00 12/31 560.00 0.0012250.00 0.00

Account: Company Cars Account #: 1515 Account: Warranty Expense Account #: 7000Balance Balance

Date Explanation Debit Credit Debit Credit Date Explanation Debit Credit Debit Credit11/30 Beg Bal 74,000.00 11/30 Beg Bal 262.8412/8 24,000.00 50,000.00 12/31 Adjustment 506.29 769.1312/8 28,000.00 78,000.00 12/31 769.13 0.00

78,000.00 0.00 0.00

78,000.00

Account: Insurance Expense Account #: 7020Account: Accum Dep - Company Cars Account #: 1516 Balance

Balance Date Explanation Debit Credit Debit CreditDate Explanation Debit Credit Debit Credit 11/30 Beg Bal 0.00

11/30 Beg Bal 46000.00 12/31 Adjustment 2,700.00 2,700.0012/8 3,250.00 49250.00 12/31 2,700.00 0.0012/8 10,530.00 38720.00 0.00

12/31 Adjustment 7,990.00 46710.0046710.00

Account: Warehouse Expense Account #: 7030Balance

Account: Office and Shop Equip Account #: 1520 Date Explanation Debit Credit Debit CreditBalance 11/30 Beg Bal 0.00

Date Explanation Debit Credit Debit Credit 12/31 Adjustment 1,200.00 1,200.0011/30 Beg Bal 8,400.00 12/31 1,200.00 0.00

8,400.00 0.008,400.008,400.008,400.00 Account: Bad Debt Expense Account #: 7040


Account: Accum Dep - Office and Shop Equip Account #: 1521 11/30 Beg Bal 0.00Balance 12/31 Adjustment 818.38 818.38

Date Explanation Debit Credit Debit Credit 12/31 818.38 0.0011/30 Beg Bal 840.00 0.0012/31 Adjustment 3,024.00 3864.00

3864.00 Account: Income Summary Account #: 3864.00 Balance3864.00 Date Explanation Debit Credit Debit Credit

12/31 revenue 493,164.53 493,164.5312/31 expenses 493,011.51 153.02

12/31 net income 153.02 0.00Account: Accounts Payable Account #: 2000 0.00 0.00


11/30 Beg Bal 0.0012/1 980.00 980.0012/1 1,848.00 2828.0012/1 3,570.00 6398.0012/1 1,100.00 7498.0012/4 294.00 7204.0012/4 55.00 7149.00

12/10 980.00 6169.0012/12 7,600.00 13769.0012/15 1,554.00 12215.0012/20 3,570.00 8645.0012/31 1,045.00 7600.00

LIABILITIES:

12/31 770.00 8370.008370.008370.008370.008370.00

Account: Warranty Payable Account #: 2010Balance

Date Explanation Debit Credit Debit Credit11/30 Beg Bal 262.8412/31 Adjustment 506.29 769.13

769.13

Account: Interest Payable Account #: 2020Bal ance

Date Explanation Debit Credit Debit Credit11/30 Beg Bal 0.0012/31 Adjustment 530.12 530.12

530.12

Account: Short Term Notes Payable Account #: 2100Balance

Date Explanation Debit Credit Debit Credit11/30 Beg Bal 0.00

0.000.000.000.00

Account: Salary and Wages Payable Account #: 2300


11/30 Beg Bal 0.0012/7 5,760.41 5760.4112/7 5,760.41 0.00

12/22 8,622.08 8622.0812/22 8,622.08 0.0012/31 Adjusting Entry 3,685.68 3685.6812/31 3685.68

3685.68

Account: Federal Income Taxes Payable Account #: 2330


11/30 Beg Bal 1454.5312/7 934.96 2389.49

12/15 1,454.53 934.9612/22 1,628.77 2563.7312/31 2,563.73 0.0012/31 Adjusting Entry 414.65 414.65

414.65

Account: Social Security Taxes Payable Account #: 2335Balance `

Date Explanation Debit Credit Debit Credit11/30 Beg Bal 1308.2012/7 899.00 2207.20

12/15 1,308.20 899.0012/22 1,376.40 2275.4012/31 2,275.40 0.0012/31 Adjusting Entry 550.56 550.56

550.56

Account: Medicare Taxes Payable Account #: 2337Balance


12/15 305.96 210.2612/22 321.90 532.1612/31 532.16 0.0012/31 Adjusting Entry 128.76 128.76

128.76

Account: FUTA Payable Account #: 2340Balance


12/22 8.40 182.4012/31 Adjusting Entry 6.00 188.40

188.40

Account: SUTA Payable Account #: 2360


11/30 Beg Bal 0.0012/10 30.00 30.0012/22 42.00 72.0012/31 Adjusting Entry 30.00 102.00

102.00

Account: L/T Notes Payable Account #: 2700Balance

Date Explanation Debit Credit Debit Credit11/30 Beg Bal 0.0012/1 25,200.00 25200.00

25200.0025200.0025200.00

Account: Mortgage Payable Account #: 2800Balance


115636.32115636.32115636.32

Owners Equity:Account: Joe Black, Capital Account #: 3920


11/30 Beg Bal 270500.41 *** when u close the Income summary out you are going12/31 net income 153.02 270653.43 to close it out to the capital acct (or retained earnings) you 12/31 closing withdrawls 96,000.00 174653.43 will list a credit entry here to match the debit entry from

174653.43 the income summary.174653.43

Accounts Receivable Subsidiary Ledgers

Customer: Howell Construction Balance

Date Explanation Debit Credit Debit Credit6/19 2318.75 2318.75

12/31 Write-Off 2318.75 0.000.000.00

Customer: Helpful Hardware ChainBalance


12/9 10456.25 18593.7518593.7518593.7518593.75

Customer: Remodeler's Supply Balance


12/3 7840.00 18658.50 12/15 7840.00 10818.5012/24 10818.50 0.00

0.00

Customer: Bowery Super WarehouseBalance

Date Explanation Debit Credit Debit Credit12/14 6720.00 6720.00 12/23 245.00 6475.0012/26 6475.00 0.00

0.000.000.00

Customer: Builders WarehouseBalance


12/19 13685.00 0.000.000.00

Accounts Payable Subsidiary Ledgers

Vendor: Grand Blanc Fans Balance


12/10 980.00 0.000.000.00

Vendor: Columbia ProductsBalance

Date Explanation Debit Credit Debit Credit12/1 1848.00 1848.0012/4 294.00 1554.00

12/15 1554.00 0.000.00

Vendor: Santa Ana Gales Fans Balance


12/20 3570.00 0.000.000.00

Vendor: Juarez Light ProductsBalance

Date Explanation Debit Credit Debit Credit12/1 1100.00 1100.0012/4 55.00 1045.00

12/12 7600.00 8645.0012/31 1045.00 7600.00

7600.007600.00

Vendor: Thomas FreightBalance


770.00770.00

Mortgage Amortization ScheduleBeginning Principal: $125,000.00Interest Rate: 0.05Payment Amount: ($730.74)

Payment RunningPay # Amount Interest Principal Balance

Jul, 2004 $125,000.00Aug $730.74 520.83 209.90 124,790.10Sep $730.74 519.96 210.78 124,579.32Oct $730.74 519.08 211.66 124,367.66Nov $730.74 518.20 212.54 124,155.12Dec $730.74 517.31 213.42 123,941.70Jan, 2005 $730.74 516.42 214.31 123,727.38Feb $730.74 515.53 215.21 123,512.18Mar $730.74 514.63 216.10 123,296.07Apr $730.74 513.73 217.00 123,079.07May $730.74 512.83 217.91 122,861.16Jun $730.74 511.92 218.82 122,642.34Jul $730.74 511.01 219.73 122,422.62Aug $730.74 510.09 220.64 122,201.97Sep $730.74 509.17 221.56 121,980.41Oct $730.74 508.25 222.49 121,757.92Nov $730.74 507.32 223.41 121,534.51Dec $730.74 506.39 224.34 121,310.17Jan, 2006 $730.74 505.46 225.28 121,084.89Feb $730.74 504.52 226.22 120,858.67Mar $730.74 503.58 227.16 120,631.51Apr $730.74 502.63 228.11 120,403.41May $730.74 501.68 229.06 120,174.35Jun $730.74 500.73 230.01 119,944.34Jul $730.74 499.77 230.97 119,713.37Aug $730.74 498.81 231.93 119,481.44Sep $730.74 497.84 232.90 119,248.54Oct $730.74 496.87 233.87 119,014.67Nov $730.74 495.89 234.84 118,779.83Dec $730.74 494.92 235.82 118,544.01Jan, 2007 $730.74 493.93 236.80 118,307.20Feb $730.74 492.95 237.79 118,069.41Mar $730.74 491.96 238.78 117,830.63Apr $730.74 490.96 239.78 117,590.85May $730.74 489.96 240.78 117,350.08Jun $730.74 488.96 241.78 117,108.30Jul $730.74 487.95 242.79 116,865.51Aug $730.74 486.94 243.80 116,621.71Sep $730.74 485.92 244.81 116,376.90Oct $730.74 484.90 245.83 116,131.07Nov $730.74 483.88 246.86 115,884.21Dec $730.74 482.85 247.89 115,636.32

PAYROLL REGISTER for December 7.

Cumul EARNINGS TAXES

Employee YTD Other Net

Name Earnings Regular Commission Other Gross FITW Soc Sec Medicare Deductions Pay

Fred Smythe 10150 1000 3650 4650 644.28 288.30 67.43 3650.00

Stan Redstone 34500 1250 600 1850 255.28 114.70 26.83 1453.19

Jan Brown 0 750 750 35.40 46.50 10.88 657.23

Emma Black 16500

0.00 7250.00 934.96 449.50 105.13 0.00 5760.41

PAYROLL REGISTER for Dec 22




Fred Smythe 14800 1000 900 1900 118.05 117.80 27.55 1636.60

Stan Redstone 36350 1250 3600 4850 1050.20 300.70 70.33 3428.77

Jan Brown 750 750 300 1050 82.90 65.10 15.23 886.78

Emma Black 16500 3300 3300 377.62 204.60 47.85 2669.94

8100.00 11100.00 1628.77 688.20 160.95 0.00 8622.08

INDIVIDUAL PAYROLL RECORD FOR:

INDIVIDUAL PAYROLL RECORD FOR: Fred Smythe

Hired: 10/1/2007

Pay Period Regular Commission Other Gross FITW Soc Sec Medicare Deductions Pay Earnings

Oct 1 - Oct 31 2000.00 2500.00 4500.00 606.78 279.00 65.25 3548.97 4500.00

Nov 1 - Nov 30 2000.00 3650.00 5650.00 894.28 350.30 81.93 4323.50 10150.00

Dec 7 1000.00 3650.00 4650.00 644.28 288.30 67.43 3650.00 14800.00

Dec 22 1000.00 900.00 1900.00 118.05 117.80 27.55 1636.60 16700.00

6000.00 9800.00 900.00 16700.00 2263.39 1035.40 242.15 0.00 13159.06

INDIVIDUAL PAYROLL RECORD FOR: Stan Redstone

Other Cumulative


Jan 1 - Sep 30 22500.00 8550.00 31050.00 4036.50 1925.10 450.23 24638.18 31050.00

Oct 1 - Oct 31 2500.00 950.00 3450.00 448.50 213.90 50.03 2737.58 34500.00

Nov 1 - Nov 30 2500.00 900.00 3400.00 442.00 210.80 49.30 2697.90 37900.00

Dec 7 1250.00 600.00 1850.00 255.28 114.70 26.83 1453.19 39750.00

Dec 22 1250.00 3600.00 4850.00 1050.20 300.70 70.33 0.00 3428.77 44600.00

30000.00 11000.00 3600.00 44600.00 6232.48 2765.20 646.70 0.00

INDIVIDUAL PAYROLL RECORD FOR: Emma Black

Other Cumulative


Jan 1 - Sep 30 13500.00 13500.00 1064.24 837.00 195.75 11403.01 13500.00

Oct 1 - Oct 31 1500.00 1500.00 118.25 93.00 21.75 1267.00 15000.00

Nov 1 - Nov 30 1500.00 1500.00 118.25 93.00 21.75 1267.00 16500.00

Dec 7 16500.00

Dec 22 3300.00 3300.00 377.62 204.60 47.85 2669.94 19800.00

16500.00 0.00 3300.00 19800.00 1678.36 1227.60 287.10 0.00

INDIVIDUAL PAYROLL RECORD FOR: Jan Brown

Hired: 12/1/07


Jan 1 - Sep 30

Oct 1 - Oct 31

Nov 1 - Nov 30

Dec 7 750.00 750.00 35.40 46.50 10.88 657.23 750.00

Dec 22 750.00 300.00 1050.00 82.90 65.10 15.23 886.78 1800.00

1500.00 0.00 300.00 1800.00 118.30 111.60 26.10 0.00

INDIVIDUAL PAYROLL RECORD FOR: Joe Black

SS# 573-38-4729

Other Cumulative


Jan 1 - Sep 30

Oct 1 - Nov 30

Week 3

Payroll Summary - Quarterly Summary of earnings and tax for 4th quarter.

Pay Period Regular Commission Other Gross FITW Soc Sec Medicare FUTA SUTA

Smythe 6000.00 9800.00 900.00 16700.00 2263.39 1035.40 242.15 56.00 280.00

Stan Redstone 7500.00 2450.00 3600.00 13550.00 2195.98 840.10 196.48 0.00

Emma Black 3000.00 0.00 3300.00 6300.00 614.12 390.60 91.35 0.00

Jan Brown 1500.00 0.00 300.00 1800.00 118.30 111.60 26.10 8.40 30.00

18000.00 12250.00 8100.00 38350.00 5191.79 2377.70 556.08 64.40 310.00

Week 4

PAYROLL REGISTER for Adjusting Entry

(In Practice the indivdiual records would be updated. Not required for this case)




Payroll Journal for Pleasant Breeze Fan Company

REQUIREMENT #1:

Prepare journal entries to record the December 22 payroll transactions in the Journal below.1. Prepare the payroll forms2. Total the paychecks for the payday.3. In the general journal prepare a journal entry to fund the payroll checking account.

General JournalDate Description(Account Name) Debit Credit

7-Dec Salary / Wages Expense 7250.00 Fed Income Tax With Payable 934.96 Social Security Taxes Payable 449.50 Medicare Taxes Payable 105.13 Salary / Wages Payable 5760.41Record payroll

Payroll Checking 5760.41 Checking 5760.41Transfer cash to payroll checking acct.

Salary / Wages Payable 5760.41 Payroll Checking 5760.41Issue paychecks

Employer Tax Expense 590.63 Social Security Taxes Payable 449.50 Medicare Taxes Payable 105.13 FUTA Payable 6.00 SUTA Payable 30.00Record employer tax liabilities

22-Dec Salary / Wages Expense 11100.00 Fed Income Tax With Payable 1628.77 Social Security Taxes Payable 688.20 Medicare Taxes Payable 160.95 Salary / Wages Payable 8622.08Record payroll

Payroll Checking 8622.08 Checking 8622.08Transfer cash to payroll checking acct.

Salary / Wages Payable 8622.08 Payroll Checking 8622.08Issue paychecks

Employer Tax Expense 899.55 Social Security Taxes Payable 688.20 Medicare Taxes Payable 160.95 FUTA Payable 8.40 SUTA Payable 42.00Record employer tax liabilities

REQUIREMENT: Complete the bank reconciliation and aging analysis on the forms below.Use the journal provided to make any necessary entries for the bank reconciliationand aging analysis.

Pleasant Breeze Fan Company

Bank Reconciliation

Month Ended December 31, 2007

Bank Balance: $81,538.16 Book Balance: $69,756.73

Additions: Additions:

Deposit in Transit 3,172.75 Interest Earned 144.68

Total Additions 3,172.75 144.68

Subtractions: Subtractions:

Check # 1509 970.20 Service Charge 160.00

Check # 1512 3,534.30

Check # 1514 1,045.00

Check # 1515 560.00

Check # 1516 860.00

Check # 1517 8,000.00

Total Subractions 14,969.50 160.00

Adjusted Cash Balance $69,741.41 Adjusted Cash Balance $69,741.41

BANK RECONCILATION ENTRIESGeneral Journal

Date Descrip(Acct Name) Debit Credit31-Dec Cash 144.68

Interest Revenue 144.68

31-Dec Service Charges 160.00 Cash 160.00

DON'T FORGET TO UPDATE YOUR LEDGER BALANCES AND THE WORKSHEET FOR THESE JOURNAL ENTRIES.

Pleasant Breeze Fan Company Aging of Accounts Receivable Month Ended December 31, 2007

Gentle Breeze Inventory Summary Purchased Sold Beginning Ending

Date Quantity Cost Quantity Cost Units Balance Gentle Breeze 5320.00 1225.00Beg Bal 152 35.00 152 5320.00 Tropical Wind 10752.00 4998.00

1-Dec 28 35.00 180 6300.00 Santa Ana 9180.00 2907.003-Dec 26 35.00 154 5390.00 Light Kits 5500.00 8613.008-Dec 70 35.00 84 2940.00 17743.009-Dec 25 35.00 59 2065.00 Other Perpetual Inventory Items:

14-Dec 30 35.00 29 1015.00 Thomas Freight 770.0026-Dec -4 35.00 33 1155.00 Purchase Discounts -9.80

Correct Inventory 33 1155.00 -31.0831-Dec 2 35.00 35 1225.00 -35.70

Total Other Items 693.42Tropical Wind Total Inventory 30752.00 18436.42

Purchased Sold Date Quantity Cost Quantity Cost Units Balance

Beg Bal 256 42.00 256 10752.001-Dec 44 42.00 300 12600.003-Dec 85 42.00 215 9030.004-Dec -7 42.00 208 8736.008-Dec 55 42.00 153 6426.00

14-Dec 30 42.00 123 5166.00Correct Inventory 123 5166.00

31-Dec 4 42.00 119 4998.00

Santa Ana Purchased Sold

Date Quantity Cost Quantity Cost Units BalanceBeg Bal 180 51.00 180 9180.00

1-Dec 70 51.00 250 12750.008-Dec 60 51.00 190 9690.009-Dec 100 51.00 90 4590.00

14-Dec 30 51.00 60 3060.00Correct Inventory 60 3060.00

31-Dec 3 51.00 57 2907.00

Light Kits Purchased Sold

Date Quantity Cost Quantity Cost Units Balance30-Nov 500 11.00 500 5500.00

1-Dec 100 11.00 600 6600.003-Dec 110 11.00 490 5390.004-Dec -5 11.00 485 5335.008-Dec 185 11.00 300 3300.009-Dec 125 11.00 175 1925.00

12-Dec 800 9.50 975 9525.0014-Dec 90 9.50 885 8670.00

Correct Inventory 8670.0031-Dec 6 9.50 879 8613.00

Journal any necessary changes on the Adjusting Entries Journal Any corrections use the active cost layer for the cost at December 31.

Financial Records for Depreciation Tax Records for Depreciation

Asset: Land Depreciation Method: Asset: Land Depreciation Method:Est. Useful Life: Est. Useful Life:

Cost: 40000 Expect Salvage: Cost: 40000 Expect Salvage:

Date in Depreciation Accumulated Book Date in Depreciation Accumulated Book Service Expense Depreciation Value Service Expense Depreciation Value

7/1/2004 40,000.00 7/1/2004 40,000.00

Asset: Building Depreciation Method: Straight line Asset: Building Depreciation Method: Mid Month ConventionEst. Useful Life: 39 Est. Useful Life: 39

Cost: 150000 Expect Salvage: 13500 Cost: 150000 Expect Salvage: 13500


7/1/2004 150,000.00 7/1/2004 150,000.0012/31/2004 1,750.00 1,750.00 148,250.00 12/31/2004 1,765.50 1,765.50 148,234.5012/31/2005 3,500.00 5,250.00 144,750.00 12/31/2005 3,846.00 5,611.50 144,388.5012/31/2006 3,500.00 8,750.00 141,250.00 12/31/2006 3,846.00 9,457.50 140,542.5012/31/2007 3,500.00 12,250.00 137,750.00 12/31/2007 3,846.00 13,303.50 136,696.50

Asset: 2004 Toyota Depreciation Method: UnitsEst. Useful Life: 120000 miles

Cost: 24000 Salvage: 8400

Date in Depreciation Accumulated Book Service Expense Depreciation Value

12/6/2004 24,000.0012/31/2004 260.00 260.00 23,740.0012/31/2005 3,900.00 4,160.00 19,580.0012/31/2006 3,120.00 7,280.00 16,720.0012/8/2007 3,250.00 10,530.00 13,470.00

Asset: 2005 Nissan Depreciation Method: UnitsEst. Useful Life: 120000 miles


Date in Depreciation Accumulated Book Service Expense Depreciation Value

12/1/2005 25,000.0012/31/2005 450.00 450.00 24,550.0012/31/2006 4,800.00 5,250.00 19,750.0012/31/2007 2,400.00 7,650.00 17,350.00

Asset: 2006 PT Cruiser Depreciation Method: UnitsEst. Useful Life: 100000


Date in Depreciation Accumulated Book Service Expense Depreciation Value12/18/2006 25,000.0012/31/2007 4,400.00 4,400.00 20,600.00

Asset: 2007 Honda Depreciation Method: Units Asset: 2007 Honda Depreciation Method: MACRS Half YearEst. Useful Life: 120000 miles Est. Useful Life: 5

Cost: 28000 Expect Salvage: 11200 Cost: 28000 Expect Salvage: 11200


12/8/2007 28,000.00 12/8/2007 28,000.0012/31/2007 1,190.00 1,190.00 26,810.00 12/31/2007 3,060.00 3,060.00 24,940.00

Asset: Office/Shop Equip Depreciation Method: DDB Asset: Office/Shop Equip Depreciation Method: MACRS Half YearEst. Useful Life: 5 Est. Useful Life: 5

Cost: 8400 Salvage: 2000 Cost: 8400 Salvage: 2000


9/26/2006 8,400.00 9/26/2006 8,400.0012/31/2006 840.00 840.00 7,560.00 12/31/2006 1,680.00 1,680.00 6,720.00

G71

This figure is from the IRS Publication 946 (2007) page 61. Table A-1, page 71 is used, but there is maximum deduction.

12/31/2007 3,024.00 3,864.00 3,696.00 12/31/2007 2,688.00 4,368.00 4,032.00

Prepare the closing entries at December 31 in the General Journal below. Prepare a post-closing trial balance

Hint: use the balances for each account which appear on the Adjusted as of December 31 in the space below.

Trial Balance for your closing entries.

General Journal Pleasant Breeze Ceiling Fan

Date Description(Account Name) Debit Credit Post Closing Trial Balance

December 31, 2007

31-Dec Sales 493,016.25

Interest Revenue 148.28 Debits Credits

Income Summary 493,164.53 Checking Account 69,741.41

Payroll Checking

31-Dec Income Summary 493,011.51 Petty Cash 200.00

Sales Discounts 9,095.25 Accounts Receivable 18,593.75

Sales Returns and Allowances 5,445.00 Allowance for Doubtful Accts 534.63

Cost of Sales 300,710.00 Interest Receivable 3.60

Car Ops and Maintenance 4,800.00 Notes Rec - Short Term 3,237.50

Salary and Wages Expense 87,339.99 Office Supplies 75.00

Employer Tax Expense 14,491.99 Fan Inventory 18,436.42

Telephone Utilities Expense 6,710.00 Prepaid Expenses 6,900.00

Office Supplies Expense 6,613.00 Land 40,000.00

Travel Expense 21,195.00 Building 150,000.00

Postage and Freight 6,157.00 Acc Dep, Building 12,250.00

Depreciation Expense 17,764.00 Cars 78,000.00

Gain / Loss on Equipment 2,970.00 Acc Dep, Company Cars 46,710.00

Interest Expense 3,672.77 Equipment 8,400.00

Professional & Bank Service Fees 560.00 Acc Dep, Off/Shop Equip 3,864.00

Warranty Expense 769.13 Accounts Payable 8,370.00

Insurance Expense 2,700.00 Short Term Notes Payable

Warehouse Expense 1,200.00 Salary and Wages Payable 3,685.68

Doubtful Accounts Expense 818.38 Federal Income Tax Payable 414.65

Social Security Taxes Payable 550.56

31-Dec Income Summary 153.02 Medicare Taxes Payable 128.76

Joe Black, Capital 153.02 FUTA Payable 188.40

SUTA Payable 102.00

31-Dec Joe Black, Capital 96,000.00 Warranty Payable 769.13

Joe Black, Withdrawals 96,000.00 Interest Payable 530.12

Notes Payable - Long Term 25,200.00

Mortgage Payable 115,636.32

Joe Black, Capital 174,653.43

393,587.68 393,587.68

Prepare the financial statements for Pleasant Breeze Fan Company as of December 31 in the space below. Statement of Cash Flows is not requried.

Pleasant Breeze Ceiling Fan Pleasant Breeze Ceiling Fan Pleasant Breeze Ceiling Fan

Income Statement Statement of Owner's Equity Balance Sheet

For the Year Ended December 31 For the Year Ended December 31 December 31, 2007

Sales $493,016.25 Beginning Capital, December 1 $270,500.41 Assets:

Interest Revenue 148.28 Add: Net Income (Subtract Net Loss) 153.02 Checking Account 69,741.41

Sales Discounts -9,095.25 Subtotal 270,653.43 Payroll Checking

Sales Returns -5,445.00 Less: Withdrawals 96,000.00 Petty Cash 200.00

Net Revenue $478,624.28 Ending Capital, December 31 $174,653.43 Accounts Receivable 18,593.75

Allowance for Doubtful Accts -534.63

Interest Receivable 3.60

Expenses: Notes Receivable - Short Term 3,237.50

Cost of Sales 300,710.00 Office Supplies 75.00

Car Ops and Maintenance 4,800.00 Fan Inventory 18,436.42

Salary and Wages Expense 87,339.99 Prepaid Expenses 6,900.00

Employer Tax Expense 14,491.99 Land 40,000.00

Telephone Utilities Expense 6,710.00 Building 150,000.00

Office Supplies Expense 6,613.00 Acc Dep, Building -12,250.00

Travel Expense 21,195.00 Cars 78,000.00

Postage and Freight 6,157.00 Acc Dep, Company Cars -46,710.00

Depreciation Expense 17,764.00 Equipment 8,400.00

Gain / Loss on Equipment 2,970.00 Acc Dep, Off/Shop Equip -3,864.00

Interest Expense 3,672.77

Professional & Bank Service Fees 560.00 Total Assets: 330,229.05

Warranty Expense 769.13

Insurance Expense 2,700.00 Liabilities:

Warehouse Expense 1,200.00 Accounts Payable 8,370.00

Doubtful Accounts Expense 818.38 Short Term Notes Payable

Total Expenses: 478,471.26 Salary and Wages Payable 3,685.68

$153.02 Federal Income Tax Payable 414.65

Social Security Taxes Payable 550.56

Medicare Taxes Payable 128.76

FUTA Payable 188.40

NOTE: Statement of Cash Flows will not be completed. Prior Year End Information has SUTA Payable 102.00

not been provided in order to complete the Statement of Cash Flows. It is a required statement. Warranty Payable 769.13

Interest Payable 530.12

Notes Payable - Long Term 25,200.00

Mortgage Payable 115,636.32

Owner's Equtiy:

Joe Black, Capital 174,653.43

Total Liabilities and Owner's Equity $330,229.05

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Case Week 7 Carrie Miller

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