Rebel Ridge Snowmobile Answer Book 1st Web- Based Edition
Copyright © 2010 – 2020,PKL Software, Incorporated. All rights reserved. www.pklsoftware.com Last Revised: January 21, 2020
Rebel Ridge Snowmobile Answer Book
1st Web-‐Based Edition
Student Documents and
Evaluation Answers
Rebel Ridge Snowmobile Answer Book 1st Web- Based Edition
Copyright © 2010 – 2020,PKL Software, Incorporated. All rights reserved. www.pklsoftware.com Last Revised: January 21, 2020
Notes to Professors:
The year-dates of the financial documents in the Answer Book will
not reflect the current year, but will show a year-date of 2009.
The financial documents printed by your students will show a
year-date of the current year plus one.
Rebel Ridge Snowmobile Answer Book 1st Web- Based Edition
Copyright © 2010 – 2020,PKL Software, Incorporated. All rights reserved. www.pklsoftware.com Last Revised: January 21, 2020
Student Documents
for
December 3 – 10 Journal Entries
Answer Book
Rebel Ridge Snowmobile
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------------------
Dec. 3 Office Supplies 129 450.63
Cash 101 450.63
Check: 10055
Invoice: P6604
Dec. 2 Cash 101 84.40
Miscellaneous Expense 629 84.40
Invoice: 23339
Dec. 2 Advertising Expense 604 84.40
Cash 101 84.40
Check: ERROR
Invoice: 23339
Dec. 3 Store Fixtures 130 268.00
Store Supplies 127 115.42
Accounts Payable 201 383.42
Invoice: BB671
Vendor: 20150
Boyd Business Supply
Dec. 3 Cash 101 13,560.00
Sales 401 13,560.00
Invoice: R0045
Dec. 3 Cost of Goods Sold 501 9,685.71
Merchandise Inventory 115 9,685.71
Invoice: R0045
Dec. 4 Cash 101 1,324.00
Accounts Receivable 105 1,324.00
Invoice: ROO31
Customer: 11800
Emory Yonkers
Dec. 5 Merchandise Inventory 115 4,800.00
Accounts Payable 201 4,800.00
Invoice: T2717
Vendor: 29500
Tri-City Snowmobiles
Dec. 6 Accounts Receivable 105 18,769.00
Sales 401 18,769.00
Invoice: ROO46
Customer: 11200
Kelm's Snowmobile Klub
Dec. 6 Cost of Goods Sold 501 13,406.43
Merchandise Inventory 115 13,406.43
Invoice: ROO46
Customer: 11200
Kelm's Snowmobile Klub
Dec. 8 Merchandise Inventory 115 8,760.00
Accounts Payable 201 8,760.00
Invoice: E4522
Vendor: 22100
Edwards Sporting Goods
Dec. 9 Accounts Payable 201 8,435.55
Cash 101 8,435.55 Check: 10056 Invoice: S1240 Vendor: 28600 Sierra Buttes Sports
Dec. 10 Cash 101 25,000.00
Common Stock 301 25,000.00
Invoice: CMSTK
Dec. 10 Accounts Payable 201 6,231.89
Cash 101 6,231.89 Check: 10057 Invoice: H4230 Vendor: 25300
High Sierra Sports
Answer Book
Rebel Ridge Snowmobile
Trial Balance
December 10, 2009
Account Titles Debit Credit
---------------------------------------------------------------
Cash 33,585.93 Petty Cash 200.00
Accounts Receivable 23,738.20
Notes Receivable 15,000.00
Merchandise Inventory 115,027.86
Prepaid Insurance 4,860.00
Prepaid Rent 3,600.00
Store Supplies 3,326.92
Office Supplies 1,596.23
Store Fixtures 19,168.00
Office Equipment 4,500.00
Bulding 70,000.00
Accounts Payable 13,943.42
Notes Payable 30,000.00
Common Stock 225,000.00
Sales 145,737.80
Sales Returns and Allowances 4,167.00
Cost of Goods Sold 96,282.94
Transportation-In 1,341.90
Salaries and Wages Expense 10,500.00
Advertising Expense 2,230.40
Delivery Expense 888.00
Credit Card Expense 134.00
Professional Services Expense 1,580.00
Utilties Expense 1,800.00
Telephone Expense 680.00
Bank Service Charges 58.00
Miscellaneous Expense 103.34
Interest Expense 312.50
---------- ----------
Total 414,681.22 414,681.22 ========== ==========
Student Documents
for
December 11 – 17 Journal Entries
Rebel Ridge Snowmobile Answer Book 1st Web- Based Edition
Copyright © 2010 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: April 2, 2010
Answer Book
Rebel Ridge Snowmobile
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------------------
Dec. 11 Merchandise Inventory 115 5,300.00
Transportation-In 505 235.00
Accounts Payable 201 5,535.00
Invoice: P2792
Vendor: 27000
Prospector Diggins
Dec. 12 Cash 101 12,488.00
Sales 401 12,488.00
Invoice: R0047
Dec. 12 Cost of Goods Sold 501 8,920.00
Merchandise Inventory 115 8,920.00
Invoice: R0047
Dec. 12 Delivery Expense 606 183.55
Cash 101 183.55 Check: 10058
Invoice: N4512
Dec. 15 Sales Returns and Allowances 402 145.00
Accounts Receivable 105 145.00
Invoice: R0046
Credit Memo: CM004
Customer: 11200
Kelm's Snowmobile Klub
Dec. 15 Merchandise Inventory 115 103.57
Cost of Goods Sold 501 103.57
Invoice: R0046
Debit Memo: CM004
Customer: 11200
Kelm's Snowmobile Klub
Invoice: R0035
Customer: 10720
Daylite Snowmobile Club
Dec. 17 Cash 101 2,356.00
Accounts Receivable 105 2,356.00
Answer Book
Rebel Ridge Snowmobile
Trial Balance
December 17, 2009
Account Titles Debit Credit
---------------------------------------------------------------
Cash 48,246.38 Petty Cash 200.00
Accounts Receivable 21,237.20
Notes Receivable 15,000.00
Merchandise Inventory 111,511.43
Prepaid Insurance 4,860.00
Prepaid Rent 3,600.00
Store Supplies 3,326.92
Office Supplies 1,596.23
Store Fixtures 19,168.00
Office Equipment 4,500.00
Building 70,000.00
Accounts Payable 19,478.42
Notes Payable 30,000.00
Common Stock 225,000.00
Sales 158,225.80
Sales Returns and Allowances 4,312.00
Cost of Goods Sold 105,099.37
Transportation-In 1,576.90
Salaries and Wages Expense 10,500.00
Advertising Expense 2,230.40
Delivery Expense 1,071.55
Credit Card Expense 134.00
Professional Services Expense 1,580.00
Utilties Expense 1,800.00
Telephone Expense 680.00
Bank Service Charges 58.00
Miscellaneous Expense 103.34
Interest Expense 312.50
---------- ----------
Total 432,704.22 432,704.22 ========== ==========
Student Documents
for
December 18 – 24 Journal Entries
Rebel Ridge Snowmobile Answer Book 1st Web- Based Edition
Copyright © 2010 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: April 2, 2010
Answer Book
Rebel Ridge Snowmobile
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------------------
Dec. 18 Accounts Payable 201 8,760.00
Cash
Check:
10059
101 8,760.00
Invoice: E4522
Vendor: 22100
Edwards Sporting
Goods
Dec. 20 Merchandise Inventory
115 6,450.00
Transportation-In 505 135.00
Accounts Payable
Invoice: E4630
Vendor: 22100
Edwards Sporting
Goods
201 6,585.00
Dec. 21 Cash 101 10,663.00
Sales 401 10,663.00
Invoice: R0048
Dec. 21 Cost of Goods Sold 501 7,616.43
Merchandise Inventory 115 7,616.43
Invoice: R0048
Dec. 23 Accounts Payable 201 150.00
Merchandise Inventory 115 150.00
Invoice: E4630
Debit Memo: DM001
Vendor:
Edwards
22100
Sporting
Goods
Dec. 24 Miscellaneous Expense
629 320.00
Cash
Check:
10060
101 320.00
Invoice: J3400
Dec. 24 Cash
101 6,128.90
Sales
Invoice:
R0049
401 6,128.90
Dec. 24 Cost of Goods Sold 501 4,377.79
Merchandise Inventory 115 4,377.79
Invoice: R0049
Answer Book
Rebel Ridge Snowmobile
Trial Balance
December 24, 2009
Account Titles Debit Credit
---------------------------------------------------------------
Cash 55,958.28 Petty Cash 200.00
Accounts Receivable 21,237.20
Notes Receivable 15,000.00
Merchandise Inventory 105,817.21
Prepaid Insurance 4,860.00
Prepaid Rent 3,600.00
Store Supplies 3,326.92
Office Supplies 1,596.23
Store Fixtures 19,168.00
Office Equipment 4,500.00
Building 70,000.00
Accounts Payable 17,153.42
Notes Payable 30,000.00
Common Stock 225,000.00
Sales 175,017.70
Sales Returns and Allowances 4,312.00
Cost of Goods Sold 117,093.59
Transportation-In 1,711.90
Salaries and Wages Expense 10,500.00
Advertising Expense 2,230.40
Delivery Expense 1,071.55
Credit Card Expense 134.00
Professional Services Expense 1,580.00
Utilties Expense 1,800.00
Telephone Expense 680.00
Bank Service Charges 58.00
Miscellaneous Expense 423.34
Interest Expense 312.50
---------- ----------
Total 447,171.12 447,171.12 ========== ==========
Student Documents
for
December 26 – 31 Journal Entries
Rebel Ridge Snowmobile Answer Book 1st Web- Based Edition
Copyright © 2010 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: April 2, 2010
Answer Book
Rebel Ridge Snowmobile
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------------------
Dec. 26 Advertising Expense 604 560.00
Cash 101 560.00
Check: 10061
Invoice: NS689
Dec. 28 Cash 101 1,477.00
Sales 401 1,477.00
Invoice: R0050
Dec. 28 Cost of Goods Sold 501 1,055.00
Merchandise Inventory 115 1,055.00
Invoice: R0050
Dec. 30 Notes Payable 203 5,000.00 Interest Expense 811 125.00
Cash
Check:
10062
101 5,125.00
Invoice: NTPAY
Dec. 31 Miscellaneous Expense 629 350.00
Accounts Payable 201 350.00
Invoice: D3443
Vendor: 21300
Douglas Janitorial
Dec. 31 Utilties Expense 624 635.00
Cash
Check:
10063
101 635.00
Invoice: 99066
Dec. 31 Telephone Expense
625 240.00
Cash
Check:
10064
101 240.00
Invoice: 44555
Dec. 31 Salaries and Wages Expense 601 3,800.00
Cash 101 3,800.00
Check: 10065
Invoice: PR003
Dec. 31 Notes Receivable 109 18,624.00
Accounts Receivable 105 18,624.00
Invoice: NTREC
Customer: 11200
Kelm's Snowmobile Klub
Dec. 31 Cash 101 45.60
Interest Earned 711 45.60
Invoice: BKS12
Check: BKS12
Invoice: BKS12
Dec. 31 Credit Card Expense 607 103.95
Bank Service Charges 627 20.00
Cash 101 123.95
Answer Book
Rebel Ridge Snowmobile
Trial Balance
December 31, 2009
Account Titles Debit Credit
---------------------------------------------------------------
Cash 47,075.28 Petty Cash 200.00
Accounts Receivable 2,613.20
Notes Receivable 33,624.00
Merchandise Inventory 104,762.21
Prepaid Insurance 4,860.00
Prepaid Rent 3,600.00
Store Supplies 3,326.92
Office Supplies 1,596.23
Store Fixtures 19,168.00
Office Equipment 4,500.00
Building 70,000.00
Accounts Payable 17,503.42
Notes Payable 25,000.00
Common Stock 225,000.00
Sales 176,494.70
Sales Returns and Allowances 4,312.00
Cost of Goods Sold 118,148.59
Transportation-In 1,711.90
Salaries and Wages Expense 14,300.00
Advertising Expense 2,790.40
Delivery Expense 1,071.55
Credit Card Expense 134.00
Professional Services Expense 1,580.00
Utilties Expense 2,435.00
Telephone Expense 920.00
Bank Service Charges 58.00
Miscellaneous Expense 773.34
Interest Expense 437.50
---------- ----------
Total 443,998.12 443,998.12 ========== ==========
Answer Book
Rebel Ridge Snowmobile
Trial Balance After Bank Reconcilation
December 31, 2009
Account Titles Debit Credit
---------------------------------------------------------------
Cash 46,996.93
Petty Cash 200.00
Accounts Receivable 2,613.20
Notes Receivable 33,624.00
Merchandise Inventory 104,762.21
Prepaid Insurance 4,860.00
Prepaid Rent 3,600.00
Store Supplies 3,326.92
Office Supplies 1,596.23
Store Fixtures 19,168.00
Office Equipment 4,500.00
Building 70,000.00
Accounts Payable 17,503.42
Notes Payable 25,000.00
Common Stock 225,000.00
Sales 176,494.70
Sales Returns and Allowances 4,312.00
Cost of Goods Sold 118,148.59
Transportation-In 1,711.90
Salaries and Wages Expense 14,300.00
Advertising Expense 2,790.40
Delivery Expense 1,071.55
Credit Card Expense 237.95
Professional Services Expense 1,580.00
Utilties Expense 2,435.00
Telephone Expense 920.00
Bank Service Charges 78.00
Miscellaneous Expense 773.34
Interest Earned 45.60
Interest Expense 437.50
---------- ----------
Total 444,043.72 444,043.72 ========== ==========
BANK RECONCILIATION NAME
REBEL RIDGE SNOWMOBILE SECTION DATE
BANK RECONCILIATION
REBEL RIDGE SNOWMOBILE
DECEMBER 31
Book Balance: $47,075.28
Add: Interest Earned $45.60
Total $47,120.88
Deduct: Credit Card Expense $103.95
Bank Service Charges $20.00
$123.95
Reconciled Book Balance
$46,996.93
==============
Bank Balance:
$49,559.93
Add: Late Deposit $1,477.00
Total $51,036.93
Deduct: Outstanding Checks
Check No. 10064 $240.00
Check No. 10065 $3,800.00
Check No.
$4,040.00
Reconciled Bank Balance
$46,996.93
==============
Student Documents
for
Adjusting and Closing Entries
Rebel Ridge Snowmobile Answer Book
1st Web- Based Edition Copyright © 2010 PKL Software, Incorporated. All rights reserved.
www.pklsoftware.com Last Revised: April 2, 2010
Answer Book
Rebel Ridge Snowmobile
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------------------
Dec. 31 Insurance Expense 622 1,080.00
Prepaid Insurance 121 1,080.00
Adjusting Entry
Dec. 31 Store Supplies Expense 602 1,191.92
Store Supplies 127 1,191.92
Adjusting Entry
Dec. 31 Office Supplies Expense 613 729.23
Office Supplies
Adjusting Entry
129 729.23
Dec. 31 Prepaid Advertising
125 430.00
Advertising Expense
Adjusting Entry
604 430.00
Dec. 31 Salaries and Wages Expense
601 297.60
Salaries and Wages Payable
Adjusting Entry
209 297.60
Dec. 31 Deprec. Exp.- Store Fixtures
610 1,250.00
Accumulated Deprec., Store
Adjusting Entry
Fixtures 132 1,250.00
Dec. 31 Deprec. Exp.- Office Equipment
611 375.00
Accumulated Deprec., Office Adjusting Entry
Equipment 136 375.00
Dec. 31 Depreciation Expense, Building 612 1,750.00
Accumulated Deprec., Building 140 1,750.00
Adjusting Entry
Dec. 31 Interest Receivable 113 318.75
Interest Earned 711 318.75
Adjusting Entry
Dec. 31 Rent Expense 621 1,800.00
Prepaid Rent 123 1,800.00
Adjusting Entry
Answer Book
Rebel Ridge Snowmobile
Adjusted Trial Balance
December 31, 2009
Account Titles Debit Credit
---------------------------------------------------------------
Cash 46,996.93 Petty Cash 200.00
Accounts Receivable 2,613.20
Notes Receivable 33,624.00
Interest Receivable 318.75
Merchandise Inventory 104,762.21
Prepaid Insurance 3,780.00
Prepaid Rent 1,800.00
Prepaid Advertising 430.00
Store Supplies 2,135.00
Office Supplies 867.00
Store Fixtures 19,168.00
Accumulated Deprec., Store Fixtures 1,250.00
Office Equipment 4,500.00
Accumulated Deprec., Office Equipment 375.00
Building 70,000.00
Accumulated Deprec., Building 1,750.00
Accounts Payable 17,503.42
Notes Payable 25,000.00
Salaries and Wages Payable 297.60
Common Stock 225,000.00
Sales 176,494.70
Sales Returns and Allowances 4,312.00
Cost of Goods Sold 118,148.59
Transportation-In 1,711.90
Salaries and Wages Expense 14,597.60
Store Supplies Expense 1,191.92
Advertising Expense 2,360.40
Delivery Expense 1,071.55
Credit Card Expense 237.95
Deprec. Exp.- Store Fixtures 1,250.00
Deprec. Exp.- Office Equipment 375.00
Depreciation Expense, Building 1,750.00
Office Supplies Expense 729.23
Rent Expense 1,800.00
Insurance Expense 1,080.00
Professional Services Expense 1,580.00
Utilties Expense 2,435.00
Telephone Expense 920.00
Bank Service Charges 78.00
Miscellaneous Expense 773.34
Interest Earned 364.35
Interest Expense 437.50
---------- ----------
Total 448,035.07 448,035.07 ========== ==========
Answer Book
Rebel Ridge Snowmobile
Income Statement
For the Quarter Ended December 31, 2009
Revenues:
Sales $ 176,494.70
Less: Sales Returns and Allowances 4,312.00
----------
Net Sales $ 172,182.70
Cost of Goods Sold $ 118,148.59
Transportation-In 1,711.90
----------
Total Cost of Cost of Goods Sold 119,860.49
----------
Gross Profit from Sales $ 52,322.21
Operating Expenses:
Selling Expenses:
Salaries and Wages Expense $ 14,597.60
Store Supplies Expense 1,191.92
Advertising Expense 2,360.40
Delivery Expense 1,071.55
Credit Card Expense 237.95
Depreciation Expense, Store Fixtures 1,250.00
----------
Total Selling Expense $ 20,709.42
11,520.57
----------
32,229.99
----------
Income From Operations $ 20,092.22
Other Income and Expenses:
Interest Earned $ 364.35
Interest Expense 437.50
----------
Net Other Expenses 73.15
----------
Net Income $ 20,019.07
==========
General and Administrative Expenses: Deprec. Exp.- Office Equipment $ 375.00
Depreciation Expense, Building 1,750.00
Office Supplies Expense 729.23
Rent Expense 1,800.00
Insurance Expense 1,080.00
Professional Services Expense 1,580.00
Utilities Expense 2,435.00
Telephone Expense 920.00
Bank Service Charges 78.00
Miscellaneous Expense 773.34
----------
Total General and Administrative
Total Operating Expenses
Expenses $
$
Answer Book
Rebel Ridge Snowmobile
Statement of Changes in Retained Earnings
For the Quarter Ended December 31, 2009
------------------------------------------------------------------------
Retained Earnings, September 30, 2009 $ 0.00
Add: Net Income $ 20,019.07
Less: Dividends 0.00
----------
Net Increase in Retained Earnings 20,019.07
----------
Retained Earnings, December 31, 2009 $ 20,019.07
==========
Rebel Ridge Snowmobile
Balance Sheet
Answer Book
December 31, 2009
Current Assets:
ASSETS
Cash $ 46,996.93
Petty Cash 200.00
Accounts Receivable 2,613.20
Notes Receivable 33,624.00
Interest Receivable 318.75
Merchandise Inventory 104,762.21
Prepaid Insurance 3,780.00
Prepaid Rent 1,800.00
Prepaid Advertising 430.00
Store Supplies 2,135.00
Office Supplies 867.00
----------
Total Current Assets
$ 197,527.09
Plant and Equipment
Store Fixtures
$ 19,168.00
Accumulated Depreciation 1,250.00 ----------
Book Value $ 17,918.00
----------
Office Equipment 4,500.00
Accumulated Depreciation 375.00
----------
Book Value $ 4,125.00
----------
Building 70,000.00
Accumulated Depreciation 1,750.00
----------
Book Value $ 68,250.00
----------
Total Plant and Equipment 90,293.00
----------
Total Assets $ 287,820.09
==========
LIABILITIES
Current Liabilities
Accounts Payable $ 17,503.42
Notes Payable 25,000.00
Salaries and Wages Payable 297.60
Interest Payable 0.00
----------
Total Current Liabilities $ 42,801.02
STOCKHOLDERS' EQUITY
Common Stock $ 225,000.00
Retained Earnings 20,019.07
----------
Total Stockholders' Equity 245,019.07
----------
Total Liabilities and Stockholders' Equity $ 287,820.09
==========
Answer Book
Rebel Ridge Snowmobile
Schedule of Accounts Receivable
Last Activity Date: December 31, 2009
Number Name Balance
10110 Alexander Boxer $ 613.20
10440 Helen Ballard .00
10720 Daylite Snowmobile Club 2,000.00
10950 Clifford Graham .00
11200 Klem's Snowmobile Klub .00
11390 Grace Maunder .00
11500 Sierra Buttes Bunnies .00
11700 Sierra City Snowmobiles .00
11800 Emory Yonkers .00
----------
Total Accounts Receivable $ 2,613.20 ==========
Answer Book
Rebel Ridge Snowmobile
All Accounts Receivable Customers
Number: 10110
Name: Alexander Boxer
Address: 420 San Juan Drive Camptonville, CA
Date Explanation Debit Credit Balance
______________________________________________________________________
Nov. 6 R0023 613.20 613.20
______________________________________________________________________
Number: 10440 Name: Helen Ballard
Address: 1420 Rush Street Bassett, CA
Date Explanation Debit Credit Balance
______________________________________________________________________
Dec. 2 Balance 0.00
______________________________________________________________________
Number:
Name:
Address:
Date
10720
Daylite Snowmobile
1200 Willow Glenn
Explanation
Club
Red Dog, CA
Debit
Credit
Balance
______________________________________________________________________
Nov. 26 R0035 4,356.00 4,356.00
Dec. 17 R0035 2,356.00 2,000.00
______________________________________________________________________
Number: 10950 Name: Clifford Graham
Address: 1234 Dark Day Drive Camptonville, CA
Date Explanation Debit Credit Balance
______________________________________________________________________
Dec. 2 Balance 0.00
______________________________________________________________________
Number:
Name:
Address:
Date
11200
Klem's Snowmobile
312 Rogers Lane
Explanation
Klub
Willow Glenn, CA
Debit Credit
Balance
______________________________________________________________________
Dec. 2 Balance 0.00
Dec. 6 ROO46 18,769.00 18,769.00
Dec. 15 R0046 CM004 145.00 18,624.00
Dec. 31 NTREC 18,624.00 0.00
______________________________________________________________________
Number: 11390 Name: Grace Maunder
Address: 210 Base Line Road Nevada City, CA
Date Explanation Debit Credit Balance
______________________________________________________________________
Dec. 2 Balance 0.00
______________________________________________________________________
Number: 11500
Name: Sierra Buttes Bunnies
Address: 10 Gold Lake Road Gold Lake, CA
Date Explanation Debit Credit Balance
______________________________________________________________________
Dec. 2 Balance 0.00
______________________________________________________________________
Number: 11700
Name: Sierra City Snowmobiles
Address: 1850 Church Street Sierra City, CA
Date Explanation Debit Credit Balance
______________________________________________________________________
Dec. 2 Balance 0.00
______________________________________________________________________
Number: 11800
Name: Emory Yonkers
Address: 1420 Miners Folley Brandy City, CA
Date Explanation Debit Credit Balance
______________________________________________________________________
Nov. 13 R0031 1,324.00 1,324.00
Dec. 4 ROO31 1,324.00 0.00
______________________________________________________________________
Answer Book
Rebel Ridge Snowmobile
Schedule of Accounts Payable
Last Activity Date: December 31, 2009
Number Name Balance
20150 Boyd Business Supply $ 383.42
21300 Douglas Janitorial 350.00
22100 Edwards Sporting Goods 6,435.00
25300 High Sierra Sports .00
27000 Prospecotor Diggins 5,535.00
28600 Sierra Buttes Sports .00
29500 Tri-City Snowmobiles 4,800.00 ----------
Total Accounts Payable $ 17,503.42 ==========
Answer Book
Vendor Data
Number: 20150
Name: Boyd Business Supply
Address: 100 Jack Avenue Eden, CA Net 10
Date Explanation Debit Credit Balance
____________________________________________________________
____________________________________________________________
Number: 21300
Name: Douglas Janitorial
Address: 240 Cedar Avenue San Juan, CA Net 30
Date Explanation Debit Credit Balance
____________________________________________________________
Dec. 2 Balance 0.00
Dec. 31 D4334 350.00 350.00
____________________________________________________________
Number: 22100
Name: Edwards Sporting Goods
Address: 100 Gold Lake Drive Graeagle, CA 2/10, n/30
Date Explanation Debit Credit Balance
____________________________________________________________
____________________________________________________________
Number: 25300
Name: High Sierra Sports
Address: 477 Alder Street Cedar Park, CA 2/10, n/30
Date Explanation Debit Credit Balance
____________________________________________________________
Nov. 30 H4230 6,231.89 6,231.89
Dec. 10 10057 H4230 6,231.89 0.00
____________________________________________________________
Number: 27000
Name: Prospecotor Diggins
Dec. 2 Balance 0.00
Dec. 3 BB671 383.42 383.42
Dec. 2 Balance 0.00
Dec. 8 E4522 8,760.00 8,760.00
Dec. 18 10059 E4522 8,760.00 0.00
Dec. 20 E4630 6,585.00 6,585.00
Dec. 23 E4630 DM001 150.00 6,435.00
Address: 2585 Moonshine Road Dobbins, CA Net 30
Date Explanation Debit Credit Balance
____________________________________________________________
Dec. 2 Balance 0.00
Dec. 11 P2792 5,535.00 5,535.00
____________________________________________________________
Number:
Name:
28600
Sierra Buttes Sports
Address: 5200 Larceny Lane Bassett, CA 1/10, n/30
Date Explanation Debit Credit Balance
____________________________________________________________
Nov. 29 S1240 8,435.55 8,435.55
Dec. 9 10056 S1240 8,435.55 0.00
____________________________________________________________
Number: 29500
Name: Tri-City Snowmobiles
Address: 100 Eagle Point Lane Alleghany, CA Net 30
Date Explanation Debit Credit Balance
____________________________________________________________
Dec. 2 Balance 0.00
Dec. 5 T2717 4,800.00 4,800.00
____________________________________________________________
Answer Book
Rebel Ridge Snowmobile
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------------------
Dec. 31 Sales 401 176,494.70 Interest Earned 711 364.35
Income Summary
Closing Entry
901 176,859.05
Dec. 31 Income Summary 901 156,839.98
Sales Returns and Allowances 402 4,312.00 Cost of Goods Sold 501 118,148.59
Transportation-In 505 1,711.90 Salaries and Wages Expense 601 14,597.60 Store Supplies Expense 602 1,191.92 Advertising Expense 604 2,360.40 Delivery Expense 606 1,071.55 Credit Card Expense 607 257.95 Deprec. Exp.- Store Fixtures 610 1,250.00
Deprec. Exp.- Office Equipment 611 375.00 Depreciation Expense, Building 612 3,550.00 Office Supplies Expense 613 729.23 Insurance Expense 622 1,080.00 Professional Services Expense 623 1,580.00 Utilties Expense 624 2,435.00
Telephone Expense 625 920.00 Bank Service Charges 627 58.00 Miscellaneous Expense 629 773.34
Interest Expense Closing Entry
811 437.50
Dec.
31
Income Summary
901
20,019.07
Retained Earnings 305 20,019.07 Closing Entry
Answer Book
Rebel Ridge Snowmobile
Post-Closing Trial Balance
December 31, 2009
Account Titles Debit Credit
---------------------------------------------------------------
Cash 46,996.93
Petty Cash 200.00
Accounts Receivable 2,613.20
Notes Receivable 33,624.00
Interest Receivable 318.75
Merchandise Inventory 104,762.21
Prepaid Insurance 3,780.00
Prepaid Rent 1,800.00
Prepaid Advertising 430.00
Store Supplies 2,135.00
Office Supplies 867.00
Store Fixtures
Accumulated Deprec., Store Fixtures
Office Equipment
Accumulated Deprec., Office Equipment
Building
Accumulated Deprec., Building
19,168.00
4,500.00
70,000.00
1,250.00
375.00
1,750.00
Accounts Payable 17,503.42
Notes Payable 25,000.00
Salaries and Wages Payable 297.60
Common Stock 225,000.00
Retained Earnings
----------
20,019.07
----------
Total 291,195.09 ==========
291,195.09 ==========
Answer Book
Rebel Ridge Snowmobile
Ledger Card
Account:
Date
101 Cash
Explanation
Debit
Credit
Balance
Dec. 2 Beginning Balance 8,820.00
Dec. 3 10055 P6604 450.63 8,369.37
Dec. 2 23339 84.40 8,453.77
Dec. 2 ERROR 23339 84.40 8,369.37
Dec. 3 R0045 13,560.00 21,929.37
Dec. 4 11800 ROO31 1,324.00 23,253.37
Dec. 9 10056 28600 S1240 8,435.55 14,817.82
Dec. 10 CMSTK 25,000.00 39,817.82
Dec. 10 10057 25300 H4230 6,231.89 33,585.93
Dec. 12 R0047 12,488.00 46,073.93
Dec. 12 10058 N4512 183.55 45,890.38
Dec. 17 10720 R0035 2,356.00 48,246.38
Dec. 18 10059 22100 E4522 8,760.00 39,486.38
Dec. 21 R0048 10,663.00 50,149.38
Dec. 24 10060 J3400 320.00 49,829.38
Dec. 24 R0049 6,128.90 55,958.28
Dec. 26 10061 NS689 560.00 55,398.28
Dec. 28 R0050 1,477.00 56,875.28
Dec. 30 10062 NTPAY 5,125.00 51,750.28
Dec. 31 10063 99066 635.00 51,115.28
Dec. 31 10064 44555 240.00 50,875.28
Dec. 31 10065 PR003 3,800.00 47,075.28
Dec. 31 BKS12 45.60 47,120.88
Dec. 31 BKS12 BKS12 123.95 46,996.93
Answer Book
Rebel Ridge Snowmobile
Ledger Card
Account: 305 Retained Earnings
Date
Dec.
Explanation
2 Beginning Balance
Debit Credit Balance
0.00
Dec. 31 Closing Entry 20,019.07 20,019.07
Answer Book
Rebel Ridge Snowmobile
Ledger Card
Account: 401 Sales
Date Explanation Debit Credit Balance
Dec. 2 Beginning Balance 113,408.80
Dec. 3 R0045 13,560.00 126,968.80
Dec. 6 11200 ROO46 18,769.00 145,737.80
Dec. 12 R0047 12,488.00 158,225.80
Dec. 21 R0048 10,663.00 168,888.80
Dec. 24 R0049 6,128.90 175,017.70
Dec. 28 R0050 1,477.00 176,494.70
Dec. 31 Closing Entry 176,494.70 0.00
Answer Book
Rebel Ridge Snowmobile
Ledger Card
Account: 501 Cost of Goods Sold
Date Explanation Debit Credit Balance
Dec. 2 Beginning Balance 73,190.80
Dec. 3 R0045 9,685.71 82,876.51
Dec. 6 11200 ROO46 13,406.43 96,282.94
Dec. 12 R0047 8,920.00 105,202.94
Dec. 15 11200 R0046 CM004 103.57 105,099.37
Dec. 21 R0048 7,616.43 112,715.80
Dec. 24 R0049 4,377.79 117,093.59
Dec. 28 R0050 1,055.00 118,148.59
Dec. 31 Closing Entry 118,148.59 0.00
Answer Book
Rebel Ridge Snowmobile
Ledger Card
Account: 601 Salaries and Wages Expense
Date Explanation Debit Credit Balance
Dec. 2 Beginning Balance 10,500.00
Dec. 31 10065 PR003 3,800.00 14,300.00
Dec. 31 Adjusting Entry 297.60 14,597.60
Dec. 31 Closing Entry 14,597.60 0.00
Answer Book
Rebel Ridge Snowmobile
Ledger Card
Account: 811 Interest Expense
Date Explanation Debit Credit Balance
Dec. 2 Beginning Balance 312.50
Dec. 30 10062 NTPAY 125.00 437.50
Dec. 31 Closing Entry 437.50 0.00
Answer Book
Rebel Ridge Snowmobile
Ledger Card
Account: 901 Income Summary
Date Explanation Debit Credit Balance
Dec. 2 Beginning Balance 0.00
Dec. 31 Closing Entry 176,859.05 176,859.05
Dec. 31 Closing Entry 156,839.98 20,019.07
Dec. 31 Closing Entry 20,019.07 0.00
Final Project Evaluation
Questions and Answers
Rebel Ridge Snowmobile Answer Book 1st Web- Based Edition
Copyright © 2010 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: April 2, 2010
FINAL EVALUATION NAME
REBEL RIDGE SNOWMOBILE CLASS DAY AND TIME DATE
1. Questions 1 to 5 refer to the Balance Sheet and General Ledger
Accounts. What is the total amount of stockholders’ equity?
$245,019.07
2. What is the balance of Retained Earnings? $20,019.07
3. What is the book value of Store Fixtures? $17,918.00
4. What is the current ratio for Rebel Ridge Snowmobile? C
A. 4.09
B. 4.26 C. 4.62
D. 4.82
5. Does Rebel Ridge Snowmobile have enough cash on hand to meet Y
current debt? Answer Y for Yes or N for No.
6. Questions 6 to 10 refer to the Schedule of Accounts Receivable
and Customer Ledger Cards: Identify by number the customer who
charged merchandise on account on December 6.
11200
7. Which customer has the smallest outstanding balance on December
31? (Identify by customer number.)
10110
8. What was the balance of Klem’s Snowmobile Klub account on
December 15th?
$18,624.00
9. How many customers currently have a balance that is past due? 2
Rebel Ridge Snowmobile extends net 30 terms to all customers. List
you answer in numeric form. (8, 11, 22, etc.)
10. The account balance of Alexander Boxer is how many days past due? 25
List you answer in numeric form. (8, 11, 22, etc.)
11. Questions 11 to 15 refer to the Schedule of Accounts Payable and
Vendor Ledger Cards: An Edwards Sporting Goods invoice was
paid in full On December 18. What was the number of the invoice
paid?
E4522
12. An Edwards Sporting Goods invoice was paid in full on December
18. What is the number of the check number used to pay this invoice?
10059
13. What was the balance owed to Edwards Sporting Goods before the
posting of the debit memo? $6,585.00
FINAL EVALUATION REBEL RIDGE SNOWMOBILE
14. If the Edwards Sporting Goods account is not paid in full within the
discount period of the outstanding invoice, what will be the total
amount of the discount lost?
$131.33
15. What was the balance of the Boyd Business Supply account on
December 31?
$383.42
16. Questions 16 to 27 refer to the Income Statement: If the
transportation-in costs had been reduced to zero through more
successful negotiation of merchandise contracts, what would be the
new Gross Profit on Sales?
$54,034.11
17. Round all percentage answers to two decimal positions (4.57689 =
4.58). Do not show a percent sign in your answer. Total Cost of
Goods Sold is what percent of Net Sales?
69.61
18. Gross Profit from Sales is what percent of Net Sales? 30.09
19. Income From Operations is what percent of Net Sales? 11.67
20. Salaries and Wages Expense is what percent of Net Sales? 8.48
21. The company goal for Salaries and Wages Expense has been set at N
7.75% of Total Net Sales. Has Rebel Ridge management met this
goal this quarter? Answer Y for Yes and N for No.
22. If total Net Sales could be increased by 5% with only a $450 increase
in Salaries and Wages Expense and a $150 increase in Advertising
Expense, what would be the new total for Income From Operations?
$28,101.36
23. A 1% increase in Net Sales combined with a 1% decrease in Total
Operating Expenses would improve the Income From Operations to
what amount?
$22,136.35
24. If an audit determined that due to "shrinkage" the Cost of Goods Sold A
was understated by $1,500, the reported Net Income of the business
be:
A. Overstated B. Understated
C. Unchanged
FINAL EVALUATION REBEL RIDGE SNOWMOBILE
25. If the Cost of Goods Sold is overstated, the Income from Operations B
will be:
A. Overstated
B. Understated
C. Unchanged
26. Rebel Ridge management wants to keep Sales Return and Allowances N
below 2% of total Sales. Have they achieved this goal this first
quarter of business operation? Answer Y for Yes or N for No.
27. Rebel Ridge Management has a goal of having their Net Income N
From Operations be at least 17.5% of the Net Sales. Have they
reached that goal this first quarter of operations? Answer Y for Yes
or N for No.
28. Questions 28 to 30 refer to the Post-Closing Trial Balance and
General Ledger: What is the account number of the last account
listed on the Rebel Ridge Snowmobile Post-Closing Trial Balance?
305
29. After closing, what is the balance of the Income Summary account D
(901)?
A. $20,019.07
B. $291,195.09
C. $46,996.93
D. $0.00
E. None of the above
30. What is the balance of the Post Closing Trial Balance? $291,195.09
Answer Book
FINAL PROJECT EVALUATION
ANSWER KEY
Rebel Ridge Snowmobile
Question Your
Number Answer
----------------------------------------------------------------------
1. Questions 1 to 5 refer to the Balance Sheet and $245,019.07
General Ledger Accounts. What is the total amount
of stockholders’ equity?
2. What is the balance of Retained Earnings? $20,019.07
3. What is the book value of Store Fixtures? $17,918.00
4. What is the current ratio for Rebel Ridge C
Snowmobile?
A) 4.09
B) 4.26
C) 4.62
D) 4.82
5. Does Rebel Ridge Snowmobile have enough cash on Y
hand to meet current debt? Answer Y for Yes or N
for No.
6. Questions 6 to 10 refer to the Schedule of 11200
Accounts Receivable and Customer Ledger Cards:
Identify by number the customer who charged
merchandise on account on December 6.
7. Which customer has the smallest outstanding 10110
balance on December 31? (Identify by customer
number)?
8. What was the balance of Klem’s Snowmobile Klub $18,624.00
account on December 15th?
9. How many customers currently have a balance that 2
is past due? Rebel Ridge Snowmobile extends net
30 terms to all customers. List your answer in
numeric form. (8, 11, 22, etc.)
10. The account balance of Alexander Boxer is how 25
many days past due? List your answer in numeric
form. (8, 11, 22, etc.)
11. Questions 11 to 15 refer to the Schedule of E4522
Accounts Payable and Vendor Ledger Cards: An
Edwards Sporting Goods invoice was paid in full
On December 18. What was the number of the
invoice paid?
12. An Edwards Sporting Goods invoice was paid in
full on December 18. What is the number of the
check used to pay the invoice?
10059
13. What was the balance owed to Edwards Sporting $6,585.00
Goods before the posting of the debit memo?
14. If the Edwards Sporting Goods account is not paid $131.33
in full within the discount period of the
outstanding invoice, what will be the total
amount of the discount lost?
15. What was the balance of the Boyd Business Supply
account on December 31?
$383.42
16. Questions 16 to 27 refer to the Income Statement:
If the transportation-in costs had been reduced
to zero through more successful negotiation of
merchandise contracts, what would be the new
Gross Profit on Sales?
$54,034.11
17. Round all percentage answers to two decimal
positions (4.57689 = 4.58). Do not show the
percent sign in your answer. Total Cost of Goods
Sold is what percent of Net Sales?
69.61
18. Gross Profit from Sales is what percent of Net
Sales?
30.09
19. Income From Operations is what percent of Net
Sales?
11.67
20. Salaries and Wages Expense is what percent of Net
Sales?
8.48
21. The company goal for Salaries and Wages Expense N
has been set at 7.75% of Total Net Sales. Has
Rebel Ridge management met this goal this
quarter? Answer Y for Yes and N for No.
22. If total Net Sales could be increased by 5% with $28,101.36
only a $450 increase in Salaries and Wages
Expense and a $150 increase in Advertising
Expense, what would be the new total for Income
From Operations?
23. A 1% increase in Net Sales combined with a 1% $22,136.35
decrease in Total Operating Expenses would
improve the Income From Operations to what
amount?
24. If an audit determined that due to `shrinkage` A
the Cost of Goods Sold was understated by $1,500,
the reported Net Income of the business be:
A) Overstated
B) Understated
C) Unchanged
25. If the Cost of Goods Sold is overstated, Gross B
Profit and Income will be:
A) Overstated
B) Understated
C) Unchanged
26. Rebel Ridge Management wants to keep Sales Return N
and Allowances below 2% of total Sales. Have
they achieved this goal this first quarter of
business operation? Answer Y for Yes or N for
No.
27. Rebel Ridge Management has a goal of having their N
Net Income From Operations be at least 17.5% of
the Net Sales. Have they reached that goal this
first quarter of operations? Answer Y for Yes or
N for No.
28. Questions 28 to 30 refer to the Post-Closing 305
Trial Balance and General Ledger: What is the
account number of the last account listed on the
Rebel Ridge Snowmobile Post-Closing Trial
Balance?
29. After closing, what is the balance of the Income D
Summary account (901)?
A) $20,019.07
B) $291,195.09
C) $46,996.93
D) $0.00
E) None of the above
30. What is the correct balance of the Post Closing $291,195.09
Trial Balance?
