Trial BalancePre-Adjusted Trial BalanceDecember 31, 2012AccountDescriptionDebitCredit1100Cash - Operating Account138,763.851110Cash - Payroll10.001130Petty Cash0.01200Accounts Receivable164,400.001205Allowance for Doubtful Accounts1,600.001230Interest Receivable0.01240Notes Receivable63,051.891300Inventory82,500.001410Prepaid Insurance12,660.001500Fixed Assets - Furniture & Fixtures265,500.001505Accumulated Depreciation-Fixed Assets34,750.002100Accounts Payable49,680.002150Federal Withholding Payable0.02160FICA Payable0.02165Medicare payable0.02170FUTA Payable0.02180TX state SUTA payable0.02190Interest Payable0.02200Federal Income Tax Payable0.02220Current N/P to banks43,660.192700Notes Payable to Banks106,375.612710Other Liabilities75,000.003100Common Stock5,000.003120Additional Paid-In Capital-Common Stock495,000.003200Retained Earnings48,813.564100Sales563,400.004180Sales Discount720.004190Sales Returns3,000.004500Cost of Goods Sold337,500.004700Shrinkage and Waste0.04800Freight and Handling4,725.005100Accounting Fees38,000.005200Advertising Expense1,500.005300Bad Debts Expense0.05400Bank Fees275.005600Depreciation Expense45,000.005700Dues & Subscription550.005800Employee Benefits125.005900Insurance1,375.006000Legal Fees7,600.006100Life Insurance - Administration0.06250Postage0.06300Rent Expense27,000.006400Repairs & Maintenance Expense1,500.006500Salaries and Wages198,000.006600Supplies0.06700Telephone & Utilities5,830.008000Taxes - Federal Income0.08100Taxes - FUTA Expense1,326.008200Taxes - FICA Expense12,276.008250Taxes - Medicare Expense3,132.008400Taxes - SUTA Expense990.009000Interest Expense5,969.629100Interest Income0.09200Miscellaneous Income/Expense0.01,423,279.361,423,279.360.0

&L&F&C&A

Trial Balance_EndingTrial BalanceDecember 31, 2012AccountDescriptionDebitCredit1100Cash - Operating Account138,738.851110Cash - Payroll10.001130Petty Cash0.01200Accounts Receivable164,400.001205Allowance for Doubtful Accounts1,644.001230Interest Receivable0.01240Notes Receivable63,322.731300Inventory81,000.001410Prepaid Insurance11,605.001500Fixed Assets - Furniture & Fixtures283,500.001505Accumulated Depreciation-Fixed Assets34,750.002100Accounts Payable51,680.002150Federal Withholding Payable0.02160FICA Payable0.02165Medicare payable0.02170FUTA Payable0.02180TX state SUTA payable0.02190Interest Payable6,000.002200Federal Income Tax Payable0.02220Current N/P to banks43,660.192700Notes Payable to Banks106,375.612710Other Liabilities75,000.003100Common Stock5,000.003120Additional Paid-In Capital-Common Stock495,000.003200Retained Earnings48,813.564100Sales563,400.004180Sales Discount720.004190Sales Returns3,000.004500Cost of Goods Sold337,500.004700Shrinkage and Waste1,500.004800Freight and Handling4,725.005100Accounting Fees20,000.005200Advertising Expense3,500.005300Bad Debts Expense44.005400Bank Fees300.005600Depreciation Expense27,000.005700Dues & Subscription550.005800Employee Benefits1,500.005900Insurance640.006000Legal Fees7,600.006100Life Insurance - Administration415.006250Postage0.06300Rent Expense27,000.006400Repairs & Maintenance Expense1,500.006500Salaries and Wages216,000.006600Supplies0.06700Telephone & Utilities5,830.008000Taxes - Federal Income0.08100Taxes - FUTA Expense210.008200Taxes - FICA Expense13,392.008250Taxes - Medicare Expense3,132.008400Taxes - SUTA Expense990.009000Interest Expense11,969.629100Interest Income0.0270.839200Miscellaneous Income/Expense0.01,431,594.201,431,594.19(0.01)

&L&F&C&A

General Ledger - StudentsGeneral LedgerAccount 1100Cash - Operating AccountRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1351,811.09351,811.091230CD345,275.356,535.741230CR132,228.11138,763.8512312A) Bank fee appliedCD25138,738.8512312D) 12/31 ReversalGJ61,948.11136,790.7412312D) Correct Notes ReceivableGJ61948.11138,738.85Account 1110Cash - PayrollRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ110.0010.001230PR14,518.0014,508.001230CD14,518.0010.00Account 1130Account not used0.0Account 1200Accounts ReceivableRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1160,000.00160,000.001230SJ135,400.00295,400.001230CR131,000.00164,400.00Account 1205Allowance for Doubtful AccountsRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ11,600.001,600.0012312C) Allowance for Bad DebtGJ644.001,644.001,644.00Account 1230Interest ReceivableRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.00Account 1240Notes ReceivableRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.00121CD65,000.0065,000.001231CR1,948.1163,051.8912312D) 12/31 ReversalGJ71,948.1165,000.0012312D) Correction Notes ReceivableGJ81,677.2763,322.73Account 1300InventoryRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ131,000.0031,000.001230SJ76,000.0045,000.001230PJ127,500.0082,500.0012312E) Reduce Inventory I10GJ71,500.0081,000.00Account 1410Prepaid InsuranceRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.001230CD12,660.0012,660.0012312F) Expense prepaid insuranceGJ81,055.0011,605.00Account 1500Fixed Assets - Furniture and FixturesRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1265,500.00265,500.0012312G) Add new asset and reverse accounting feeGJ918,000.00283,500.00Account 1505Accumulated Depreciation Fixed AssetsRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ17,750.007,750.001230GJ227,000.0034,750.00Account 2100Accounts PayableRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1110,000.00110,000.001230PR375.00110,375.001230PJ177,180.00287,555.001230CD237,875.0049,680.0012312H) Reverse incorrect Ad BillGJ111,500.0048,180.0012312H) Correct Ad BillGJ113,500.0051,680.00Account 2140ACCOUNT NOT ACTIVEAccount 2150Federal Withholding PayableRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.001230PR1,730.001,730.001230CD1,730.000.00Account 2160FICA PayableRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.001230PR1,116.001,116.001230CD1,116.000.00Account 2165Medicare PayableRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.001230PR261.00261.001230CD261.000.00Account 2170FUTA PayableRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.00Account 2180TX State SUTA PayableRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.00Account 2190Interest PayableRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.0012302L - To Accrue Expense for Credit LineGJ136,000.006,000.00Account 2200Federal Income Tax PayableRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.00Account 2210ACCOUNT NOT IN USEAccount 2220Current NP to BanksRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ143,660.1943,660.19Account 2700Notes Payable to BanksRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1109,567.05109,567.051230CD3,191.44106,375.61Account 2710Other LiabilitiesRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ175,000.0075,000.00Account 3100Common StockRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ15,000.005,000.00Account 3120Additional Paid-In Capital - CSRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1495,000.00495,000.00Account 3200Retained EarningsRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ148,813.5648,813.56Account 4100SalesRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1425,000.00425,000.001230SJ138,400.00563,400.00Account 4180Sales DiscountRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward1230CR720.00720.00Account 4190Sales ReturnsRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward1230SJ3,000.003,000.00Account 4500Cost of Goods SoldRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1261,500.00261,500.001230SJ76,000.00337,500.00Account 4700Shrinkage and WasteRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward12312E) Reduce Inventory I10GJ71,500.001,500.00Account 4800Freight and HandlingRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.001230CD4,725.004,725.00Account 5100Accounting FeesRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.001231PJ18,000.0018,000.001231PJ20,000.0038,000.0012312G) Add new asset and reverse accounting feeGJ918,000.0020,000.00Account 5200Advertising ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.001230PJ1,500.001,500.0012312H) Reverse incorrect Ad BillGJ111,500.000.012312H) Correct Ad BillGJ113,500.003,500.00Account 5300Bad Debts ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.0012312C) Allowance for Bad DebtGJ644.0044.00Account 5400Bank FeesRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward275.00275.0012312A) Bank fee appliedCD25.00300.00Account 5600Depreciation ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ10.00.001230PR18,000.0018,000.001230GJ227,000.0045,000.0012312G) Fix salaries and reverse depreciationGJ1018,000.0027,000.00Account 5700Dues & SubscriptionRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.001215PJ550.00550.00Account 5800Employee BenefitsRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ10.00.001230CD125.00125.0012311B-Correct GJ1GJ31,375.001,500.00Account 5900InsuranceRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ11,375.001,375.0012311B-Correct GJ1GJ31,375.000.0012312F) Expense prepaid insuranceGJ8640.00640.00Account 6000Legal FeesRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.001230PJ7,600.007,600.00Account 6100Life Insurance - AdministrationRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.0012312F) Expense prepaid insuranceGJ8415.00415.00Account 6250PostageRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.00Account 6300Rent ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ124,750.0024,750.001230CD2,250.0027,000.00Account 6400Repairs & Maintenance ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.001215PJ1,500.001,500.00Account 6500Salaries and WagesRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1198,000.00198,000.0012312G) Fix salaries and reverse depreciationGJ1018,000.00216,000.00Account 6600SuppliesRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.00Account 6700Telephone & UtilitiesRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ15,300.005,300.001215PJ530.005,830.00Account 8000Taxes - Federal IncomeRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.00Account 8100Taxes - FUTA ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1210.00210.001230CD1,116.001,326.0012302I) Correct for FICA mispostingGJ121,116.00210.00Account 8200Taxes - FICA ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ112,276.0012,276.0012302I) Correct for FICA mispostingGJ121,116.0013,392.00Account 8250Taxes - Medicare ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ12,871.002,871.001230CD261.003,132.00Account 8300Account Not in UseAccount 8400Taxes - SUTA ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ1990.00990.00Account 9000Interest ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance ForwardGJ15,522.715,522.711230CD446.915,969.6212302L - To Accrue Expense for Credit LineGJ136,000.0011,969.62Account 9100Interest IncomeRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.0012312D) Correction Notes ReceivableGJ8270.83270.83Account 9200Miscellaneous Income/ExpenseRefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.00

&L&F; &A&CPage &P of &N

General JournalGeneral JournalDateGL Acct#ExplanationPostedRefDebitCreditGJ11100Cash - Operating Account351,811.091110Cash - Payroll10.001200Accounts Receivable160,000.001205Allowance for Doubtful Accounts1,600.001300Inventory31,000.0029,500.001500Fixed Assets - Furniture and Fixtures265,500.00283,500.001505Accumulated Depreciation-Fixed Assets7,750.002100Accounts Payable110,000.002220Current N/P to banks43,660.192700Notes Payable to Banks109,567.052710Other Liabilities75,000.003100Common Stock5,000.003120Additional Paid-In Capital-Common Stock495,000.003200Retained Earnings48,813.564100Sales425,000.004500Cost of Goods Sold261,500.005400Bank Fees275.005900Employee Benefits1,375.006300Rent Expense24,750.006500Salaries and Wages198,000.006700Telephone & Utilities5,300.008100Taxes - FUTA Expense210.008200Taxes - FICA Expense12,276.008250Taxes - Medicare Expense2,871.008400Taxes - SUTA Expense990.009000Interest Expense5,522.71109,4201,321,390.801,321,390.80To input beginning balances. Input by GL ClerkGJ212305600Depreciation Expense27,000.001505Accumulated Depreciation27,000.0027,000.0027,000.007,105To record 2007 Depreciation Expense per Fixed Asset SubledgerGJ312315800Employee Benefits1,375.005900Insurance1,375.001B) Correct GJ11,375.001,375.00GJ412315400Bank Fees25.001100Cash-Operating Acct25.002A) Bank fee applied25.0025.00GJ512315300Bad Debt Expense44.001205Allowance for Doubtful Accounts44.002C) Allowance for Bad Debt44.0044.00GJ612311240Notes Receivable1948.111100Cash-Operating Account1948.112D) 12/31 Reversal12311100Cash-Operating Account1948.111240Notes Receivable1677.279100Interest Income270.832D) Correction Notes Receivable3896.223896.21GJ712314700Shrinkage and Waste Account1,500.001300Inventory1,500.002E) Match physical inventory and books1,500.001,500.00GJ812315900Insurance640.006100Life Insurance-Admin415.001410Prepaid Insurance1,055.002F) Expense prepaid insurance1,055.001,055.00GJ912311500Fixed Assets- Furniture and Fixtures18,000.005100Accounting Fees18,000.002G) Add new asset and reverse accounting fee18,000.0018,000.00GJ1012316500Salaries and Wages18,000.005600Depreciation Expense18,000.002G) Fix salaries and reverse depreciation18,000.0018,000.00GJ1112312100Accounts Payable1,500.005200Advertising Expense1,500.001,500.001,500.005200Adversiting Expense3,500.002100Accounts Payable3,500.002H) To Reserve and Correct Incorrect Advertising J/E3,500.003,500.00GJ1212318200FICA Expense1,116.008100FUTA Expense1,116.002I) Correct for FICA misposting1,116.001,116.00GJ131231Interest Expense6000Interest Payable60002LTo Accure Interest on Credit Line6,000.006,000.00

&L&F; &A&CPage &P of &NHash Total

Subsidiary Ledger-ARAccount Receivable Subsidiary LedgerAccounts Receivable Account 1200C 10Customer 10Credit Terms: 2/10, Net 30Credit Limit: $50,000RefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward (from October)56,000.001210CR25,000.0031,000.000.012312B) Fix Customer 10SJ9,400.0040,400.00C 20Customer 20Credit Terms: 2/10, Net 30Credit Limit: $60,000RefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward (from November)47,000.001215CR25,000.0022,000.001228Inv 1205SJ24,000.0046,000.001230CM 01SJ3,000.0043,000.00C 30Customer 30Credit Terms: 2/10, Net 30Credit Limit: $75,000RefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward (from November)45,000.00123CR45,000.000.0125Inv 1202SJ48,000.0048,000.00C40Customer 40Credit Terms: 3/10, Net 30Credit Limit: $45,000RefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward (from November)12,000.00122Inv 1201SJ24,000.0036,000.00125CR36,000.000.01210Inv 1203SJ33,000.0033,000.00

&L&F; &A

Subsidiary Ledger-InventoryInventory Subsidiary LedgerInventory Account 1300I 10Item 10Preferred Vendor: Vendor 30Current Cost: $1,500QuantityStock ItemRefDebitCreditDebit BalanceCredit BalanceDebitCreditDebit BalanceCredit BalanceDec1Balance Forward6,000.004.0081,000.00123PJ15,000.0021,000.0010.0014.001220SJ6,000.0015,000.004.0010.0012312E) Reduce InventoryGJ71,500.0013,500.0019.00I 20Item 20Preferred Vendor: Vendor 30Current Cost: $1,500QuantityStock ItemRefDebitCreditDebit BalanceCredit BalanceDebitCreditDebit BalanceCredit BalanceDec1Balance Forward7,500.005.00123PJ15,000.0022,500.0010.0015.001210SJ18,000.004,500.0012.003.00I 30Item 30Preferred Vendor: Vendor 30Current Cost: $2,000QuantityStock ItemRefDebitCreditDebit BalanceCredit BalanceDebitCreditDebit BalanceCredit BalanceDec1Balance Forward14,000.007.00123PJ10,000.0024,000.005.0012.001228SJ12,000.0012,000.006.006.0012312E) Add/CorrectSJ12,000.000.060.0I 40Item 40Preferred Vendor: Vendor 30Current Cost: $3,500QuantityStock ItemRefDebitCreditDebit BalanceCredit BalanceDebitCreditDebit BalanceCredit BalanceDec1Balance Forward3,500.001.00123PJ35,000.0038,500.0010.0011.0075,000.00125SJ28,000.0010,500.008.003.00126PJ52,500.0063,000.0015.0018.00

&L&F; &A

Subsidiary Ledger-Fixed AssetsFixed Asset Subsidiary LedgerFixed Assets - Furnitures and Fixtures Account 1500Item 10F10Purchase Date:September 1, 2011Depreciation Method:Straight LineAnnual Depreciation$22,500.00Disposal Date:n/aSalvage Value:$20,000.00Useful Life (years)8Accumulated DepreciationVendor:Vendor 20RefDebitCreditDebit BalanceCredit BalanceDebitCreditDebit BalanceCredit BalanceDec1Balance Forward200,000.007,500.007,500.001230GJ22,500.0030,000.0034,750.00ad283,500.00Item 20F20Purchase Date:December 1, 2011Depreciation Method:Straight LineAnnual Depreciation$3,000.00Disposal Date:n/aSalvage Value:$500.00Useful Life (years)5Accumulated DepreciationVendor:Vendor 20RefDebitCreditDebit BalanceCredit BalanceDebitCreditDebit BalanceCredit BalanceDec1Balance Forward15,500.00250.00250.001230GJ3,000.003,250.00Item 30F30Purchase Date:October 1, 2012Depreciation Method:Straight LineAnnual Depreciation$4,500.00Disposal Date:n/aSalvage Value:5000Useful Life (years)10Accumulated DepreciationVendor:Vendor 20RefDebitCreditDebit BalanceCredit BalanceDebitCreditDebit BalanceCredit BalanceDec1Balance Forward50,000.001230GJ1,125.001,125.00Item 40F40Purchase Date:December 1, 2012Depreciation Method:Straight LineAnnual Depreciation$4,500.00Disposal Date:n/aSalvage Value:0Useful Life (years)4Accumulated DepreciationVendor:Vendor 20RefDebitCreditDebit BalanceCredit BalanceDebitCreditDebit BalanceCredit BalanceDec1Balance Forward1230PJ18,000.0018,000.001230GJ375.00375.00

&L&F; &A

Subsidiary Ledger-APAccount Payable Subsidiary LedgerAccounts Payable Account 2100V10Vendor 10Credit Terms: Net 30 daysMedical Insurance VendorCredit Limit: $5,000RefDebitCreditDebit BalanceCredit Balance51,680.00Dec1Balance Forward0.01230PR375.00375.001230CD375.000.0V20Vendor 20Credit Terms: 2/10, Net 30Fixed Asset VendorCredit Limit: $150,000RefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward122PJ18,000.0018,000.00V30Vendor 30Credit Terms: 2/10, Net 30Inventory VendorCredit Limit: $150,000RefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward110,000.00121CD110,000.000.0123PJ75,000.0075,000.00126PJ52,500.00127,500.001215CD127,500.000.0V40Vendor 40Credit Terms: 2/10, Net 30General Supplies & Misc. VendorsCredit Limit: $75,000RefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.01215Repair Bill V 810PJ1,500.001,500.001215Dues V 907PJ550.002,050.001230Advertising Bill VA01PJ1,500.003,550.0012312H) Reverse incorrect Ad BillGJ1115002,050.0012312H) Correct Ad BillGJ1135005,550.00V50Vendor 50Credit Terms: Net 30Accounting VendorCredit Limit: $75,000RefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.01230Accounting Bill V 222PJ20,000.0020,000.00V60Vendor 60Credit Terms: Net 30Legal VendorCredit Limit: $75,000RefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.01230Legal Bill V723PJ7,600.007,600.00V70Vendor 70Credit Terms: Net 30Telephone and Utilities VendorCredit Limit: $75,000RefDebitCreditDebit BalanceCredit BalanceDec1Balance Forward0.01215Utilities Bill V654PJ530.00530.00

&L&F; &A&CPage &P of &N

Subsidiary Ledger - Wages&SalSalaries and Wages Subsidiary LedgerSalaries and Wages Account 6500Salaried: $3,500 per month; Firm pays 25% of medical insuranceP10W-4 Filed, Married, 0$236.00 / period0.0620.0145$105/periodEmployee 10RefGrossFederal W/HSocial SecurityMedicareMedical InsuranceNet PayCheck #Dec1Balance ForwardPR38,500.002,596.002,387.00558.251,155.0031,803.751230PR3,500.00236.00217.0050.75105.002,891.2510452011 Total42,000.002,832.002,604.00609.001,260.0034,695.00Zero Balance Check:42000-2832-2604-609-1260-34695Salaried: $4000 per month; Firm pays 25% of medical insuranceP20W-4 Filed, Married, 2$217.00 / period0.0620.0145$105Employee 20RefGrossFederal W/HSocial SecurityMedicareMedical InsuranceNet PayCheck #Dec1Balance ForwardPR44,000.002,387.002,728.00638.001,155.0037,092.001230PR4,000.00217.00248.0058.00105.003,372.0010462011 Total48,000.002,604.002,976.00696.001,260.0040,464.00Zero Balance Check:+48000-2604-2976-609-1260-40464Salaried: $5,000 per month; Firm pays 25% of medical insuranceP30W-4 Filed, Single 0$851.00 / period0.0620.0145$60Employee 30RefGrossFederal W/HSocial SecurityMedicareMedical InsuranceNet PayCheck #Dec1Balance ForwardPR55,000.009,361.003,410.00797.50660.0040,771.501230PR5,000.00851.00310.0072.5060.003,706.5010472011 Total60,000.0010,212.003,720.00870.00720.0044,478.00Zero Balance Check:60000-10212-3720-870-720-44478Salaried: $5,500 per month; Firm pays 25% of medical insuranceP40W-4 Filed, Married 4$426.00 / period0.0620.0145$105Employee 40RefGrossFederal W/HSocial SecurityMedicareMedical InsuranceNet PayCheck #Dec1Balance ForwardPR60,500.004,686.003,751.00877.251,155.0050,030.751230PR5,500.00426.00341.0079.75105.004,548.2510482011 Total66,000.005,112.004,092.00957.001,260.0054,579.00Zero Balance Check:66000-5122-4092-957-1260-54579216,000.0013,392.003,132.00

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Sales JournalSales JournalDEBITCREDITDateDescriptionInvoice/ Credit Memo #A/R Subsidiary AcctPostedRefAccounts ReceivableSales ReturnCOGSInventory Subsidiary AcctPostedRefInventorySales12004190450013004100122Customer 401201C4024,000.0012,000.00I3012,000.0024,000.00125Customer 301202C3048,000.0028,000.00I4028,000.0048,000.001210Customer 401203C4033,000.0018,000.00I2018,000.0033,000.001220Customer 101204C109,400.006,000.00I106,000.009,400.001228Customer 201205C2024,000.0012,000.00I3012,000.0024,000.001230Customer 20CM01C20(3,000.00)3,000.00Total135,400.003,000.0076,000.0076,000.00138,400.00Zero Balance Check:135,400+3,000-138,400 = 076,000-76,000 = 0

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Cash Receipts JournalCash Receipts JournalDEBITCREDITDateDescriptionCashSales DiscountAccounts Receivable 1200Other Account11004180A/R Subsidiary AcctAmountPostedRefGL Acct #AmountPostedRef123Customer 3045,000.00C3045,000.00125Customer 4035,280.00720.00C4036,000.001210Customer 1025,000.00C1025,000.001215Customer 2025,000.00C2025,000.001231Note Payment1,948.1112401,948.11Total132,228.11720.00131,000.001,948.11Zero Balance Check:0 = 132,228.11+720-131,000-1948.11

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Purchases JournalPurchases JournalDEBITCREDITOther AcctACCOUNTS PAYABLE - 2100DateVendorVendor Invoice #Inventory1300GL Acct #AmountPosted RefA/P Subs. Acct #AmountPosted Ref121Vendor 20 - Fixed AssetV123150018,000.00V2018,000.00l123Vendor 30V45675,000.00V3075,000.00l10 Units - Item 10, 10 Units - Item 20, 5 Units-Item 30, 10 Units item 40126Vendor 30V45752,500.00V3052,500.00l15 Units - Item 401215Repair BillV81064001,500.00V401,500.00l1215DuesV9075700550.00V40550.00l1215Phone BillV6546700530.00V70530.00l1230Accounting BillV222510020,000.00V5020,000.00l1230Advertising BillVA0152001,500.00V401,500.00*1230Legal BillV72360007,600.00V607,600.00lTotal127,500.0049,680.00177,180.00Zero Balance Check:0=127,500+49,680-177,180

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Cash Disbursement JournalCash Disbursement JournalCREDITDEBITACCOUNTS PAYABLE - 2100Other AccountsOther AccountsDateCheck #DescriptionCash1100A/P Subs. Acct #AmountPosted RefGL Acct #AmountPosted RefGL Acct #AmountPosted Ref1212010Vendor 30110,000.00V30110,000.001212011Loan (Promissory Note)65,000.00124065,000.001252012Insurance (Life, General)12,660.00141012,660.0012152013Vendor 30127,500.00V30127,500.0012302014Freight Bill4,725.0048004,725.0012302015Rent2,250.0063002,250.001230n/aTransfer to Payroll14,518.00111014,518.0012302016Federal Withholding1,730.0021501,730.0012302017FICA2,232.0021601,116.0082001,116.0012302018Medicare522.002165261.008250261.0012302019Medical Insurance500.00V10375.005800125.0012302020First Bank (Note Payable)3,638.3527003,191.449000446.91345,275.35237,875.00105,576.441,823.91Zero Balance Check:0=345,275.35-237,875-105,576.44-1823.91

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Payroll JournalPayroll JournalDEBITCREDITDateEmployeeNamePostedRefGross PayFederal WithholdingFICA(6.2%)Medicare Withheld(1.45%)Medical Insurance$80 Single$140 MarriedFirm pays 25%Net PayCheck No.Acct #650021502160216521001110EMPLOYEE:1230Employee 103,500.00236.00217.0050.75105.002,891.2510451230Employee 204,000.00217.00248.0058.00105.003,372.0010461230Employee 305,000.00851.00310.0072.5060.003,706.5010471230Employee 405,500.00426.00341.0079.75105.004,548.251048Total18,000.001,730.001,116.00261.00375.0014,518.00Zero Balance Check:Posted to Subledger V100=18,000-1,730-1,116-261-375-14518216,000.0013,392.003,132.00

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DEC Bank Rec-OperatingStudent CompanyAR Aging ReportDecember 31, 2012BankFirst Bank: Payroll A/C #5551235StatementGeneral LedgerUnadjusted Bank Balance, 12/31/12148,749.74138,763.85Add:Deposit in Transit:1,948.11Deduct:Outstanding Checks:Check#Amount2014472520152250201722322018522201950020161730(11,959.00)Adjustments:(25.00)Adjusted Balance, 12/31/12138,738.85138,738.85

DEC Bank Rec-PayrollStudent CompanyAR Aging ReportDecember 31, 2012BankFirst Bank: Payroll A/C #5551235StatementGeneral LedgerUnadjusted Bank Balance, 12/31/124,558.2510.00Add:Deduct:Outstanding Checks:Check#Amount10484548.25(4,548.25)Adjustments:Adjusted Balance, 12/31/121010

DEC AR Aging ReportStudent CompanyAR Aging ReportDecember 31, 2012Student CompanyAccounts Receivable Aging ReportDecember 31, 2012CustomerTotal Due0-30 Days31-60 Days61-90 Days>90 DaysCustomer 10$40,400.00$9,400.00$31,000.00Customer 20$43,000.00$21,000.00$22,000.00Customer 30$48,000.00$48,000.00Customer 40$33,000.00$33,000.00Total$164,400.00$111,400.00$22,000.00$31,000.000.0

DEC Inventory ReconciliationStudent CompanyInventory Reconciliation ReportDecember 31, 2012ItemQTYCOSTTOTALItem 109$1,500.00$13,500.00Item 203$1,500.00$4,500.00Item 300$2,000.000.0Item 4018$3,500.00$63,000.00TOTAL30$81,000.00

DEC Fixed Assets ReportStudent CompanyFixed Asset ReportDecember 2012ItemCostAccumulated DepreciationNBVItem 10$200,000.0030,000.00$170,000.00Item 2015,500.003,250.00$12,250.00Item 3050,000.001,125.00$48,875.00Item 4018,000.00375.00$17,625.00Total$283,500.00$34,750.00$248,750.00General Ledger Balance A/C 1500 Fixed Assets:$283,500.00General Ledger Balance A/C 1505 Accumulated Depreciation:$34,750.00Subsidiary Ledger Agrees w/General LedgerAccumalted Depreciation - Year to Date$34,750.00Accumulated Depreciation - Deginning of Year$(7,750.00)Difference = Depreciatioin Expense for Year$27,000.00

DEC AP Aging ReportStudent CompanyAccounts Payable ReportDecember 31, 2012AccountsTotal Due0-30 Days31-60 Days61-90 Days>90 DaysVendor 20$18,000.00$18,000.00Vendor 405,550.005,550.00Vendor 5020,000.0020,000.00Vendor 607,600.007,600.00Vendor 70530.00530.00$51,680.00$51,680.000.00.00.0