working

*Enter your name, access code, and CRN below and then click the Activate button.This file is NOT to be shared with any person as it is specifically linked with your name.

Date: 4/7/2023

Name: Renee

Access Code: 2012300276

CRN: 30108

Davenport University Activation was successful.

ACCT202 Practice Set *Click the following buttons to go to the corresponding worksheets:

Ver. 5.1, 2011-12Summer 2012

Instructions

Academic Integrity

Products

Chart of Accounts - GL

Chart of Accounts - AR

Chart of Accounts - AP

Purchases Journal

Cash Receipts Journal

Cash Payments Journal

General Journal Pg 1



General Ledger

A/R Sub-Ledger

A/P Sub-Ledger

Worksheet

Inventory Control Card

Transactions

ACTIVATE

Sales Journal

Login Student Access Code Course LoginDate Name Number CRN Date4/7/2023 Renee 2012300276 30108 6/14/2012

Company Background & Scenario

Project Overview & InstructionsA. Overview

B. General Instructions

c. These project instructions will not address every detail of every task. If you have questions, ask your instructor.

e. If rounding is required, round to the nearest cent. For example, $96.835 would be entered as $96.84.

g. Refer to the project rubric to determine how components of the project will be assessed.

C. Submission Requirements

D. Credit Terms & Inventory Accounting

E. Financial Accounting Steps:

b. At the end of the month, post each entry in the general journal to the general ledger.

d. When posting is completed, bring the balance in each general ledger account up to date.e. When posting is completed, bring the balance in each subsidiary ledger account up to date.

i. Update general ledger account balances after posting adjusting journal entries.

The AC Speed Company is a well-established, publicly-held corporation, operating as a wholesaler in the auto parts industry. Specifically, AC Speed purchases auto parts from manufacturers and sells them to large business customers. Most purchases and sales are on account, with trade credit terms (specified below).

You’re a Davenport University student pursuing a bachelor’s degree in business and employed at the AC Speed Company this semester as an intern. You’ve worked in various departments and on several projects so far, learning a lot about the company’s business operations. Management seems impressed with your enthusiasm and the quality of your work.

The company’s accountant has just been called away for a family emergency and will likely be absent for a month or so. The General Manager asks you to take over the accountant’s regular duties on an interim basis. You’re nervous about doing so, but are confident that what you’ve learned in accounting class, plus your personal problem-solving skills, will make this a successful experience. What a great learning opportunity, not to mention an enhancement to your resume!

a. Part 1 is a financial accounting activity that requires you to record various business transactions during the month, close the accounting records at the end of the month, and prepare the financial statements. These tasks relate to the steps in the accounting cycle that you learned in your first accounting course.`

b. Part 2 is an activity that requires you to analyze the company’s year-end financial statements to assist management in assessing the company’s position and making decisions about its future direction.

c. This is an individual, not a team, project. While you may discuss this project with others, you must prepare and submit your own work. Refer to the Academic Integrity Statement in the project workbook.

d. Before starting work, review the entire project: all instructions, business transactions descriptions, workbook sections, check figures, due dates, and submission requirements.

a. The parts of this project, including specific business transactions and steps in the accounting cycle, must be completed in sequence. This is particularly important with business transactions relating to purchases and sales of inventory.

b. As you work on parts of the project, you will note references to pages or sections of your accounting textbooks that will provide examples or explanations related to that task. You are also encouraged to use your textbook’s table of contents (front) or index (back) to locate helpful references.

d. Most of your work for this project will be accomplished in Excel. A basic skill level in this application is expected. That is, you should be able to such things as move around in a workbook, enter data in cells, use the sum function, compose basic formulas, and save your work.

f. Use the check figures provided to check your work as you progress through the project. Investigate any discrepancies and correct them as you go along.

h. Appearance counts! Pay attention to the format, to spelling, and to other details of appearance. This reflects on management’s perception of you as a professional.

a. Final submission of all parts of this project must be in electronic (not paper) form. That is, you will submit your completed work via an assignment link in a Blackboard course site or via an email attachment. Follow your instructor’s directions.

b. Save backup copies of your work. If you have multiple versions of the project, clearly label them for your own reference and to ensure that you submit the appropriate version to your instructor.

c. You must read the academic integrity statement in the project workbook and enter your student ID number on the form to signify your agreement with and adherence to that statement. Final project submissions will not be accepted without this.

d. Due dates for the parts of this project will be provided by your instructor in the course syllabus, in the Blackboard course site, or in a designated handout. Be sure to enter these on your personal calendar and plan your work on this project accordingly.

a. When AC Speed purchases merchandise from a supplier or vendor on account, they receive credit terms of 3/10, net 30.

b. When AC Speed sells merchandise to a customer on account, they offer that customer credit terms of 3/10, net 45.

c. AC Speed accounts for the specific types of merchandise in their inventory with a set of subsidiary ledgers (inventory control cards). The balances in these subsidiary ledger records, in total, must equal the balance in the Merchandise Inventory account in the general ledger.

d. AC Speed uses a perpetual inventory accounting system and a first-in, first-out (FIFO) inventory costing method.

e. Subsidiary ledger records are kept for each customer and for each vendor. The balances in the customer subsidiary ledger records, in total, must equal the Accounts Receivable account balance in the general ledger. The balances in the vendor subsidiary ledger records, in total, must equal the Accounts Payable account balance in the general ledger.

a. Record each business transaction, in sequence by date, in the appropriate special journal or the general journal. Also, immediately record any transaction involving inventory, a customer, or a vendor in the appropriate subsidiary ledger record.

c. At the end of the month, total each column in each special journal and post that total to the general ledger. EXCEPT for entries in the “Other” columns, which must be posted individually to the general ledger.

f. At this point in the closing process, the balances of all subsidiary ledger accounts would be totaled and that total compared to the balance of the corresponding control account in the general ledger. That is, the total of inventory control cards would be compared to the Merchandise Inventory balance; the customer subsidiary ledger total to the Accounts Receivable balance; and the vendor subsidiary ledger total to the Accounts Payable balance. Any discrepancies would be investigated and corrected. Given the limited scope of this project scenario, reconciliation between subsidiary ledgers and control accounts is not possible.

g. List all general ledger account balances in the unadjusted trial balance columns of the worksheet. Use the sum function in Excel to total the debit and credit columns. These totals should be equal.

h. Prepare the end-of-month adjusting entries. Record these entries in the general journal and post them to the general ledger. Also record the adjusting entries in the designated columns in the worksheet and total the debit and credit columns. These totals should be equal.

j. Complete the unadjusted trial balance columns on the worksheet. Use Excel formulas to carry balances from the unadjusted trial balance columns, adjusting as necessary by entries in the adjustments columns. Check your results against the balances recorded in the general ledger.

k. Sort the dollars recorded in the adjusted trial balance columns into either the income statement or the balance sheet columns. Total these columns. The entry of net income should cause the debit and credit columns to equal one another.

l. Use the income statement information on the worksheet to prepare a multi-step income statement in good form. Look at examples of this income statement format in your textbook, such as the one on page 220.

m. Prepare a statement of retained earnings in good form. Look at examples of this statement in your textbook. Remember that net income from your just-completed income statement is a necessary component of this statement.

n. Use the balance sheet information on the worksheet to prepare a classified balance sheet, similar in format to the example on page 711. Remember that the ending retained earnings balance from the just-completed statement is a necessary component of the equity section of the balance sheet.

o. Prepare the end-of-month closing entries. Record these entries in the general journal and post them to the general ledger. Update balances in the general ledger accounts.

p. List the general ledger accounts that have balances other than zero on the post-closing trial balance. The totals of the debit column and the credit column should be equal.

F. Part 2 of this project requires you to analyze the company’s year-end financial statements to assist the management of AC Speed in assessing the company’s financial position and making decisions about its future direction.

a. Before beginning this part of the project, you will find it helpful to review Chapter 18 on financial statement analysis. Page 809, a summary of ratios, will be particularly useful.

b. Tabs in the project workbook provide trial balance data for the current and two preceding years for AC Speed and a location to calculation a selection of ratios. Use the trial balance data and the formulas in Chapter 18 to compute the ratios listed for each of the three years. YOU MUST STRUCTURE YOUR RATIO CALCULATIONS AS FORMULAS AND LINKS TO APPROPRIATE CELLS ON THE TRIAL BALANCE TAB. You will lose points by simply typing the final ratio numbers or percentages.

c. After you calculate the ratios, consider whether there is a trend over the three-year period. Also compare the ratios you calculated for AC Speed with those listed as industry averages. Review the information in Chapter 18 to help you determine what the ratios are telling you about various aspects of AC Speed’s business operations.

d. Use Word to prepare a memo (minimum 500 words) to AC Speed’s general manager, addressing the three questions listed at the bottom of the ratios tab. This should be formatted as a business memo, not an APA paper. Be sure to include a brief introduction and conclusion in the memo. Each question should be addressed in one or two paragraphs in the body of the memo. Remember that the general manager will expect details/facts/ratios to support statements you may make about the status of the business. Your writing should be concise, clear, and readable, with a fairly formal tone (since it’s addressed to AC Speed’s general manager, who is likely to share it with other members of management). Your instructor will provide the due date and submission requirements for this part of the project.

Main Menu

Academic Integrity Statement

Project Academic Integrity Statement

Student Name

Student ID Number

Date

I understand that this is an individual, not a team, project; that I am expected to do my own work on the project. I may discuss project requirements in general terms with others, but I am not permitted to collaborate with anyone or copy anyone's work, manually or electronically, in full or in part.

I also understand that I am not permitted to supply anyone with the results of my work or with information or assistance that compromises another student's completion of the project through his or her own efforts.

If I have any questions about these requirements, I will promptly ask my instrucor for clarification.

I understand that any violation of this project academic integrity statement will lead, at minimum, to a failing grade for the project.

By entering my name and student ID number below, I am attesting that I have read, understood, and will personally adhere to this project academic integrity statement.

1-Jul

1-Jul Signed a two year 14%, $216,000 note payable with Fifth Third Bank.

1-Jul Sold 1500 speakers on account to GM for $112 each, Invoice #2301

1-Jul Purchased 2800 rearview mirrors on credit from Gentex for $45 each.

2-Jul

2-Jul Sold 250 rearview mirrors on account to Honda for $105 each, Invoice #2302

3-Jul Purchased 3450 speakers on credit from Bose for $72 each.

3-Jul Sold 1300 GPS units on account to Toyota for $65 each, Invoice #2303

4-Jul

5-Jul

6-Jul

7-Jul

8-Jul

8-Jul

11-Jul Paid in full for the July 1 purchase from Gentex. Check # 7003

11-Jul Received payment from GM on remaining balance for July 1st sale

12-Jul

12-Jul

12-Jul Received payment in full from Honda for July 2nd sale.

13-Jul Paid in full for the July 3rd purchase from Bose, Check # 7004

13-Jul Received payment in full from Toyota for July 3nd sale

15-Jul

17-Jul

19-Jul

19-Jul

20-Jul Received $122,500 from Ford for June 5th sales.

JULY JOURNAL TRANSACTIONS

Issued 8,200 shares of common stock for $11 per share (Refer to Chart of Accounts GL for description of common stock).

Rented idle warehouse space to a new tenant and received $15,000 for three months rent. (July - October)

60 defective speakers were returned from GM. A credit was issued to the customer.

The 60 defective speakers were returned to Bose.

Paid $650 for equipment repair. Check # 7000

Reimbursed employees for entertainment expenses totaling $300. Check # 7001

Paid June utility bill of $1850. Check # 7002

Purchased office supplies from Staples on credit for $700.

The Board of Directors declared a cash dividend of $0.50 per share for shareholders of record on July 14th, payable on July 20th.

Purchased 3100 GPS units from Garmin for $28 each on credit.

Check # 7005 was issued for payroll: $23,750 for salaries and $1,925 for wages

Bought new Office Furniture for $15,600. Furniture use begins in August. Check # 7006

1550 GPS units purchased on July 12th from Garmin were found to be the wrong model. All 1550 units were returned.

Paid $1400 bill for phone survey performed by marketing consultant, Check # 7007

Main Menu

20-Jul

20-Jul Paid the dividend that was declared on July 12, Check # 7009

22-Jul Paid the remaining balance on the purchase from Garmin on July 12th. Check #7010

23-Jul General Motors declared bankruptcy. $10,000 receivable from General Motors was written off .

25-Jul

26-Jul

26-Jul Sold 425 speakers to Honda for $114 each, Invoice # 2304

27-Jul Paid Gentex $40,000 for June 27 purchase, Check # 7012

27-Jul

28-Jul Issued bonds payable at face value for $ 485,000

29-Jul

29-Jul

30-Jul

31-Jul

July Month-end Adjustments:

( A )

( B )

( C )AC Speed has earned one month of the rent prepaid by their tenant at the beginning of July. (pp. 104-105)

( D )The Company took a physical inventory count on July 31 and found the following inventory on hand:

( E )The Company took a physical count of Office Supplies on July 31 and found the following to be on hand:

( F ) Depreciation on the company's fixed assets for the month of July is as follows:

Paid $21,000 mortgage payment to Fifth Third Bank ($6,000 principal and $15,000 interest), Check # 7008.

Received $119,050 payment from Toyota for sale on June 11th.

Purchased 800 shares of Treasury Stock for $15 per share, Check # 7011 (cost method)

Sold 1850 Rearview mirrors to Ford for $89 each, Invoice # 2305

Paid Bose $158,240 for balance due in June, Check # 7013

Check #7014 was issued for payroll: $ 20,500 for salaries and $ 3,560 for wages

Received and paid legal service invoice of $9,025, Check # 7015

Paid the first month's principal of $25,000 plus interest for notes issued at the beginning of the month. Check # 7016

*All purchases on account terms of 3/10, net 30

**All credit sales have terms of 3/10, net 45

AC Speed estimates bad debt expense on a monthly basis rather than waiting until year-end. The company uses the allowance method. Based on recent industry estimates, AC Speed estimates that the estimate of bad debt expense should be 1.5% of total sales.

The balance in the Prepaid Insurance account at the beginning of July represents 6 months of coverage. Record the amount of insurance expense for July. (p.102)

Merchandise Inventory - $310,000 (p.211)

Office Supplies - $2,415 (p.101)

1. The furniture and equipment for the warehouse purchased a few years ago cost $10,000. These assets have a 10-year life, with $1500 salvage value, and are depreciated using the straight-line method. (p.444)

2. The furniture and equipment for the office was purchased last year for $8,500. These assets have a 5 year life, an expected salvage value of $1,500, and are depreciated using double declining method.

3.The new office furniture purchased in July has a 5 year life with a $500 salvage value, and is depreciated using the straight line method

Product Name DescriptionGPS In vehicle GPS unitSpeakers High sound quality speakersRearview Mirror Rearview mirror with built in reverse camera display

Main Menu

AC Speed CorporationChart of Accounts - General Ledger

BALANCE SHEET ACCOUNTS Assets Current Assets

Acct # Account Name100 Cash102 Accounts Receivable103 Allowance for Doubtful Accounts104 Merchandise Inventory105 Office Supplies106 Prepaid Insurance

Property, Plant and Equipment140 Land145 Building146 Accumulated Depreciation - Building151 Equipment & Furniture - Warehouse152 Accumulated Depreciation - Equip & Furn. - Warehouse153 Equipment & Furniture - Office154 Accumulated Depreciation - Equip & Furn. - Office

Liabilities Current Liabilities

201 Accounts Payable202 Wages Payable203 Interest Payable204 Dividends Payable205 Unearned Rent

Long-Term Liabilities250 Notes Payable251 Bonds Payable252 Mortgage (Warehouse) Payable

Capital (Equity)300 Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding301 Paid In Capital - Excess of Par330 Retained Earnings340 Treasury Stock

INCOME STATEMENT ACCOUNTS Revenue

500 Sales510 Sales Discounts511 Sales Returns & Allowances

Cost of Goods Sold600 Cost of Goods Sold

Operating Expenses700 Wage Expense (hourly workers)701 Salaries Expense (Exempt Staff)702 Marketing Expense703 Travel and Entertainment Expense704 Bad Debt Expense705 Property Tax Expense706 Maintenance & Repair Expense707 Legal Expenses708 Insurance Expense709 Utilities Expense710 Office Supplies Expense711 Telecommunications Expense712 Depreciation Expense - Equip & Furniture - Warehouse713 Depreciation Expense - Equip & Furniture - Office

Other Income800 Rent Income

Other Expenses900 Interest Expense

Other1000 Income Summary

Main Menu

AC Speed CorporationChart of Accounts - Accounts Receivable Ledger

Account NameGeneral MotorsFord Motor Co.ToyotaHonda

Main Menu

AC Speed CorporationChart of Accounts - Accounts Payable Ledger

Account Name

GarminMagellanBoseGentex

Main Menu

AC Speed CorporationSales Journal

Date A/R Account DebitedInvoice

No.Post Ref

A/R - DR Sales - CR

AC Speed CorporationSales Journal

CGS - DR Inv - CR

AC Speed CorporationPurchases Journal

Date Creditors Account Credited Other Account - Debited A/P - CR Other - DR Post Ref

Inventory - DR

Office Supplies -

DR

Main Menu

Shoe: GPSBeginning Inventory (BI) Purchases Sales Ending Inventory (EI)

Date BI Units BI $/Unit BI $ Purch $ Sale $ (CGS) EI Units EI $/Unit EI $ 1-Jul 2500 $ 40.00 $ 100,000.00 $ - $ - $ 100,000.00

Shoe: SpeakersBeginning Inventory (BI) Purchases Sales Ending Inventory (EI)


Shoe: Rearview MirrorBeginning Inventory (BI) Purchases Sales Ending Inventory (EI)


Purch Units

Purch $/Unit

Sale Units (CGS)

Sale $/Unit (CGS)

Purch Units

Purch $/Unit

Sale Units (CGS)

Sale $/Unit (CGS)

Purch Units

Purch $/Unit

Sale Units (CGS)

Sale $/Unit (CGS)

AC Speed CorporationCash Receipts Journal

Date Sales - CR A/R - CR Other - CR Cash - DR

Acct - CR Customer Acct

Other AcctPost Ref

Sale Discount - DR

CGS - DR Inv - CR

Main Menu

AC Speed CorporationCash Payments Journal

Date Check # Payee Account Debited Cash - CR Inventory - CR Other - DR A/P - DRPost Ref

Main Menu

AC Speed CorporationGeneral Journal

Date Accounts DEBIT CREDIT Post Ref

Main Menu

Account: Cash Account No. Transaction Account Balance

Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance $ 93,900.00

Account: Accounts Receivable Account No. Transaction Account Balance


Account: Allowance for Doubtful Accounts Account No. Transaction Account Balance

Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance

Account: Merchandise Inventory Account No. Transaction Account Balance


Account: Office Supplies Account No. Transaction Account Balance


Account: Prepaid Insurance Account No. Transaction Account Balance

Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun $ 30,000.00

Account: Land Account No. Transaction Account Balance

Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance Carried Forward $ 2,000,600.00 $ 2,000,600.00

Account: Building Account No. Transaction Account Balance

Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance Carried Forward $ 1,500,000.00 $ 1,500,000.00

Account: Accumulated Depreciation - Building Account No. Transaction Account Balance

Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance Carried Forward $ 1,500,000.00

Account: Equipment & Furniture - Warehouse Account No. Transaction Account Balance


Account: Accumulated Depreciation - Equip & Furn. - Warehouse Account No. Transaction Account Balance


Account: Equipment & Furniture - Office Account No. Transaction Account Balance


Account: Accumulated Depreciation - Equip & Furn. - Office Account No. Transaction Account Balance


Account: Accounts Payable Account No. Transaction Account Balance


Account: Wages Payable Account No. Transaction Account Balance

Date Item Post Ref DEBIT CREDIT DEBIT

Account: Interest Payable Account No. Transaction Account Balance


Account: Dividends Payable Account No. Transaction Account Balance


Account: Unearned Rent Account No. Transaction Account Balance


Account: Notes Payable Account No. Transaction Account Balance


Account: Bonds Payable Account No. Transaction Account Balance


Account: Mortgage (Warehouse) Payable Account No. Transaction Account Balance

Date Item Post Ref DEBIT CREDIT DEBIT 1-Jul

Account: Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding Account No. Transaction Account Balance


Account: Paid In Capital - Excess of Par Account No. Transaction Account Balance

Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun

Account: Retained Earnings Account No. Transaction Account Balance

Date Item Post Ref DEBIT CREDIT DEBIT 30-Jun Balance Brought Forward

Account: Treasury Stock Account No. Transaction Account Balance


Account: Sales Account No. Transaction Account Balance


Account: Sales Discounts Account No. Transaction Account Balance


Account: Sales Returns & Allowances Account No. Transaction Account Balance


Account: Cost of Goods Sold Account No. Transaction Account Balance


Account: Wage Expense (hourly workers) Account No. Transaction Account Balance


Account: Salaries Expense (Exempt Staff) Account No. Transaction Account Balance


Account: Marketing Expense Account No. Transaction Account Balance


Account: Travel and Entertainment Expense Account No. Transaction Account Balance


Account: Bad Debt Expense Account No. Transaction Account Balance


Account: Property Tax Expense Account No. Transaction Account Balance


Account: Maintenance & Repair Expense Account No. Transaction Account Balance


Account: Legal Expenses Account No. Transaction Account Balance


Account: Insurance Expense Account No. Transaction Account Balance


Account: Utilities Expense Account No. Transaction Account Balance


Account: Office Supplies Expense Account No. Transaction Account Balance


Account: Telecommunications Expense Account No. Transaction Account Balance


Account: Depreciation Expense - Equip & Furniture - Warehouse Account No. Transaction Account Balance


Account: Depreciation Expense - Equip & Furniture - Office Account No. Transaction Account Balance


Account: Rent Income Account No. Transaction Account Balance


Account: Interest Expense Account No. Transaction Account Balance


Account: Income Summary Account No. Transaction Account Balance


100 Account Balance

CREDIT

102 Account Balance

CREDIT

103 Account Balance

CREDIT $ 15,000.00

Main Menu

104 Account Balance

CREDIT

105 Account Balance

CREDIT

106 Account Balance

CREDIT

140 Account Balance

CREDIT

145 Account Balance

CREDIT

146 Account Balance

CREDIT $ 1,500,000.00

151 Account Balance

CREDIT

152 Account Balance

CREDIT $ 1,900.00

153 Account Balance

CREDIT

154 Account Balance

CREDIT $ 1,600.00

201 Account Balance

CREDIT $ 948,600.00

202 Account Balance

CREDIT

203 Account Balance

CREDIT

204 Account Balance

CREDIT

205 Account Balance

CREDIT

250 Account Balance

CREDIT

251 Account Balance

CREDIT

252 Account Balance

CREDIT $ 200,000.00

300 Account Balance

CREDIT $ 75,000.00

301 Account Balance

CREDIT $ 1,341,000.00

330 Account Balance

CREDIT $ 366,000.00

340 Account Balance

CREDIT

500 Account Balance

CREDIT

510 Account Balance

CREDIT

511 Account Balance

CREDIT

600 Account Balance

CREDIT

700 Account Balance

CREDIT

701 Account Balance

CREDIT

702 Account Balance

CREDIT

703 Account Balance

CREDIT

704 Account Balance

CREDIT

705 Account Balance

CREDIT

706 Account Balance

CREDIT

707 Account Balance

CREDIT

708 Account Balance

CREDIT

709 Account Balance

CREDIT

710 Account Balance

CREDIT

711 Account Balance

CREDIT

712 Account Balance

CREDIT

713 Account Balance

CREDIT

800 Account Balance

CREDIT

900 Account Balance

CREDIT

1000 Account Balance

CREDIT

Account: General Motors Transaction Account Balance

Date Post Ref DEBIT CREDIT DEBIT CREDIT 30-Jun $ 10,000.00

Account: Ford Motor Co. Transaction Account Balance

Date Post Ref DEBIT CREDIT DEBIT CREDIT 5-Jun $ 200,000.00 $ 200,000.00

Account: Toyota Transaction Account Balance


Account: Honda Transaction Account Balance

Date Post Ref DEBIT CREDIT DEBIT CREDIT

Main Menu

Account: Garmin Account No. Transaction Account Balance


Account: Gentex Account No. Transaction Account Balance


Account: Bose Account No. Transaction Account Balance


Main Menu

Unadjusted Adjusted Income Bal. SheetTrial Balance Adjustments Trial Balance Statement Stmt. Own. Equity

Acct. No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.

100 Cash

102 Accounts Receivable

103 Allowance for Doubtful Accounts

104 Merchandise Inventory

105 Office Supplies

106 Prepaid Insurance

140 Land

145 Building

146 Accumulated Depreciation - Building

151 Equipment & Furniture - Warehouse

152 Accumulated Depreciation - Equip & Furn. - Warehouse

153 Equipment & Furniture - Office

154 Accumulated Depreciation - Equip & Furn. - Office

201 Accounts Payable

202 Wages Payable

203 Interest Payable

204 Dividends Payable

205 Unearned Rent

250 Notes Payable

251 Bonds Payable

252 Mortgage (Warehouse) Payable

300 Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding

301 Paid In Capital - Excess of Par

330 Retained Earnings

340 Treasury Stock

500 Sales

510 Sales Discounts

511 Sales Returns & Allowances

600 Cost of Goods Sold

700 Wage Expense (hourly workers)

701 Salaries Expense (Exempt Staff)

702 Marketing Expense

703 Travel and Entertainment Expense

704 Bad Debt Expense

705 Property Tax Expense

706 Maintenance & Repair Expense

707 Legal Expenses

708 Insurance Expense

709 Utilities Expense

710 Office Supplies Expense

711 Telecommunications Expense

712 Depreciation Expense - Equip & Furniture - Warehouse

713 Depreciation Expense - Equip & Furniture - Office

800 Rent Income

900 Interest Expense

Total

Net Income (Loss)

Total

Income StatementMain Menu

Statement of Retained Earnings

Main Menu

Balance SheetMain Menu

0Post-closing Trial Balance

DEBIT CREDIT

Main Menu

AC Speed CorporationIncome Statement

12/31/2011 12/31/2010 12/31/2009

AC Speed CorporationIncome Statement

12/31/2008 7/31/2011

AC Speed CorporationBalance Sheet

12/31/2011 12/31/2010

AC Speed CorporationBalance Sheet

12/31/2009 12/31/2008 7/31/2011

Dec. 31, 2011 Dec. 31, 2010LiquidityCurrent Ratio (One decimal place)

Acid Test Ratio (One decimal place)

Receivables Turnover (One decimal place)

Inventory Turnover (One decimal place)

Profitability

Profit Margin (% with two decimal places)

Asset Turnover (two decimal places)

Return on Assets (% one decimal place)

Return on Common Shareholders' Equity (One decimal place)

Earnings per Share (EPS) (Two decimal places)

Price-Earnings (P/E ) Ratio (Two decimal places)

Payout Ratio (% One decimal place)

Solvency Ratios

Debt to Total Assets Ratio (% One decimal place)

Dec. 31, 2011 Dec. 31, 2010Common Dividends 41,600 37,500Weighted Average Common Shares 65,000 63,000Market Price per Share 56 52

INSTRUCTIONS:Calculate all of the ratios listed above.Evaluate the company's performance trend relative to liquidity, profitability and solvency.Evaluate the company's performance relative to liquidity, profitability and solvency for their industry for the three years.Relate to the company management in which areas they are performing well and in which areas they need improvement.

Dec. 31, 2009 INDUSTRY

2.2

1.5

10

9.5

7.5%

1.9

10.5%

18.3%

Main Menu

7.9

10.72

6.5%

42.2%

Dec. 31, 200935,00063,000

50

Evaluate the company's performance relative to liquidity, profitability and solvency for their industry for the three years.Relate to the company management in which areas they are performing well and in which areas they need improvement.

Dec. 31, 2011 Dec. 31, 2010 Dec. 31, 2009 Dec. 31, 2008Adjusted Adjusted Adjusted Adjusted

Trial Balance Trial Balance Trial Balance Trial Balance

Acct. No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.100 Cash 1,047,528 0 1,007,602 0 901,464 0 891,052 0

102 Accounts Receivable 1,149,993 0 1,048,769 0 979,226 0 853,307 0

103 Allowance for Doubtful Accounts 0 20,192 0 20,674 0 20,463 0 22,959

104 Merchandise Inventory 696,308 0 721,053 0 757,584 0 859,628 0

105 Office Supplies 3,996 0 3,811 0 4,089 0 4,295 0

106 Prepaid Insurance 28,022 0 27,945 0 26,074 0 25,294 0

140 Land 2,000,600 0 2,000,600 0 2,000,600 0 2,000,600 0

145 Building 1,500,000 1,500,000 1,500,000 1,500,000

146 Accumulated Depreciation - Building 1,500,000 1,500,000 1,500,000 1,500,000

151 Equipment & Furniture - Warehouse 33,600 0 35,616 0 39,178 0 42,704 0

152 Accumulated Depreciation - Equip & Furn. - Warehouse 0 2,589 0 2,687 0 2,444 0 2,511

153 Equipment & Furniture - Office 13,309 0 13,391 0 14,402 0 16,761 0

154 Accumulated Depreciation - Equip & Furn. - Office 0 2,330 0 2,628 0 2,947 0 2,089

201 Accounts Payable 0 811,012 0 798,712 0 756,324 0 613,841

202 Wages Payable 0 0 0 0 0 0 0 0

203 Interest Payable 0 0 0 0 0 0 0 0

204 Dividends Payable 0 0 0 0 0 0 0 0

205 Unearned Rent 0 9,295 0 9,847 0 8,210 0 9,346

250 Notes Payable 0 207,663 0 222,106 0 239,734 0 260,449

251 Bonds Payable 0 577,677 0 627,937 0 695,046 0 712,735

252 Mortgage (Warehouse) Payable 0 119,054 0 125,759 0 138,079 0 143,791

300 Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding 0 65,000 0 65,000 0 65,000 0 65,000

301 Paid In Capital - Excess of Par 0 1,545,000 0 1,545,000 0 1,545,000 0 1,545,000

330 Retained Earnings 0 1,086,913 1,037,616 933,734 1,001,124

340 Treasury Stock 14,560 0 14,560 0 14,560 0 14,560 0

500 Sales 0 7,588,995 0 6,376,923 0 6,204,281 0 5,823,100

510 Sales Discounts 155,056 0 167,848 0 134,257 0 114,133 0

511 Sales Returns & Allowances 108,742 0 127,321 0 118,629 0 121,863 0

600 Cost of Goods Sold 5,635,022 0 4,616,540 0 4,575,156 4,203,855

700 Wage Expense (hourly workers) 93,477 0 86,607 0 88,788 0 89,758 0

701 Salaries Expense (Exempt Staff) 546,225 0 533,062 0 524,917 0 528,856 0

702 Marketing Expense 21,280 0 18,432 0 16,927 0 15,824 0

703 Travel and Entertainment Expense 17,460 0 13,446 0 11,399 0 8,850 0

704 Bad Debt Expense 189,714 0 114,213 0 114,543 0 116,518 0

705 Property Tax Expense 0 0 0 0 0 0 0 0

706 Maintenance & Repair Expense 5,758 0 5,961 0 7,742 0 8,000 0

707 Legal Expenses 67,201 0 65,611 0 63,411 0 57,674 0

708 Insurance Expense 48,850 0 50,406 0 52,290 0 54,196 0

709 Utilities Expense 18,060 0 18,370 0 19,371 0 20,028 0

710 Office Supplies Expense 4,120 0 4,769 0 5,506 0 5,705 0

711 Telecommunications Expense 0 0 0 0 0 0 0 0

712 Depreciation Expense - Equip & Furniture - Warehouse 2,002 0 1,995 0 1,680 0 1,391 0

713 Depreciation Expense - Equip & Furniture - Office 3,806 0 3,270 0 2,979 0 2,384 0

800 Rent Income 0 23,620 0 24,110 0 24,970 0 25,575

900 Interest Expense 154,650 0 157,800 0 161,460 0 170,284 0

Total 13,559,339 13,559,339 12,358,998 12,358,998 12,136,232 12,136,232 11,727,520 11,727,520

Profit & Loss Account for Year Ended on December 31, 2011

Amount (Rs.) Amount (Rs.)

Sales (Gross) 7,588,995

Less:

Sales Return (155,056)

Sales Discounts (108,742)

(263,798)

Sales (Net) 7,325,197

Less: Cost of Sales

Cost of Goods Sold (5,635,022)

Wage Expense (hourly workers) (93,477)

Salaries Expense (Exempt Staff) (546,225)

Depreciation Expense - Equip & Furniture - Warehouse (2,002)

Depreciation Expense - Equip & Furniture - Office (3,806)

Bad Debt Expense (189,714)

Property Tax Expense -

Maintenance & Repair Expense (5,758)

Legal Expenses (67,201)

Insurance Expense (48,850)

Utilities Expense (18,060)

Office Supplies Expense (4,120)

(6,614,235)

Less: Marketing & Adminstration Expenses

Travel & Entertainment Expenses (17,460)

Marketing Expenses (21,280)

(38,740)

Less:Other Expenses:

Interest Expense (154,650) (154,650)

Add: Other Income

Rent Income 23,620 23,620

Net Profit 541,192

Balance Sheet As on December 31, 2011

Non-Current Assets Amount (Rs.) Amount (Rs.)

Land 2,000,600 2,000,600

Building 1,500,000

Accumulated Depreciation-Building (1,500,000) -

Equipment & Furniture - Warehouse 33,600

Accumulated Depreciation - Equip & Furn. - Warehouse (2,589) 31,011

Equipment & Furniture - Office 13,309

Accumulated Depreciation - Equip & Furn. - Office (2,330) 10,979

Current Assets

Inventory 696,308 696,308

Account Receivable 1,149,993

Allowance for Doubtful Accounts (20,192) 1,129,801

Cash 1,047,528 1,047,528

Office Supplies 3,996 3,996

Prepaid insurance 28,022 28,022

Treasury Stock 14,560 14,560

Total Assets 4,962,806

Capital & Retained Earning

Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding 65,000 65,000

Paid In Capital - Excess of Par 1,545,000 1,545,000

Retained Earnings 1,628,105 1,628,105

Current Liabilities

Accounts Payable 811,012 811,012

Unearned Rent 9,295 9,295

Notes Payable 207,663 207,663

Bonds Payable 577,677 577,677

Mortgage (Warehouse) Payable 119,054 119,054

Total Equity & Liabilities 4,962,806 4,962,806

working

Documents

academic integrity

student id

inventory

subsidiary

building equipment

warehouse

office accumulated

marketing