Practice Set Workbook - Fall 2014 Version 2 Jordan

Indiana Jones, Inc.
Summary of Account Balances

1/1/2005 (Beginning Balances)
REVENUES
EXPENSES
Correct
EQUITY
67,000
-
LIABILITIES
Retained Earnings
Sales Revenue
Interest Income
Cost of Goods Sold
Advertising Expense
Office Supplies Expense
Salaries Expense
Utilities Expense
Insurance Expense
Bad Debt Expense
Depreciation Expense
Amortization Expense
Interest Expense
Income Tax Expense
Totals
Balances
90,000
58,000
(9,000)
8,000
12,000
50,000
200,000
(30,000)
80,000
(20,000)
35,000
30,000
10,000
8,000
50,000
9,000
100,000
80,000
120,000
ASSETS
Accounts
Cash
Short-term Investments
Accounts Receivable
Allowance for Doubtful Accounts
Interest Receivable
Office Supplies
Merchandise Inventory
Prepaid Insurance
Land
Building
Accumulated Depreciation -- Building
Equipment
Accumulated Depreciation -- Equipment
Intangible Asset -- Patent
Accounts Payable
Accrued Payroll
Accrued Income Taxes
Unearned Revenue
Interest Payable
Notes Payable
Common Stock
Additional Paid-in Capital
If the accounting equation is in balance, you will see the word "Co
"Incorrect"
nce, you will see the word "Correct", if not then you will find
Date
1/1
1/2
1/5
1/8
1/10
1/11
1/12
2/13
2/20
3/2
3/10
3/15
4/9
5/14
5/25
5/28
7/17
8/16
8/21
9/21
10/2
10/22
11/1
11/1
11/15
11/20
12/5
12/15
12/24
Description
BEGINNING BALANCES
Indiana pays off beginning accrued payroll balance
Indiana pays off the beginning interest payable balance
Indiana buys 300 units of inventory @ $10 each on credit
Indiana pays off beginning accrued income taxes balance
Indiana pays off beginning accounts payable balance
Indiana writes off Temple of Doom A/R balance (see instructions sheet)
Indiana sells 400 units to Sallah Co. for $90 each in cash
Asp Co. pays A/R balance in full (see instructions sheet)
Indiana buys office supplies of $2,000 in cash
Indiana pays off 3/2 purchase
Indiana sells 320 units to Marcus Brody Ltd. @ $90 each on credit
Indiana provides the services related to the beginning Unearned Revenue balance.
Indiana receives $10,000 up front from Elsa Schneider Inc. for services to be provided next year
Indiana sells 300 units to Marion Ravenwood Co. @ $90 each on credit
Indiana pays a bill of $3,000 for advertising for the month of August
Indiana sells 260 units to Belloq Industries @ $90 each on credit
Belloq Industries pays off A/R from 10/22
Indiana invests in a certificate of deposit for $30,000 cash.
Indiana sells 200 units to Satipo Inc. @ $90 each for cash
Indiana sells 150 units to Donovan Ltd. @ $90 each on credit
Indiana sells 250 units to Henry Jones Sr. & Son Inc. @ $90 each on credit
Adj.
#1
#2
#3
#4
#5
#6
#7
#8
#9
Adjusting entries (see comments)

Employee wages and accrual
Utilities expense
Taxes accrual
Accrued interest income from CD
Depreciation on Equipment
Depreciation on Building
Amortization
Prepaid Insurance adjustment
#10
#11
Office Supplies adjustment

Interest expense accrual
Totals before closing entries
Close. Closing entries

Closing revenues and expenses
Totals after closing entries
ASSETS
Cash
90,000
(10,000)
(9,000)
Short-term
Investments
-
Accounts
Receivable
58,000
Allowance
for Doubtful
Interest
Accounts
Receivable
(9,000)
-
Merchandise
Inventory
8,000
Office
Supplies
-
3,000
(8,000)
(30,000)
(6,000)
36,000
12,000
6,000
(3,800)
(12,000)
3,250
(2,000)
(3,250)
2,000
28,800
(3,810)
4,500
27,000
(4,500)
(4,500)
10,000
(3,000)
6,800
(6,800)
23,400
(30,000)
23,400
(23,400)
(4,420)
30,000
9,090
(9,090)
18,000
(3,600)
(2,700)
(4,405)
13,500
22,500
(65,000)
(5,500)
250
(10,180)
(1,900)
3,260
30,000
131,800
(13,180)
250
7,405
100
3,260
30,000
131,800
(13,180)
250
7,405
100
ASSETS
Prepaid
Insurance
12,000
Land
50,000
Building
200,000
Accumulated
Depreciation -Building
Equipment
(30,000)
80,000
Accumulated
Depreciation -Equipment
(20,000)
Intangible
Asset -Patent
35,000
(7,000)
(5,000)
(3,500)
(3,000)
9,000
50,000
200,000
(35,000)
80,000
(27,000)
31,500
9,000
50,000
200,000
(35,000)
80,000
(27,000)
31,500
LIABILITIES
Accounts
Payable
30,000
Accrued
Payroll
10,000
###
Accrued
Income
Taxes
8,000
Interest
Payable
9,000
EQUITY
Unearned
Revenue
50,000
(9,000)
3,000
(8,000)
(30,000)
3,250
(3,250)
4,500
(4,500)
(50,000)
10,000
6,800
(6,800)
9,090
(9,090)
5,000
4,000
Notes
Payable
100,000
Common
Stock
80,000
Additional
Paid-in
Capital
120,000
9,000
3,000
5,000
4,000
9,000
10,000
100,000
80,000
120,000
3,000
5,000
4,000
9,000
10,000
100,000
80,000
120,000
EQUITY
REVENUES
Retained
Earnings
67,000
Sales
Revenue
-
EXPENSES (Enter Expenses as N
Interest
Cost of
Income Goods Sold
###
-
36,000
(3,800)
28,800
(3,810)
Salaries
Expense
-
Advertising
Expense
-
Office
Supplies
Expense
-
Utilities
Expense
-
50,000
27,000
(4,500)
(3,000)
23,400
(4,420)
18,000
13,500
22,500
(3,600)
(2,700)
(4,405)
Jordan
(70,000)
###
###
###
67,000
219,200
250
Use grey area to enter closing entries

70,135
(219,200)
(250)
137,135
(27,235)
(70,000)
(3,000)
(1,900)
(5,500)
27,235
70,000
3,000
1,900
5,500
(Enter Expenses as Negative Numbers)

Insurance
Expense
-
Bad Debt
Expense
###
Depreciation
Expense
-
Transaction Balance?
Amortization Interest
Expense
Expense
###
-
Income Tax
Expense
-
(4,000)
###
###
###
###
(3,000)
(9,000)
(3,000)
(10,180)
(12,000)
(3,500)
(9,000)
(4,000)
3,000
10,180
12,000
3,500
9,000
4,000
1/1
1/8
3/2
5/14
9/21
11/15
Beginning Inventory
Purchase
Purchase
Purchase
Purchase
Purchase
Totals
# of Units Cost per Unit

1,000 $
8
300 $
10
250 $
13
300 $
15
400 $
17
505 $
18
2,755
2/13
4/9
8/16
10/22
12/5
12/15
12/24
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Total units sold
# of Units
400
320
300
260
200
150
250
1,880
1/1
1/8
3/2
5/14
9/21
11/15
Updated Inventory Totals (after sales)

# of Units Cost per Unit
Beginning Inventory
830 $
8
Purchase
$
10
Purchase
$
13
Purchase
$
15
Purchase
45 $
17
Purchase
$
18
Totals
875
$
$
$
$
$
$
$
Total Cost
8,000
3,000
3,250
4,500
6,800
9,090
34,640
Date of Sale
2/13
2/13
4/9
4/9
8/16
10/22
12/5
12/15
12/24
12/24
$
$
$
$
$
$
$
Total Cost
6,640
765
7,405
Cost of Goods Sold (Perpetual LIFO):

Units Sold:
Cost per Unit: Total Cost
300 $
10 $ 3,000
100 $
8 $
800
250 $
13 $ 3,250
70 $
8 $
560
300 $
15 $ 4,500
260 $
17 $ 4,420
200 $
18 $ 3,600
150 $
18 $ 2,700
155 $
18 $ 2,790
95 $
17 $ 1,615
1,880 Total COGS $ 27,235
Balanced? (if 0 or -)
$
Indiana Jones, Inc.

Summary of Account Balances
December 31, 2005
LIABILITIES
EQUITY
67,000
219,200
REVENUES
250
(27,235)
(3,000)
(1,900)
(70,000)
(5,500)
(3,000)
(10,180)
(12,000)
(3,500)
(9,000)
(4,000)
EXPENSES
Retained Earnings
Sales Revenue
Interest Income
Cost of Goods Sold
Advertising Expense
Salaries Expense
Utilities Expense
Insurance Expense
Bad Debt Expense
Interest Expense
Income Tax Expense
Balances
3,260
30,000
131,800
(13,180)
250
100
7,405
9,000
50,000
200,000
(35,000)
80,000
(27,000)
31,500
3,000
5,000
4,000
10,000
9,000
100,000
80,000
120,000
ASSETS
Accounts
Cash
Accounts Receivable
Interest Receivable
Office Supplies
Prepaid Insurance
Land
Building
Equipment
Accounts Payable
Accrued Payroll
Unearned Revenue
Interest Payable
Notes Payable
Common Stock
Total
Correct
If the accounting equation is in balance, you will see the word "
"Incorrect"
nce, you will see the word "Correct", if not then you will find
Please Create An Income Statement, Statement of Stockholders' Equity and Balance Sheet in Good Form
NOTE: You need to fill in the GREY areas with the correct numbers (use the ending balances sheet).
ENTER EXPENSES AS NEGATIVE AMOUNTS!!!!!
Indiana Jones, Inc.

Statement of Stockholders' Equity
For the Year Ended December 31, 2005
Indiana Jones, Inc.

Income Statement
For the Year Ended December 31, 2005
Sales Revenue
Balance, 1/1/2004
219,200
Net Income
Cost of Goods Sold
(27,235)
Balance, 12/31/2004
Gross Margin
191,965
Operating Expenses:
Salaries Expense
Utilities Expense
Advertising Expense
Insurance Expense
Bad Debt Expense
Total Operating Expenses
(70,000)
(5,500)
(3,000)
(1,900)
(3,000)
(10,180)
(12,000)
(3,500)
(109,080)
Operating Margin
82,885
Other Income and Expenses:

Interest Income
Interest Expense
250
(9,000)
Income Before Taxes
74,135
Income Taxes
(4,000)
Net Income
70,135
Earnings Per Share
1.75
Common Stock
$
80,000 $
$
80,000
APIC
120,000
Retained Earnings
67,000
###
$
120,000
70,135
$
137,135
Total
267,000
70,135
337,135
Indiana Jones, Inc.

Balance Sheet
December 31, 2005
Assets:
Current Assets
Cash
Accounts Receivable (Net of Allowance)
Office Supplies
Interest Receivable
Prepaid Insurance
Total Current Assets
Property, Plant, and Equipment
Land
Equipment
Buildings
Less: Accumulated Depreciation
Property, Plant, and Equipment, net
Other Assets
Patents
$
$
3,260
30,000
118,620
100
250
7,405
9,000
Account!!
$ 168,635
50,000
80,000
200,000
(62,000)
Enter Accumulated Depreciation as a Negative
268,000
31,500
Total Assets
Liabilities:
Current Liabilities
Accounts Payable
Accrued Payroll
Unearned Revenue
Interest Payable
Total Current Liabilities
Long-term Liabilities
Notes Payable
Total Liabilities
Equity:
Contributed Capital
Common Stock
Retained Earnings
Retained Earnings
Total Equity
Remember to net the A/R account and the Allowance
$ 468,135
$
$
$
$
$
3,000
5,000
4,000
10,000
9,000
$
31,000
100,000
131,000
80,000
120,000
137,135
$ 337,135
Total Liabilities and Equity
$ 468,135
Balance? (0=yes)
Indiana Jones, Inc.

Post-Closing Account Balances
December 31, 2005
EQUITY
REVENUES
Revenues and Expenses should b
EXPENSES
Total
137,135
-
LIABILITIES
Retained Earnings
Sales Revenue
Interest Income
Cost of Goods Sold
Advertising Expense
Salaries Expense
Utilities Expense
Insurance Expense
Bad Debt Expense
Interest Expense
Income Tax Expense
Balances
3,260
30,000
131,800
(13,180)
250
100
7,405
9,000
50,000
200,000
(35,000)
80,000
(27,000)
31,500
3,000
5,000
4,000
10,000
9,000
100,000
80,000
120,000
ASSETS
Accounts
Cash
Accounts Receivable
Interest Receivable
Office Supplies
Prepaid Insurance
Land
Building
Equipment
Accounts Payable
Accrued Payroll
Unearned Revenue
Interest Payable
Notes Payable
Common Stock
Correct
If the accounting equation is in balance, you will see the word

"Incorrect"
Jordan
Revenues and Expenses should be zero here.
n is in balance, you will see the word "Correct", if not then you will find

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Indiana Jones, Inc.

Summary of Account Balances

Adjusting entries (see comments)

Office Supplies adjustment

Close. Closing entries

EXPENSES (Enter Expenses as N

Use grey area to enter closing entries

(Enter Expenses as Negative Numbers)

# of Units Cost per Unit

Updated Inventory Totals (after sales)

Cost of Goods Sold (Perpetual LIFO):

Indiana Jones, Inc.

Indiana Jones, Inc.

Indiana Jones, Inc.

Cost of Goods Sold

Other Income and Expenses:

Income Before Taxes

Earnings Per Share

Indiana Jones, Inc.

Enter Accumulated Depreciation as a Negative

Remember to net the A/R account and the Allowance

Total Liabilities and Equity

Indiana Jones, Inc.

Revenues and Expenses should b

If the accounting equation is in balance, you will see the word

Revenues and Expenses should be zero here.

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