RAK N' ROLL

General Journal
For the month ended December 31, 20x1
Date ACCOUNTS Debit Credit
20x1
12/1 Rent Expense 100,000.00
Cash 100,000.00

12/2 Cash 262,000.00

Service Fees 262,000.00

12/3 Office Supplies 20,000.00

Cash 20,000.00

12/12 Cash 60,000.00

Service Fees 60,000.00

12/15 Salaries Expense 45,000.00

Cash 45,000.00

12/17 Utilities Expense 15,000.00

Cash 15,000.00

Computer Equipment 150,000.00

Cash 150,000.00

12/23 Cash 37,000.00

Service Fees 37,000.00

Salaries Expense 75,000.00

Cash 75,000.00

12/28 Prepaid Insurance 5,000.00

Cash 5,000.00

12/30 Salaries Expense 45,000.00

Cash 45,000.00

Cash 350,000.00
Service Fees 350,000.00
Total 1,164,000.00 1,164,000.00
 General Ledger

Cash
Date ACCOUNTS Debit Credit ACCOUNTS Date
12/2 262,000.00 100,000.00 12/1
12/12 60,000.00 20,000.00 12/3
12/23 37,000.00 45,000.00 12/15
12/30 350,000.00 15,000.00 12/17
150,000.00
75,000.00 12/23
5,000.00 12/28
45,000.00 12/30
Balance 254,000.00
Adjustment 56,000.00
Adjusted Balance 310,000.00

Accounts Receivable
Date ACCOUNTS Debit Credit ACCOUNTS Date
Adjustment 34,000.00

Office Supplies
Date ACCOUNTS Debit Credit ACCOUNTS Date
12/3 20,000.00
Balance 20,000.00
9,000.00 Adjustment
Adjusted Balance 11,000.00

Prepaid Insurance
Date ACCOUNTS Debit Credit ACCOUNTS Date
5,000.00 12/28
5,000.00 Balance

Computer Equipment
Date ACCOUNTS Debit Credit ACCOUNTS Date
12/17 150,000.00
Balance 150,000.00

Accumulated Depreciation- Computer Equipment

Date ACCOUNTS Debit Credit ACCOUNTS Date
126,250.00

Interest Payable
Date ACCOUNTS Debit Credit ACCOUNTS Date
10,000.00

Utility Payable
Date ACCOUNTS Debit Credit ACCOUNTS Date
7,500.00

Service Fees
Date ACCOUNTS Debit Credit ACCOUNTS Date
262,000.00 12/2
60,000.00 12/12
37,000.00 12/23
350,000.00 12/30
709,000.00 Balance
56,000.00 Adjustment
34,000.00

Salaries Expense
Date ACCOUNTS Debit Credit ACCOUNTS Date
12/15 45,000.00
12/23 75,000.00
12/30 45,000.00
Balance 165,000.00

Rent Expense
Date ACCOUNTS Debit Credit ACCOUNTS Date
12/1 100,000.00

Utilities Expense
Date ACCOUNTS Debit Credit ACCOUNTS Date
12/17 15,000.00
Balance 15,000.00
Adjustment 7,500.00
Adjusted Balance 22,500.00

Office Supplies Expense

Date ACCOUNTS Debit Credit ACCOUNTS Date
9,000.00

Depreciation Expense
Date ACCOUNTS Debit Credit ACCOUNTS Date
126,250.00

Interest Expense
Date ACCOUNTS Debit Credit ACCOUNTS Date
10,000.00
 RAK N' ROLL
Unadjusted Trial Balance
For the month ended at December 30,20x1
ACCOUNTS Debit Credit
Cash 254,000.00
Prepaid Insurance 5,000.00
Computer Equipment 150,000.00
Office Supplies 20,000.00
Service Fees 709,000.00
Salaries Expense 165,000.00
Rent Expense 100,000.00
Utilities Expense 15,000.00
Total 704,000.00 714,000.00
 RAK N' ROLL
Bank Reconciliation
For the month ended at December 30,20x1
Balance per books, end 594,000.00 Balance per bank statement, end 305,000.00
Add: Credit Memos 56,000.00 Add: Deposits in Transit 350,000.00
Less: Debit Memos Less: Outstanding Checks 5,000.00

Adjusted Balance 650,000.00 Adjusted Balance 650,000.00

 Adjusting Journal Entries
Date ACCOUNTS Debit Credit
20x1
Cash 56,000.00
Service Fees 56,000.00

Accounts Receivable 34,000.00

Service Fees 34,000.00

Office Supplies Expense 9,000.00

Office Supplies 9,000.00

Depreciation Expense 126,250.00

Accumulated Depreciation- Computer Equipment 126,250.00

Interest Expense 10,000.00

Interest payable 10,000.00

Utilities Expense 7,500.00

Utilities Payable 7,500.00

Total 242,750.00 242,750.00

 RAK N' ROLL
Worksheet
For the month ended at December 30,20x1
Trial Balance Adjustments
ACCOUNTS Debit Credit Debit Credit
Cash 594,000.00 56,000.00
Accounts receivable 34,000.00
Prepaid Insurance 5,000.00
Computer Equipment 1,550,000.00
Accumulated Depreciation- Computer Equipment 240,000.00 126,250.00
Office Supplies 20,000.00 9,000.00
Loans Payable 1,000,000.00
Utilities Payable 7,500.00
Interest Payable 10,000.00
Owner’s Equity 1,254,000.00
Owner’s Drawing 3,300,000.00
Service Fees 5,599,000.00 90,000.00
Salaries Expense 1,155,000.00
Rent Expense 1,200,000.00
Utilities Expense 180,000.00 7,500.00
Insurance Expense 5,000.00
Depreciation Expense 126,250.00
Office Supplies Expense 84,000.00 9,000.00
Interest Expense 10,000.00
Total 8,088,000.00 8,098,000.00 242,750.00 242,750.00
Profit
N' ROLL
ksheet
d at December 30,20x1
Adjusted Trial Balance Income Summary Balance Sheet
Debit Credit Debit Credit Debit Credit
650,000.00 650,000.00
34,000.00 34,000.00
5,000.00 5,000.00
1,550,000.00 1,550,000.00
366,250.00 366,250.00
11,000.00 11,000.00
1,000,000.00 1,000,000.00
7,500.00 7,500.00
10,000.00 10,000.00
1,254,000.00 1,254,000.00
3,300,000.00 3,300,000.00
5,689,000.00 5,689,000.00
1,155,000.00 1,155,000.00
1,200,000.00 1,200,000.00
187,500.00 187,500.00
5,000.00 5,000.00
126,250.00 126,250.00
93,000.00 93,000.00
10,000.00 10,000.00
8,321,750.00 8,331,750.00 2,776,750.00 5,689,000.00 5,545,000.00 2,642,750.00
2922250.00 2922250.00
5,699,000.00 5,689,000.00 5,545,000.00 5,565,000.00
 RAK N' ROLL
Statement of Financial Position
For the period ended December 30,20x1
ASSETS Notes
Cash and Cash Equivalents 1 650000.00
Trade and Other Receivables 2 34000.00
Prepaid Assets 3 5000.00
Total Current Assets 689000.00

Property, Plant, & Equipment 4 1183750.00

Total noncurrent Assets 1183750.00

TOTAL ASSETS 1872750.00

LIABILITIES
Trade and Other Payables 5 17500.00
Total Current Liabilities 17500.00

Long- term Borrowings 6 1000000.00

Total noncurrent Liabilities 1000000.00

TOTAL LIABILITIES 1017500.00

EQUITY
RAK N' ROLL, Capital 272250.00

TOTAL LIABILITIES & EQUITY 1289750.00

ASSETS
Note 1: Cash and Cash Equivalents
Cash 650,000.00
Cash Equivalents
Cash and Cash Equivalents 650,000.00

Note 2:Trade and Other Receivables

Accounts receivable 34,000.00
Trade and Other Receivables 34,000.00

Note 3:Prepaid Assets

Prepaid Insurance 5,000.00
Prepaid Assets 5,000.00

Note 4: Property, Plant, & Equipment

Computer Equipment 1,550,000.00
Accumulated Depreciation- Computer Equipment 366,250.00
Property, Plant, & Equipment 1,183,750.00
LIABILITIES
Note 5: Trade and Other Payables
Utilities Payable 7,500.00
Interest Payable 10,000.00
Trade and Other Payables 17,500.00

Note 6: Long-term Borrowings

Loans Payable 1,000,000.00
Long-term Borrowings 1,000,000.00
 RAK N' ROLL
Statement of Comprehensive Income
For the period ended December 30,20x1
INCOME
Service Fees 5,689,000.00
TOTAL INCOME 5,689,000.00

EXPENSES
Salaries Expense 1,155,000.00
Rent Expense 1,200,000.00
Utilities Expense 187,500.00
Insurance Expense 5,000.00
Depreciation Expense 126,250.00
Office Supplies Expense 93,000.00
Interest Expense 10,000.00
TOTAL EXPENSES 2766750.00

PROFIT FOR THE YEAR 2922250.00

Other Comprehensive Income -
COMPRENSIVE INCOME FOR THE YEAR 2922250.00
 RAK N' ROLL
Statement of changes in equity
For the period ended December 30,20x1

RAK N' ROLL, Capital-Beg. 650000

Drawings 3,300,000.00
Profit 2922250.00
RAK N' ROLL, Capital-End 272250
 RAK N' ROLL
Statement of Cash Flow
For the period ended December 30,20x1

Cash flows from Operating Activities

Cash Receipts from rendering of services 5,689,000.00
Cash paid for Salaries Expense 1,155,000.00
Cash paid for Rent Expense 1,200,000.00
Cash paid for Utilities Expense 187,500.00
Cash paid for Insurance Expense 5,000.00
Cash paid for Depreciation Expense 126,250.00
Cash paid for Office Supplies Expense 93,000.00
Cash paid for Interest Expense 10,000.00
Net Cash from Operating Activities 2,912,250.00

Cash flows from Investing Activities

Cash paid for the acquisition of Equipment 1,183,750.00
Net Cash from Investing Activities 1,183,750.00

Cash flows from Financing Activities

Cash paid to owner 3,300,000.00
Cash paid from loan borrowed 10,000.00
Net Cash from Financing Activities 3,290,000.00

Net Increase in Cash 5,018,500.00

Cash, Beginning Balance 594,000.00
Cash, Ending Balance 5,612,500.00