Hydro Paddle Boards, Inc.

Transcription

1 Hydro Paddle Boards, Inc. CONTENTS Klooster & Allen General Ledger Software Student Instructions... 1 Introduction... 3 General Instructions... 4 Narrative of Transactions... 5 Exhibits: Schedule of Accounts Receivable... 8 Schedule of Accounts Payable... 8 Trial Balance... 9 Chart of Accounts Forms: General Journal General Journal (Adjusting Entries) General Journal (Closing Entries) General Ledger Accounts Receivable Ledger Accounts Payable Ledger Job Cost Records Schedule of Accounts Receivable Schedule of Accounts Payable Schedule of Employer Payroll Taxes Allocation Schedule of Unfinished Jobs Work Sheet Income Statement Retained Earnings Statement Balance Sheet Closing Trial Balance Extra Forms Analysis Test iii

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3 Hydro Paddle Boards, Inc. KLOOSTER & ALLEN GENERAL LEDGER SOFTWARE STUDENT INSTRUCTIONS Carefully read the introduction and general instructions to the Hydro Paddle Boards, Inc. practice set on pages 3 and 4. Follow the steps below to complete Hydro Paddle Boards, Inc. using the Klooster & Allen General Ledger Software. 1. Open the Hydro Paddle Boards, Inc. data file. Start the General Ledger software. Click on the Open toolbar button and select the file Hydro_Paddle_Boards.IA7. 2. Immediately save the file to a new name. Click on the Save As toolbar button. When the Save As window appears, select the folder in the Save In drop-down list where you wish to save your data files. In the File Name box, key a file name of Hydro_Paddle_Boards_Your_Name.IA7 (for example, Hydro_Paddle_Boards_John_Doe.IA7) to identify the file containing your work. Click on the Save button. 3. Display the chart of accounts. Click on the Reports toolbar button. Select Account Lists and Chart of Accounts and then click on the OK button to display the chart of accounts. To print the chart of accounts, click on the Print button. 4. Following the Narrative of Transactions printed in your practice set, key the January transactions for Hydro Paddle Boards, Inc. into the General Journal. Click on the Journal toolbar button to open the General Journal window. For each transaction, key the date in the format of 00/00/00 or click on the calendar icon while the Date column has the focus and select the date from the pop-up calendar that appears. If the transaction involves a job number, key it into the Refer. column (e.g., Job 1403). Otherwise, you may leave the Refer. column blank. Enter the account to be debited in the Account column by keying the account number or the account name or by clicking the Chart of Accounts button while the Account column has the focus and selecting from the drop-down list. Tab to the Debit column and enter the debit amount. Follow the same procedure for the account(s) to be credited. When using the Accounts Payable or Accounts Receivable account, you must also select a vendor/customer from the drop-down list that will appear in the Vendor/Customer column. After you have entered all transaction information, click on the button (or press Enter). The computer will automatically update the general, accounts receivable, and accounts payable ledgers for you. However, when using the Work in Process account, be sure to manually post to the appropriate Job Cost Record using the forms provided in the practice set. 5. Manually prepare the schedule of employer payroll taxes allocation before entering the payroll journal entries into the general journal. 6. Display the journal entries. Click on the Reports toolbar button. Select Journals and General Journal to choose the report to display and click on the OK button. Select Include All Journal Entries and click on the OK button to display the general journal report. To print the report, click on the Print button. 7. Make corrections to the journal entries, if necessary. In the General Journal window, click on the entry to be corrected, then key the correction(s) to the entry and click on the button (or press Enter). If additional lines are needed for the entry, select the entry where you need to add a debit or credit part and click on the Insert button. A blank line will be inserted. You may also delete the incorrect entry (click within the entry and then click on the Delete button) and then reenter the transaction on the next available lines of the journal. After you post, the software will automatically put the entry in its proper sequence by date. 1

4 8. Display the trial balance report. Click on the Reports toolbar button. Select Ledger Reports and Trial Balance to choose the report to display and click on the OK button. To print the report, click on the Print button. 9. Using the trial balance report and the information provided in the Narrative of Transactions, determine the required adjusting entries and enter them in the General Journal. Use 01/31/00 (current year) as the date of each adjusting entry. Key Adj.Ent. in the Refer. column for each adjusting entry. After each adjusting entry is keyed, click on the button (or press Enter). 10. Display the adjusting entries journal report. Click on the Reports toolbar button. Select Journals and General Journal and then click OK. Click on Customize Journal Report, select Adj.Ent. in the Reference drop-down list, and click on the OK button to display only the adjusting entries. 11. Make corrections to the adjusting entries, if necessary. In the General Journal window, click on the entry to be corrected, then key the correction(s) to the entry and click on the button (or press Enter). If additional lines are needed for the entry, delete the incorrect entry (click within the entry and then click on the Delete button) and then reenter the transaction on the next available lines of the journal. 12. Display the schedule of accounts receivable and the schedule of accounts payable. Click on the Reports toolbar button. Click on Ledger Reports and, one at a time, select Schedule of Accounts Receivable and Schedule of Accounts Payable. To print each report, click on the Print button. 13. Display the income statement and retained earnings statement. Click on the Reports toolbar button. Click on Financial Statements and, one at a time, select Income Statement and Retained Earnings Statement to choose the reports to display. To print each report, click on the Print button. 14. Manually prepare the schedule of unfinished jobs. 15. Click on the Save toolbar button to save your data file. 16. Perform period-end closing. From the Options menu, select Generate Closing Journal Entries. When the dialog box appears, click Yes to confirm that you wish the software to generate closing journal entries for you. Click on the button to post the closing journal entries to the General Journal. (If you choose to save at this point, follow the specific instructions in Step 20.) 17. Display the closing journal entries. Click on the Reports toolbar button. Select Journals and General Journal and then click OK. Click on Customize Journal Report and select Clo.Ent. from the Reference dropdown list. Click on the OK button to display only the closing entries. To print the report, click on the Print button. 18. Display the post-closing trial balance report. Click on the Reports toolbar button. Select Ledger Reports and Trial Balance and then click on the OK button. To print the report, click on the Print button. 19. Display the balance sheet. Click on the Reports toolbar button. Select Financial Statements and Balance Sheet and then click on the OK button. To print the report, click on the Print button. 20. Click on the Save As toolbar button to save your data file after closing the books on January 31 of the current year. Key Hydro_Paddle_Boards_-Closing_Your_Name.IA7 (for example, Hydro_Paddle_Boards_-Closing_John_Doe.IA7) to save your post-closing data file. 21. Manually complete the Analysis Test included in the practice set. To access Help, click on the Help button that appears in most windows or press the F1 key. 2

5 Hydro Paddle Boards, Inc. INTRODUCTION The transactions in this practice set were completed by Hydro Paddle Boards, Inc. during January, the first month of the company s fiscal year. Hydro Paddle Boards, Inc. is a manufacturing corporation that designs and manufactures a limited variety of custom stand up paddle (SUP) boards. The SUP boards vary in size and performance, including beginner, intermediate, advanced, competition, and racing boards. Hydro Paddle Boards maintains a job-order cost system. You have accepted a position with Hydro Paddle Boards, Inc. as assistant controller, and you will begin your duties on January 1 of the current year. In your review of the previous assistant controller s records, you notice some jobs were incomplete as of December 31 of the previous year. These jobs are contained in the Job Cost Records. You plan to complete most of these jobs in January and to accept new jobs from dealers and other builders. You are responsible for the daily accounting operations, preparation of interim financial statements, and end-of-month adjusting and closing entries. Hydro Paddle Boards, Inc. manufactures all products in a single production department. An individual job-order cost sheet is maintained for each job. The job-order cost sheet contains accumulated costs for each job, including actual direct materials, actual direct labor, and applied factory overhead. Gross pay for direct labor is recorded by a debit to Work in Process. Salaries for all other factory personnel are recorded by a debit to Factory Overhead. Salaries of nonfactory personnel are recorded at the end of each month by a debit to the appropriate salary expense accounts. Deductions for employees FICA and federal income taxes are recorded whenever gross pay is recorded, using the simplified rates of 7.5% (for FICA, including Medicare) and 15% (for federal income tax). All wages are paid on the last day of the month. All employer payroll taxes are recorded at the end of the month. Payroll taxes related to factory personnel are debited to Factory Overhead. Payroll taxes related to all other company personnel are debited to Payroll Taxes Expense General. Hydro Paddle Boards, Inc. maintains two materials accounts, one for Direct Materials and one for Indirect Materials and Factory Supplies. Factory overhead is applied to each job based on 125% of direct labor cost for that job. Hydro Paddle Boards, Inc. maintains only one factory overhead account. Remember that debits to Factory Overhead represent actual overhead and credits to Factory Overhead represent applied overhead. Since the difference between actual factory overhead and applied factory overhead is insignificant, the overapplied or under-applied balance is closed out to Cost of Goods Sold as an adjusting entry at the end of each month. Hydro Paddle Boards, Inc. marks up all work by 40% of the job cost. Refer to the individual Job Cost Record for the total cost of the job and multiply the total cost by 140% to determine the selling price for each job. Since Hydro Paddle Boards, Inc. sells to dealers, sales are exempt from state sales tax. All sales are on account and are subject to terms of 1/10, net 30 days, FOB shipping point. Accounts Payable is used solely for the purchase of direct materials and indirect materials and factory supplies. All vendors expect full payment within 30 days. Operating expenses, with the exception of any accrued salaries, payroll taxes, property taxes, and income taxes, are paid when incurred. All cash received is deposited in the bank, and all payments are made by check. When dealing with an accounts receivable or accounts payable item, be sure to record the company name in the General Journal and post to the Accounts Receivable or Accounts Payable Ledger. It is January 1, and you are ready to assume your new responsibilities. Good luck! 3

6 GENERAL INSTRUCTIONS 1. Journalize the entries for the month of January in the General Journal. When using the Work in Process account, be sure to post to the appropriate Job Cost Record. 2. the General Journal entries to the General Ledger, the Accounts Payable Ledger, and the Accounts Receivable Ledger. 3. Prepare Schedules of Accounts Receivable and Accounts Payable. 4. Prepare a Schedule of Unfinished Jobs. 5. Prepare the Trial Balance section of the work sheet. 6. Complete the work sheet using the adjusting entries data for the Adjustment columns. 7. Prepare the following statements: a. Income Statement b. Retained Earnings Statement c. Balance Sheet 8. Journalize and post the adjusting entries. 9. Journalize and post the closing entries. (It is acknowledged that this step is not performed until year end; this is for instructional purposes only.) 10. Prepare a -Closing Trial Balance. 4

7 Hydro Paddle Boards, Inc. NARRATIVE OF TRANSACTIONS Note: Certain transactions, such as those dealing with payroll, require detailed computational work before preparing the journal entry. These transactions are explained initially in the narrative as they occur. Please refer to the original transaction when preparing a subsequent similar transaction. Jan. 2 Paid Salt Water Mall $7, for January rent. Of this amount, 30% is for office facilities and 70% is for factory facilities. 2 Paid RWT Advertising Agency $ for preparing advertisements in local newspapers. 3 Paid Hi-Foam Products Company $16, in payment of December 31 balance. 3 Received a check from Calm Waters Board Corporation for the amount due within the discount period. 4 Paid Marine National Bank $45, for December payroll taxes payable as follows: Employees Income Tax Payable, $26,353.78; FICA Tax Payable, $17,928.88; Federal Unemployment Tax, $638.38; State Unemployment Tax, $ Paid $14, for Income Tax Payable. 4 Paid Coco PVC Company $21, in payment of the December 31 balance. 4 Applied $7, of direct materials (1679) and $16, of direct labor (time ticket No. 258.) to Job No. 1403, which will complete the job. Use the simplified rates of 7.5% of gross pay for employees FICA tax and 15% of gross pay for employees federal income tax. When preparing the entry for applying direct labor, debit Work in Process for the gross pay, and credit Employees Income Tax Payable and FICA Tax Payable for the appropriate amounts and Salaries Payable for net pay. Remember that employees are paid on the last day of each month. Applied factory overhead to Job No is based upon 125% of direct labor cost. Jan. 4 Transferred the completed job to the finished goods account. 5 Sold and shipped Job No to the appropriate customer. All sales are on account 1/10, net 30 days, FOB shipping point. Hydro Paddle Boards, Inc. marks up all work by 40% of the job cost. Refer to the individual Job Order Cost Sheet for the total cost of the job and multiply the total cost by 140% to determine the selling price for each job. Hydro Paddle Boards, Inc. maintains a perpetual inventory system. Each time a sale is made to a customer, you must debit Cost of Goods Sold and credit Finished Goods for the cost of the job. 8 Requisitioned $2, of indirect materials and factory supplies to be used in the manufacture of all jobs currently in process. (Materials Requisition No. 1680) 9 Paid Anabella Henriquez County Tax Collector, $12, for property taxes accrued as of December Purchased from GT Matrix Corporation $4, of indirect factory supplies, credit terms net 15 days. 9 Accepted a job for the manufacture of 66 units B1 (Beginner SUP) paddle boards for Rio Watersports. The promise date is February 14. The company began the job today, applying $11, of direct materials to Job No (Materials Requisition No. 1681) 10 Received a check from Tarpon Sports Ltd. for the amount due within the discount period. 5

8 Jan. 11 Paid Light Hardware, Inc. $18, in payment of the December 31 balance. 11 Applied $2, of direct materials to Job No (Materials Requisition No. 1682) 12 Received a check from Go Paddle Sales Company for the amount due after the discount period has expired. 15 Applied $4, of direct materials to Job No (Materials Requisition No. 1683) 16 Purchased $1, of factory supplies from Keyz Supplies Inc. and paid cash. 16 Applied $6, of direct labor to Job No. 1405, which will complete the job. (Time Ticket No. 260) Applied factory overhead using the appropriate rate. Transferred the completed job to the finished goods account. 16 Sold one Standard C1 (Competition) custom stand up paddle (SUP) board to a cash customer for $2, The cost of the goods shipped from finished goods inventory was $2, Requisitioned $2, of indirect materials and factory supplies to be used in all factory jobs currently in process. (Materials Requisition No. 1684) 17 Signed a contract with Extreme Board Systems for the manufacture of 77 units R1 (Racing 1) custom stand up paddle (SUP) boards. The promise date is February 15. The company began the job today, applying $8, of direct materials to Job No (Materials Requisition No. 1685) 17 Paid the sales manager of Hydro Paddle Boards, Inc. $ for customer entertaining. 18 Received a report from the treasurer that Blue Runner Sports Dealers, one of our customers, has declared bankruptcy. Wrote off the balance owed to Hydro Paddle Boards, Inc. by Blue Runner Sports Dealers. 18 Sold and shipped Job No to the appropriate customer. Refer to that job s Cost Record for the total cost of the job to determine the selling price. 22 Purchased $20, of direct materials from K.C. Epoxy Supply Company, credit terms net 30 days. 22 Accepted a job for the manufacture of 28 units R2 (Racing 2 SUP) for Four Oceanic Designers. The promise date is January 31. The company began the job today, applying $4, of direct materials to Job No (Materials Requisition No. 1686) Jan. 24 Paid GT Matrix Corporation the amount due today from the January 9 purchase. 25 Applied $3, of direct labor to Job No. 1402, which will complete the job. (Time Ticket No. 262) Applied factory overhead using the appropriate rate. Transferred the completed job to the finished goods account. 26 Sold and shipped Job No to the appropriate customer. Refer to that job s Cost Record for the total cost of the job to determine the selling price. 26 Applied $7, of direct labor to Job No. 1408, which will complete the job. (Time Ticket No. 264) Applied factory overhead using the appropriate rate. Transferred the completed job to the finished goods account. 29 Sold and shipped Job No to the appropriate customer. Refer to the Job Cost Record for the total cost of the job for billing purposes. 29 Paid D H2O Corp. amount due in payment of the January 1 balance. 29 Received a check from HP SUP Inc. for the amount due after the discount period has expired. 29 Paid Office $1, for postage added to postage meter. Expense this amount. 29 Paid Telephone Company $ for January phone service. 29 Paid Island Signs & Advertising Company $2, for designing ads for our new Internet website. 29 Paid Atlantic Power and Light Company $8, for heat, power, and light. Allocate 25% of this amount to Electricity Expense and 75% to Factory Overhead. 31 Applied $2, of direct labor to Job No (Time Ticket No. 266) Applied factory overhead using the appropriate rate. This job will not be completed until February. 31 Applied $8, of direct labor to Job No (Time Ticket No. 268) Applied factory overhead using the appropriate rate. This job will not be completed until March. 6

9 Jan. 31 Applied $2, of direct labor to Job No (Time Ticket No. 270) Applied factory overhead using the appropriate rate. This job will not be completed until February. 31 Received the following data on the monthly payroll from the payroll clerk: Direct labor (already recorded). $46, New payroll data (to be recorded): Factory: Indirect... $22, Superintendent s salary... 6, Nonfactory: Sales salaries... 23, Officers salaries... 14, Office salaries... 12, Record the monthly payroll in the general journal. Remember that direct labor payroll already has been recorded as it was incurred in January. Salaries for indirect labor are recorded only at the end of the month. Debit Factory Overhead for Indirect Labor and Superintendent s salaries, debit other salary expense accounts for the appropriate amounts, credit FICA Tax Payable for 7.5% of gross pay, credit Employees Income Tax Payable for 15% of gross pay, and credit Salaries Payable for the net pay. 31 Record the employer payroll taxes for January. All payroll taxes relating to factory personnel are debited to Factory Overhead; all payroll taxes related to nonfactory personnel are debited to Payroll Taxes Expense General. Use a simplified FICA tax rate of 7.5% of gross pay, a state unemployment tax rate of 5.4%, and a federal unemployment tax rate of 0.8%. Since this is the first month in the current year, no employee has reached the ceilings on the payroll taxes. Use the form on page 46 (optional) to determine the amounts for the journal entry. 31 Received a check from SaltWaterHut.com for the amount due after the discount period has expired. 31 Received a check from Fiji Stand-Up Paddle Board Co. for the amount due after the discount period has expired. Jan. 31 Paid all employees for wages earned in January. 31 Purchased $16, of direct materials on account from Light Hardware, Inc. (Complete the Trial Balance column of the work sheet at this point.) Adjusting Entries: Jan. 31 Insurance expired during January: Factory (debit Factory Overhead) $2, Selling General Office supplies inventory as of January 31, $3, Depreciation for the month: Factory equipment (debit Factory Overhead)... $1, Office equipment Amortization of patents for January (debit Factory Overhead)... $ Property tax accrued for the month: Factory (debit Factory Overhead) $ General Close out underapplied Factory Overhead of $2, to Cost of Goods Sold. 31 Based on past experience, Hydro Paddle Boards, Inc. estimates that $15, is a reasonable balance for the January 31 balance in the Allowance for Doubtful Accounts. 31 Income tax is based on 40% of income before tax. Accrue income tax owed by debiting Income Tax Expense and crediting Income Tax Payable for $13, (Complete the work sheet and prepare financial statements at this point.) Closing Entries: Jan. 31 Prepare closing entries to close revenue and expense accounts to Income Summary, and transfer net income to Retained Earnings. (It is acknowledged that this step is not performed until year end; this is for instructional purposes only.) Prepare a - Closing Trial Balance. 7

10 Hydro Paddle Boards, Inc. EXHIBITS HYDRO PADDLE BOARDS, INC. Schedule of Accounts Receivable January 1, Name Balance Aqua-Stream Paddle Board Company... $ 6, Blue Runner Sports Dealers... 4, Calm Waters Board Corporation... 16, Extra Board Systems... 26, Fiji Stand-Up Paddle Board Co , Go Paddle Sales Company... 14, HP SUP Inc , Tarpon Sports Ltd... 21, Total... $175, HYDRO PADDLE BOARDS, INC. Schedule of Accounts Payable January 1, Name Balance Coco PVC Company... $21, D H2O Corp , Hi-Foam Products Company... 16, Light Hardware, Inc , Total... $93,

11 HYDRO PADDLE BOARDS, INC. Trial Balance January 1, Account Account Title Debit Credit Number 110 Cash... $ 157, Accounts Receivable , Allowance for Doubtful Accounts... $ 006, Direct Materials , Indirect Materials and Factory Supplies... 38, Work in Process , Finished Goods... 42, Prepaid Insurance... 14, Office Supplies... 3, Factory Equipment , Accumulated Depreciation Factory Equipment , Office Equipment , Accumulated Depreciation Office Equipment... 42, Organization Costs... 14, Patents... 27, Accounts Payable... 93, Employees Income Tax Payable... 26, FICA Tax Payable... 17, Federal Unemployment Tax Payable State Unemployment Tax Payable Property Tax Payable... 12, Income Tax Payable... 14, Common Stock ($10 Par) , Paid-In Capital in Excess of Par Common Stock , Retained Earnings , Totals... $1,506, $1,506,

12 Hydro Paddle Boards, Inc. General Ledger CHART OF ACCOUNTS Assets ( ) Current Assets 110 Cash 111 Accounts Receivable 112 Allowance for Doubtful Accounts 121 Direct Materials 122 Indirect Materials and Factory Supplies 123 Work in Process 124 Finished Goods 131 Prepaid Insurance 132 Office Supplies Fixed Assets 161 Factory Equipment 162 Accumulated Depreciation Factory Equipment 163 Office Equipment 164 Accumulated Depreciation Office Equipment Intangible Assets 171 Organization Costs 172 Patents Liabilities ( ) 210 Accounts Payable 211 Salaries Payable 221 Employees Income Tax Payable 222 FICA Tax Payable 223 Federal Unemployment Tax Payable 224 State Unemployment Tax Payable 225 Property Tax Payable 226 Income Tax Payable Owners Equity ( ) 310 Common Stock ($10 Par) 311 Paid-In Capital in Excess of Par 312 Retained Earnings 313 Income Summary Revenues ( ) 410 Sales 411 Sales Discounts Expenses ( ) 501 Cost of Goods Sold 511 Factory Overhead 512 Advertising Expense Print 513 Advertising Expense Internet 514 Electricity Expense 515 Insurance Expense Selling 516 Insurance Expense General 517 Sales Salaries Expense 518 Officers Salaries Expense 519 Office Salaries Expense 520 Depreciation Expense Office Equipment 521 Office Supplies Expense 522 Payroll Taxes Expense General 523 age Expense General 524 Property Tax Expense 525 Rent Expense General 526 Telephone Expense 527 Travel and Entertainment Expense 528 Uncollectible Accounts Expense 599 Miscellaneous Expense Other Income and Expense ( ) 610 Interest Income 611 Other Income 612 Interest Expense 613 Other Expense Income Tax Expense 710 Income Tax Expense Accounts Receivable Ledger A.J. Outfitters Company Aqua-Stream Paddle Board Company Blue Runner Sports Dealers Calm Waters Board Corporation Extra Board Systems Fiji Stand-Up Paddle Board Co. Four Oceanic Designers Go Paddle Sales Company HP SUP, Inc. SaltWaterHut.com Tarpon Sports Ltd Accounts Payable Ledger Coco PVC Company D H2O Corp. GT Matrix Corporation Hi-Foam Products Company K.C. Epoxy Supply Company Light Hardware, Inc. 10

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22 ACCOUNT Cash GENERAL LEDGER 110 Jan. 1 Balance

23 ACCOUNT Accounts Receivable 111 Jan. 1 Balance ACCOUNT Allowance for Doubtful Accounts 112 Jan. 1 Balance ACCOUNT Direct Materials 121 Jan. 1 Balance

24 ACCOUNT Indirect Materials and Factory Supplies 122 Jan. 1 Balance ACCOUNT Work in Process 123 Jan. 1 Balance

25 ACCOUNT Finished Goods 124 Jan. 1 Balance ACCOUNT Prepaid Insurance 131 Jan. 1 Balance ACCOUNT Office Supplies 132 Jan. 1 Balance

26 ACCOUNT Factory Equipment 161 Jan. 1 Balance ACCOUNT Accumulated Depreciation Factory Equipment 162 Jan. 1 Balance ACCOUNT Office Equipment 163 Jan. 1 Balance ACCOUNT Accumulated Depreciation Office Equipment 164 Jan. 1 Balance

27 ACCOUNT Organization Costs 171 Jan. 1 Balance ACCOUNT Patents 172 Jan. 1 Balance ACCOUNT Accounts Payable 210 Jan. 1 Balance

28 ACCOUNT Salaries Payable 211 ACCOUNT Employees Income Tax Payable 221 Jan. 1 Balance

29 ACCOUNT FICA Tax Payable 222 Jan. 1 Balance ACCOUNT Federal Unemployment Tax Payable 223 Jan. 1 Balance ACCOUNT State Unemployment Tax Payable 224 Jan. 1 Balance

30 ACCOUNT Property Tax Payable 225 Jan. 1 Balance ACCOUNT Income Tax Payable 226 Jan. 1 Balance ACCOUNT Common Stock ($10 Par) 310 Jan. 1 Balance ACCOUNT Paid-In Capital in Excess of Par 311 Jan. 1 Balance

31 ACCOUNT Retained Earnings 312 Jan. 1 Balance ACCOUNT Income Summary 313 ACCOUNT Sales 410 ACCOUNT Sales Discounts

32 ACCOUNT Cost of Goods Sold 501 ACCOUNT Factory Overhead

33 ACCOUNT Advertising Expense Print 512 ACCOUNT Advertising Expense Internet 513 ACCOUNT Electricity Expense 514 ACCOUNT Insurance Expense Selling 515 ACCOUNT Insurance Expense General

34 ACCOUNT Sales Salaries Expense 517 ACCOUNT Officers Salaries Expense 518 ACCOUNT Office Salaries Expense 519 ACCOUNT Depreciation Expense Office Equipment

35 ACCOUNT Office Supplies Expense 521 ACCOUNT Payroll Taxes Expense General 522 ACCOUNT age Expense General 523 ACCOUNT Property Tax Expense

36 ACCOUNT Rent Expense General 525 ACCOUNT Telephone Expense 526 ACCOUNT Travel and Entertainment Expense 527 ACCOUNT Uncollectible Accounts Expense 528 ACCOUNT Miscellaneous Expense

37 ACCOUNT Interest Income 610 ACCOUNT Other Income 611 ACCOUNT Interest Expense 612 ACCOUNT Other Expense 613 ACCOUNT Income Tax Expense

38 ACCOUNTS RECEIVABLE LEDGER NAME A.J. Outfitters Company NAME Aqua-Stream Paddle Board Company Jan. 1 Balance NAME Blue Runner Sports Dealers Jan. 1 Balance NAME Calm Waters Board Corporation Jan. 1 Balance

39 NAME Extra Board Systems Jan. 1 Balance NAME Fiji Stand-Up Paddle Board Co. Jan. 1 Balance NAME Four Oceanic Designers NAME Go Paddle Sales Company Jan. 1 Balance

40 NAME HP SUP Inc. Jan. 1 Balance NAME SaltWaterHut.com NAME Tarpon Sports Ltd. Jan. 1 Balance

41 ACCOUNTS PAYABLE LEDGER NAME Coco PVC Company. Jan. 1 Balance NAME D H2O Corp.. Jan. 1 Balance NAME GT Matrix Corporation. 39

42 NAME Hi-Foam Products Company Jan. 1 Balance NAME K.C. Epoxy Supply Company NAME Light Hardware, Inc. Jan. 1 Balance

43 JOB COST RECORD JOB NUMBER: 1402 CUSTOMER NAME: Calm Waters Board Corporation JOB DESCRIPTION: 102 units I1 (Intermediate-SUP) PROMISED: January 29 STARTED: December 15 COMPLETED: DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD REQUISITION NUMBER AMOUNT TIME TICKET NUMBERS AMOUNT RATE AMOUNT Dec $18, Dec % of DL cost $33, Dec ,246 $26, OVERALL COST SUMMARY DIRECT MATERIALS.. DIRECT LABOR.. FACTORY OVERHEAD.. TOTAL JOB COST.. JOB COST RECORD JOB NUMBER: 1403 CUSTOMER NAME: SaltWaterHut.com JOB DESCRIPTION: 93 units B1 (Beginner-SUP) PROMISED: January 11 STARTED: December 18 COMPLETED: DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD REQUISITION NUMBER AMOUNT TIME TICKET NUMBERS AMOUNT RATE AMOUNT Dec $17, Dec % of DL cost $18, Dec ,250 $14, OVERALL COST SUMMARY DIRECT MATERIALS.. DIRECT LABOR.. FACTORY OVERHEAD.. TOTAL JOB COST.. 41

44 JOB COST RECORD JOB NUMBER: 1404 CUSTOMER NAME: Fiji Stand-Up Paddle Board Co. JOB DESCRIPTION: 94 units A1 (Advanced-SUP) PROMISED: February 5 STARTED: December 19 COMPLETED: DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD REQUISITION NUMBER AMOUNT TIME TICKET NUMBERS AMOUNT RATE AMOUNT Dec $26, Dec % of DL cost $15, Dec $12, OVERALL COST SUMMARY DIRECT MATERIALS.. DIRECT LABOR.. FACTORY OVERHEAD.. TOTAL JOB COST.. JOB COST RECORD JOB NUMBER: 1405 CUSTOMER NAME: A.J. Outfitters Company JOB DESCRIPTION: 75 units Advanced C1 (Competition-SUP) PROMISED: January 25 STARTED: December 22 COMPLETED: DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD REQUISITION NUMBER AMOUNT TIME TICKET NUMBERS AMOUNT RATE AMOUNT Dec $21, Dec % of DL cost $31, Dec ,256 $25, OVERALL COST SUMMARY DIRECT MATERIALS.. DIRECT LABOR.. FACTORY OVERHEAD.. TOTAL JOB COST.. 42

45 JOB COST RECORD JOB NUMBER: 1406 CUSTOMER NAME: Rio Watersports JOB DESCRIPTION: 66 units B1 (Beginner - SUP) PROMISED: February 14 STARTED: January 9 COMPLETED: DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD REQUISITION NUMBER AMOUNT TIME TICKET NUMBERS AMOUNT RATE AMOUNT OVERALL COST SUMMARY DIRECT MATERIALS.. DIRECT LABOR.. FACTORY OVERHEAD.. TOTAL JOB COST.. JOB COST RECORD JOB NUMBER: 1407 CUSTOMER NAME: Extreme Board Systems JOB DESCRIPTION: 77 units R1 (Racing 1 - SUP) PROMISED: February 15 STARTED: January 17 COMPLETED: DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD REQUISITION NUMBER AMOUNT TIME TICKET NUMBERS AMOUNT RATE AMOUNT OVERALL COST SUMMARY DIRECT MATERIALS.. DIRECT LABOR.. FACTORY OVERHEAD.. TOTAL JOB COST.. 43

46 JOB COST RECORD JOB NUMBER: 1408 CUSTOMER NAME: Four Oceanic Designers JOB DESCRIPTION: 28 units R2 (Racing 2 - SUP) PROMISED: January 31 STARTED: January 22 COMPLETED: DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD REQUISITION NUMBER AMOUNT TIME TICKET NUMBERS AMOUNT RATE AMOUNT OVERALL COST SUMMARY DIRECT MATERIALS.. DIRECT LABOR.. FACTORY OVERHEAD.. TOTAL JOB COST.. JOB NUMBER: CUSTOMER NAME: JOB DESCRIPTION: JOB COST RECORD PROMISED: STARTED: COMPLETED: DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD REQUISITION NUMBER AMOUNT TIME TICKET NUMBERS AMOUNT RATE AMOUNT OVERALL COST SUMMARY DIRECT MATERIALS.. DIRECT LABOR.. FACTORY OVERHEAD.. TOTAL JOB COST.. 44

47 HYDRO PADDLE BOARDS, INC. Schedule of Accounts Receivable January 31, NAME HYDRO PADDLE BOARDS, INC. Schedule of Accounts Payable January 31, NAME 45

48 JOB HYDRO PADDLE BOARDS, INC. Schedule of Employer Payroll Taxes Allocation January WAGES EMPLOYER PAYROLL TAXES FICA (7.5%) FUTA (0.8%) SUTA (5.4%) TOTAL TAXES Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in

49 HYDRO PADDLE BOARDS, INC. Schedule of Unfinished Jobs January 31, JOB DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD TOTAL 47

50 HYDRO PADDLE Work For the Month Ended ACCOUNT TITLE TRIAL ADJUSTMENTS 1 Cash 1 2 Accounts Receivable 2 3 Allowance for Doubtful Accounts 3 4 Direct Materials 4 5 Indirect Materials & Factory Supplies 5 6 Work in Process 6 7 Finished Goods 7 8 Prepaid Insurance 8 9 Office Supplies 9 10 Factory Equipment Accum. Deprec. Factory Equip Office Equipment Accum. Deprec. Office Equip Organization Costs Patents Accounts Payable Employees Income Tax Payable FICA Tax Payable Federal Unemployment Tax Pay State Unemployment Tax Payable Property Tax Payable Income Tax Payable Common Stock ($10 Par) Paid-In Capital in Excess of Par Retained Earnings Sales Sales Discounts Cost of Goods Sold Factory Overhead Advertising Expense Print Advertising Expense Internet Electricity Expense 35 48

51 BOARDS, INC. Sheet January 31, ADJUSTED TRIAL INCOME STATEMENT SHEET

52 HYDRO PADDLE Work For the Month Ended ACCOUNT TITLE TRIAL ADJUSTMENTS 1 Insurance Expense Selling 1 2 Insurance Expense General 2 3 Sales Salaries Expense 3 4 Officers Salaries Expense 4 5 Office Salaries Expense 5 6 Depreciation Exp. Office Equip. 6 7 Office Supplies Expense 7 8 Payroll Taxes Expense General 8 9 age Expense General 9 10 Property Tax Expense Rent Expense General Telephone Expense Travel and Entertainment Expense Uncollectible Accounts Expense Income Tax Expense Net Income

53 BOARDS, INC. Sheet (Concluded) January 31, ADJUSTED TRIAL INCOME STATEMENT SHEET

54 FINANCIAL STATEMENTS HYDRO PADDLE BOARDS, INC. Income Statement For the Month Ended January 31, 52

55 HYDRO PADDLE BOARDS, INC. Retained Earnings Statement For the Month Ended January 31, 53

56 HYDRO PADDLE BOARDS, INC. Balance Sheet January 31, 54

57 HYDRO PADDLE BOARDS, INC. Balance Sheet (Concluded) January 31, 55

58 HYDRO PADDLE BOARDS, INC. -Closing Trial Balance January 31, 56

59 Extra Form: 57

60 Extra Form: 58

61 Hydro Paddle Boards, Inc. ANALYSIS TEST General Ledger 1. Cash balance, January 31 $ 2. Direct Materials balance, January 31 $ 3. Accounts Payable balance, January 31 $ 4. Retained Earnings balance, January 31 $ Accounts Receivable Ledger 5. Aqua-Stream Paddle Board Company balance, January 31 $ 6. Calm Waters Board Corporation balance, January 31 $ Accounts Payable Ledger 7. K.C. Epoxy Supply Company balance, January 31 $ 8. Light Hardware Inc. balance, January 31 $ Job Cost Records 9. Total job cost for Job No $ 10. Total job cost for Job No $ 11. Amount of factory overhead applied to Job No $ Work Sheet (manual version only) 12. Trial Balance columns totals $ 13. Adjusted Trial Balance columns totals $ 14. Income Statement Credit column total $ Income Statement 15. Net sales $ 16. Cost of goods sold $ 17. Total operating expenses $ 18. Net income before income tax $ Retained Earnings Statement 19. Net change in retained earnings $ 20. Retained Earnings balance, January 31 $ Balance Sheet 21. Total assets $ 22. Total liabilities $ -Closing Trial Balance 23. -closing trial balance totals $ 59

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