accounting summary

Learning Goal: I’m working on a accounting question and need guidance to help me learn.

Learning Goal: I’m working on a accounting multi-part question and need the explanation and answer to help me learn.

The file that says “problem 10.1A winter 2024” is what need to answered. The other file named “Problem 7.2A” is what the professor expects in terms of a complete problem. Use that file as a guide to complete the other one.

Wyoming Restoration Company completed the following selected transactions during July 20Y1:
TRANSACTIONS
July 1. Established a petty cash fund of $1,200.
July 12. The cash sales for the day, according to the cash register records, totaled $8,356, including sales
tax of $473. The actual cash received from cash sales was $8,389. Cost of goods sold related to
these sales was $3,360.
July 31. Petty cash on hand was $217. Replenished the petty cash fund for the following disbursements,
each evidenced by a petty cash receipt:
July 3. Store supplies, $510.
July 7. Express charges on merchandise sold, $90 (Delivery Expense).
July 9. Office supplies, $30.
July 13. Office supplies, $35.
July 19. Postage stamps, $50 (Office Supplies).
July 21. Repair to office file cabinet lock, $60 (Miscellaneous Administrative Expense).
July 22. Postage due on special delivery letter, $28 (Miscellaneous Administrative Expense).
July 24. Express charges on merchandise sold, $135 (Delivery Expense).
July 30. Office supplies, $25.
July 31. The cash sales for the day, according to the cash register records, totaled $10,289, including sales
tax of $582. The actual cash received from cash sales was $10,275. Cost of goods sold related to
these sales was $4,115.
Cathy’s templae
July 31. Decreased the petty cash fund by $100.
Required:
1 Journalize the transactions and post them to the general ledger.
2 Complete the worksheet. The adjusting entries for the month are:
Office supplies on hand were $1,000.
Store supplies on hand were $2,500.
Depreciation on the Office equipment was $250.
Depreciation of the Store equipment was $425.
Interest related to the note receivable for July was $75.
Interest related to the note payable for July was $260.
Salaries for the month of July are $4,800 and will be paid on August 5.
Insurance used in the month of July was $1,250.
3 Journalize and post the adjusting entries.
4 Prepare a multiple-step income statement.
5 Prepare a statement of stockholders’ equity.
6 Prepare a balance sheet.
7 Journalize and post the closing entries.
8 Prepare a post-closing trial balance.
CHART OF ACCOUNTS
Wyoming Restoration Company
General Ledger
110
111
120
131
132
141
145
146
151
181
191
192
193
194
210
221
222
231
241
310
311
312
ASSETS
Cash
Petty Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Merchandise Inventory
Office Supplies
Store Supplies
Prepaid Insurance
Land
Office Equipment
Accumulated Depreciation-Office Equipment
Store Equipment
Accumulated Depreciation-Store Equipment
LIABILITIES
Accounts Payable
Notes Payable
Interest Payable
Salaries Payable
Sales Tax Payable
EQUITY
Common Stock
Retained Earnings
Dividends
410
610
510
515
516
520
531
532
533
534
535
536
537
538
561
562
591
592
710
RT OF ACCOUNTS
Restoration Company
eneral Ledger
REVENUE
Sales
Interest Revenue
EXPENSES
Cost of Goods Sold
Credit Card Expense
Cash Short and Over
Sales Salaries Expense
Advertising Expense
Delivery Expense
Insurance Expense
Office Supplies Expense
Rent Expense
Repairs Expense
Selling Expenses
Store Supplies Expense
Depreciation Expense-Office Equipment
Depreciation Expense-Store Equipment
Miscellaneous Administrative Expense
Miscellaneous Selling Expense
Interest Expens
Cathy’s templae
GENERAL JOURNAL
DATE
DESCRIPTION
Page:
POST.
REF.
DEBIT
5
CREDIT
1 20Y1
2 July
1 Petty Cash Fund
111
Cash
110
3
4
1,200.00
1,200.00
Establish a $1,200 petty cash fund
July 1.
Established a petty cash fund of $1,200.
July 12.
The cash sales for the day, according to the cash register records, totaled $8,356, including sales
5
6
12 Cash
110
8,389.00
7
Cash Short and Over
516
33.00
8
Sales tax payable
241
473.00
9
Sales
410
7,883.00
10
Cash sales for the day
tax of $473. The actual cash received from cash sales was $8,389. Cost of goods sold related to
these sales was $3,360.
July 31.
11
12
13
Inventory
14
510
3,360.00
141
3,360.00
cost of the sales from 7/12
15
16
Petty cash on hand was $217. Replenished the petty cash fund for the following disbursements,
each evidenced by a petty cash receipt:
12 Cost of goods sold
31 Store supplies
July 3.
Store supplies, $510.
July 7.
Express charges on merchandise sold, $90 (Delivery Expense).
July 9.
Office supplies, $30.
July 13.
Office supplies, $35.
146
510.00
July 19.
Postage stamps, $50 (Office Supplies).
17
Delivery expense
532
225.00
July 21.
Repair to office file cabinet lock, $60 (Miscellaneous Administrative Expense).
18
Office supplies
145
140.00
July 22.
Postage due on special delivery letter, $28 (Miscellaneous Administrative Expense).
19
Miscellaneous Administrative Expense
591
88.00
July 24.
Express charges on merchandise sold, $135 (Delivery Expense).
20
Cash, Short and Over
516
20.00
July 30.
Office supplies, $25.
21
Cash
22
110
983.00
Reimbursing petty cash
July 31.
23
24
tax of $582. The actual cash received from cash sales was $10,275. Cost of goods sold related to
31 Cash
25
Cash Short and Over
110
10,275.00
516
14.00
these sales was $4,115.
26
Sales tax payable
241
582.00
27
Sales
410
9,707.00
28
Cash sales for the day
29
30
31 Cost of goods sold
31
Inventory
32
510
4,115.00
141
4,115.00
cost of the sales from 7/31
33
34
The cash sales for the day, according to the cash register records, totaled $10,289, including sales
31 Cash
35
36
37
General Journal
110
Petty Cash
Reduced the petty cash fund to $1,100
111
100.00
100.00
July 31.
Decreased the petty cash fund by $100.
Cathy’s templae
GENERAL JOURNAL
DATE
DESCRIPTION
1 20Y1
Adjusting Entries
2 July
31 Interst Receivable
3
Page:
POST.
REF.
132
Interest Revenue
610
5
31 Sales Salaries Expense
520
6
Salaries Payable
231
DEBIT
6
CREDIT
75.00
75.00
4
4,800.00
4,800.00
7
8
9
31 Insurance Expense
533
Prepaid Insurance
151
31 Office Supplies Expense
534
1,250.00
1,250.00
10
11
12
Office Supplies
390.00
145
390.00
13
14
15
31 Store Supplies Expense
Store Supplies
538
585.00
146
585.00
16
17
18
31 Depreciation Expense-Office Equipment
Accumulated Depreciation-Office Equipment
561
250.00
192
250.00
19
20
21
31 Depreciation Expense-Store Equipment
Accumulated Depreciation-Store Equipment
562
425.00
194
425.00
22
23
31 Interest Expense
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal Adjusting
Interest Payable
710
222
260.00
Cathy’s templae
260.00
GENERAL LEDGER
ACCOUNT:
DATE
20Y1
July
Cash
ACCOUNT NO:
ITEM
1
1
12
31
31
31
ACCOUNT:
POST
REF.

GJ5
GJ5
GJ5
GJ5
GJ5
Balance
DEBIT
CREDIT
1,200.00
8,389.00
10,275.00
100.00
983.00
Petty Cash
DEBIT
ITEM
1
31
ACCOUNT:
DATE
20Y1
July
ACCOUNT NO:
REF.
GJ5
GJ5
DEBIT
CREDIT
1,200.00
100.00
1
ACCOUNT:
1,200.00
1,100.00
DEBIT
CREDIT
DEBIT
Notes Receivable
ITEM
1
ACCOUNT:
REF.
DEBIT
CREDIT
DEBIT
ITEM
Balance
Adjusting
3464ac5ebebd8c2fe90787501caf42ac
CREDIT
15,000.00
Interest Receivable
1
31
ACCOUNT NO:
REF.

GJ6
131
BALANCE
POST
DATE
20Y1
July
CREDIT
ACCOUNT NO:

Balance
120
12,000.00
POST
DATE
20Y1
July
CREDIT
BALANCE

Balance
DEBIT
ACCOUNT NO:
POST
REF.
111
BALANCE
Accounts Receivable
ITEM
CREDIT
24,900.00
23,700.00
32,089.00
42,364.00
42,464.00
41,481.00
POST
DATE
20Y1
July
110
BALANCE
132
BALANCE
DEBIT
75.00
CREDIT
DEBIT
450.00
525.00
CREDIT
Cathy’s templae
ACCOUNT:
DATE
20Y1
July
Merchandise Inventory
ITEM
1
12
31
ACCOUNT:
ACCOUNT NO:
POST
REF.
DEBIT

GJ5
GJ5
Balance
CREDIT
3,360.00
4,115.00
Office Supplies
DEBIT
ITEM
1
31
31
ACCOUNT:
Balance
Adjusting
ACCOUNT NO:
REF.
DEBIT

GJ5
GJ6
CREDIT
140.00
390.00
Store Supplies
ITEM
1
31
31
ACCOUNT:
Balance
DEBIT
Adjusting
1,250.00
1,390.00
1,000.00
DEBIT

GJ5
GJ6
CREDIT
510.00
585.00
Prepaid Insurance
ITEM
1
31
ACCOUNT:
DATE
20Y1
July
DEBIT
1
31
ACCOUNT:
DATE
20Y1
July
Balance
Adjusting
ITEM
1
DEBIT
CREDIT
Balance
Adjusting
POST
REF.
DEBIT
CREDIT
DEBIT
DEBIT
CREDIT
DEBIT
CREDIT
3,750.00
4,000.00
250.00
DEBIT
CREDIT
DEBIT
CREDIT
26,000.00
ACCOUNT NO:
DEBIT
CREDIT
DEBIT
CREDIT
6,375.00
6,800.00
425.00
ACCOUNT NO:
ITEM
DEBIT
CREDIT
DEBIT
CREDIT
16,500.00
DEBIT
CREDIT
DEBIT
CREDIT
39,000.00
Interest Payable
ITEM
1
Balance
31 Adjusting
3464ac5ebebd8c2fe90787501caf42ac
ACCOUNT NO:
POST
REF.

GJ6
221
BALANCE

Balance
210
BALANCE
ACCOUNT NO:
POST
REF.
194
BALANCE

Balance
193
BALANCE

GJ6
POST
REF.
192
BALANCE
ACCOUNT NO:
POST
REF.
191
CREDIT
ACCOUNT NO:
Notes Payable
1
CREDIT
13,000.00

GJ6
POST
REF.
181
BALANCE
Accounts Payable
ITEM
DEBIT
ACCOUNT NO:
POST
REF.

Balance
ITEM
1
CREDIT
8,750.00
7,500.00
68,500.00
Accumulated Depreciation, Store Equipment
1
31
DEBIT
BALANCE
Store Equipment
ACCOUNT:
DATE
20Y1
July
POST
REF.

Balance
ITEM
ACCOUNT:
DATE
20Y1
July
1,250.00
Accumulated Depreciation, Office Equipment
ACCOUNT:
DATE
20Y1
July
CREDIT

Balance
ITEM
1
ACCOUNT:
DATE
20Y1
July
DEBIT

GJ6
Office Equipment
ACCOUNT:
DATE
20Y1
July
REF.
151
BALANCE
ACCOUNT NO:
ITEM
1
CREDIT
2,575.00
3,085.00
2,500.00
ACCOUNT NO:
Land
ACCOUNT:
DATE
20Y1
July
Balance
Adjusting
146
BALANCE
POST
DATE
20Y1
July
CREDIT
ACCOUNT NO:
REF.
145
BALANCE
POST
DATE
20Y1
July
CREDIT
45,000.00
41,640.00
37,525.00
POST
DATE
20Y1
July
141
BALANCE
222
BALANCE
DEBIT
CREDIT
260.00
DEBIT
CREDIT
1,560.00
1,820.00
ACCOUNT:
DATE
20Y1
July
Salaries Payable
ITEM
31 Adjusting
ACCOUNT:
ACCOUNT NO:
POST
REF.
DEBIT
GJ5
CREDIT
DEBIT
Sales Tax Payable
ITEM
1
12
31
4,800.00
ACCOUNT NO:
ACCOUNT:
REF.
DEBIT
CREDIT
DEBIT
Common Stock
ITEM
1
ACCOUNT:
DATE
20Y1
July
4,500.00
4,973.00
5,555.00
ACCOUNT NO:
ITEM
ACCOUNT:
DATE
20Y1
July
REF.
DEBIT
CREDIT
CREDIT
25,000.00
ACCOUNT NO:
POST
REF.

GJ7
GJ7
Balance
Closing
Closing
DEBIT
CREDIT
ITEM
Balance
Closing
3464ac5ebebd8c2fe90787501caf42ac
DEBIT
CREDIT
52,738.00
125,156.00
122,656.00
72,418.00
2,500.00
ACCOUNT NO:
POST
REF.

GJ7
311
BALANCE
Dividends
1
31
DEBIT

Balance
310
BALANCE
Retained Earnings
1
31
31
CREDIT
473.00
582.00
POST
DATE
20Y1
July
241
BALANCE

GJ5
GJ5
Balance
CREDIT
4,800.00
POST
DATE
20Y1
July
231
BALANCE
312
BALANCE
DEBIT
CREDIT
2,500.00
DEBIT
2,500.00
–
CREDIT
ACCOUNT:
DATE
20Y1
July
Sales
ACCOUNT NO:
ITEM
1
12
31
31
ACCOUNT:
POST
REF.

GJ5
GJ5
GJ7
Balance
Closing
DEBIT
CREDIT
DEBIT
270,000.00
277,883.00
287,590.00
–
287,590.00
Cost of Goods Sold
ITEM
1
12
31
31
ACCOUNT NO:
ACCOUNT:
REF.

GJ5
GJ5
GJ7
Balance
Closing
DEBIT
CREDIT
DEBIT
115,475.00
108,000.00
111,360.00
115,475.00
–
3,360.00
4,115.00
Credit Card Expense
ITEM
1
31
ACCOUNT:
DATE
20Y1
July
1
12
31
31
31
ACCOUNT:
DATE
20Y1
July
REF.
DEBIT
CREDIT
1,250.00

GJ5
GJ5
GJ5
GJ7
Balance
Closing
1
31
31
Balance
Adjusting
Closing
3464ac5ebebd8c2fe90787501caf42ac
CREDIT
1,250.00
–
DEBIT
CREDIT
33.00
20.00
14.00
139.00
DEBIT
CREDIT
138.00
105.00
125.00
139.00
–
ACCOUNT NO:
POST
REF.

GJ6
GJ7
516
BALANCE
Sales Salaries Expense
ITEM
DEBIT
ACCOUNT NO:
POST
REF.
515
BALANCE
Cash Short and Over
ITEM
CREDIT
ACCOUNT NO:

GJ7
Balance
Closing
510
BALANCE
POST
DATE
20Y1
July
CREDIT
7,883.00
9,707.00
POST
DATE
20Y1
July
410
BALANCE
520
BALANCE
DEBIT
CREDIT
DEBIT
33,600.00
28,800.00
33,600.00
–
4,800.00
CREDIT
ACCOUNT:
DATE
20Y1
July
Advertising Expense
ITEM
1
31
ACCOUNT:
ACCOUNT NO:
POST
REF.
DEBIT

GJ7
Balance
Closing
CREDIT
1,900.00
Delivery Expense
DEBIT
ITEM
1
31
31
ACCOUNT NO:
ACCOUNT:
DATE
20Y1
July
ITEM
1
31
31
DEBIT
CREDIT
225.00
2,725.00
Balance
Adjusting
Closing
ITEM
1
31
31
Balance
Adjusting
Closing
ITEM
Balance
Closing
3464ac5ebebd8c2fe90787501caf42ac
CREDIT
2,500.00
2,725.00
–

GJ6
GJ7
DEBIT
CREDIT
1,250.00
7,500.00
DEBIT
CREDIT
6,250.00
7,500.00
–
ACCOUNT NO:
POST
REF.

GJ6
GJ7

GJ7
534
BALANCE
DEBIT
CREDIT
390.00
1,140.00
DEBIT
CREDIT
750.00
1,140.00
–
ACCOUNT NO:
POST
REF.
533
BALANCE
Rent Expense
1
31
DEBIT
ACCOUNT NO:
POST
REF.
Office Supplies Expense
ACCOUNT:
DATE
20Y1
July
Closing
532
BALANCE
Insurance Expense
ACCOUNT:
DATE
20Y1
July
REF.

GJ5
GJ7
Balance
CREDIT
1,900.00
–
POST
DATE
20Y1
July
531
BALANCE
535
BALANCE
DEBIT
CREDIT
DEBIT
17,500.00
17,500.00
–
CREDIT
ACCOUNT:
DATE
20Y1
July
Repairs Expense
ITEM
1
31
ACCOUNT:
ACCOUNT NO:
POST
REF.
DEBIT

GJ7
Balance
Closing
CREDIT
3,500.00
Selling Expenses
DEBIT
ITEM
1
31
ACCOUNT NO:
ACCOUNT:
REF.
DEBIT
CREDIT
6,000.00
Store Supplies Expense
DEBIT
ITEM
1
31
31
ACCOUNT:
Balance
Adjusting
Closing
ACCOUNT NO:
REF.

GJ6
GJ7
DEBIT
CREDIT
585.00
2,835.00
Depreciation Expense-Office Equipment
ITEM
1
31
31
ACCOUNT:
Balance
Adjusting
Closing
REF.

GJ6
GJ7
DEBIT
ACCOUNT NO:
1
31
31
Balance
Adjusting
Closing
3464ac5ebebd8c2fe90787501caf42ac
REF.

GJ6
GJ7
561
BALANCE
DEBIT
CREDIT
250.00
1,750.00
Depreciation Expense-Store Equipment
ITEM
CREDIT
2,250.00
2,835.00
–
DEBIT
CREDIT
1,500.00
1,750.00
–
ACCOUNT NO:
POST
DATE
20Y1
July
538
BALANCE
POST
DATE
20Y1
July
CREDIT
6,000.00
–
POST
DATE
20Y1
July
537
BALANCE

GJ7
Balance
Closing
CREDIT
3,500.00
–
POST
DATE
20Y1
July
536
BALANCE
562
BALANCE
DEBIT
CREDIT
425.00
2,975.00
DEBIT
2,550.00
2,975.00
–
CREDIT
ACCOUNT:
DATE
20Y1
July
Miscellaneous Administrative Expense
ITEM
1
31
31
ACCOUNT:
POST
REF.

GJ5
GJ7
Balance
Closing
ACCOUNT NO:
DEBIT
CREDIT
88.00
5,588.00
Miscellaneous Selling Expense
DEBIT
ACCOUNT:
ITEM
1
31
ACCOUNT NO:
REF.
DEBIT
CREDIT
DEBIT
10,000.00
10,000.00
–
Interest Revenue
ACCOUNT:
ITEM
REF.

GJ6
GJ7
1
Balance
31 Adjusting
31
Closing
DEBIT
CREDIT
DEBIT
ITEM
3464ac5ebebd8c2fe90787501caf42ac
CREDIT
450.00
525.00
–
75.00
525.00
Interest Expense
1
Balance
31 Adjusting
31
Closing
ACCOUNT NO:
REF.

GJ6
GJ7
610
BALANCE
POST
DATE
20Y1
July
CREDIT
ACCOUNT NO:
POST
DATE
20Y1
July
592
BALANCE

GJ7
Balance
Closing
CREDIT
5,500.00
5,588.00
–
POST
DATE
20Y1
July
591
BALANCE
710
BALANCE
DEBIT
CREDIT
260.00
1,820.00
DEBIT
1,560.00
1,820.00
–
CREDIT
Wyoming Restoration Company
Worksheet
For the Month ended July 31, 20Y1
ACCOUNT NAME
TRIAL BALANCE
DEBIT
CREDIT
ADJUSTMENTS
DEBIT
CREDIT
ADJUSTED TRIAL BALANCE
DEBIT
CREDIT
INCOME STATEMENT
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
1 Cash
41,481.00
41,481.00
2 Petty Cash
1,100.00
1,100.00
1,100.00
3 Accounts Receivable
12,000.00
12,000.00
12,000.00
4 Notes Receivable
15,000.00
15,000.00
15,000.00
5 Interest Receivable
450.00
75.00
41,481.00
525.00
525.00
37,525.00
37,525.00
5 Merchandise Inventory
37,525.00
6 Office Supplies
1,390.00
390.00
1,000.00
1,000.00
7 Store Supplies
3,085.00
585.00
2,500.00
2,500.00
7 Prepaid Insurance
8,750.00
1,250.00
7,500.00
7,500.00
8 Land
68,500.00
68,500.00
68,500.00
9 Office Equipment
13,000.00
10 Accumulated Depreciation-Office Equipment
11 Store Equipment
13,000.00
3,750.00
250.00
26,000.00
13,000.00
4,000.00
4,000.00
26,000.00
12 Accumulated Depreciation-Store Equipment
6,375.00
13 Accounts Payable
16,500.00
14 Notes Payable
39,000.00
15 Interest Payable
1,560.00
425.00
16 Salaries Payable
26,000.00
6,800.00
6,800.00
16,500.00
16,500.00
39,000.00
39,000.00
260.00
1,820.00
1,820.00
4,800.00
4,800.00
4,800.00
17 Sales Tax Payable
5,555.00
5,555.00
5,555.00
18 Common Stock
25,000.00
25,000.00
25,000.00
19 Retained Earnings
20 Dividends
52,738.00
52,738.00
2,500.00
22 Sales
52,738.00
2,500.00
287,590.00
2,500.00
287,590.00
287,590.00
23 Cost of Goods Sold
115,475.00
115,475.00
115,475.00
24 Credit Card Expense
1,250.00
1,250.00
1,250.00
25 Cash Short and Over
139.00
139.00
139.00
26 Sales Salaries Expense
28,800.00
33,600.00
33,600.00
27 Advertising Expense
1,900.00
1,900.00
1,900.00
28 Delivery Expense
2,725.00
2,725.00
2,725.00
29 Insurance Expense
6,250.00
1,250.00
7,500.00
7,500.00
750.00
390.00
1,140.00
1,140.00
30 Office Supplies Expense
4,800.00
31 Rent Expense
17,500.00
17,500.00
17,500.00
29 Repairs Expense
3,500.00
3,500.00
3,500.00
30 Selling Expenses
6,000.00
6,000.00
6,000.00
31 Store Supplies Expense
2,250.00
585.00
2,835.00
2,835.00
32 Depreciation Expense-Office Equipment
1,500.00
250.00
1,750.00
1,750.00
33 Depreciation Expense-Store Equipment
2,550.00
425.00
2,975.00
2,975.00
34 Miscellaneous Administrative Expense
5,588.00
5,588.00
5,588.00
35 Miscellaneous Selling Expense
10,000.00
10,000.00
10,000.00
36 Interest Revenue
37 Interest Expense
38
450.00
1,560.00
438,518.00
75.00
260.00
438,518.00
8,035.00
525.00
1,820.00
8,035.00
444,328.00
525.00
1,820.00
444,328.00
215,697.00
39 Net income
72,418.00
39
288,115.00
40
41
288,115.00
228,631.00
156,213.00
288,115.00
228,631.00
228,631.00
72,418.00
Cathy’s templae
GENERAL JOURNAL
DATE
1 20Y1
2 July
3
DESCRIPTION
Page:
POST.
REF.
DEBIT
410
287,590.00
610
525.00
7
CREDIT
Closing entries
31 Sales
Interest Revenue
4
Cost of Goods Sold
510
115,475.00
5
Credit Card Expense
515
1,250.00
6
Cash Short and Over
516
139.00
7
Sales Salaries Expense
520
33,600.00
8
Advertising Expense
531
1,900.00
9
Delivery Expense
532
2,725.00
10
Insurance Expense
533
7,500.00
11
Office Supplies Expense
534
1,140.00
12
Rent Expense
535
17,500.00
13
Repairs Expense
536
3,500.00
14
Selling Expenses
537
6,000.00
15
Store Supplies Expense
538
2,835.00
16
Depreciation Expense-Office Equipment
561
1,750.00
17
Depreciation Expense-Store Equipment
562
18
Miscellaneous Administrative Expense
591
5,588.00
19
Miscellaneous Selling Expense
592
10,000.00
20
Interest Expense
710
1,820.00
21
Retained Earnings
311
72,418.00
2,975.00
22
23
24
31 Retained Earnings
Dividends
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal Closing
311
312
2,500.00
Cathy’s templae
2,500.00
Wyoming Restoration Company
Income Statement
For the Month ended July 31, 20Y1
Sales
Cost of goods sold
Gross profit
Selling expenses:
Sales Salaries Expense
Miscellaneous Selling Expense
Selling Expenses
Depreciation Expense, Store Equipment
Store Supplies Expense
Delivery Expense
Advertising Expense
Credit Card Expense
Cash Short and Over
Total selling expenses
Administrative expenses:
Rent Expense
Insurance Expense
Miscellaneous Administrative Expense
Repairs Expense
Depreciation Expense, Office Equipment
Office Supplies Expense
Total administrative expenses
Total operating expenses
Income from Operations
Other revenues and expenses
Interest Revenue
Interest Expense
Total other revenues and expenses
Net income
$
$
$
33,600
10,000
6,000
2,975
2,835
2,725
1,900
1,250
139
$
$
287,590
(115,475)
172,115
61,424
17,500
7,500
5,588
3,500
1,750
1,140
36,978
98,402
73,713
(525)
1,820
$
1,295
72,418
Cathy’s templae
Cathy’s templae
Wyoming Restoration Company
Statement of Stockholders’ Equity
For the Month ended July 31, 20Y1
Beginning balance July 1, 20Y1
Add: Net income (or Less: Net loss)
Less: Dividends
Ending balance July 31, 20Y1
Retained
Common Stock
Earnings
$
25,000 $
52,738
72,418
(2,500)
$
25,000 $
122,656
Total
Stockholders’
Equity
$
77,738
72,418
(2,500)
$
147,656
Cathy’s templae
Cathy’s templae
Wyoming Restoration Company
Balance Sheet
July 31, 20Y1
Assets
Current Assets
Cash
Petty Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Merchandise Inventory
Office Supplies
Store Supplies
Prepaid Insurance
Total current assets
Property, Plant and Equipment
Land
Office Equipment
Accumulated Depreciation—Office Equipment
Store Equipment
Accumulated Depreciation—Store Equipment
Total Property, Plant and Equipment
Total Assets
$
41,481
1,100
12,000
15,000
525
37,525
1,000
2,500
7,500
$
118,631
68,500
$
$
13,000
(4,000)
26,000
(6,800)
9,000
$
19,200
96,700
215,331
$
67,675
Liabilities
Current liabilities
Accounts Payable
Notes Payable
Interest Payable
Salaries Payable
Sales Tax Payable
Total liabilities
Stockholders’ Equity
Common Stock
Retained earnings
Total stockholders’ equity
Total liabilities and stockholders’ equity
$
$
16,500
39,000
1,820
4,800
5,555
25,000
122,656
147,656
$
215,331
Cathy’s templae
Wyoming Restoration Company
Post-Closing Trial Balance
July 31, 20Y1
Account
Cash
Debit
Credit
41,481
Petty Cash
1,100
Accounts Receivable
12,000
Notes Receivable
15,000
Interest Receivable
525
Merchandise Inventory
37,525
Office Supplies
1,000
Store Supplies
2,500
Prepaid Insurance
7,500
Land
68,500
Office Equipment
13,000
Accumulated Depreciation-Office Equipment
Store Equipment
4,000
26,000
Accumulated Depreciation-Store Equipment
6,800
Accounts Payable
16,500
Notes Payable
39,000
Interest Payable
1,820
Salaries Payable
4,800
Sales Tax Payable
5,555
Common Stock
25,000
Retained Earnings
122,656
Dividends
Sales
Cost of Goods Sold
Credit Card Expense
Cash Short and Over
Sales Salaries Expense
Advertising Expense
Delivery Expense
Insurance Expense
Office Supplies Expense
Rent Expense
Repairs Expense
Selling Expenses
Store Supplies Expense
Depreciation Expense-Office Equipment
Depreciation Expense-Store Equipment
Miscellaneous Administrative Expense
Miscellaneous Selling Expense
Interest Revenue
Interest Expense
226,131
Post Close Trial Balance
226,131
Cathy’s templae
Purpose:
Why do I ask you to complete accounting cycle problems in Excel?
I have noticed that students struggle with seeing how what we are currently working on fits into the accounting cycle.
When I was an accounting student we completed what were called “practice sets”. I loved them! It gave me a view into what
life might be like IF I decided to pursue a career in accounting.
There are practice sets out there that we could purchase and complete, but that is just an added expense. Instead, I have
taken problems already included in our text and expanded them into mini-practice sets.
My intention is NOT to have you spend a ton of time on these. I do expect that they take a little longer than my other “paper”
homework assignments, which is why they are worth more points. If you use the tricks I show you in my videos (try not to type things
that exist somewhere in the template–for example account names that live in the chart of accounts), I think that these should take you
about two hours of quality time to complete. If you get stuck because your trial balance in the worksheet does not balance, reach out to me!
Feel free to submit it for feedback. I am always happy to help you get unstuck. I try very hard to give feedback without giving you the
answer!
I want to be more transparent this quarter about how I plan to assign points on your assignments. This grading outline/rubric is a start to my attempt to do that:
Required Component:
1 Journalize the transactions and post them to the general ledger.
2 Complete the worksheet.
Trial balance
Adjustments
Adjusted trial balance
Income statement columns
Balance sheet columns
What I am looking for:
Entries are correctly analyzed, recorded in the journal and posted to the general ledger (including post references)
Balances from the general ledger are correctly entered and balances
All necessary adjusting entries are correctly calculated and entered in the worksheet
Adjustments are correctly applied to the trail balance showing we are still in balance
Correct income statement accounts are included, totaled to the bottom and net income or loss are properly shown
Correct balance sheet accounts are included, totaled to the bottom and net income or loss are properly shown
3
5
5
2
2
2
3 Journalize and post the adjusting entries.
Adjusting entries from the worksheet are recorded and properly posted to the general ledger (including post references)
2
4 Prepare a multiple-step income statement.
Income statement is correctly filled in, with net income or loss matching net income or loss in the worksheet
3
5 Prepare a statement of stockholders’ equity.
Statement of stockholders’ equity is properly completed, with correct beginning balances and changes to equity
3
6 Prepare a balance sheet.
Balance sheet is properly completed showing assets = liabilities + stockholders’ equity
3
7 Journalize and post the closing entries.
Closing entries are prepared utilizing data from the worksheet or general ledger to close revenue, expense and dividend accounts as needed
3
8 Prepare a post-closing trial balance.
Prepare a post-closing trial balance to demonstrate our debits equal our credits after closing entries have been posted.
2
Total points
35
CHART OF ACCOUNTS
Wyoming Restoration Company
General Ledger
110
111
120
131
132
141
145
146
151
181
191
192
193
194
210
221
222
231
241
310
311
312
ASSETS
Cash
Petty Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Merchandise Inventory
Office Supplies
Store Supplies
Prepaid Insurance
Land
Office Equipment
Accumulated Depreciation-Office Equipment
Store Equipment
Accumulated Depreciation-Store Equipment
LIABILITIES
Accounts Payable
Notes Payable
Interest Payable
Salaries Payable
Sales Tax Payable
EQUITY
Common Stock
Retained Earnings
Dividends
410
610
510
515
516
520
531
532
533
534
535
536
537
538
561
562
591
592
710
RT OF ACCOUNTS
Restoration Company
eneral Ledger
REVENUE
Sales
Interest Revenue
EXPENSES
Cost of Goods Sold
Credit Card Expense
Cash Short and Over
Sales Salaries Expense
Advertising Expense
Delivery Expense
Insurance Expense
Office Supplies Expense
Rent Expense
Repairs Expense
Selling Expenses
Store Supplies Expense
Depreciation Expense-Office Equipment
Depreciation Expense-Store Equipment
Miscellaneous Administrative Expense
Miscellaneous Selling Expense
Interest Expens
Wyoming Restoration Company completed the following selected transactions during July 20Y1:
TRANSACTIONS
July 1. Established a petty cash fund of $1,200.
July 12. The cash sales for the day, according to the cash register records, totaled $8,356, including sales
tax of $473. The actual cash received from cash sales was $8,389. Cost of goods sold related to
these sales was $3,360.
July 31. Petty cash on hand was $217. Replenished the petty cash fund for the following disbursements,
each evidenced by a petty cash receipt:
July 3. Store supplies, $510.
July 7. Express charges on merchandise sold, $90 (Delivery Expense).
July 9. Office supplies, $30.
July 13. Office supplies, $35.
July 19. Postage stamps, $50 (Office Supplies).
July 21. Repair to office file cabinet lock, $60 (Miscellaneous Administrative Expense).
July 22. Postage due on special delivery letter, $28 (Miscellaneous Administrative Expense).
July 24. Express charges on merchandise sold, $135 (Delivery Expense).
July 30. Office supplies, $25.
July 31. The cash sales for the day, according to the cash register records, totaled $10,289, including sales
tax of $582. The actual cash received from cash sales was $10,275. Cost of goods sold related to
these sales was $4,115.
July 31. Decreased the petty cash fund by $100.
Required:
1 Journalize the transactions and post them to the general ledger.
2 Complete the worksheet. The adjusting entries for the month are:
Office supplies on hand were $1,000.
Store supplies on hand were $2,500.
Depreciation on the Office equipment was $250.
Depreciation of the Store equipment was $425.
Interest related to the note receivable for July was $75.
Interest related to the note payable for July was $260.
Salaries for the month of July are $4,800 and will be paid on August 5.
Insurance used in the month of July was $1,250.
3 Journalize and post the adjusting entries.
4 Prepare a multiple-step income statement.
5 Prepare a statement of stockholders’ equity.
6 Prepare a balance sheet.
7 Journalize and post the closing entries.
8 Prepare a post-closing trial balance.
GENERAL JOURNAL
DATE
DESCRIPTION
Page:
POST.
REF.
DEBIT
5
CREDIT
1
2
1-Jul
3
Petty Cash Fund
Cash
4
111
1,200.00
110
TRANSACTIONS
1,200.00
5
6 12-Jul
July 1.
Established a petty cash fund of $1,200.
July 12.
The cash sales for the day, according to the cash register records, totaled $8,356, including sales
Establish a $1,200 petty cash fund
Cash
110
8,389.00
tax of $473. The actual cash received from cash sales was $8,389. Cost of goods sold related to
7
Cash Short and Over
516
33.00
8
Sales tax payable
241
473.00
9
Sales
410
7,883.00
10
these sales was $3,360.
July 31.
Cash sales for the day
each evidenced by a petty cash receipt:
11
12 31-Jul
13
Petty cash on hand was $217. Replenished the petty cash fund for the following disbursements,
July 3. Store supplies, $510.
Cost of goods sold
510
Inventory
141
14
3,360.00
July 7. Express charges on merchandise sold, $90 (Delivery Expense).
3,360.00
July 9. Office supplies, $30.
cost of the sales from 7/12
July 13. Office supplies, $35.
15
July 19. Postage stamps, $50 (Office Supplies).
16 31-Jul
Store supplies
146
510.00
July 21. Repair to office file cabinet lock, $60 (Miscellaneous Administrative Expense).
17
Delivery expense
532
225.00
July 22. Postage due on special delivery letter, $28 (Miscellaneous Administrative Expense).
18
Office supplies
145
140.00
July 24. Express charges on merchandise sold, $135 (Delivery Expense).
19
Miscellaneous Administrative Expense
591
88.00
July 30. Office supplies, $25.
20
Cash, Short and Over
516
20.00
21
Cash
22
110
983.00
July 31.
Reimbursing petty cash
tax of $582. The actual cash received from cash sales was $10,275. Cost of goods sold related to
23
these sales was $4,115.
24 31-Jul
Cash
110
10,275.00
25
Cash Short and Over
516
14.00
26
Sales tax payable
241
582.00
27
Sales
410
9,707.00
28
July 31.
Cash sales for the day
29
30 31-Jul
31
Cost of goods sold
510
Inventory
141
32
4,115.00
4,115.00
cost of the sales from 7/31
33
34 31-Jul
35
36
37
General Journal
The cash sales for the day, according to the cash register records, totaled $10,289, including sales
Cash
110
Petty Cash
Reduced the petty cash fund to $1,100
111
100.00
100.00
Decreased the petty cash fund by $100.
GENERAL JOURNAL
DATE
1
2 31-Jul
DESCRIPTION
Page:
POST.
REF.
CREDIT
Adjusting Entries
31 Interest Receivable
132
Interest Revenue
610
5
31 Sales Salaries Expense
520
6
Salaries Payable
231
8
31 Insurance Expense
533
9
Prepaid Insurance
151
11
31 Office Supplies Expense
534
12
Office Supplies
145
14
31 Store Supplies Expense
538
15
Store Supplies
146
3
DEBIT
6
75.00
75.00
4
4,800.00
4,800.00
7
1,250.00
1,250.00
10
390.00
390.00
13
585.00
585.00
16
17
18
31 Depreciation Expense-Office Equipment
Accumulated Depreciation-Office Equipment
561
250.00
192
250.00
19
20
21
31 Depreciation Expense-Store Equipment
Accumulated Depreciation-Store Equipment
562
425.00
194
425.00
22
23
24
31 Interest Expense
Interest Payable
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal Adjusting
710
222
260.00
260.00
GENERAL JOURNAL
DATE
1 20Y1
2 July
3
DESCRIPTION
Page:
POST.
REF.
DEBIT
7
CREDIT
Closing entries
31 Sales
Interest Revenue
410
287,590.00
610
525.00
4
Cost of Goods Sold
510
115,475.00
5
Credit Card Expense
515
1,250.00
6
Cash Short and Over
516
139.00
7
Sales Salaries Expense
520
33,600.00
8
Advertising Expense
531
1,900.00
9
Delivery Expense
532
2,725.00
10
Insurance Expense
533
7,500.00
11
Office Supplies Expense
534
1,140.00
12
Rent Expense
535
17,500.00
13
Repairs Expense
536
3,500.00
14
Selling Expenses
537
6,000.00
15
Store Supplies Expense
538
2,835.00
16
Depreciation Expense-Office Equipment
561
1,750.00
17
Depreciation Expense-Store Equipment
562
2,975.00
18
Miscellaneous Administrative Expense
591
5,588.00
19
Miscellaneous Selling Expense
592
10,000.00
20
Interest Expense
710
1,820.00
21
Retained Earnings
311
72,418.00
22
23
31 Retained Earnings
311
24
Dividends
312
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal Closing
2,500.00
2,500.00
GENERAL LEDGER
ACCOUNT:
Cash
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
1
1
12
31
31
31
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT

Balance
GJ5
GJ5
GJ5
GJ5
GJ5
1,200.00
8,389.00
10,275.00
100.00
983.00
Petty Cash
DEBIT
ACCOUNT NO:
ITEM
1
31
ACCOUNT:
REF.
GJ5
GJ5
CREDIT
1,200.00
100.00
Accounts Receivable
ITEM
DEBIT
1
ACCOUNT:
1,200.00
1,100.00
CREDIT

Balance
DEBIT
1
ACCOUNT:
ACCOUNT NO:
REF.
DEBIT
CREDIT

Balance
DEBIT
1
31
Balance
Adjusting
6a877f1a3b8a2a2945d47b97f6062842
CREDIT
15,000.00
Interest Receivable
ITEM
ACCOUNT NO:
REF.
132
BALANCE
DEBIT

GJ6
131
BALANCE
POST
DATE
20Y1
July
CREDIT
12,000.00
Notes Receivable
ITEM
120
BALANCE
DEBIT
POST
DATE
20Y1
July
CREDIT
ACCOUNT NO:
REF.
111
BALANCE
DEBIT
POST
DATE
20Y1
July
CREDIT
24,900.00
23,700.00
32,089.00
42,364.00
42,464.00
41,481.00
POST
DATE
20Y1
July
110
75.00
CREDIT
DEBIT
450.00
525.00
CREDIT
ACCOUNT:
Merchandise Inventory
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
1
12
31
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT

Balance
GJ5
GJ5
3,360.00
4,115.00
Office Supplies
DEBIT
ITEM
1
31
31
ACCOUNT NO:
ACCOUNT:
REF.
GJ5
GJ6
DEBIT
CREDIT
140.00
390.00
Store Supplies
DEBIT
ITEM
1
31
31
ACCOUNT NO:
ACCOUNT:
REF.
GJ5
GJ6
CREDIT
510.00
585.00
Prepaid Insurance
DEBIT
ITEM
1
31
ACCOUNT NO:
ACCOUNT:
REF.
CREDIT
GJ6
1,250.00
Land
DEBIT
ACCOUNT NO:
ITEM
1
ACCOUNT:
REF.
CREDIT

Balance
DEBIT
ACCOUNT:
1
ACCOUNT NO:
REF.
DEBIT
CREDIT
DEBIT
Accumulated Depreciation, Office Equipment
ITEM
6a877f1a3b8a2a2945d47b97f6062842
REF.
CREDIT
13,000.00
ACCOUNT NO:
POST
DATE
191
BALANCE

Balance
CREDIT
68,500.00
Office Equipment
ITEM
181
BALANCE
DEBIT
POST
DATE
20Y1
July
CREDIT
8,750.00
7,500.00
POST
DATE
20Y1
July
151
BALANCE
DEBIT

Balance
Adjusting
CREDIT
2,575.00
3,085.00
2,500.00
POST
DATE
20Y1
July
146
BALANCE
DEBIT

Balance
Adjusting
CREDIT
1,250.00
1,390.00
1,000.00
POST
DATE
20Y1
July
145
BALANCE

Balance
Adjusting
CREDIT
45,000.00
41,640.00
37,525.00
POST
DATE
20Y1
July
141
192
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
20Y1
July
1
31
ACCOUNT:

Balance
Adjusting
GJ6
3,750.00
4,000.00
250.00
Store Equipment
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
1
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT

Balance
DEBIT
Accumulated Depreciation, Store Equipment
ITEM
1
31
ACCOUNT:
REF.
ACCOUNT NO:
DEBIT
CREDIT
DEBIT
GJ6
6,375.00
6,800.00
425.00
Accounts Payable
ITEM
1
ACCOUNT:
ACCOUNT NO:
REF.
DEBIT
CREDIT
DEBIT
16,500.00
Notes Payable
ACCOUNT:
ITEM
1
ACCOUNT NO:
REF.
CREDIT
DEBIT
CREDIT

Balance
39,000.00
Interest Payable
ITEM
ACCOUNT NO:
1
Balance
31 Adjusting
6a877f1a3b8a2a2945d47b97f6062842
REF.
222
BALANCE
DEBIT
CREDIT

GJ6
221
BALANCE
DEBIT
POST
DATE
20Y1
July
CREDIT

Balance
210
BALANCE
POST
DATE
20Y1
July
CREDIT

Balance
Adjusting
194
BALANCE
POST
DATE
20Y1
July
CREDIT
26,000.00
POST
DATE
20Y1
July
193
260.00
DEBIT
CREDIT
1,560.00
1,820.00
ACCOUNT:
Salaries Payable
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
31 Adjusting
ACCOUNT:
REF.
BALANCE
DEBIT
GJ5
CREDIT
DEBIT
Sales Tax Payable
ITEM
1
12
31
ACCOUNT:
4,800.00
ACCOUNT NO:
REF.
DEBIT
CREDIT
DEBIT
GJ5
GJ5
4,500.00
4,973.00
5,555.00
473.00
582.00
Common Stock
ITEM
1
CREDIT

Balance
ACCOUNT NO:
REF.
310
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT

Balance
241
BALANCE
POST
DATE
20Y1
July
CREDIT
4,800.00
POST
DATE
20Y1
July
231
25,000.00
sccc
ACCOUNT:
Retained Earnings
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
1
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
DEBIT
52,738.00
Dividends
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
1
CREDIT

Balance
Balance
6a877f1a3b8a2a2945d47b97f6062842
REF.

311
312
BALANCE
DEBIT
CREDIT
DEBIT
2,500.00
CREDIT
ACCOUNT:
Sales
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
1
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
DEBIT
270,000.00
Cost of Goods Sold
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
1
12
31
31
ACCOUNT:
REF.
CREDIT
DEBIT
115,475.00
108,000.00
111,360.00
115,475.00
–

Balance
GJ5
GJ5
GJ7
Closing
3,360.00
4,115.00
Credit Card Expense
ITEM
1
31
ACCOUNT:
DEBIT
CREDIT
GJ7
1,250.00
Cash Short and Over
DEBIT
ITEM
1
12
31
31
31
ACCOUNT NO:
ACCOUNT:
REF.
GJ5
GJ5
GJ5
GJ7
DEBIT
CREDIT
33.00
20.00
14.00
139.00
Sales Salaries Expense
DEBIT
ITEM
1
31
31
Balance
Adjusting
Closing
6a877f1a3b8a2a2945d47b97f6062842
CREDIT
138.00
105.00
125.00
139.00
–
ACCOUNT NO:
POST
DATE
20Y1
July
REF.
520
BALANCE
DEBIT
CREDIT

GJ6
GJ7
516
BALANCE

Balance
Closing
CREDIT
1,250.00
–
POST
DATE
20Y1
July
515
BALANCE

Balance
Closing
CREDIT
ACCOUNT NO:
REF.
510
BALANCE
DEBIT
POST
DATE
20Y1
July
CREDIT

Balance
410
4,800.00
33,600.00
DEBIT
28,800.00
33,600.00
–
CREDIT
ACCOUNT:
Advertising Expense
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
1
31
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT

Balance
Closing
GJ7
1,900.00
Delivery Expense
DEBIT
ITEM
1
31
31
ACCOUNT NO:
ACCOUNT:
REF.
GJ5
GJ7
DEBIT
CREDIT
225.00
2,725.00
Insurance Expense
DEBIT
ITEM
1
31
31
ACCOUNT NO:
ACCOUNT:
REF.
GJ6
GJ7
DEBIT
CREDIT
1,250.00
7,500.00
Office Supplies Expense
DEBIT
ITEM
1
31
31
ACCOUNT NO:
ACCOUNT:
REF.
GJ6
GJ7
DEBIT
CREDIT
390.00
1,140.00
Rent Expense
DEBIT
ITEM
1
31
Balance
Closing
6a877f1a3b8a2a2945d47b97f6062842
CREDIT
750.00
1,140.00
–
ACCOUNT NO:
POST
DATE
20Y1
July
REF.
535
BALANCE
DEBIT
CREDIT

GJ7
534
BALANCE

Balance
Adjusting
Closing
CREDIT
6,250.00
7,500.00
–
POST
DATE
20Y1
July
533
BALANCE

Balance
Adjusting
Closing
CREDIT
2,500.00
2,725.00
–
POST
DATE
20Y1
July
532
BALANCE

Balance
Closing
CREDIT
1,900.00
–
POST
DATE
20Y1
July
531
17,500.00
DEBIT
17,500.00
–
CREDIT
ACCOUNT:
Repairs Expense
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
1
31
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT

Balance
Closing
GJ7
3,500.00
Selling Expenses
DEBIT
ITEM
1
31
ACCOUNT NO:
ACCOUNT:
REF.
DEBIT
CREDIT
GJ7
6,000.00
Store Supplies Expense
DEBIT
ITEM
1
31
31
ACCOUNT NO:
ACCOUNT:
REF.
GJ6
GJ7
DEBIT
CREDIT
585.00
2,835.00
Depreciation Expense-Office Equipment
DEBIT
ITEM
1
31
31
ACCOUNT:
REF.
ACCOUNT NO:
GJ6
GJ7
DEBIT
CREDIT
250.00
1,750.00
Depreciation Expense-Store Equipment
DEBIT
ITEM
1
31
31
Balance
Adjusting
Closing
6a877f1a3b8a2a2945d47b97f6062842
REF.
ACCOUNT NO:
562
BALANCE
DEBIT
CREDIT

GJ6
GJ7
CREDIT
1,500.00
1,750.00
–
POST
DATE
20Y1
July
561
BALANCE

Balance
Adjusting
Closing
CREDIT
2,250.00
2,835.00
–
POST
DATE
20Y1
July
538
BALANCE

Balance
Adjusting
Closing
CREDIT
6,000.00
–
POST
DATE
20Y1
July
537
BALANCE

Balance
Closing
CREDIT
3,500.00
–
POST
DATE
20Y1
July
536
425.00
2,975.00
DEBIT
2,550.00
2,975.00
–
CREDIT
ACCOUNT:
Miscellaneous Administrative Expense
ACCOUNT NO:
POST
DATE
20Y1
July
ITEM
1
31
31
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT

Balance
GJ5
GJ7
Closing
88.00
5,588.00
Miscellaneous Selling Expense
DEBIT
ACCOUNT:
ITEM
1
31
ACCOUNT NO:
REF.
DEBIT
CREDIT
GJ7
10,000.00
Interest Revenue
DEBIT
ACCOUNT:
ITEM
ACCOUNT NO:
REF.
CREDIT
DEBIT
CREDIT

1
Balance
31 Adjusting
31
Closing
GJ6
GJ7
450.00
525.00
–
75.00
525.00
Interest Expense
ITEM
ACCOUNT NO:
1
Balance
31 Adjusting
31
Closing
6a877f1a3b8a2a2945d47b97f6062842
REF.
710
BALANCE
DEBIT
CREDIT

GJ6
GJ7
610
BALANCE
DEBIT
POST
DATE
20Y1
July
CREDIT
10,000.00
–
POST
DATE
20Y1
July
592
BALANCE

Balance
Closing
CREDIT
5,500.00
5,588.00
–
POST
DATE
20Y1
July
591
260.00
1,820.00
DEBIT
1,560.00
1,820.00
–
CREDIT
Wyoming Restoration Company
Worksheet
For the Month ended July 31, 20Y1
ACCOUNT NAME
TRIAL BALANCE
DEBIT
CREDIT
ADJUSTMENTS
DEBIT
CREDIT
ADJUSTED TRIAL BALANCE
DEBIT
CREDIT
INCOME STATEMENT
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
1 Cash
41,481.00
41,481.00
41,481.00
2 Petty Cash
1,100.00
1,100.00
1,100.00
3 Accounts Receivable
12,000.00
12,000.00
12,000.00
4 Notes Receivable
15,000.00
15,000.00
15,000.00
5 Interest Receivable
450.00
525.00
525.00
37,525.00
37,525.00
390.00
1,000.00
1,000.00
3,085.00
585.00
2,500.00
2,500.00
8,750.00
1,250.00
7,500.00
7,500.00
68,500.00
68,500.00
68,500.00
13,000.00
13,000.00
13,000.00
5 Merchandise Inventory
37,525.00
6 Office Supplies
1,390.00
7 Store Supplies
7 Prepaid Insurance
8 Land
9 Office Equipment
10 Accumulated Depreciation-Office Equipment
11 Store Equipment
75.00
3,750.00
250.00
26,000.00
4,000.00
4,000.00
26,000.00
12 Accumulated Depreciation-Store Equipment
6,375.00
13 Accounts Payable
16,500.00
14 Notes Payable
39,000.00
15 Interest Payable
1,560.00
425.00
16 Salaries Payable
26,000.00
6,800.00
6,800.00
16,500.00
16,500.00
39,000.00
39,000.00
260.00
1,820.00
1,820.00
4,800.00
4,800.00
4,800.00
17 Sales Tax Payable
5,555.00
5,555.00
5,555.00
18 Common Stock
25,000.00
25,000.00
25,000.00
19 Retained Earnings
20 Dividends
52,738.00
52,738.00
2,500.00
22 Sales
52,738.00
2,500.00
287,590.00
2,500.00
287,590.00
287,590.00
23 Cost of Goods Sold
115,475.00
115,475.00
115,475.00
24 Credit Card Expense
1,250.00
1,250.00
1,250.00
25 Cash Short and Over
139.00
139.00
139.00
26 Sales Salaries Expense
28,800.00
33,600.00
33,600.00
27 Advertising Expense
1,900.00
1,900.00
1,900.00
28 Delivery Expense
2,725.00
2,725.00
2,725.00
29 Insurance Expense
6,250.00
1,250.00
7,500.00
7,500.00
750.00
390.00
1,140.00
1,140.00
30 Office Supplies Expense
4,800.00
31 Rent Expense
17,500.00
17,500.00
17,500.00
29 Repairs Expense
3,500.00
3,500.00
3,500.00
Wyoming Restoration Company
Worksheet
For the Month ended July 31, 20Y1
ACCOUNT NAME
TRIAL BALANCE
DEBIT
CREDIT
ADJUSTMENTS
DEBIT
CREDIT
ADJUSTED TRIAL BALANCE
DEBIT
CREDIT
INCOME STATEMENT
DEBIT
CREDIT
30 Selling Expenses
6,000.00
6,000.00
6,000.00
31 Store Supplies Expense
2,250.00
585.00
2,835.00
2,835.00
32 Depreciation Expense-Office Equipment
1,500.00
250.00
1,750.00
1,750.00
33 Depreciation Expense-Store Equipment
2,550.00
425.00
2,975.00
2,975.00
34 Miscellaneous Administrative Expense
5,588.00
5,588.00
5,588.00
35 Miscellaneous Selling Expense
10,000.00
10,000.00
10,000.00
36 Interest Revenue
37 Interest Expense
38
450.00
1,560.00
438,518.00
75.00
260.00
438,518.00
8,035.00
525.00
1,820.00
8,035.00
444,328.00
525.00
1,820.00
444,328.00
215,697.00
39 Net income
72,418.00
39
288,115.00
40
41
BALANCE SHEET
DEBIT
CREDIT
288,115.00
228,631.00
156,213.00
288,115.00
228,631.00
228,631.00
72,418.00
Wyoming Restoration Company
Income Statement
For the Month ended July 31, 20Y1
Sales
Cost of goods sold
Gross profit
Selling expenses:
Sales Salaries Expense
Miscellaneous Selling Expense
Selling Expenses
Depreciation Expense, Store Equipment
Store Supplies Expense
Delivery Expense
Advertising Expense
Credit Card Expense
Cash Short and Over
Total selling expenses
Administrative expenses:
Rent Expense
Insurance Expense
Miscellaneous Administrative Expense
Repairs Expense
Depreciation Expense, Office Equipment
Office Supplies Expense
Total administrative expenses
Total operating expenses
Income from Operations
Other revenues and expenses
Interest Revenue
Interest Expense
Total other revenues and expenses
Net income
$
$
$
33,600
10,000
6,000
2,975
2,835
2,725
1,900
1,250
139
$
$
287,590
(115,475)
172,115
61,424
17,500
7,500
5,588
3,500
1,750
1,140
36,978
98,402
73,713
(525)
1,820
$
1,295
72,418
Wyoming Restoration Company
Statement of Stockholders’ Equity
For the Month ended July 31, 20Y1
Beginning balance July 1, 20Y1
Add: Net income (or Less: Net loss)
Less: Dividends
Ending balance July 31, 20Y1
Retained
Common Stock
Earnings
$
25,000 $
52,738
72,418
(2,500)
$
25,000 $
122,656
Total
Stockholders’
Equity
$
77,738
72,418
(2,500)
$
147,656
Wyoming Restoration Company
Balance Sheet
July 31, 20Y1
Assets
Current Assets
Cash
Petty Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Merchandise Inventory
Office Supplies
Store Supplies
Prepaid Insurance
Total current assets
Property, Plant and Equipment
Land
Office Equipment
Accumulated Depreciation—Office Equipment
Store Equipment
Accumulated Depreciation—Store Equipment
Total Property, Plant and Equipment
Total Assets
$
41,481
1,100
12,000
15,000
525
37,525
1,000
2,500
7,500
$
118,631
68,500
$
$
13,000
(4,000)
26,000
(6,800)
9,000
$
19,200
96,700
215,331
$
67,675
Liabilities
Current liabilities
Accounts Payable
Notes Payable
Interest Payable
Salaries Payable
Sales Tax Payable
Total liabilities
Stockholders’ Equity
Common Stock
Retained earnings
Total stockholders’ equity
Total liabilities and stockholders’ equity
$
$
16,500
39,000
1,820
4,800
5,555
25,000
122,656
147,656
$
215,331
Wyoming Restoration Company
Post-Closing Trial Balance
July 31, 20Y1
Account
Debit
Credit
Cash
41,481
Petty Cash
1,100
Accounts Receivable
12,000
Notes Receivable
15,000
Interest Receivable
525
Merchandise Inventory
37,525
Office Supplies
1,000
Store Supplies
2,500
Prepaid Insurance
7,500
Land
68,500
Office Equipment
13,000
Accumulated Depreciation-Office Equipment
Store Equipment
4,000
26,000
Accumulated Depreciation-Store Equipment
6,800
Accounts Payable
16,500
Notes Payable
39,000
Interest Payable
1,820
Salaries Payable
4,800
Sales Tax Payable
5,555
Common Stock
25,000
Retained Earnings
122,656
Dividends
Sales
Cost of Goods Sold
Credit Card Expense
Cash Short and Over
Sales Salaries Expense
Advertising Expense
Delivery Expense
Insurance Expense
Office Supplies Expense
Rent Expense
Repairs Expense
Selling Expenses
Store Supplies Expense
Depreciation Expense-Office Equipment
Depreciation Expense-Store Equipment
Miscellaneous Administrative Expense
Miscellaneous Selling Expense
Interest Revenue
Interest Expense
Post Close Trial Balance
226,131
226,131
Purpose:
Why do I ask you to complete accounting cycle problems in Excel?
I have noticed that students struggle with seeing how what we are currently working on fits into the accounting cycle.
When I was an accounting student we completed what were called “practice sets”. I loved them! It gave me a view into what
life might be like IF I decided to pursue a career in accounting.
There are practice sets out there that we could purchase and complete, but that is just an added expense. Instead, I have
taken problems already included in our text and expanded them into mini-practice sets.
My intention is NOT to have you spend hours and hours on these. I do expect that they take a little longer than my other “paper”
homework assignments, which is why they are worth more points. If you use the tricks I show you in my videos (try not to type things
that exist somewhere in the template–for example account names that live in the chart of accounts), I think that these should take you
about two hours of quality time to complete. If you get stuck because your trial balance in the worksheet does not balance, reach out to me!
Feel free to submit it for feedback. I am always happy to help you get unstuck. I try very hard to give feedback without giving you the
answer!
I want to be more transparent this quarter about how I plan to assign points on your assignments. This grading outline/rubric is a start to my attempt to do that:
Required Component:
1 Journalize the transactions and post them to the general ledger.
2 Complete the worksheet.
Trial balance
Adjustments
Adjusted trial balance
Income statement columns
Balance sheet columns
What I am looking for:
Entries are correctly analyzed, recorded in the journal and posted to the general ledger (including post references)
Balances from the general ledger are correctly entered and balances
All necessary adjusting entries are correctly calculated and entered in the worksheet
Adjustments are correctly applied to the trail balance showing we are still in balance
Correct income statement accounts are included, totaled to the bottom and net income or loss are properly shown
Correct balance sheet accounts are included, totaled to the bottom and net income or loss are properly shown
Possible Earned
3
5
5
2
2
2
3 Journalize and post the adjusting entries.
Adjusting entries from the worksheet are recorded and properly posted to the general ledger (including post references)
2
4 Prepare a multiple-step income statement.
Income statement is correctly filled in, with net income or loss matching net income or loss in the worksheet
3
5 Prepare a statement of stockholders’ equity.
Statement of stockholders’ equity is properly completed, with correct beginning balances and changes to equity
3
6 Prepare a balance sheet.
Balance sheet is properly completed showing assets = liabilities + stockholders’ equity
3
7 Journalize and post the closing entries.
Closing entries are prepared utilizing data from the worksheet or general ledger to close revenue, expense and dividend accounts as needed
3
8 Prepare a post-closing trial balance.
Prepare a post-closing trial balance to demonstrate our debits equal our credits after closing entries have been posted.
2
Total points
35
0
The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar.
1 Purchased merchandise on account from Kirkwood Co., $200,000, terms n/30.
31 Issued a 30-day, 6% note for $200,000 to Kirkwood Co., on account.
Apr.
30 Paid Kirkwood Co. the amount owed on the note of March 31.
Jun.
1 Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 8% note.
Jul.
1 Purchased tools by issuing a $60,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.
16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 9% note
for $400,000. (Journalize both the debit and credit to the notes payable account.)
Aug.
15 Paid Triple Creek Bank the amount due on the note of July 16.
30 Paid Poulin Co. the amount due on the note of July 1.
Dec.
1 Purchased equipment from Greenwood Co. for $360,000, paying $160,000 cash and issuing a series of ten 6% notes
for $20,000 each, coming due at 30-day intervals.
22 Settled a product liability lawsuit with a customer for $50,000, payable in January. Accrued the loss in a litigation claims payable account.
31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
Required:
1 Journalize the entries to record the transactions, and post to the general ledger. Assume a 360-day year.
2 I have posted the Summary Journal that has been prepared to capture the transactions from the normal course of business in 2023
3 Complete the worksheet. Information for the adjusting entries are as follows:
a
Product warranty cost, $50,000.
b
Accrue interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.
c
The balance in the prepaid insurance account should be $4,000.
d
Depreciation is calculated based on the following:
The building has a $750 salvage value, 15 year life, and is adjusted using straightline depreciation
The office equpment has a 4 year life and will be depreciated using the double declining balance method with no anticipated salvage value.
The tools have a 5 year life, $500 salvage value and will be depreciated using the double declining balance method
e
The note receivable (balance informations is in the General Ledger) is a 5 month 5% note received on October 1
f
Inventory of supplies on hand shows a balance of $2,700.
g
Payroll for the month of December will be paid on January 3.
Salaries for the month not yet paid are $32,000. The employer and employee is responsible for Social Security tax at a rate of 6.2%
and Medicare tax at a rate of 1.45%. No employees have met the Social Security maximum. Round your calculations to the whole dollar.
Federal income tax is withheld from employees pay at the rate of 10%. Pensions are accrued at 10% of pay and are 100% employer funded.
4 Journalize the adjusting entries and post them to the general ledger.
5 Prepare a multi-step income statement for the year ended December 31, 2023.
6 Prepare the statement of stockholders equity for the year ended December 31, 2023.
7 Prepare the balance sheet dated December 31, 2023.
8 Journalize and post the closing entries.
9 Prepare a post-closing trial balance.
CHART OF ACCOUNTS
Sherwood Co.
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
127 Tools
128 Accumulated Depreciation-Tools
LIABILITIES
210 Accounts Payable-Kirkwood Co.
211 Accounts Payable-Greenwood Co.
212 Accounts Payable-Poulin Co.
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 FICA Payroll Taxes Payable
217 Employees Federal Income Tax Payable
218 Payroll Benefits Payable
228 Product Warranty Payable
229 Litigation Claims Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
410
610
510
520
524
525
526
529
531
532
533
534
535
536
538
539
540
541
710
720
HART OF ACCOUNTS
Sherwood Co.
General Ledger
REVENUE
Sales
Interest Revenue
EXPENSES
Cost of Goods Sold
Sales Salaries Expense
Depreciation Expense-Building
Delivery Expense
Repairs Expense
Selling Expenses
Rent Expense
Depreciation Expense-Office Equipment
Depreciation Expense-Tools
Insurance Expense
Supplies Expense
Payroll Tax Expense
Benefits Expense
Cash Short and Over
Product Warranty Expense
Miscellaneous Expense
Interest Expense
Litigation Loss
GENERAL JOURNAL
DATE
DESCRIPTION
Page:
POST.
REF.
DEBIT
26
CREDIT
1 2023
2 Dec
31 Cash
110
218,875.00
3
Accounts Receivable
111
25,000.00
4
Notes Receivable
113
18,000.00
5
Supplies
116
6,750.00
6
Prepaid Insurance
118
12,000.00
7
Accounts Payable-Kirkwood Co.
210
25,000.00
8
Accounts Payable-Poulin Co.
212
10,000.00
9
Dividends
312
15,000.00
10
Cost of Goods Sold
510
550,000.00
11
Sales Salaries Expense
520
360,000.00
12
Delivery Expense
525
25,000.00
13
Repairs Expense
526
7,500.00
14
Selling Expenses
529
35,000.00
15
Rent Expense
531
48,000.00
16
Payroll Tax Expense
536
72,000.00
17
Benefits Expense
538
108,000.00
18
Cash Short and Over
539
375.00
19
Miscellaneous Expense
541
17,000.00
20
Inventory
115
35,000.00
21
Accounts Payable-Greenwood Co.
211
18,500.00
22
Sales
410
1,500,000.00
23
Year end summary posting
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal-Summary
GENERAL JOURNAL
DATE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal
DESCRIPTION
Page:
POST.
REF.
DEBIT
24
CREDIT
GENERAL JOURNAL
DATE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal (2)
DESCRIPTION
Page:
POST.
REF.
DEBIT
25
CREDIT
GENERAL JOURNAL
DATE
1
2
3
4
5
6
7
11
12
13
14
15
16
17
18
19
20
21
22
8
9
10
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal Adjusting
DESCRIPTION
Page:
POST.
REF.
DEBIT
27
CREDIT
GENERAL JOURNAL
DATE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal Closing
DESCRIPTION
Page:
POST.
REF.
DEBIT
28
CREDIT
GENERAL LEDGER
ACCOUNT:
Cash
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
1
ACCOUNT:
REF.

GJ26
Balance
Summary
BALANCE
DEBIT
CREDIT
DEBIT
218,875.00
Accounts Receivable
ITEM
1
1
ACCOUNT NO:
ACCOUNT:
REF.

GJ26
Balance
Summary
DEBIT
CREDIT
DEBIT
ACCOUNT:
ACCOUNT NO:
REF.
CREDIT
DEBIT
CREDIT
ACCOUNT NO:
113
POST
ITEM
1
ACCOUNT:
Summary
REF.
GJ26
BALANCE
DEBIT
CREDIT
18,000.00
DEBIT
Inventory
ACCOUNT NO:
ITEM
1
1
CREDIT
18,000.00
POST
DATE
2023
Jan
Balance
Summary
e0edd6c7747d976db145e5ddfc5b1200
REF.

GJ26
112
BALANCE
DEBIT
Notes Receivable
DATE
CREDIT
12,000.00
37,000.00
25,000.00
POST
ITEM
111
BALANCE
Interest Receivable
DATE
CREDIT
464,900.00
683,775.00
POST
DATE
2023
Jan
110
115
BALANCE
DEBIT
CREDIT
35,000.00
DEBIT
45,000.00
10,000.00
CREDIT
ACCOUNT:
Supplies
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
1
ACCOUNT:
REF.

GJ26
Balance
Summary
BALANCE
DEBIT
CREDIT
DEBIT
6,750.00
Prepaid Insurance
ITEM
1
1
ACCOUNT NO:
ACCOUNT:
REF.

GJ26
Balance
Summary
DEBIT
CREDIT
DEBIT
1
ACCOUNT:
12,000.00
ACCOUNT NO:
REF.
CREDIT

Balance
DEBIT
1
ACCOUNT:
ACCOUNT NO:
REF.
DEBIT
CREDIT
DEBIT
75,000.00
Accumulated Depreciation, Building
ACCOUNT NO:
ACCOUNT:
ITEM
1
REF.
DEBIT
CREDIT
DEBIT
CREDIT

Balance
12,375.00
Office Equipment
ITEM
ACCOUNT NO:
e0edd6c7747d976db145e5ddfc5b1200
REF.
124
BALANCE
POST
DATE
CREDIT

Balance
123
BALANCE
POST
DATE
2023
Jan
CREDIT
68,500.00
Building
ITEM
120
BALANCE
DEBIT
POST
DATE
2023
Jan
CREDIT
9,000.00
21,000.00
Land
ITEM
118
BALANCE
POST
DATE
2023
Jan
CREDIT
16,250.00
23,000.00
POST
DATE
2023
Jan
116
125
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT:
Accumulated Depreciation, Office Equipment
ACCOUNT NO:
POST
DATE
ITEM
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
Tools
DEBIT
CREDIT
ACCOUNT NO:
127
POST
DATE
ITEM
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
Accumulated Depreciation, Tools
DEBIT
CREDIT
ACCOUNT NO:
128
POST
DATE
ITEM
REF.
ACCOUNT:
Accounts Payable-Kirkwood Co.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT NO:
210
POST
DATE
2023
Jan
ITEM
1
1
ACCOUNT:
REF.

GJ26
Balance
Summary
BALANCE
DEBIT
CREDIT
DEBIT
25,000.00
Accounts Payable–Greenwood Co.
ITEM
1
1
ACCOUNT:
REF.
ACCOUNT NO:
DEBIT
CREDIT
DEBIT
18,500.00
Accounts Payable–Poulin Co.
ITEM
1
1
Balance
Summary
e0edd6c7747d976db145e5ddfc5b1200
CREDIT
16,500.00
35,000.00
ACCOUNT NO:
POST
DATE
2023
Jan
REF.

GJ26
211
BALANCE

GJ26
Balance
Summary
CREDIT
35,000.00
10,000.00
POST
DATE
2023
Jan
126
212
BALANCE
DEBIT
10,000.00
CREDIT
DEBIT
CREDIT
10,000.00
–
ACCOUNT:
Interest Payable
ACCOUNT NO:
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Notes Payable
DEBIT
CREDIT
ACCOUNT NO:
214
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Salaries Payable
DEBIT
CREDIT
ACCOUNT NO:
215
POST
DATE
ITEM
ACCOUNT:
FICA Payroll Taxes Payable
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT NO:
216
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Employees Federal Income Tax Payable
DEBIT
CREDIT
ACCOUNT NO:
217
POST
DATE
ITEM
e0edd6c7747d976db145e5ddfc5b1200
REF.
213
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT:
Payroll Benefits Payable
ACCOUNT NO:
POST
DATE
ITEM
ACCOUNT:
Product Warranty Payable
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT NO:
228
POST
DATE
ITEM
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
Litigation Claims Payable
DEBIT
CREDIT
ACCOUNT NO:
229
POST
DATE
ITEM
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
Common Stock
DEBIT
CREDIT
ACCOUNT NO:
310
POST
DATE
2023
Jan
ITEM
1
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
DEBIT
25,000.00
Retained Earnings
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
ACCOUNT:
REF.
DEBIT
CREDIT
DEBIT
591,775.00
Dividends
ACCOUNT NO:
ITEM
1
CREDIT

Balance
Summary
e0edd6c7747d976db145e5ddfc5b1200
REF.
GJ26
311
BALANCE
POST
DATE
2023
Jan
CREDIT

Balance
218
312
BALANCE
DEBIT
15,000.00
CREDIT
DEBIT
15,000.00
CREDIT
ACCOUNT:
Sales
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
ACCOUNT:
Summary
REF.
BALANCE
DEBIT
GJ26
CREDIT
DEBIT
Cost of Goods Sold
ITEM
1
ACCOUNT:
Summary
1,500,000.00
ACCOUNT NO:
REF.
GJ26
DEBIT
CREDIT
550,000.00
DEBIT
1
ACCOUNT:
Summary
ACCOUNT NO:
REF.
GJ26
DEBIT
CREDIT
360,000.00
DEBIT
ACCOUNT:
ACCOUNT NO:
REF.
DEBIT
CREDIT
Delivery Expense
ITEM
1
ACCOUNT:
Summary
REF.
GJ26
DEBIT
CREDIT
ACCOUNT NO:
525
BALANCE
DEBIT
CREDIT
25,000.00
DEBIT
Repairs Expense
ITEM
1
Summary
e0edd6c7747d976db145e5ddfc5b1200
CREDIT
25,000.00
ACCOUNT NO:
POST
DATE
2023
Jan
REF.
GJ26
524
BALANCE
POST
DATE
2023
Jan
CREDIT
360,000.00
POST
ITEM
520
BALANCE
Depreciation Expense-Building
DATE
CREDIT
550,000.00
Sales Salaries Expense
ITEM
510
BALANCE
POST
DATE
2023
Jan
CREDIT
1,500,000.00
POST
DATE
2023
Jan
410
526
BALANCE
DEBIT
7,500.00
CREDIT
DEBIT
7,500.00
CREDIT
ACCOUNT:
Selling Expenses
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
ACCOUNT:
Summary
REF.
GJ26
BALANCE
DEBIT
CREDIT
35,000.00
DEBIT
Rent Expense
ACCOUNT:
ITEM
1
Summary
ACCOUNT NO:
REF.
GJ26
DEBIT
CREDIT
48,000.00
DEBIT
ACCOUNT:
Depreciation Expense-Tools
REF.
ACCOUNT NO:
ACCOUNT:
ITEM
REF.
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT NO:
533
BALANCE
DEBIT
CREDIT
Insurance Expense
DEBIT
CREDIT
ACCOUNT NO:
534
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Supplies Expense
DEBIT
CREDIT
ACCOUNT NO:
535
POST
DATE
ITEM
e0edd6c7747d976db145e5ddfc5b1200
REF.
532
BALANCE
POST
DATE
CREDIT
48,000.00
POST
ITEM
531
BALANCE
Depreciation Expense-Office Equipment
DATE
CREDIT
35,000.00
POST
DATE
2023
Jan
529
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT:
Payroll Tax Expense
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
ACCOUNT:
Summary
REF.
GJ26
BALANCE
DEBIT
CREDIT
72,000.00
DEBIT
Benefits Expense
ITEM
1
ACCOUNT:
Summary
ACCOUNT NO:
REF.
GJ26
DEBIT
CREDIT
108,000.00
DEBIT
1
ACCOUNT:
Summary
ACCOUNT NO:
REF.
GJ26
CREDIT
375.00
DEBIT
ACCOUNT:
ACCOUNT NO:
REF.
DEBIT
CREDIT
Miscellaneous Expense
ITEM
1
Summary
e0edd6c7747d976db145e5ddfc5b1200
REF.
GJ26
540
BALANCE
DEBIT
CREDIT
ACCOUNT NO:
541
POST
DATE
2023
Jan
CREDIT
375.00
POST
ITEM
539
BALANCE
DEBIT
Product Warranty Expense
DATE
CREDIT
108,000.00
Cash Short and Over
ITEM
538
BALANCE
POST
DATE
2023
Jan
CREDIT
72,000.00
POST
DATE
2023
Jan
536
BALANCE
DEBIT
17,000.00
CREDIT
DEBIT
17,000.00
CREDIT
ACCOUNT:
Interest Revenue
ACCOUNT NO:
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Interest Expense
DEBIT
CREDIT
ACCOUNT NO:
710
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Litigation Loss
DEBIT
CREDIT
ACCOUNT NO:
720
POST
DATE
ITEM
e0edd6c7747d976db145e5ddfc5b1200
REF.
610
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
Sherwood Co.
Worksheet
For the Month ended December 31, 2023
ACCOUNT NAME
1 Cash
2 Accounts Receivable
3 Interest Receivable
4 Notes Receivable
5 Inventory
5 Supplies
6 Prepaid Insurance
7 Land
7 Building
8 Accumulated Depreciation-Building
9 Office Equipment
10 Accumulated Depreciation-Office Equipment
11 Tools
12 Accumulated Depreciation-Tools
13 Accounts Payable-Kirkwood Co.
14 Accounts Payable-Greenwood Co.
15 Accounts Payable-Poulin Co.
16 Interest Payable
17 Notes Payable
18 Salaries Payable
19 FICA Payroll Taxes Payable
20 Employees Federal Income Tax Payable
21 Payroll Benefits Payable
22 Product Warranty Payable
23 Litigation Claims Payable
24 Common Stock
25 Retained Earnings
26 Dividends
27 Sales
28 Cost of Goods Sold
29 Sales Salaries Expense
30 Depreciation Expense-Building
31 Delivery Expense
TRIAL BALANCE
DEBIT
CREDIT
ADJUSTMENTS
DEBIT
CREDIT
ADJUSTED TRIAL BALANCE
DEBIT
CREDIT
INCOME STATEMENT
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
Sherwood Co.
Worksheet
For the Month ended December 31, 2023
ACCOUNT NAME
32 Repairs Expense
33 Selling Expenses
34 Rent Expense
35 Depreciation Expense-Office Equipment
36 Depreciation Expense-Tools
37 Insurance Expense
38 Supplies Expense
39 Payroll Tax Expense
40 Benefits Expense
41 Cash Short and Over
42 Product Warranty Expense
43 Miscellaneous Expense
44 Interest Revenue
45 Interest Expense
46 Litigation Loss
47
48
49
50
51
TRIAL BALANCE
DEBIT
CREDIT
ADJUSTMENTS
DEBIT
CREDIT
ADJUSTED TRIAL BALANCE
DEBIT
CREDIT
INCOME STATEMENT
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
Sherwood Co.
Income Statement
For the Month ended December 31, 2023
Sales
Cost of goods sold
Gross profit
Selling expenses:
Sales Salaries Expense
Delivery Expense
Selling Expenses
Payroll Tax Expense
Benefits Expense
Cash Short and Over
Product Warranty Expense
Total selling expenses
Administrative expenses:
Rent Expense
Depreciation Expense-Building
Repairs Expense
Depreciation Expense-Office Equipment
Depreciation Expense-Tools
Insurance Expense
Supplies Expense
Miscellaneous Expense
Total administrative expenses
Total operating expenses
Income from Operations
Other revenues and expenses
Interest Revenue
Interest Expense
Litigation Loss
Total other revenues and expenses
Net income
$
–
$
–
–
$
$
$
–
–
–
$
–
Sherwood Co.
Statement of Stockholders’ Equity
For the Month ended December 31, 2023
Beginning balance July 1, 20Y1
Add: Net income (or Less: Net loss)
Less: Dividends
Ending balance July 31, 20Y1
Retained
Common Stock
Earnings
$
$
–
$
–
$
–
Total
Stockholders’
Equity
$
$
–
Sherwood Co.
Balance Sheet
December 31, 2023
Assets
Current Assets
Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Inventory
Supplies
Prepaid Insurance
Total current assets
Property, Plant and Equipment
Land
Building
Accumulated Depreciation, Building
Office Equipment
Accumulated Depreciation—Office Equipment
Tools
Accumulated Depreciation-Tools
Total Property, Plant and Equipment
Total Assets
$
–
$
–
$
–
$
–
$
–
–
$
–
$
–
Liabilities
Current liabilities
Accounts Payable
Notes Payable
Interest Payable
Salaries Payable
FICA Payroll Taxes Payable
Employees Federal Income Tax Payable
Payroll Benefits Payable
Product Warranty Payable
Litigation Claims Payable
Total liabilities
$
–
Stockholders’ Equity
Common Stock
Retained earnings
Total stockholders’ equity
Total liabilities and stockholders’ equity
$
$
–
Sherwood Co.
Post-Closing Trial Balance
December 31, 2023
Account
Debit
Credit
Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Merchandise Inventory
Supplies
Prepaid Insurance
Land
Building
Accumulated Depreciation, Building
Office Equipment
Accumulated Depreciation-Office Equipment
Tools
Accumulated Depreciation-Tools
Accounts Payable-Kirkwood Co.
Accounts Payable-Greenwood Co.
Accounts Payable-Poulin Co.
Notes Payable
Interest Payable
Salaries Payable
FICA Payroll Taxes Payable
Employees Federal Income Tax Payable
Payroll Benefits Payable
Product Warranty Payable
Litigation Claims Payable
Common Stock
Retained Earnings
Dividends
Sales
Cost of Goods Sold
Sales Salaries Expense
Depreciation Expense-Building
Delivery Expense
Repairs Expense
Selling Expenses
Rent Expense
Depreciation Expense-Office Equipment
Depreciation Expense-Tools
Insurance Expense
Supplies Expense
Payroll Tax Expense
Benefits Expense
Cash Short and Over
Product Warranty Expense
Miscellaneous Expense
Interest Revenue
Interest Expense
Litigation Loss
Post Close Trial Balance
–
Purpose:
Why do I ask you to complete accounting cycle problems in Excel?
I have noticed that students struggle with seeing how what we are currently working on fits into the accounting cycle.
When I was an accounting student we completed what were called “practice sets”. I loved them! It gave me a view into what
life might be like IF I decided to pursue a career in accounting.
There are practice sets out there that we could purchase and complete, but that is just an added expense. Instead, I have
taken problems already included in our text and expanded them into mini-practice sets.
My intention is NOT to have you spend hours and hours on these. I do expect that they take a little longer than my other “paper”
homework assignments, which is why they are worth more points. If you use the tricks I show you in my videos (try not to type things
that exist somewhere in the template–for example account names that live in the chart of accounts), I think that these should take you
about two hours of quality time to complete. If you get stuck because your trial balance in the worksheet does not balance, reach out to me!
Feel free to submit it for feedback. I am always happy to help you get unstuck. I try very hard to give feedback without giving you the
answer!
I want to be more transparent this quarter about how I plan to assign points on your assignments. This grading outline/rubric is a start to my attempt to do that:
Required Component:
1 Journalize the transactions and post them to the general ledger.
2 Complete the worksheet.
Trial balance
Adjustments
Adjusted trial balance
Income statement columns
Balance sheet columns
What I am looking for:
Entries are correctly analyzed, recorded in the journal and posted to the general ledger (including post references)
Balances from the general ledger are correctly entered and balances
All necessary adjusting entries are correctly calculated and entered in the worksheet
Adjustments are correctly applied to the trail balance showing we are still in balance
Correct income statement accounts are included, totaled to the bottom and net income or loss are properly shown
Correct balance sheet accounts are included, totaled to the bottom and net income or loss are properly shown
Possible Earned
3
5
5
2
2
2
3 Journalize and post the adjusting entries.
Adjusting entries from the worksheet are recorded and properly posted to the general ledger (including post references)
2
4 Prepare a multiple-step income statement.
Income statement is correctly filled in, with net income or loss matching net income or loss in the worksheet
3
5 Prepare a statement of stockholders’ equity.
Statement of stockholders’ equity is properly completed, with correct beginning balances and changes to equity
3
6 Prepare a balance sheet.
Balance sheet is properly completed showing assets = liabilities + stockholders’ equity
3
7 Journalize and post the closing entries.
Closing entries are prepared utilizing data from the worksheet or general ledger to close revenue, expense and dividend accounts as needed
3
8 Prepare a post-closing trial balance.
Prepare a post-closing trial balance to demonstrate our debits equal our credits after closing entries have been posted.
2
Total points
35
0
The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar.
1 Purchased merchandise on account from Kirkwood Co., $200,000, terms n/30.
31 Issued a 30-day, 6% note for $200,000 to Kirkwood Co., on account.
Apr.
30 Paid Kirkwood Co. the amount owed on the note of March 31.
Jun.
1 Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 8% note.
Jul.
1 Purchased tools by issuing a $60,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.
16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 9% note
for $400,000. (Journalize both the debit and credit to the notes payable account.)
Aug.
15 Paid Triple Creek Bank the amount due on the note of July 16.
30 Paid Poulin Co. the amount due on the note of July 1.
Dec.
1 Purchased equipment from Greenwood Co. for $360,000, paying $160,000 cash and issuing a series of ten 6% notes
for $20,000 each, coming due at 30-day intervals.
22 Settled a product liability lawsuit with a customer for $50,000, payable in January. Accrued the loss in a litigation claims payable account.
31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
Required:
1 Journalize the entries to record the transactions, and post to the general ledger. Assume a 360-day year.
2 I have posted the Summary Journal that has been prepared to capture the transactions from the normal course of business in 2023
3 Complete the worksheet. Information for the adjusting entries are as follows:
a
Product warranty cost, $50,000.
b
Accrue interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.
c
The balance in the prepaid insurance account should be $4,000.
d
Depreciation is calculated based on the following:
The building has a $750 salvage value, 15 year life, and is adjusted using straightline depreciation
The office equpment has a 4 year life and will be depreciated using the double declining balance method with no anticipated salvage value.
The tools have a 5 year life, $500 salvage value and will be depreciated using the double declining balance method
e
The note receivable (balance informations is in the General Ledger) is a 5 month 5% note received on October 1
f
Inventory of supplies on hand shows a balance of $2,700.
g
Payroll for the month of December will be paid on January 3.
Salaries for the month not yet paid are $32,000. The employer and employee is responsible for Social Security tax at a rate of 6.2%
and Medicare tax at a rate of 1.45%. No employees have met the Social Security maximum. Round your calculations to the whole dollar.
Federal income tax is withheld from employees pay at the rate of 10%. Pensions are accrued at 10% of pay and are 100% employer funded.
4 Journalize the adjusting entries and post them to the general ledger.
5 Prepare a multi-step income statement for the year ended December 31, 2023.
6 Prepare the statement of stockholders equity for the year ended December 31, 2023.
7 Prepare the balance sheet dated December 31, 2023.
8 Journalize and post the closing entries.
9 Prepare a post-closing trial balance.
CHART OF ACCOUNTS
Sherwood Co.
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
127 Tools
128 Accumulated Depreciation-Tools
LIABILITIES
210 Accounts Payable-Kirkwood Co.
211 Accounts Payable-Greenwood Co.
212 Accounts Payable-Poulin Co.
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 FICA Payroll Taxes Payable
217 Employees Federal Income Tax Payable
218 Payroll Benefits Payable
228 Product Warranty Payable
229 Litigation Claims Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
410
610
510
520
524
525
526
529
531
532
533
534
535
536
538
539
540
541
710
720
HART OF ACCOUNTS
Sherwood Co.
General Ledger
REVENUE
Sales
Interest Revenue
EXPENSES
Cost of Goods Sold
Sales Salaries Expense
Depreciation Expense-Building
Delivery Expense
Repairs Expense
Selling Expenses
Rent Expense
Depreciation Expense-Office Equipment
Depreciation Expense-Tools
Insurance Expense
Supplies Expense
Payroll Tax Expense
Benefits Expense
Cash Short and Over
Product Warranty Expense
Miscellaneous Expense
Interest Expense
Litigation Loss
GENERAL JOURNAL
DATE
DESCRIPTION
Page:
POST.
REF.
DEBIT
26
CREDIT
1 2023
2 Dec
31 Cash
110
218,875.00
3
Accounts Receivable
111
25,000.00
4
Notes Receivable
113
18,000.00
5
Supplies
116
6,750.00
6
Prepaid Insurance
118
12,000.00
7
Accounts Payable-Kirkwood Co.
210
25,000.00
8
Accounts Payable-Poulin Co.
212
10,000.00
9
Dividends
312
15,000.00
10
Cost of Goods Sold
510
550,000.00
11
Sales Salaries Expense
520
360,000.00
12
Delivery Expense
525
25,000.00
13
Repairs Expense
526
7,500.00
14
Selling Expenses
529
35,000.00
15
Rent Expense
531
48,000.00
16
Payroll Tax Expense
536
72,000.00
17
Benefits Expense
538
108,000.00
18
Cash Short and Over
539
375.00
19
Miscellaneous Expense
541
17,000.00
20
Inventory
115
35,000.00
21
Accounts Payable-Greenwood Co.
211
18,500.00
22
Sales
410
1,500,000.00
23
Year end summary posting
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal-Summary
GENERAL JOURNAL
DATE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal
DESCRIPTION
Page:
POST.
REF.
DEBIT
24
CREDIT
GENERAL JOURNAL
DATE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal (2)
DESCRIPTION
Page:
POST.
REF.
DEBIT
25
CREDIT
GENERAL JOURNAL
DATE
1
2
3
4
5
6
7
11
12
13
14
15
16
17
18
19
20
21
22
8
9
10
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal Adjusting
DESCRIPTION
Page:
POST.
REF.
DEBIT
27
CREDIT
GENERAL JOURNAL
DATE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
General Journal Closing
DESCRIPTION
Page:
POST.
REF.
DEBIT
28
CREDIT
GENERAL LEDGER
ACCOUNT:
Cash
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
1
ACCOUNT:
REF.

GJ26
Balance
Summary
BALANCE
DEBIT
CREDIT
DEBIT
218,875.00
Accounts Receivable
ITEM
1
1
ACCOUNT NO:
ACCOUNT:
REF.

GJ26
Balance
Summary
DEBIT
CREDIT
DEBIT
ACCOUNT:
ACCOUNT NO:
REF.
CREDIT
DEBIT
CREDIT
ACCOUNT NO:
113
POST
ITEM
1
ACCOUNT:
Summary
REF.
GJ26
BALANCE
DEBIT
CREDIT
18,000.00
DEBIT
Inventory
ACCOUNT NO:
ITEM
1
1
CREDIT
18,000.00
POST
DATE
2023
Jan
Balance
Summary
a9b910ecfb32765b82ef3541f6244c9d
REF.

GJ26
112
BALANCE
DEBIT
Notes Receivable
DATE
CREDIT
12,000.00
37,000.00
25,000.00
POST
ITEM
111
BALANCE
Interest Receivable
DATE
CREDIT
464,900.00
683,775.00
POST
DATE
2023
Jan
110
115
BALANCE
DEBIT
CREDIT
35,000.00
DEBIT
45,000.00
10,000.00
CREDIT
ACCOUNT:
Supplies
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
1
ACCOUNT:
REF.

GJ26
Balance
Summary
BALANCE
DEBIT
CREDIT
DEBIT
6,750.00
Prepaid Insurance
ITEM
1
1
ACCOUNT NO:
ACCOUNT:
REF.

GJ26
Balance
Summary
DEBIT
CREDIT
DEBIT
1
ACCOUNT:
12,000.00
ACCOUNT NO:
REF.
CREDIT

Balance
DEBIT
1
ACCOUNT:
ACCOUNT NO:
REF.
DEBIT
CREDIT
DEBIT
75,000.00
Accumulated Depreciation, Building
ACCOUNT NO:
ACCOUNT:
ITEM
1
REF.
DEBIT
CREDIT
DEBIT
CREDIT

Balance
12,375.00
Office Equipment
ITEM
ACCOUNT NO:
a9b910ecfb32765b82ef3541f6244c9d
REF.
124
BALANCE
POST
DATE
CREDIT

Balance
123
BALANCE
POST
DATE
2023
Jan
CREDIT
68,500.00
Building
ITEM
120
BALANCE
DEBIT
POST
DATE
2023
Jan
CREDIT
9,000.00
21,000.00
Land
ITEM
118
BALANCE
POST
DATE
2023
Jan
CREDIT
16,250.00
23,000.00
POST
DATE
2023
Jan
116
125
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT:
Accumulated Depreciation, Office Equipment
ACCOUNT NO:
POST
DATE
ITEM
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
Tools
DEBIT
CREDIT
ACCOUNT NO:
127
POST
DATE
ITEM
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
Accumulated Depreciation, Tools
DEBIT
CREDIT
ACCOUNT NO:
128
POST
DATE
ITEM
REF.
ACCOUNT:
Accounts Payable-Kirkwood Co.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT NO:
210
POST
DATE
2023
Jan
ITEM
1
1
ACCOUNT:
REF.

GJ26
Balance
Summary
BALANCE
DEBIT
CREDIT
DEBIT
25,000.00
Accounts Payable–Greenwood Co.
ITEM
1
1
ACCOUNT:
REF.
ACCOUNT NO:
DEBIT
CREDIT
DEBIT
18,500.00
Accounts Payable–Poulin Co.
ITEM
1
1
Balance
Summary
a9b910ecfb32765b82ef3541f6244c9d
CREDIT
16,500.00
35,000.00
ACCOUNT NO:
POST
DATE
2023
Jan
REF.

GJ26
211
BALANCE

GJ26
Balance
Summary
CREDIT
35,000.00
10,000.00
POST
DATE
2023
Jan
126
212
BALANCE
DEBIT
10,000.00
CREDIT
DEBIT
CREDIT
10,000.00
–
ACCOUNT:
Interest Payable
ACCOUNT NO:
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Notes Payable
DEBIT
CREDIT
ACCOUNT NO:
214
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Salaries Payable
DEBIT
CREDIT
ACCOUNT NO:
215
POST
DATE
ITEM
ACCOUNT:
FICA Payroll Taxes Payable
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT NO:
216
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Employees Federal Income Tax Payable
DEBIT
CREDIT
ACCOUNT NO:
217
POST
DATE
ITEM
a9b910ecfb32765b82ef3541f6244c9d
REF.
213
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT:
Payroll Benefits Payable
ACCOUNT NO:
POST
DATE
ITEM
ACCOUNT:
Product Warranty Payable
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT NO:
228
POST
DATE
ITEM
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
Litigation Claims Payable
DEBIT
CREDIT
ACCOUNT NO:
229
POST
DATE
ITEM
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
Common Stock
DEBIT
CREDIT
ACCOUNT NO:
310
POST
DATE
2023
Jan
ITEM
1
ACCOUNT:
REF.
BALANCE
DEBIT
CREDIT
DEBIT
25,000.00
Retained Earnings
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
ACCOUNT:
REF.
DEBIT
CREDIT
DEBIT
591,775.00
Dividends
ACCOUNT NO:
ITEM
1
CREDIT

Balance
Summary
a9b910ecfb32765b82ef3541f6244c9d
REF.
GJ26
311
BALANCE
POST
DATE
2023
Jan
CREDIT

Balance
218
312
BALANCE
DEBIT
15,000.00
CREDIT
DEBIT
15,000.00
CREDIT
ACCOUNT:
Sales
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
ACCOUNT:
Summary
REF.
BALANCE
DEBIT
GJ26
CREDIT
DEBIT
Cost of Goods Sold
ITEM
1
ACCOUNT:
Summary
1,500,000.00
ACCOUNT NO:
REF.
GJ26
DEBIT
CREDIT
550,000.00
DEBIT
1
ACCOUNT:
Summary
ACCOUNT NO:
REF.
GJ26
DEBIT
CREDIT
360,000.00
DEBIT
ACCOUNT:
ACCOUNT NO:
REF.
DEBIT
CREDIT
Delivery Expense
ITEM
1
ACCOUNT:
Summary
REF.
GJ26
DEBIT
CREDIT
ACCOUNT NO:
525
BALANCE
DEBIT
CREDIT
25,000.00
DEBIT
Repairs Expense
ITEM
1
Summary
a9b910ecfb32765b82ef3541f6244c9d
CREDIT
25,000.00
ACCOUNT NO:
POST
DATE
2023
Jan
REF.
GJ26
524
BALANCE
POST
DATE
2023
Jan
CREDIT
360,000.00
POST
ITEM
520
BALANCE
Depreciation Expense-Building
DATE
CREDIT
550,000.00
Sales Salaries Expense
ITEM
510
BALANCE
POST
DATE
2023
Jan
CREDIT
1,500,000.00
POST
DATE
2023
Jan
410
526
BALANCE
DEBIT
7,500.00
CREDIT
DEBIT
7,500.00
CREDIT
ACCOUNT:
Selling Expenses
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
ACCOUNT:
Summary
REF.
GJ26
BALANCE
DEBIT
CREDIT
35,000.00
DEBIT
Rent Expense
ACCOUNT:
ITEM
1
Summary
ACCOUNT NO:
REF.
GJ26
DEBIT
CREDIT
48,000.00
DEBIT
ACCOUNT:
Depreciation Expense-Tools
REF.
ACCOUNT NO:
ACCOUNT:
ITEM
REF.
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT NO:
533
BALANCE
DEBIT
CREDIT
Insurance Expense
DEBIT
CREDIT
ACCOUNT NO:
534
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Supplies Expense
DEBIT
CREDIT
ACCOUNT NO:
535
POST
DATE
ITEM
a9b910ecfb32765b82ef3541f6244c9d
REF.
532
BALANCE
POST
DATE
CREDIT
48,000.00
POST
ITEM
531
BALANCE
Depreciation Expense-Office Equipment
DATE
CREDIT
35,000.00
POST
DATE
2023
Jan
529
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT:
Payroll Tax Expense
ACCOUNT NO:
POST
DATE
2023
Jan
ITEM
1
ACCOUNT:
Summary
REF.
GJ26
BALANCE
DEBIT
CREDIT
72,000.00
DEBIT
Benefits Expense
ITEM
1
ACCOUNT:
Summary
ACCOUNT NO:
REF.
GJ26
DEBIT
CREDIT
108,000.00
DEBIT
1
ACCOUNT:
Summary
ACCOUNT NO:
REF.
GJ26
CREDIT
375.00
DEBIT
ACCOUNT:
ACCOUNT NO:
REF.
DEBIT
CREDIT
Miscellaneous Expense
ITEM
1
Summary
a9b910ecfb32765b82ef3541f6244c9d
REF.
GJ26
540
BALANCE
DEBIT
CREDIT
ACCOUNT NO:
541
POST
DATE
2023
Jan
CREDIT
375.00
POST
ITEM
539
BALANCE
DEBIT
Product Warranty Expense
DATE
CREDIT
108,000.00
Cash Short and Over
ITEM
538
BALANCE
POST
DATE
2023
Jan
CREDIT
72,000.00
POST
DATE
2023
Jan
536
BALANCE
DEBIT
17,000.00
CREDIT
DEBIT
17,000.00
CREDIT
ACCOUNT:
Interest Revenue
ACCOUNT NO:
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Interest Expense
DEBIT
CREDIT
ACCOUNT NO:
710
POST
DATE
ACCOUNT:
ITEM
REF.
BALANCE
DEBIT
CREDIT
Litigation Loss
DEBIT
CREDIT
ACCOUNT NO:
720
POST
DATE
ITEM
a9b910ecfb32765b82ef3541f6244c9d
REF.
610
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
Sherwood Co.
Worksheet
For the Month ended December 31, 2023
ACCOUNT NAME
1 Cash
2 Accounts Receivable
3 Interest Receivable
4 Notes Receivable
5 Inventory
5 Supplies
6 Prepaid Insurance
7 Land
7 Building
8 Accumulated Depreciation-Building
9 Office Equipment
10 Accumulated Depreciation-Office Equipment
11 Tools
12 Accumulated Depreciation-Tools
13 Accounts Payable-Kirkwood Co.
14 Accounts Payable-Greenwood Co.
15 Accounts Payable-Poulin Co.
16 Interest Payable
17 Notes Payable
18 Salaries Payable
19 FICA Payroll Taxes Payable
20 Employees Federal Income Tax Payable
21 Payroll Benefits Payable
22 Product Warranty Payable
23 Litigation Claims Payable
24 Common Stock
25 Retained Earnings
26 Dividends
27 Sales
28 Cost of Goods Sold
29 Sales Salaries Expense
30 Depreciation Expense-Building
31 Delivery Expense
TRIAL BALANCE
DEBIT
CREDIT
ADJUSTMENTS
DEBIT
CREDIT
ADJUSTED TRIAL BALANCE
DEBIT
CREDIT
INCOME STATEMENT
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
Sherwood Co.
Worksheet
For the Month ended December 31, 2023
ACCOUNT NAME
32 Repairs Expense
33 Selling Expenses
34 Rent Expense
35 Depreciation Expense-Office Equipment
36 Depreciation Expense-Tools
37 Insurance Expense
38 Supplies Expense
39 Payroll Tax Expense
40 Benefits Expense
41 Cash Short and Over
42 Product Warranty Expense
43 Miscellaneous Expense
44 Interest Revenue
45 Interest Expense
46 Litigation Loss
47
48
49
50
51
TRIAL BALANCE
DEBIT
CREDIT
ADJUSTMENTS
DEBIT
CREDIT
ADJUSTED TRIAL BALANCE
DEBIT
CREDIT
INCOME STATEMENT
DEBIT
CREDIT
BALANCE SHEET
DEBIT
CREDIT
Sherwood Co.
Income Statement
For the Month ended December 31, 2023
Sales
Cost of goods sold
Gross profit
Selling expenses:
Sales Salaries Expense
Delivery Expense
Selling Expenses
Payroll Tax Expense
Benefits Expense
Cash Short and Over
Product Warranty Expense
Total selling expenses
Administrative expenses:
Rent Expense
Depreciation Expense-Building
Repairs Expense
Depreciation Expense-Office Equipment
Depreciation Expense-Tools
Insurance Expense
Supplies Expense
Miscellaneous Expense
Total administrative expenses
Total operating expenses
Income from Operations
Other revenues and expenses
Interest Revenue
Interest Expense
Litigation Loss
Total other revenues and expenses
Net income
$
–
$
–
–
$
$
$
–
–
–
$
–
Sherwood Co.
Statement of Stockholders’ Equity
For the Month ended December 31, 2023
Beginning balance July 1, 20Y1
Add: Net income (or Less: Net loss)
Less: Dividends
Ending balance July 31, 20Y1
Retained
Common Stock
Earnings
$
$
–
$
–
$
–
Total
Stockholders’
Equity
$
$
–
Sherwood Co.
Balance Sheet
December 31, 2023
Assets
Current Assets
Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Inventory
Supplies
Prepaid Insurance
Total current assets
Property, Plant and Equipment
Land
Building
Accumulated Depreciation, Building
Office Equipment
Accumulated Depreciation—Office Equipment
Tools
Accumulated Depreciation-Tools
Total Property, Plant and Equipment
Total Assets
$
–
$
–
$
–
$
–
$
–
–
$
–
$
–
Liabilities
Current liabilities
Accounts Payable
Notes Payable
Interest Payable
Salaries Payable
FICA Payroll Taxes Payable
Employees Federal Income Tax Payable
Payroll Benefits Payable
Product Warranty Payable
Litigation Claims Payable
Total liabilities
$
–
Stockholders’ Equity
Common Stock
Retained earnings
Total stockholders’ equity
Total liabilities and stockholders’ equity
$
$
–
Sherwood Co.
Post-Closing Trial Balance
December 31, 2023
Account
Debit
Credit
Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Merchandise Inventory
Supplies
Prepaid Insurance
Land
Building
Accumulated Depreciation, Building
Office Equipment
Accumulated Depreciation-Office Equipment
Tools
Accumulated Depreciation-Tools
Accounts Payable-Kirkwood Co.
Accounts Payable-Greenwood Co.
Accounts Payable-Poulin Co.
Notes Payable
Interest Payable
Salaries Payable
FICA Payroll Taxes Payable
Employees Federal Income Tax Payable
Payroll Benefits Payable
Product Warranty Payable
Litigation Claims Payable
Common Stock
Retained Earnings
Dividends
Sales
Cost of Goods Sold
Sales Salaries Expense
Depreciation Expense-Building
Delivery Expense
Repairs Expense
Selling Expenses
Rent Expense
Depreciation Expense-Office Equipment
Depreciation Expense-Tools
Insurance Expense
Supplies Expense
Payroll Tax Expense
Benefits Expense
Cash Short and Over
Product Warranty Expense
Miscellaneous Expense
Interest Revenue
Interest Expense
Litigation Loss
Post Close Trial Balance
–