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Apple Blossom Cologne Company K-4

Federal Income Tax Payable 2-3-04


12/31/2003 JWP

Tax Tax
Liability Expense

Balance 12-31-02 63772 @


Additions: 2003 taxes 100000 100000
Payments: 163772
Final payment Jan. 2003
on 2002 taxes 63772
First quarter deposit, 2003 taxes 25000
Second quarter deposit, 2003 taxes 25000
Third quarter deposit, 2003 taxes 25000 138772
Balances 12-31-03, per client 25000 100000
^ ^
1 Adjustments to income tax and income tax (TB-BS) (TB-BS)
liability resulting from audit adjustments
Reference (AJE #19) to record tax adjustm
307 federal incme tax payable -20892
940 Federal income tax expense -20892
Balance per audit 4108 79108

(1) INCOME TAX EXPENSE PER AUDIT:


15% 15% on first 50000 7500
25% 25% on first 25000 6250
34% 34% on 73000 ### 65358
Per audit 79108
Per audit 100000
-20892

^ Footed
@ Sesuai dengan kertas kerja audit tahun s
Telah ditelusuri ke jurnal pengeluaran kas
Apple Blossom Colognge Company K-1
Laba Ditahan ###
12/31/2003 JWP

Balance 12-31-02 529683


(TB-BS)
Dividends 23125
(TB-BS)
506558
Net Income 2003, sebelum penyesua
318585 *
(TB-BS)
Balance, 12-31-03, per cli 825143

Net effect of 2003 audit a


(adjusting entries debit income $177135 and credit
income $46672 -1E+05 *
Balances, 12-31-03, after audit adjustments 694680

* Sesuai dengan TB-IS


Sesuai dengan kertas kerja audit tahun sebelumnya
Telah ditelusuri ke Corporate minutes and to l
Rekonsiliasi ke (TB_BS) per klien
Rekonsiliasi ke (TB_BS) per audit
Apple Blossom Cologne Comp
Working Trial Balance - Balance
12-31-03

Per
Item WP Reff. Audit
12-31-02
Assets
101 Cash-Big City National Bank A-1 513,617
102 Cash-Second National Bank A-3 5,918
103 Petty Cash A-7 420
105 Account Receivable B-1 139,504
106 Allowance for Bad Debts B-6 (11,889)
107 Miscellaneous Receivables E-6
109 Inventory C-1 873,766
110 Prepaid Insurance D-1 35,336
111 Prepaid Rent D-3 5,000
112 Office Supplies Inventory D-3 8,657
113 Small Tools Inventory D-3 7,162
115 Investment in Securities E-1 474,518
116 Allow. For Unreal. Gain/Loss E-1 6,473
201 Long-term Investments E-6
210 Land F-1 82,250
220 Buildings F-1 276,263
221 Accum. Depre. - Buildings F-1 (65,416)
230 Machinery and Equipment F-1 540,845
231 Accum. Depre. - M&E F-1 (160,866)
240 Automotive Equipment F-1 99,425
241 Accum. Depre. -Auto. Equip. F-1 (52,798)
250 Office Furnitures & Fixtures F-1 106,433
251 Accum. Depre. -Off. Furn. & Fixt. F-1 (37,581)
Total Assets 2,847,037
Liabilities
301 Account Payable G-1 223,161
302 Accrued Payroll Taxes H-1 113,846
303 Wages and Salaries Payable H-2 81,239
304 Accrued Property Taxes H-3 14,113
305 Accrued Interest I-1 10,625
306 Dividends Payable H-3 17,575
307 Federal Income Tax Payable H-4 63,772
308 Note Payable - Short Term I-1 125,000
350 Lease Obligation - Short Term F-6
401 Note Payable - Long Term I-1
450 Lease Obligation - Long Term F-6
Total Liabilities 649,331
Owners' Equity
501 Common Stock J-1 925,000
505 Other Contributed Capital J-1 736,550
506 Unreal. Gain/Loss Investments E-1 6,473
601 Retained Earnings K-1 272,435
605 Dividends K-1, H-3 (17,575)
610 Current Net Income TB-IS 274,823
Total Owners' Equity 2,197,706
Total Liabilities and Owners' Equity 2,847,037
Apple Blossom Cologne Company
Working Trial Balance - Balance Sheet
12-31-03

Per Adjustment Per Reclassification


Books Audit Items
Dr Adj Journal Cr Adj Journal
12-31-03 12-31-03 Dr

846,541 10,000 5 836,541


36,968 36,968
500 204 6 296
212,705 3,578 1,2,3 209,127
(19,919) 14,330 1, 4 (5,589)
3,750 11 3,750
719,647 32,840 7, 17 752,487
38,636 38,636
1,250 1,250
9,964 9,964
6,541 6,541
223,033 37,600 10 72,173 9 188,460
6,473 11,983 8 (5,510)
72,393 9, 11 72,393
82,250 82,250
276,263 276,263
(74,625) (74,625)
1,006,045 81,050 13, 14 1,087,095
(189,848) 1,980 12 3,896 13, 14 (191,764)
99,425 99,425
(77,654) (77,654)
114,833 114,833
(43,113) (43,113)
3,275,915 3,418,024

135,550 88,250 10, 17 223,800


86,253 42,992 18 129,245
95,291 18 95,291
21,988 21,988
15,833 4,114 15 19,947
23,125 23,125
25,000 20,892 19 4,108
-
4,473 16 4,473
475,000 475,000
4,473 16 74,800 14 70,327
782,749 1,067,304
925,000 925,000
736,550 736,550
6,473 11,983 8 (5,510)
529,683 529,683
(23,125) (23,125)
318,585 177,135 46,672 188,122
2,493,166 2,350,720
3,275,915 3,418,024
TB-BS

Reclassification Financial
Items Statement
Cr 12-31-03

873,805

203,538

3,750
752,487

56,391

182,950

72,393
82,250
276,263

1,087,095

99,425

114,833
(387,156)
3,418,024

223,800
129,245
95,291
21,988
19,947
23,125
4,108
-
4,473
475,000
70,327
1,067,304
925,000
736,550
(5,510)
529,683
(23,125)
188,122
2,350,720
3,418,024
Apple Blossom Cologne Company
Working Trial Balance - Income Statement
12-31-03

Working Per Per


Adjustmen
Item Paper Audit Books
Reference 12-31-02 12-31-03 Dr
Revenue
701 Sales 3,906,577 4,272,623 1,080
703 Sales Return and Allowance (29,820) (33,051) 1,748
Net Sales 3,876,757 4,239,572
Expenses
801 Cost of Goods Sold 1,596,800 1,742,503 16,480
Gross Margin 2,279,957 2,497,069
Operating Expenses
820 Wage and Salary Expense H-1 1,528,700 1,618,643 123,192
821 Payroll Tax Expense H-1 129,959 128,033 15,091
822 Depreciation Expense F-1 64,422 80,459 3,896
823 Rent Expense D-3 3,750 3,750
824 Office Supplies Expense D-3 9,683 12,380 137
825 Small Tools Expense D-3 3,359 6,419
826 Advertising Expense 12,714 44,934
827 Insurance D-1 28,930 32,765
828 Repairs and Maintenance F-5 17,869 14,240 67
829 Property Tax H-3 14,113 21,988
830 Utilities Expense 11,742 14,760 1,100
831 Professional Fees 13,347 37,140
832 Miscellaneous Expense 494 825 230
833 Provision for Bad Debt B-6 11,156 22,790
834 Freight Expense 31,641 46,310
Total Operating Expenses 1,881,879 2,085,436
Net Income from Operations 398,078 411,633
Other Income (Expense)
901 Interest Expense (27,500) (21,146) 4,114
910 Gain (Loss) Sale of Investments 25,975
920 Income from Investments 9,379 7,393
930 Gain (Loss) Sale of Fixed Assets 18,638 (15,270)
950 Miscellaneous Income 10,000 10,000
Net Other Income 517 6,952
Net Income before Taxes 398,595 418,585
940 Federal Income Tax 123,772 100,000
Net Income 274,823 318,585
ne Company
ncome Statement TB-IS

Per Reclassification Financial


Adjustment
Audit Items Statement
Adj Journal Cr Adj Journal 12-31-03 Dr Cr 12-31-03

2 4,271,543 4,271,543
3 (34,799) (34,799)
4,236,744 4,236,744

7, 17 1,758,983 1,758,983
2,477,761 2,477,761

18 1,741,835 1,741,835
18 143,124 143,124
13, 14 1,980 12 82,375 82,375
3,750 3,750
6 12,517 12,517
6,419 6,419
44,934 44,934
32,765 32,765
6 6,250 13 8,057 8,057
21,988 21,988
17 15,860 15,860
37,140 37,140
17 1,055 1,055
13,580 4 9,210 9,210
46,310 46,310
2,207,339 2,207,339
270,422 270,422

15 (25,260) (25,260)
25,975 25,975
3,970 11 11,363 11,363
(15,270) (15,270)
5 - -
(3,192) (3,192)
267,230 267,230
20,892 19 79,108 79,108
188,122 188,122
Apple Blossom Cologne Company
Proposed Adjusting Journal Entries
12-31-03

ADJ Account
Account Description Reference
Number Number

#1 Allowance for Bad Debts [B-1] 106


Account Receivable 105

#2 Sales [B-1] 701


Account Receivable 105

#3 Sales Return & Allowance [B-1] 703


Account Receivable 105

#4 Allowance for Bad Debts [B-6] 106


Provision for Bad Debts 833

#5 Miscellaneous Income [A-5] 950


Cash-Big City National Bank 101

#6 Office Supplies Expense [A-7] 824


Repairs and Maintenance Expense 828
Petty Cash 103

#7 Cost of Goods Sold [C-1] 801


Inventory 109

#8 Unrealized Gain/Loss on Investements [E-1] 506


Allow. Unreal. Gain/Loss on Investments 116

#9 Long-term Investments [E-6] 201


Investments in Securities 115

#10 Investments in Securities [E-1] 115


Account Payable 301

#11 Long-term Investments [E-6] 201


Miscellaneous Income 107
Income from Investments 920

#12 Accum. Depre. - M&E [F-4] 231


Depreciation Expense 822
Apple Blossom Cologne Company
Proposed Adjusting Journal Entries
December 31, 2003

Account
Account Description Number
AJE#13
Machinery and equipment 230
Repairs and maintenance expense 828
Depreciation expense 822
Accumulated depreciation - Machin & Equip. 231

Kapitalisasi item yang tidak tepat dibebankan sebagai repairs and maintenance per (F-5)

AJE#14
Machinary and equipment 230
Depreciation expense 822
Lease obligation - long term 450
Accumulated depreciation _ Machin & Equip. 231
Kapitalisasi kewajiban sewa dan aset yang terkait (F-6)

AJE#15
Interest expense 901
Accrued interest payable 305
Mengakui di depan bunga atas obligasi (F-6)

AJE#16
Lease obligation - long term 450
Lease obligation - short term 350
Reklasifikasi bagian dari sewa jangka pendek (F-6)

AJE#17
Utilities expense 830
Inventory 109
Cost of goods sold 801
Miscellaneous expense 832
Accounts payable 301
Mengakui di depan kewajiban yang belum dicatat (D-2)

Apple Blossom Cologne Company


Proposed Adjusting Journal Entries
December 31, 2003
Account
Account Description Number
AJE#18
Wage and salary expense 820
Payroll tax expense 821
Accrued payroll taxes 302
Wages and salaries payable 305
Mengakui di depan gaji dan upah (K-2)

AJE#19
Federal income taxes payable 307
Federal income tax expense 940
Menyesuaikan pajak penghasilan (K-4)

Apple Blossom Cologne Company


Proposed Reclassification Entries
December 31, 2003

Account
Account Description Number

None required
AJE
3/2/2004
JWP
1 of 3

Dr Cr

750
750

1,080
1,080

1,748
1,748

13,580
13,580

10,000
10,000

137
67
204

1,000
1,000

11,983
11,983

72,173
72,173

37,600
37,600

220
3,750
3,970

1,980
1,980
AJE
Feb 3, 2004
JWP
2 of 3

DEBIT CREDIT

6250
6250
156
156

74800
3740
74800
3740

4114
4114

4475
4475

1100
33840
15480
230
50650

AJE
Feb 3, 2004
JWP
3 of 3
DEBIT CREDIT

123192
15091
138283 42992
95291

20862
20862

RJE
Feb 3, 2004
JWP

DEBIT CREDIT
6. Laporan Keuangan dan Catatan Pendukung
APPLE BLOSSOM COLOGNE COMPANY
Balance Sheet(Neraca) (Dalam $)
31 December 2002 dan 31 Desember 2003
ASSETS 2003 2002
Current Assets:
Cash $ 873,805 $ 519,955
Account receivable less allowance for losses
$5.589 (2003) ; $11.889 (2002) 203,538 127,615
Miscellaneous receivables (Catatan 1 dan 2) 3,750
Inventories (Catatan 1) 752,487 873,766
Prepaid expenses 56,391 56,155
Investment in securities (Catatan 1 dan 2) 182,950 480,991
Total Current Assets: $ 2,072,921 $ 2,058,482
Long-term investment (Catatan 1 dan 2) 72,393
Property, plant, & equipment, at cost (Catatan 1):
Land 82,250 82,250
Buildings 276,263 276,263
Machinery and equipment 1,087,095 540,845
Automotive equipment 99,425 99,425
Office furniture and fixturres 114,833 106,433
1,659,866 1,105,216
Less accumulated depreciation (387,156) (316,661)
$ 1,272,710 $ 788,555
TOTAL ASSETS $ 3,418,024 $ 2,847,037
OM COLOGNE COMPANY
heet(Neraca) (Dalam $)
002 dan 31 Desember 2003
LIABILITIES AND STOCKHOLDER'S EQUITY 2003 2002
Current Liabilities:
Account payable $ 223,800 $ 223,161
Accrued liabilities 266,471 219,823
Notes Payable (Catatan 3) 125,000
Dividends payable 23,125 17,575
Income taxes payable (Catatan 4) 4,108 63,772
Current portion of lease obligation (Catatan 5) 4,473
Total Current Liabilities: $ 521,977 $ 649,331
Long-term debt due after one year (Catatan 3) 475,000
Long-term lease obligation (Catatan 5) 70,327
Total Liabilities $ 1,067,304 $ 649,331

Stockholder's Equity:
Common stock, par value $100, authorized 20.000
shares, issued and outstanding 9.250 shares 925,000 925,000
Contributed capital in excess of par value 736,550 736,550
Unrealized gain (loss) on investment (5,510) 6,473
Retained earnings 694,680 529,683
Total Stockholder's Equity $ 2,350,720 $ 2,197,706
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 3,418,024 $ 2,847,037
APPLE BLOSSOM COLOGNE COMPANY
Statement of Income (Laporan Laba Rugi) (Dalam $)
Years Ended December 31, 2003 and December 31, 2002
2003 2002
Net sales and other revenues $ 4,236,744 $ 3,876,757
Cost of goods sold 1,758,983 1,596,800
Gross margin 2,477,761 2,279,957
Operating expenses:
Selling, general, and administrative
(catatan 5) 2,124,964 1,817,457
Depreciation (catatan 1) 82,375 64,422
2,207,339 1,881,879
Operating Income 270,422 398,078
Other income (expense) and adjustment:
Interest (25,260) (27,500)
Other income 11,363 9,379
Gain on sale of fixed assets (15,270) 18,638
Gain on sale of investments 25,975
Net income before federal income taxes 267,230 398,595
Provision for income taxes (catatan 1 dan 4) (79,108) (123,772)
NET INCOME $ 188,122 $ 274,823
Earnings per common share (catatan 7) $ 20.34 $ 29.72
APPLE BLOSSOM COLOGNE COMPANY
Statement of Change in Stockholder's Equity (Laporan Perubahan Ekuitas) (Dalam $)
Years Ended December 31, 2003 and December 31, 2002
2003 2002
Common stock:
Common stock at beginning year $ 925,000 $ 925,000
Common stock at end of year $ 925,000 $ 925,000

Contributed capital:
Contributed capital at beginning of year $ 736,550 $ 736,550
Contributed capital at end of year $ 736,550 $ 736,550

Unrealized Gain (Loss) on Investment:


Unrealized Gain (Loss) at beginning of year $ 6,473 $ 4,496
Change in unrealized gain (Loss) (11,983) $ 1,977
Unrealized Gain (Loss) at end of year (5,510) $ 6,473

Retained Earnings:
Retained earnings at beginning of year $ 529,683 $ 272,435
Net income for the year 188,122 274,823
Dividends (23,125) (17,575)
Retained earnings at the end of year $ 694,680 $ 529,683
APPLE BLOSSOM COLOGNE COMPANY
Statement of Cash Flows (Laporan Arus Kas) (Dalam $)
Years Ended December 31, 2003 and December 31, 2002
2003 2002
Cash flow from operating activities:
Net income $ 188,122 $ 274,823
Add (Deduct) items not using (providing) cash:
Depreciation 82,375 64,422
Change in account receivable (69,623) 4,509
Change in allowance for bad debts (6,300) (1,880)
Change in misscellaneous receivables (3,750)
Change in inventory 121,279 (285,627)
Change in prepaid expense (236) 4,049
Securities purchased on account (37,600)
Change in account payable 639 82,512
Change in accrued liabilities 46,648 28,210
Change in income taxes payable (59,664) 49,542
Gain or loss sale of assets 15,270 (18,638)
Gain or loss sale of investment (25,975)
Amortization of bond discount (220)
Net cash provided operating activities $ 250,965 $ 201,922
Cash flows from investing activities:
Cash provided
Sale of assets $ 12,450 $ 39,638
Sale of securities 372,243
Cash disbursement
Purchase of assets 519,450 54,016
Purchase of securities 94,783 147,320
Net cash provided (used) investing activities (229,540) (161,698)
Cash flows from financing activities:
Cash provided
Issuance of notes payable 475,000 245,000
Cash disbursement
Dividends paid 17,575 13,875
Payment on notes 125,000 120,000
Net cash provided (used) financing activities $ 332,425 $ 111,125
Net increase (decrease) in cash 353,850 151,349
Cash at beginning of year $ 519,955 $ 368,606
Cash at end of year $ 873,805 $ 519,955

2003 2002
Supplement Disclosures of Cash Flow Information
Interest paid $ 15,938 $ 16,875
Interest taxes paid 138,772 74,230
Supplement Schedule of Noncash Transactions
Equipment purchased on capital lease (catatan 5) $ 74,800
Securities purchased on account 37,600