Apple Blossom Cologne Company H-4

Federal Income Taxes Payable 1-31-04

12-31-03 FK
Tax Liability Tax Expense
Balance 12-31-02 - 63.772- ! - --
Addition: 2003 taxes - 100.000- @ - 100.000- @
Payments: - 163.772- £
Final payment Jan 2003 on 2002 taxes - 63.772- $
First quarter deposit, 2003 taxes - 25.000- $
Second quarter deposit, 2003 taxes - 25.000- $
Third quarter deposit, 2003 taxes - 25.000- $ - 138.772- £
Balance 12-31-03, per client - 25.000- % - 100.000- %

Adjustment to income tax and income tax

liability resulting from audit adjustment
Reference (AJE 18) to record tax adjustment
Federal income tax expense - 18.595- ^
Federal income taxes payable - 18.595- ^
Balance per audit - 6.405- £ - 81.405- £

INCOME TAX EXPENSE PER AUDIT

15% - 50.000- - 7.500- &
25% - 25.000- - 6.250- &
34% - 198.984- - 273.984- - 67.655- &
Per audit - 81.405- £
Per client - 100.000- $
Required adjustment (AJE 18) - 18.595- ^

! Telah sesuai dengan saldo per audit 2002 FK

@ Sesuai dengan estimasi beban pajak penghasilan tahun 2003 yang dibuat klien FK
£ Footed FK
$ Telah sesuai dengan slip, voucher, dan jurnal pembayaran pajak dari klien FK
% Telah sesuai dengan saldo per buku klien 2003 FK
^ Terjadi perbedaan saldo beban pajak penghasilan akibat adanya penyesuaian audit lainnya maka diajukan AJE 18 FK
& Rekalkulasi FK
 Apple Blossom Cologne Company K-1
Retained Earnings 1-31-04
12-31-03 FK
Balance 31-12-02 529683 !
Dividends -23125 @
506558 £
Net income 2003, before audit adjustments 318585 $
Balance, 31-12-03 per book 825143 £
Net effect of 2002 audit adjustment - 126.006- %
Balance, 31-12-03, after audit adjustment - 699.137- £

! Telah sesuai dengan neraca saldo klien per 2002 FK

@ Sesuai dengan notulen rapat dewan direksi dan skedul H-3 FK
£ Footed FK
$ Sesuai dengan neraca saldo laba rugi klien per 2003 FK
% Hasil akumulasi perbedaan net income per book dengan per financial statement 2003 klien FK
 Apple Blossom Cologne Company
Working Trial Balance-Balance Sheet
12-31-03
Working Per Per Per Reclasification Financial
Paper Audit Books Adjustments Audit Items Statement
Reference 12-31-02 12-31-03 Debit Credit 12-31-03 Debit Credit 12-31-03
Assets:
101 Cash-Big City National Bank A-1 - 513.617- - 846.541- - 846.541- - 10.000- - 836.541-
102 Cash-Second National Bank A-3 - 5.918- - 36.968- - 36.968- - 36.968-
103 Petty Cash A-7 - 420- - 500- - 204- - 296- - 296-
105 Account Receivable B-1 - 139.504- - 212.705- - 3.578- - 209.127- - 209.127-
106 Allowance for Bad Debts B-6 - 11.889- - 19.919- - 14.330- - 5.589- - 5.589-
107 Miscellaneous Receivables E-6 - 3.750- - 3.750- - 3.750-
109 Inventory C-1 - 873.766- - 719.647- - 49.320- - 9.936- - 759.031- - 759.031-
110 Prepaid Insurance D-1 - 35.336- - 38.636- - 38.636- - 38.636-
111 Prepaid Rent D-3 - 5.000- - 1.250- - 1.250- - 1.250-
112 Office Supplies Inventory D-3 - 8.657- - 9.964- - 9.964- - 9.964-
113 Small Tools Inventory D-3 - 7.162- - 6.541- - 6.541- - 6.541-
115 Investment in Securities E-1 - 474.518- - 223.033- - 37.600- - 260.633- - 72.173- - 188.460-
116 Allow. For Unreal. Gain/Loss E-1 - 6.473- - 6.473- - 11.983- - 5.510- - 5.510-
201 Long-term Investments E-6 - 220- - 220- - 72.173- - 72.393-
210 Land F-1 - 82.250- - 82.250- - 82.250- - 82.250-
220 Buildings F-1 - 276.263- - 276.263- - 276.263- - 276.263-
221 Accum. Depre. - Buildings F-1 - 65.416- - 74.625- - 74.625- - 74.625-
230 Machinery and Equipment F-1 - 540.845- -1.006.045- -1.006.045- - 6.250- -1.012.295-
231 Accum. Depre. - M&E F-1 - 160.866- - 189.848- - 210- - 189.638- - 1.980- - 156- - 187.814-
240 Automotive Equipment F-1 - 99.425- - 99.425- - 99.425- - 99.425-
241 Accum. Depre. -Auto. Equip. F-1 - 52.798- - 77.654- - 77.654- - 77.654-
250 Office Furnitures & Fixtures F-1 - 106.433- - 114.833- - 114.833- - 114.833-
251 Accum. Depre. -Off. Furn. & Fixt. F-1 - 37.581- - 43.113- - 43.113- - 43.113-
260 Leased Equipment F-6 - 74.800- - 74.800- - 74.800-
261 Accum. Depre. - Leased Equip F-6 - 3.740- - 3.740- - 3.740-
Total assets -2.847.037- -3.275.915- -3.426.704- -3.424.778-
Liabilities:
301 Account Payable G-1 - 223.161- - 135.550- - 88.250- - 223.800- - 223.800-
302 Accrued Payroll Taxes H-1 - 113.846- - 86.253- - 42.994- - 129.247- - 129.247-
303 Wages and Salaries Payable H-2 - 81.239- - 95.289- - 95.289- - 95.289-
304 Accrued Property Taxes H-3 - 14.113- - 21.988- - 21.988- - 21.988-
305 Accrued Interest I-1 - 10.625- - 15.833- - 4.114- - 19.947- - 19.947-
306 Dividends Payable H-3 - 17.575- - 23.125- - 23.125- - 23.125-
307 Federal Income Tax Payable H-4 - 63.772- - 25.000- - 18.595- - 6.405- - 6.405-
308 Note Payable - Short Term I-1 - 125.000- - -- - --
350 Lease Obligation - Short Term F-6 - 4.473- - 4.473- - 4.473-
401 Note Payable - Long Term I-1 - 475.000- - 475.000- - 475.000-
450 Lease Obligation - Long Term F-6 - 4.473- - 74.800- - 70.327- - 70.327-
Total liabilities - 649.331- - 782.749- -1.069.601- -1.069.601-
Owners' Equity - --
501 Common Stock J-1 - 925.000- - 925.000- - 925.000- - 925.000-
505 Other Contributed Capital J-1 - 736.550- - 736.550- - 736.550- - 736.550-
506 Unreal. Gain/Loss Investments E-1 - 6.473- - 6.473- - 11.983- - 5.510- - 5.510-
601 Retained Earnings K-1 - 272.435- - 529.683- - 529.683- - 529.683-
605 Dividends K-1, H-3 - 17.575- - 23.125- - 23.125- - 23.125-
610 Current Net Income TB-IS - 274.823- - 318.585- - 160.435- - 36.355- - 194.505- - 10.156- - 8.230- - 192.579-
Total Owners' Equity -2.197.706- -2.493.166- -2.357.103- -2.355.177-
Total Liabilities and Owners' Equity -2.847.037- -3.275.915- -3.426.704- -3.424.778-
 Apple Blossom Cologne Company
Working Trial Balance-Income Statement
12-31-03
Working Per Per Per Reclasification Financial
Paper Audit Books Adjustments Audit Items Statement
Reference12-31-02 12-31-03 Debit Credit 12-31-03 Debit Credit 12-31-03
Revenue
701 Sales -3.906.577- -4.272.623- - 1.080- -4.271.543- -4.271.543-
703 Sales Return and Allowance - 29.820- - 33.051- - 1.748- - 34.799- - 34.799-
Net Sales -3.876.757- -4.239.572- -4.236.744- -4.236.744-
Expenses
801 Cost of Goods Sold -1.596.800- -1.742.503- - 9.936- -1.752.439- -1.752.439-
Gross Margin -2.279.957- -2.497.069- -2.484.305- -2.484.305-
Operating Expenses
820 Wage and Salary Expense H-1 -1.528.700- -1.618.643- - 123.192- -1.741.835- -1.741.835-
821 Payroll Tax Expense H-1 - 129.959- - 128.033- - 15.091- - 143.124- - 143.124-
822 Depreciation Expense F-1 - 64.422- - 80.459- - 3.740- - 210- - 83.989- - 156- - 1.980- - 82.165-
823 Rent Expense D-3 - 3.750- - 3.750- - 3.750- - 3.750-
824 Office Supplies Expense D-3 - 9.683- - 12.380- - 12.380- - 12.380-
825 Small Tools Expense D-3 - 3.359- - 6.419- - 6.419- - 6.419-
826 Advertising Expense - 12.714- - 44.934- - 44.934- - 44.934-
827 Insurance D-1 - 28.930- - 32.765- - 32.765- - 32.765-
828 Repairs and Maintenance F-5 - 17.869- - 14.240- - 14.240- - 6.250- - 7.990-
829 Property Tax H-3 - 14.113- - 21.988- - 21.988- - 21.988-
830 Utilities Expense - 11.742- - 14.760- - 1.100- - 15.860- - 15.860-
831 Professional Fees - 13.347- - 37.140- - 37.140- - 37.140-
832 Miscellaneous Expense - 494- - 825- - 434- - 1.259- - 1.259-
833 Provision for Bad Debt B-6 - 11.156- - 22.790- - 13.580- - 9.210- - 9.210-
834 Freight Expense - 31.641- - 46.310- - 46.310- - 46.310-
Total Operating Expenses -1.881.879- -2.085.436- -2.215.203- -2.207.129-
Net Income from Operations - 398.078- - 411.633- - 269.102- - 277.176-
Other Income (Expense)
901 Interest Expense - 27.500- - 21.146- - 4.114- - 25.260- - 25.260-
910 Gain (Loss) Sale of Investments - 25.975- - 25.975- - 25.975-
920 Income from Investments - 9.379- - 7.393- - 3.970- - 11.363- - 11.363-
930 Gain (Loss) Sale of Fixed Assets - 18.638- - 15.270- - 15.270- - 15.270-
950 Miscellaneous Income - 10.000- - 10.000- - 10.000- - --
Net Other Income - 517- - 6.952- - 6.808- - 3.192-
Net Income before Taxes - 398.595- - 418.585- - 275.910- - 273.984-
940 Federal Income Tax - 123.772- - 100.000- - 18.595- - 81.405- - 81.405-
Net Income - 274.823- - 318.585- - 194.505- - 192.579-
Apple Blossom Cologne Company AJE Apple Blossom Cologne Company RJE
Proposed Adjusting Journal Entry 1-31-04 Proposed Reclasification Journal Entry 1-31-04
12-31-03 FK 12-31-03 FK

Account Description Debit Credit Account Description Debit Credit

AJE 1 (AR) RJE 1 (Cash)
Sales - 1.080- Miscellaneous income - 10.000-
Account Receivable - 1.080- Cash - Big City National Bank - 10.000-
AJE 2 (AR) RJE 2 (Investment)
Sales return and allowance - 1.748- Long-term investment - 72.173-
Account Receivable - 1.748- Investment in securities - 72.173-
AJE 3 (AR) RJE 3 (PPE)
Allowance for bad debt - 750- Machine & Equipment - 6.250-
Account Receivable - 750- Repair & maintenance expense - 6.250-
AJE 4 (AR) Depreciation exp - 156-
Allowance for bad debt - 13.580- Accum Depr - Mach & Equip - 156-
Provision for bad debt - 13.580- RJE 4 (PPE)
AJE 5 (Cash) Accum Depr - Mach & Equip - 1.980-
Miscellaneous Expense - 204- Depreciation exp - 1.980-
Petty cash - 204-
AJE 6 (Inventory)
COGS - 1.008-
Inventory - 1.008-
AJE 7 (Inventory)
COGS - 8.928-
Inventory - 8.928-
AJE 8 (Inventory)
Inventory - 33.840-
Account payable - 33.840-
AJE 9 (Investment)
Investment in securities - 37.600-
Account payable - 37.600-
AJE 10 (Investment)
Unreal. Gain/Loss Investments - 11.983-
Allow. For Unreal. Gain/Loss - 11.983-
AJE 11 (Investment)
Miscellaneous Receivable - 3.750-
Long-term investment - 220-
Income from investment - 3.970-
AJE 12 (PPE)
Leased Equipment - 74.800-
Lease Obligation - Long - 74.800-
Interest expense - 4.114-
Accrued interest - 4.114-
Depreciation exp - 3.740-
Accum Depr - Leased Equip - 3.740-
Lease Obligation - Long - 4.473-
Lease Obligation - Short - 4.473-
AJE 13 (PPE)
Accum Depr - Mach & Equip - 210-
Depreciation exp - 210-
AJE 14 (AP)
Inventory - 15.480-
Account payable - 15.480-
AJE 15 (AP)
Utilities expense - 1.100-
Account payable - 1.100-
AJE 16 (AP)
Miscellaneous expense - 230-
Account payable - 230-
AJE 17 (Payroll)
Wage & salary expenses -123.192-
Payroll tax expenses - 15.091-
Wages & salaries payable - 95.289-
Accrued payroll tax - 42.994-
AJE 18 (Completing)
Federal income taxes expense - 18.595-
Federal income tax payable - 18.595-
 APPLE BLOSSOM COLOGNE COMPANY
Balance Sheet
December 31, 2002 and 2003
ASSETS LIABILITIES AND STOCKHOLDER'S EQUITY
Current Assets: 2003 2002 Current Liabilities: 2003 2002
Cash - 873.805- - 519.955- Account payable - 223.800- - 223.161-
Account receivable less allowance for losses Accrued liabilities - 266.471- - 219.823-
$5.589 (2003) ; $11.889 (2002) - 203.538- - 127.615- Notes Payable - -- - 125.000-
Miscellaneous receivables - 3.750- Dividends payable - 23.125- - 17.575-
Inventories - 759.031- - 873.766- Income taxes payable - 6.405- - 63.772-
Prepaid expenses - 56.391- - 56.155- Current portion of lease obligation - 4.473-
Investment in securities - 182.950- - 480.991- Total Current Liabilities: - 524.274- - 649.331-
Total Current Assets: -2.079.465- -2.058.482- Long-term debt due after one year - 475.000-
Long-term investment - 72.393- Long-term lease obligation - 70.327-
Property, plant, & equipment, at cost Total Liabilities -1.069.601- - 649.331-
Land - 82.250- - 82.250-
Buildings - 276.263- - 276.263- Stockholder's Equity:
Machinery and equipment -1.012.295- - 540.845- Common stock, par value $100, authorized 20.000
Automotive equipment - 99.425- - 99.425- shares, issued and outstanding 9.250 shares - 925.000- - 925.000-
Office furniture and fixturres - 114.833- - 106.433- Contributed capital in excess of par value - 736.550- - 736.550-
Leased Equipment - 74.800- - -- Unrealized gain (loss) on investment - 5.510- - 6.473-
-1.659.866- -1.105.216- Retained earnings - 699.137- - 529.683-
Less accumulated depreciation - 386.946- - 316.661- Total Stockholder's Equity -2.355.177- -2.197.706-
-1.345.313- - 788.555- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY -3.424.778- -2.847.037-
TOTAL ASSETS -3.424.778- -2.847.037-
 Apple Blossom Cologne Company
Statement of Income
Year Ended December 31, 2003 and 2002
2003 2002
Net sales and other revenues -4.236.744- -3.876.757-
Cost of goods sold -1.752.439- -1.596.800-
Gross margin -2.484.305- -2.279.957-
Operating expenses:
Selling, general, and administrative -2.124.964- -1.817.457-
Depreciation - 82.165- - 64.422-
-2.207.129- -1.881.879-
Operating Income - 277.176- - 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 - 273.984- - 398.595-
Provision for income taxes - 81.405- - 123.772-
NET INCOME - 192.579- - 274.823-
Earnings per common share - 20,82- - 29,72-
 APPLE BLOSSOM COLOGNE COMPANY
Statement of Change in Stockholder's Equity
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 - 192.579- - 274.823-
Dividends - 23.125- - 17.575-
Retained earnings at the end of year - 699.137- - 529.683-
APPLE BLOSSOM COLOGNE COMPANY
Statement of Cash Flows
Years Ended December 31, 2003 and December 31, 2002
2003 2002
Cash flow from operating activities:
Net income - 192.579- - 274.823-
Add (Deduct) items not using (providing) cash:
Depreciation - 82.165- - 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 - 114.735- - 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 - 57.367- - 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 #REF! - 39.638-
Sale of securities #REF!
Cash disbursement
Purchase of assets #REF! - 54.016-
Purchase of securities #REF! - 147.320-
Net cash provided (used) investing activities #REF! - 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 #REF! - 120.000-
Net cash provided (used) financing activities #REF! - 111.125-
Net increase (decrease) in cash #REF! - 151.349-
Cash at beginning of year - 519.955- - 368.606-
Cash at end of year - 873.805- - 519.955-

- 2.003- - 2.002-
Supplement Disclosures of Cash Flow Information
Interest paid #REF! - 16.875-
Interest taxes paid - 138.772- - 74.230-
Supplement Schedule of Noncash Transactions
Equipment purchased on capital lease #REF!
Securities purchased on account #REF!