1 Rapid city Roller Rink Transaction for the month of October

Transaction Number Assets

Date Cash Land Building Office Supplies Roller Food and

skates beverages

1 1-Oct $66,000.00
2 2-Oct -$9,000.00 $15,000.00 $75,000.00
3 3-Oct -$5,000.00 $25,000.00
4 9-Oct -$3,500.00 $3,500.00
5 12-Oct $2,500.00
6 13-Oct $1,150.00
7 17-Oct
8 23-Oct $375.00
9 24-Oct $1,700.00
10 26-Oct -$750.00
11 27-Oct -$1,275.00
12 30-Oct -$2,250.00
13 31-Oct $2,000.00

Total Assets $170,825

2 Cash Land
DR. CR. DR. CR.
66000 15000
9000
5000
3500
1150
375
1700
750
1275
2250
2000

Roller Skates Food & Beverages

 DR. CR. DR. CR.
3500 2500

Accounts Payable
DR. CR.
20000
2500
or the month of October

Liabilities Shareholders’ equity

Account Notes Accounts Capital Stocks Retained

Receivables payable payable earnings

$66,000.00
$81,000.00
$20,000.00

$2,500.00
$1,150.00
$750.00 $750.00
-$375.00
$1,700.00
-$750.00
-$1,275.00
-$2,250.00
$2,000.00

Total Liabilities & SE $170,825

Building Office Supplies

DR. CR. DR. CR.
75000 25000

Accounts Receivable Notes Payable

DR. CR. DR. CR.
750 81000
375
1 Rapid city Roller Rink

Transaction for the month of October 2012

Account Title Debits Credits

Cash $71,225.00 $21,775.00
Land 15000
Building 75000
Office Supplies 25000
Roller skates 3500
Food and Beverages 2500
Account Receivables 375
Notes payable 81000
Accounts payable 22500
Capital Stocks 66000
Utilities 1275
Wages & Salaries Expense 2250
Revenue 5600
Dividends 750
Total $196,875.00 $196,875.00

2 Rapid city Roller Rink

Income Statement, October 31,2012
Revenues
Ticket Sales revenue $4,850.00
Roller rink rent 750
Total Revenue $5,600.00

Expense
Salaries and wages 2250
Utilities 1275
Total Expense $3,525.00
Net Income $2,075.00

Retained
3 Retained Earning = Earnings(Previous
Month /Year)
Retained Earning = 0

Retained Earning = $1,325.00

4 Rapid city Roller Rink
Balance Sheet, October 31,2012
Assets
Current Assets
Cash $49,450.00
Accounts Receivable 375
Office Supplies 25000
Roller Skates 3500
Food & Beverages 2500
Total Current Assets $80,825.00

Property, Plant & Equipment

Land $15,000.00
Building 75000
Total Property, Plant & Equipment $90,000.00

Total Assets $170,825.00

Liabilities
Current Liabilities
Accounts Payable $22,500.00
Total Current Liabilities $22,500.00

Long Term Debt

Notes Payable $81,000.00
Due, Oct-2017
Total Long Term Debt $81,000.00

Stockholders' Equity
Capital Stock $66,000.00
Total Contributed Capital $66,000.00

Retained Earnings $1,325.00

Total Stockholders' Equity $67,325.00

Total Liabilities & Stockholder's Equity $170,825.00

 Net
+ - Dividends
Income

+ 2075 - 750
1
Hathway Health Club
Income Statement
Year 1 Year 2 Year 3
Revenues
Sales 122000 152000 182000
Total Revenues

Expenses
Salaries and wages 50000 50000 50000
Equipment 33000 33000 33000
Rent and utilities 36000 36000 36000
Advertising 5000 5000 5000

Total Expense 124000 124000 124000

Net Income -2000 28000 58000

2
1 Journal Entries

Date Accounts
Dec 31, 2012 Depreciation Expense
Accumulated Depreciation
(Furniture)

Dec 31, 2012 Supply Expense

Supplies

Dec 31, 2012 Customer Deposit

Revenue

Dec 31, 2012 Rent Expense

Prepaid Rent

Dec 31, 2012 Interest Expense

Interest Payable

Dec 31, 2012 Wages & Salaries Expense

Wages & Salaries Payable

2 Impact on Income Statement if adjusting entries were not taken into consideration:

Revenue
Increase in Revenue 6,600
Total Revenue 6,600
Expenses
Supply Expense 13,200
Depreciation Expense 3,000
Rent Expense 16,000
Interest Expense 301
Salary Expense 1,660
Total Expenses 34,161

Net Income -27,561

Net Income currnetly stated by Ogonquit's accounts is overstated by $27,561, which

will be give a wrong picture to Current & Pottential investor.
 Debit ($) Credit ($)
3,000

3,000

13,200
13,200

6,600
6,600

16,000
16,000

301
301

1,660
1,660

nto consideration:
1 &2

Cash

DR. CR.
4000

Accounts Payable

DR. CR.
3260

Wages & Salary Expense

DR. CR.
2320
1450

Net Income = Revenue -Expense =

Income Tax = 30% of Net Income =

3 Four Star Video

Adjusted Trial Balance
31-May-12
Debit Credit
Cash $ 4,000
Prepaid Rent $ 6,000
Video Inventory $ 23,140
Display Stands $ 8,900
Accumulated Depreciation $ 5,320
Accounts Payable $ 3,260
Customer subscriptions $ 6,890
Capital stocks $ 5,000
 Retained Earnings $ 22,170
Rental Revenue $ 9,200
Wage and Salary Expenses $ 3,770
Wage and Salary Payable $ 1,450
Utilities Expense $ 1,240
Advertising Expense $ 600
Depreciation Expense $ 140
Account Receivables $ 2,440
Rental Expense $ 600
Income Tax Expense $ 3,144
Income Tax Payable $ 3,144
Loss on Inventory $ 2,460
Totals $ 56,434 $ 56,434

4
 Prepaid Rent Video Inventory Display Stands

DR. CR. DR. CR. DR. CR.

6600 25600 8900
600 2460

Customer
Capital Stock Retained Earnings
Subscriptions

DR. CR. DR. CR. DR. CR.

4450 5000 22170
2440

Advertising
Utilities Expense Account Receivables
Expense
DR. CR. DR. CR. DR. CR.
1240 600 2440

10480

3144
 Accumulated Depreciation
Depreciation Expense
DR. CR. DR. CR.
5180 140
140

Wages & Salary

Rental Revenue
Payable

DR. CR. DR. CR.

9200 1450

Income Tax Payable Income Tax Expense

DR. CR. DR. CR.

3144 3144
 Rental Expense

DR. CR.
600

Loss on Inventory

DR. CR.
2460
1
Four Star Video transaction for month of May
Transaction Number Assets

Prepaid Video Display Account Income Tax

Date Cash Rent Inventory Stands Receivables payable

1 -$600.00
2 -$2,460.00
3 -$140.00
4
5 $2,440.00
6 $3,144.00

Total Assets -$760 Total Liabilities & SE

of May
Shareholders’ equity

Wages & Capital Retained

Salaries Stocks earnings
payable

-$600.00
-$2,460.00
-$140.00
$1,450.00 -$1,450.00
$2,440.00
-$3,144.00

Total Liabilities & SE -$760

 Date Unit Purchased Price
Nov-04 250 18.5
Nov-07
Nov-13 220 18.9
Nov-18 150 19
Nov-22
Nov-24 200 19.2
Nov-28

Weighted Average

Purchases Price Total Inventory

Beg. Inventory 200 18 3600
Nov-04 250 18.5 4625
Nov-13 220 18.9 4158
Nov-18 150 19 2850
Nov-24 200 19.2 3840

Purchase Inv 1020 19073

Price Per Unit Weighted Average 18.69901960784 18.7

Ending Inventory 230

Ending Inv Cost 4301
Cost of Goods Sold 14773
Total 19074

Income Statement

Item Weighted Avergae LIFO FIFO

Sales 33480 33480 33480
COGS 14773 14918 14663
Gross Profit 18707 18562 18817
Selling and Admin Expense 10800 10800 10800
Depriciation Expense 4000 4000 4000
Income before taxes 3907 3762 4017
Income Tax 1367.45 1316.7 1405.95
Net Income 2539.55 2445.3 2611.05
Least Tax LIFO Method 1316.7
 Unit Sold Price
Selling and Admin Expense Total Sales
300 42 10800 Units Price Sales
300 42 12600
Dep. Expense 380 42.5 16150
380 42.5 4000 110 43 4730

110 43 Tax rate Total Sales 33480

35%

verage

Inventory Sold 790 FIFO

Cost of Goods Sold Ending Inv
Units Price Total Units
200 18 3600 30
250 18.5 4625 200
220 18.9 4158
120 19 2280

Cost of Ending
Goods Sold 14663 Inventory

19073

LIFO
Cost of Goods Sold Ending Inv
Units Price Total Units
200 19.2 3840 30
150 19 2850 200
220 18.9 4158
220 18.5 4070
Cost of Ending
Goods Sold 14918 Inventory

19073
FO
Ending Inv
Price Total
19 570
19.2 3840

Ending
Inventory 4410

FO
Ending Inv
Price Total
18.5 555
18 3600

Ending
Inventory 4155