Accounting Cycle Assignment

Mike Sales Ltd.
Inventory
31-Dec-18
Inventory COGS Sales

Date
Units Cost Total Units Cost Total Units
Beginnning 12,000.00 4.00 48,000.00
Dec-03 Purchase 20,000.00 2.10 42,000.00
Available 32,000.00 90,000.00
Dec-03 Sold (24,000) 67,440.00 24,000.00 2.81 67,440.00 24,000.00 7.29
Inventory 8,000.00 2.81 22,480.00
Dec-03 Sold (2,000) 2,000.00 2.81 5,620.00 2,000.00 12.50
Inventory 6,000.00 2.81 16,860.00
Dec-03 Purchase 10,000.00 47,500.00
Available 16,000.00 64,360.00
Dec-12 Sold (4,000) 4.02 4,000.00 4.02 16,080.00 4,000.00 12.50
Dec-16 Sold (400) 4.02 400.00 4.02 1,608.00 400.00 12.50
Available 11,600.00 4.02 46,632.00
Dec-16 Buyer Return 1,000.00 (1,000) 4.02 (4,020) (1,000) 12.50
Available 12,600.00 4.02 50,652.00
Dec-19 Purchase 2,000.00 14,000.00
Dec-20 Purchase 5,000.00 25,000.00
Available 19,600.00 89,652.00
Dec-21 Return (1,000) 5.00 (5,000)
Available 18,600.00 84,652.00
Total 18,600.00 84,652.00 86,728.00
Sales
Total
175,000.00
25,000.00
50,000.00
5,000.00
(12,500)
242,500.00
Mike Sales Ltd.
General Journal
Date Explanation Dr Cr
Dec-02 Cash 300,000
Land 250,000
Building 350,000
Mortage Payable (20 years - 6%) 300,000
Common Shares (100,000) 600,000
Dec-02 Equipment 320,000

Cash 120,000
Bank Loan Payable (5 years - 6%) 200,000
Dec-02 Prepaid Insurance (3 years) 24,000

Cash 24,000
Dec-02 Truck 80,000

Cash 80,000
Dec-03 Office Supplies 24,000

Accounts Payable (Grand and Toy) 24,000
N/30
Dec-03 Cash 43,530

Accounts Receivable 43,530
Dec-03 Merchandise Inventory (20,000 units) 42,000

Accounts Payable (Ajax) 42,000
1/10, N/30, FOB Shipping Point
Dec-03 Accounts Receivalble (Alou) 175,000

Sales 175,000
COGS (24,000 units) 67,440

Merchandise Inventory 67,440
24,000*2.81
Dec-03 Cash 15,000

Accounts Receivable (Nilsson) 10,000
Sales 25,000
3/10, N/30, FOB Destination
COGS (2,000 units) 5,620

2,000*2.81
Mike Sales Ltd.
General Journal

Accounts Payable (Blue) 47,500
N/30, FOB Destination
Dec-03 Dividend Declared - Preferred Shares 18,000

Cash 18,000
60,000*0.30
Dec-03 Dividend Declared - Common Shares 60,000

Cash 60,000
(100,000+100,000)*0.30
Dec-04 Merchandise Inventory 2,500

Cash 2,500
Dec-05 Accounts Payable 40,000

Cash 40,000
Dec-06 Cash 18,870

Dec-07 Freight Out 500

Cash 500
Dec-08 Accounts Payable 42,000

Merchandise Inventory 420
Cash 41,580
Dec-09 Cash 23,500

Unearned Revenue (1000 units - 15/03/2019) 23,500
Dec-09 NO ENTRY
Dec-10 Cash 171,500

Sales Discounts 3,500
Dec-12 Accounts Receivable (Rivers) 50,000

Sales 50,000
COGS (4,000 units) 16,080

4,000*4.02
Mike Sales Ltd.
General Journal
Dec-16 NO ENTRY
Dec-16 Cash 3,500

Accounts Receivable (Poor) 1,500
Sales 5,000
COGS (400 units) 1,608

400*4.02
Dec-16 Sales Returns and Allowances 12,500

Accounts Receivable (Rivers) 12,500
50,000/4,000*1,000

COGS (1000 units) 4,020
1,000*4.02
Dec-17 Cash 25,000

Preferred Shares (10,000) 25,000
Dec-17 Freight Out 1,500

Cash 1,500
Dec-18 Prepaid Advertising 19,500

Advertising Payable 19,500

Accounts Payable (C.D) 14,000
Dec-19 Cash 48,500

Accounts Receivable (Rivers) 50,000

Accounts Payable (Blue) 25,000
Dec-21 Accounts Payable (Blue) 5,000

Merchandise Inventory (1,000 units) 5,000
25,000/5000*1000
Mike Sales Ltd.
General Journal
Dec-23 Marketable Securities Expense 17,000
Cash 17,000
Dec-27 Accounts Payable (Blue) 67,500

Cash 67,300
Merchandise Inventory 200
(25,000-5,000)*1%
Dec-31 Janitorial Service Expense 10,000

Janitorial Service Payable 10,000
Dec-23 Accounts Payable (C.D) 14,000

Cash 14,000
2,472,168 2,472,168
T Accounts
Cash Accounts Receivable Merchandise Inventory

Dr Cr Dr Cr Dr
822,000.00 72,400.00 48,000.00
300,000.00 120,000.00 175,000.00 43,530.00 42,000.00
43,530.00 24,000.00 10,000.00 18,870.00 47,500.00
15,000.00 80,000.00 50,000.00 175,000.00 4,020.00
18,870.00 18,000.00 1,500.00 12,500.00 14,000.00
23,500.00 60,000.00 50,000.00 25,000.00
171,500.00 2,500.00 2,500.00
3,500.00 40,000.00 9,000.00
25,000.00 500.00 86,652.00
48,500.00 41,580.00 Building Equipment
1,500.00 Dr Cr Dr
17,000.00 350,000.00 320,000.00
67,300.00
14,000.00 350,000.00 320,000.00
985,020.00
Land Truck Prepaid Advertising

Dr Cr Dr Cr Dr
250,000.00 80,000.00 19,500.00
250,000.00 80,000.00 19,500.00
Income Statement
Sales Sales Returns and Allowances Sales Discounts
Dr Cr Dr Cr Dr
1,847,100.00 64,600.00 74,520.00
175,000.00 12,500.00 3,500.00
25,000.00 1,500.00
50,000.00 77,100.00
5,000.00 79,520.00
2,102,100.00
Advertising Expense Income Tax Expense Freight Out
Dr Cr Dr Cr Dr
66,100.00 112,000.00 500.00
1,500.00
66,100.00 112,000.00
2,000.00
Rent Expense Salary Expense Interest Expense
Dr Cr Dr Cr Dr
199,000.00 177,600.00 8,000.00
T Accounts
199,000.00 177,600.00 8,000.00

Merchandise Inventory Office Supplies Advertising Payable
Cr Dr Cr Dr Cr
21,670.00 19,500.00
67,440.00 24,000.00
5,620.00 19,500.00
420.00 45,670.00
16,080.00
1,608.00
5,000.00
200.00
Equipment Prepaid Insurance Common Shares

Cr Dr Cr Dr Cr
24,000.00 100,000.00
600,000.00
24,000.00
700,000.00
Prepaid Advertising Long Term Investment Janitorial Service Payable

Cr Dr Cr Dr Cr
229,000.00 10,000.00
229,000.00 10,000.00
Sales Discounts Cost of Good Sold

Cr Dr Cr
608,000.00
67,440.00 4,020.00
5,620.00
16,080.00
1,608.00
694,728.00
Freight Out Marketable Securities Expense
Cr Dr Cr
17,000.00
17,000.00
Interest Expense Janitorial Service Expense

Cr Dr Cr
10,000.00
10,000.00
Accounts Payable Unearned Revenue Mortage Payable
Dr Cr Dr Cr Dr
300,000.00 31,800.00
40,000.00 24,000.00 23,500.00
42,000.00 42,000.00
5,000.00 47,500.00 55,300.00
67,500.00 14,000.00
14,000.00 25,000.00
284,000.00
Dividend Declared - Common Dividend Declared -
Preferred Shares Shares Preferred Shares
Dr Cr Dr Cr Dr
60,000.00 60,000.00 18,000.00
25,000.00
60,000.00 18,000.00
85,000.00
Bank Loan Payable Retained Earnings

Dr Cr Dr Cr
200,000.00 163,990.00
200,000.00 163,990.00
Mortage Payable
Cr
300,000.00
300,000.00
Dividend Declared -
Preferred Shares
Cr
Trial Balance
Mike Sales Ltd.

Trial Balance
Accounts Dr Cr
Cash 985,020
Office Supplies 45,670
Land 250,000
Building 350,000
Equipment 320,000
Prepaid Insurance 24,000
Truck 80,000
Prepaid Advertising 19,500
Long Term Investment 229,000
Accounts Payable 284,000
Adverttising Payable 19,500
Unearned Revenue 55,300
Mortage Payable 300,000
Bank Loan Payable 200,000
Janotorial Service Payable 10,000
Common Shares 700,000
Preferred Shares 85,000
Retained Earnings 163,990
Dividend Declared - Common Shares 60,000
Dividend Declared - Preferred Shares 18,000
Sales 2,102,100
Sales Returns and Allowances 77,100
Cost of Goods Sold 694,728
Rent Expense 199,000
Salary Expense 177,600
Interest Expense 8,000
Advertising Expense 66,100
Income Tax Expense 112,000
Freight Out 2,000
Marketable Securities Expense 17,000
Janitorial Service Expense 10,000
Total 3,919,890 3,919,890
Mike Sales Ltd.
Adjusted General Journal
1 Office Expense 34,170
45,670-11,500
2 Salary Expense 16,600

Salary Payable 16,600
3 Depreciaiton Expense - Equipment 6,250

Accumulated Depreciaiton - Equipment 6,250
(320,000-20,000)/4*(1/12)
4 Depreciaiton Expense - Building 2,917

Accumulated Depreciaiton - Building 2,917
(350,000)*(1/20)%*2*(1/12)
5 Depreciaiton Expense - Truck 1,900

Accumulated Depreciaiton - Truck 1,900
(80,000-4,000)/200,000*5,000
6 Insurance Expense 667

Prepaid Insurance 667
24,000/3/12
7 Advertising Expense 8,000

Advertsing Payable 8,000
8 Income Tax Expense 27,000

Income Tax Payable 27,000
9 Wage Expense 16,000

Wage Payable 16,000
10 Mortage Interest Expense 1,500

Mortage Interest Payable 1,500
300,000*0.06/12
11 Bank Loan Interest Expense 1,000

Bank Loan Interest Payable 1,000
200,000*0.06/12
12 Unearned Revenue 31,800

Sales 31,800
13 NO ENTRY
Assets
Cash Accounts Receivable
Dr Cr Dr Cr
822,000.00 72,400.00
300,000.00 120,000.00 175,000.00 43,530.00
43,530.00 24,000.00 10,000.00 18,870.00
15,000.00 80,000.00 50,000.00 175,000.00
18,870.00 18,000.00 1,500.00 12,500.00
23,500.00 60,000.00 50,000.00
171,500.00 2,500.00
3,500.00 40,000.00 9,000.00
25,000.00 500.00
48,500.00 41,580.00
1,500.00 Truck
17,000.00 Dr Cr
67,300.00 80,000.00
14,000.00
985,020.00 80,000.00
Land Building
Dr Cr Dr Cr
250,000.00 350,000.00
250,000.00 350,000.00
Income Statement
Sales Sales Returns and Allowances
Dr Cr Dr Cr
1,847,100.00 64,600.00
175,000.00 12,500.00
25,000.00
50,000.00 77,100.00
5,000.00
31,800.00
2,133,900.00
Advertising Expense Marketable Securities Expense

Dr Cr Dr Cr
66,100.00 17,000.00
8,000.00
74,100.00 17,000.00
Janitorial Service Expense Rent Expense

Dr Cr Dr Cr
10,000.00 199,000.00
10,000.00 199,000.00
Depreciation Expense Depreciation Expense

Building Equipment
Dr Cr Dr Cr
2,917.00 6,250.00
Bank Loan Interest Expense Wage Expense

Dr Cr Dr Cr
1,000.00 16,000.00
Merchandise Inventory Office Supplies Accounts Payable
Dr Cr Dr Cr Dr
48,000.00 21,670.00
42,000.00 67,440.00 24,000.00 40,000.00
47,500.00 5,620.00 34,170.00 42,000.00
4,020.00 420.00 5,000.00
14,000.00 16,080.00 11,500.00 67,500.00
25,000.00 1,608.00 14,000.00
2,500.00 5,000.00
200.00
86,652.00
Prepaid Advertising Long Term Investment

Dr Cr Dr Cr Accumulated Dep.
19,500.00 229,000.00 Building
Dr
19,500.00 229,000.00
Equipment Prepaid Insurance

Dr Cr Dr Cr
320,000.00 24,000.00
667.00
320,000.00 23,333.00 Common Shares

Dr
Sales Discounts COGS

Dr Cr Dr Cr
74,520.00 608,000.00
3,500.00 67,440.00 4,020.00
1,500.00 5,620.00
16,080.00
79,520.00 1,608.00
694,728.00
Freight Out Income Tax Expense

Dr Cr Dr Cr
500.00 112,000.00
1,500.00 27,000.00
2,000.00 139,000.00
Interest Expense Salary Expense

Dr Cr Dr Cr
8,000.00 177,600.00
16,600.00
8,000.00
194,200.00
Depreciation Expense
Truck Mortgage Interest Expense
Dr Cr Dr Cr
1,900.00 1,500.00
Office Expense Insurance Expense

Dr Cr Dr Cr
34,170.00 667.00
Accounts Payable Unearned Revenue Mortage Payable
Cr Dr Cr Dr Cr
300,000.00 31,800.00 300,000.00
24,000.00 31,800.00 23,500.00
42,000.00
47,500.00 23,500.00 300,000.00
14,000.00
25,000.00
Income Tax Payable Mortgage Interest Payable
284,000.00 Dr Cr Dr Cr
27,000.00 1,500.00
Accumulated Dep. Accumulated Dep. Accumulated Dep.

Building Equipment Truck
Cr Dr Cr Dr Cr
2,917.00 6,250.00 1,900.00
Common Shares Preferred Shares Retained Earnings

Cr Dr Cr Dr Cr
100,000.00 60,000.00 163,990.00
600,000.00 25,000.00
700,000.00 85,000.00 163,990.00

Bank Loan Payable Janitorial Service Payable
Dr Cr Dr Cr
200,000.00 10,000.00
200,000.00 10,000.00
Bank Loan Interest Payable Salary Payable

Dr Cr Dr Cr
1,000.00 16,600.00
Advertising Payable Wage Payable

Dr Cr Dr Cr
19,500.00 16,000.00
8,000.00
27,500.00
Preferred Stock Dividends Common Stock Dividends

Declared Declared
Dr Cr Dr Cr
18,000.00 60,000.00
18,000.00 60,000.00
Mike Sales Ltd.
Adjusted Trial Balance
Accounts Dr
Cash 985,020
Land 250,000
Building 350,000
Equipment 320,000
Truck 80,000
Accounts Payable
Advertising Payable
Unearned Revenue
Mortage Payable
Bank Loan Payable
Janotorial Service Payable
Mortgage Interest Payable
Bank Loan Interest Payable
Salary Payable
Wages Payable
Income Tax Payable
Accumulated Dep. - Building
Accumulated Dep. - Equipment
Accumulated Dep. - Truck
Common Shares
Preferred Shares
Retained Earnings
Sales
COGS 694,728
Advertisign Expense 74,100
Freight Out 2,000
Office Expense 34,170
Depreciation Expense - Building 2,917
Depreciation Expense - Equipment 6,250
Depreciation Expense - Truck 1,900
Mortgage Interest Expense 1,500
Bank Loan Interest Expense 1,000
Wages Expense 16,000
Insurance Expense 667
Total 4,001,057
Mike Sales Ltd.
Income Statement
For the year ending December 31, 2018
Cr Sales Revenue
Sales $ 2,133,900
Less: Sales returns and allowances $ 77,100
Sales discounts 79,520 156,620
Net sales 1,977,280
Cost of goods sold 694,728
Gross Profit $ 1,282,552
Operating Expenses
284,000 Janitorial Service Expense 10,000
27,500 Office Expense 34,170
23,500 Freight Out 2,000
300,000 Insurance Expense 667
200,000 Wages Expense 16,000
10,000 Depreciation Expense - Truck 1,900
1,500 Depreciation Expense - Equipment 6,250
1,000 Depreciation Expense - Building 2,917 558,204
16,600 Income from operations $ 724,348
16,000 Other revenues and expenses
27,000 Interest Expense 8,000
2,917 Mortagage Interest Expense 1,500
6,250 Bank Loan Interest Expense 1,000 10,500
1,900 Income before income tax $ 713,848
700,000 Income tax expense 139,000
85,000 Net income (Profit) $ 574,848
163,990
2,133,900
4,001,057
Mike Sales Ltd.
Statement of Changes in Equity
For the year ending December 31, 2018
Date Common Shares Preferred Shares

Beginning of period 100,000 60,000
Issued 600,000 25,000
Dividends Declared - Common Shares
Dividends Declared - Preferred Shares
Net Profit
Balance, December 31 700,000 85,000
Mike Sales
Balance Sh
31-Dec-1
Retained Earnings Assets

163,990 Current Assets
Cash $ 985,020
(60,000) Accoutns Receivable 9,000
(18,000) Merchandise Inventory 86,652
574,848 Office Supplies 11,500
660,838 Prepaid Advertising 19,500
Total Current Asstes
Long Term Investment
Property, Plants and Equipment
Land $ 250,000
Building $ 350,000
Less: Accumulated Depreciaiton - Building 2,917 347,083
Equipment $ 320,000
Less: Accumulated Depreciaiton - Equipment 6,250 313,750
Truck $ 80,000
Less: Accumulated Depreciaiton - Truck 1,900 78,100
Total Property, Plant and Equipment
Total Assets
Mike Sales Ltd.
Balance Sheet
31-Dec-18
Liabilities
Current Liabilities
Accounts Payable $ 284,000
Mortgage Interest Payable 1,500
$ 1,135,005 Salary Payable 16,600
$ 229,000 Wages Payable 16,000
Total Current Liabilities $ 407,100
Non Current Liabilities
Mortgage Payable $ 300,000
Total Non Current Liabilities $ 500,000
Total Liabilities 907,100
Shareholders' Equity
$ 988,933 Common Shares $ 700,000
$ 2,352,938 Preferred Shares 85,000
Total Shareholders' Equity $ 1,445,838
Total Liabilities and Shareholders' Equity $ 2,352,938
Additional Information:
1. Cash sales represent 10 percent of all sales, 90 percent of sales are credit sales
2. Current market price of Mike Sales Ltd. Common shares is $6.50 per share
Mike Sales Ltd.

Ratios Industry Average
Ratio Calculation
Assets Turnover 0.84 times 2.6 times
Receivable Turnover 213.39 times 12 times
Average Collection Period 3.22 days 31 days
Current Ratio 2.79 times 1.7 times
Inventory Turnover 8.02 times 6.7 times
Debt to Total Assets 38.55% 50%
Earning Per Share $2.78 $2.10
Price Earnings Ratio 2.34 times 10 times
Gross Profit Margin 64.86% 30%
Profit Margin 29.07% 9%
Return on Assets 24.43% 15%
Return on Common Shareholders' Equity 79.55% 18%
Working Capital $727,905 $350,000
Times Interest Earned 90.23 times 12 times
Payout Ratio 13.57% 8%
Dividend Yield 4.44% 4%
Days in Inventory 45.53 days 38 days
Liquidity
Although Mike Sales Ltd. is turning over its inventory slower than the industry average, its other liquidity ratios are still better
Profitability
Mike’s has a significantly higher gross profit margin and profit margin than the industry. Mike’s also has a better return on com
turnover and price earning ratio, all other profitability ratios indicate that Mike’s is more profitable than the industry.
Solvency
Mike’s is more solvent than the industry because Mike's debt to total assets and times interest earned are significant better th
before income tax and interest is much higher relative to its interest expense.
Recommendation
Mike’s price-earnings ratio is lower than the industry average, showing that investors on average favour other companies in th
Comments Ratios
Mike Sales’s assets turnover is worse than industry average. Profitability
Mike Sales’s receivable turnover is better than industry average. Liquidity
Mike Sales’s average collection period is better than industry average. Liquidity
Mike Sales’s current ratio is better than industry average. Liquidity
Mike Sales’s inventory turnover is faster than industry average. Liquidity
Mike Sale's debt to total assets is better than industry average. Solvency
Mike Sales’s earning per share is better than industry average. Profitability
Mike Sales's price earning ratio is worse than industry average. Profitability
Mike Sales’s gross profit margin is better than industry average. Profitability
Mike Sales’s profit margin is better than industry average. Profitability
Mike Sales’s return on assets is better than industry average. Profitability
Mike Sales’s return on common shareholders' equity is better than industry

Profitability
average.
Mike Sales’s working capital is better than industry average. Liquidity
Mike Sale's times interest earned is better than industry average. Solvency
Mike Sales's payout ratio is better than industry average. Profitability
Mike Sale's dividend yield is better than industry average. Profitability
Mike Sale's days in inventory is worse than industry average. Liquidity
y average, its other liquidity ratios are still better than the average in general.
e industry. Mike’s also has a better return on common shareholders’ equity and a higher return on assets. While the industry has a slightly
ke’s is more profitable than the industry.
and times interest earned are significant better than the industry. This indicates that Mike’s has a higher capacity to service its debt becau
.
nvestors on average favour other companies in the industry eventhough Mike has higher profitability than the industry.
hile the industry has a slightly higher asset
acity to service its debt because its income
e industry.
Mike Sales Ltd. Post-closing T Account
Year End Closing Journal
31-Dec Sales 2,133,900
Income Summary 2,133,900
31-Dec Income Summary 1,559,052

Freight Out 2,000
31-Dec Income Summary 574,848

31-Dec Retained Earnings 78,000

Post-closing T Accounts
Income Summary Retained Earnings Sales

Dr Cr Dr Cr Dr
574,848 - 163,990
1,559,052 2,133,900 78,000 554,848 2,133,900
- 640,838
Rent Expense Salary Expense Interest Expense

Dr Cr Dr Cr Dr
199,000 194,200 8,000
199,000 194,200
0 0 0
Janitorial Service Expense Office Expense Depreciaiton Expense - Building

Dr Cr Dr Cr Dr
10,000 34,170 2,917
10,000 34,170
0 0 0
Bank Loan Interest Expense Wages Expense Insurance Expense

Dr Cr Dr Cr Dr
1,000 16,000 667
16,000
0 0 0
Sales Sales Returns and Allowances Sales Discounts
Cr Dr Cr Dr Cr
2,133,900 77,100 79,520
77,100 79,520
0 0 0
Interest Expense Advertising Expense Freight Out

Cr Dr Cr Dr Cr
74,100 2,000
8,000 74,100 2,000
0 0
reciaiton Expense - Building Depreciaiton Expense - Equipment Depreciaiton Expense - Truck

Cr Dr Cr Dr Cr
6,250 1,900
2,917 6,250 1,900
0 0
Insurance Expense Income Tax Expense Dividend Declared - Common Shares

Cr Dr Cr Dr Cr
139,000 60,000
667 139,000 60,000
0 0
COGS
Dr Cr
694,728
694,728
0
Marketable Sercurities Expense

Dr Cr
17,000
17,000
0
Mortgage Interest Expense

Dr Cr
1,500
1,500
0
Dividend Declared - Preferred Shares

Dr Cr
18,000
18,000
0
Mike Sales Ltd.
Post-closing Trial Balance
Accounts Dr Cr
Cash 985,020
Land 250,000
Building 350,000
Equipment 320,000
Truck 80,000
Accumulated Depreciation - Building 2,917
Accumulated Depreciation - Equipment 6,250
Accumulated Depreciation - Truck 1,900
Bank Loan Interest Paybable 1,000
Wages Payable 16,000
Mortgage Payable 300,000
Bank Loan Payble 200,000
Total 2,364,005 2,364,005
Mike Sales Ltd.
Adjusted Trial Balance
Accounts Dr Cr
Cash 985,020
Land 250,000
Building 350,000
Equipment 320,000
Truck 80,000
Accumulated Depreciation - Building 2,917
Accumulated Depreciation - Equipment 6,250
Accumulated Depreciation - Truck 1,900
Mortage Payable 300,000
Janotorial Service Payable 10,000
Wages Payable 16,000
Sales 2,133,900
Advertisign Expense 74,100
Freight Out 2,000
Total 4,001,057 4,001,057

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Mike Sales Ltd.

Inventory COGS Sales

Dec-02 Equipment 320,000

Dec-02 Prepaid Insurance (3 years) 24,000

Dec-02 Truck 80,000

Dec-03 Office Supplies 24,000

Dec-03 Cash 43,530

Dec-03 Merchandise Inventory (20,000 units) 42,000

Dec-03 Accounts Receivalble (Alou) 175,000

COGS (24,000 units) 67,440

Dec-03 Cash 15,000

COGS (2,000 units) 5,620

Dec-03 Merchandise Inventory (10,000 units) 47,500

Dec-03 Dividend Declared - Preferred Shares 18,000

Dec-03 Dividend Declared - Common Shares 60,000

Dec-04 Merchandise Inventory 2,500

Dec-05 Accounts Payable 40,000

Dec-06 Cash 18,870

Dec-07 Freight Out 500

Dec-08 Accounts Payable 42,000

Dec-09 Cash 23,500

Dec-10 Cash 171,500

Dec-12 Accounts Receivable (Rivers) 50,000

COGS (4,000 units) 16,080

Dec-16 Cash 3,500

COGS (400 units) 1,608

Dec-16 Sales Returns and Allowances 12,500

Merchandise Inventory 4,020

Dec-17 Cash 25,000

Dec-17 Freight Out 1,500

Dec-18 Prepaid Advertising 19,500

Dec-19 Merchandise Inventory (2,000 units) 14,000

Dec-19 Cash 48,500

Dec-20 Merchandise Inventory (5,000 units) 25,000

Dec-21 Accounts Payable (Blue) 5,000

Dec-27 Accounts Payable (Blue) 67,500

Dec-31 Janitorial Service Expense 10,000

Dec-23 Accounts Payable (C.D) 14,000

Cash Accounts Receivable Merchandise Inventory

Land Truck Prepaid Advertising

250,000.00 80,000.00 19,500.00

199,000.00 177,600.00 8,000.00

Equipment Prepaid Insurance Common Shares

Prepaid Advertising Long Term Investment Janitorial Service Payable

Sales Discounts Cost of Good Sold

Interest Expense Janitorial Service Expense

Bank Loan Payable Retained Earnings

Mike Sales Ltd.

2 Salary Expense 16,600

3 Depreciaiton Expense - Equipment 6,250

4 Depreciaiton Expense - Building 2,917

5 Depreciaiton Expense - Truck 1,900

6 Insurance Expense 667

7 Advertising Expense 8,000

8 Income Tax Expense 27,000

9 Wage Expense 16,000

10 Mortage Interest Expense 1,500

11 Bank Loan Interest Expense 1,000

12 Unearned Revenue 31,800

Advertising Expense Marketable Securities Expense

Janitorial Service Expense Rent Expense

Depreciation Expense Depreciation Expense

Bank Loan Interest Expense Wage Expense