Instructions:

You are the controller at Star Wars, Inc., a wholesale distributor of light sabers and other interstellar w
was founded in galaxy far, far away a long time ago. The company has 300,000 share of common sto
of $20. Currently, 9,500 shares are issued and outstanding. In your role as controller, you are respon
accounting records, financial statement preparation, and ensuring that the company has adequate int
support management at Star Wars by providing required financial reports. You supervise a staff that t
aspects of accounting, but ultimately you oversee all the functions of the accounting department. Sta
calendar year-end (the books are closed on December 31 of each year). Adjusting entries are only pre
Therefore, when you prepare the adjusting entries, they will need to be for the entire year, not just for
to complete this practice set, you will need to record all regular transactions for the month of Decemb
transactions have already been recorded for the year) and all of the year-end adjusting entries. You w
all transactions and adjustments in the general journal, post them to the general ledger accounts, pre
balance, prepare the financial statements, prepare closing entries, and finally a post-closing trial balan
December 31, 2014.

The following information pertains to the various accounting practices applicable to Star Wars, Inc.
1. Star Wars, Inc. maintains inventory using the perpetual method. All inventory costs are tracked us
last in, first out (LIFO) cost flows. (See the cost of goods sold sheet for details regarding inventory)
2. Purchases of inventory are recorded at the net amount (discounts are recognized on the date of pu
The purchase terms are different for each supplier. Forfeited discounts are recorded separately as co
3. Sales on account are subject to terms 2/10, n/30 and are recorded at gross value.
4. The company utilizes a general journal and general ledger, but also tracks detailed information on
in accounts payable and accounts receivable subsidiary ledgers, respectively. You will need to maint
5. Salaried employees are paid monthly at the end of the month (on the last day of the month). Hour
every two weeks. Each two week pay period ends on the Friday of the second week.
6. The Company's chart of accounts is listed on the right side of this spreadsheet.
7. The Company uses the Allowance Method of accounting for bad debt. The Company calculates bad
of the fiscal year at 2% of net sales.

s and other interstellar weaponry. The corporation

000 share of common stock authorized with a par value
ontroller, you are responsible for the company's
mpany has adequate internal controls. You also
u supervise a staff that takes care of the other
ounting department. Star Wars, Inc. maintains a
sting entries are only prepared annually.
e entire year, not just for December. In order
or the month of December, 2014 (all other regular
adjusting entries. You will journalize
eral ledger accounts, prepare an adjusted trial
a post-closing trial balance for the year ended

able to Star Wars, Inc.

tory costs are tracked using
ils regarding inventory)
gnized on the date of purchase, if applicable)
ecorded separately as cost of goods sold.

detailed information on suppliers and customers

y. You will need to maintain the subsidiary ledgers.
day of the month). Hourly employees are paid
nd week.
Company calculates bad debt expense at the end

Chart of Accounts:
Name of Account
Cash
Petty Cash
Accounts Receivable
Allowance for Doubtful Accounts
Notes Receivable
Interest Receivable
Inventory
Supplies
Prepaid Insurance
Prepaid Rent
Other Assets
Land
Buildings
Accumulated Depreciation - Building
Equipment
Accumulated Depreciation - Equipme
Space Ships
Accumulated Depreciation - Space Sh
Notes Payable
Accounts Payable
Salaries and Wages Payable
FICA Taxes Payable
Income Taxes Payable
Federal Withholding Taxes Payable
State Withholding Taxes Payable
FUTA Taxes Payable
SUTA Taxes Payable
Interest Payable
Dividends Payable
Notes Payable (long-term)
Bonds Payable
Discount on Bonds Payable
Common Stock
Additional Paid-in Capital, Common
Retained Earnings
Treasury Stock
Dividends
Income Summary
Sales Revenue
Sales Returns and Allowances
Sales Discounts
Cost of Goods Sold
Advertising Expense
Bad Debt Expense

Supplies Expense
Repairs Expense
Miscellaneous Expense
Depreciation Expense
Insurance Expense
Salaries and Wages Expense
Rent Expense
Payroll Tax Expense
Utilities Expense
Interest Revenue
Gain on Disposal of Fixed Assets
Interest Expense
Loss on Disposal of Fixed Assets
Income Tax Expense

or Doubtful Accounts

d Depreciation - Buildings

d Depreciation - Equipment

d Depreciation - Space Ships

Wages Payable

s Payable
hholding Taxes Payable
olding Taxes Payable

le (long-term)
Bonds Payable

aid-in Capital, Common

ns and Allowances

Number of Account
101
104
111
112
115
118
120
125
128
130
131
135
140
141
146
147
155
156
200
201
210
211
212
213
214
215
216
225
226
230
232
233
300
301
305
310
315
320
401
402
403
500
601
602

us Expense
n Expense
Wages Expense

posal of Fixed Assets

posal of Fixed Assets

603
604
605
606
607
608
609
610
611
700
701
800
801
900

Star Wars, Inc

Trial Balance
November 30, 2014

REV. EQUITY
EXPENSES

LIABILITIES

ASSETS

Accounts:
Cash
Petty Cash
Accounts Receivable
Allowance for Doubtful Accounts
Notes Receivable (current)
Interest Receivable
Inventory
Supplies
Prepaid Insurance
Prepaid Rent
Other Assets (current)
Land
Buildings
Accumulated Depreciation - Buildings
Equipment
Accumulated Depreciation - Equipment
Space Ships
Accumulated Depreciation - Space Ships
Notes Payable (current)
Accounts Payable
Salaries & Wages Payable
FICA Taxes Payable
Income Taxes Payable
Federal Withholding Taxes Payable
State Withholding Taxes Payable
FUTA Taxes Payable
SUTA Taxes Payable
Interest Payable
Dividends Payable
Notes Payable (long-term)
Bonds Payable
Discount on Bonds Payable

Debit

Credit

249,930
150
317,420
4,580
45,000
500,000
2,320
11,020
25,410
145,000
43,000
306,000
73,040
32,800
13,200
78,400
39,540
15,000
126,850
1,787
9,573
2,486
400
2,600
113,000
275,000
6,400

Common Stock

190,000

Additional Paid-in Capital, Common

255,400

Retained Earnings

330,788

Treasury Stock
Sales Revenue
Sales Returns & Allowances
Sales Discounts
Cost of Goods Sold
Advertising Expense

42,610
5,234,940
9,380
73,044
3,648,722
6,578

OPERATING EXPENSES

Other Rev/Exp

Bad Debt Expense

Supplies Expense
Repairs Expense
Miscellaneous Expense
Depreciation Expense
Insurance Expense
Salaries & Wages Expense
Rent Expense
Payroll Tax Expense
Utilities Expense
Interest Revenue

1,540
17,732
933,122
82,916
16,270
3,150

Gain on Disposal of Fixed Assets

Interest Expense

24,570

Loss on Disposal of Fixed Assets

Income Tax Expense

72,000

Totals

6,691,334

6,691,334

Transaction Descriptions: Note that the transaction

descriptions are included as a comment (red triangle in cell).
Use the mouse to place cursor over cell and the comment will pop up.
General Journal
Date
Transaction
Accounts
Debit
Example Journal Entry
Cash
XXX
Service revenue
1-Dec
Cash
23,569
Sales Discount
481
A/R
1-Dec
A/R
80,000
Sales Revenue
Cost of Goods Sold
28,000
Inventory
2-Dec
Inventory
105,000
A/P
2-Dec
A/P
26,000
Cash
3-Dec
Allowance for Doubtful Accoun
3,700
A/R
3-Dec
A/R
120,000
Sales Revenue
Cost of Goods Sold
45,000
Inventory
6-Dec
Cash
49,294
Sales Discount
1,006
A/R
6-Dec
A/R
200,000
Sales Revenue
Cost of Goods Sold
74,000
Inventory
6-Dec
Repairs Expense
915
Cash
7-Dec
Accounts Payable
9,900
Cash
7-Dec
A/P
10,486
Cash
7-Dec
Cash
72,863
Sales Discount
1,487
A/R
10-Dec
A/R
46,000
Sales revenue
Cost of Goods Sold
15,950
Inventory
10-Dec
Cash
196,000

10-Dec
10-Dec
11-Dec

Jordan

11-Dec
11-Dec
12-Dec
12-Dec
12-Dec

13-Dec

13-Dec
14-Dec

14-Dec

15-Dec

17-Dec
17-Dec

Sales Discount
A/R
Inventory
A/P
Cash
A/R
Salaries Expense
FICA Payable
Federal Taxes Payable
State Taxes Payable
Cash
Payroll Tax Expense
FICA Payable
Misc. Expense
Cash
A/P
Cash
A/P
Cash
Cash
A/R
A/R
Sales Revenue
Cost of Goods Sold
Inventory
A/R
Sales Revenue
Cost of Goods Sold
Inventory
Cash
A/R
Cash
Sales Revenue
Cost of Goods Sold
Inventory
Cash
Sales Discount
A/R
A/R
Sales Revenue
Cost of Goods Sold
Inventory
Sales Allowance
A/R
Misc. Expense
Cash

4,000
33,000
30,000
4,860

350
600
7,200
37,719
22,000
90,000
36,250
40,000
13,000
27,120
94,000
30,550
45,080
920
140,000
45,500
8,000
512

18-Dec

18-Dec
19-Dec
19-Dec
19-Dec

20-Dec
20-Dec

21-Dec

21-Dec
21-Dec
24-Dec

26-Dec
26-Dec
26-Dec
27-Dec

27-Dec
27-Dec

Federal Withholding Taxes Pay

Fica Taxes Payable
Cash
A/P
Cash
Notes Receivable
A/R
Inventory
A/P
A/R
Sales Revenue
Cost of Goods Sold
Inventory
Office Supplies
Cash
Cash
Sales Discount
A/R
Equipment
Cash
A/P
Inventory
A/P
Misc. Expense
Cash
Salaries Expense
FICA Payable
Federal Taxes Payable
State Taxes Payable
Cash
Payroll Tax Expense
FICA Taxes Payable
Treasury Cost
Cash
Retained Earnings
Dividends Payable
Notes Receivable
A/R
Land
Common Stock
Add. Paid in Capital
Land
Cash
A/R
Sales revenue
Cost of Goods Sold

9,573
1,787
33,000
20,000
43,750
48,000
21,000
2,015
88,200
1,800
18,000

24,000
505
5,770

415
25,000
19,000
65,900
1,000,000

3,000
84,000
39,750

28-Dec
28-Dec
28-Dec
28-Dec
28-Dec

31-Dec
31-Dec
31-Dec
31-Dec

31-Dec
31-Dec

Inventory
Advertising Expense
Cash
Repairs Expense
Cash
Inventory
A/P
Other Assets
Cash
A/R
Sales Revenue
Cost of Goods Sold
Inventory
Cash
A/R
A/P
Cash
Misc. Expense
Cash
Cash
Depreciation Expense
Accumulated Depreciation-Spa
Loss on Disposal
Accumulated Depreciation
Space Ship
Petty Cash
Cash
Salaries Expense
FICA Payable
Federal Taxes Payable
State Taxes Payable
Cash
Payroll Tax Expense
FICA Taxes Payable

1,050
500
36,900
20,000
100,000
47,800
140,000
43,750
142
3,100
1,350
26,350
550

75
40,900

2,120

Adjusting Entries:
A.
B.
C.
D.

Bad Debt Expense

61,768
Allowance for Doubtful Accounts
Office Supplies Expense
3,922
Office Supplies
Insurance Expense
5,820
Prepaid Insurance
Salaries and Wages Expense
5,600
Payroll Tax Expense
390
FICA Taxes Payable
Federal Taxes Payable
State Taxes Payable

F.
G.

H.
I.
J.
K.
L.

FICA Taxes Payable

Salaries and Wages Payable
Interest Expense
5,085
Interest Payable
Interest Expense
2,111
Interest Payable
Discount on Bonds Payable
Interest Receivable
1,240
Interest Revenue
Interest Expense
1,500
Interest Payable
Rent Expense
6,400
Prepaid Rent
Utilities Expense
770
Accounts Payable
Depreciation Expense
33,661
Accumulated Depreciation - Building
Accumulated Depreciation - Space Sh
Accumulated Depreication - Equipmen

Closing Entries:
You will need to close all the
temporary accounts at the end
of the accounting year.

Sales Revenue
6,276,940
Interest Revenue
4,390
Gain on Disposal
Sales Discounts
Sales Returns and Allowances
Income Summary
Income Summary
5,387,529
Advertising Expense
Bad Debt Expense
Supplies Expense
Repairs Expense
Misc. Expense
Depreciation Expense
Insurance Expense
Salaries and Wages Expense
Rent Expense
Payroll Tax Expense
Utilities Expense
Interest Expense
Loss on Disposal of Assets
Income Tax Expense
Cost of Goods Sold
Income Summary
793,683
Retained Earnings
Totals
15,636,490

Credit
XXX

24,050
80,000
28,000
105,000
26,000
3,700
120,000
45,000

50,300
200,000
74,000
915
9,900
10,486

74,350
46,000
15,950

200,000
33,000
30,000
350
900
190
3,420
350
600
7,200
37,719
22,000
90,000
36,250
40,000
13,000
27,120
94,000
30,550

46,000
140,000
45,500
8,000
512

11,360
33,000
20,000
43,750
48,000
21,000
2,015

90,000
3,000
15,000
24,000
505
415
1,067
225
4,063
415
25,000
19,000
65,900
400,000
600,000
3,000
84,000

39,750
1,050
500
36,900
20,000
100,000
47,800
140,000
43,750
142

1,350
30,000
75
2,120
7,696
1,517
29,567
2,120

61,768
3,922
5,820

390
1,036
218

390
3,956
5,085
2,000
111
1,240
1,500
6,400
770
11,440
13,035
9,186

82,738
17,380
6,181,212
7,628
61,768
5,462
19,147
1,472
35,011
5,820
990,252
6,400
86,191
17,040
33,266
550
72,000
4,045,522
793,683
15,636,490

GENERAL LEDGER
Cash
249,930
23,569
49,294
72,863
196,000
30,000
22,000

27,120
94,000
45,080

88,200
3,100
140,000

Petty Cash
150
9,900
26,000
915
10,486
75
3,420
600
7,200
37,719
512
11,360
33,000
20,000
2,015
3,000
142
505
4,063
25,000
3,000
1,050
500
43,750
29,567

767,377

Interest Receivable
1,240

1,240

Note: All amounts in italics are beginning bala

75

225

Inventory
500,000
105,000
33,000
43,750
24,000
36,900

345,850

28,000
45,000
74,000
15,950
36,250
13,000
30,550
45,500
21,000
39,750
47,800

Other Assets (current)

145,000
20,000

165,000

Land
43,000
1,000,000
3,000

1,046,000

Accum. Depr. - Equipment

13,200
9,186

22,386

Space Ships
78,400

30,000

48,400

Salaries & Wages Payable

3,956

FICA Taxes Payable

1,787
1,787
350
350
415
415
2,120
2,120
390
390

3,956

6,550

FUTA Taxes Payable

SUTA Taxes Payable

400

2,600

400

2,600

Bonds Payable
275,000

275,000

Treasury Stock
42,610
25,000

Discount on Bonds Payable

6,400
111

6,289

Sales Revenue
5,234,940
80,000
120,000
200,000
46,000
90,000
40,000
94,000
140,000
48,000
84,000
100,000

67,610

6,276,940

Closing

6,276,940
Advertising Expense
6,578
1,050

7,628
Closing

Bad Debt Expense

61,768

61,768
7,628

Depreciation Expense
1,350
33,661

61,768
Insurance Expense
5,820

35,011
Closing

5,820
35,011

5,820
-

Utilities Expense
16,270
770

Interest Revenue
3,150
1,240

17,040
Closing

4,390
17,040

Income Tax Expense

72,000

72,000
Closing

72,000
-

4,390

are beginning balances at 12/1/2014

Accounts Receivable
317,420
24,050
80,000
3,700
120,000
50,300
200,000
74,350
84,000
22,000
46,000
27,120
90,000
46,000
100,000
20,000
140,000
90,000
48,000
65,900
40,000
8,000
200,000
30,000
140,000

Allowance for Doubtful Accounts

3,700
4,580
61,768

464,000

Supplies
2,320
2,015

413

62,648

3,922

Prepaid Insurance
11,020

5,200

5,820

Buildings
306,000

Accum. Depr. - Building

73,040
11,440

306,000

84,480

Accum. Depr. - Space Ships

26,350
39,540
1,350
13,035

Notes Payable (current)

15,000

27,575

15,000

Income Taxes Payable

-

Federal Withholding Taxes Payable

9,573
9,573
900
1,067
7,696
1,036

Interest Payable

10,699

Dividends Payable
5,085
1,500
2,000

19,000

8,585

19,000

Common Stock
190,000
400,000

Additional Paid-n Capital, Common

255,400
600,000

590,000

855,400

Sales Returns & Allowances

9,380
8,000

17,380

Sales Discounts
73,044
481
1,006
1,487
4,000
920
1,800

82,738
17,380

82,738
-

Supplies Expense
1,540
3,922

Repairs Expense
17,732
915
500

5,462

19,147
5,462

Salaries & Wages Expense

933,122
4,860
5,770
40,900
5,600

19,147
Rent Expense
6,400

990,252

6,400
990,252

6,400

Gain on Disposal of Assets

-

Interest Expense
24,570
5,085
2,111
1,500

33,266
33,266

T-Accounts Balance?

If zero, then T-Accounts Balance

If zero, then T-Accounts Balance

Post-closing T-Accounts balance?

Notes Receivable (current)

45,000
20,000
65,900

130,900

Prepaid Rent
25,410
6,400

19,010

Equipment
32,800
18,000

50,800

Accounts Payable
33,000
126,850
9,900
105,000
26,000
33,000
10,486
15,000
7,200
36,900
37,719
43,750
770
43,750
24,000
217,215

State Withholding Taxes Payable

2,486
190
225
1,517
218

4,636

Notes Payable (long-term)

113,000

113,000

Retained Earnings
19,000
330,788

311,788
793,396 Closing
1,105,184
Cost of Goods Sold
3,648,722
28,000
45,000
74,000
15,950
36,250
13,000
30,550
45,500
21,000
39,750
47,800

4,045,522
4,045,522
Miscellaneous Expense
600
512
505
142
1,759
1,759
Payroll Tax Expense
82,916
350
415
2,120
390

86,191
86,191
Loss on Disposal of Assets
550

550
550
-

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER

Bosk Co.
3,700

3,700

Princess Leia Co.

90,000
90,000

Wookie, Inc
200,000
200,000

C3PO Co.
22,000
22,000
50,300
50,300

R2D2 Computers
95,900
30,000
40,000
65,900
8,000

32,000

Note: All amounts in italic

Note: All amounts in italics are beginning balances at 12/1/2014

Endor Ltd.
27,120

27,120

Storm Troopers Unlimited

120,000
48,000

168,000

Total ending balance at 12/31/14

$
464,000

Jabba's Huts, Inc.

74,350
74,350

Vader Enterprises
80,000
140,000
140,000
100,000

180,000

Jango Fett, Inc.

24,050
24,050
46,000
###
84,000

84,000

Yoda, Inc.
20,000
20,000

ACCOUNTS PAYABLE SUBSIDIARY LEDGER

Calrisian's Components
105,000

105,000

Land Speeder, Inc.

33,000
33,000

Wamp Rat, Co.

10,486
10,486

Note: All amounts in italics are beg

Count Dooku Consulting

7,200
7,200

Naboo Utilities Co.

770

770

mounts in italics are beginning balances at 12/1/2014

Ewok Inc.
26,000
37,719

26,000
37,719

Greedo Inc.
9,900

9,900

Palpatine Computing Co.

15,000

15,000

Total ending balance at 12/31/14

217,215

Star Destroyer Repairs

Hyperspace Unlimited
36,900

36,900

Tattooine Ltd.
35,545
43,750
###
24,000

59,545

Beginning balances as of 12/1/14

Purchase Date
4/17 Beginning
6/1 Beginning
8/22 Beginning
10/1 Beginning
12/2 Purchase
12/10 Purchase
12/19 Purchase
12/21 Purchase
12/28 Purchase
Totals

Inventory
Inventory
Inventory
Inventory

12/1 Sale
12/3 Sale
12/6 Sale
12/10 Sale
12/12 Sale
12/13 Sale
12/14 Sale
12/15 Sale
12/19 Sale
12/27 Sale
12/28 Sale
Total units sold

# of Units
2,000
700
1,000
400
700
200
250
120
180
5,550

Cost per Unit

$
115
$
120
$
130
$
140
$
150
$
165
$
175
$
200
$
205

$
$
$
$
$
$
$
$
$
$

Total Cost
230,000
84,000
130,000
56,000
105,000
33,000
43,750
24,000
36,900
742,650

$
$
$
$
$
$
$
$
$
$

Total Cost
230,000
84,000
31,850
345,850

# of Units
200
300
500
115
225
100
235
350
120
210
250
2,605

Updated Inventory Totals (after sales)

Purchase Date
4/17 Beginning
6/1 Beginning
8/22 Beginning
10/1 Beginning
12/2 Purchase
12/10 Purchase
12/19 Purchase
12/21 Purchase
12/28 Purchase
Totals

Inventory
Inventory
Inventory
Inventory

# of Units
2,000
700
245
2,945

Cost per Unit

$
115
$
120
$
130
$
140
$
150
$
165
$
175
$
200
$
205

Cost of Goods Sold (Perpetual LIFO):

Date of Sale

12/1
12/3
12/6
12/6
12/10
12/10
12/12
12/12
12/13
12/14
12/15
12/19
12/27
12/27
12/28
12/28
12/28

Units Sold:
Cost per Unit: Total Cost
200 $
140 $ 28,000
300 $
150 $ 45,000
400 $
150 $ 60,000
100 $
140 $ 14,000
100 $
140 $ 14,000
15 $
130 $
1,950
200 $
165 $ 33,000
25 $
130 $
3,250
100 $
130 $ 13,000
235 $
130 $ 30,550
350 $
130 $ 45,500
120 $
175 $ 21,000
120 $
200 $ 24,000
90 $
175 $ 15,750
180 $
205 $ 36,900
40 $
175 $
7,000
30 $
130 $
3,900
Total COGS $ 396,800
2,605

Balanced? (if 0 or -)

Star Wars, Inc

Trial Balance
December 31, 2014

REV.EQUITY
G EXPENSES

LIABILITIES

ASSETS

Accounts:
Cash
Petty Cash
Accounts Receivable
Allowance for Doubtful Accounts
Notes Receivable (current)
Interest Receivable
Inventory
Supplies
Prepaid Insurance
Prepaid Rent
Other Assets (current)
Land
Buildings
Accumulated Depreciation - Buildings
Equipment
Accumulated Depreciation - Equipment
Space Ships
Accumulated Depreciation - Space Ships
Notes Payable (current)
Accounts Payable
Salaries & Wages Payable
FICA Taxes Payable
Income Taxes Payable
Federal Withholding Taxes Payable
State Withholding Taxes Payable
FUTA Taxes Payable
SUTA Taxes Payable
Interest Payable
Dividends Payable
Notes Payable (long-term)
Bonds Payable
Discount on Bonds Payable
Common Stock
Additional Paid-in Capital, Common
Retained Earnings
Treasury Stock
Sales Revenue
Sales Returns & Allowances
Sales Discounts
Cost of Goods Sold
Advertising Expense
Bad Debt Expense

Debit

Credit

767,377
225
464,000
62,648
130,900
1,240
345,850
413
5,200
19,010
165,000
1,046,000
306,000
84,480
50,800
22,386
48,400
27,575
15,000
217,215
3,956
6,550
10,699
4,636
400
2,600
8,585
19,000
113,000
275,000
6,289
590,000
855,400
311,788
67,610
6,276,940
17,380
82,738
4,045,522
7,628
61,768

OPERATING EXPENSE

Other Rev/Exp

Supplies Expense
Repairs Expense
Miscellaneous Expense
Depreciation Expense
Insurance Expense
Salaries & Wages Expense
Rent Expense
Payroll Tax Expense
Utilities Expense
Interest Revenue

5,462
19,147
1,759
35,011
5,820
990,252
6,400
86,191
17,040
4,390

Gain on Disposal of Fixed Assets

Interest Expense

33,266

Loss on Disposal of Fixed Assets

Income Tax Expense

550
72,000

Totals

8,912,248

8,912,248

Please Create An Income Statement, Statement of Stockholders' Equity and Balance Sheet
NOTE: You need to fill in the GREY areas with the correct numbers (use the ending balances sheet).

Star Wars, Inc.

Income Statement
For the Year Ended December 31, 2014
Sales Revenue
Less: Sales Discounts
Sales Returns & Allowances
Net Sales Revenue

$
$
$

Balance, 1/1/2014

6,276,940
(82,738)
(17,380)
6,176,822

Stock Issuance
Dividends Declared
Stock Repurchase

Cost of Goods Sold

4,045,522

Gross Margin

2,131,300

Net Income
Balance, 12/31/2014
Operating Expenses:

Salaries & Wages Expense

Utilities Expense

990,252
17,040
7,628
5,462
5,820
19,147
86,191
6,400
61,768
35,011
1,759
1,236,478

Advertising Expense
Supplies Expense

Insurance Expense
Repairs Expense
Payroll Tax Expense
Rent Expense
Bad Debt Expense
Depreciation Expense
Miscellaneous Expense
Total Operating Expenses

Assets:
Current Assets

894,822

Operating Margin
Other Income and (Expenses):

Interest Revenue
Loss on Disposal
Interest Expense

4,390
(550)
(33,266)

Income Before Taxes

865,396

Income Tax Expense

72,000

Gain on Disposal

Net Income

793,396

Property, Plant, and Equipment

Total Assets
Liabilities:
Current Liabilities

Long-term Liabilities

Equity:
Contributed Capital

Retained Earnings

Less: Treasury Stock

Total Liabilities and Equity

d Balance Sheet in Good Form

use the ending balances sheet).
Star Wars, Inc.
Statement of Stockholders' Equity
For the Year Ended December 31, 2014
Common Stock
Balance, 1/1/2014

Stock Issuance

APIC

Retained Earnings

190,000 $

255,400 $

400,000

600,000

330,788

(19,000)

Dividends Declared
Stock Repurchase

793,396

Net Income
Balance, 12/31/2014

590,000 $

855,400 $

1,105,184

Star Wars, Inc.

Balance Sheet
December 31, 2014
Assets:
Current Assets

Cash (including petty cash)

Accounts Receivable (Net of Allowance)
Notes Receivable (current)
Interest Receivable
Inventory
Supplies
Prepaid Insurance
Prepaid Rent
Other Assets (current)
Total Current Assets
Property, Plant, and Equipment

Land
Space Ships
Less: Accum. Depr. - Space Ships
Equipment
Less: Accum. Depr. - Equipment
Buildings
Less: Accum. Depr. - Buildings
Property, Plant, and Equipment, net

767,602
401,352
130,900
1,240
345,850
413
5,200
19,010
165,000
$

1,836,567

1,046,000
48,400
(27,575)
50,800
(22,386)
306,000
(84,480)
1,316,759

Total Assets

3,153,326

288,641

Liabilities:
Current Liabilities

Notes Payable (current)

Accounts Payable
Salaries & Wages Payable
FICA Taxes Payable
Income Taxes Payable
Federal Withholding Taxes Payable
State Withholding Taxes Payable
FUTA Taxes Payable
SUTA Taxes Payable
Interest Payable
Dividends Payable

15,000
217,215
3,956
6,550
10,699
4,636
400
2,600
8,585
19,000

Total Current Liabilities

Long-term Liabilities

Notes Payable (long-term)

Bonds Payable
Less: Discount on Bonds Payable

113,000
275,000
(6,289)
670,352

Total Liabilities
Equity:
Contributed Capital

Common Stock
Additional Paid-in Capital

590,000
855,400

Retained Earnings

Retained Earnings
Less: Treasury Stock
Treasury Stock

1,105,184

Total Equity

Total Liabilities and Equity

Balance? (0=yes)

(67,610)
2,482,974

3,153,326

y
014
Treasury Stock

(42,610) $

Total

733,578
1,000,000
(19,000)

(67610

793,396

(42,610) $ 2,507,974

Remember to net the A/R account and the Allowance

Account!!

Enter Accumulated Depreciation as a Negative

Enter Accumulated Depreciation as a Negative
Enter Accumulated Depreciation as a Negative

Star Wars, Inc

Post Closing Trial Balance
December 31, 2014

REV.EQUITY
G EXPENSES

LIABILITIES

ASSETS

Accounts:
Cash
Petty Cash
Accounts Receivable
Allowance for Doubtful Accounts
Notes Receivable (current)
Interest Receivable
Inventory
Supplies
Prepaid Insurance
Prepaid Rent
Other Assets (current)
Land
Buildings
Accumulated Depreciation - Buildings
Equipment
Accumulated Depreciation - Equipment
Space Ships
Accumulated Depreciation - Space Ships
Notes Payable (current)
Accounts Payable
Salaries & Wages Payable
FICA Taxes Payable
Income Taxes Payable
Federal Withholding Taxes Payable
State Withholding Taxes Payable
FUTA Taxes Payable
SUTA Taxes Payable
Interest Payable
Dividends Payable
Notes Payable (long-term)
Bonds Payable
Discount on Bonds Payable
Common Stock
Additional Paid-in Capital, Common
Retained Earnings
Treasury Stock
Sales Revenue
Sales Returns & Allowances
Sales Discounts
Cost of Goods Sold
Advertising Expense
Bad Debt Expense

Debit

Credit

767,377
225
464,000
62,648
130,900
1,240
345,850
413
5,200
19,010
165,000
1,046,000
306,000
84,480
50,800
22,386
48,400
27,575
15,000
217,215
3,956
6,550
10,699
4,636
400
2,600
8,585
19,000
113,000
275,000
6,289
590,000
855,400
1,105,184
67,610
-

OPERATING EXPENSE

Other Rev/Exp

Supplies Expense
Repairs Expense
Miscellaneous Expense
Depreciation Expense
Insurance Expense
Salaries & Wages Expense
Rent Expense

Payroll Tax Expense

Utilities Expense
Interest Revenue

Gain on Disposal of Fixed Assets

Interest Expense

Loss on Disposal of Fixed Assets

Income Tax Expense

Totals

3,424,314

3,424,314