WAREN SPORTS SUPPLY
POST-CLOSING TRIAL BALANCE
December 31, 2017
ACCT. NO.
ACCOUNT TITLE
DEBIT
CREDIT
ASSETS
10100
10200
10300
10400
10600
10800
10900
Cash
Accounts receivable
Allowance for doubtful accounts
Inventory
Marketable securities
Fixed assets
Accumulated depreciation
93,304.29
48,149.00
4,909.27
191,967.00
24,000.00
331,731.40
116,583.14
LIABILITIES
20100
20300
20400
20500
20600
20700
20900
21000
Accounts payable
Federal income taxes withheld
State unemployment taxes payable
Federal unemployment taxes payable
F.I.C.A. taxes payable
Federal income taxes payable
Interest payable
Notes payable
7,952.01
1,450.00
110.44
18.67
2,229.32
53,655.53
106.85
60,000.00
STOCKHOLDERS' EQUITY
26000
29000
Common stock
Retained earnings
225,000.00
216,970.07
TOTALS
$689,151.69
$688,985.30
WAREN SPORTS SUPPLY, YEAR-END WORKSHEET, DECEMBER 31, 2017
TRANSACTIONS LIST A
(Accounts with no activity in this worksheet are excluded in this solution.)
12/31/2016
ACCT
ACCOUNT
POST CLOSING
NO.
TITLE
TRIAL BALANCE
DEBIT
CREDIT
10100
10200
10300
10400
10600
10800
10900
ASSETS
Cash
Accounts receivable
Allowance for doubtful accounts
Inventory
Marketable securities
Fixed assets
Accumulated depreciation
20100
20300
20400
20500
20600
20700
20900
21000
LIABILITIES
Accounts payable
Federal income taxes withheld
State unemployment taxes payable
Federal unemployment taxes payable
F.I.C.A. taxes payable
Federal incomes taxes payable
Interest payable
Notes payable
26000
29000
STOCKHOLDERS' EQUITY
Common stock
Retained earnings
30100
30200
30300
30400
30500
30600
30700
30800
31200
REVENUE AND GROSS PROFIT
Sales
Sales returns and allowances
Sales discounts taken
Cost of goods sold
Purchases
Purchases returns and allowances
Purchases discounts taken
Freight-in
Miscellaneous revenue
40100
40200
40300
40400
40500
40600
40700
40800
40900
41000
EXPENSES
Rent expense
Advertising expense
Office supplies expense
Depreciation expense
Wages and salaries expense
Payroll tax expense
Federal income tax expense
Interest expense
Bad debt expense
Other operating expense
Sub-totals
Net Income (Loss)
TOTALS
11,025.19
11,065.00
3,250.81
101,681.00
320,665.00
Student Name________________________________________________
Instructor_______________________Date Due_________________
12/31/2017
UNADJUSTED
TRIAL BALANCE
DEBIT
CREDIT
93,304.29
48,149.00
1,149.19
101,681.00
24,000.00
331,731.40
YEAR-END ADJUSTMENTS
ID #
DEBIT
ID #
CREDIT
ADJUSTED
TRIAL BALANCE
DEBIT
90,286.00
81,559.50
11,279.35
1,326.76
281.17
83.31
1,593.30
29,797.00
7,952.01
1,450.00
110.44
18.67
2,229.32
CREDIT
DEBIT
35,023.64
CREDIT
93,304.29
48,149.00
4,909.27
4,909.27
191,967.00
24,000.00
331,731.40
116,583.14
116,583.14
60,000.00
7,952.01
1,450.00
110.44
18.67
2,229.32
53,655.53
106.85
60,000.00
7,952.01
1,450.00
110.44
18.67
2,229.32
53,655.53
106.85
60,000.00
225,000.00
90,264.99
225,000.00
90,264.99
225,000.00
90,264.99
53,655.53
106.85
1,590,883.00
1,590,883.00
1,026,379.96
1,128,159.00
1,128,159.00
19,445.00
16,554.48
61,106.00
15,405.82
1,026,379.96
0.00
19,445.00
16,554.48
24,506.44
1,590,883.00
61,106.00
15,405.82
1,026,379.96
0.00
0.00
0.00
24,506.44
0.00
825.00
0.00
0.00
0.00
825.00
57,600.00
22,275.00
5,664.91
35,023.64
140,663.35
11,611.26
53,821.92
106.85
6,058.46
29,285.75
----------------2,096,292.41
DEBIT
191,967.00
24,000.00
331,731.40
61,106.00
15,405.82
----------------- ----------------444,436.19 444,436.19
CREDIT
BALANCE
SHEET
93,304.29
48,149.00
6,058.46
81,559.50
225,000.00
90,264.99
INCOME
STATEMENT
----------------- -------- ----------------- -------- ----------------2,096,292.41
1,247,676.31
1,247,509.92
57,600.00
22,275.00
5,664.91
35,023.64
140,663.35
11,611.26
53,821.92
106.85
6,058.46
29,285.75
----------------2,154,154.61
825.00
57,600.00
22,275.00
5,664.91
35,023.64
140,663.35
11,611.26
53,821.92
106.85
6,058.46
29,285.75
----------------2,153,988.22
1,465,002.92
126,705.08
1,591,708.00
1,591,708.00
689,151.69
1,591,708.00
689,151.69
562,280.22
126,705.08
688,985.30
WAREN SPORTS SUPPLY
BALANCE SHEET
AT DECEMBER 31, 2017 AND 2016
ASSETS
2017
2016
CURRENT ASSETS
Cash
Accounts receivable - net
Inventory
Marketable securities
Total current assets
$93,304.29
43,239.73
191,967.00
24,000.00
352,511.02
$11,025.19
7,814.19
101,681.00
0.00
120,520.38
FIXED ASSETS - Net of
accumulated depreciation
215,148.26
239,105.50
$567,659.28
$359,625.88
Total assets
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable
Payroll taxes withheld
and payable
Federal income taxes payable
Interest payable
Total current liabilities
$7,952.01
$11,279.35
3,808.43
53,655.53
106.85
65,522.82
3,284.54
29,797.00
0.00
44,360.89
NOTE PAYABLE
Total liabilities
60,000.00
125,522.82
0.00
44,360.89
STOCKHOLDERS' EQUITY
Common stock
Retained earnings
Total stockholders' equity
225,000.00
216,970.07
441,970.07
225,000.00
90,264.99
315,264.99
Total liabilities and
stockholders' equity
$567,492.89
$359,625.88
WAREN SPORTS SUPPLY
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2017
REVENUE
Sales
Less: Sales returns and allowances
Sales discounts taken
Net sales
COST OF GOODS SOLD
Beginning inventory
Net purchases
Freight-in
Goods available for sale
Less: Ending inventory
Cost of goods sold
$1,590,883.00
61,106.00
15,405.82
1,514,371.18
101,681.00
1,092,159.52
24,506.44
1,218,346.96
191,967.00
1,026,379.96
GROSS MARGIN
OPERATING EXPENSES
Rent expense
Advertising expense
Office supplies expense
Depreciation expense
Wages and salaries
Payroll taxes
Bad debt expense
Other operating expense
Total operating expenses
Operating income
487,991.22
57,600.00
22,275.00
5,664.91
35,023.64
140,663.35
11,611.26
6,058.46
29,285.75
308,182.37
179,808.85
OTHER INCOME - Miscellaneous income
825.00
OTHER EXPENSE - Interest expense
106.85
INCOME BEFORE TAXES
180,527.00
FEDERAL INCOME TAXES
53,821.92
NET INCOME
RETAINED EARNINGS - Beginning of year
RETAINED EARNINGS - End of year
126,705.08
90,264.99
$216,970.07
WAREN SPORTS SUPPLY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
Adjustments to reconcile net income to net cash
from operating activities
Depreciation
(Increase) decrease in assets:
Accounts receivable
Inventory
Increase (decrease) in liabilities:
Accounts payable
Payroll taxes withheld and payable
Income taxes payable
Interest payable
Net cash provided by operating activities
$126,705.08
35,023.64
(35,425.54)
(90,286.00)
(3,327.34)
523.89
23,858.53
106.85
57,179.11
CASH FLOWS FROM INVESTING ACTIVITIES
Cash payments for fixed assets
Purchase of marketable securities
Net cash used in investing activities
(11,066.40)
(24,000.00)
(35,066.40)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from loans
60,000.00
NET INCREASE IN CASH
82,112.71
CASH - Beginning of year
11,025.19
CASH - End of year
$93,137.90