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Case - Forest City Tennis Club
Accounting and Business Analysis (The University of Western Ontario)
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Forest City Tennis Club - Pro Shop and Bar Lounge
General Ledger
[1] Cash
Common Shares
100,000
100,000
[2] Inventory
Cash
16,340
[3] Liquor Inventory
Cash
13,660
[4] Fixtures
Cash
11,000
16,340
13,660
11,000
[5] Glassware
Cash
4,000
4,000
[6] Cash
Pro Shop Sales
53,700
[7] Cash
Match Revenues
22,650
[8] Cash
Instruction Revenues
45,600
[9] Cash
Liquor Sales
64,550
53,700
22,650
45,600
64,550
[10] Cash
Other Revenue
3,050
3,050
[11] Rent Expense
Prepaid Rent
Cash
Rent Expense:1,500*12=18,000
Prepaid Rent: 19,500-18,000=1,500
[12] Fixtures
Cash
[13] Inventory
Cash
18,000
1,500
19,500
8,400
8,400
26,650
26,650
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[14] Liquor Inventory
Cash
14,400
[15] Wages Expense
Cash
24,000+27,500=51,500
51,500
[16] Salaries Expense
Cash
52,000
14,400
51,500
52,000
[17] Fixtures
Accounts Payable
4,200
[18] Inventory
Accounts Payable
2,000
4,200
2,000
[19] Liquor Sales
Unearned Liquor Revenue
650
650
[20] Amortization Expense
Accumulated Amortization - Fixtures
11,000/5=2,200
[21] Amortization Expense
Accumulated Amortization - New Fixtures
(8,400+4,200)/8*(1/12)=131
[22] Amortization Expense
Accumulated Amortization - Glassware
4,000/2=2,000
[23] Accounts Receivable
Instruction Revenues
(606*100)-45,600=15,000
2,200
2,200
131
131
2,000
2,000
15,000
15,000
[24] Accounts Receivable
Match Revenues
4*150=600
600
600
[25] Inventory Cost of Goods Sold
Inventory
(16,340+26,650+2,000)-17,880=27,110
27,110
[26] Liquor Cost of Goods Sold
Liquor
16,140
27,110
16,140
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(13,660+14,400)-11,920=16,140
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ASSETS
CASH
100000 [1]
[2]
[3]
[4]
[5]
16340
13660
11000
4000
53700 [6]
22650 [7]
45600 [8]
64550 [9]
3050 [10]
[11]
[12]
[13]
[14]
[15]
[16]
LIABILITIES & OWNER'S EQUITY
PREPAID RENT
1500 [11]
1500 E/B
19500
8400
26650
14400
51500
52000
LIQUOR INV
13660 [3]
14400 [14]
28060 T/B
COGS [26]
16140
11920 E/B
FIXTURES
11000 [4]
8400 [12]
4200 [17]
23600 E/B
A/A-FIXTURES
[20]
2200
[21]
131
E/B
2331
A/R
15000 [23]
600 [24]
15600 E/B
GLASSWARE
4000 [5]
4000 E/B
INVENTORY
16340 [2]
26650 [13]
2000 [18]
44990 T/B
COGS [25]
27110
17880 E/B
A/A-GLASSWARE
[22]
2000
E/B
2000
A/P
[17]
[18]
E/B
4200
2000
6200
UNEARNED REVENUE
TAXES PAYABLE
[19]
650 C3
10626
E/B
650 E/B
10626
COMMON SHARES
[1]
100000
E/B
100000
RETAINED EARNINGS
C5
24793
E/B
24793
PRO SHOP
[6]
53700
53700 C1
INSTRUCTION
LIQUOR
[8]
45600 [9]
64550
[23]
15000
650 [19]
T/B
60600 T/B
63900
60600 C1
63900 C1
72100 E/B
EXPENSES
RENT
18000 [11]
C2
WAGES
51500 [15]
18000
C2
27110
LIQUOR COGS
16140 [26]
C2
16140
COGS
27110 [25]
C2
51500
REVENUES
SALARIES
52000 [16]
C2
52000
TAXES
10626 C3
C4
AMORTIZATION
2200 [20]
131 [21]
2000 [22]
4331 T/B
C2
4331
MATCH
10626
[7]
[24]
T/B
OTHER
22650
600
23250
23250 C1
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[10]
3050
3050 C1
INCOME SUMMARY
C1
204500
169081 C2
T/B
35419
10626 C4
T/B
24793
24793 C5
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CLOSING ENTRIES
C1 Pro Shop Revenue
Instruction Revenue
Liquor Revenue
Match Revenue
Other Revenue
Income Summary
53,700
60,600
63,900
23,250
3,050
204,500
C2 Income Summary
Amortization
COGS
Liquor COGS
Rent
Salaries
Wages
169,081
C3 Taxes Expense
Taxes Payable
10,626
C4 Income Summary
Taxes Expense
10,626
C5 Income Summary
Retained Earnings
24,793
4,331
27,110
16,140
18,000
52,000
51,500
10,626
10,626
24,793
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Forest City Tennis Club - Pro Shop and Bar Lounge
Trial Balance
As At June 30, 2008
Cash
Accounts Receivable
Prepaid Rent
Liquor Inventory
Inventory
Fixtures
A/A-Fixtures
Glassware
A/A-Glassware
Accounts Payable
Unearned Revenue
Taxes Payable
Common Shares
Retained Earnings
Total:
$
72,100
15,600
1,500
11,920
17,880
23,600
$
2,331
4,000
146,600
2,000
6,200
650
10,626
100,000
24,793
146,600
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Forest City Tennis Club - Pro Shop and Bar Lounge
Income Statement
For the Year Ended June 30, 2008
Revenues
Pro Shop Revenue
Instruction Revenue
Liquor Revenue
Match Revenue
Other Revenue
Total Revenue
COGS
Liquor COGS
Gross Margin
Operating Expenses
Amortization
Rent
Salaries
Wages
Total Operating Expenses
Net Income Before Tax
Income Tax Expense
Net Income
53,700
60,600
63,900
23,250
3,050
204,500
27,110
16,140
43,250
161,250
4,331
18,000
52,000
51,500
125,831
35,419
10,626
24,793
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Forest City Tennis Club - Pro Shop and Bar Lounge
Balance Sheet
As At June 30, 2008
Assets
Current Assets
Cash
Accounts Receivable
Prepaid Rent
Pro Shop Inventory
Liquor Inventory
Total Current Assets
$
72,100
15,600
1,500
17,880
11,920
$
Fixed Assets
Fixtures
A/A-Fixtures
Glassware
A/A-Glassware
Total Fixed Assets
$
$
23,600
2,331
4,000
2,000
Total Assets
119,000
21,269
$
2,000
23,269
$
142,269
$
17,476
Liabilities & Shareholder's Equity
Current Liabilities
Accounts Payable
Unearned Revenue
Taxes Payable
Total Current Liabilities
$
Shareholder's Equity
Common Shares
Retained Earnings
Total Shareholder's Equity
$
6,200
650
10,626
100,000
24,793
124,793
Total Liabilities & Shareholder's Equity
$
142,269
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