*Enter your name, access code, and CRN below and then click the Activate button.

This file is NOT to be shared with any person as it is specifically linked with your name. Date: Name: Access Code: CRN: 8/29/2012 Renee 2012300276 30108

ACTIVATE

Davenport University ACCT202 Practice Set

Ver. 5.1, 2011-12
Summer 2012

Activation was successful. *Click the following buttons to go to the corresponding worksheets:

Instructions
Academic Integrity Products

Sales Journal
Purchases Journal Cash Receipts Journal

General Ledger
A/R Sub-Ledger A/P Sub-Ledger

Cash Payments Journal

Chart of Accounts - GL General Journal Pg 1 Chart of Accounts - AR Chart of Accounts - AP General Journal Pg 2 General Journal Pg 3

Worksheet Inventory Control Card Transactions

Login Date 8/29/2012

Student Name Renee

Access Code Number 2012300276

Course CRN 30108

Login Date 6/14/2012

Company Background & Scenario

The AC Speed Company is a well-established, publicly-held corporation, operating as a wholesaler in the auto parts industry. Specifically, AC Speed purchases auto parts from manufacturers and sells them to large business customers. Most purchases and sales are on account, with trade credit terms (specified below). Youre a Davenport University student pursuing a bachelors degree in business and employed at the AC Speed Company this semester as an intern. Youve worked in various departments and on several projects so far, learning a lot about the companys business operations. Management seems impressed with your enthusiasm and the quality of your work. The companys accountant has just been called away for a family emergency and will likely be absent for a month or so. The General Manager asks you to take over the accountants regular duties on an interim basis. Youre nervous about doing so, but are confident that what youve learned in accounting class, plus your personal problem-solving skills, will make this a successful experience. What a great learning opportunity, not to mention an enhancement to your resume!

Main Menu

Project Overview & Instructions

A. Overview a. Part 1 is a financial accounting activity that requires you to record various business transactions during the month, close the accounting records at the end of the month, and prepare the financial statements. These tasks relate to the steps in the accounting cycle that you learned in your first accounting course.` b. Part 2 is an activity that requires you to analyze the companys year-end financial statements to assist management in assessing the companys position and making decisions about its future direction. c. This is an individual, not a team, project. While you may discuss this project with others, you must prepare and submit your own work. Refer to the Academic Integrity Statement in the project workbook. d. Before starting work, review the entire project: all instructions, business transactions descriptions, workbook sections, check figures, due dates, and submission requirements. B. General Instructions a. The parts of this project, including specific business transactions and steps in the accounting cycle, must be completed in sequence. This is particularly important with business transactions relating to purchases and sales of inventory. b. As you work on parts of the project, you will note references to pages or sections of your accounting textbooks that will provide examples or explanations related to that task. You are also encouraged to use your textbooks table of contents (front) or index (back) to locate helpful references. c. These project instructions will not address every detail of every task. If you have questions, ask your instructor. d. Most of your work for this project will be accomplished in Excel. A basic skill level in this application is expected. That is, you should be able to such things as move around in a workbook, enter data in cells, use the sum function, compose basic formulas, and save your work. e. If rounding is required, round to the nearest cent. For example, $96.835 would be entered as $96.84. f. Use the check figures provided to check your work as you progress through the project. Investigate any discrepancies and correct them as you go along. g. Refer to the project rubric to determine how components of the project will be assessed. h. Appearance counts! Pay attention to the format, to spelling, and to other details of appearance. This reflects on managements perception of you as a professional. C. Submission Requirements a. Final submission of all parts of this project must be in electronic (not paper) form. That is, you will submit your completed work via an assignment link in a Blackboard course site or via an email attachment. Follow your instructors directions. b. Save backup copies of your work. If you have multiple versions of the project, clearly label them for your own reference and to ensure that you submit the appropriate version to your instructor. c. You must read the academic integrity statement in the project workbook and enter your student ID number on the form to signify your agreement with and adherence to that statement. Final project submissions will not be accepted without this. d. Due dates for the parts of this project will be provided by your instructor in the course syllabus, in the Blackboard course site, or in a designated handout. Be sure to enter these on your personal calendar and plan your work on this project accordingly. D. Credit Terms & Inventory Accounting a. When AC Speed purchases merchandise from a supplier or vendor on account, they receive credit terms of 3/10, net 30. b. When AC Speed sells merchandise to a customer on account, they offer that customer credit terms of 3/10, net 45. c. AC Speed accounts for the specific types of merchandise in their inventory with a set of subsidiary ledgers (inventory control cards). The balances in these subsidiary ledger records, in total, must equal the balance in the Merchandise Inventory account in the general ledger. d. AC Speed uses a perpetual inventory accounting system and a first-in, first-out (FIFO) inventory costing method. e. Subsidiary ledger records are kept for each customer and for each vendor. The balances in the customer subsidiary ledger records, in total, must equal the Accounts Receivable account balance in the general ledger. The balances in the vendor subsidiary ledger records, in total, must equal the Accounts Payable account balance in the general ledger. E. Financial Accounting Steps: a. Record each business transaction, in sequence by date, in the appropriate special journal or the general journal. Also, immediately record any transaction involving inventory, a customer, or a vendor in the appropriate subsidiary ledger record. b. At the end of the month, post each entry in the general journal to the general ledger. c. At the end of the month, total each column in each special journal and post that total to the general ledger. EXCEPT for entries in the Other columns, which must be posted individually to the general ledger. d. When posting is completed, bring the balance in each general ledger account up to date. e. When posting is completed, bring the balance in each subsidiary ledger account up to date. f. At this point in the closing process, the balances of all subsidiary ledger accounts would be totaled and that total compared to the balance of the corresponding control account in the general ledger. That is, the total of inventory control cards would be compared to the Merchandise Inventory balance; the customer subsidiary ledger total to the Accounts Receivable balance; and the vendor subsidiary ledger total to the Accounts Payable balance. Any discrepancies would be investigated and corrected. Given the limited scope of this project scenario, reconciliation between subsidiary ledgers and control accounts is not possible. g. List all general ledger account balances in the unadjusted trial balance columns of the worksheet. Use the sum function in Excel to total the debit and credit columns. These totals should be equal. h. Prepare the end-of-month adjusting entries. Record these entries in the general journal and post them to the general ledger. Also record the adjusting entries in the designated columns in the worksheet and total the debit and credit columns. These totals should be equal. i. Update general ledger account balances after posting adjusting journal entries. j. Complete the unadjusted trial balance columns on the worksheet. Use Excel formulas to carry balances from the unadjusted trial balance columns, adjusting as necessary by entries in the adjustments columns. Check your results against the balances recorded in the general ledger. k. Sort the dollars recorded in the adjusted trial balance columns into either the income statement or the balance sheet columns. Total these columns. The entry of net income should cause the debit and credit columns to equal one another. l. Use the income statement information on the worksheet to prepare a multi-step income statement in good form. Look at examples of this income statement format in your textbook, such as the one on page 220. m. Prepare a statement of retained earnings in good form. Look at examples of this statement in your textbook. Remember that net income from your just-completed income statement is a necessary component of this statement. n. Use the balance sheet information on the worksheet to prepare a classified balance sheet, similar in format to the example on page 711. Remember that the ending retained earnings balance from the just-completed statement is a necessary component of the equity section of the balance sheet. o. Prepare the end-of-month closing entries. Record these entries in the general journal and post them to the general ledger. Update balances in the general ledger accounts. p. List the general ledger accounts that have balances other than zero on the post-closing trial balance. The totals of the debit column and the credit column should be equal. F. Part 2 of this project requires you to analyze the companys year-end financial statements to assist the management of AC Speed in assessing the companys financial position and making decisions about its future direction. a. Before beginning this part of the project, you will find it helpful to review Chapter 18 on financial statement analysis. Page 809, a summary of ratios, will be particularly useful. b. Tabs in the project workbook provide trial balance data for the current and two preceding years for AC Speed and a location to calculation a selection of ratios. Use the trial balance data and the formulas in Chapter 18 to compute the ratios listed for each of the three years. YOU MUST STRUCTURE YOUR RATIO CALCULATIONS AS FORMULAS AND LINKS TO APPROPRIATE CELLS ON THE TRIAL BALANCE TAB. You will lose points by simply typing the final ratio numbers or percentages. c. After you calculate the ratios, consider whether there is a trend over the three-year period. Also compare the ratios you calculated for AC Speed with those listed as industry averages. Review the information in Chapter 18 to help you determine what the ratios are telling you about various aspects of AC Speeds business operations. d. Use Word to prepare a memo (minimum 500 words) to AC Speeds general manager, addressing the three questions listed at the bottom of the ratios tab. This should be formatted as a business memo, not an APA paper. Be sure to include a brief introduction and conclusion in the memo. Each question should be addressed in one or two paragraphs in the body of the memo. Remember that the general manager will expect details/facts/ratios to support statements you may make about the status of the business. Your writing should be concise, clear, and readable, with a fairly formal tone (since its addressed to AC Speeds general manager, who is likely to share it with other members of management). Your instructor will provide the due date and submission requirements for this part of the project.

Academic Integrity Statement

Project Academic Integrity Statement

I understand that this is an individual, not a team, project; that I am expected to do my own work on the project. I may discuss project requirements in general terms with others, but I am not permitted to collaborate with anyone or copy anyone's work, manually or electronically, in full or in part. I also understand that I am not permitted to supply anyone with the results of my work or with information or assistance that compromises another student's completion of the project through his or her own efforts. If I have any questions about these requirements, I will promptly ask my instrucor for clarification. I understand that any violation of this project academic integrity statement will lead, at minimum, to a failing grade for the project. By entering my name and student ID number below, I am attesting that I have read, understood, and will personally adhere to this project academic integrity statement.

Student Name

Student ID Number

Date

Main Menu

JULY JOURNAL TRANSACTIONS

1-Jul Issued 8,200 shares of common stock for $11 per share (Refer to Chart of Accounts GL for description of common stock). 1-Jul Signed a two year 14%, $216,000 note payable with Fifth Third Bank. 1-Jul Sold 1500 speakers on account to GM for $112 each, Invoice #2301 1-Jul Purchased 2800 rearview mirrors on credit from Gentex for $45 each. 2-Jul Rented idle warehouse space to a new tenant and received $15,000 for three months rent. (July - October) 2-Jul Sold 250 rearview mirrors on account to Honda for $105 each, Invoice #2302 3-Jul Purchased 3450 speakers on credit from Bose for $72 each. 3-Jul Sold 1300 GPS units on account to Toyota for $65 each, Invoice #2303 4-Jul 60 defective speakers were returned from GM. A credit was issued to the customer. 5-Jul The 60 defective speakers were returned to Bose. 6-Jul Paid $650 for equipment repair. Check # 7000 7-Jul Reimbursed employees for entertainment expenses totaling $300. Check # 7001 8-Jul Paid June utility bill of $1850. Check # 7002 8-Jul Purchased office supplies from Staples on credit for $700. 11-Jul Paid in full for the July 1 purchase from Gentex. Check # 7003 11-Jul Received payment from GM on remaining balance for July 1st sale 12-Jul The Board of Directors declared a cash dividend of $0.50 per share for shareholders of record on July 14th, payable on July 20th. 12-Jul Purchased 3100 GPS units from Garmin for $28 each on credit. 12-Jul Received payment in full from Honda for July 2nd sale. 13-Jul Paid in full for the July 3rd purchase from Bose, Check # 7004 13-Jul Received payment in full from Toyota for July 3nd sale 15-Jul Check # 7005 was issued for payroll: $23,750 for salaries and $1,925 for wages 17-Jul Bought new Office Furniture for $15,600. Furniture use begins in August. Check # 7006 19-Jul 1550 GPS units purchased on July 12th from Garmin were found to be the wrong model. All 1550 units were returned. 19-Jul Paid $1400 bill for phone survey performed by marketing consultant, Check # 7007 20-Jul Received $122,500 from Ford for June 5th sales. 20-Jul Paid $21,000 mortgage payment to Fifth Third Bank ($6,000 principal and $15,000 interest), Check # 7008.

20-Jul Paid the dividend that was declared on July 12, Check # 7009 22-Jul Paid the remaining balance on the purchase from Garmin on July 12th. Check #7010 23-Jul General Motors declared bankruptcy. $10,000 receivable from General Motors was written off . 25-Jul Received $119,050 payment from Toyota for sale on June 11th. 26-Jul Purchased 800 shares of Treasury Stock for $15 per share, Check # 7011 (cost method) 26-Jul Sold 425 speakers to Honda for $114 each, Invoice # 2304 27-Jul Paid Gentex $40,000 for June 27 purchase, Check # 7012 27-Jul Sold 1850 Rearview mirrors to Ford for $89 each, Invoice # 2305 28-Jul Issued bonds payable at face value for $ 485,000 29-Jul Paid Bose $158,240 for balance due in June, Check # 7013 29-Jul Check #7014 was issued for payroll: $ 20,500 for salaries and $ 3,560 for wages 30-Jul Received and paid legal service invoice of $9,025, Check # 7015 31-Jul Paid the first month's principal of $25,000 plus interest for notes issued at the beginning of the month. Check # 7016 *All purchases on account terms of 3/10, net 30 **All credit sales have terms of 3/10, net 45

July Month-end Adjustments:

(A) AC Speed estimates bad debt expense on a monthly basis rather than waiting until year-end. The company uses the allowance method. Based on recent industry estimates, AC Speed estimates that the estimate of bad debt expense should be 1.5% of total sales. The balance in the Prepaid Insurance account at the beginning of July represents 6 months of coverage. Record the amount of insurance expense for July. (p.102)

(B)

(C) AC Speed has earned one month of the rent prepaid by their tenant at the beginning of July. (pp. 104-105) (D) The Company took a physical inventory count on July 31 and found the following inventory on hand: Merchandise Inventory - $310,000 (p.211) (E) The Company took a physical count of Office Supplies on July 31 and found the following to be on hand: Office Supplies - $2,415 (p.101) (F) Depreciation on the company's fixed assets for the month of July is as follows: 1. The furniture and equipment for the warehouse purchased a few years ago cost $10,000. These assets have a 10-year life, with $1500 salvage value, and are depreciated using the straight-line method. (p.444) 2. The furniture and equipment for the office was purchased last year for $8,500. These assets have a 5 year life, an expected salvage value of $1,500, and are depreciated using double declining method.

3.The new office furniture purchased in July has a 5 year life with a $500 salvage value, and is depreciated using the straight line method

Product Name GPS Speakers Rearview Mirror

Description In vehicle GPS unit High sound quality speakers Rearview mirror with built in reverse camera display

Main Menu

AC Speed Corporation Chart of Accounts - General Ledger BALANCE SHEET ACCOUNTS Assets Current Assets Acct # Account Name 100 Cash 102 Accounts Receivable 103 Allowance for Doubtful Accounts 104 Merchandise Inventory 105 Office Supplies 106 Prepaid Insurance Property, Plant and Equipment 140 Land 145 Building 146 Accumulated Depreciation - Building 151 Equipment & Furniture - Warehouse 152 Accumulated Depreciation - Equip & Furn. - Warehouse 153 Equipment & Furniture - Office 154 Accumulated Depreciation - Equip & Furn. - Office Liabilities Current Liabilities 201 Accounts Payable 202 Wages Payable 203 Interest Payable 204 Dividends Payable 205 Unearned Rent Long-Term Liabilities 250 Notes Payable 251 Bonds Payable 252 Mortgage (Warehouse) Payable Capital (Equity) 300 Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding 301 Paid In Capital - Excess of Par 330 Retained Earnings 340 Treasury Stock INCOME STATEMENT ACCOUNTS Revenue 500 Sales 510 Sales Discounts 511 Sales Returns & Allowances Cost of Goods Sold 600 Cost of Goods Sold Operating Expenses 700 Wage Expense (hourly workers) 701 Salaries Expense (Exempt Staff) 702 Marketing Expense 703 Travel and Entertainment Expense 704 Bad Debt Expense 705 Property Tax Expense 706 Maintenance & Repair Expense 707 Legal Expenses 708 Insurance Expense 709 Utilities Expense 710 Office Supplies Expense 711 Telecommunications Expense 712 Depreciation Expense - Equip & Furniture - Warehouse 713 Depreciation Expense - Equip & Furniture - Office Other Income 800 Rent Income Other Expenses 900 Interest Expense Other 1000 Income Summary

Main Menu

AC Speed Corporation Chart of Accounts - Accounts Receivable Ledger Account Name General Motors Ford Motor Co. Toyota Honda

Main Menu

AC Speed Corporation Chart of Accounts - Accounts Payable Ledger Account Name Garmin Magellan Bose Gentex

Main Menu

AC Speed Corporation Sales Journal Invoice No. Post Ref A/R - DR Sales - CR CGS - DR Inv - CR

Date

A/R Account Debited

AC Speed Corporation Purchases Journal Office Supplies DR

Main Menu

Date

Creditors Account Credited

Other Account - Debited

Post Ref

A/P - CR

Inventory DR

Other - DR

Shoe:

GPS Beginning Inventory (BI) Purch Units Purchases Purch $/Unit Purch $ $ Sale Units (CGS) Sales Sale $/Unit (CGS) Ending Inventory (EI) Sale $ (CGS) $ EI Units EI $/Unit EI $ $ 100,000.00

Date 1-Jul

BI Units 2500

BI $/Unit $ 40.00

BI $ $ 100,000.00

Shoe:

Speakers Beginning Inventory (BI) BI Units 2000 BI $/Unit $ 71.00 BI $ $ 142,000.00 Purch Units

Date 1-Jul

Purchases Purch $/Unit Purch $ $ -

Sale Units (CGS)

Sales Sale $/Unit (CGS)

Ending Inventory (EI) Sale $ (CGS) $ EI Units EI $/Unit EI $ $ 142,000.00

Shoe:

Rearview Mirror Beginning Inventory (BI) BI Units 1200 BI $/Unit $ 43.00 BI $ 51,600.00 Purch Units

Date 1-Jul

Purchases Purch $/Unit Purch $ $ -

Sale Units (CGS)

Sales Sale $/Unit (CGS)

Ending Inventory (EI) Sale $ (CGS) $ EI Units EI $/Unit $ EI $ 51,600.00

AC Speed Corporation Cash Receipts Journal Acct - CR Customer Acct Other Acct

Main Menu

Date

Post Ref

Sales - CR

A/R - CR

Other - CR

Sale Discount DR

Cash - DR

CGS - DR - CR

Inv

AC Speed Corporation Cash Payments Journal Post Ref

Main Menu

Date

Check #

Payee

Account Debited

Cash - CR

Inventory - CR

Other - DR

A/P - DR

AC Speed Corporation General Journal Post Ref

Main Menu

Date

Accounts

DEBIT

CREDIT

AC Speed Corporation General Journal Post Ref

Main Menu

Date

Accounts

DEBIT

CREDIT

AC Speed Corporation General Journal Post Ref

Main Menu

Date

Accounts

DEBIT

CREDIT

Account: Cash Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT 93,900.00

Account: Accounts Receivable Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT 490,000.00

Account: Allowance for Doubtful Accounts Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Merchandise Inventory Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT 293,600.00

Account: Office Supplies Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT 2,000.00

Account: Prepaid Insurance Transaction Date 30-Jun Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT 30,000.00

Account: Land Transaction Date Item 30-Jun Balance Carried Forward Post Ref DEBIT $ 2,000,600.00 CREDIT

Account No. Account Balance DEBIT $ 2,000,600.00

Account: Building Transaction Date Item 30-Jun Balance Carried Forward Post Ref DEBIT $ 1,500,000.00 CREDIT

Account No. Account Balance DEBIT $ 1,500,000.00

Account: Accumulated Depreciation - Building Transaction Date Item 30-Jun Balance Carried Forward Post Ref DEBIT CREDIT $ 1,500,000.00

Account No. Account Balance DEBIT

Account: Equipment & Furniture - Warehouse Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT 10,000.00

Account: Accumulated Depreciation - Equip & Furn. - Warehouse Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Equipment & Furniture - Office Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT 8,500.00

Account: Accumulated Depreciation - Equip & Furn. - Office Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Accounts Payable Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Wages Payable Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Interest Payable Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Dividends Payable Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Unearned Rent Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Notes Payable Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Bonds Payable Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Mortgage (Warehouse) Payable Transaction Date 1-Jul Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account:

Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding

Transaction Date 30-Jun Balance Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Paid In Capital - Excess of Par Transaction Date 30-Jun Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Retained Earnings Transaction Date Item 30-Jun Balance Brought Forward Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Treasury Stock Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Sales Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Sales Discounts Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Sales Returns & Allowances Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Cost of Goods Sold Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Wage Expense (hourly workers) Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Salaries Expense (Exempt Staff) Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Marketing Expense Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Travel and Entertainment Expense Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Bad Debt Expense Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Property Tax Expense Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Maintenance & Repair Expense Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Legal Expenses Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Insurance Expense Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Utilities Expense Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Office Supplies Expense Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Telecommunications Expense Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Depreciation Expense - Equip & Furniture - Warehouse Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Depreciation Expense - Equip & Furniture - Office Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Rent Income Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Interest Expense Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

Account: Income Summary Transaction Date Item Post Ref DEBIT CREDIT

Account No. Account Balance DEBIT

100 Account Balance CREDIT

Main Menu

102 Account Balance CREDIT

103 Account Balance CREDIT 15,000.00

104 Account Balance CREDIT

105 Account Balance CREDIT

106 Account Balance CREDIT

140 Account Balance CREDIT

145 Account Balance CREDIT

146 Account Balance CREDIT $ 1,500,000.00

151 Account Balance CREDIT

152 Account Balance CREDIT 1,900.00

153 Account Balance CREDIT

154 Account Balance CREDIT 1,600.00

201 Account Balance CREDIT 948,600.00

202 Account Balance CREDIT

203 Account Balance CREDIT

204 Account Balance CREDIT

205 Account Balance CREDIT

250 Account Balance CREDIT

251 Account Balance CREDIT

252 Account Balance CREDIT 200,000.00

300 Account Balance CREDIT 75,000.00

301 Account Balance CREDIT $ 1,341,000.00

330 Account Balance CREDIT 366,000.00

340 Account Balance CREDIT

500 Account Balance CREDIT

510 Account Balance CREDIT

511 Account Balance CREDIT

600 Account Balance CREDIT

700 Account Balance CREDIT

701 Account Balance CREDIT

702 Account Balance CREDIT

703 Account Balance CREDIT

704 Account Balance CREDIT

705 Account Balance CREDIT

706 Account Balance CREDIT

707 Account Balance CREDIT

708 Account Balance CREDIT

709 Account Balance CREDIT

710 Account Balance CREDIT

711 Account Balance CREDIT

712 Account Balance CREDIT

713 Account Balance CREDIT

800 Account Balance CREDIT

900 Account Balance CREDIT

1000 Account Balance CREDIT

Account:

General Motors Transaction Account Balance CREDIT $ DEBIT 10,000.00 CREDIT

Main Menu

Post Ref Date 30-Jun

DEBIT

Account:

Ford Motor Co. Transaction Account Balance CREDIT $ DEBIT 200,000.00 CREDIT

Post Ref Date 5-Jun $

DEBIT 200,000.00

Account:

Toyota Transaction Account Balance CREDIT $ DEBIT 200,000.00 CREDIT

Post Ref Date 11-Jun $

DEBIT 200,000.00

Account:

Honda Transaction Account Balance CREDIT DEBIT CREDIT

Date

Post Ref

DEBIT

Main Menu

Main Menu
Account: Garmin Transaction Post Ref Date 30-Jun DEBIT CREDIT Account No. Account Balance DEBIT $ CREDIT 18,000.00

Account:

Gentex Transaction

Account No. Account Balance CREDIT DEBIT $ CREDIT 40,000.00

Post Ref Date 27-Jun

DEBIT

Account:

Bose Transaction

Account No. Account Balance CREDIT 142,000.00 DEBIT $ CREDIT 142,000.00

Post Ref Date 30-Jun

DEBIT $

Main Menu

Unadjusted Trial Balance

Adjustments

Adjusted Trial Balance

Income Statement

Bal. Sheet Stmt. Own. Equity

Acct. No.
100 102 103 104 105 106 140 145 146 151 152 153 154 201 202 203 204 205 250 251 252 300 301 330 340 500 510 511 600 700 701 702 703 704 705 706 707 708 709 710 711 712 713 800 900 Cash Accounts Receivable

Account Title

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Allowance for Doubtful Accounts Merchandise Inventory Office Supplies Prepaid Insurance Land Building Accumulated Depreciation - Building Equipment & Furniture - Warehouse Accumulated Depreciation - Equip & Furn. - Warehouse Equipment & Furniture - Office Accumulated Depreciation - Equip & Furn. - Office Accounts Payable Wages Payable Interest Payable Dividends Payable Unearned Rent Notes Payable Bonds Payable Mortgage (Warehouse) Payable
Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding

Paid In Capital - Excess of Par Retained Earnings Treasury Stock Sales Sales Discounts Sales Returns & Allowances Cost of Goods Sold Wage Expense (hourly workers) Salaries Expense (Exempt Staff) Marketing Expense Travel and Entertainment Expense Bad Debt Expense Property Tax Expense Maintenance & Repair Expense Legal Expenses Insurance Expense Utilities Expense Office Supplies Expense Telecommunications Expense Depreciation Expense - Equip & Furniture - Warehouse Depreciation Expense - Equip & Furniture - Office Rent Income Interest Expense Total

Net Income (Loss) Total

Income Statement

Main Menu

Statement of Retained Earnings

Main Menu

Balance Sheet

Main Menu

0 Post-closing Trial Balance DEBIT CREDIT

Main Menu

AC Speed Corporation Income Statement 12/31/2011 12/31/2010

12/31/2009

12/31/2008

7/31/2011

AC Speed Corporation Balance Sheet 12/31/2011 12/31/2010

12/31/2009

12/31/2008

7/31/2011

Dec. 31, 2011 Liquidity Current Ratio (One decimal place)

Dec. 31, 2010

Acid Test Ratio (One decimal place)

Receivables Turnover (One decimal place)

Inventory Turnover (One decimal place)

Profitability Profit Margin (% with two decimal places)

Asset Turnover (two decimal places)

Return on Assets (% one decimal place)

Return on Common Shareholders' Equity (One decimal place)

Earnings per Share (EPS) (Two decimal places)

Price-Earnings (P/E ) Ratio (Two decimal places)

Payout Ratio (% One decimal place)

Solvency Ratios Debt to Total Assets Ratio (% One decimal place)

Common Dividends Weighted Average Common Shares Market Price per Share

Dec. 31, 2011 41,600 65,000 56

Dec. 31, 2010 37,500 63,000 52

INSTRUCTIONS: Calculate all of the ratios listed above. Evaluate the company's performance trend relative to liquidity, profitability and solvency. Evaluate the company's performance relative to liquidity, profitability and solvency for their industry for the three years. Relate to the company management in which areas they are performing well and in which areas they need improvement.

Dec. 31, 2009

INDUSTRY 2.2

Main Menu

1.5

10

9.5

7.5%

1.9

10.5%

18.3%

7.9

10.72

6.5%

42.2%

Dec. 31, 2009 35,000 63,000 50

industry for the three years. reas they need improvement.

Dec. 31, 2011

Adjusted Trial Balance

Dec. 31, 2010

Adjusted Trial Balance

Dec. 31, 2009

Adjusted Trial Balance

Dec. 31, 2008

Adjusted Trial Balance

Adjus Trial Ba

Acct. No.
100 102 103 104 105 106 140 145 146 151 152 153 154 201 202 203 204 205 250 251 252 300 301 330 340 500 510 511 600 700 701 702 703 704 705 706 707 708 709 710 711 712 713 800 900

Account Title
Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Office Supplies Prepaid Insurance Land Building Accumulated Depreciation - Building Equipment & Furniture - Warehouse Accumulated Depreciation - Equip & Furn. - Warehouse Equipment & Furniture - Office Accumulated Depreciation - Equip & Furn. - Office Accounts Payable Wages Payable Interest Payable Dividends Payable Unearned Rent Notes Payable Bonds Payable Mortgage (Warehouse) Payable
Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding

Dr.
1,047,528 1,149,993 0 696,308 3,996 28,022 2,000,600 1,500,000 33,600 0 13,309 0 0 0 0 0 0 0 0 0 0 0 0 14,560 0 155,056 108,742 5,635,022 93,477 546,225 21,280 17,460 189,714 0 5,758 67,201 48,850 18,060 4,120 0 2,002 3,806 0 154,650 13,559,339

Cr.
0 0 20,192 0 0 0 0 1,500,000 0 2,589 0 2,330 811,012 0 0 0 9,295 207,663 577,677 119,054 65,000 1,545,000 1,086,913 0 7,588,995 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 23,620 0 13,559,339

Dr.
1,007,602 1,048,769 0 721,053 3,811 27,945 2,000,600 1,500,000 35,616 0 13,391 0 0 0 0 0 0 0 0 0 0 0 14,560 0 167,848 127,321 4,616,540 86,607 533,062 18,432 13,446 114,213 0 5,961 65,611 50,406 18,370 4,769 0 1,995 3,270 0 157,800 12,358,998

Cr.
0 0 20,674 0 0 0 0 1,500,000 0 2,687 0 2,628 798,712 0 0 0 9,847 222,106 627,937 125,759 65,000 1,545,000 1,037,616 0 6,376,923 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 24,110 0 12,358,998

Dr.
901,464 979,226 0 757,584 4,089 26,074 2,000,600 1,500,000 39,178 0 14,402 0 0 0 0 0 0 0 0 0 0 0 14,560 0 134,257 118,629 4,575,156 88,788 524,917 16,927 11,399 114,543 0 7,742 63,411 52,290 19,371 5,506 0 1,680 2,979 0 161,460 12,136,232

Cr.
0 0 20,463 0 0 0 0 1,500,000 0 2,444 0 2,947 756,324 0 0 0 8,210 239,734 695,046 138,079 65,000 1,545,000 933,734 0 6,204,281 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 24,970 0 12,136,232

Dr.
891,052 853,307 0 859,628 4,295 25,294 2,000,600 1,500,000 42,704 0 16,761 0 0 0 0 0 0 0 0 0 0 0 14,560 0 114,133 121,863 4,203,855 89,758 528,856 15,824 8,850 116,518 0 8,000 57,674 54,196 20,028 5,705 0 1,391 2,384 0 170,284 11,727,520

Cr.
0 0 22,959 0 0 0 0 1,500,000 0 2,511 0 2,089 613,841 0 0 0 9,346 260,449 712,735 143,791 65,000 1,545,000 1,001,124 0 5,823,100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25,575 0 11,727,520

Paid In Capital - Excess of Par Retained Earnings Treasury Stock Sales Sales Discounts Sales Returns & Allowances Cost of Goods Sold Wage Expense (hourly workers) Salaries Expense (Exempt Staff) Marketing Expense Travel and Entertainment Expense Bad Debt Expense Property Tax Expense Maintenance & Repair Expense Legal Expenses Insurance Expense Utilities Expense Office Supplies Expense Telecommunications Expense Depreciation Expense - Equip & Furniture - Warehouse Depreciation Expense - Equip & Furniture - Office Rent Income Interest Expense Total

Profit & Loss Account for Year Ended on December 31, 2011
Amount (Rs.) Amount (Rs.)

Sales (Gross) Less: Sales Return Sales Discounts Sales (Net) Less: Cost of Sales Cost of Goods Sold Wage Expense (hourly workers) Salaries Expense (Exempt Staff) Depreciation Expense - Equip & Furniture - Warehouse Depreciation Expense - Equip & Furniture - Office Bad Debt Expense Property Tax Expense Maintenance & Repair Expense Legal Expenses Insurance Expense Utilities Expense Office Supplies Expense Less: Marketing & Adminstration Expenses Travel & Entertainment Expenses Marketing Expenses Less:Other Expenses: Interest Expense Add: Other Income Rent Income Net Profit

7,588,995

(155,056) (108,742) (263,798) 7,325,197

(5,635,022) (93,477) (546,225) (2,002) (3,806) (189,714) (5,758) (67,201) (48,850) (18,060) (4,120) (6,614,235) (17,460) (21,280) (38,740) (154,650) (154,650)

23,620

23,620 541,192

Balance Sheet As on December 31, 2011 Non-Current Assets Land Building Accumulated Depreciation-Building Equipment & Furniture - Warehouse Accumulated Depreciation - Equip & Furn. - Warehouse Equipment & Furniture - Office Accumulated Depreciation - Equip & Furn. - Office Current Assets Inventory Account Receivable Allowance for Doubtful Accounts Cash Office Supplies Prepaid insurance Treasury Stock Total Assets Capital & Retained Earning Common Stock, $1 Par, 125,000 Authorized; 75,000 shares Issued/Outstanding Paid In Capital - Excess of Par Retained Earnings Current Liabilities Accounts Payable Unearned Rent Notes Payable Bonds Payable Mortgage (Warehouse) Payable Total Equity & Liabilities Amount (Rs.) Amount (Rs.) 2,000,600 2,000,600 1,500,000 (1,500,000) 33,600 (2,589) 31,011 13,309 (2,330) 10,979 696,308 1,149,993 (20,192) 1,047,528 3,996 28,022 14,560 696,308 1,129,801 1,047,528 3,996 28,022 14,560 4,962,806

65,000 1,545,000 1,628,105

65,000 1,545,000 1,628,105

811,012 9,295 207,663 577,677 119,054 4,962,806

811,012 9,295 207,663 577,677 119,054 4,962,806