Finanacial Statements

Current Assets 360,966.76

Total Assets 576,887.76
Net Sales 1,515,494.18
Operating Expenses (excluding
COGS, Interest expense & FIT) 310,087.61
Net Income 127,511.16
Net cash provided by operating
activities 58,750.85
Net increase in Cash 92,825.85
Accounts Receivable Aged T/B
Total Accounts Receivable 46,887.00
Current Accounts Receivable 25,782.00
Bank Reconciliation
Outstanding Checks 29,592.56
Unadjusted General Ledger Balance,
12-31-05 103,878.54
Year-end Worksheet
12-31-05 Unadjusted Trial Balance
Total ######
Adjustments Column Total 1,248,416.18
Journals
Sales Journal credit to #30100 52,344.00
Purchases Journal debit to #30500 51,325.00
Systems Understanding Aid
Check Figures
Cash Receipts Journal debit to
#10100 115,082.36
Cash Disbursements Journal credit
to #10100 72,825.23
Payroll Journal debit to #40500 14,602.65
General Ledger Balances
#10100 - Cash 103,851.04
#30100 - Sales (pre-closing) 1,592,011.00
#30500 - Purchases (pre-closing) ######
#30400 - Cost of Goods Sold (pre-
closing) ######
WAREN SPORTS SUPPLY, YEAR-END WORKSHEET, DECEMBER 31, 2005 Student Name_________________________________________
TRANSACTIONS LIST A Instructor_______________________Date Due_________________
(Accounts with no activity in this worksheet are excluded in this solution.)
ACCT ACCOUNT
NO. TITLE
DEBIT CREDIT DEBIT CREDIT ID # DEBIT ID # CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
ASSETS
10100 Cash 11,025.19 0.00 0.00
10200 Accounts receivable 11,065.00 0.00 0.00
10300 Allowance for doubtful accounts 3,250.81 0.00 0.00
10400 Inventory 101,681.00 0.00 0.00
10600 Marketable securities 0.00 0.00
10800 Fixed assets 320,665.00 0.00 0.00
10900 Accumulated depreciation 81,559.50 0.00 0.00
LIABILITIES
20100 Accounts payable 11,279.35 0.00 0.00
20300 Federal income taxes withheld 1,326.76 0.00 0.00
20400 State unemployment taxes payable 281.17 0.00 0.00
20500 Federal unemployment taxes payable 83.31 0.00 0.00
20600 F.I.C.A. taxes payable 1,593.30 0.00 0.00
20700 Federal incomes taxes payable 29,797.00 0.00 0.00
20900 Interest payable 0.00 0.00
21000 Notes payable 0.00 0.00
STOCKHOLDERS' EQUITY
26000 Common stock 225,000.00 0.00 0.00
29000 Retained earnings 90,264.99 0.00 0.00
REVENUE AND GROSS PROFIT
30100 Sales 0.00 0.00
30200 Sales returns and allowances 0.00 0.00
30300 Sales discounts taken 0.00 0.00
30400 Cost of goods sold 0.00 0.00
30500 Purchases 0.00 0.00
30600 Purchases returns and allowances 0.00 0.00
30700 Purchases discounts taken 0.00 0.00
30800 Freight-in 0.00 0.00
31200 Miscellaneous revenue 0.00 0.00
EXPENSES
40100 Rent expense 0.00 0.00
40200 Advertising expense 0.00 0.00
40300 Office supplies expense 0.00 0.00
40400 Depreciation expense 0.00 0.00
40500 Wages and salaries expense 0.00 0.00
40600 Payroll tax expense 0.00 0.00
40700 Federal income tax expense 0.00 0.00
40800 Interest expense 0.00 0.00
40900 Bad debt expense 0.00 0.00
41000 Other operating expense 0.00 0.00
Sub-totals 0.00 0.00 0.00 0.00
Net Income (Loss) ----------------- ----------------- ----------------- ----------------- -------- ----------------- -------- ----------------- ----------------- ----------------- 0.00 0.00
TOTALS 444,436.19 444,436.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TRIAL BALANCE
12/31/2005
UNADJUSTED
TRIAL BALANCE
12/31/2004
POST CLOSING
BALANCE
SHEET YEAR-END ADJUSTMENTS
ADJUSTED
TRIAL BALANCE
INCOME
STATEMENT
2005 2004
CURRENT ASSETS
Cash $0.00 $11,025.19
Accounts receivable - net 0.00 7,814.19
Inventory 0.00 101,681.00
Marketable securities 0.00 0.00
Total current assets 0.00 120,520.38
FIXED ASSETS - Net of
accumulated depreciation 0.00 239,105.50
Total assets $0.00 $359,625.88
CURRENT LIABILITIES
Accounts payable $0.00 $11,279.35
Payroll taxes withheld
and payable 0.00 3,284.54
Federal income taxes payable 0.00 29,797.00
Interest payable 0.00 0.00
Total current liabilities 0.00 44,360.89
NOTE PAYABLE 0.00 0.00
Total liabilities 0.00 44,360.89
STOCKHOLDERS' EQUITY
Common stock 0.00 225,000.00
Retained earnings 0.00 90,264.99
Total stockholders' equity 0.00 315,264.99
Total liabilities and
stockholders' equity $0.00 $359,625.88
LIABILITIES AND STOCKHOLDERS' EQUITY
WAREN SPORTS SUPPLY
BALANCE SHEET
AT DECEMBER 31, 2004 AND 2005
ASSETS
REVENUE
Sales $0.00
Less: Sales returns and allowances 0.00
Sales discounts taken 0.00
Net sales 0.00
COST OF GOODS SOLD
Beginning inventory 101,681.00
Net purchases 0.00
Freight-in 0.00
Goods available for sale 101,681.00
Less: Ending inventory 0.00
Cost of goods sold 101,681.00
GROSS MARGIN (101,681.00)
OPERATING EXPENSES
Rent expense 0.00
Advertising expense 0.00
Office supplies expense 0.00
Depreciation expense 0.00
Wages and salaries 0.00
Payroll taxes 0.00
Bad debt expense 0.00
Other operating expense 0.00
Total operating expenses 0.00
Operating income (101,681.00)
OTHER INCOME - Miscellaneous income 0.00
OTHER EXPENSE - Interest expense 0.00
INCOME BEFORE TAXES (101,681.00)
FEDERAL INCOME TAXES 0.00
NET INCOME (101,681.00)
RETAINED EARNINGS - Beginning of year 90,264.99
RETAINED EARNINGS - End of year
($11,416.01)
WAREN SPORTS SUPPLY
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2005
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ($101,681.00)
Adjustments to reconcile net income to net cash
from operating activities
Depreciation 0.00
(Increase) decrease in assets:
Accounts receivable 7,814.19
Inventory 101,681.00
Increase (decrease) in liabilities:
Accounts payable (11,279.35)
Payroll taxes withheld and payable (3,284.54)
Income taxes payable (29,797.00)
Interest payable 0.00
Net cash provided by operating activities (36,546.70)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash payments for fixed assets 320,665.00
Purchase of marketable securities 0.00
Net cash used in investing activities 320,665.00
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from loans 0.00
NET INCREASE IN CASH 284,118.30
CASH - Beginning of year 11,025.19
CASH - End of year
$295,143.49
WAREN SPORTS SUPPLY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2005
ACCT. NO. ACCOUNT TITLE DEBIT CREDIT
ASSETS
10100 Cash 0.00
10200 Accounts receivable 0.00
10300 Allowance for doubtful accounts 0.00
10400 Inventory 0.00
10600 Marketable securities 0.00
10800 Fixed assets 0.00
10900 Accumulated depreciation 0.00
LIABILITIES
20100 Accounts payable 0.00
20300 Federal income taxes withheld 0.00
20400 State unemployment taxes payable 0.00
20500 Federal unemployment taxes payable 0.00
20600 F.I.C.A. taxes payable 0.00
20700 Federal income taxes payable 0.00
20900 Interest payable 0.00
21000 Notes payable 0.00
STOCKHOLDERS' EQUITY
26000 Common stock 0.00
29000 Retained earnings 0.00
TOTALS $0.00 $0.00
WAREN SPORTS SUPPLY
POST-CLOSING TRIAL BALANCE
December 31, 2005