Dec 1

Bal.

Dec 1
Bal.

Cash
45,750
45,750

Mortgage payable
43,500
43,500

Accounts receivable
139,200
139,200

Capital stock
450,000
450,000

Allowance for doubtful accounts

2,550
Dec 1
2,550
Bal.

Dec 1
Bal.

Dec 1
Bal.

Dec 1
Bal.

Inventory
104,850
104,850

Retained earnings
13,695
13,695

Dec 1
Bal.

Land
78,000
78,000

Sales
745,000
745,000

Buildings
315,000
315,000

Dec 1
Bal.

Accumulated depreciation - Buildings

31,500
Dec 1
31,500
Bal.

Dec 1

Long-term investments
12,150
12,150

Dec 1

Dec 1
Bal.

Bal.

Bal.

Notes payable - short term

24,000
Dec 1
24,000
Bal.
Accounts payable
119,000
119,000

Dividends
12,000
12,000

Dec 1
Bal.

Sales discounts
24,750
24,750
Sales returns
14,400
14,400
Purchases
521,130
521,130
Purchases discounts
12,150
12,150

Dec 1
Bal.

Freight-in
10,500
10,500

payable
Dec 1
Bal.

Dec 1
Bal.

stock
Dec 1
Bal.

Dec 1
Bal.

earnings
Dec 1
Bal.

Dec 1
Bal.

nds
Dec 1
Bal.

es
Dec 1
Bal.

counts

Dec 1
Bal.

Advertising expense
12,000
12,000
Insurance expense
2,100
2,100
Office expense
28,800
28,800
Supplies expense
3,450
3,450

Real estate and payroll taxes

19,305
19,305
Bal.
Dec 1

turns

Interest revenue
1,335
1,335

ases
Dec 1
Bal.

discounts

t-in

Selling expense
94,050
94,050

Dec 1
Bal.

Interest expense
5,295
5,295

Dec 1
Bal.

Great Victory Co.

Work Sheet
For Year Ended December 31, 2013
Trial Balance
Debit
Cash
Accounts Receivable
Allowance for Doubtful
Accounts
Inventory
Interest Receivable
Prepaid Insurance
Supplies on Hand
Long-Term Investments
Land
Buildings
Accumulated Depreciation
Buildings
Accounts Payable
Selling Expense Payable
Real Estate and Payroll Taxes
Payable
Interest Payable
Income Taxes Payable
(0.30x$29,535)
Notes Payable Short-Term
Mortage Payable
Capital Stock, $10 par
Retained Earnings, Dec 31, 2012
Dividens
Sales
Sales Discounts
Sales Returns
Interest Revenue
Purchases
Purchase Discounts
Freight-In
Cost of Goods Sold
Real Estate and Payroll Taxes
Taxes Expense
Selling Expense Payable
Supplies Expense

Credit
45,750
139,200
2,550
104,850

12,150
78,000
315,000
31,500
119,000

24,000
43,500
450,000
13,695
12,000
745,000
24,750
14,400
1,335
521,130
12,150
10,500

19,305
94,050
3,450

Doubtful Accounts Expense

Depreciation Expense
Buildings
Income Tax Expense
Advertising Expense
Insurance Expense
Interest Expense
Office Expense

12,000
2,100
5,295
28,800
1,442,730

1,442,730

Co.
t
ber 31, 2013
Adjustmen
Debit

Credit

(b)
(a)
(g)
(f)
(e)

Adjustment Trial Balance

Debit
Credit
45,750
139,200
3,700

31,065
360
1,290
1,050

6,250
135,915
360
1290
1050
12,150
78,000
315,000

(c)

15,750

(d)

6,075

47,250
119,000
6,075

(h)
(i)

1,170
240

1,170
240

(j)

8,861

8,861
24,000
43,500
450,000
13,695
12,000
745,000
24,750
14,400

(a)
(a)
(h)
(d)

(g)
(a)

360
521,130

(a)

10,500

1,695

12,150
488,415

488,415

1,170
6,075

20,475
100,125
2,400

(e)

1,050

(b)

3,700

3700

(c)
(j)

15,750
8,861

15,750
8,861
12,000
810
5,535
28,800
1,466,736

(f)
(i)

1,290

240
570,126

570,126

1,466,736

Adjusting Entries
GENERAL JOURNAL

a)

b)
c
d
e)
f)
g
h
i
j

Date
Account Titles and Explanation
2013
Inventory
Dec. 31 Purchase Discounts
Cost of Goods Sold
Purchases
Freight-In
31 Doubtful Accounts Expense
Allowance for Doubtful Accounts
31 Depreciation Expense, Building
Accumulated Depreciation, Building
31 Selling Expense
Selling Expense Payable
31 Supplies on Hand
Supplies Expense
31 Prepaid Insurance
Insurance Expense
31 Interest Receivable
Interest Revenue
31 Real Estate and Payroll Taxes
Real Estate and Payroll Taxes Payable
31 Interest Expense
Interest Payable
31 Income Tax
Income Tax Payable

Debit
31,065
12,150
488,415

3,700
15,750
6,075
1,050
1,290
360
1,170
240
8,861

es

Credit

521,130
10,500
3,700
15,750
6,075
1,050
1,290
360
1,170
240
8,861

Dec 1
Bal.

Dec 1
Bal.

Cash
45,750
45,750

Mortgage

Accounts receivable
139,200
139,200

Capital

Allowance for doubtful accounts

2,550
Dec 1
3,700
Dec 31 b)
6,250
Bal.

Dec 1

a) Dec 31
Bal.

Dec 1
Bal.

Dec 1
Bal.

Inventory
104,850
31,065
135,915

Divide
Dec 1
Bal.

Land
78,000
78,000

Sale

Buildings
315,000
315,000

Sales dis
Dec 1
Bal.

Accumulated depreciation - Buildings

31,500
Dec 1
15,750
Dec 31 c)
47,250
Bal.

Dec 1
Bal.

Retained e

Long-term investments
12,150
12,150

Sales re
Dec 1
Bal.

Purcha
Dec 1
Bal.

Notes payable - short term

24,000
Dec 1
24,000
Bal.

Accounts payable
119,000
119,000

Purchases d
a) Dec 31

Freigh
Dec 1

Dec 1

Bal.
Bal.

Mortgage payable
43,500
43,500

Dec 1
Bal.

Dec 1

d) Dec 31
Bal.

Capital stock
450,000
450,000

Dec 1

Retained earnings
13,695
13,695

Dec 1

Bal.

Dec 1
Bal.

Dec 1

Bal.
Bal.

Dividends
12,000
12,000

Sales
745,000
745,000

Dec 1
Bal.

Dec 1

Dec 1

Bal.
Bal.

Sales discounts
24,750
24,750

Selling expense
94,050
6,075
100,125
Advertising expense
12,000
12,000
Insurance expense
2,100
1,290
810
Office expense
28,800
28,800

Supplies expense
3,450
1,050
2,400

Real estate and payroll taxes

19,305
Dec 1
h) Dec 31
1,170
20,475
Bal.

Sales returns
14,400
14,400

Interest revenue
1,335
360
1,695

Purchases
521,130
521,130
-

Interest expense
5,295
240
5,535

Purchases discounts
12,150
12,150
Freight-in
10,500
10,500
-

Dec 1
Dec 31 a)

i) Dec 31
Bal.

Dec 1

a) Dec 31
Bal.

Cost of goods sold

488,415
488,415

Bal.

b) Dec 31
Dec 31 a)

Bal.

Bad debt expense

3,700
3,700

xpense

Depreciation expense - building

c) Dec 31
15,750
15,750
Bal.

expense

Accrued selling expenses

6,075
Dec 31 d)
6,075
Bal.

expense
e) Dec 31
Dec 31 f)

Bal.

pense
f) Dec 31
Bal.

expense
g) Dec 31
Dec 31 e)

payroll taxes

Bal.

Interest receivable
360
360

Interest payable
240
240

Dec 1
Dec 31 g)

Dec 31 i)
Bal.

Bal.

xpense

expense

Prepaid insurance
1,290
1,290

Real estate and payroll taxes payable

1,170
Dec 31 h)
1,170
Bal.

evenue

ods sold

Supplies
1,050
1,050

j) Dec 31
Bal.

Income tax expense

8,861
8,861

Income tax payable

8,861
8,861

Dec 31 j)
Bal.

Great Victory Co.

Work Sheet
For Year Ended December 31, 2013
Account Titles

Income Statement
Debit

Cash
Accounts Receivable
Allowance for Doubtful
Accounts
Inventory
Interest Receivable
Prepaid Insurance
Supplies on Hand
Long-Term Investments
Land
Buildings
Accumulated Depreciation
Buildings
Accounts Payable
Selling Expense Payable
Real Estate and Payroll Taxes
Payable
Interest Payable
Income Taxes Payable
(0.30x$29,535)
Notes Payable Short-Term
Mortage Payable
Capital Stock, $10 par

Credit

Balace Sheet
Debit

Credit

45,750
139,200
6,250
135,915
360
1,290
1,050
12,150
78,000
315,000
47,250
119,000
6,075
1,170
240
8,861
24,000
43,500
450,000

Retained Earnings, Dec 31, 2013

Dividens
Sales
Sales Discounts
Sales Returns
Interest Revenue
Cost of Goods Sold
Real Estate and Payroll Taxes
Taxes Expense
Selling Expense Payable
Supplies Expense
Doubtful Accounts Expense
Depreciation Expense
Buildings
Income Tax Expense
Advertising Expense
Insurance Expense
Interest Expense
Office Expense
Net Income

13,695
12,000
745,000
24,750
14,400
1,695
488,415
20,475
100,125
2,400
3,700
15,750
8,861
12,000
810
5,535
28,800
726,021
20,674
746,695

746,695 740,715
746,695 740,715

720,041
20,674
740,715

GREAT VICTORY Co.

Retained Earnings Statement
For the Month Ended December 31, 2013
Beginning retained earnings
Add: Net income
Less : Dividends
Ending retained earnings

13,695
20,675
12,000
22,370

GREAT VICTORY Co.

Balance Sheet
December 31, 2013
Assets
Current assets
Cash
Accounts receivable
Less: Allowance for doubtful accounts
Interest receivable
Supplies
Prepaid insurance
Inventory
Total current assets

Non-current assets
Long-term investments
Property, plant and equipment
Land
Buildings
Less : Accumulated depreciation
Total non-current assets

139,200
6,250

315,000
47,250

Total assets

Liabilites and Stockholders' Equity

Liabilities
Current liabilities
Notes payable - short term
Accounts payable
Interest payable
Real estate and payroll taxes payable
Income tax payable
Accrued selling expenses
Total current liabilities
Long-term liabilities
Mortgage payable
Total liabilities
Stockholders' equity
Capital stock
Retained earnings

Total stockholders' equity

Total liabilities and stockholders' equity

$ 45,750
132,950
360
1,050
1,290
135,915
$

317,315

12,150
78,000
267,750
357,900
$

675,215

159,346

43,500
202,846

quity

$ 24,000
119,000
240
1,170
8,861
6,075

450,000
22,370

472,370
$

675,215

GREAT VICTORY Co.

Post-closing Trial Balance
December 31, 2013
Interest Revenue
Sales
Retained Earnings

1,695
745,000

Retained Earnings
Cost of Goods Sold
Advertising Expense
Insurance Expense
Interest Expense
Office Expense
Sales Discount
Sales Returns
Selling Expense
Real Estate and Payroll Taxes
Supplies Expense
Doubtful Accounts Expense
Depreciation Expense, Buildings
Income Tax Expense

726,021

Retained Earnings
Devidens

12,000

Co.
alance
13

746,695

488,415
12,000
810
5,535
28,800
24,750
14,400
100,125
20,475
2,400
3,700
15,750
8,861

12,000

GENERAL JOURNAL
Date
2013
a)

b)

c)

d)

e)

f)

g)

h)

i)

Account Titles and Explanation

Closing Entries

Dec. 31 Sales
Income Summary
( to close revenue account)
31 Income Summary
Sales discounts
Sales returns
( to close revenue account)
31 Income Summary
Cost of goods sold
( to close cost of goods account)
31 Income Summary
Selling expense
Advertising expense
Insurance expense
Office expense
Supplies expense
Depreciation expense - Buildings
Real estate and payroll taxes
( to close operating expenses account)
31 Interest revenue
Income Summary
( to close other revenue account)
31 Income Summary
Interest expense
Bad debt expense
( to close other expenses account)
31 Income Summary
Income tax expense
( to close income tax expense account)
31 Income Summary
Retained Earnings
( to close net income to retained earnings )
31 Retained Earnings
Dividends
( to close dividends to retained earnings )

Debit

745,000

39,150

488,415

180,360

1,695

9,235

8,861

20,675

12,000

Credit

745,000

24,750
14,400

488,415

100,125
12,000
810
28,800
2,400
15,750
20,475

1,695

5,535
3,700

8,861

20,675

12,000