DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

101 Cash in Bank 13,603 13,603 13,603

115 Accts. Receivable 5,418 5,418 5,418
125 Merchandise Inventory 82,763 4,451 78,312 78,312
130 Supplies 2,522 2,039 483 483
135 Prepaid Insurance 1,350 475 875 875
140 Store Equipment 26,769 26,769 26,769
201 Accounts Payable 14,481 14,481 14,481
207 Federal Corporate Income Tax Payable 261 261 261
210 Employees' Federal Income Tax Payable 189 189 189
211 Employees' State Income Tax Payable 52 52 52
212 Social Security Tax Payable 138 138 138
213 Medicare Tax Payable 28 28 28
215 Sales Tax Payable 891 891 891
216 Federal Unemployment Tax Payable 19 19 19
217 State Unemployement Tax Payable 96 96 96
301 Capital Stock 80,000 80,000 80,000
305 Retained Earnings 19,192 19,192 19,192
310 Income Summary 4,451 4,451 4,451
401 Sales Tax Payable 92,867 92,867 92,867
405 Sales Discounts 105 105 105
410 Sales Returns and Allowances 885 885 885
501 Purchases 37,491 37,491 37,491
505 Transportation In 1,805 1,805 1,805
510 Purchases Discounts 644 644 644
515 Purchases Returns and Allowances 231 231 231
601 Advertising Expense 650 650 650
605 Bankcard Fees Expense 213 213 213
620 Federal Corporate Inocme Tax Expense 1,720 261 1,981 1,981
630 Insurance Expense 475 475 475
640 Maintenance Expense 2,552 2,552 2,552
645 Miscellaneous Expense 285 285 285
647 Payroll Tax Expense 1,920 1,920 1,920
650 Rent Expense 9,700 9,700 9,700
655 Salaries Expense 18,720 18,720 18,720
660 Supplies Expense 2,039 2,039 2,039
670 Utilities Expense 357 357 357
208,828 208,828 7,226 7,226 209,089 209,089 83,629 93,742 125,460 115,347
Net Income 10,113 10,113
93,742 93,742 125,460 125,460
Shutterbug Cameras
Worksheet
For the Year Ended December 31, 2010
ACCT NO. ACCOUNT NAME
TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET
Income:
Sales 92,867
Less: Sales Discounts 105
Sales Returns and Allowances 885 990
Net Sales 91,877
Cost of Merchandise Sold:
Merchandise Inventory, January 1, 2010 82,763
Purchases 37,491
Plus: Transportation In 1,805
Cost of Delivered Merchandise 39,296
Less: Purchases Discounts 644
Purchases Returns and Allowances 231 875
Net Purchases 38,421
Cost of Merchandise Available 121,184
Merchandise Inventory, December 31, 2010 78,312
Cost of Merchandise Sold 42,872
Gross Profit on Sales 49,005
Operating Expenses
Advertising Expense 650
Bankcard Fees Expense 213
Insurance Expense 475
Maintenance Expense 2,552
Miscellaneous Expense 285
Payroll Tax Expense 1,920
Rent Expense 9,700
Salaries Expense 18,720
Supplies Expense 2,039
Utilities 357
Total Operating Expenses 36,911
Operating Income 12,094
Less: Federal Corporate Income Tax Expense 1,981
Net Income 10,113
For the year ended December 31, 2010
Income Statement
Sunset Surfwear
Retained Earnings, January 1, 2010 19,192
Net Income 10,113
Retained Earnings, December 31, 2010 29,305
Cash in Bank 13,603
Accounts Receivable 5,418
Merchandise Inventory 78,312
Supplies 483
Prepaid Insurance 875
Store Equipment 26,769
Total Assets 125,460
Accounts Payable 14,481
Fed. Corporate Income Tax Payable 261
Employees' Fed Income Tax Payable 189
Employees' State Income Tax Payable 52
Social Security Tax payable 138
Medicare Tax Payable 28
Fed. Unemployment Tax Payable 19
State Unemployment Tax Payable 96
Sales Tax Payable 891
Total Liabilities 16,155
Capital Stock 80,000
Retained Earnings 29,305
Total Stockholders' Equity 109,305
Total Liabilities and Stockholders Equity 115,347
Assets
Liabilities
Stockholders' Equity
Sunset Surfwear
Statement of Retained Earnings
For the year ended December 31, 2010
Sunset Surfwear
Balance Sheet
December 31, 2010