3.

Sell inentory for cash and on

Beginning balance (February

2. Incur factory wages

1. Purchase inventory

4. Pay for inventory

28, 2009)

account
Cash and cash equivalents 1,253,947
Accounts receivable 4,229,733
Notes receivable, current 0
Inventories 4,064,611
Deferred income taxes 369,197
DR Other 224,378
Property and Equipment, net 5,253,598
Notes receivable, less current portion 124,452
Goodwill, net 1,046,944
Intangible assets, net 183,135
Other 91,057
Accounts payable 1,074,643
Accrued salaries and wages 423,789
Other accrued expenses 531,941
Dividend payable 598,986
Deferred income 142,000
CR Deferred income Taxes 827,700
Common stock 179,696
Additional paid-in capital 7,311,280
Retained earnings 5,751,017
Sales 0
Franchise and royalty fees 0
Cost of sales 0
Franchise costs 0
Sales and marketing 0
General and administrative 0
DR
Retail operating 0
Depreciation and amortization 0
Interest income 0
Income Tax Expense 0
A = L + OE 0 0 0 0 0
 5. Collect receivables

0
6. Incur SG&A (cash and
payable)

0
7. Pay wages

0
8.Receive franchise fee

0
9. Purchase PPE

0
10. Dividends declared and
paid

0
11. All other transactions

2,090,468
1,499,477
5,492,531
693,786
944,017
315,322
503,189
139,198
132,859
790,224

66,729
92,052
91,059

1,112

0
(2,885,413)

(261,622)
(702,207)

(27,210)
(46,062)
(73,110)
(66,328)

(3,007)
(4,215)

(1)

Unadjusted trial balance

0
12. Adjust for inventory count

0
 Post-closing (ending) balance

Actual February 28, 2010 F/S

Pre-closing trial balance
13. Record depreciation

15. Consustant's report

14. Wage accrual

16. Closing entry

fgures
3,743,092
4,427,526
91,059
3,281,447
461,249
220,163
5,186,709
263,650
1,046,944
110,025
88,050
877,832
646,156
946,528
602,694
220,938
894,429
180,808
7,626,602
6,923,927
22,944,017
5,492,531
14,910,622
1,499,477
1,505,431
2,422,147
1,756,956
698,580
(27,210)
2,090,468
0 0 0 0 0 0 (3,580,077)
Rocky Mountain Chocolate Factory
Income Statement
For the year ended February 28, 2010

Sales
Franchise and royalty fees
Total revenues 0

Cost of sales
Franchise costs
Sales and marketing
General and administrative
Retail operating
Depreciation and amortization
Operating income 0
Interest income
Income before tax 0
Income tax expense
Net income
Rocky Mountain Chocolate Factory
Balance Sheet
As of February 28, 2010

Assets
Cash and cash equivalents
Accounts receivable
Notes receivable, current
Inventories
Deferred income taxes
Other
Total current assets 0
Property and Equipment, net
Notes receivable, less current portion
Goodwill, net
Intangible assets, net
Other
Total assets 0

Liabilities and Equity

Liabilities
Accounts payable
Accrued salaries and wages
Other accrued expenses
Dividend payable
Deferred income
Total current liabilities 0
Deferred income taxes
Total liabilities 0
Equity
Common stock
Additional paid-in capital
Retained earnings
Total equity 0
Total liabilities and equity