Warren Sports Supply

Worksheet
Decemeber 31, 2017
Trial Balance Adjustments
ACCT NO. ACCOUNT TITLE Debit Credit Debit
10100 Cash 91,471.77
10200 Accounts Receivable 47,740.00
10300 Allowance for Doubtful Accounts 1,149.19
10400 Inventory 101,681.00 92,428.00
10500 Prepaid Expenses 0.00
10600 Marketable Securities 24,000
10700 Interest Receivable 0.00
10800 Fixed Assets 331,731.40
10900 Accumulated Depreciation 81,559.50
11000 Notes Receivable 0.00

20100 Accounts Payable 7,952.01

20200 Wages and Salaries Payable 0.00
20300 Federal Income Taxes Withheld 1,472.00
20400 State Unemployment Taxes Payable 111.06
20500 Federal Unemployment Taxes Payable 18.77
20600 FICA Taxes Payable 2,246.60
20700 Federal Income Taxes Payable 0.00
20800 Dividends Payable 0.00
20900 Interest Payable 0.00
21000 Notes Payable 60,000
26000 Common Stock 225,000.00
27000 Paid-In Capital in Excess of Par 0.00
28000 Income Summary
29000 Retained Earnings 90,264.99

30100 Sales 1,590,474.00

30200 Sales Returns and Allowances 61,106.00
30300 Sales Discounts Taken 15,405.82
30400 Costs of Goods Sold 0.00 1,025,988.24
30500 Purchases 1,129,945.00
30600 Purchases Returns and Allowances 19,445.00 19,445.00
30700 Purchases Discounts Taken 16,590.20 16,590.20
30800 Freight-In 24,506.44
30900 Gain/Loss on Sale of Fixed Assets 0.00
31000 Gain/Loss on Sale of Marketable Securities 0.00
31100 Interest/Dividend Income 0.00
31200 Miscellaneous Revenue 825.00

40100 Rent Expense 57,600

40200 Advertising Expense 22,275.00
40300 Office Supplies Expense 5,664.91
40400 Depreciation Expense 0.00 35,023.64
40500 Wages and Salaries Expense 140,776.23
40600 Payroll Tax Expense 11,620.62
40700 Federal Income Tax Expense 0.00
40800 Interest Expense 0.00 106.85
40900 Bad Debt Expense 0.00 3,784.91
41000 Other Operating Expense 29,285.75

$2,095,959.13 $2,095,959.13 $1,193,366.84

Income, Before taxes
Income taxes
Net Income
Adjustments Adjusted Trail Balance Income Statement Balance Sheet
Credit Debit Credit Debit Credit Debit Credit
91,471.77 91,471.77
47,740.00 47,740.00
3,784.91 2,635.72 2,635.72
194,109.00 194,109.00

24,000 24,000

331,731.40 331,731.40
35,023.64 116,583.14 116,583.14

7,952.01 7,952.01

1,472.00 1,472.00
111.06 111.06
18.77 18.77
2,246.60 2,246.60
54,487.80 54,487.80 54,487.80

106.85 106.85 106.85

60,000 60,000
225,000.00 225,000.00

90,264.99 90,264.99

1,590,474.00 1,590,474.00
61,106.00 61,106.00
15,405.82 15,405.82
1,025,988.24 1,025,988.24
1,129,945.00

24,506.44

825.00 825.00

57,600 57,600
 22,275.00 22,275.00
5,664.91 5,664.91
35,023.64 35,023.64
140,776.23 140,776.23
11,620.62 11,620.62

106.85 106.85
3,784.91 3,784.91
29,285.75 29,285.75

$1,247,854.64 $2,097,690.14 $2,152,177.94 $1,408,637.97 $1,591,299.00 $689,052.17 $560,878.94

$182,661.03
$54,487.80
$128,173.23
Waren Sports Supply
Statement of Income and Retained Earnings
Year Ended December, 31 2017

Revenue:
Sales 1,590,474.00
Less: Sales Returns and Allowances 61,106.00
Sales Discounts Taken 15,405.82
Net Sales 1,513,962.18

Cost of Goods Sold:

Beginning Inventory 101,681.00
Purchases 1,118,416.24
Goods Avaiblable for Sale 1,220,097.24
Less: Ending Inventory 194,109.00
Cost of Goods Sold 1,025,988.24

Gross Margin: 487,973.94

Operating Expenses:
Wages and Salaries 140,776
Payroll Taxes 11,621
Rent Expense 57,600
Advertising Expense 22,275
Office Supplies Expense 5,665
Bad Debt Expense 3,784.91
Depreciation 35,024
Other Operating Expenses 29,285.75
Total Operating Expenses 306,031

Operating Income (Loss) 181,942.88

Other Revenue 825.00
Non-Operating Expense - Interest 106.85
Income (Loss) Before Taxes 182,661.03
Federal Income Taxes 54487.80

Net Income (Loss) 128,173.23

Retained Earnings - Beginning of Year 90,264.99
Dividends 0
Retained Earnings - End of Year 218,438.22
Waren Sports Supply
Balance Sheet
At December 31, 2017 & 2016

2017 2016
Current Assets
Cash 91,471.77 11,025.19
Accounts Receivable; Less Allowance 45,104.28 7,814.19
for Doubtful Accounts
of $2,635.72 in 2017 & $3,250.81 in 2016
Marketable Securities 24,000
Inventory 194,109.00
Total Current Assets 354,685

Fixed Assets; Less Accumulated Depreciation 215,148.26

of $116,583.14 in 2017 & xxx in 2016
Total Assets 569,833.31

Current Liabilities
Accounts Payable 7,952.01
Notes Payable 60,000
Interst Payable 106.85
Payroll Taxes Withheld & Payable 58,336.2317
Total Liabilities 126,395.09

Stockholder's Equity
Common Stock 225,000.00
Retained Earnings 218,438.22
Total Stockholder's Equity 443,438.22
Total Liabilities and Stockholder's Equity 569,833.31
Warrens Sports Supply
Statement of Cash Flows
December 31 2017

Cash Flows from Operating Activities:

Net Income 128,173.23
Adjustments to Reconcile Net Income (Loss)
to Net Cash from Operating Activities:
Depreciation 35,024
(Increase) Decrease in Assets:
Accounts Receivable -37,290.09
Inventory (92,428.00)
Marketable Securities (24,000.00)
Increase (Decrease) in Liabilities:
Accounts Payable -3,327.34
Payroll Taxes Withheld & Payable 25,254.69
Interest Payable 106.85
Note Payable 60,000.00
Net Cash Provided by Operating Activities 91,512.98

Cash Flows from Investing Activities:

Cash Payments for Fixed Assets 11,066.40

Cash Flows from Financing Activities: 0

Net Increase (Decrease) in Cash: 80,446.58

Cash - Beginning of Year 11,025.19

Cash - End of Year 91,471.77
Changes in Accounts (for calculations):
Increase in Acct. Rec 37,290.09
Increase in Invetory 92,428.00
Increase Securities 24,000.00

Decrease in Acct. Payable 3,327.34

Increase in Payroll Tax 25,254.69
Increase in Interest 106.85
Increase in Note Payable 60,000.00