Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 1 SOLUTIONS TO CAMPUS CYCLE SHOP A BUSINESS PAPERS PRACTICE SET FOR USE WITH ACCOUNTING PRINCIPLES 7 th Edition JERRY J. WEYGANDT Ph.D., C.P.A. Arthur Anderson Alumni Professor of Accounting University of Wisconsin - Madison Madison, Wisconsin DONALD E. KIESO Ph.D., C.P.A. KPMG Peat Marwick Emeritus Professor of Accountancy Northern Illinois University DeKalb, Illinois PAUL D. KIMMEL Ph.D., C.P.A. Associate Professor of Accounting University of Wisconsin - Milwaukee Milwaukee, Wisconsin JOHN WILEY & SONS, INC. New York Chichester Weinheim Brisbane Singapore Toronto
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 2 COVER PHOTO James Bareham/Stone To order books or for customer service call 1-800-CALL-WILEY (225-5945) Copyright 2004 by john Wiley & Sons, inc. Excerpts from this work may be reproduced by instructors for distribution on a not-for-profit basis for testing or instructional purposes only to students enrolled in courses for which the text book has been adopted. Any other reproduction or translation of this work beyond that permitted by sections 107 or 108 of the 1976 United States Copyright Act with out the Permission of the copyright owner is unlawful. Requests for permission or further information should be addressed to the Permissions Department, John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158-0012 ISBN 0-471-39154-9 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Printed and bound by Odyssey Press, Inc
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 3 TABLE OF CONTENTS Sales Journal............................................................ 1 Purchases Journal........................................................ 1 Cash Receipts Journal..................................................... 2 Cash Payments Journal.................................................... 4 General Journal.......................................................... 6 General Ledgers......................................................... 9 Accounts Receivable Subsidiary Ledger..................................... 16 Accounts Payable Subsidiary Ledger....................................... 18 Continuous Checkbook........................................... 20 Original Deposit Tickets for September..................................... 20 Bank Reconciliation...................................................... 21 Work Sheet............................................................. 22 Accounts Receivable Schedule............................................. 24 Accounts Payable Schedule............................................... 24 Income Statement....................................................... 25 Owner s Equity Statement................................................ 26 Sheet........................................................... 27 Post-Closing Trial................................................ 28
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Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 1 SALES JOURNAL S5 Cost of Goods Sold Dr. Inv. Accts. Rec. Dr. Merchandise Date Account Debited No. Ref. Sales Cr. Inventory Cr. 1 Sept 1 Billy s Bike and Skate Rental 524 2500 1750 1 2 8 State University Cycling Club 525 2300 1610 2 3 15 Normal Park District 526 2400 1680 3 4 18 Twin Cities Bicycle Tours 527 1800 1260 4 5 18 Evergreen Parks and Recreation 528 4300 3010 5 6 24 Twin Cities Bicycle Tours 529 2800 1960 6 7 24 Normal Park District 530 5250 3675 7 8 25 Evergreen Parks and Recreation 531 1200 840 8 9 28 State University Cycling Club 532 2180 1526 9 10 28 Billy s Bike and Skate Rental 533 1700 1190 10 11 26430 1 8501 11 12 (112)(401) (505)(120) 12 13 13 14 14 15 15 PURCHASES JOURNAL P8 Merchandise Inventory Dr. Accounts Date Account Credited Invoice # Terms Ref. Payable Cr. 1 Sept 4 Terry Cycling Apparel 230 2/10, n/30 450 1 2 8 Gita Bicycle & Frames 993 n/30 2260 2 3 9 Tandems USA 1108 1/15, n/30 3200 3 4 17 Tuffy Bicycle Company 1417 2/10, n/30 3800 4 5 18 Bicycle Transit Authority 837 2/10, n/30 3500 5 6 22 Gita Bicycle & Frames 1023 n/30 6560 6 7 23 Bicycle Transit Authority 898 2/10, n/30 825 7 8 24 Tandems USA 1132 1/15, n/30 950 8 9 24 Tuffy Bicycle Company 1511 2/10, n/30 1400 9 10 28 Avanti Racers, Inc. 910 2/10, n/30 2000 10 11 28 Terry Cycling Apparel 309 2/10, n/30 740 11 12 25685 12 13 (120) / (201) 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 Copyright 2004 by John Wiley & Sons, Inc. 1
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 2 CR4 CASH RECEIPTS JOURNAL Date Cash Ref. Dr. 1 Sept 1 Repair Service Revenue 420 9540 1 2 2 Billy s Bike and Skate Rental 2303 2 3 3 Evergreen Parks and Recreation 2744 3 4 3 Twin Cities Bicycle Tours 3920 4 5 8 Repair Service Revenue 420 1780 5 6 8 Evergreen Parks and Recreation 3332 6 7 9 Billy s Bike and Skate Rental 2156 7 8 10 State University Cycling Club 3577 8 9 10 Twin Cities Bicycle Tours 4116 9 10 15 Repair Service Revenue 420 7780 10 11 16 State University Cycling Club 2254 11 12 17 Normal Park District 800 12 13 21 Bicycle Rental Revenue 805 3 0 0 13 14 22 Repair Service Revenue 420 3625 14 15 24 Normal Park District 2352 15 16 28 Twin City Bicycle Tours 1568 16 17 28 Evergreen Parks and Recreation 4214 17 18 30 Repair Service Revenue 420 4642 18 19 61003 19 20 (101) 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 41 41 42 42 43 43 Copyright 2004 by John Wiley & Sons, Inc. 2
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 3 CASH RECEIPTS JOURNAL CR4 Cost of Goods Sales Accounts Other Sold Dr. Discounts Receivable Sales Accounts Merchandise Debit Credit Credit Credit Inventory Cr. 1 8540 1000 5978 1 2 47 2350 2 3 56 2800 3 4 80 4000 4 5 1150 630 805 5 6 68 3400 6 7 44 2200 7 8 73 3650 8 9 84 4200 9 10 5880 1900 4116 10 11 46 2300 11 12 8 0 0 12 13 300 13 14 3200 425 2240 14 15 48 2400 15 16 32 1600 16 17 86 4300 17 18 4370 272 3059 18 19 664 34000 23140 4527 16198 19 20 (414) (112) (401) (X) (505/120) 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 41 41 42 42 43 43 44 44 45 45 Copyright 2004 by John Wiley & Sons, Inc. 3
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 4 CP9 CASH PAYMENTS JOURNAL Check Date No. Payee Account Debited 1 Sept 1 315 Gita Bicycle & Frame Gita Bicycle & Frame 1 2 2 316 Tuffy Bicycle Company Tuffy Bicycle Company 2 3 2 317 Avanti Racers, Inc Avanti Racers, Inc 3 4 3 318 Terry Cycling Apparel Terry Cycling Apparel 4 5 3 319 Greg Jordan Salaries Payable 5 6 4 320 Greg Jordan Greg Jordan, Drawing 6 7 4 321 Bicycle Transit Authority Bicycle Transit Authority 7 8 4 322 Tandems USA Tandems USA 8 9 9 323 Avanti Racers, Inc Avanti Racers, Inc 9 10 10 324 Greg Jordan 10 11 11 325 Peterson Supply Co. Store Supplies 11 12 14 326 Terry Cycling Apparel Terry Cycling Apparel 12 13 14 327 The Community News Advertising Expense 13 14 17 328 Greg Jordan 14 15 18 329 RTS Express Merchandise Inventory 15 16 18 330 Greg Jordan Greg Jordan, Drawing 16 17 21 331 Woodson Van City Repairs & Maintenance - Delivery Van 17 18 22 332 Tandems USA Tandems USA 18 19 23 333 Tuffy Bicycle Company Tuffy Bicycle Company 19 20 24 334 Pace Office Supply Office Supplies 20 21 24 335 Greg Jordan 21 22 28 336 Gita Bicycle & Frame Gita Bicycle & Frame 22 23 28 337 Bicycle Transit Authority Bicycle Transit Authority 23 24 29 338 RTS Express Merchandise Inventory 24 25 29 339 Midwest Electric Co. Utilities Expense 25 26 29 340 Wallace Realty Rent Expense 26 27 30 341 Reliable Telephone Co. Utilities Expense 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 41 41 42 42 43 43 44 44 45 45 Copyright 2004 by John Wiley & Sons, Inc. 4
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 5 CASH PAYMENTS JOURNAL CP9 Other Office Salaries Store salaries Accounts Merchandise Cash Ref. Accounts Dr. Expense Dr. Expense Dr. Payable Dr. Inventory Cr. Cr. 1 6200 6200 1 2 3000 60 2940 2 3 2000 40 1960 3 4 800 16 784 4 5 212 500 300 600 1400 5 6 306 1500 1500 6 7 2800 56 2744 7 8 1200 12 1188 8 9 1600 32 1568 9 10 300 900 1200 10 11 127 2 4 8 248 11 12 450 9 441 12 13 610 1 2 5 125 13 14 300 800 1100 14 15 120 1 1 0 110 15 16 306 3000 3000 16 17 623 4 3 0 430 17 18 3200 32 3168 18 19 3800 76 3724 19 20 125 1 6 5 165 20 21 300 1000 1300 21 22 1000 1000 22 23 3500 70 3430 23 24 120 3 0 0 300 24 25 732 1 3 5 135 25 26 729 2000 2000 26 27 732 1 0 0 100 27 28 8613 1200 3300 29550 403 42260 28 29 (X) (727) (626) (201) (120) (101) 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 41 41 42 42 43 43 44 44 45 45 Copyright 2004 by John Wiley & Sons, Inc. 5
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 6 GENERAL JOURNAL Date Account Titles and Explanation Ref. Debit Credit 1 Sept 4 Sales Returns and Allowances 412 3 0 0 1 2 Accounts Receivable/Billy s Bike and Skate Rental 112 300 2 3 (To record credit to Customer for defective bike- 3 4 --Credit Memo No.12) 4 5 5 6 15 Accounts Payable/Gita bicycles & Frames 201 250 6 7 Merchandise Inventory 120 2 5 0 7 8 (To record return of men s racer- 8 9 --Credit Memo No. 102) 9 10 10 11 24 Sales Return and Allowance 412 2 0 0 11 12 Accounts Receivable/Twin Cities Bicycle Tours 112 200 12 13 Merchandise Inventory 120 1 4 0 13 14 Cost of Goods Sold 505 1 4 0 14 15 (To record return of helmets by customer- 15 16 --Credit Memo No. 13) 16 17 17 18 30 Bank Service Charge 746 1 0 18 19 Cash 101 1 0 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 J5 Copyright 2004 by John Wiley & Sons, Inc. 6
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 7 GENERAL JOURNAL Date Account Titles and Explanation Ref. Debit Credit 1 Sept 30 -ADJUSTING ENTRIES- 1 2 2 3 (a) Office Supplies Express 728 8 1 5 3 4 Office Supplies 125 8 1 5 4 5 (To record office supplies) 5 6 6 7 (b) Store Supplies Expense 659 5 9 3 7 8 Store Supplies 127 5 9 3 8 9 (To record store supplies used in September) 9 10 10 11 (c) Insurance Expense 722 1 5 0 11 12 Prepaid Insurance 130 1 5 0 12 13 (To record insurance expense for September) 13 14 14 15 (d) Office Salaries Expense 727 1 8 0 15 16 Store Salaries Expense 626 4 5 0 16 17 Salaries Payable 212 6 3 0 17 18 (To accrue salaries earned in September) 18 19 19 20 (e) Depreciation Expense -- Store Equipment 615 4 0 0 20 21 Accumulated Depreciation -- Store Equipment 156 4 0 0 21 22 (To record September depreciation Expense) 22 23 23 24 (f) Depreciation Expense -- Delivery Van 616 3 0 0 24 25 Accumulated Depreciation -- Delivery Van 166 3 0 0 25 26 (To record September depreciation expense) 26 27 27 28 28 29 (g) Interest Expense 905 1 1 5 29 30 Interest Payable 230 1 1 5 30 31 (To Accrue Interest on Notes Payable at 6% for one month) 31 32 32 33 (h) Cost of Goods Sold 505 2 0 3 33 34 Merchandise Inventory 120 2 0 3 34 35 (To adjust to merchandise inventory on hand) 35 36 36 37 37 38 38 39 39 40 40 J6 Copyright 2004 by John Wiley & Sons, Inc. 7
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 8 GENERAL JOURNAL Date Account Titles and Explanation Ref. Debit Credit 1 Sept --- CLOSING ENTRIES --- 1 2 30 Sales 401 49570 2 3 Repair Services Revenue 420 4227 3 4 Bicycle Rental Revenue 805 3 0 0 4 5 Income Summary 350 5 4097 5 6 6 7 30 Income Summary 350 4 6229 7 8 Sales Returns and Allowances 412 5 0 0 8 9 Sales Discounts 414 6 6 4 9 10 Cost of Goods Sold 505 3 4762 10 11 Advertising Expense 610 1 2 5 11 12 Depreciation Expense---Store Equipment 615 4 0 0 12 13 Depreciation Expense---Delivery Van 616 3 0 0 13 14 Repairs and Maintenance 623 4 3 0 14 15 Store Salaries Expense 626 3750 15 16 Store Supplies Expense 659 5 9 3 16 17 Insurance Expense 722 1 5 0 17 18 Office Salaries Expense 727 1380 18 19 Office Supplies Expense 728 8 1 5 19 20 Rent Expense 729 2000 20 21 Utilities Expense 732 2 3 5 21 22 Bank Service Charge 746 1 0 22 23 Interest Expense 905 1 1 5 23 24 24 25 30 Income Summary 350 7868 25 26 Greg Jordan, Capital 301 7868 26 27 (To close Income Summary account and 27 28 Transfer profit to owner s capital) 28 29 29 30 30 Greg Jordan, Capital 301 4500 30 31 Greg Jordan, Drawing 306 4500 31 32 (To close drawing account to owner s capital) 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 J7 Copyright 2004 by John Wiley & Sons, Inc. 8
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 9 GENERAL LEDGER Cash ACCOUNT NO. 101 Sept 1 8300 30 CR4 61003 69303 30 CP9 42260 27043 30 J5 10 27033 Accounts Receivable ACCOUNT NO. 112 Sept 1 23700 4 J5 300 23400 29 J5 200 23200 29 S5 26430 49630 31 CR4 34000 15630 Merchandise Inventory ACCOUNT NO. 120 Sept 1 32990 15 J5 250 32740 18 CP9 110 32850 24 J5 140 32990 29 CP9 300 33290 30 P8 25685 58975 30 S5 18501 40474 30 CP9 403 40071 30 CR4 16198 23873 30 J6 203 23670 Office Supplies ACCOUNT NO. 125 Sept 1 950 24 CP9 165 1115 30 J6 815 300 Store Supplies ACCOUNT NO. 127 Sept 1 970 11 CP9 248 1218 30 J6 593 625 Copyright 2004 by John Wiley & Sons, Inc. 9
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 10 GENERAL LEDGER Prepaid Insurance ACCOUNT NO. 130 Sept 1 3600 30 J6 150 3450 Store Equipment ACCOUNT NO. 155 Sept 1 38400 Accumulated Depreciation -- Store Equipment ACCOUNT NO. 156 Date Item Ref. Debit Credit Credit Sept 1 22400 30 J6 400 22800 Delivery Van ACCOUNT NO. 165 Sept 1 21600 Accumulated Depreciation -- Delivery Van ACCOUNT NO. 166 Date Item Ref. Debit Credit Credit Sept 1 13200 30 J6 300 13500 Accounts Payable ACCOUNT NO. 201 Date Item Ref. Debit Credit Credit Sept 1 17600 15 J5 250 17350 30 P8 25685 43035 30 CP9 29550 13485 Copyright 2004 by John Wiley & Sons, Inc. 10
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 11 GENERAL LEDGER Salaries Payable ACCOUNT NO. 212 Date Item Ref. Debit Credit Credit Sept 1 500 3 CP9 5 0 0 0 30 J6 630 630 Interest Payable ACCOUNT NO. 230 Date Item Ref. Debit Credit Credit Sept 1 400 30 J6 115 515 Notes Payable ACCOUNT NO. 265 Date Item Ref. Debit Credit Credit Sept 1 23000 Greg Jordan, Capital ACCOUNT NO. 301 Date Item Ref. Debit Credit Credit Sept 1 53410 30 J7 7868 61278 30 J7 4500 56778 Greg Jordan, Drawing ACCOUNT NO. 306 Sept 4 CP9 1500 1500 18 CP9 3000 4500 30 J7 4500 0 Income Summary ACCOUNT NO. 350 Date Item Ref. Debit Credit Credit Sept 30 J7 5 4097 54097 30 J7 46229 7868 30 J7 7868 0 Copyright 2004 by John Wiley & Sons, Inc. 11
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 12 GENERAL LEDGER Sales ACCOUNT NO. 401 Date Item Ref. Debit Credit Credit Sept 30 S5 2 6430 26430 30 CR4 23140 49570 30 J7 49570 0 Sales Returns and Allowances ACCOUNT NO. 412 Sept 4 J5 3 0 0 3 0 0 24 J5 200 500 30 J7 500 0 Sales Discounts ACCOUNT NO. 414 Sept 30 CR4 6 6 4 6 6 4 30 J7 664 0 Repair Service Revenue ACCOUNT NO. 420 Date Item Ref. Debit Credit Credit Sept 1 CR4 1000 1000 8 CR4 630 1630 15 CR4 1900 3530 22 CR4 425 3955 30 CR4 272 4227 30 J7 4227 0 Cost of Goods Sold ACCOUNT NO. 505 Sept 24 J5 1 4 0 ( 1 4 0 ) 30 S5 18501 18361 30 CR4 16198 34559 30 J6 203 34762 30 J7 34762 0 Copyright 2004 by John Wiley & Sons, Inc. 12
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 13 GENERAL LEDGER Advertising Expense ACCOUNT NO. 610 Sept 14 CP9 1 2 5 1 2 5 30 J7 125 0 Depreciation Expense -- Store Equipment ACCOUNT NO. 615 Sept 30 J6 4 0 0 4 0 0 30 J7 400 0 Depreciation Expense -- Delivery Van ACCOUNT NO. 616 Sept 30 J6 3 0 0 3 0 0 30 J7 300 0 Repairs and Maintenance -- Delivery Van ACCOUNT NO. 623 Sept 21 CP9 4 3 0 4 3 0 30 J7 430 0 Store Salaries Expense ACCOUNT NO. 626 Sept 30 CP9 3300 3300 30 J6 450 3750 30 J7 3750 0 Store Supplies Expense ACCOUNT NO. 659 Sept 30 J6 5 9 3 5 9 3 30 J7 593 0 Copyright 2004 by John Wiley & Sons, Inc. 13
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 14 GENERAL LEDGER Insurance Expense ACCOUNT NO. 722 Sept 30 J6 1 5 0 1 5 0 30 J7 150 0 Office Salaries Expense ACCOUNT NO. 727 Sept 30 CP9 1200 1200 30 J6 180 1380 30 J7 1380 0 Office Supplies Expense ACCOUNT NO. 728 Sept 30 J6 8 1 5 8 1 5 30 J7 815 0 Rent Expense ACCOUNT NO. 729 Sept 29 CP9 2000 2000 30 J7 2000 0 Utilities Expense ACCOUNT NO. 732 Sept 29 CP9 1 3 5 1 3 5 30 CP9 100 235 30 J7 235 0 Bank Service Charge ACCOUNT NO. 746 Sept 30 J5 1 0 1 0 30 J7 1 0 0 Copyright 2004 by John Wiley & Sons, Inc. 14
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 15 GENERAL LEDGER Bicycle Rental Revenue ACCOUNT NO. 805 Date Item Ref. Debit Credit Credit Sept 21 CR4 3 0 0 3 0 0 30 J7 300 0 interest Expense ACCOUNT NO. 905 Sept 30 J6 1 1 5 1 1 5 30 J7 115 0 Copyright 2004 by John Wiley & Sons, Inc. 15
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 16 ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER NAME Billy s Bike and Skate Rental ADDRESS 1326 Custer Street, Normal, IL 60010 Date Item Ref. Debit Credit Aug 25 Invoice 519 S4 2350 2350 Sept 1 Invoice 524 S5 2500 4850 2 CR4 2350 2500 4 Cr. Memo 12 J5 3 0 0 2200 9 CR4 2200 0 28 Invoice 533 S5 1700 1700 NAME Evergreen Parks and Recreation ADDRESS R. R. Box 11, Scenic, IL 61530 Date Item Ref. Debit Credit Aug 26 Invoice 520 S4 2800 2800 31 Invoice 523 S4 3400 6200 Sept 3 CR4 2800 3400 8 CR4 3400 0 18 Invoice 528 S5 4300 4300 25 Invoice 531 S5 1200 5500 28 CR4 4300 1200 NAME Normal Park District ADDRESS 1925 School Street, Normal, IL 60128 Date Item Ref. Debit Credit Aug 24 Invoice 518 S4 8 0 0 8 0 0 Sept 15 Invoice 526 S5 2400 3200 17 CR4 800 2400 24 Invoice 530 S5 5250 7650 24 CR4 2400 5250 Copyright 2004 by John Wiley & Sons, Inc. 16
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 17 ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER NAME State University Cycling Club ADDRESS Horton Student Center, Normal, IL 60024 Date Item Ref. Debit Credit Aug 31 Invoice 521 S4 3650 3650 Sept 8 Invoice 525 S5 2300 5950 10 CR4 3650 2300 16 CR4 2300 0 28 Invoice 532 S5 2180 2180 NAME Twin Cities Bicycle Tours ADDRESS 112 Towanda Ave., Bloomington, IL 61209 Date Item Ref. Debit Credit Aug 24 Invoice 517 S4 4000 4000 31 Invoice 522 S4 4200 8200 Sept 3 CR4 4000 4200 10 CR4 4200 0 18 invoice 527 S5 1800 1800 24 Invoice 529 S5 2800 4600 24 Credit Memo 13 J5 2 0 0 4400 28 CR4 1600 2800 NAME Wheels Unlimited ADDRESS 200 Tenth St. Bloomington, IL 61210 Date Item Ref. Debit Credit Aug 18 invoice 516 S4 2500 2500 Copyright 2004 by John Wiley & Sons, Inc. 17
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 18 ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME Avanti Racers, Inc. ADDRESS 323 West Seventh St., San Pedro, CA 90731 Date Item Ref. Debit Credit Aug 24 Invoice 815 P7 2000 2000 31 Invoice 898 P7 1600 3600 Sept 2 CP9 2000 1600 9 CP9 1600 0 28 Invoice 910 P8 2000 2000 NAME Bicycle Transit Authority ADDRESS 418 S. Varney St., Seattle, WA 98124 Date Item Ref. Debit Credit Aug 31 Invoice 741 P7 2800 2800 Sept 4 CP9 2800 0 18 Invoice 837 P8 3500 3500 23 Invoice 898 P8 8 2 5 4325 28 CP9 3500 825 NAME Gita Bicycles & Frames ADDRESS 500 Third Ave., Claremont, CA 91711 Date Item Ref. Debit Credit Aug 5 Invoice 811 P7 6200 6200 Sept 1 CP9 6200 0 8 Invoice 993 P8 2260 2260 15 J5 250 2010 22 invoice 1023 P8 6560 8570 28 CP9 1000 7570 NAME Tandems USA ADDRESS 331 Somerville Ave., Somerville, MA 02143 Date Item Ref. Debit Credit Aug 25 Invoice 1021 P7 1200 1200 Sept 4 CP9 1200 0 9 Invoice 1108 P8 3200 3200 24 Invoice 1132 P8 9 5 0 4150 22 CP9 3200 950 Copyright 2004 by John Wiley & Sons, Inc. 18
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 19 ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME Terry Cycling Apparel ADDRESS 1264 E. Walnut St., Gardena, CA 90248 Date Item Ref. Debit Credit Aug 27 Invoice 214 P7 8 0 0 8 0 0 Sept 3 CP9 8 0 0 0 4 Invoice 230 P8 4 5 0 4 5 0 14 CP9 4 5 0 0 28 Invoice 309 P8 7 4 0 7 4 0 NAME Tuffy Bicycle Company ADDRESS 102 LaGrange St., Greenville, IN 84329 Date Item Ref. Debit Credit Aug 5 Invoice 1312 P7 3000 3000 Sept 2 CP9 3000 0 17 Invoice 1417 P8 3800 3800 24 Invoice 1511 P8 1400 5200 23 CP9 3800 1400 Copyright 2004 by John Wiley & Sons, Inc. 19
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 20 Continuous Checkbook for September Ck No. Date Checks Deposits Sept. 1 83 00 1 2 315 1 6200 9540 11640 2 3 316 2 2 9 4 0 8 7 0 0 3 4 317 2 1 9 6 0 6 7 4 0 4 5 318 3 784 5956 5 6 319 3 1 4 0 0 4 5 5 6 6 7 320 4 1 5 0 0 3 0 5 6 7 8 321 4 2744 312 8 9 322 4 1188 8967 8091 9 10 8 1780 9871 10 11 323 9 1 5 6 8 8 3 0 3 11 12 324 10 1 2 0 0 7 1 0 3 12 13 325 11 248 13181 20036 13 14 326 14 4 4 1 1 9 5 9 5 14 15 327 14 1 2 5 1 9 4 7 0 15 16 15 7 7 8 0 2 7 2 5 0 16 17 328 17 1 1 0 0 2 6 1 5 0 17 18 329 18 1 1 0 2 6 0 4 0 18 19 330 18 3000 3054 26094 19 20 331 21 4 3 0 2 5 6 6 4 20 21 22 3 6 2 5 2 9 2 8 9 21 22 332 22 3 1 6 8 2 6 1 2 1 22 23 333 23 3 7 2 4 2 2 3 9 7 23 24 334 24 1 6 5 2 2 2 3 2 24 25 335 24 1 3 0 0 2 0 9 3 2 25 26 25 2 6 5 2 2 3 5 8 4 26 27 336 28 1 0 0 0 2 2 5 8 4 27 28 337 28 3 4 3 0 1 9 1 5 4 28 29 338 29 3 0 0 1 8 8 5 4 29 30 339 29 1 3 5 1 8 7 1 9 30 31 340 29 2 0 0 0 1 6 7 1 9 31 32 341 30 100 4642 21261 32 33 30 5 7 8 2 2 7 0 4 3 33 34 Bank 34 35 Rec 30 1 0 2 7 0 3 3 35 36 36 37 37 38 38 39 39 40 40 41 41 42 42 43 43 44 44 45 45 46 46 47 47 48 48 49 49 50 50 51 51 Original Deposit Tickets for September Date Checks Sept. 4 2-3 / 710 2 3 0 3 1 70-107 / 711 2 7 4 4 2 70 / 7025 / 2711 3 9 2 0 3 8967 4 5 11 70-107 / 711 3 3 3 2 6 2-3 / 710 2 1 5 6 7 70-7025 / 2711 3 5 7 7 8 70-7025 / 2711 4 1 1 6 9 13181 10 11 18 70-7025 / 2711 2 2 5 4 12 2-3 / 710 8 0 0 13 3054 14 15 25 2-3 / 710 3 0 0 16 2-3 / 710 2 3 5 2 17 2652 18 19 30 70-7025 / 2711 1 5 6 8 20 70-107 / 711 4 2 1 4 21 5782 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 Copyright 2004 by John Wiley & Sons, Inc. 20
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 21 CAMPUS CYCLE SHOP Bank Reconciliation September 30, 1 per bank statement 26107 1 2 2 3 Add: Deposits in transit, 9/30 3 4 4642 4 5 5782 10424 5 6 6 7 Subtract: Outstanding Checks 7 8 750 8 9 2940 9 10 1568 10 11 110 11 12 165 12 13 3430 13 14 300 14 15 135 15 16 100 9498 16 17 27033 17 18 18 19 Book 27043 19 20 Subtract: Bank Service Charge 10 20 21 27033 21 22 22 23 23 24 24 Copyright 2004 by John Wiley & Sons, Inc. 21
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 22 CAMPUS CYCLE SHOP Worksheet For the Month Ended September 30, Acct. Trial No. Account Title. Debit Credit 1 101 Cash 27033 1 2 112 Accounts Receivable 1 56 30 2 3 120 Merchandise Inventory 2 38 73 3 4 125 Office Supplies 1115 4 5 127 Store Supplies 1218 5 6 130 Prepaid Insurance 36 00 6 7 155 Store Equipment 3 84 00 7 8 156 Accumulated Depreciation -- Store Equipment 22400 8 9 165 Delivery Van 21600 9 10 166 Accumulated Depreciation -- Delivery Van 13200 10 11 201 Accounts Payable 13485 11 12 212 Salaries Payable 12 13 230 Interest Payable 400 13 14 265 Notes Payable 23000 14 15 301 Greg Jordan, Capital 53410 15 16 306 Greg Jordan, Drawing 45 00 16 17 401 Sales 49570 17 18 412 Sales Returns and Allowances 5 00 18 19 414 Sales Discounts 664 19 20 420 Repair Service Revenue 4227 20 21 505 Cost of Goods Sold 3 45 59 21 22 610 Advertising Expense 1 25 22 23 615 Depreciation Expense -- Store Equipment 23 24 616 Depreciation Expense -- Delivery Van 24 25 623 Repairs and Maintenance -- Delivery Van 4 30 25 26 626 Store Salaries Expense 33 00 26 27 659 Store Supplies Expense 27 28 722 Insurance Expense 28 29 727 Office Salaries Expense 12 00 29 30 728 Office Supplies Expense 30 31 729 Rent Expense 2000 31 32 732 Utilities Expense 235 32 33 746 Bank Service Charge 10 33 34 805 Bicycle Rental Revenue 300 34 35 905 Interest Expense 35 36 179992 179992 36 37 Net Income 37 38 38 39 39 40 40 Copyright 2004 by John Wiley & Sons, Inc. 22
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 23 Adjustments Adjusted Trial Income Statement Sheet Debit Credit Debit Credit Debit Credit Debit Credit 1 27033 27033 1 2 15630 15630 2 3 h 203 23670 23670 3 4 a 815 300 300 4 5 b 593 625 625 5 6 c 150 3450 3450 6 7 38400 38400 7 8 e 400 22800 22800 8 9 21600 21600 9 10 f 300 13500 13500 10 11 13485 13485 11 12 d 630 630 630 12 13 g 115 515 515 13 14 23000 23000 14 15 53410 53410 15 16 4500 4500 16 17 49 570 4 9570 17 18 500 500 18 19 664 664 19 20 4227 4227 20 21 h 203 34762 34762 21 22 125 125 22 23 e 400 400 400 23 24 f 300 300 300 24 25 430 430 25 26 d 450 3750 3750 26 27 b 593 593 593 27 28 c 150 150 150 28 29 d 180 1380 1380 29 30 a 815 815 815 30 31 2000 2000 31 32 235 235 32 33 10 10 33 34 300 300 34 35 g 115 115 115 35 36 3206 3206 181437 181437 46229 54097 135208 127340 36 37 7868 7868 37 38 54097 54097 135208 1352 08 38 39 39 40 40 Copyright 2004 by John Wiley & Sons, Inc. 23
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 24 CAMPUS CYCLE SHOP Schedule of Accounts Receivable September 30, Billy s Bike and Skate Rental 1700 Evergreen Parks and Recreation 1200 Normal Park District 5250 State University Cycling Club 2180 Twin Cities Bicycle Tours 2800 Wheels Unlimited 2500 Total Accounts Receivable 1 5 6 3 0 CAMPUS CYCLE SHOP Schedule of Accounts Payable September 30, Avanti Racers, Inc. 2000 Bicycle Transit Authority 8 2 5 Gita Bicycle & Frames 7570 Tandems USA 9 5 0 Terry Cycling Apparel 7 4 0 Tuffy Bicycle Company 1400 Total Accounts Payable 1 3 4 8 5 Copyright 2004 by John Wiley & Sons, Inc. 24
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 25 CAMPUS CYCLE SHOP Income Statement For the Month Ended SEPTEMBER 30, 1 Revenues 1 2 Sales 49 570 2 3 Less: Sales returns and allowances 5 0 0 3 4 Sales discounts 6 6 4 1 1 6 4 4 5 Net sales 48406 5 6 6 7 Repair Service Revenue 4227 7 8 8 9 Total Revenues 52633 9 10 Cost of Goods Sold 34762 10 11 Gross Profit 17871 11 12 Operating Expense 12 13 Selling Expenses 13 14 Store Salary Expense 3 7 5 0 14 15 Store Supplies Expense 5 9 3 15 16 Repair & Maintenance Expense - Delivery Van 4 3 0 16 17 Depreciation Expense - Store Equipment 4 0 0 17 18 Depreciation Expense - Delivery Van 3 0 0 18 19 Advertising Expense 1 2 5 19 20 5598 20 21 Administrative Expenses 21 22 Rent Expense 2 0 0 0 22 23 Office Salaries Expense 1 3 8 0 23 24 Office Supplies Expense 8 1 5 24 25 Utilities Expense 2 3 5 25 26 Insurance Expense 1 5 0 26 27 Bank Service Charge 1 0 27 28 Total Administrative Expense 4 5 9 0 28 29 Total Operating Expense 1 0 1 8 8 29 30 30 31 Income from Operations 7683 31 32 32 33 Other Revenues and Gains 33 34 Bicycle Rental 3 0 0 34 35 Other Expenses and Losses 35 36 Interest Expense 1 1 5 1 8 5 36 37 37 38 Net Income 7868 38 39 39 40 40 Copyright 2004 by John Wiley & Sons, Inc. 25
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 26 Campus Cycle Shop Owner s Equity Statement For the Month Ended September 30, 1 Greg Jordan Capital, September 1 5 3 4 1 0 1 2 Add: Net Income for September 7 8 6 8 2 3 61278 3 4 4 5 Less: Drawings 4 5 0 0 5 6 Greg Jordan Capital, September 30 5 6 7 7 8 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 Copyright 2004 by John Wiley & Sons, Inc. 26
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 27 Campus Cycle shop Sheet September 30, 1 Assets 1 2 Current Assets 2 3 Cash 27033 3 4 Accounts Receivable 15630 4 5 Merchandise Inventory 23670 5 6 Office Supplies 300 6 7 Store supplies 625 7 8 Prepaid Insurance 3450 8 9 Total Current Assets 70708 9 10 10 11 Property, Plant and Equipment 11 12 Store Equipment 38400 12 13 Less: Accumulated Depreciation - Store Equipment 22800 15600 13 14 14 15 Delivery Van 21600 15 16 Less: Accumulated Depreciation - Delivery Van 13500 8100 16 17 Total Property, Plant and Equipment 2 3 7 0 0 17 18 18 19 Total Assets 94408 19 20 20 21 Liabilities and Owner s Equity 21 22 22 23 Current Liabilities 23 24 Accounts Payable 13485 24 25 Salaries Payable 630 25 26 Interest Payable 515 26 27 Total Current Liabilities 14630 27 28 28 29 Long-Term Liabilities 29 30 Notes Payable 23000 30 31 Total Liabilities 37630 31 32 32 33 Owner s Equity 33 34 Greg Jordan, Capital 56778 34 35 Total Liabilities and Owner s Equity 9 4 4 0 8 35 36 36 37 37 38 38 39 39 Copyright 2004 by John Wiley & Sons, Inc. 27
Campus Cycle Solution 2004.qrk 3/16/04 11:39 AM Page 28 CAMPUS CYCLE SHOP Post-Closing Trial September 30, Debit Credit 101 Cash 27033 112 Accounts Receivable 1 5 6 3 0 120 Merchandise Inventory 2 3 6 7 0 125 Office Supplies 300 127 Store Supplies 625 130 Prepaid Insurance 3450 155 Store Equipment 38400 156 Accum. Depre.-Store Equipment 2 2 8 0 0 165 Delivery Van 21600 166 Accum. Depre.-Delivery Van 1 3 5 0 0 201 Accounts Payable 13485 212 Salaries Payable 630 230 Interest Payable 515 265 Notes Payable 23000 301 Greg Jordan, Capital 56778 1 3 0 7 0 8 1 3 0 7 0 8 Copyright 2004 by John Wiley & Sons, Inc. 28