Forensic Accounting: Case Study

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 Carefully follow the instructions in file “Forensic Accounting CaseStudy1.pdf”  as well as the data provided in the additional exhibits.  Exhibit 2 has been transformed into an excel file. I have analyzed the data in a few different ways and I have attached it to the question. I need a 1-1.5 page memorandum answering the case study questions located in the “Forensic Accounting CaseStudy1.pdf” file. I have also included a sample version of a memorandum so you can understand how it should be written. Thank you.

  • Memorandum

    To: Tech Startup Inc. Controller’s Group Files

    From: [Student Name], Controller’s Group Analyst

    Re: Lease of 15 Tech Drive

    Date: X/X/XXXX

    Facts

    See facts as given in case study.

    Issues/ Question

    Should the lease arrangement be classified as an operating lease or as a capital lease?

     

    Analysis

    Lessee must determine whether to account for its lease as a capital or operating lease. ASC 840-10-25-1 provides the following lease classification criteria:

    25-1 A lessee and a lessor shall consider whether a lease meets any of the following four criteria as part of classifying the lease at its inception under the guidance in the Lessees Subsection of this Section (for the lessee) and the Lessors Subsection of this Section (for the lessor):

    a. Transfer of ownership. The lease transfers ownership of the property to the lessee by the end of the lease term….

    b. Bargain purchase option. The lease contains a bargain purchase option.

    c. Lease term. The lease term is equal to 75 percent or more of the estimated economic life of the leased property…

    d. Minimum lease payments. The present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor…

    In addition to these four criteria, ASC 840 provides the following guidance regarding lessees’ application of lease classification criteria:

    25-29 If at its inception a lease meets any of the four lease classification criteria in paragraph 840-10-25-1, the lease shall be classified by the lessee as a capital lease.

    Accordingly, Lessee has analyzed each criterion individually to determine whether it is met for this lease.

    Analysis—Transfer of Ownership

    The lease does not call for transfer of ownership at the end of the lease term. This condition for capital lease treatment is therefore not met.

    Analysis—Bargain Purchase Option

    Lessee is given the option to purchase the leased property at the end of the lease term for a price ($16.25M) that is below the estimated lease-end fair value of the property ($17M). This contractual provision bears further consideration.

    The glossary of ASC 840-10 defines a bargain purchase option as:

    A provision allowing the lessee, at his option, to purchase the leased property for a price that is sufficiently lower than the expected fair value of the property at the date the option becomes exercisable that exercise of the option appears, at lease inception, to be reasonably assured.

    Little other guidance is provided within the Codification to assist a lessee in determining whether a purchase option is, in fact, a bargain. However EY’s guide book, Lease Accounting (2014), Section 2.4 (page 2), offers additional guidance for applying this condition. In particular, EY notes that—when determining whether exercise of a purchase option meets the threshold of being reasonably assured—entities should consider factors such as (1) how far into the future the purchase option is being offered, where a longer term could decrease the likelihood of exercise, and (2) the stability of the property’s value. An excerpt of this guidance follows:

    The further into the future a lessee is required to consider, the less precise will be the estimates of future needs for the leased asset. Also, the fair value of certain types of assets is more likely to change over time than will the value of other types of assets (e.g., the future value of a technology asset, such as a computer, is more difficult to predict than the future value of a relatively stable asset, such as a fully-leased commercial office building located in a prime area).

    Accordingly, the further into the future the option date, the lower the option price must be in relation to the estimated future fair value to reasonably assure exercise. Also, the relationship at a future point in time between the option price and the estimated future fair value should be lower for an asset subject to significant changes in value than would be the case for an asset having a relatively stable value.

    In this case, the determination is judgmental. Although the option is fairly far into the future (10 years is somewhat long given that the company is a tech startup whose needs could change), the building is supposedly in a prime area and thus a $750K discount off of its purchase price could be compelling.

    In Section 2.4.3 of its Lease Accounting guide, EY goes on to emphasize (in Illustration 2-2) that external factors should be considered when determining whether exercise of a purchase option is reasonably assured:

    Illustration 2-2: Determining whether a bargain purchase option exists

    Assume a company leases equipment from a lessor under a 5-year lease that includes an option for the lessee to purchase the equipment at the end of the lease term for $900,000. The lessee estimates that the equipment will have a fair value at the end of the lease term of $1,000,000. The equipment is expected to be readily available in the market at the end of the lease term.

    The lessee determined that the purchase option would not be considered reasonably assured of exercise and therefore a bargain because while it is priced below estimated fair value, the discount is not so significant that exercise rises to the level of reasonably assured. Therefore, the option does not qualify as a bargain purchase option.

    Again, consistent with this guidance, the purchase option in this case is close enough to the estimated future fair value of the building that its exercise likely does not rise to the level of being reasonably assured. This is especially true in this case when you consider the company’s specific situation as a tech startup. Accordingly, a bargain purchase option is not deemed to exist.

    Analysis—Lease Term

    This lease is for a 10-year term, which is 25% of the estimated useful life of the leased property. As this is below the 75% threshold for capital lease classification, this condition is not met.

    Considering also the definition of lease term, any bargain renewal options should also be included in the lease term. In this case, no such renewal options are present.

    Analysis—Minimum Lease Payments

    Lessee will pay $50,000 monthly plus a contingent amount determined as 1% of its sales. Lessee must evaluate whether these rental payments exceed 90% of the fair value of the leased property and, accordingly, would result in capital lease treatment.

    ASC 840-10-25-4 provides the following guidance indicating that lease payments based on sales volume should not be considered when calculating the minimum lease payments payable under the lease:

    > Minimum-Lease-Payments Criterion

    25-4 This guidance addresses what constitutes minimum lease payments under the minimum-lease-payments criterion in paragraph 840-10-25-1(d) from the perspective of the lessee and the lessor. Lease payments that depend on a factor directly related to the future use of the leased property, such as machine hours of use or sales volume during the lease term, are contingent rentals and, accordingly, are excluded from minimum lease payments in their entirety. (Example 6 [see paragraph 840-10-55-38] illustrates this guidance.) [Emphasis added]

    Example 6 of Topic 840-10’s implementation guidance further illustrates this point, stating that rental payments based on sales are contingent, and should not be counted in determining minimum lease payments. The guidance states that: “the future sales for the lease term do not exist at lease inception…”

    > > Example 6: Applying the Definition of Contingent Rentals—Rentals Contingent on Factor Related to Future Use

    55-38 This Example illustrates paragraph 840-10-25-4, which states that lease payments that depend on a factor directly related to the future use of the leased property, such as machine hours or use of sales volume during the lease term, are contingent rentals and, accordingly, are excluded from minimum lease payments in their entirety. Assume that a lease agreement for retail store space stipulates a monthly base rental of $200 and a monthly supplemental rental of one-fourth of one percent of monthly sales volume during the lease term. Even if the lease agreement is a renewal for store space that had averaged monthly sales of $25,000 for the past 2 years, minimum lease payments would include only the $200 monthly base rental; the supplemental rental is a contingent rental that is excluded from minimum lease payments. The future sales for the lease term do not exist at lease inception, and future rentals would be limited to $200 per month if the store were subsequently closed and no sales were made thereafter. [Emphasis added]

    Therefore, the 1% of sales (an estimated $20,000 per month) shall be excluded when determining the minimum lease payments for purposes of the 90% test.

    Therefore, the fixed monthly rental payment shall be used to evaluate whether the minimum lease payments condition is met. These payments amount to: $50,000 per month, times 12 months, times 10 years, equals a total lease payment of $6 million (ignoring discounting). This is less than 90% of the fair value of the leased property.

    Notably, had Lessee concluded that the lease contained a bargain purchase option, this option would also need to be included when determining minimum lease payments, per par. 25-6:

    25-6 If the lease contains a bargain purchase option, only the minimum rental payments over the lease term and the payment called for by the bargain purchase option shall be included in the minimum lease payments.

    However, given our conclusion that no bargain purchase option is present, this amount shall be excluded from the calculation, and the 90% condition for capital lease treatment is not met.

    Conclusion

    This lease shall be classified as an operating lease. None of the four conditions for capital lease accounting was met. Namely, (1) the lease does not transfer ownership at the end of the lease term, (2) the lease does not contain a bargain purchase option that is reasonably assured of being exercised, (3) the lease term is less than 75% of the economic life of the leased asset, and (4) the minimum lease payments are less than 90% of the fair value of the leased asset.

    Judgment was involved in determining that the end-of-lease term purchase option is not considered a bargain. In this case, the Lessee’s business circumstances (of being a tech startup) were considered, in addition to the length into the future (10 years) at which this option is offered, and the amount of discount versus the expected fair value of the leased asset, which was not deemed significant enough to cause the purchase option to rise to the level of being reasonably assured.

 
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Activity-Based Costing and Management:

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Running Head: SOLUTIONS TO MANAGERIAL ACCOUNTING EXERCISES 1

 

SOLUTIONS TO MANAGERIAL ACCOUNTING EXERCISES 13

 

 

 

 

 

 

 

 

 

 

 

 

 

Solutions to Managerial Accounting Exercises

Student’s Name:

Course Name & Number:

Instructor’s Name:

Institution:

Date Submitted:

 

 

 

 

Chapter 5: Activity-Based Costing and Management:

Exercise 5-26 Page 201

1. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one lens would be what amount?

Material-handling cost per lens:

$50,000 x 200 = $1,000

[(25×200) Ă· (25×200)]A

A Direct-labor hour’s total number

Therefore, material-handling cost per lens is $1,000

 

2. Answer the same question a in requirement (1), but for mirrors.

Material-handling cost per mirror:

$50,000 x 200 = $1,000

[(25×200) Ă· (25×200)]A

A Direct-labor hour’s total number

Therefore, material-handling cost per mirror is $1,000

3. Under activity-based costing (ABC), the material-handling activity costs allocated to one lens would be what amount? The cost driver for the material-handling activity is the number of material moves.

Material-handling cost per lens:

[($50,000 ÷ (5 + 15)*)] x 5** = $500

25

Where: * Material moves’ total number

** The lens product line material moves’ number

Therefore, the material-handling cost per lens is $500

4. Answer the same question as in requirement (3), but for mirrors

Material-handling cost per mirror:

[($50,000 ÷ (5 + 15)*)] x 15** = $1,500

25

Where: * Material moves’ total number

** The mirror product line material moves’ number

Exercise 5-27 Page 201

1. Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following product-costing systems. (Round to the nearest dollar)

a. Traditional system, which assigns overhead on the basis of direct-labor cost

Quality-control costs = 14.5% x Direct-labor Costs

Quality-control costs assigned to Satin Sheen line = 14.5% x $27,500

= $3,988

b. Activity-based costing

Activity: Pool Rate: Quantity for Satin Sheen: Assigned Cost
Incoming material inspection $11.50 Per Type 12 Types $138
In-Process Inspection 0.14 Per Unit 17.500 Units $2,450
Product Certification 77.00 Per Order 25 Orders $1,925
Total Quality-Control Costs Assigned     $4,513

 

2. Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality-control costs? By what amount?

The traditional product-costing system undercosts Satin Sheen product line with respect to quality-control costs, by $525 = $4,513 – $3,988

Exercise 5-28 Page 202

1. Divide these costs into activity cost pools, and identify a cost driver for assigning each pool of costs to products. Calculate the total cost in each activity cost pool.

Cost Pool 1: Unit-Level I

Raw materials and components 2,950,000 Yen

Inspection 30,000 Yen

Total Cost 2,980,000 Yen

Cost driver for assigning pool 1 is raw-material cost

Cost Pool 2 : Unit-Level I

Depreciation, Machinery 1,400,000 Yen

Electricity, Machinery 120,000 Yen

Equipment Maintenance, Wages 150,000 Yen

Equipment Maintenance, Parts 30,000 Yen

Total Cost 1,700,000 Yen

Cost driver for assigning pool 2 is number of units produced

Cost Pool 3: Batch-Level I

Setup Wages 40,000 Yen

Total Cost 40,000 Yen

Cost driver for assigning pool 3 is number of production runs.

Cost Pool 4: Product-Sustaining Level

Engineering Design 610,000 Yen

Total Cost 610,000 Yen

Cost driver for assigning pool 4 is product parts number

Cost Pool 5: Facility-Level I

Depreciation, Plant 700,000 Yen

Insurance, Plant 600,000 Yen

Electricity, Light 60,000 Yen

Custodial Wages, Plant 40,000 Yen

Property Taxes 120,000 Yen

Natural Gas, Heating 30,000 Yen

Total Cost 1,550,000 Yen

Cost driver for assigning pool 5 include costs allocated towards supporting departments, costs allocated to products, square footage, and number of nits manufactured.

Exercise 5-33 Page 203

The activities of Finger Lakes Winery can be classified as:

U: Unit-level I

B: Batch-level I

P: Product-sustaining-level

F: Facility-level

 

 

 

Activity: Classification:
(1) P
(2) P
(3) P
(4) P
(5) P
(6) P
(7) P
(8) B
(9) B
(10) B
(11) B
(12) B
(13) U
(14) U
(15) U
(16) U
(17) B
(18) F
(19) F

 

 

 

Exercise 5-34 Page 204

Choose two activities or accounts from each of the four classifications and explain why you agree or disagree with the ABC project team’s classification.

Carrier Corporation for each of the activity levels the definitions that include:

· Unit: occurs every time a unit is produced. For example utility cost for production equipment. It more often than not relates directly to production volume

· Batch: performed for each batch acquired as well as produced. For example, moving raw materials between the production line and stock room, besides setting-up a machine for a run.

· Product-sustaining: performed towards maintaining product designs, parts, models, and processes. For example, maintaining materials bill, expediting parts and issuing product changes orders. To support key manufacturing capability besides process, sustaining activities are mandatory.

· Facility: performed towards enabling production. Therefore, at the most basic level they are fundamental towards supporting the business entity. For example cleaning and managing the structure.

Without a doubt, these definitions are consistent with those provided in the chapter. An argument for the ABC project team’s classification would be that the activity was characterized by the activity-level classification definition. An argument against the ABC project team’s classification would be that the specific activity did not satisfy the definition. For instance, conveying materials is a batch-level activity for the reason that a raw material should be shifted to the product location whenever a production batch besides run is commenced. Whereas, a facility-level account includes depreciation since plant and equipment correspond to the production facilities provision cost in which manufacturing can occur.

Exercise 5-35 Page 204:

1. Prepare a schedule showing Redwood Company’s total selling cost for each order size and the per-skein selling cost within each order size.

Redwood Company

Selling Costs Computation by Order Size and Skein within Each Order Size

  Order Size
  Small Medium Large Total
Sales CommissionsA[Unit Cost: $675,000/225,000 = $3.00 Per Box] $6,000 $135,000 $534,000 $675,000
CatalogsB [Unit Cost: $295,400/590,800 =$0.50 Per Catalog 127,150 105,650 62,600 295,400
Costs of Catalog SalesC [Unit Cost: $105,000/175,000 = $0.60 Per Skein] 47,400 31,200 26,400 105,000
Credit and CollectionD [Unit Cost: $60,000/6,000 = $10 Per Order 4,850 24,150 31,000 60,000
Total Cost Per Order Size $185,400 $296,000 $854,000 $1,135,400
Units [Skeins] SoldE 103,000 592,000 2,180,000  
Unit Cost Per Order SizeE $1.80 $0.50 $0.30  

A Retail Sales in Boxes x Unit Cost:

Small: 2,000 x $3

Medium: 45,000 x $3

Large: 178,000 x $3

B Catalogs Distributed x Unit Cost

C Catalog Sales x Unit Cost

D Number of Retail Orders x Unit Cost

E Small: [2,000 x 12] + 79,000 = 103,000

Medium: [45,000 x 12] + 52,000 = 592,000

Large: [178,000 x 12] + 44,000 = 2,180,000

Total Cost Per Order Size Ă· Units Sold

2. Explain how the analysis of the selling costs for skeins of knitting yarn is likely to impact future pricing and product decisions at Redwood Company.

Selling costs analysis demonstrates that small orders cost more than large orders; which could influence management towards marketing large orders more insistently as well as offering discounts for them.

Chapter 6: Activity-Analysis, Cost Behavior, and Cost Estimation:

Exercise 6-25 Page 259:

1. Use the high-low method to estimate the company’s energy cost behavior and express it in equation form.

The High-low Method:

Variable Cost/Pint = (Energy cost @ High level – Energy Cost/Pint @ Low Level)

(High Level – Low Level)

= (24,100 – 22,100)

(41,000 – 21,000)

= $2,000 Ă· 20,000 Pints Produced = $0.10/Pint

 

 

Total Cost @ 41,000 Pints = $24,000

Less Variable Cost @ 41,000 Pints (41,000 x $0.10) = $4,100

Fixed Cost = $20,000

Let:

Y represent Total Energy Cost

X represent Number of pints produced

Y = 0.10X + $20,000

2. Predict the energy cost for a month in which 26,000 pints of applesauce are produced.

Y = 0.10X + $20,000

Y = (0.10 x 26,000) + $20,000 = $22,600

Therefore, the energy cost for a month in which 26,000 pints of applesauce are produced is $22,600

Exercise 6-30 Page 261:

1. Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month.

Variable Cost/tour mile = (12,500 – 11,000)/(20,000 – 8,000)

= 1,500 Ă· 12,000 = 0.125 per tour mile

Total Cost = $12,500

Total Variable Cost = 0.125 x 20,000 = (2,500)

Fixed Cost = 10,000 real

2. Develop a formula to express the cost behavior exhibited by the company’s maintenance cost.

Let Y represent Total cost

Let X represent Tour miles driven

Therefore, Y = 10,000 + 0.125x

3. Predict the level of maintenance cost that would be incurred during a month when 22,000 tour miles are driven. Remember to express your answer in terms of the real).

Using Y = 10,000 + 0.125x

Y = 10,000 + 0.125 x (22,000) = 12,750 real

Therefore, the level of maintenance cost that would be incurred during a month when 22,000 tour miles are driven is 12,750 real

4. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following information changes: in March there were 21,000 miles traveled and the cost was 12,430 real.

The level of maintenance cost could exceed the cost.

Problem 6-35 Page 263:

For each of the cost items described below, choose the graph (see below) that best represents it.

1. Graph (e)

2. Graph (a)

3. Graph (g)

4. Graph (c)

5. Graph (b)

6. Graph (h)

7. Graph (i)

8. Graph (f)

9. Graph (d)

10. Graph (k)

11. Graph (l)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference:

Hansen, D.R., & Mowen, M.M. (2017). Managerial accounting (8th ed.). Boulverd Mason, OH: Thomson Higher Education.

 
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Accounting And Finance Problems

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Accounting And Finance Problems

Week 3 Assignment and Learning Activity:

 

PLEASE DO NOT BID FOR THIS ASSIGNMENT IF YOU ARE NOT GOOD WITH SOLVING MATH PROBLEMS AND BEING ABLE TO EXPLAIN FINANCIAL TERMS/CONCEPTS.

Week 3 Homework Problems – 8 problems total

Complete the following Workbook Template Week 3Preview the document. Problems E5-2 and E5-6 are from Chapter 5 and P5-5B from the Textbook Student Companion Site. Problems 6-2B and 6-3B from Chapter 6 are located on the Textbook Student Companion Site  Submit your work to your instructor by the posted due date. Show all your work in order to earn full credit.

(Week 3 homework template, chapter 5, problems P5-5B, 6-2B and 6-3B are attached)

Learning Activity

Read the “Continuing Problem Cookie Creations” for Chapter 4 on page 205 of the Textbook. Go to the Textbook’s Student Companion Website, www.wiley.com/college/kimmel, to see the completion of this problem. Using the Excel file BUS591 Final Project TemplatePreview the documentprovided in Module 6, complete the requirements listed on the “Instructions” tab of the excel spreadsheet for Chapter 4.

For Part D, post the adjusting entries to the general ledger accounts, adding to the balances you did in Part B.  Be sure to total new balances for each account.

(Continuing Problem Cookie Creation for Chapter 4 and Final Project Template are attached)

 

Link to Textbook’s Student Companion for your reference. All problems and supporting documentation are attached – http://bcs.wiley.com/he-bcs/Books?action=index&bcsId=9831&itemId=1118953908

Instructions

Final Project Instructions and Templates
Name: ___________________________________
Final Project
Due by Day 7 of Week 6
This project is worth _20_ points
MAKE SURE TO COMPLETE ALL GRADED REQUIREMENTS LISTED BELOW.
It is recommended that you complete the non-graded requirements for additional practice
All of the templates you need for the project are located in this Workbook.
The instructions and data for the problem is in your Textbook (the “Continuing Cookie Chronicle” at the end of the chapter).
Use the arrow buttons (lower left corner of the window) to navigate through the tabs.
Submit the ENTIRE Workbook (file) to your instructor for the Week 6 Final Project
Column1 Column2
Requirements Sheet in Workbook
Week One
Chapter 1 and 2 “Continuing Cookie Chronicle” – Review the problem and make notes of your answers. Chapter 1 & 2 Notes (PRACTICE)
Week Two
Chapter 3, Part A, prepare journal entries to record the November transactions Journal Entries (PRACTICE)
Chapter 3, Part B, post the journal entries to the general ledger accounts General Ledger (PRACTICE)
Chapter 3, Part C, prepare a trial balance at November 30, 2017 Trial Balance (PRACTICE)
Week Three
Chapter 4, Part A, Journalize the transactions Journal Entries (GRADED)
Chapter 4, Part B, Post the December transactions to the general ledger accounts General Ledger (GRADED)
Chapter 4, Part C, Prepare a trial balance at December 31, 2017 Trial Balance (GRADED)
Chapter 4, Part D, Prepare and post adjusting journal entries for the month of December Adjusting Entries (GRADED)
Chapter 4, Part E, Prepare an adjusted trial balance as of December 31, 2017 Adjusted Trial Balance (GRADED)
Chapter 4, Part F, Prepare an income statement and a retained earnings statement for the 2-month period ending December 31, 2017, and a classified balance sheet as of December 31, 2017 Financial Statements (GRADED)
Chapter 4, Part G, Prepare and post closing entries as of December 31, 2017 Closing Entries (GRADED)
Chapter 4, Part H, Prepare a post-closing trial balance Post Closing TB (GRADED)
Week Six
Chapter 13 – Part A, Prepare a horizontal and vertical analysis of the income statement for Cookie & Coffee Creations Inc. Horiz. & Vert. Analysis (GRADED)
Chapter 13 – Part B, Calculate several financial ratios as indicated Financial Ratios (GRADED)

Chapter 1 & 2 Notes

Make any notes from Chapters 1 or 2 here.
NOTE: These notes will NOT be included in your grade for the project. They are for your own reference.

Journal Entries (PRACTICE)

REQUIREMENT #1:
Use the following template for the journal entries from Chapter 3: Continuing Cookie Chronicle.
NOTE: This is for your practice only – it will NOT be graded (solutions are found on the last tab marked “Solutions”).
a) Prepare journal entries to record the November transactions
General Journal
Date Description(Account Name) Debit Credit

General Ledger (PRACTICE)

This sheet will be used for Part B of Chapter 3.
NOTE: This is for your practice only – it will NOT be graded (solutions are found on the last tab marked “Solutions”)
b) Post the journal entries to the following general ledger accounts and compute the account balances
Cash Equipment
Accounts Receivable Website
Accounts Payable Supplies
Unearned Service Revenue Prepaid Insurance
Notes Payable Common Stock
Servcice Revenue Utilities Expense

Trial Balance (PRACTICE)

Part C (Chapter 3)
c) Prepare a trial balance for November 30, 2014
NOTE: This is for your practice only – it will NOT be graded (solutions are found on the last tab marked “Solutions”)
Cookie Creations, Inc.
Trial Balance
November 30, 2017
Debit Credit
Total 3,910 3,910
*Remember debits MUST equal credits – if they do not, then there is an error somewhere. Double-check your calculations and entries.

Journal Entries (GRADED)

REQUIREMENT #1:
Use the following template for the journal entries from Chapter 4: Continuing Cookie Chronicle.
a) Prepare journal entries to record the December transactions.
NOTE: This sheet WILL be graded when you submit your assignment.
General Journal
Date Description (Account Name) Debit Credit

General Ledger (GRADED)

This sheet will be used for Part B of Chapter 3.
REQUIREMENT #2:
Post the journal entries to the following general ledger accounts and compute the account balances.
NOTE: This sheet WILL be graded when you submit your assignment.
Cash Dividends Unearned Service Revenue Retained Earnings
Accounts Receivable Income Summary Supplies Expense Amortization Expense
Service Revenue Supplies
Utilities Expense Prepaid Insurance
Salaries & Wages Expense Equipment
Accumulated Depreciation Equipment Website
Insurance Expense Interest Expense
Accounts Payable Depreciation Expense
Interest Payable Notes Payable
Common Stock Salaries & Wages Payable

Trial Balance (GRADED)

Part C (Chapter 4)
kbliss: kbliss: Use a consistent header/title style for these (e.g., “This sheet will be used for Part C in Chapter 4”).
NOTE: This sheet WILL be graded when you submit your assignment. kbliss: kbliss: “Assignment” should be replaced with “Final Project due in Week Six” for consistency.
c) Prepare a trial balance for December 31, 2017
Cookie Creations, Inc.
Trial Balance
December 31, 2017
Debit Credit
Total 0 0
*Remember debits MUST equal credits – if they do not, then there is an error somewhere. Double-check your calculations and entries.

Adjusting Entries (GRADED)

Chapter 4, Part D: Prepare and post adjusting entries for December.
NOTE: This part WILL be graded when you submit your assignment to the instructor. kbliss: kbliss: “Assignment” should be replaced with “Final Project due in Week Six” for consistency.
General Journal
Date Description (Account Name) Debit Credit

Adjusted TB (GRADED)

Chapter 4, Part E: Prepare an adjusted trial balance.
Note: This part WILL be graded when you submit your assignment to the instructor. kbliss: kbliss: “Assignment” should be replaced with “Final Project due in Week Six” for consistency.
Cookie Creations Inc
Adjusted Trial Balance
December 31, 2017
0 0
*Remember debits MUST equal credits – if they do not, then there is an error somewhere. Double-check your calculations and entries.

Financial Statements (GRADED)

Chapter 4, Part F: Prepare financial statement.
Note: This part WILL be graded when you submit your assignment to the instructor. kbliss: kbliss: “Assignment” should be replaced with “Final Project due in Week Six” for consistency.
You will only be preparing the income statement, statement of retained earning and the balance sheet.
Cookie Creations, Inc. Cookie Creations
kbliss: kbliss: I believe the name of this company should be the same as the other company names listed. If the name should be Cookie Creations, Inc., be sure to include the comma and the period in the correct places.		 Cookie Creations
kbliss: kbliss: I believe the name of this company should be the same as the other company names listed. If the name should be Cookie Creations, Inc., be sure to include the comma and the period in the correct places.
Income Statement Statement of Retained Earnings Balance Sheet
For the Month Ending December 31, 2017 For the Month Ending December 31, 2017 December 31, 2017
Revenues: Retained Earnings, December 1 Current Assets
Add: Net Income
Subtotal
Operating Expenses: Less: Dividends
Retained Earnings, December 31
Total Current Assets 0
Property, Plant & Equipment
Intangible Assets
Total Operating Expenses 0 Total Assets 0
Net Income $ – Liabilities & Stockholder’s Equity
Total Current Liabilities 0
Long- Term Liabilities
Total Liabilities 0
Stockholder’s Equity
Total Stockholder’s Equity 0
Total Liabilities & Stockholder’s Equity $ –
*Remember, assets and liabilities MUST be the same amount. If they are different, then there is an error somewhere. Double-check your calculations and entries.

Closing Entries (GRADED)

Chapter 4 – Part G: Prepare closing entries.
Note: This part WILL be graded when you submit your assignment to the instructor. kbliss: kbliss: “Assignment” should be replaced with “Final Project due in Week Six” for consistency.
Hint: Use the balances for each account which appear on the adjusted trial balance for your closing entries.
General Journal
Date Description (Account Name) Debit Credit

Post Closing TB (GRADED)

Chapter 4 – Part H: Prepare post-closing trial balance.
Note: This part WILL be graded when you submit your assignment to the instructor. kbliss: kbliss: “Assignment” should be replaced with “Final Project due in Week Six” for consistency.
Cookie Creations, Inc.
Post-Closing Trial Balance
December 31, 2017

Horiz. & Vert Analysis (GRADED)

Chapter 13, Part A of the Continuing Cookie Chronicle: Prepare a horizontal and vertical analysis
Note: This part WILL be graded when you submit your assignment to the instructor
Instructions: Prepare a horizontal analysis of the income statement for Cookie & Coffee Creations Inc. using 2019 as a base year (which is a continuation of the Continuing Cookie Chronicle)
Note: Do not use the information presented on the Textbook website, it is different from what is required below. You may refer to the information within Chapter 13 (week 6) for assistance in completing this tab.
COOKIE & COFFEE CREATIONS INC.
Income Statement
For the Year Ended October 31
Horizontal
2020 2019 Difference Analysis
Sales $485,625 $462,500
Cost of goods sold 222,694 208,125
Gross profit 262,931 254,375
Operating expenses
Salaries & wages expense 147,979 146,350
Depreciation expense 17,600 9,100
Other operating expenses 48,186 42,925
Total operating expenses 213,765 198,375
Income from operations 49,166 56,000
Other expenses
Interest expense 413 0
Loss on sale of computer
equipment 2,500 0
Total other expenses 2,913 0
Income before income tax 46,253 56,000
Income tax expense 9,251 14,000
Net income $37,002 $42,000
Prepare a vertical analysis of the income statement for Cookie & Coffee Creations for 2020 and 2019
COOKIE & COFFEE CREATIONS INC.
Income Statement
For the Year Ended October 31
Vertical Vertical
2020 Analysis 2019 Analysis
Sales $485,625 $462,500
Cost of goods sold 222,694 208,125
Gross profit 262,931 254,375
Operating expenses
Salaries & wages expense 147,979 146,350
Depreciation expense 17,600 9,100
Other operating expenses 48,186 42,925
Total operating expenses 213,765 198,375
Income from operations 49,166 56,000
Other expenses
Interest expense 413 0
Loss on sale of computer
equipment 2,250 0
Total other expenses 2,663 0
Income before income tax 46,253 56,000
Income tax expense 9,251 14,000
Net income $37,002 $42,000

Finantial Ratios (GRADED)

Chapter 13, Part B of the Continuing Cookie Chronicle: Calculate the following financial ratios using the information from the financial statements below.
Note: This part WILL be graded when you submit your assignment to the instructor
Note: Do not use the information presented on the Textbook website, it is different from what is required below. You may refer to the information within Chapter 13 (week 6) for assistance in completing this tab.
Instructions: Using the financial statements below, compute the following ratios for 2019 only: Current Ratio, Debt to total Assets, Gross Profit Rate, Profit Margin, Return on Assets, and Return on Common Stockholder’s Equity. Enter your computations in the yellow boxes following the format in the example.
COOKIE & COFFEE CREATIONS INC. EXAMPLE:
Income Statement Name of Ratio = 1,234 = 1.00
For the Year Ended October 31 Ratio 1,234
2020 2019 Your Answers (2019):
Sales $485,625 $462,500 Current = =
Cost of goods sold 222,694 208,125 Ratio
Gross profit 262,931 254,375
Operating expenses Debt to = =
Salaries & wages expense 147,979 146,350 Total Assets
Depreciation expense 17,600 9,100
Other operating expenses 48,186 42,925 Gross Profit = =
Total operating expenses 213,765 198,375 Rate
Income from operations 49,166 56,000
Other expenses Profit = =
Interest expense 413 0 Margin
Loss on sale of computer
equipment 2,500 0 Return on = =
Total other expenses 2,913 0 Assets
Income before income tax 46,253 56,000
Income tax expense 9,251 14,000
Net income $37,002 $42,000 Return on common = =
Stockholder’s Equity
COOKIE & COFFEE CREATIONS INC. NOTE: Dividends on preferred stock were $16,800 in 2019
Balance Sheet
October 31, 2012
Assets 2020 2019
Cash $ 22,324 $ 5,550
Accounts Receivable 3,250 2,710
Inventory 7,897 7,450
Prepaid Expenses 5,800 6,050
Equipment 102,000 75,500
Accumulated depreciation (25,200) (9,100)
Total assets $ 116,071 $ 88,160
Liabilities and Stockholders’ Equity
Accounts Payable 9,251 7,200
Income taxes payable 27,000 27,000
Salaries payable 7,250 1,280
Interest payable 188 0
Note payable – current portion 4,000 0
Note payable – long-term portion 6,000 0
Preferred stock, no par, $6 cumulative – 3,000 and 2,800 shares issued, respectively 15,000 14,000
Common stock, $1 par – 25,180 shares issued 25,180 25,180
Additional paid-in capital – treasury stock 250 250
Retained earnings 20,802 10,800
Total liabilities and stockholders’ equity $ 116,071 $ 88,160

Grading Rubric

Final Project Grading Rubric – 20 points total (20% of overall course grade)
Criteria Excellent Good Poor Very Poor
Parts: 90% to 100% 70% to 89% 50% to 69% Less than 50%
Chapter 4 Part A & B – Journal Entries (4pts) Journal Entries use accurate accounts and amounts; and debits and credits are used correctly. Journal Entries mostly use accurate accounts and amounts; and debits and credits are used correctly. Journal Entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. Journal Entries have some errors in use of accounts and amounts; and debits and credits are not used correctly.
Chapter 4 Part C – Unadjusted Trial Balance. (1pt) Posting is correct leading to an accurate trial balance. Posting is mostly correct leading to a mostly correct trial balance. Posting has several errors leading to a trial balance with several errors. Posting is done poorly or not at all, leading to inaccurate or no trial balance.
Chapter 4 Part D – Adjusting Journal Entries (2pts) Journal Entries use accurate accounts and amounts; and debits and credits are used correctly. Journal Entries mostly use accurate accounts and amounts; and debits and credits are used correctly. Journal Entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. Journal Entries have some errors in use of accounts and amounts; and debits and credits are not used correctly.
Chapter 4 Part E – Posted Adjusted Trial Balance. (2pts) Posting is correct leading to an accurate trial balance. Posting is mostly correct leading to a mostly correct trial balance. Posting has several errors leading to a trial balance with several errors. Posting is done poorly or not at all, leading to inaccurate or no trial balance.
Chapter 4 Part F – Financial Statements (4pts) All three Financial Statements are prepared accurately and in an appropriate format. Two of three Financial Statements are prepared accurately and mostly in an appropriate format, one statement has some errors. One of three Financial Statements are prepared accurately and mostly in an appropriate format, two statements have some errors. One or fewer of three Financial Statements are prepared accurately and mostly in an appropriate format, three or all statements have some errors.
Chapter 4 Part G – Closing Journal Entries (2pts) Journal Entries use accurate accounts and amounts; and debits and credits are used correctly. Journal Entries mostly use accurate accounts and amounts; and debits and credits are used correctly. Journal Entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. Journal Entries have some errors in use of accounts and amounts; and debits and credits are not used correctly.
Chapter 4 Part H- Posted and Post-closingTrial Balance. (1pt) Posting is correct leading to an accurate trial balance. Posting is mostly correct leading to a mostly correct trial balance. Posting has several errors leading to a trial balance with several errors. Posting is done poorly or not at all, leading to inaccurate or no trial balance.
Chapter 13 Horizontal & Vertical Analysis (2pts) Horizontal and Vertical analysis is 90% to 100% correct Horizontal and Vertical analysis is 70% to 89% correct Horizontal and Vertical analysis is 50% to 69% correct Horizontal and Vertical analysis has less than 50% correct answers.
Chapter 13 Financial Ratios (2pts) All ratios are properly calculated with none or only one ratio being incorrect. Most of the ratios are properly calcluated with only two or three ratios being incorrect. There are three or four errors in the calculation of financial ratios There are more than four errors in the calculation of the financial ratios.

Journal Entries Solutions

Solutions for the Practice Exercise (From Chapter 3 of Continuing Cookie Chronicles)
Solutions
kbliss: kbliss: Why is Solutions written twice?
a) Prepare journal entries to record the December transactions.
General Journal
Date Description (Account Name) Debit Credit
Nov. 8 No journal entry required
Nov 8. No journal entry required
Nov. 8 Cash 500
Common Stock 500
Nov. 11 Supplies 95
Cash 95
Nov. 14 Supplies 125
Cash 125
Nov. 15 Equipment 300
Common Stock 300
Nov. 16 Cash 2,000
Notes Payable 2,000
Nov. 17 Equipment 900
Cash 900
Nov. 18 No journal entry required
Nov. 25 Cash 60
Unearned Service Revenue 60
Nov. 29 Cash 100
Service Revenue 100
Nov. 30 Website 600
Accounts Payable 600
Nov. 30 Prepaid Insurance 1,200
Cash 1,200
Nov. 30 Accounts Receivable 300
Servcie Revenue 300
Nov. 30 Utilities Expense 50
Accounts Payable 50
Total 6,230 6,230

General Ledger Solutions

This sheet will be used for Part B of Chapter 3.
Solutions
kbliss: kbliss: Why is Solutions written here?
Post the journal entries to the following general ledger accounts and compute the account balances.
Cash Equipment
Nov. 8 500 Nov. 11 95 Nov. 15 300
Nov. 16 2,000 Nov. 14 125 Nov. 17 900
Nov. 25 60 Nov. 17 900 Nov. 30 Bal 1,200
Nov. 29 100 Nov. 30 1,200
Nov. 30 Bal. 340
Accounts Receivable Website
Nov. 30 300 Nov. 30 600
Nov. 30 Bal. 300 Nov. 30 Bal. 600
Accounts Payable Supplies
Nov. 30 600 Nov. 11 95
Nov. 30 50 Nov. 11 125
Nov. 30. Bal 650 Nov. 30 Bal 220
Unearned Service Revenue Prepaid Insurance
Nov. 25 60 Nov. 30 1,200
Nov. 30. Bal. 60 Nov. 30 Bal. 1,200
Notes Payable Common Stock
Nov. 16 2,000 Nov. 8 500
Nov. 30. Bal. 2,000 Nov. 15 300
Nov. 30. Bal 800
Service Revenue Utilities Expense
Nov. 29 100 Nov. 30 50
Nov. 30 300 Nov. 30 Bal. 50
Nov. 30 Bal. 400

Trial Balance Solutions

Part C (Chapter 3)
Solutions
kbliss: kbliss: Why is Solutions written here? There is no context.
Prepare a trial balance for November 30, 2014.
Cookie Creations, Inc.
Trial Balance
November 30, 2014
Debit Credit
Cash $ 340
Accounts Receivable 300
Supplies 220
Prepaid Insurance 1,200
Equipment 1,200
Website 600
Accounts Payable $ 650
Unearned Service Revenue 60
Notes Payable 2,000
Common Stock 800
Service Revenue 400
Utilities Expense 50
Total $ 3,910 $ 3,910
*Note that debits equal credits.
 
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Glo Brite Paint Co Accounting Project

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Excel Instructions

Excel Instructions using Excel 2010:
CAUTION: Read Appendix B for specific instructions relating to these templates.
1. Enter the appropriate numbers/formulas in the shaded (gray) cells. An asterisk (*) will appear to the right of an incorrect answer.
2. A formula begins with an equals sign (=) and can consist of any of the following elements:
Operators such as + (for addition), – (for subtraction), * (for multiplication), and / (for division).
Cell references, including cell addresses such as B52, as well as named cells and ranges
Values and text
Worksheet functions (such as SUM)
3. You can enter a formula into a cell manually (typing it in) or by pointing to the cells.
To enter a formula manually, follow these steps:
Move the cell pointer to the cell that you want to hold the formula.
Type an equals sign (=) to signal the fact that the cell contains a formula.
Type the formula, then press Enter.
4. Rounding: These templates have been formatted to round numbers to either the nearest whole number or the nearest cent. For example,
17.65 x 1.5=26.475. The template will display and hold 26.48, not 26.475. There is no need to use Excel’s rounding function.
5. Remember to save your work. When saving your workbook, Excel overwrites the previous copy of your file. You can save your work at any time.
You can save the file to the current name, or you may want to keep multiple versions of your work by saving each successive version under a different name.
To save to the current name, you can select File, Save from the menu bar or click on the disk icon in the standard toolbar.
It is recommended that you save the file to a new name that identifies the file as yours, such as Chapter_7_long_version_Your_Name.xlsx
To save under a different name, follow these steps:
Select File, Save As to display the Save As Type drop-box, chose Excel Workbook (*.xlsx)
Select the folder in which to store the workbook.
Enter the new filename in the File name box.
Click Save.

Journal

JOURNAL Page 41
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20–
Oct. 9 Payroll Cash 12 11,097.25
Cash 11 11,097.25
9 Administrative Salaries 51 2,307.69
Office Salaries 52 3,353.08
Sales Salaries 53 3,600.00
Plant Wages 54 4,902.00
FICA Taxes Payable – OASDI 20.1 878.09
FICA Taxes Payable – HI 20.2 205.37
Employees FIT Payable 24 965.00
Employees SIT Payable 25 434.82
Employees SUTA Payable 25.1 9.94
Employees CIT Payable 26 556.30
Union Dues Payable 28 16.00
Payroll Cash 12 11,097.25
9 Payroll Taxes 56 1,231.14
FICA Taxes Payable – OASDI 20.1 878.09
FICA Taxes Payable – HI 20.2 205.36
FUTA Taxes Payable 21 19.68
SUTA Taxes Payable – Employer 22 128.01
JOURNAL Page 42
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20–
JOURNAL Page 43
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20–
JOURNAL Page 44
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20–
JOURNAL Page 45
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20–
JOURNAL Page 46
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20–
JOURNAL Page 47
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20–
JOURNAL Page 48
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20–
JOURNAL Page 49
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20–
JOURNAL Page 50
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20–
Total debits and credits (calculated automatically): 26,491.16 26,491.16
Your debits and credits should be equal after each journal entry is complete
Cumulative Journal Checkpoint Through Month Ending
October 31, 20– December 31, 20–
November 30, 20– January 31, 20–

General Ledger

GENERAL LEDGER
Checkpoints
ACCOUNT: CASH ACCOUNT NO. 11 Debit Credit
Balance Balance
POST. BALANCE Oct. 31, 20–
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Nov. 30, 20–
20– Dec. 31, 20–
Oct. 1 Balance a 199,846.33
9 J41 11,097.25 188,749.08
ACCOUNT: PAYROLL CASH ACCOUNT NO. 12 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 9 J41 11,097.25 11,097.25 Dec. 31, 20–
9 J41 11,097.25 0.00
ACCOUNT: FICA TAXES PAYABLE – OASDI ACCOUNT NO. 20.1 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 9 J41 878.09 878.09 Dec. 31, 20–
9 J41 878.09 1,756.18
ACCOUNT: FICA TAXES PAYABLE – HI ACCOUNT NO. 20.2 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 9 J41 205.37 205.37 Dec. 31, 20–
9 J41 205.36 410.73
ACCOUNT: FUTA TAXES PAYABLE ACCOUNT NO. 21 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 1 Balance a 392.94 Dec. 31, 20–
9 J41 19.68 412.62
ACCOUNT: SUTA TAXES PAYABLE – EMPLOYER ACCOUNT NO. 22 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 9 J41 128.01 128.01 Dec. 31, 20–
ACCOUNT: EMPLOYEES FIT PAYABLE ACCOUNT NO. 24 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 9 J41 965.00 965.00 Dec. 31, 20–
ACCOUNT: EMPLOYEES SIT PAYABLE ACCOUNT NO. 25 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 9 J41 434.82 434.82 Dec. 31, 20–
ACCOUNT: EMPLOYEES SUTA PAYABLE ACCOUNT NO. 25.1 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 9 J41 9.94 9.94 Dec. 31, 20–
ACCOUNT: EMPLOYEES CIT PAYABLE ACCOUNT NO. 26 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 9 J41 556.30 556.30 Dec. 31, 20–
ACCOUNT: GROUP INSURANCE PREMIUMS COLLECTED ACCOUNT NO. 27 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Dec. 31, 20–
ACCOUNT: UNION DUES PAYABLE ACCOUNT NO. 28 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 9 J41 16.00 16.00 Dec. 31, 20–
ACCOUNT: SIMPLE CONTRIBUTIONS PAYABLE ACCOUNT NO. 29 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Dec. 31, 20–
ACCOUNT: ADMINISTRATIVE SALARIES ACCOUNT NO. 51 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 1 Balance a 42,692.27 Dec. 31, 20–
9 J41 2,307.69 44,999.96
ACCOUNT: OFFICE SALARIES ACCOUNT NO. 52 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 1 Balance a 28,350.00 Dec. 31, 20–
9 J41 3,353.08 31,703.08
ACCOUNT: SALES SALARIES ACCOUNT NO. 53 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 1 Balance a 28,525.00 Dec. 31, 20–
9 J41 3,600.00 32,125.00
ACCOUNT: PLANT WAGES ACCOUNT NO. 54 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 1 Balance a 42,657.30 Dec. 31, 20–
9 J41 4,902.00 47,559.30
ACCOUNT: PAYROLL TAXES ACCOUNT NO. 56 Checkpoints
Debit Credit
POST. BALANCE Balance Balance
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Oct. 31, 20–
20– Nov. 30, 20–
Oct. 1 Balance a 14,013.23 Dec. 31, 20–
9 J41 1,231.14 15,244.37

Payroll Register

PAYROLL REGISTER GLO-BRITE PAINT COMPANY
Marital Status No. W/H Allow. Time Record Regular Earnings Overtime Earnings Total Earnings Deductions Net Paid Taxable Earnings Labor Cost Distribution
NAME S M T W T F S S M T W T F S Hrs. Rate Per Hour Amount Hrs. Rate Per Hour Amount OASDI HI FIT SIT SUTA CIT Group Ins. Union Dues SIMPLE Ck. No. Amount OASDI HI FUTA SUTA Admin. Office Sales Plant
Payday, October 9, 20– For Period Ending October 3, 20– Checkpoints
Bonno, A. M 4 8 8 8 8 8 8 8 8 8 8 80 17.65 1,412.00 1,412.00 87.54 20.47 49.00 43.35 0.99 55.46 8.00 672 1,147.19 1,412.00 1,412.00 1,412.00 Total earnings 14,162.77
Ferguson, J. M 5 8 8 8 8 8 8 8 8 8 8 80 2,250.00 2,250.00 139.50 32.63 143.00 69.08 1.58 88.38 673 1,775.83 2,250.00 2,250.00 2,250.00 Net paid 11,097.25
Ford, C. S 2 8 8 8 8 8 8 8 8 8 8 80 900.00 900.00 55.80 13.05 62.00 27.63 0.63 35.35 674 705.54 900.00 900.00 700.00 900.00 900.00
Mann, D. M 4 8 8 8 8 8 8 8 8 8 8 80 1,350.00 1,350.00 83.70 19.58 43.00 41.45 0.95 53.03 675 1,108.29 1,350.00 1,350.00 1,350.00 1,350.00 1,350.00
O’Neill, J. M 3 8 8 8 8 8 8 8 8 8 8 80 2,307.69 2,307.69 143.08 33.46 197.00 70.85 1.62 90.65 676 1,771.03 2,307.69 2,307.69 2,307.69
Russell, V. S 1 8 8 8 8 8 8 8 8 8 8 80 690.00 690.00 42.78 10.01 51.00 21.18 0.48 27.10 677 537.45 690.00 690.00 690.00 690.00 690.00
Ryan, N. M 4 8 8 8 8 8 8 8 8 8 8 80 18.00 1,440.00 1,440.00 89.28 20.88 53.00 44.21 1.01 56.56 8.00 678 1,167.06 1,440.00 1,440.00 1,440.00
Sokowski, T. M 2 8 8 8 8 8 8 8 8 8 8 80 2,050.00 2,050.00 127.10 29.73 180.00 62.94 1.44 80.52 679 1,568.27 2,050.00 2,050.00 2,050.00
(Student) S 1 8 8 8 8 4 8 8 8 8 4 72 7.50 540.00 540.00 33.48 7.83 32.00 16.58 0.38 21.21 680 428.52 540.00 540.00 540.00 540.00 540.00
Williams, R. S 0 8 8 D 8 8 8 8 8 8 8 80 1,223.08 1,223.08 75.83 17.73 155.00 37.55 0.86 48.04 681 888.07 1,223.08 1,223.08 1,223.08
TOTALS 14,162.77 14,162.77 878.09 205.37 965.00 434.82 9.94 556.30 0.00 16.00 0.00 11,097.25 14,162.77 14,162.77 3,280.00 3,480.00 2,307.69 3,353.08 3,600.00 4,902.00
Payday, October 23, 20– For Period Ending October 17, 20– Checkpoints
Bonno, A. Total earnings
Ferguson, J. Net paid
Ford, C.
Mann, D.
O’Neill, J.
Russell, V.
Ryan, N.
Sokowski, T.
(Student)
Williams, R.
TOTALS
Payday, November 6, 20– For Period Ending October 31, 20– Checkpoints
Bonno, A. Total earnings
Ferguson, J. Net paid
Ford, C.
Mann, D.
O’Neill, J.
Russell, V.
Ryan, N.
Sokowski, T.
(Student)
Williams, R.
TOTALS
Payday, November 13, 20– For Period Ending November 14, 20– Checkpoints
Williams, R. Total earnings
Net paid
TOTALS
Payday, November 20, 20– For Period Ending November 14, 20– Checkpoints
Bonno, A. Total earnings
Ferguson, J. Net paid
Ford, C.
Mann, D.
O’Neill, J.
Russell, V.
Ryan, N.
Sokowski, T.
(Student)
TOTALS
Payday, December 4, 20– For Period Ending November 28, 20– Checkpoints
Bonno, A. Total earnings
Ferguson, J. Net paid
Ford, C.
Mann, D.
O’Neill, J.
Russell, V.
Ryan, N.
Sokowski, T.
(Student)
Woods, B.
TOTALS
Payday, December 14, 20– For Period Ending December 12, 20– Checkpoints
Russell, V. Total earnings
Net paid
TOTALS
Payday, December 18, 20– For Period Ending December 12, 20– Checkpoints
Bonno, A. Total earnings
Ferguson, J. Net paid
Ford, C.
Mann, D.
O’Neill, J.
Mark Sears: Caution: OASDI is not calculated on full pay for O’Neill this pay period. Ryan, N.
Sokowski, T.
(Student)
Woods, B.
Young, P.
TOTALS

Employees’ Earnings Records

DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
Plant Mixer Operator PA M F 000-00-3481 BONNO Anthony Victor
x
OTHER DEDUCTIONS INFORMATION SALARY $ W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ ALLOW. STATUS
$55,000 –$.30/M $8 each pay HOURLY RATE $ 17.65 4 M
OVERTIME RATE $ 26.48 M
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID F
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE 10,293.40 1,028.60 11,322.00 701.96 164.17 810.00 347.59 7.93 444.73 216.80 8,628.82
1 10/9 80 17.65 1,412.00 0.00 12,734.00 87.54 20.47 49.00 43.35 0.99 55.46 8.00 672 1,147.19
2 10/23 0.00
3 11/6 0.00
4 11/20 0.00
5 12/4 0.00
6 12/18 0.00
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
Sales Sales Manager PA M F 000-00-8645 FERGUSON James Claude
x
OTHER DEDUCTIONS INFORMATION SALARY $ 58,500 /yr. W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ 1,125.00 ALLOW. STATUS
$88,000 — $.30/M HOURLY RATE $ 28.13 5 M
OVERTIME RATE $
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE 23,125.00 23,125.00 1,433.75 335.31 2,291.00 709.94 16.19 908.35 132.30 17,298.16
1 10/9 80 2,250.00 25,375.00 139.50 32.63 143.00 69.08 1.58 88.38 673 1,775.83
2 10/23
3 11/6
4 11/20
5 12/4
6 12/18
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
Office Executive Secretary PA M F 000-00-4567 FORD Catherine Louise
x
OTHER DEDUCTIONS INFORMATION SALARY $ 1,950 /mo. W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ 450.00 ALLOW. STATUS
$35,000–$.30/M HOURLY RATE $ 11.25 2 S
OVERTIME RATE $ 16.88
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE 6,300.00 6,300.00 390.60 91.35 639.00 193.41 4.41 247.46 37.80 4,695.97
1 10/9 80 900.00 7,200.00 55.80 13.05 62.00 27.63 0.63 35.35 674 705.54
2 10/23
3 11/6
4 11/20
5 12/4
6 12/18
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
Sales Sales Representative PA M F 000-00-9352 MANN Dewey Wilson
x
OTHER DEDUCTIONS INFORMATION SALARY $ 2,925 /mo. W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ 675.00 ALLOW. STATUS
$53,000 — $.30/M HOURLY RATE $ 16.88 4 M
OVERTIME RATE $
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE 5,400.00 5,400.00 334.80 78.30 332.00 165.78 3.78 212.11 31.50 4,241.73
1 10/9 80 1,350.00 6,750.00 83.70 19.58 43.00 41.45 0.95 53.03 675 1,108.29
2 10/23
3 11/6
4 11/20
5 12/4
6 12/18
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
Admini- strative President PA M F 000-00-1534 O’NEILL Joseph Tyler
x
OTHER DEDUCTIONS INFORMATION SALARY $ 60,000 /yr. W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ 1,153.85 ALLOW. STATUS
$90,000 — $.30/M HOURLY RATE $ 28.85 3 M
OVERTIME RATE $
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE 42,692.27 42,692.27 2,646.92 619.04 6,116.00 1,310.65 29.88 1,676.95 202.50 30,090.33
1 10/9 80 2,307.69 44,999.96 143.08 33.46 197.00 70.85 1.62 90.65 676 1,771.03
2 10/23
3 11/6
4 11/20
5 12/4
6 12/18
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
Office Time Clerk PA M F 000-00-6337 RUSSELL Virginia Aloise
x
OTHER DEDUCTIONS INFORMATION SALARY $ 1,495 /mo. W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ 345.00 ALLOW. STATUS
$27,000 — $.30/M HOURLY RATE $ 8.63 1 S
OVERTIME RATE $ 12.95
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE 6,240.00 6,240.00 386.88 90.48 642.00 191.56 4.37 245.11 31.50 4,648.10
1 10/9 80 690.00 6,930.00 42.78 10.01 51.00 21.18 0.48 27.10 677 537.45
2 10/23
3 11/6
4 11/20
5 12/4
6 12/14
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
Plant Electrician PA M F 000-00-1223 RYAN Norman Allen
x
OTHER DEDUCTIONS INFORMATION SALARY $ W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ ALLOW. STATUS
$56,000 — $.30/M $8 each pay HOURLY RATE $ 18.00 4 M
OVERTIME RATE $ 27.00
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE 13,287.50 1,397.80 14,685.30 910.49 212.94 1,070.00 450.84 10.28 576.84 235.70 11,218.21
1 10/9 80 18.00 1,440.00 0.00 16,125.30 89.28 20.88 53.00 44.21 1.01 56.56 8.00 678 1,167.06
2 10/23 0.00
3 11/6 0.00
4 11/20 0.00
5 12/4 0.00
6 12/18 0.00
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
Plant Supervisor PA M F 000-00-8832 SOKOWSKI Thomas James
x
OTHER DEDUCTIONS INFORMATION SALARY $ W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ 1,025.00 ALLOW. STATUS
$80,000 — $.30/M HOURLY RATE $ 25.63 2 M
OVERTIME RATE $
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE 16,650.00 16,650.00 1,032.30 241.43 2,002.00 511.16 11.66 654.01 94.50 12,102.94
1 10/9 80 2,050.00 18,700.00 127.10 29.73 180.00 62.94 1.44 80.52 679 1,568.27
2 10/23
3 11/6
4 11/20
5 12/4
6 12/18
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
Office Accounting Trainee PA M F Student
OTHER DEDUCTIONS INFORMATION SALARY $ W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ ALLOW. STATUS
$21,000 — $.30/M HOURLY RATE $ 7.50 1 S
OVERTIME RATE $ 11.25
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE 5,550.00 5,550.00 344.10 80.48 409.00 170.38 3.89 218.00 32.40 4,291.75
1 10/9 72 7.50 540.00 6,090.00 33.48 7.83 32.00 16.58 0.38 21.21 680 428.52
2 10/23
3 11/6
4 11/20
5 12/4
6 12/18
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
Office Programmer PA M F 000-00-6741 WILLIAMS Ruth Virginia
x
OTHER DEDUCTIONS INFORMATION SALARY $ 2,650 /mo. W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ 611.54 ALLOW. STATUS
$48,000 — $.30/M HOURLY RATE $ 15.29 0 S
OVERTIME RATE $ 22.94
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE 10,260.00 10,260.00 636.12 148.77 1,606.00 314.98 7.18 403.01 59.40 7,084.54
1 10/9 80 1,223.08 11,483.08 75.83 17.73 155.00 37.55 0.86 48.04 681 888.07
2 10/23
3 11/6
4 11/13
5
6
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
M F
OTHER DEDUCTIONS INFORMATION SALARY $ W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ ALLOW. STATUS
HOURLY RATE $
OVERTIME RATE $
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE
1
2
3
4
5 12/4
6 12/18
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
M F
OTHER DEDUCTIONS INFORMATION SALARY $ W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ ALLOW. STATUS
HOURLY RATE $
OVERTIME RATE $
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE
1
2
3
4
5
6 12/18
QTR. TOT.
YR. TOT.
Checkpoint Checkpoint
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
M F
OTHER DEDUCTIONS INFORMATION SALARY $ W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ ALLOW. STATUS
HOURLY RATE $
OVERTIME RATE $
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE
1
2
3
4
5
6
QTR. TOT.
YR. TOT.
DEPARTMENT OCCUPATION WORKS IN (STATE) SEX S.S. ACCOUNT NO. NAME – LAST FIRST MIDDLE
M F
OTHER DEDUCTIONS INFORMATION SALARY $ W/H MARITAL
GROUP INSURANCE UNION DUES OTHER WEEKLY RATE $ ALLOW. STATUS
HOURLY RATE $
OVERTIME RATE $
20___ REGULAR EARNINGS OVERTIME EARNINGS CUMULATIVE DEDUCTIONS NET PAID
PAYDAY HRS. RATE AMOUNT HRS. RATE AMOUNT EARNINGS FICA FIT SIT SUTA CIT SIMPLE OTHER CK.
OASDI HI DEDUCTIONS NO. AMOUNT
YEAR-TO-DATE
1
2
3
4
5
6
QTR. TOT.
YR. TOT.
 
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