Generally Accepted Accounting Principles and Guitar Universe
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Final Project
ACC-101
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Comprehensive Problem 2
Guitar Universe, Inc. P388
GUITAR UNIVERSER, INC. | Trial Balance | December 31,2009 | Cash | $45,000 | | Marketable securities | $25,000 | | Accounts receivable | $125,000 | | Allowance for doubtful accounts | | $5,000 | Merchandise inventory | $250,000 | | Office Supplies | $1,200 | | Prepaid insurance | $6,600 | | Building and fixtures | $1,791,000 | | Accumulated depreciation | | $800,000 | Land | $64,800 | | Accounts payable | | $70,000 | Unearned customer deposits | | $8,000 | Income taxes payable | | $75,000 | Capital stock | | $1,000,000 | Retained earnings | | $240,000 | Unrealized holding gain on investments | | $6,000 | Sales | | $1,600,000 | Cost of goods sold | $958,000 | | Bank service charges | $200 | | Uncollectible accounts expense | $9,000 | | Salary and wages expense | $395,000 | | Office supplies expense | $400 | | Insurance expense | $6,400 | | Utilities expense | $3,600 | | Depreciation expense | $48,000 | | Income tax expense | $75,000 | | Total | $3,804,200 | $3,804,000 |
a) GUITAR UNIVERSE, INC. | BANK RECONCILIATION | For: December 31, 2009 | Balance per bank statement, December 31, 2009 | $46,975 | Add: Deposits in Transit | | | $16,500 | | | | | $63,475 | Deduct: Outstanding Checks: | | | | | | No. 507 | $4,000 | | | | No. 511 | $9,000 | | | | No. 521 | $8,000 | $21,000 | Adjusted cash balance | | | $42,475 | Balance per depositor's records, Dec 31,2009 | | $45,000 | Deduct: | | | | | | Bank Service Charge | $25 | | | NSF check from Iggy Bates | $2,500 | $2,525 | Adjusted cash balance | | | $42,475 |
GUITAR UNIVERSE, INC. | General Journal | Bank Service Charges | $25 | | Accounts Receivable (Iggy Bates) | $2,500 | | Cash | $2,525 | To record bank charges
Final Project
ACC-101
| |
Comprehensive Problem 2
Guitar Universe, Inc. P388
GUITAR UNIVERSER, INC. | Trial Balance | December 31,2009 | Cash | $45,000 | | Marketable securities | $25,000 | | Accounts receivable | $125,000 | | Allowance for doubtful accounts | | $5,000 | Merchandise inventory | $250,000 | | Office Supplies | $1,200 | | Prepaid insurance | $6,600 | | Building and fixtures | $1,791,000 | | Accumulated depreciation | | $800,000 | Land | $64,800 | | Accounts payable | | $70,000 | Unearned customer deposits | | $8,000 | Income taxes payable | | $75,000 | Capital stock | | $1,000,000 | Retained earnings | | $240,000 | Unrealized holding gain on investments | | $6,000 | Sales | | $1,600,000 | Cost of goods sold | $958,000 | | Bank service charges | $200 | | Uncollectible accounts expense | $9,000 | | Salary and wages expense | $395,000 | | Office supplies expense | $400 | | Insurance expense | $6,400 | | Utilities expense | $3,600 | | Depreciation expense | $48,000 | | Income tax expense | $75,000 | | Total | $3,804,200 | $3,804,000 |
a) GUITAR UNIVERSE, INC. | BANK RECONCILIATION | For: December 31, 2009 | Balance per bank statement, December 31, 2009 | $46,975 | Add: Deposits in Transit | | | $16,500 | | | | | $63,475 | Deduct: Outstanding Checks: | | | | | | No. 507 | $4,000 | | | | No. 511 | $9,000 | | | | No. 521 | $8,000 | $21,000 | Adjusted cash balance | | | $42,475 | Balance per depositor's records, Dec 31,2009 | | $45,000 | Deduct: | | | | | | Bank Service Charge | $25 | | | NSF check from Iggy Bates | $2,500 | $2,525 | Adjusted cash balance | | | $42,475 |
GUITAR UNIVERSE, INC. | General Journal | Bank Service Charges | $25 | | Accounts Receivable (Iggy Bates) | $2,500 | | Cash | $2,525 | To record bank charges