WAREN SPORTS SUPPLY, YEAR-END WORKSHEET, DECEMBER 31, 2017 Student Name_______________________________________________________________

TRANSACTIONS LIST B Instructor________________________________Date Due_______________________

(Accounts with no activity in this worksheet are excluded in this solution.)
12/31/16 12/31/17 ADJUSTED INCOME BALANCE
ACCT ACCOUNT POST CLOSING UNADJUSTED YEAR-END ADJUSTMENTS TRIAL BALANCE STATEMENT SHEET
NO. TITLE TRIAL BALANCE TRIAL BALANCE
DEBIT CREDIT DEBIT CREDIT ID # DEBIT ID # CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
ASSETS
10100 Cash 11,025.19 83,222.77 83,222.77 83,222.77
10200 Accounts receivable 11,065.00 48,149.00 48,149.00 48,149.00
10210 Accounts receivable from employees 250.00 250.00 250.00
10300 Allowance for doubtful accounts 3,250.81 1,149.19 3,048.10 1,898.91 1,898.91
10400 Inventory 101,681.00 101,681.00 82,063.00 183,744.00 183,744.00
10500 Prepaid expenses 3,500.00 3,500.00 3,500.00
10600 Marketable securities 24,400.00 24,400.00 24,400.00
10800 Fixed assets 320,665.00 330,506.40 330,506.40 330,506.40
10900 Accumulated depreciation 81,559.50 80,334.50 35,023.64 115,358.14 115,358.14
11000 Notes receivable 7,000.00 7,000.00 7,000.00

LIABILITIES
20100 Accounts payable 11,279.35 7,952.01 7,952.01 7,952.01
20300 Federal income taxes withheld 1,326.76 1,450.00 1,450.00 1,450.00
20400 State unemployment taxes payable 281.17 110.44 110.44 110.44
20500 Federal unemployment taxes payable 83.31 18.67 18.67 18.67
20600 F.I.C.A. taxes payable 1,593.30 2,229.32 2,229.32 2,229.32
20700 Federal incomes taxes payable 29,797.00 55,822.31 55,822.31 55,822.31
20800 Dividends payable 7,500.00 7,500.00 7,500.00
20900 Interest payable 106.85 106.85 106.85
21000 Notes payable 47,000.00 47,000.00 47,000.00
21100 Unearned revenue 3,300.00 3,300.00 3,300.00

STOCKHOLDERS' EQUITY
26000 Common stock 225,000.00 225,000.00 225,000.00 225,000.00
29000 Retained earnings 90,264.99 90,264.99 90,264.99 90,264.99
29010 Dividends declared 7,500.00 7,500.00 7,500.00

REVENUE AND GROSS PROFIT

30100 Sales 1,600,759.00 1,600,759.00 1,600,759.00
30200 Sales returns and allowances 61,106.00 61,106.00 61,106.00
30300 Sales discounts taken 15,603.34 15,603.34 15,603.34
30400 Cost of goods sold 1,034,602.96 1,034,602.96 1,034,602.96
30500 Purchases 1,128,159.00 1,128,159.00 0.00 0.00
30600 Purchases returns and allowances 19,445.00 19,445.00 0.00 0.00
30700 Purchases discounts taken 16,554.48 16,554.48 0.00 0.00
30800 Freight-in 24,506.44 24,506.44 0.00 0.00
30900 G/L on sale of fixed assets 250.00 250.00 250.00
31000 G/L on sale of marketable securities 440.00 440.00 440.00
31100 Interest/dividend income 1,100.00 1,100.00 1,100.00
31200 Miscellaneous revenue 825.00 825.00 825.00

EXPENSES
40100 Rent expense 57,600.00 57,600.00 57,600.00
40200 Advertising expense 22,275.00 22,275.00 22,275.00
40300 Office supplies expense 5,664.91 5,664.91 5,664.91
40400 Depreciation expense 35,023.64 35,023.64 35,023.64
40500 Wages and salaries expense 140,663.35 140,663.35 140,663.35
40600 Payroll tax expense 11,611.26 11,611.26 11,611.26
40700 Federal income tax expense 55,822.31 55,822.31 55,822.31
40800 Interest expense 106.85 106.85 106.85
40900 Bad debt expense 3,048.10 3,048.10 3,048.10
41000 Other operating expense 29,985.75 29,985.75 29,985.75

Sub-totals 1,473,113.47 1,603,374.00 688,272.17 558,011.64

Net Income (Loss) ------------------- ------------------- ------------------- ----------------------------------------------------------------------------------------------- ------------------- ------------------- 130,260.53 130,260.53
TOTALS 444,436.19 444,436.19 2,104,533.41 2,104,533.41 1,246,666.34 1,246,666.34 2,161,385.64 2,161,385.64 1,603,374.00 1,603,374.00 688,272.17 688,272.17
 WAREN SPORTS SUPPLY
BALANCE SHEET
AT DECEMBER 31, 2017 AND 2016

ASSETS
2017 2016
CURRENT ASSETS
Cash $83,222.77 $11,025.19
Trade accounts receivable - net 46,250.09 7,814.19
Account receivable - employee 250.00 0.00
Inventory 183,744.00 101,681.00
Prepaid rent 3,500.00 0.00
Marketable securities 24,400.00 0.00
Total current assets 341,366.86 120,520.38

FIXED ASSETS - Net of

accumulated depreciation 215,148.26 239,105.50

NOTE RECEIVABLE 7,000.00 0.00

Total assets $563,515.12 $359,625.88

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable $7,952.01 $11,279.35
Payroll taxes W/H and payable 3,808.43 3,284.54
Federal income taxes payable 55,822.31 29,797.00
Dividends payable 7,500.00 0.00
Interest payable 106.85 0.00
Unearned revenue 3,300.00 0.00
Total current liabilities 78,489.60 44,360.89

NOTE PAYABLE 47,000.00 0.00

Total liabilities 125,489.60 44,360.89

STOCKHOLDERS' EQUITY
Common stock 225,000.00 225,000.00
Retained earnings 213,025.52 90,264.99
Total stockholders' equity 438,025.52 315,264.99

Total liabilities and stockholders' equity $563,515.12 $359,625.88

 WAREN SPORTS SUPPLY
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2017

REVENUE
Sales $1,600,759.00
Less: Sales returns and allowances 61,106.00
Sales discounts taken 15,603.34
Net sales 1,524,049.66

COST OF GOODS SOLD

Beginning inventory 101,681.00
Net purchases 1,092,159.52
Freight-in 24,506.44
Goods available for sale 1,218,346.96
Less: Ending inventory 183,744.00
Cost of goods sold 1,034,602.96

GROSS MARGIN 489,446.70

OPERATING EXPENSES
Rent expense 57,600.00
Advertising expense 22,275.00
Office supplies expense 5,664.91
Depreciation expense 35,023.64
Wages and salaries 140,663.35
Payroll taxes 11,611.26
Bad debt expense 3,048.10
Other operating expense 29,985.75
Total operating expenses 305,872.01

Operating income 183,574.69

OTHER INCOME 2,615.00

OTHER EXPENSE - Interest expense 106.85

INCOME BEFORE TAXES 186,082.84

FEDERAL INCOME TAXES 55,822.31

NET INCOME 130,260.53

RETAINED EARNINGS - Beginning of year 90,264.99

DIVIDENDS DECLARED (7,500.00)

RETAINED EARNINGS - End of year $213,025.52

 WAREN SPORTS SUPPLY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2017

CASH FLOWS FROM OPERATING ACTIVITIES

Net income $130,260.53
Adjustments to reconcile net income to net cash
from operating activities
Depreciation 35,023.64
Gain on sale of marketable securities and fixed assets (690.00)
(Increase) decrease in assets:
Trade accounts receivable (38,435.90)
Inventory (82,063.00)
Prepaid expenses (3,500.00)
Increase (decrease) in liabilities:
Accounts payable (3,327.34)
Payroll taxes withheld and payable 523.89
Federal income taxes payable 26,025.31
Interest payable 106.85
Unearned revenue 3,300.00
Net cash provided by operating activities 67,223.98

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of marketable securities 3,825.00
Purchase of marketable securities (27,785.00)
Cash payments for fixed assets (11,066.40)
Increase in note receivable (7,000.00)
Net cash used in investing activities (42,026.40)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash proceeds from loans 60,000.00
Repayment of note payable (13,000.00)
Net cash provided by financing activities 47,000.00

NET INCREASE IN CASH 72,197.58

CASH - Beginning of year 11,025.19

CASH - End of year $83,222.77

SCHEDULE OF NONCASH INVESTING AND

FINANCING ACTIVITIES

Employee account receivable generated by sale

of fixed assets………………………………………………. 250.00
Dividends declared but not paid at year-end……………….. 7,500.00
 WAREN SPORTS SUPPLY
POST-CLOSING TRIAL BALANCE
December 31, 2017

ACCT. NO. ACCOUNT TITLE DEBIT CREDIT

ASSETS

10100 Cash 83,222.77

10200 Accounts receivable 48,149.00
10210 Accounts receivable from employees 250.00
10300 Allowance for doubtful accounts 1,898.91
10400 Inventory 183,744.00
10500 Prepaid expenses 3,500.00
10600 Marketable securities 24,400.00
10800 Fixed assets 330,506.40
10900 Accumulated depreciation 115,358.14
11000 Notes receivable 7,000.00

LIABILITIES

20100 Accounts payable 7,952.01

20300 Federal income taxes withheld 1,450.00
20400 State unemployment taxes payable 110.44
20500 Federal unemployment taxes payable 18.67
20600 F.I.C.A. taxes payable 2,229.32
20700 Federal income taxes payable 55,822.31
20800 Dividends payable 7,500.00
20900 Interest payable 106.85
21000 Notes payable 47,000.00
21100 Unearned revenue 3,300.00

STOCKHOLDERS' EQUITY

26000 Common stock 225,000.00

29000 Retained earnings 213,025.52

TOTALS $680,772.17 $680,772.17