Reinforcement Activity 2 Part B

Medical Services Company

Work Sheet
For Year Ended December 31, 2014
1 2 3
Trial Balance Adjustments
Account Title
Debit Credit Debit Credit
1 Cash 40,126.14
2 Petty Cash 250.00
3 Accounts Receivable 14,689.34
4 Allow. For Uncoll. Accts. 102.12 (d)
5 Merchandise Inventory 34,521.56 ©
6 Supplies - Office 4,316.60 (a)
7 Supplies - Store 4,823.00 (b)
8 Prepaid Insurance 8,000.00 (e)
9 Office Equipment 13,752.00
10 Acc. Depr. - office Equipment 2,210.00 (f)
11 Store Equipment 10,259.00
12 Acc. Depr. Store Equipment 5,844.00 (g)
13 Accounts Payable 9,696.85
14 Federal Income Tax Payable (h)
15 Emp. Income Tax Payable 351.00
16 Social Security Tax Payable 750.20
17 Medicare Tax Payable 175.46
18 Sales Tax Payable 2,061.61
19 Unemployment Tax Pay. - Fed 18.40
20 Unemployment Tax Pay. - State 124.20
21 Health Ins. Premiums Payable 340.00
22 U.S. Savings Bonds Payable 60.00
23 United Way Donations Pay. 60.00
24 Dividends Payable 7,500.00
25 Capital Stock 10,000.00
26 Retained Earnings 38,718.01
27 Dividends 30,000.00
28 Income Summary © 1,243.55
29 Sales 342,447.00
30 Sales Discount 264.87
31 Sales Returns and Allowances 1,680.00
32 Purchases 131,176.10
33 Purchases Discount 1,908.95
34 Purch. Returns & Allowances 2,510.50
35 Advertising Expense 17,002.00
36 Cash Short and Over 9.63
37 Credit Card Fee Expense 2,324.55
38 Depr. Exp. - Office Equip. (f) 3,520.00
39 Depr. Exp. - Store Equip. (g) 2,240.00
40 Insurance Expense (e) 7,500.00
41 Miscellaneous Expense 1,636.00
42 Payroll Taxes Expense 7,099.86
43 Rent Expense 12,000.00
44 Repair Expense 2,446.00
45 Salary Expense 69,410.00
46 supplies Expense - office (a) 3,840.00
47 Supplies Expense - store (b) 4,006.00
48 Uncollectible Accounts Exp. (d) 1,300.00
49 Utilities Expense 9,091.65
50 Federal Income Tax Expense 10,000.00 (h) 2,269.06
52 Totals 424,878.30 424,878.30 25,918.61
53 Net Income After Taxes
54
vices Company
k Sheet
December 31, 2014
4 5 6 7 8
Adjustments Income Statement Balance Sheet
Credit Debit Credit Debit Credit
40,126.14 1
250.00 2
14,689.34 3
1,300.00 1,402.12 4
1,243.55 33,278.01 5
3,840.00 476.60 6
4,006.00 817.00 7
7,500.00 500.00 8
13,752.00 9
3,520.00 5,730.00 10
10,259.00 11
2,240.00 8,084.00 12
9,696.85 13
2,269.06 2,269.06 14
351.00 15
750.20 16
175.46 17
2,061.61 18
18.40 19
124.20 20
340.00 21
60.00 22
60.00 23
7,500.00 24
10,000.00 25
38,718.01 26
30,000.00 27
1,243.55 28
342,447.00 29
264.87 30
1,680.00 31
131,176.10 32
1,908.95 33
 2,510.50 34
17,002.00 35
9.63 36
2,324.55 37
3,520.00 38
2,240.00 39
7,500.00 40
1,636.00 41
7,099.86 42
12,000.00 43
2,446.00 44
69,410.00 45
3,840.00 46
4,006.00 47
1,300.00 48
9,091.65 49
12,269.06 51
25,918.61 290,059.27 346,866.45 144,148.09 87,340.91 52
56,807.18 56,807.18 53
346,866.45 346,866.45 144,148.09 144,148.09 54
Reinforcement Activity 2 Part B

Medical Services Company

Income Statement
For Year Ended Decmeber 31, 2014

Revenue:
Sales 342,447.00
Less: Sales Discount 264.87
Sales Returns and allowances 1,680.00 1,944.87
Net Sales
Cost of Merchandise Sold:
Merchandise Inventory, January 1, 2008 34,521.56
Purchases 131,176.10
Less: Purchases Discount 1,908.95
Purchases Returns and Allowances 2,510.50 4,419.45
Net Purchases 126,756.65
Total Cost of Merchandise Available for Sale 161,278.21
Less Merchandise Inventory, December 31, 2008 33,278.01
Cost of Merchandise Sold
Gross Profit on Sales
Expenses:
Advertising Expense 17,002.00
Cash Short and Over 9.63
Credit Card Fee Expenses 2,324.55
Depreciation Exp. - Office Equipment 3,520.00
Depreciation Exp. - Store Equipment 2,240.00
Insurance Expense 7,500.00
Miscellaneous Expense 1,636.00
Payroll Taxes Expense 7,099.86
Rent Expense 12,000.00
Repair Expense 2,446.00
Salary Expense 69,410.00
Supplies Expense - Office 3,840.00
Supplies Expense - Store 4,006.00
Uncollectible Accounts Expense 1,300.00
Utilities Expense 9,091.65
Total Expenses
Net Income before federal income tax
Less federal income tax expense
Net income after federal income tax expense
 % OF NET
SALES

340,502.13 100.0%

128,000.20 37.6%
212,501.93 62.4%

143,425.69 42.1%
69,076.24 20.3%
12,269.06
56,807.18
Reinforcement Activity 2 Part B

Medical Services Company

Statement of Stockholders' Equity
For Year Ended December 31, 2014

Capital Stock:
$1.00 per share
January 1, 2014, 9,500 Shares Issued 9,500.00
Issued During Current Year, 500 Shares 500.00
Balance, December 31, 2014, xxxxx Shares Issued
Retained Earnings:
Balance, January 1, 2014 38,718.01
Net Income after Federal Income Tax for 2014 56,807.18
Less Dividends Declared during 2014 30,000.00
Net Increase during 2014 26,807.18
Balance, December 31, 2014
Total Stockholders' Equity, December 31, 2014
10,000.00

65,525.19
75,525.19
Reinforcement Activity 2 Part B

Medical Services Company

Balance Sheet
December 31, 2014

Assets
Current Assets:
Cash 40,126.14
Petty Cash 250.00
Accounts Receivable 14,689.34
Less Allowance for Uncollectible Accounts 1,402.12 13,287.22
Merchandising Inventory 33,278.01
Supplies - Office 476.60
Supplies - Store 817.00
Prepaid Insurance 500.00
Total Current Assets
Plant Assets:
Office Equipment 13,752.00
Less Accum. Deprec. - Office Equipment 5,730.00 8,022.00
Store Equipment 10,259.00
Less Accum. Deprec. - Store Equipment 8,084.00 2,175.00
Total Plant Assets
Total Assets
Liabilities
Current Liabilities:
Accounts Payable 9,696.85
Federal Income Tax Payable 2,269.06
Employeee Income Tax Payable 351.00
Social Security Tax Payable 750.20
Medicare Tax Payable 175.46
Sales Tax Payable 2,061.61
Unemploymnet Tax Payable - Federal 18.40
Unemploymnet Tax Payable - State 124.20
Health Insurance Premiums Payable 340.00
U.S. Savings Bonds Payable 60.00
United Way donations Payable 60.00
Dividends Payable 7,500.00
Total Liablilities
Stockholders' Equity
Capital Stock 10,000.00
Retained Earnings 65,525.19
Total Stockholders'Equity
Total Liablilities and Stockholders' Equity
88,734.97

10,197.00
98,931.97

23,406.78
75,525.19
98,931.97
Earnings per Share
Net Income after Number of Shares Earnings per
Federal Income tax ÷ Outstanding = Share
$56,807.18 ÷ 10,000 = $5.68

Price-Earnings Ratio
Market Price per Earnings per Price-Earnings
Share ÷ Share = Ratio
$87.50 ÷ $5.68 = 15.40
 GENERAL JOURNAL

DOC. POST.
DATE ACCOUNT TITLE NO. REF.
1 2014 Adjusting Entries
2 Dec. 31 Uncollectible Accounts Expense 6185
3 Allowance for Uncoll. Accounts 1135
4 31 Income Summary 3140
5 Merchadise Inventory 1140
6 31 Supplies Expense - Office 6175
7 Supplies - Office 1145
8 31 Supplies Expense - Store 6180
9 Supplies - Store 1150
10 31 Insurance Expense 6135
11 Prepaid Insurance 1160
12 31 Depr. Exp. - Office Equip. 6125
13 Accum. Depr. - Office Equip. 1220
14 31 Depr. Exp. - Store Equip. 6130
15 Accum. Depr. - Store Equip. 1240
16 31 Federal Income Tax Expense 7105
17 Federal Income Tax Payable 2115
18

19
 PAGE 13
1 2

GENERAL

DEBIT CREDIT
1

1,300.00 2

1,300.00 3

1,243.55 4

1,243.55 5

3,840.00 6

3,840.00 7

4,006.00 8

4,006.00 9

7,500.00 10

7,500.00 11

3,520.00 12

3,520.00 13

2,240.00 14

2,240.00 15

2,269.06 16

2,269.06 17

18

19
 GENERAL JOURNAL

DOC. POST.
DATE ACCOUNT TITLE NO. REF.
1 2014 Closing Entries
2 Dec. 31 Sales 4110
3 Purchases Discount 5120
4 Purchases Ret. And Allow. 5130
5 Income Summary 3140
6 31 Income Summary 3140
7 Sales Discount 4120
8 Sales Returns and Allow. 4130
9 Purchases 5110
10 Advertising Expense 6110
11 Cash Short and Over 6115
12 Credit Card Fee Expense 6120
13 Depr. Exp. - Office Equip. 6125
14 Depr. Exp. - Store Equip. 6130
15 Insurance Expense 6135
16 Miscellaneous Expense 6140
17 Payroll Expense 6150
18 Rent Expense 6160
19 Repair Expense 6165
20 Salary Expense 6170
21 Supplies Expense - Office 6175
22 Supplies Expense - Store 6180
23 Uncollectible Accounts Expense 6185
24 Utilities Expense 6190
25 Federal Income Tax Expense 7105
26 31 Income Summary 3140
27 Retained Earnings 3120
28 31 Retained Earnings 3120
29 Dividends 3130
30

31

32

33

34
 PAGE 14
1 2

GENERAL

DEBIT CREDIT
1

342,447.00 2

1,908.95 3

2,510.50 4

346,866.45 5

288,815.72 6

264.87 7

1,680.00 8

131,176.10 9

17,002.00 10

9.63 11

2,324.55 12

3,520.00 13

2,240.00 14

7,500.00 15

1,636.00 16

7,099.86 17

12,000.00 18

2,446.00
69,410.00 19

3,840.00 20

4,006.00 21

1,300.00 22

9,091.65 23

12,269.06 24

56,807.18 25

56,807.18 26

30,000.00 27

30,000.00 28

29

30

31

32

33
Reinforcement Activity 2 Part B

Medical Services Company

Post-Closing Trial Balance
December 31, 2014

Account Title Debit

Cash $40,126.14
Petty Cash $250.00
Accounts Receivable $14,689.34
Allow. For Uncollectible Accounts
Merchandise Inventory $33,278.01
Supplies - Office $476.60
Supplies - Store $817.00
Prepaid Insurance $500.00
Office Equipment $13,752.00
Acc. Depreciation - Office Equipment
Store Equipment $10,259.00
Acc. Depreciation - Store Equipment
Accounts Payable
Federal Income Tax Payable
Employee Income Tax Payable - Federal
Social Security Tax Payable
Medicare Tax Payable
Sales Tax Payable
Unemployment Tax Payable - Federal
Unemployment Tax Payable - State
health Insurance Premiums Payable
U.S. Savings Bonds Payable
United Way Donation Payable
Dividends Payable
Capital Stock
Retained Earnings
Totals $114,148.09
 Credit

$1,402.12

$5,730.00

$8,084.00
$9,696.85
$2,269.06
$351.00
$750.20
$175.46
$2,061.61
$18.40
$124.20
$340.00
$60.00
$60.00
$7,500.00
$10,000.00
$65,525.19
$114,148.09