University Computers Unlimited
Chart of Accounts
Account # Description
10000-10999 Current Assets
10000 Cash
10010 A/R - General
10011 A/R - Refundable Deposits
10020 Inventory - Parts
10021 Inventory - Supplies
10030 Prepaid Insurance
11000-11999 Noncurrent Assets
11040 P,P,& E - Furniture
11041 Accumulated Depreciation - Furniture
11050 Equipment
11051 Accumulated Depreciation - Equipment
20000-29999 Liabilities
20010 A/P - General
20011 A/P - Wages to Employees
30000-39999 Equity
30010 Common Stock - Carry
30011 Common Stock - Mary
30020 Retained Earnings
40000-49999 Revenues
40010 Sales - Parts
40011 Sales - Services
40012 Sales - Supplies
50000-69999 Expenses
50010 Cost of Goods Sold - Parts
50011 Cost of Goods Sold - Services
50012 Cost of Goods Sold - Supplies
60010 Insurance Expense
60020 Rent Expense
60030 Advertising Expense
60040 Depreciation Expense
60050 Utilities Expense
University Computers Unlimited
Journal Entries
for August 2002
Journal # Journal Date Account # Description Debit Credit Explanation
1 08/01/02 10000 Cash $ 100,000.00 To record the sales of 10,000
08/01/02 30010 Common Stock - Carry $ 50,000.00 shares of Common Stock.
08/01/02 30011 Common Stock - Mary $ 50,000.00
2 08/01/02 10030 Prepaid Insurance $ 12,000.00 To record purchase of a 1-year
08/01/02 10000 Cash $ 12,000.00 insurance policy
3 08/02/02 11040 P,P,& E - Furniture $ 24,000.00 To record purchase of furniture
08/02/02 20010 A/P - General $ 24,000.00 on account - 5 yr life - $0 salvage
4 08/02/02 10011 A/R - Refundable Deposits $ 1,250.00 To record payment of refundable
08/02/02 10000 Cash $ 1,250.00 deposit for rent
08/02/02 60020 Rent Expense $ 1,250.00 To record prepayment of rent
08/02/02 10000 Cash $ 1,250.00 for August 2002
5 08/03/02 11050 Equipment $ 12,000.00 To record purchase of equipment
08/03/02 20010 A/P - General $ 12,000.00 on account - 5 yr life - $0 salvage
6 08/05/02 10020 Inventory - Parts $ 20,000.00 To record the purchase of
08/05/02 10021 Inventory - Supplies $ 10,000.00 inventory - Parts & supplies on
08/05/02 20010 A/P - General $ 30,000.00 account
7 08/10/02 10010 A/R - General $ 15,000.00 To record the sale of services
08/10/02 10000 Cash $ 15,000.00
08/10/02 40011 Sales - Services $ 30,000.00
08/10/02 50011 Cost of Goods Sold - Services $ 15,000.00 CoGS is $15,000
08/10/02 20011 A/P - Wages to Employees $ 15,000.00
8 08/15/02 10010 A/R - General $ 15,000.00 To record the sale of parts
08/15/02 40010 Sales - Parts $ 15,000.00
08/15/02 50010 Cost of Goods Sold - Parts $ 10,000.00 CoGS is $10,000
08/15/02 10020 Inventory - Parts $ 10,000.00
9 08/20/02 10000 Cash $ 10,000.00 To record the sale of supplies
08/20/02 40012 Sales - Supplies $ 10,000.00
08/20/02 50012 Cost of Goods Sold - Supplies $ 5,000.00 CoGS is $5,000
08/20/02 10021 Inventory - Supplies $ 5,000.00
10 08/25/02 60030 Advertising Expense $ 1,000.00 To record the purchase of
08/25/02 10000 Cash $ 1,000.00 advertising in newspaper
11 08/30/02 60050 Utilities Expense $ 200.00 To record payment of utilities
08/30/02 20010 A/P - General $ 20,000.00 and A/P
08/30/02 10000 Cash $ 20,200.00
12 (adj) 08/31/02 60010 Insurance Expense $ 1,000.00 To record the use of 1 month
08/31/02 10030 Prepaid Insurance $ 1,000.00 of insurance policy
13 (adj) 08/31/02 60040 Depreciation Expense $ 600.00 To record Monthly depreciation
08/31/02 11041 Accumulated Depreciation - Furniture $ 400.00 Furniture @ 5 yr STL $0 salvage
08/31/02 11051 Accumulated Depreciation - Equipment $ 200.00 Equipment @ 5 yr STL $0 salvage
University Computers Unlimited
T-Accounts
ASSETS
10000 - Cash 10021 - Inventory - Supplies
Beg. Bal. 0 Beg. Bal. 0
8/1 100,000 (1) Cash from common stock 8/5 10,000 (6) Supplies
8/1 12,000 (2) Prepaid 1 year insurance 8/20 5,000 (9) Decreased supplies inventory
8/2 1,250 (4) Rent Deposit Bal. 5,000 -
8/2 1,250 (4) August rent
8/10 15,000 (7) Collect from sold services 10030 - Prepaid Insurance
8/20 10,000 (9) Collect from sold supplies Beg. Bal. 0
8/25 1,000 (10) Paid advertisement 8/1 12,000 (2) Prepaid 1 year insurance
8/30 20,200 (11) Paid Utilities & A/P 8/31 1,000 (12) Adj for accrual of Insurance
Bal. 89,300 Bal. 11,000
10010 - A/R General 11040 - P, P, & E - Furniture
Beg. Bal. 0 Beg. Bal. 0
8/10 15,000 (7) Sold service A/R outstanding 8/2 24,000 (3) Purchase furniture
8/15 15,000 (8) Sold parts A/R outstanding Bal. 24,000
Bal. 30,000 -
11041 - Acc. Depreciation - Furniture
10011 - A/R - Refundable Deposits Beg. Bal. 0
Beg. Bal. 0 8/31 400 (13) Month-end Depreciation
8/2 1,250 (4) Rent deposit Bal. - 400
Bal. 1,250 -
11050 - Equipment
10020 - Inventory - Parts Beg. Bal. 0
Beg. Bal. 0 8/3 12,000 (5) Purchase Equipment
8/5 20,000 (6) Parts Bal. 12,000
8/15 10,000 (8) Decreased parts inventory
Bal. 10,000 - 11051 - Acc. Depreciation - Equipment
Beg. Bal. 0
8/31 200 (13) Month-end Depreciation
Bal. 200
LIABILITIES
20011 - A/P - Wages to Employees
20010 - A/P General Beg. Bal. 0
Beg. Bal. 0 8/10 15,000 (7) Wages for services
8/2 24,000 (3) Purchased Furniture Bal. - 15,000
8/3 12,000 (5) Purchased Equipment
8/5 30,000 (6) Purchased Parts & Supplies
8/30 20,000 (11) Paid A/P
Bal. 46,000
OWNER'S EQUITY
30010 - Common Stock - Carry 30011 - Common Stock - Carry
Beg. Bal. 0 Beg. Bal. 0
8/1 50,000 (1) 5,000 shares issued to Carry 8/1 50,000 (1) 5,000 shares issued to Mary
Bal. - 50,000 Bal. - 50,000
REVENUE
40010 - Sales - Parts 40011 - Sales - Services
Beg. Bal. 0 Beg. Bal. 0
8/15 15,000 (8) Sold parts 8/10 30,000 (7) Sold services
Bal. - 15,000 Bal. - 30,000
40012 - Sales - Supplies
Beg. Bal. 0
8/20 10,000 (9) Sold supplies
Bal. - 10,000
EXPENSES
50010 - Cost of Goods Sold - Parts 50011 - Cost of Goods Sold - Services
Beg. Bal. 0 Beg. Bal. 0
8/15 10,000 (8) Cost of parts sold 8/10 15,000 (7) Cost of services sold
Bal. 10,000 Bal. 15,000
50012 - Cost of Goods Sold - Supplies 60010 - Insurance Expense
Beg. Bal. 0 Beg. Bal. 0
8/20 5,000 (9) Cost of supplies sold 8/31 1,000 (12) Adj for accrual of Insurance
Bal. 5,000 Bal. 1,000 -
60020 - Rent Expense 60030 - Advertising Expense
Beg. Bal. 0 Beg. Bal. 0
8/2 1,250 (4) August rent expense 8/25 1,000 (10) Advertisement expense
Bal. 1,250 - Bal. 1,000
60040 - Depreciation Expense 60050 - Utility Expense
Beg. Bal. 0 Beg. Bal. 0
8/31 600 (13) Month-end Depreciation 8/30 200 (11) Utility expense
Bal. 600 - 200
University Computers Unlimited
Unadjusted General Ledger Trial Balance
as of August 31, 2002
Beginning
Account # Description Balance Debits Credits Ending Balance
10000 Cash $ - $ 125,000.00 $ (35,700.00) $ 89,300.00 DR
10010 A/R - General $ - $ 30,000.00 $ - $ 30,000.00 DR
10011 A/R - Refundable Deposits $ - $ 1,250.00 $ - $ 1,250.00 DR
10020 Inventory - Parts $ - $ 20,000.00 $ (10,000.00) $ 10,000.00 DR
10021 Inventory - Supplies $ - $ 10,000.00 $ (5,000.00) $ 5,000.00 DR
10030 Prepaid Insurance $ - $ 12,000.00 $ - $ 12,000.00 DR
11040 P,P,& E - Furniture $ - $ 24,000.00 $ - $ 24,000.00 DR
11041 Accumulated Depreciation - Furniture $ - $ - $ - $ - CR
11050 Equipment $ - $ 12,000.00 $ - $ 12,000.00 DR
11051 Accumulated Depreciation - Equipment $ - $ - $ - $ - CR
20010 A/P - General $ - $ 20,000.00 $ (66,000.00) $ (46,000.00) CR
20011 A/P - Wages to Employees $ - $ - $ (15,000.00) $ (15,000.00) CR
30010 Common Stock - Carry $ - $ - $ (50,000.00) $ (50,000.00) CR
30011 Common Stock - Mary $ - $ - $ (50,000.00) $ (50,000.00) CR
40010 Sales - Parts $ - $ - $ (15,000.00) $ (15,000.00) CR
40011 Sales - Services $ - $ - $ (30,000.00) $ (30,000.00) CR
40012 Sales - Supplies $ - $ - $ (10,000.00) $ (10,000.00) CR
50010 Cost of Goods Sold - Parts $ - $ 10,000.00 $ - $ 10,000.00 DR
50011 Cost of Goods Sold - Services $ - $ 15,000.00 $ - $ 15,000.00 DR
50012 Cost of Goods Sold - Supplies $ - $ 5,000.00 $ - $ 5,000.00 DR
60010 Insurance Expense $ - $ - $ - $ - CR
60020 Rent Expense $ - $ 1,250.00 $ - $ 1,250.00 DR
60030 Advertising Expense $ - $ 1,000.00 $ - $ 1,000.00 DR
60040 Depreciation Expense $ - $ - $ - $ - CR
60050 Utilities Expense $ - $ 200.00 $ - $ 200.00 DR
Total Beginning Balance $ -
Total Debits $ 286,700.00
Total Credits $ (286,700.00)
Unadjusted Ending Balance $ -
University Computers Unlimited
Adjusted General Ledger Trial Balance
as of August 31, 2002
Beginning
Account # Description Balance Debits Credits Ending Balance
10000 Cash $ - $ 125,000.00 $ (35,700.00) $ 89,300.00 DR
10010 A/R - General $ - $ 30,000.00 $ - $ 30,000.00 DR
10011 A/R - Refundable Deposits $ - $ 1,250.00 $ - $ 1,250.00 DR
10020 Inventory - Parts $ - $ 20,000.00 $ (10,000.00) $ 10,000.00 DR
10021 Inventory - Supplies $ - $ 10,000.00 $ (5,000.00) $ 5,000.00 DR
10030 Prepaid Insurance $ - $ 12,000.00 $ (1,000.00) $ 11,000.00 DR
11040 P,P,& E - Furniture $ - $ 24,000.00 $ - $ 24,000.00 DR
11041 Accumulated Depreciation - Furniture $ - $ - $ (400.00) $ (400.00) CR
11050 Equipment $ - $ 12,000.00 $ - $ 12,000.00 DR
11051 Accumulated Depreciation - Equipment $ - $ - $ (200.00) $ (200.00) CR
20010 A/P - General $ - $ 20,000.00 $ (66,000.00) $ (46,000.00) CR
20011 A/P - Wages to Employees $ - $ - $ (15,000.00) $ (15,000.00) CR
30010 Common Stock - Carry $ - $ - $ (50,000.00) $ (50,000.00) CR
30011 Common Stock - Mary $ - $ - $ (50,000.00) $ (50,000.00) CR
40010 Sales - Parts $ - $ - $ (15,000.00) $ (15,000.00) CR
40011 Sales - Services $ - $ - $ (30,000.00) $ (30,000.00) CR
40012 Sales - Supplies $ - $ - $ (10,000.00) $ (10,000.00) CR
50010 Cost of Goods Sold - Parts $ - $ 10,000.00 $ - $ 10,000.00 DR
50011 Cost of Goods Sold - Services $ - $ 15,000.00 $ - $ 15,000.00 DR
50012 Cost of Goods Sold - Supplies $ - $ 5,000.00 $ - $ 5,000.00 DR
60010 Insurance Expense $ - $ 1,000.00 $ - $ 1,000.00 DR
60020 Rent Expense $ - $ 1,250.00 $ - $ 1,250.00 DR
60030 Advertising Expense $ - $ 1,000.00 $ - $ 1,000.00 DR
60040 Depreciation Expense $ - $ 600.00 $ - $ 600.00 DR
60050 Utilities Expense $ - $ 200.00 $ - $ 200.00 DR
Total Beginning Balance $ -
Total Debits $ 288,300.00
Total Credits $ (288,300.00)
Total Ending Balance $ -
University Computers Unlimited
Balance Sheet
as of August 31, 2002
Assets
Current Assets:
10000 Cash $ 89,300.00
10010 A/R - General $ 30,000.00
10011 A/R - Refundable Deposits $ 1,250.00
10020 Inventory - Parts $ 10,000.00
10021 Inventory - Supplies $ 5,000.00
10030 Prepaid Insurance $ 11,000.00
Total Current Assets: $ 146,550.00
Noncurrent Assets:
11040 P,P,& E - Furniture $ 24,000.00
11041 Accumulated Depreciation - Furniture $ (400.00)
11050 Equipment $ 12,000.00
11051 Accumulated Depreciation - Equipment $ (200.00)
Total Noncurrent Assets: $ 35,400.00
Total Assets: $ 181,950.00
Liabilities & Owner's Equity
Liabilities:
20010 A/P - General $ 46,000.00
20011 A/P - Wages to Employees $ 15,000.00
Total Liabilities: $ 61,000.00
Owner's Equity:
30010 Common Stock - Carry $ 50,000.00
30011 Common Stock - Mary $ 50,000.00
30020 Retained Earnings $ 20,950.00
Total Owner's Equity: $ 120,950.00
Total Liability & Owner's Equity: $ 181,950.00
University Computers Unlimited
Income Statement
for Period Ending August 31, 2002
Revenue:
40010 Sales - Parts $ 15,000.00
40011 Sales - Services $ 30,000.00
40012 Sales - Supplies $ 10,000.00
Total Revenues: $ 55,000.00
Cost of Goods Sold:
50010 Cost of Goods Sold - Parts $ 10,000.00
50011 Cost of Goods Sold - Services $ 15,000.00
50012 Cost of Goods Sold - Supplies $ 5,000.00
Total Cost of Goods Sold: $ 30,000.00
Gross Profit: $ 25,000.00
Expenses:
60010 Insurance Expense $ 1,000.00
60020 Rent Expense $ 1,250.00
60030 Advertising Expense $ 1,000.00
60040 Depreciation Expense $ 600.00
60050 Utilities Expense $ 200.00
Total Operating Expenses: $ 4,050.00
Operating Income (Loss) $ 20,950.00
Income Tax Expense (Benefit) $ -
Net Income (Loss) $ 20,950.00