Worksheet-A

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WAREN DISTRIBUTING, YEAR-END WORKSHEET, DECEMBER 31, 2001 TRANSACTIONS LIST A (Accounts with no activity in this worksheet are excluded in this solution.) 12/31/2000 12/31/2001 ACCT ACCOUNT POST CLOSING UNADJUSTED NO. TITLE TRIAL BALANCE TRIAL BALANCE DEBIT CREDIT DEBIT CREDIT ASSETS Cash Accounts receivable Allowance for doubtful accounts Inventory Marketable securities Fixed assets Accumulated depreciation Student Name_________________________________________ Instructor_______________________Date Due_________________ ADJUSTED TRIAL BALANCE DEBIT CREDIT INCOME STATEMENT DEBIT CREDIT BALANCE SHEET DEBIT CREDIT YEAR-END ADJUSTMENTS ID # DEBIT ID # CREDIT 10100 10200 10300 10400 10600 10800 10900 9,832.17 14,724.00 1,536.25 52,375.00 128,490.00 17,017.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20100 20300 20400 20500 20600 20700 20900 21000 LIABILITIES Accounts payable Federal income taxes withheld State unemployment taxes payable Federal unemployment taxes payable F.I.C.A. taxes payable Federal incomes taxes payable Interest payable Notes payable STOCKHOLDERS' EQUITY Common stock Retained earnings REVENUE AND GROSS PROFIT Sales Sales returns and allowances Sales discounts taken Cost of goods sold Purchases Purchases returns and allowances Purchases discounts taken Freight-in Miscellaneous revenue EXPENSES Rent expense Advertising expense Office supplies expense Depreciation expense Wages and salaries expense Payroll tax expense Federal income tax expense Interest expense Bad debt expense Other operating expense Sub-totals Net Income (Loss) TOTALS 17,398.50 517.82 68.90 17.15 415.00 3,187.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 26000 29000 75,000.00 90,263.55 0.00 0.00 0.00 0.00 30100 30200 30300 30400 30500 30600 30700 30800 31200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 40100 40200 40300 40400 40500 40600 40700 40800 40900 41000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ----------------- ----------------- ----------------- ----------------- -------- ----------------- -------- ----------------- ----------------- ----------------205,421.17 205,421.17 0.00 0.00 0.00 0.00 0.00 0.00 WAREN DISTRIBUTING BALANCE SHEET AT DECEMBER 31, 2000 AND 2001 ASSETS 2001 CURRENT ASSETS Cash Accounts receivable - net Inventory Marketable securities Total current assets FIXED ASSETS - Net of accumulated depreciation Total assets $0.00 0.00 0.00 0.00 0.00 2000 $9,832.17 13,187.75 52,375.00 0.00 75,394.92 0.00 $0.00 111,473.00 $186,867.92 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable Payroll taxes withheld and payable Federal income taxes payable Interest payable Total current liabilities NOTE PAYABLE Total liabilities STOCKHOLDERS' EQUITY Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $0.00 0.00 0.00 0.00 0.00 0.00 0.00 $17,398.50 1,018.87 3,187.00 0.00 21,604.37 0.00 21,604.37 0.00 0.00 0.00 75,000.00 90,263.55 165,263.55 $0.00 $186,867.92 WAREN DISTRIBUTING STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2001 REVENUE Sales Less: Sales returns and allowances Sales discounts taken Net sales COST OF GOODS SOLD Beginning inventory Net purchases Freight-in Goods available for sale Less: Ending inventory Cost of goods sold GROSS MARGIN OPERATING EXPENSES Rent expense Advertising expense Office supplies expense Depreciation expense Wages and salaries Payroll taxes Bad debt expense Other operating expense Total operating expenses Operating income OTHER INCOME - Miscellaneous income OTHER EXPENSE - Interest expense INCOME BEFORE TAXES FEDERAL INCOME TAXES NET INCOME RETAINED EARNINGS - Beginning of year RETAINED EARNINGS - End of year $0.00 0.00 0.00 0.00 52,375.00 0.00 0.00 52,375.00 0.00 52,375.00 (52,375.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (52,375.00) 0.00 0.00 (52,375.00) 0.00 (52,375.00) 90,263.55 $37,888.55 WAREN DISTRIBUTING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 CASH FLOWS FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash from operating activities Depreciation (Increase) decrease in assets: Accounts receivable Inventory Increase (decrease) in liabilities: Accounts payable Payroll taxes withheld and payable Income taxes payable Interest payable Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Cash payments for fixed assets Purchase of marketable securities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Cash proceeds from loans NET INCREASE IN CASH CASH - Beginning of year CASH - End of year ($52,375.00) 0.00 13,187.75 52,375.00 (17,398.50) (1,018.87) (3,187.00) 0.00 (8,416.62) 128,490.00 0.00 128,490.00 0.00 120,073.38 9,832.17 $129,905.55 SCHEDULE OF NONCASH INVESTING ACTIVITIES Purchase of fixed assets with accounts payable WAREN DISTRIBUTING POST-CLOSING TRIAL BALANCE December 31, 2001 ACCT. NO. ACCOUNT TITLE DEBIT CREDIT ASSETS 10100 10200 10300 10400 10600 10800 10900 Cash Accounts receivable Allowance for doubtful accounts Inventory Marketable securities Fixed assets Accumulated depreciation LIABILITIES 20100 20300 20400 20500 20600 20700 20900 21000 Accounts payable Federal income taxes withheld State unemployment taxes payable Federal unemployment taxes payable F.I.C.A. taxes payable Federal income taxes payable Interest payable Notes payable STOCKHOLDERS' EQUITY 26000 29000 Common stock Retained earnings TOTALS $0.00 0.00 0.00 $0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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