Expo Corporation

Journal Entries
1-Feb

2-Feb

3-Feb

5-Feb

14-Feb

15-Feb

25-Feb

26-Feb

28-Feb

1-Mar

2-Mar

3-Mar

4-Mar

5-Mar

6-Mar

Cash
Common stock
Additional Paid up cap
Equipment
Notes Payable

Dr
2,000,000

100
1,999,900
500,000
500,000

Comp Equipment
Accounts Payable

30,000

Inventory
Accounts Payable

142,500

Advertising Exp
Cash

30,000

142,500
12,000
12,000

Inventory
Accounts Payable

750,000

Accounts Payable
Cash

30,000

Rent
Cash

25,000

Wages
Cash

65,000

Cash
Bonds Payable
Prepaid Insurance
Cash
Accounts Payable
Cash
Utility Exps
Cash
Cash
Service revenue
Cash
Unearned Revenue

Cr

750,000

30,000

25,000

65,000
100,000
100,000
1,500
1,500
142,500
142,500
9,000
9,000
40,000
40,000
180,000
180,000

8-Mar

10-Mar

14-Mar

15-Mar

17-Mar

18-Mar

21-Mar

27-Mar

28-Mar

30-Mar

31-Mar

31-Mar

Inventory
Accounts Payable

1,280,000

Accounts Receivable
Sales Revenue
COGS
Inventory

1,000,000

Employee Wages
Cash

1,280,000

1,000,000
800,000
800,000
35,000
35,000

Accounts Receivable
Inventory
COGS
Inventory

210,000

Cash
Sales Discount
Accounts Receivable

980,000
20,000

Advertising Exps
Accounts Payable

210,000
160,000
160,000

1,000,000
7,000
7,000

Accounts Receivable
Inventory
COGS
Inventory

630,000

Cash
Allowances for Uncollectable Accounts
Accounts Receivable

150,000
60,000

Accounts receivable
Inventory
COGS
Inventory

875,000

630,000
470,000
470,000

210,000

875,000
525,000
525,000

Rent
Prepaid Rent
Cash

25,000
75,000

Utilities Expense
Accounts Payable

13,000

Dividend
Cash

10,000

100,000

13,000

10,000

Cash
2000000
1000000
40000
180000
980000
150000

4350000
Additional paid in cap
1999900
1999900

Comp equip
30000
30000

Prepaid Adv exp

12000
12000

Bonds payable
1000000
1000000

Common stock
12000
30000
25000
65000
18000
142500
9000
35000
100000
10000
446500

-3903500

Equipment
500000
500000

142500
Accounts payable
30000
30000
142500
750000
1280000
7000
13000
172500
2222500
2050000

Rent exp
25000
25000
50000

prepaid insu exp

18000
1,500

18000

Service revenue
40000
1000000
210000
630000
875000
2755000

Sales disctr
20000
20000

Prepaid rent exp

75000

Unearned serv revenue

180000
180000
2715000

Advt exp
7000
7000

Dividend
10000

Common stock
100

Notes payable
500000
500000

Inventory
142500
800000
750000
160000
1280000
470000
525000
2172500
1955000
217500

Wages exp
65000
35000
100000

utility exp
9000
13000

22000

COGS
800000
160000
470000
525000
1955000

Uncollectable
60000
75,250
60000

Accounts receivable
1000000
1000000
210000
210000
630000
875000
2715000
1210000
1505000

Expo Corporation

Cash
Accounts Receiable
Allowance for Uncoll.
Computer equipment
Manufacturing equipment
Accum. Depreciation
Inventory
Prepaid insurance
Prepaid rent
Note payable
Bonds payable
Interest payable
Accounts Payable
Unearned revenue
Salary payable
Warranty reserve
Common stock
APIC
Retained Earnings
Dividends
Service revenue
Sales revenue
Sales discounts
COGS
Advertising expense
Rent expense
Salary expense
Utility expense
Bad Debt expense
Warranty expense
Depreciation expense
Insurance expense
Interest expense

Trial Balance
Dr
Cr
3,903,500
1,505,000
60,000
30,000
500,000

AJE's
Dr

Cr

Adjusted
Trial Balance
Dr
3,903,500
1,505,000

135,250
30,000
500,000
9,167

217,500
18,000
75,000

1,500

217,500
16,500
75,000

500,000
1,000,000
16,667
2,050,000
180,000
42,000
108,600
100
1,999,900
10,000

10,000
40,000
2,715,000

20,000
1,955,000
19,000
50,000
100,000
22,000

8,485,000

310,500

42,000

8,485,000

135,250
108,600
9,167
1,500
16,667
313,184

313,184

20,000
1,955,000
19,000
50,000
142,000
22,000
135,250
108,600
9,167
1,500
16,667
8,736,684

Adjusted
Trial Balance
Cr

Closing
Entries
Dr

Cr

75,250

9,167

500,000
1,000,000
16,667
2,050,000
180,000
42,000
108,600
100
1,999,900
265,816
10,000
40,000
2,715,000

8,736,684

Post-Closing
Trial Balance
Dr
Cr
3,903,500
1,505,000
0
75,250
30,000
0
500,000
0
0
9,167
217,500
0
16,500
0
75,000
0
0
500,000
0
1,000,000
0
16,667
0
2,050,000
0
180,000
0
42,000
0
108,600
0
100
0
1,999,900
0
265,816

40,000
2,715,000

2,755,000

20,000
1,955,000
19,000
50,000
142,000
22,000
135,250
108,600
9,167
1,500
16,667
2,755,000

6,247,500

6,247,500

Expo Corporation
Adjusting Journal Entries
AJE 1

AJE 2

Warrsanty Exp
Warranty Exp liab

Bad debts

Dr
108,600

108,600

75,250
Allowances for uncoll

AJE 3

Wages Exp

75,250

42,000
Wages Payable

AJE 4

Dep

42,000

9,167
Accum dep

AJE 5

Int exp

9,167

10,000
Int payable

AJE 6

Int Exp

10,000

6,667
Int Payable

AJE 7

Cr

Ins Exp

6,667

1,500
Prepaid Insurance

1,500

Warranty exp
108,600

108600

60000
5000

Warranty Exp liab

108,600

Bad debts
75,250

80000
40000
6666.66667 6666.66667

Wages Exp
42,000

Wages Payable
42,000

Dep
9,167

Accum dep
9,167

Ins Exp
10,000
1,500
Int Payable
10,000

Expo Corporation
Closing Entries
Dr
Revenue
Sales Discount
COGS
Retained Earnings
Retained Earnings
Advertising expense
Rent expense
Salary expense
Utility expense
Bad Debt expense
Warranty expense
Depreciation expense
Insurance expense
Interest expense
Dividend

Cr

2,755,000
20,000
1,955,000
780,000
514,184
19,000
50,000
142,000
22,000
135,250
108,600
9,167
1,500
16,667
10,000

Retained Earning
514184
1955000
265816

Retained Earning
2735000

Expo Corporation
Property, Plant, & Equipment

Property
Description
Manufacturing Equip.

Date
in Service
February 2, 2010

Cost
500,000

Computer Equip.

February 3, 2010

30,000

Estimated
Salvage
10,000

Depreciable
Value
8,167
1,000

Useful Life
Annual
(in years) Depreciation
10
49,000
5

6,000

Monthly
Depreciation
4,083
500

Expo Corporation
Inventory Detail
Quantity
Beginning Inventory
none

Unit Price

Total
Cost
none

Purchases:
5-Feb
10,000
$14.25
$142,500
15-Feb
50,000
$15.00
$750,000
8-Mar
80,000
$16.00 $1,280,000
Total Goods Available for Sale $2,172,500

Sales:
10-Mar
15-Mar
21-Mar
28-Mar

50,000
10,000
30,000
35,000

LIFO
unit cost
$16.00
$16.00
$15.00

LIFO
total cost
$800,000
$160,000
$470,000
$525,000

Total COGS $1,955,000

LIFO Ending Inventory

What would FIFO COGS and Ending Inventory be?

Sales:

FIFO
unit cost

Total COGS

FIFO Ending Inventory

FIFO
total cost

Expo Corporation
Income Statement
For the three month period ended March 31, 2010
Revenue
COGS
Sales Discount
GP

2,755,000
(1,955,000)
(20,000)
780,000

Expenses
Advertising expense
Rent expense
Salary expense
Utility expense
Bad Debt expense
Warranty expense
Depreciation expense
Insurance expense
Interest expense

19,000
50,000
142,000
22,000
135,250
108,600
9,167
1,500
16,667
504,184

Net Income

275,816

Expo Corporation
Balance Sheet
As of March 31, 2010
Assets
Cash
AR
Less Allowance
Inventory
Prepaid Insurance
Prepaid Rent
Equipment
Accum Dep
Total Assets
Liabilities
Note payable
Bonds payable
Interest payable

3903500
1505000
-75250
217500
16500
75000
530000
-9166
6163084

500,000
1,000,000
16,667

Accounts Payable
Unearned revenue
Salary payable
Warranty reserve
Total Liab

2,050,000
180,000
42,000
108,600
3,897,267

Equity
Common stock
APIC
Retained Earnings
Total Equity

100
1,999,900
265,816
2,265,816
6,163,083

Expo Corporation
Statement of Change in Stockholders' Equity
For the three month period ended March 31, 2010
Shareholders Equity
Common Stock
Additional Paid in cap
Total
Retained Earnings
Total Stockholders equity

100
1999900
2000000
265816
2265816