Entries Allocations 2016 Annual decisions Clothing mark-up rate (as a percentage) Amount of inventory to purchase (in units) Amount spent on marketing (in dollars) Number of employees (total) Amount spent on employee training (in dollars) Maximum Dividend you would like to pay (in dollars) 105% 180000 10000 50 5000 0 Team Number Chart of Accounts Cash Accounts Receivable Merchandise Inventory Notes Payable Common Stock APIC - Common Stock Preferred Stock APIC - Preferred Stock Retained Earnings Dividends Sales Revenue Payroll Expense Payroll Tax Expense Training Expense Rent Expense Storage Expense Insurance Expense Marketing Expense Utilities Expense Interest Expense Depreciation Expense-Equipment Accumulated Depreciation-Equipment 7 200,000 0 0 4,506,702 1550 1,268,450 0 0 -5,066,702 0 320,000 4,200,000 321,300 200,000 120,000 0 50,000 200,000 25,000 270,402 75000 75000 Team Number Journal Entries 1/1- 12/31/2015 Account Cash Notes Payable Cash Sales Revenue Cost of Goods Sold Merhcandise Inventory Payroll Expense Cash Payroll Tax Expense Cash Training Expense Cash Rent Expense Cash Insurance Expense Cash Marketing Expense Cash Utilities Expense Cash Interest Expense Cash Depreciation Expense-Equipment Accumulated Depreciation-Equipment DR Amount CR Amount 4,506,702 4,506,702 320000 320000 160000 160000 4200000 4200000 321300 321300 200000 200000 120000 120000 50000 50000 200000 200000 25000 25000 270402 270402 75000 75000 Team Number Income Statement 1/1- 12/31/2015 Revenues 7 Net Sales Cost of Goods Sold Gross Profit 320000 160000 160000 Operating Expenses Payroll Expense Payroll taxes Training Expense Rent Expense Insurance Expense Marketing Expense Utilities Expense Interest Expense Depreciation Expense Total Expenses Net Loss 4200000 321,300 200,000 120,000 50,000 200,000 25,000 270,402 75,000 5461702 -5301702 -5301702 Team Number Balance Sheet 12/31/2015 Assets Current Assets Cash Stockholders' Equity and Liabilities 200000 Long Term Assets Equipment Less: Accumulated Depreciation Total Assets 350000 -75000 475000 Liabilities Short-Term Liabilities Note payable Total Liabilities Stockholds' Equity Common Stock APIC-CS Negative Retained Earnings Total Stockholder's Equity Total stockholder's equity and liabilities nd Liabilities 4506702 4506702 1550 1268450 -5301702 uity and liabilities -4031702 475000 ccounts Allocations 2018 Annual decisions Clothing mark-up rate (as a percentage) Amount of inventory to purchase (in units) Amount spent on marketing (in dollars) Number of employees (total) Amount spent on employee training (in dollars) Maximum Dividend you would like to pay (in dollars) 110% 10000 10000 80 5000 0 How much of a discount do you wish to offer for early payment from credit card holders? (as a percentage) If you wish to offer a discount, what is the discount term length? (in days) 4% 30 Days Important Event Your original equipment is wearing out and needs to be replaced. The replacement equipment had a retail price of $850,000 You paid $14,000 for delivery and set-up charges, along with 9% sales tax on everything. Additionally, you were able to trade in your old equipment for a $6,500 credit against the new gear. On 1/1/18, you took out a loan to pay for this equipment and traded in your old equipment. The new equipment is expected to last for 10 years and have a salvage value of $25,000. Provide the journal entry to record the disposal and acquisition of the equipment as described above. Keep in mind that this will not be reported on the financial statements accompanying this allocation. It will need to be reported on your income statement and balance sheet for the period ending 12/31/18, which you will complete in stage 6. Account DR CR Account Receivable 6500 Accumulated Depreciation 225000 Loss 118500 Equpiment 350000 Cash Accounts Payable 935260 Equipment Account receivable Cash 941760 935260 6500 935260 nt had a retail price of $850,000. tionally, you were able to trade d above. Keep in mind that this be reported on your income e 6. Team Number Chart of Accounts Cash Accounts Receivable Merchandise Inventory Notes Payable Common Stock APIC - Common Stock Preferred Stock APIC - Preferred Stock Retained Earnings Dividends Sales Revenue Payroll Expense Payroll Tax Expense Training Expense Rent Expense Storage Expense Insurance Expense Marketing Expense Utilities Expense Interest Expense Bad Debt Expense Depreciation Expense 200000 81305 8096280 9,417,557 1550 1268450 150000 300000 -2241222 0 4,759,300 1750000 133875 5000 820000 0 75000 10000 37000 565053 17847 131250 Team Number Journal Entries 1/1- 12/31/2017 Account Cash Sales Revenue Payroll Expense Cash Payroll Tax Expense Cash Training Expense Cash Rent Expense Cash Storage Expense Cash Insurance Expense Cash Marketing Expense Cash Utilities Expense Cash Interest Expense Cash Cash Notes Payable Accounts Receivable Sales Revenue Bad Debt Expenses Allowance for doubtful accounts Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation DR Amount CR Amount 4,660,148 4,660,148 1750000 1750000 133875 133875 5000 5000 820000 820000 0 0 75000 75000 10000 10000 37000 37000 565053 565053 9417557 9417557 81305 81305 17847 17847 75000 75000 56250 56250 Team Number Income Statement 1/1 - 12/31/17 Sales Cost of good sold Gross profit Opreating Expenses Payroll Expense Payroll Tax Expense Training Expense Rent Expense Storage Expense Insurance Expense Marketing Expense Utilities Expense Depreciation Expense Interest Expense Bad Debt Expenses Total opreating expenses Net loss 4,759,300 1,903,720 2,855,580 1750000 133875 5000 820000 0 75000 10000 37000 131250 565053 17847 3545025 (689,445) Team Number Balance Sheet 12/31/2017 Assets Current Assets Cash Accounts Receivable Inventory Long Term Assets Equipment Less: Accumulated Depreciation Total Assets 200000 81305 8096280 800000 -281250 8896335 Liabilities Short-Term Liabilities Note payable Total Liabilities Stockholds' Equity Common Stock APIC-CS Preferred stock APIC-PS Retained Earnings Total Stockholder's Equity Total stockholder's equity and liabilities 9,417,557 9,417,557 1550 1268450 150000 300000 -2241222 -521222 8,896,335 Stage 3 Allocations 2017 Annual decisions Clothing mark-up rate (as a percentage) Amount of inventory to purchase (in units) Amount spent on marketing (in dollars) Number of employees (total) Amount spent on employee training (in dollars) Maximum Dividend you would like to pay (in dollars) How much of a discount do you wish to offer for early payment from credit card holders? (as a percentage) If you wish to offer a discount, what is the discount term length? (in days) 150% 250000 10000 50 5000 0 4% 60 days Important Event A new investor approached you with a proposal on 1/1/17. She had a fully equipped store that she wanted you to take over exchange for preferred stock. You exchanged 1,500 shares of par $100, 5% non-cumulative preferred stock for a equipment valued at $450,000. The equipment is expected to last another 8 years and be worthless after that time. Permanent Decision Choose your new location: Major Mall Provide the journal entry to record the stock transaction on 1/1/17 below. Keep in mind that this will not be reported on the balance sheet accompanying this allocation. It will be reported as an entry with your stage 5 submission. Account DR CR Equipment 450000 Preferred Stock 150000 APIC-PS 300000 she wanted you to take over in eferred stock for a equipment that time. his will not be reported on the ubmission. Team Number Chart of Accounts 1/1- 12/31/2016 Cash Accounts Receivable Merchandise Inventory Notes Payable Common Stock APIC - Common Stock Preferred Stock APIC - Preferred Stock Retained Earnings Dividends Sales Revenue Payroll Expense Payroll Tax Expense Training Expense Rent Expense Storage Expense Insurance Expense Marketing Expense Utilities Expense Interest Expense Depreciation Expense Income Tax Expense 7 200000 0 0 681777 1550 1,268,450 150000 300000 -1551777 0 14760000 1750000 133875 5000 120000 0 50000 10000 25000 34089 75000 1607111 Team Number Journal Entries 1/1- 12/31/2016 Account Cash Notes Payable Cash Sales Revenue Cost of Goods Sold Merchandise Inventory Payroll Expense Cash Payroll Tax Expense Cash Training Expense Cash Rent Expense Cash Insurance Expense Cash Marketing Expense Cash Utilities Expense Cash Interest Expense Cash Depreciation Expense Accumulated Depreciation Income Tax expense Cash 7 DR Amount CR Amount 681777 681777 14760000 14760000 7200000 7200000 1750000 1750000 133875 133875 5000 5000 120000 120000 50000 50000 10000 10000 25000 25000 34089 34089 75000 75000 1607111 1607111 Team Number Income Statement 1/1 - 12/31/2016 Revenue Net Sales Cost of Goods Sold 7 14760000 7200000 Gross profit Operating Expenses Payroll Expense Payroll Tax Expense Training Expense Rent Expense Insurance Expense Marketing Expense Utilities Expense Interest Expense Depreciation Expense Total Operating Expenses Income From Operations Income Tax Expense Net income 7560000 1750000 133875 5000 120000 50000 10000 25000 34089 75000 2202964 5357036 1607111 3749925 Team Number 7 Balance Sheet 12/31/2016 Assets Current Assets Cash Long Term Assets Equipment Less: Accumulated Depreciation Total Assets 200000 350000 -150000 400000 Liabilities Short-Term Liabilities Note payable 681777 Total Liabilities Stockholds' Equity Common Stock 1550 APIC-CS 1268450 Retained Earnings -1551777 Total Stockholder's Equity Total stockholder's equity and liabilities 681777 -281777 400000 e Stmt Allocations 2018 Annual decisions Important Event Your original equipment is wearing out and needs to be replaced. The replacement equipment had a retail price of $850,000 You paid $14,000 for delivery and set-up charges, along with 9% sales tax on everything. Additionally, you were able to trade in your old equipment for a $6,500 credit against the new gear. On 1/1/18, you took out a loan to pay for this equipment and traded in your old equipment. The new equipment is expected to last for 10 years and have a salvage value of $25,000. Provide the journal entry to record the disposal and acquisition of the equipment as described above. Keep in mind that this will not be reported on the financial statements accompanying this allocation. It will need to be reported on your income statement and balance sheet for the period ending 12/31/18, which you will complete in stage 6. Account DR CR nt had a retail price of $850,000. tionally, you were able to trade d above. Keep in mind that this be reported on your income e 6. Team Number Chart of Accounts Cash Accounts Receivable Merchandise Inventory Notes Payable Common Stock APIC - Common Stock Preferred Stock APIC - Preferred Stock Retained Earnings Dividends Sales Revenue Payroll Expense Payroll Tax Expense Training Expense Rent Expense Storage Expense Insurance Expense Marketing Expense Utilities Expense Interest Expense Team Number Journal Entries 1/1- 12/31/2017 Account DR Amount CR Amount Team Operational Results Renown Event Sales Volume Sales Revenues Quantity of Inventory written off Ending Balances Ending Cash Balance Ending Net Accounts Receivable Balance Ending Inventory Quantity Ending Short-term Notes Payable Balance Cashflows Revenues Clothing Sales Receipts Expenses Payroll Payroll Tax Staff Training Store Rent Storage Rental Insurance Marketing Utilities Interest Corporate Income Tax Other Dividends Noncash Expenses Loss on disposal Bad Debt Expense Cost of Goods Sold Inventory W/O Expense 7 Nothing unusual happens 44,897 3,771,348 167,510 200,000 64,427 11,638,228 3,774,083 2,800,000 214,200 5,000 820,000 75,000 10,000 37,000 698,294 118,500 14,143 1,795,880 6,700,400 Team Number Income Statement 1/1 - 12/31/18 Sales Cost of good sold Gross profit Opreating Expenses Loss on Disposal Inventory W/O Expense Payroll Expense Payroll Tax Expense Training Expense Rent Expense Storage Expense Insurance Expense Marketing Expense Utilities Expense Interest Expense Depreciation Expense Bad Debt Expenses Total opreating expenses Net loss 3,771,348 1,795,880 1,975,468 118,500 6,700,400 2,800,000 214,200 5,000 820,000 75,000 10,000 37,000 698,294 147,926 14,143 11,640,463 -9,664,995 -9655819 -9,664,995 Team Number Balance Sheet 12/31/2018 Assets Current Assets Cash Net Accounts Receivable Long Term Assets Equipment Less: Accumulated Depreciation Total Assets 200,000 64,427 1391760 -204176 1,452,011 Liabilities Short-Term Liabilities Note payable Total Liabilities Stockholds' Equity Common Stock APIC-CS Preferred stock APIC-PS Retained Earnings Total Stockholder's Equity Total stockholder's equity and liabilities - 11,638,228 11,638,228 1550 1268450 150000 300000 -11906217 -10186217 1,452,011 uity and liabilities - 
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