lOMoARcPSD|3108253

Case - Forest City Tennis Club

Accounting and Business Analysis (The University of Western Ontario)

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Forest City Tennis Club - Pro Shop and Bar Lounge

General Ledger

[1] Cash 100,000

Common Shares 100,000

[2] Inventory 16,340

Cash 16,340

[3] Liquor Inventory 13,660

Cash 13,660

[4] Fixtures 11,000

Cash 11,000

[5] Glassware 4,000

Cash 4,000

[6] Cash 53,700

Pro Shop Sales 53,700

[7] Cash 22,650

Match Revenues 22,650

[8] Cash 45,600

Instruction Revenues 45,600

[9] Cash 64,550

Liquor Sales 64,550

[10] Cash 3,050

Other Revenue 3,050

[11] Rent Expense 18,000

Prepaid Rent 1,500
Cash 19,500
Rent Expense:1,500*12=18,000
Prepaid Rent: 19,500-18,000=1,500

[12] Fixtures 8,400

Cash 8,400

[13] Inventory 26,650

Cash 26,650

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[14] Liquor Inventory 14,400

Cash 14,400

[15] Wages Expense 51,500

Cash 51,500
24,000+27,500=51,500

[16] Salaries Expense 52,000

Cash 52,000

[17] Fixtures 4,200

Accounts Payable 4,200

[18] Inventory 2,000

Accounts Payable 2,000

[19] Liquor Sales 650

Unearned Liquor Revenue 650

[20] Amortization Expense 2,200

Accumulated Amortization - Fixtures 2,200
11,000/5=2,200

[21] Amortization Expense 131

Accumulated Amortization - New Fixtures 131
(8,400+4,200)/8*(1/12)=131

[22] Amortization Expense 2,000

Accumulated Amortization - Glassware 2,000
4,000/2=2,000

[23] Accounts Receivable 15,000

Instruction Revenues 15,000
(606*100)-45,600=15,000

[24] Accounts Receivable 600

Match Revenues 600
4*150=600

[25] Inventory Cost of Goods Sold 27,110

Inventory 27,110
(16,340+26,650+2,000)-17,880=27,110

[26] Liquor Cost of Goods Sold 16,140

Liquor 16,140

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(13,660+14,400)-11,920=16,140

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ASSETS LIABILITIES & OWNER'S EQUITY

CASH PREPAID RENT LIQUOR INV INVENTORY A/P UNEARNED REVENUE TAXES PAYABLE
100000 [1] 1500 [11] 13660 [3] 16340 [2] [17] 4200 [19] 650 C3 10626
[2] 16340 1500 E/B 14400 [14] 26650 [13] [18] 2000 E/B 650 E/B 10626
[3] 13660 28060 T/B 2000 [18] E/B 6200
[4] 11000 COGS [26] 16140 44990 T/B
[5] 4000 11920 E/B COGS [25] 27110
53700 [6] 17880 E/B
22650 [7] FIXTURES A/A-FIXTURES
45600 [8] 11000 [4] [20] 2200
64550 [9] 8400 [12] [21] 131
3050 [10] 4200 [17] E/B 2331
[11] 19500 23600 E/B
[12] 8400 COMMON SHARES RETAINED EARNINGS
[13] 26650 A/R GLASSWARE A/A-GLASSWARE [1] 100000 C5 24793
[14] 14400 15000 [23] 4000 [5] [22] 2000 E/B 100000 E/B 24793
[15] 51500 600 [24] 4000 E/B E/B 2000
[16] 52000 15600 E/B

72100 E/B
EXPENSES REVENUES
RENT WAGES SALARIES AMORTIZATION PRO SHOP INSTRUCTION LIQUOR INCOME SUMMARY
18000 [11] 51500 [15] 52000 [16] 2200 [20] [6] 53700 [8] 45600 [9] 64550 C1 204500
C2 18000 C2 51500 C2 52000 131 [21] 53700 C1 [23] 15000 650 [19] 169081 C2
2000 [22] T/B 60600 T/B 63900 T/B 35419
4331 T/B 60600 C1 63900 C1 10626 C4
C2 4331 T/B 24793
COGS LIQUOR COGS TAXES MATCH OTHER 24793 C5
27110 [25] 16140 [26] 10626 C3 [7] 22650 [10] 3050
C2 27110 C2 16140 C4 10626 [24] 600 3050 C1
T/B 23250
23250 C1

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CLOSING ENTRIES

C1 Pro Shop Revenue 53,700

Instruction Revenue 60,600
Liquor Revenue 63,900
Match Revenue 23,250
Other Revenue 3,050
Income Summary 204,500

C2 Income Summary 169,081

Amortization 4,331
COGS 27,110
Liquor COGS 16,140
Rent 18,000
Salaries 52,000
Wages 51,500

C3 Taxes Expense 10,626

Taxes Payable 10,626

C4 Income Summary 10,626

Taxes Expense 10,626

C5 Income Summary 24,793

Retained Earnings 24,793

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Forest City Tennis Club - Pro Shop and Bar Lounge

Trial Balance
As At June 30, 2008

Cash $ 72,100
Accounts Receivable 15,600
Prepaid Rent 1,500
Liquor Inventory 11,920
Inventory 17,880
Fixtures 23,600
A/A-Fixtures $ 2,331
Glassware 4,000
A/A-Glassware 2,000
Accounts Payable 6,200
Unearned Revenue 650
Taxes Payable 10,626
Common Shares 100,000
Retained Earnings 24,793
Total: 146,600 146,600

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Forest City Tennis Club - Pro Shop and Bar Lounge

Income Statement
For the Year Ended June 30, 2008

Revenues
Pro Shop Revenue 53,700
Instruction Revenue 60,600
Liquor Revenue 63,900
Match Revenue 23,250
Other Revenue 3,050
Total Revenue 204,500

COGS 27,110
Liquor COGS 16,140 43,250
Gross Margin 161,250

Operating Expenses
Amortization 4,331
Rent 18,000
Salaries 52,000
Wages 51,500
Total Operating Expenses 125,831

Net Income Before Tax 35,419

Income Tax Expense 10,626
Net Income 24,793

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Forest City Tennis Club - Pro Shop and Bar Lounge

Balance Sheet
As At June 30, 2008

Assets

Current Assets
Cash $ 72,100
Accounts Receivable 15,600
Prepaid Rent 1,500
Pro Shop Inventory 17,880
Liquor Inventory 11,920
Total Current Assets $ 119,000

Fixed Assets
Fixtures $ 23,600
A/A-Fixtures 2,331 21,269
Glassware $ 4,000
A/A-Glassware 2,000 2,000
Total Fixed Assets $ 23,269

Total Assets $ 142,269

Liabilities & Shareholder's Equity

Current Liabilities
Accounts Payable $ 6,200
Unearned Revenue 650
Taxes Payable 10,626
Total Current Liabilities $ 17,476

Shareholder's Equity
Common Shares $ 100,000
Retained Earnings 24,793
Total Shareholder's Equity 124,793

Total Liabilities & Shareholder's Equity $ 142,269

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