CASE 3: TABLE OF CONTENTS
Data Sheet...30-31 General Ledger...32 Unadjusted Trial Balance...33 Adjusting Entries...34 Adjusted Trial Balance...35 Closing Entries...36 Balance Sheet...37 Income Statement...38 Statement of Retained Earnings...39 Cash Flow Classifications...39
Beg inn ing Bal ance
(Fe bru ary 28, 20 09)
1. P urc has e In ven tory
2. In cur Fac tory W ages
3. S ell Inve nto ry for Cas h
and on Acc oun t
4. P ay fo r In ven tory
5. C olle ct Re cei vab les
6. In cur SG
&A (cas h
and pay able )
7. P ay W ages
8. Re cei ve Fran chi se Fee
9. P urc has e P P&
E
10.
D ivi den ds Dec lar ed
and Pai d
11.
Al l O ther Tr ansac tion s
Unad jus ted Trial Bal ance
Cash and Cash Equivalents1,253,94717,000,0008,200,0004,100,0002,000,0006,423,789125,000498,8322,403,458790,2243,743,092 Accounts Receivable4,229,7335,000,0004,100,000702,2074,427,526 Notes Receivable, Current091,05991,059 Inventories4,064,6117,500,0006,000,00014,000,00066,3283,498,283 Deferred Income Taxes369,19792,052461,249 Other Current Assets224,3784,215220,163 Property and Equipment, Net5,253,598498,832132,8595,885,289 Notes Receivable, Less Current124,452139,198263,650 Goodwill, Net1,046,9441,046,944 Intangible assets, Net183,13573,110110,025 Other Long Term Assets91,0573,00788,050 Accounts Payable1,074,6437,500,0008,200,000503,189877,832 Accrued Salaries and Wages423,7896,000,0006,423,7890 Other Accrued Expenses531,9413,300,0002,885,413946,528 Dividends Payable598,9863,7091602,694 Deferred Income142,000125,00046,062220,938 Deferred Income Taxes827,70066,729894,429 Common Stock179,6961,112180,808 Additional Paid-in-Capital7,311,280315,3227,626,602 Retained Earnings5,751,0172,407,1673,343,850 Sales022,000,000944,01722,944,017 Franchise and Royalty fees05,492,5315,492,531 Cost of Sales014,000,000693,78614,693,786 Franchise Costs01,499,4771,499,477 Sales and Marketing01,505,4311,505,431 General and Administrative02,044,569261,6221,782,947 Retail Operating01,750,0001,750,000 Depreciation and Amortization00 Interest Income027,21027,210 Income Tax Expense02,090,4682,090,468
Dr. Cr. Dr.
Unad jus ted Trial Bal ance
12.
Ad jus t fo r In ven tory
Count 13.
Re cor d D epr eci ation
14.
W age Acc rual
15.
Co nsu ltan t's Repo rt
Pre -cl osi ng Trial Bal ance
16.
Cl osi ng Entr y
Pos t-cl osi ng Bal ance
Actu al F ebr uar y 2 8, 2 010
F/S Figur es
Part C, GCash and Cash Equivalents3,743,0923,743,0923,743,0923,743,092 Accounts Receivable4,427,5264,427,5264,427,5264,427,526 Notes Receivable, Current91,05991,05991,05991,059 Inventories3,498,283216,8363,281,4473,281,4473,281,447 Deferred Income Taxes461,249461,249461,249461,249 Other Current Assets220,163220,163220,163220,163 Property and Equipment, Net5,885,289698,5805,186,7095,186,7095,186,709 Notes Receivable, Less Current263,650263,650263,650263,650 Goodwill, Net1,046,9441,046,9441,046,9441,046,944 Intangible assets, Net110,025110,025110,025110,025 Other Long Term Assets88,05088,05088,05088,050 Accounts Payable877,832877,832877,832877,832 Accrued Salaries and Wages0646,156646,156646,156646,156 Other Accrued Expenses946,528946,528946,528946,528 Dividends Payable602,694602,694602,694602,694 Deferred Income220,938220,938220,938220,938 Deferred Income Taxes894,429894,429894,429894,429 Common Stock180,808180,808180,808180,808 Additional Paid-in-Capital7,626,6027,626,6027,626,6027,626,602 Retained Earnings3,343,8503,343,8503,580,0776,923,9276,923,927 Sales22,944,01722,944,01722,944,017022,944,017 Franchise and Royalty fees5,492,5315,492,5315,492,53105,492,531 Cost of Sales14,693,786216,83614,910,62214,910,622014,910,622 Franchise Costs1,499,4771,499,4771,499,47701,499,477 Sales and Marketing1,505,4311,505,4311,505,43101,505,431 General and Administrative1,782,947639,2002,422,1472,422,14702,422,147 Retail Operating1,750,0006,9561,756,9561,756,95601,756,956 Depreciation and Amortization0698,580698,580698,5800698,580 Interest Income27,21027,21027,210027,210 Income Tax Expense2,090,4682,090,4682,090,46802,090,468
Dr. Cr. Dr.
Part B
Debits Credits
Inventory 7,500,000
Accounts Payable 7,500,000
Inventory 6,000,000
Accrued Salaries and Wages 6,000,000
Cash and Cash Equivalents 17,000,000
Accounts Receivable 5,000,000
Sales 22,000,000
Cost of Goods Sold 14,000,000
Inventory 14,000,000
Accounts Payable 8,200,000
Cash and Cash Equivalents 8,200,000
Cash and Cash Equivalents 4,100,000
Accounts Receivable 4,100,000
Sales and Marketing Expenses 1,505,431
Gen. and Admin. Expenses 2,044,569
Retail Operating Expenses 1,750,000
Cash and Cash Equivalents 2,000,000
Other Accrued Expenses 3,300,000
Accrued Salaries and Wages 6,423,789
Cash and Cash Equivalents 6,423,789
Cash and Cash Equivalents 125,000
Deferred Income 125,000
Property and Equipment, Net 498,832
Cash and Cash Equivalents 498,832
Retained Earnings 2,407,167
Cash and Cash Equivalents 2,403,458
Dividends Payable 3,709
11
General Ledger
*transactions given on data sheet*
Rocky Mountain Chocolate Factory, Inc.
1 2
3
4 5
6
7 8 9 10
Part D
Debits Credits Cash & Cash Equivalents $3,743,092
Accounts Receivable 4,427,526
Notes Receivable, Current 91,059
Inventories 3,498,283
Deferred Income Taxes 461,249
Other Current Assets 220,163
Property & Equipment, Net 5,885,289 Note Receivable, Less Current 263,650
Goodwill, Net 1,046,944
Intangible Assets, Net 110,025
Other Long Term Assets 88,050
Accounts Payable $877,832
Accrued Salaries & Wages 0
Other Accrued Expenses 946,528
Dividends Payable 602,694
Deferred Income 220,938
Deferred Income Taxes 894,429
Common Stock 180,808
Additional Paid-in-Capital 7,626,602
Retained Earnings 3,343,850
Sales 22,944,017
Franchise & Royalty Fees 5,492,531
Cost of Sales 14,693,786
Franchise Costs 1,499,477
Sales & Marketing Expenses 1,505,431 Gen. & Admin. Expenses 1,782,947
Retail Operating Expenses 1,750,000
Dep. & Amort. Expenses 0
Interest Income Expenses 27,210
Income Tax Expense 2,090,468
Totals: $43,157,439 $43,157,439
Unadjusted Trial Balance
Rocky Mountain Chocolate Factory, Inc.
As of Februrary 28, 2010
Part F
Cost of Goods Sold 216,836
Inventory 216,836
Dep. and Amort. Expense 698,580
Property and Equipment, Net 698,580
Gen. and Admin. Expense 639,200
Retail Operating Expense 6,956
Accrued Salaries and Wages 646,156
15
Rocky Mountain Chocolate Factory, Inc.
12 13
14
Debits Credits Adjusting Entries
*no entry*
Debits Credits Cash & Cash Equivalents $3,743,092
Accounts Receivable 4,427,526
Notes Receivable, Current 91,059
Inventories 3,281,447
Deferred Income Taxes 461,249
Other Current Assets 220,163
Property & Equipment, Net 5,186,709
Note Receivable, Less Current 263,650
Goodwill, Net 1,046,944
Intangible Assets, Net 110,025
Other Long Term Assets 88,050
Accounts Payable $877,832
Accrued Salaries & Wages 646,156
Other Accrued Expenses 946,528
Dividends Payable 602,694
Deferred Income 220,938
Deferred Income Taxes 894,429
Common Stock 180,808
Additional Paid-in-Capital 7,626,602
Retained Earnings 3,343,850
Sales 22,944,017
Franchise & Royalty Fees 5,492,531
Cost of Sales 14,910,622
Franchise Costs 1,499,477
Sales & Marketing Expenses 1,505,431
Gen. & Admin. Expenses 2,422,147
Retail Operating Expenses 1,756,956
Dep. & Amort. Expenses 698,580
Interest Income Expenses 27,210
Income Tax Expense 2,090,468
Totals: $43,803,595 $43,803,595
Adjusted Trial Balance
Rocky Mountain Chocolate Factory, Inc.
As of Februrary 28, 2010
Part I
Sales 22,944,017
Franchise and Royalty Fees 5,492,531
Income Summary 28,436,548
Income Summary 24,883,681
Cost of Sales 14,910,622
Franchise Costs 1,499,477
Sales and Marketing 1,505,431
Gen. and Admin. 2,422,147
Retail Operating 1,756,956
Dep. and Amort. 698,580
Income Tax Expense 2,090,468
Income Summary 3,552,867
Interest Income 27,210
Retained Earnings 3,580,077
Rocky Mountain Chocolate Factory, Inc.
Debits Credits Closing Entries
art J ASSETSLIABILITIES Cash and Cash Equivalents$3,743,092Accounts Payable$877,832 Accounts Receivable4,427,526Accrued Salaries and Wages646,156 Notes Receivable, Current91,059Other Accrued Expenses946,528 Inventories3,281,447Dividends Payable602,694 Deferred Income Tax461,249Deferred Income220,938 Other Current Assets220,163Total Current Liabilities3,294,148 Total Current Assets12,224,536 Deferred Income Taxes894,429 Total Liabilities4,188,577 Property and Equipment, Net5,186,709STOCKHOLDER'S EQUITY Notes Receivable, Less Current263,650Common Stock180,808 Goodwill, Net1,046,944Additional Paid-in-Capital7,626,602 Intangible Assets, Net110,025Retained Earnings6,923,927 Other Long Term Assets88,050Total Stockholders' Equity14,731,337 Total Assets$18,919,914Total Liabilities and Stockholders' Equity$18,919,914 Rocky Mountain Chocolate Factory, Inc. Balance Sheet As of Februrary 28, 2010
Part H
REVENUES
Sales $22,944,017
Franchise and Royaly Fees 5,492,531
Total Revenues 28,436,548
EXPENSES
Cost of Sales 14,910,622
Franchise Costs 1,499,477
Sales and Marketing Expense 1,505,431
Gen. and Admin. Expense 2,422,147
Retail Operating Expense 1,756,956
Dep. and Amort. Expense 698,580
Total Operating Income 5,643,335
Interest Income Expense 27,210
Income Before Tax 5,670,545
Income Tax Expense 2,090,468
Net Income $3,580,077
Rocky Mountain Chocolate Factory, Inc.
Income Statement
For the Year Ended Februrary 28, 2010
Beginning Retained Earnings $3,343,850
Net Income 3,580,077
Less: Dividends 0
Retained Earnings - February 28, 2010 $6,923,927 Rocky Mountain Chocolate Factory, Inc.
Statement of Retained Earnings For the Year Ended Februrary 28, 2010
Part K
Transaction
Number Cash Flow Classification
1 Operating
2 Operating
3 Operating
4 Operating
5 Operating
6 Operating
7 Operating
8 Operating
9 Investing
10 Financing
11 Various (all other transactions)
12 Operating
13 Operating
14 Operating
15 (no transaction)