The ABC Company manufactures and markets commercial grade fitness equipment. The senior management team is meeting for its second annual strategic planning session. While strategic plans usually encompass 3–5 years of the planning horizon, the CEO has asked that, for now, everyone concentrate only on years 1–3. At the conclusion of the session, staff members will begin working on their individual plans and budgets for the coming year. The accounting manager will end up compiling all the budgets for incorporation into the strategic plan book. ABC Background and Current Situation Company: · ABC develops, domestically manufacturers, markets, and sells commercial-grade, strength-training fitness equipment, like that found in a health club. · It has created a patented, revolutionary line of strength training equipment, which has clearly allowed the company to be positioned as the "innovative leader" in the market place, addressing the fitness trend of "core training." · The company is considering adding a line of cardiovascular (CV) training equipment including treadmills and exercise bikes. · Its entire staff is well respected in the industry. · Although its sales are exclusively in the United States it has, from time to time, considered expanding into international sales. International market growth has historically been at a rate 5–8% faster than domestic sales Products: · The industry breaks its product groups into cardiovascular and strength-training products. The profitability/piece overall is greatest on the strength-training equipment although the dollar value of total industry sales is 2:1 in favor of the CV equipment. However, from a COGS perspective CV COGS is equal to strength COGS + 15%. · While ABC has in fact developed a revolutionary line of strength equipment addressing core training, duplicating this innovation in the CV line has proven to be beyond the reach of any manufacturer in the industry in the last 10–15 years, primarily due to the very high cost of developing something truly revolutionary for a product line of relatively low-margin and high-warranty costs. Industry: · As the health and fitness craze continues in America and around the world, the overall market is expected to grow 5–8% a year. · The overseas, international fitness equipment market is growing 5–8% faster than the domestic growth rate. · There are currently seven bonafide manufacturers of this fitness equipment: the two largest offer "one stop shop" product offerings (CV and strength products) and garner the highest market share; the other five specialize only in either strength or CV only equipment. There is talk of one or more of the CV manufacturers merging with one or more of the strength manufacturers. · The customers—primarily health clubs and YMCAs—are always seeking innovative products to help market their club as different than the one down the street and attract more new members. · Most of the larger health clubs prefer to buy all fitness equipm ...

1. The ABC Company manufactures and markets commercial grade
fitness equipment. The senior management team is meeting for
its second annual strategic planning session. While strategic
plans usually encompass 3–5 years of the planning horizon, the
CEO has asked that, for now, everyone concentrate only on
years 1–3.
At the conclusion of the session, staff members will begin
working on their individual plans and budgets for the coming
year. The accounting manager will end up compiling all the
budgets for incorporation into the strategic plan book.
ABC Background and Current Situation
Company:
· ABC develops, domestically manufacturers, markets, and sells
commercial-grade, strength-training fitness equipment, like that
found in a health club.
· It has created a patented, revolutionary line of strength
training equipment, which has clearly allowed the company to
be positioned as the "innovative leader" in the market place,
addressing the fitness trend of "core training."
· The company is considering adding a line of cardiovascular
(CV) training equipment including treadmills and exercise
bikes.
· Its entire staff is well respected in the industry.
· Although its sales are exclusively in the United States it has,
from time to time, considered expanding into international
sales. International market growth has historically been at a rate
5–8% faster than domestic sales
Products:
· The industry breaks its product groups into cardiovascular and
strength-training products. The profitability/piece overall is
greatest on the strength-training equipment although the dollar
value of total industry sales is 2:1 in favor of the CV
equipment. However, from a COGS perspective CV COGS is
equal to strength COGS + 15%.

2. · While ABC has in fact developed a revolutionary line of
strength equipment addressing core training, duplicating this
innovation in the CV line has proven to be beyond the reach of
any manufacturer in the industry in the last 10–15 years,
primarily due to the very high cost of developing something
truly revolutionary for a product line of relatively low-margin
and high-warranty costs.
Industry:
· As the health and fitness craze continues in America and
around the world, the overall market is expected to grow 5–8%
a year.
· The overseas, international fitness equipment market is
growing 5–8% faster than the domestic growth rate.
· There are currently seven bonafide manufacturers of this
fitness equipment: the two largest offer "one stop shop" product
offerings (CV and strength products) and garner the highest
market share; the other five specialize only in either strength or
CV only equipment. There is talk of one or more of the CV
manufacturers merging with one or more of the strength
manufacturers.
· The customers—primarily health clubs and YMCAs—are
always seeking innovative products to help market their club as
different than the one down the street and attract more new
members.
· Most of the larger health clubs prefer to buy all fitness
equipment from one manufacturer: both strength training and
cardiovascular training products.
Current situation
While ABC fully expects its innovative products to continue to
sell well, it feels the addition of a CV line will only make the
company garner greater sales due to the "one stop shop"
preference of many of the larger customers. It is considering
whether to add a line of CV products, sourced from a well-
respected, domestic contract manufacturer.
At the same time, it is considering opening its market
internationally. It has already developed personal relationships

3. with several dealers in various countries. These dealers would
act as middlemen for the sale of these U.S. products and
generally face the same challenges as ABC's domestic sales
people, except for one significant issue: shipping timeliness.
Because this equipment weighs a considerable amount, air
freight is unrealistic. Ocean freight timing adds over a month to
lead times, which would put a U.S. firm at a lead time
disadvantage to internationally based competitors.
Therefore, if ABC chooses to begin an international sales and
marketing effort, it plans to license small manufacturing
companies in each country to manufacture the product,
effectively making the shipping lead time difference go away.
Unfortunately with the dealer and the contract manufacturer
markups there is a net difference in the COGS, amounting to a
25% cost premium for sales in the overseas markets (cogs on
international sales is 25% higher than on domestic sales).
The two major, independent, strategic decisions ABC is facing
as it creates its strategic plan are as follows:
1. Should they expand their product lines to include "generic"
CV products, which outsell strength products 2:1 in sales $
(albeit at a lower margin) Note: ABC is VERY concerned about
how customers of its revolutionary, innovatively designed
strength line will view the company as a whole if it begins to
also include generic treadmills and exercise bikes just like
everyone else. Will the company lose its valuable position in
the marketplace as the innovative leader?
2. Should the company expand into international sales knowing
COGS is higher
Income Statement
Last year's income statement results below will serve as the
starting point or base year for the next 3-year plan.
Income Statement ($000's)
Sales (domestic only, strength line only)
10,000
COGS at 65%
6500

4. Gross margin
3500
Less SG&A
Marketing
970
Sales
1210
New product development
465
Total SG&A
2645
Net income
855
Budget Impacts
The members of the senior staff have agreed on the following
expected departmental budget impacts regarding some of the
strategic decisions they may make:
Marketing: The expense budget consists of depreciation
expense, salary expense, advertising, trade show expense and
possible international marketing expense and/or CV marketing
expenses. If they choose to enter any of five viable international
markets, they expect to spend $120,000/market in each budget
year (net of inflation), spread out evenly through each year. If
they choose to launch the CV product line, they expect to spend
an additional $240,000 annually (net of inflation) on
advertising, whether they sell just domestically or
internationally as well; these added costs would also be spread
evenly through each year.
Selling: The expense budget consists of depreciation, fixed-
salary expense for the manager, depreciation, commission (10%
on domestic sales), and warranty costs (estimated at 1% of
strength sales and 15% of CV sales). If they choose to open
international markets, internationally based noncommissionable
dealers would be used, so no added selling expenses are
expected.

5. New product development: The expense budget consists of
salaries, patent fees, depreciation, and an expected one-time
charge (fees for design/tooling of this product line) of $1
million if they choose to enter the CV marketplace. These costs
would be a one-time, upfront fee, whenever they decide to
launch that line.
Overall inflation in SG&A expense budgets is expected to be
4% but due to competition cannot be passed on in terms of price
increase.
Management also recognizes that with COGS at a
noncompetitive 65% of sales, there is a great need for
improvement.
The expected inflation rate of 4% is assumed on all expenses
except for depreciation and COGS.
Research Notebook

6. Samuel Soto
English 221
Tatum
June 3, 2018
Research Diary
Over the years’]-use a comma here instead of an apostrophe
people have struggled to make losing weight
as well as build up muscles through the use of Fad diets as well
as high protein diets. Fad diets are used that people
use in order to lose dramatic loose weights without exercises.]-
be careful not to rely on spell check; reading this

7. out loud will help catch those types of mistakes I am going to
discuss the Fad diets, prescription drugs, diseases,
and disabilities as well as alternative remedies for control of
body weight. ]-it’s best to avoid “announcing” the
thesis and instead just make a claim and that will speak for
itself; you will then stay clear and concise since
it’s implied you will discuss it without having to state it
There are several types of fad diets that people mostly use
including Atkins diet, South Beach diet. The
Atkins diet is the most famous low carb weight loss diet. In
this diet you]- avoid using second person “you” or
“your” in academic writing; see below for more guidance on
this topic are to take out most of your carbs and
only intake 20 carbs per day for the first few days. Then you
are to only add in 5-grams which puts you in a
“critical c. arbohydrate levels” for losing weight and
maintaining the loss. This has been very affective for many
people and is the most popular fad diet. Consider a new
paragraph here since the focus shifts The second fad diet
that I researched is the South beach diet, this diet is very
similar to the Atkins diet you can eat high protein diet and
low on carbs. According to health line it has been scientifically
proven that a high protein diet is very effective in

8. weight loss, high protein diets that aim at losing fat and
building muscles. They include meat and eggs. If one takes
much than what is required per day they are likely to gain more
weight and even get more obese. The next is liquid
diets that out beneficial substances in the body and entail
phytochemicals and plant vegetables (Park, 2009). These
chemicals are likely to cause a condition in depletion of the
body immune system. Lastly, Broth fasts that include
taking of juices in order to lose weight, however, these juices
do not promote long-term weight loss as the return to
the normal diet may result in weight gain.
Fad diets cut off major diets in the human body, therefore,
cause problems such as dehydration, weakness,
and fatigue, nausea and headache, constipation as well as
reduced vitamin and mineral intake. Intake of high protein
diets requires one to take a given amount of the food in a day
and higher intake may cause problems such as kidney
and liver failure as they cause strain on the two organs (Park,
2009). Diets that are protein based]-hyphenate multi-
word descriptions lack specific calories, and will add fat to the
patient. Moreover, a person using fad diets misses
on the protective health effects a normal balanced diet plan
provides. Fads also only work on temporally temporary

9. weight loss, therefore, one may experience high weight gain
after they stop using the diets. High protein diets
increase cholesterol in the body and consecutively affect the
blood pressure levels. Diets that affect the intake of the
feed in the body affects the level of blood sugar in the body and
as result cause diabetes. High intake of the high
protein diets also causes heart diseases and other chronic
conditions.
Alternative remedies that can be used are hydroxycut is derived
from caffeine and few plant extracts that
help in weight loss. It is offered as a supplement to the patient.
Orlistat is a pharmaceutical drug sold over the
counter and prescribed as Xenical (Park, 2009). Raspberry
ketone is derived from raspberries increases fat break
down through hormone adiponectin. Substitution is the
healthiest way of weight loss, in an instance, one can replace
nut butter with almonds, they have mild fat and protein reducing
incidences of obesity. Chicken breast can also be
used to substitute lean turkey this is since it has low in protein,
therefore, reducing the level of calories in the body
(Zahra, 2014). Blueberries are also used in the place of apples
as they promote cardiovascular health especially in
cases of obese people (Zahra, 2014). Regular exercising is also
another method of losing weight as well as muscle

10. build up, however, must be accompanied by a balanced diet.
After my research, I have learned that there isare many fad
diets and some can be helpful but over all a high
protein diet and a low carb is the most beneficial diet that a
person can be on. I also learned that besides diets you
can also use alternative natural remedies that can be very
beneficial. Note that paragraphs are normally 5-7
sentences, but at least 3 sentences long. Include a topic
sentence, supporting sentence, and wrap-up/transition
sentence for body paragraphs, and a thesis statement for
introductory paragraphs.
References
Park, K. (2009). Nutrition and health. Textbook of Preventive
and Social Medicine. 20th ed. Jabalpur: Banarsidas
Bhanot, 562-4.
Zahra, B. (2014). 10 Alternatives for Healthy Weight-Loss
Foods You Hate. Womens Health.
https://www.healthline.com/nutrition/8-fad-diets-that-
work#section3
https://www.prevention.com/food-nutrition/a20513051/4-types-
of-people-who-should-be-on-a-high-protein-diet/

11. https://www.cbsnews.com/news/best-diet-plans-for-2018-
mediterranean-dash-diets/
These citations are incomplete, so be sure to familiarize
yourself with CSE citing and the examples provided in the
lessons
with other links for reference. Also note these are open web
sources. Using the library for research materials is required,
so keep that in mind and don’t hesitate to reach out to the
librarians with questions on navigating the databases
z
ENGL22
1
Assignmen
t
Rubric
EXEMPLAR
Y LEVEL
ACCOMPLISHE
D LEVEL

12. DEVELOPIN
G LEVEL
BEGINNIN
G LEVEL
Points
Earned
Purpose and
Audience
(20 Points)
18-20: The
writing
engages the
reader with an
original
approach to
the subject. It
may

13. encompass
conflicting
ideas and
inspires the
reader to
contemplate
the
relationship of
complex ideas.
16-17: The
writing clearly
goes beyond
the minimum
requirements
of the
assignment. It
attempts to
engage the

14. reader through
originality and
presentation of
complex ideas.
14-15: The
writing meets
the minimum
requirements of
the assignment.
It offers
insight into
the subject
through basic
logic and the
presentation
of
ideas based
on some
evidence.
13 or below:
The writing

15. fails to meet
the minimum
requirements
of the
assignment. It
offers little
insight into
the subject
and has
serious flaws
in logic and
omissions in
evidence.
18/
20
https://www.healthline.com/nutrition/8-fad-diets-that-
work#section3
https://www.prevention.com/food-nutrition/a20513051/4-types-
of-people-who-should-be-on-a-high-protein-diet/
https://www.cbsnews.com/news/best-diet-plans-for-2018-
mediterranean-dash-diets/

16. Thesis and
Support
(20 Points)
18-20: The
writing has
a
clearly
articulated
original thesis
and
subordinate
ideas supported
by reliable and
relevant
evidence
based on
original
research. Main
ideas are not
lost
in
surrounding
supporting
evidence.

17. 16-17: The
writing has
a
clearly
articulated
thesis
supported by
appropriate
evidence and
sound logic.
Minor gaps
in
logic and
argument
may appear.
Main
ideas can be
distinguished
from
supporting
evidence with
some effort.
14-15: The
writing has
a
clear thesis and

18. related
subordinate
ideas
supported by
clear thinking
and appropriate
evidence.
Logical
arguments may
be one-sided or
incomplete.
13 or below:
The writing
may
need a more
clearly
articulated
thesis and/or
appropriate
related
subordinat
e
ideas. Fuzzy
logic may be
evident and

19. adequate
supportin
g
evidence
is lacking.
18/
20
Organization
(20 Points)
18-20: The
writing
flows
smoothly and
logically from
a well-defined
thesis. It
contains all
required
sections as
stated
in the
instructions.
The essay
follows the
organizational

20. method noted
in the
assignment
details.
16-17:
The
writing is
organized
logically and
flows well.
One
section or
requirement
may be missing
or
underdeveloped
. The essay
follows the
organizational
method noted
in the
assignment
details.
14-15:
The
writing
demonstrates

21. rudimentary
organization
and
logical
structure, but
ideas may be
more fully
developed and
supported by
more
appropriate
evidence. Two
sections or
requirements
may be
missing
or
underdevelope
d.
The essay does
13 or
below: The
writing is
noticeably
lacking
in
organization.

22. Multiple
sections
or
requirements
are missing or
underdevelope
d.
Supporting
evidence is
clearly
lacking. The
essay does
not follow the
organizational
method noted
in
the
assignment
details.
18/
20
not clearly
follow the
organizational
method noted
in the

23. assignment
details.
Style
(10 Points)
10: The
writing
engages the
reader through
an original
prose style
appropriate
to the
subject.
Language is
precise.
Sentences
are
varied but
not
noticeably
so. Active
voice is
apparent.
All quoted

24. or
paraphrase
d material
is
properly
documented
and cited in
CSE
style.
Quotations are
integrated
smoothly into
the discussion.
8-9: The
writing keeps
the
reader’s
attention
through a
carefully
crafted
prose style.
Language
chosen
is appropriate
to the subject,
but
may call

25. attention to
itself in minor
ways.
Most quoted
and
paraphrased
material is
properly
documented
and cited in
CSE style.
Quotations
are
integrated
into the
discussion.
6-7: The
writing is clear
but could
be expressed in
a
style more
appropriate
to
the subject. It
is jargon-free
but

26. may require
a more
complete
explanation
of some
terms used.
Sources
are
documented
and cited but
need to show
greater
consistency in
use of CSE
style.
Quotations are
dropped into
the discussion.
5 or below:
The writing
lacks
clarity and is
sometimes
confusing.
The
language
chosen is not
appropriate

27. to the subject
nor the
assignment.
Sources are
overly quoted
or paraphrased
and
not adequately
documented
nor cited in
CSE style.
Quotations
appear out of
place and/or
are dropped
into the
discussion.
8/1
0
Research
(10 Points)
10: The
essay utilizes
strong
and academic

28. research
(mainly peer-
reviewed
articles), and
these sources
strengthen
the
essay’s claim.
The essay
meets or
exceeds the
required
number of
sources, as
stated in the
assignment
details.
8-9: The essay
utilizes
academic
research
(mainly peer-
reviewed

29. articles), and
these sources
strengthen the
essay’s claim.
The essay
meets the
required
number of
sources, as
stated in the
assignment
details.
6-7: There is
research
within
the essay, but
most of the
sources are
not peer-
reviewed.
These sources
do not serve to

30. strengthen the
essay’s claim.
Instead, the
research
serves as filler.
The essay does
not meet the
required
number of
sources, as
stated in the
assignment
details.
5 or below:
The research is
lacking in the
essay and/or
is missing
altogether.
The
essay does

31. not meet the
required number
of sources
as stated in
the
assignment
details.
6/1
0
Grammar and
Mechanics
(10 Points)
10: The writing
is free of
proofreading
errors. The
writing
contains
sentences that

32. are always
complete
and
grammaticall
y
correct and
free of
confusion and
ambiguity.
8-9: The
writing may
exhibit a few
minor errors in
proofreading,
but they do not
impair the flow
of the reading.
The writing
contains
sentences that
are complete
or which imply
unstated
connections
and/or

33. conclusion
s.
6-7: The
writing could
benefit from
additional
proofreading,
as some errors
impede the
flow of the
reading. The
writing
contains some
grammatical
errors easily
corrected.
Additional
proofreading
would help

34. eliminate
errors.
5 or below:
The writing
exhibits
substantial
errors in
proofreading.
The writing is
confusing and
ambiguous due
to substantial
errors of
grammar and
syntax. There is
no evidence of
proofreading,
editing, or

35. rewriting.
6/1
0
Formatting
(10 Points)
10: Student
provides a
high-
caliber,
formatted
assignment in
proper CSE
style.
8-9:
Assignment
presents an
above-average
use of
formatting
skills with few
errors in CSE
style.
6-7:
Appearance of

36. final
assignment
demonstrates
the student's
limited ability to
use CSE
style formatting.
5 or below:
Appearance of
the final
assignment is
distracting.
The number of
CSE style
formatting
errors
impedes easy
reading.
6/1
0
Total: 80
Good start with strong effort, Sam. Your writing follows the
main concepts covered such as
one main idea per paragraph, clear and focused wording overall,

37. and solid sources utilized for
research support. There are some grammar errors that could be
corrected, and the wording
can be made more concise. The sources are adequate, but I
recommend contacting the
librarians for help with gathering the materials. Remember to
use CSE for formatting. Please
review the comments in the text and let me know if you have
any questions or concerns.
A lot of students do not understand what it means to “avoid
second person” or “stay in third
person.” In academic writing, first person is “ok” in some
assignments depending on context,
second person should never be used, and third person is best.
Research Notebook 4
FIRST PERSON is "I." Some professors discourage it because
academic writing should focus on
the subject- not you. “I think that…” or “I feel that…” are
weak, wordy and not very concise.
“I” should only be used if writing a narrative assignment or
opinion piece.
SECOND PERSON is "you." Using second person--or speaking
directly to the reader (either
calling the reader "you" or addressing the reader as if you are
having a one-sided
conversation)--is too casual and conversational for college-level
writing. This is why English
professors don't allow it.

38. Whenever you have a sentence construction with second person
(and the easiest way to
check is to do a word search for the words you and your after
you've written a paper), you
should revise by using third person instead.
THIRD PERSON is a specific noun or nouns or the pronouns
"he, she, it" in the singular or
"They" in the plural. There are several examples below to show
you the difference between
second and third person. Generally speaking, second person
isn't just too casual. It's also
sometimes an incorrect shift in voice or a vague word choice.
See below. The italicized
answers use second person. See how the other answers are more
specific or accurate.
Which question below shows a grammatically incorrect shift
from first person ("I") to second
person ("you")?
a. "After reading the essay assigned for this week, I
immediately agreed with the author
was saying. You could tell from the beginning that he was
talking about slacker
students who try to bargain for good grades even when they
haven't done the work."
b. "After reading the essay assigned for this week, I
immediately agreed with the
author was saying. I could tell from the beginning that he was
talking about slacker
students who try to bargain for good grades even when they
haven't done the work."

39. Which sentence uses the second person?
a. Life is like a box of chocolates. People never know what
they're going to get.
b. Life is like a box of chocolates. You never know what you're
going to get.
Which of the following sentences uses the second person?
a) Although I know I shouldn't cheat on my diet, sometimes you
just have to!
b) Although I know I shouldn't cheat on my diet, sometimes I
just have to!
If you have any further questions about second person, please
let me know.
Research Notebook 4

40. Project Instructions
Comprehensive Problem
Complete the following:
• Journal entries
• Posting to T-accounts
• Trial balance
• Adjusting entries
• Adjusting trial balance
• Income statement
• Statement of retained earnings
• Balance sheet and closing entries
April Transactions s During its
first month of operation, the Rawls Repair Corporation, which
specializes in bicycle repairs, completed the following
transactions:
Chart of AccountsChart of accounts description for posting to
journal entries.Chart of AccountsAccount TypeAccount
NumberAccount TitleAssets101Cash 105Accounts
Receivable107Prepaid Insurance 109Supplies145Equipment
146Accum Dep - Equipment Liabilities202Accounts Payable
203Income Tax Payable204Salary PayableStockholders'
Equity301Common Stock 302Retained Earnings 303Dividends
Revenue401RevenueExpenses501Rent Expense 502Utility
Expense 503Insurance Expense 504Supplies Expense 505Dep
Expense - Equipment 506Income Tax Expense 507Salary
Expense
Journal Entries Prepare journal entries to record the April
transactions in the General Journal below. General
JournalGeneral JournalDateDescription (Account
Name)DebitCredit1-
Aprcapital$150,000cash$100,000equipment$50,0002-

41. Aprcash$1,200prepaid insurane$1,2003-Aprrent
expense$1,200cash$1,2005-Aprcash$8,000revenue$8,00010-
Apraccount receivable$15,000revenue$15,00011-Aprequipment
$5,000supplies$3,000account payable$8,00015-Aprsalary
expense$1,500cash$1,50024-Aprcash$300utility
expense$30028-
Aprdividends$2,000cash$2,000$187,200$187,200374,400374,40
0
Journal Entries
General Ledger Post the April journal entries to the following
T-Accounts, and compute ending balances.cash (101)
DeVry: The balance of the Cash account after posting journal
entries for Part A should be $10,718.capitalcapital
$100,000prepaid insurance $1,200bal c/d
$150,000equipment $50,000service revenue $8,000rent
expense $1,200Cash $100,000salary expense
$1,500150,000150,000utility expense $300balance
$150,000dividends $2,000balance $
101,800equipment (145)prepaid Insurance (107)Retained
Earnings $50,000cash $1,200bal c/d
$1,200account payable $5,000balance $1,200balance
$55,000rent expense( 501)service revenue (401)cash
$1,200cash $8,000account receivable
$15,000balance $1,200balance
$23,000supplies(109)salary expense(507)accounts payable
$3,000cash $1,500balance $3,000balance
$1,500utility expense(502)dividends(303)cash
$300cash $2,000balance $300balance
$2,000account payable(202)account receivable(105)equipment
$5,000revenue $15,000supplies $3000balance
$8,000balanc $15,000Accum Dep - Equipment(146)Income
Tax Payable(203)00Common Stock (301)Insurance
Expense(503)00Supplies Expense (504)Dep Expense -
Equipment(505)00Income Tax Expense (506)Salary

42. Payable(204)00
Trial Balance Prepare a trial balance for April. Adjusting
EntriesDateDescription (Account Name)DebitCredit30-
Aprcash$101,80030-Aprcapital$150,00030-
Aprequipment$55,00030-Aprprepaid insurancre $1,20030-
Aprrent expense $1,20030-Aprservice revenue $23,00030-
Aprsupplies$3,00030-Aprsalary expense$1,50030-Aprutility
expense$30030-Aprdividends$2,00030-Apraccount
payable$8,00030-Apraccount
receivable$15,000$181,000$181,000
Journal Entries
Adjusting EntriesPrepare the following adjusting journal entries
for April 30: • Insurance expired for the month of April. •
An ending count of supplies totaled $2,600. • Wages of
$3,000 were earned but not paid. • Services in the amount of
$5,000 were earned but not billed. • Depreciaiton on the
equipment is $500 per month.Adjusting EntriesDateDescription
(Account Name)Debit($)Credit($)30-Aprprepaid insurance
1,100insurance expense1,10030-Aprsupplies expense
400supplies 40030-Aprsalaries expense3,000 salaries
payable3,00030-Apraccounts receivable5,000acrrued
revenue5,00030-Aprdepreciation expense500accumulated
depreciation50010,00010,000
Journal Entries
Adjusted TB Prepare an Adjusted
Trial Balance.
Adjusted Trial Balance
DateDescription (Account Name)DebitCredit30-
Aprcash$101,80030-Aprcapital$150,00030-
Aprequipment$55,00030-Aprinsurance expense$10030-Aprrent
expense $1,20030-Aprservice revenue $23,00030-
Aprsupplies$2,600$40030-Aprsalary expense$1,50030-
Aprutility expense$30030-Aprdividends$2,00030-Apraccount
payable$8,00030-Apraccount receivable$20,00030-Aprprepaid

43. insurance 1,10010030-Aprsupplies expense40030-Aprsalaries
payable3,00030-Aprsupplies40030-Apraccumulated
depreciation50030-Aprdepreciation expense500insurance
expense1,100186,500186,500
Journal Entries
Income Statement Prepare the Income Statement in the proper
format for April 30. Rawls Repair CorporationIncome
StatementFor the Month of AprilRevenues:service
revenue23,00023,00023,000expenses:salaries$ 1,500utility$
300rent$ 1,200depreciation$ 500supplies$ 2,600insurance
expense$ 1006,200total expensesnet icome16,800
Retained EarningsPrepare the Retained Earning statement in the
proper format for April 30. Statement of Retained
EarningsRetained Earnings, 0Add: Net
Income16,800Subtotal16,800Less: Dividends(2,000)Retained
Earnings14,800
Balance Sheet Prepare the Balance Sheet in the proper format
for April 30. Balance SheetAssets:cash102,100prepaid
insurance1,100supplies2,600equipment55,000accounts
receivable15,000Total Assets175,800Liabilities and
Stockholders' EquityLiabilities:accounts payable8,000accrued
salaries3,000Total Liabilities11,000Stockholders'
Equity:retained earnings14,800capital150,000Total
Stockholders' Equity164,800Total Liabilities and Stockholders'
Equity175,800
Closing EntriesPrepare the closing entries at April 30.
Post the closing entries to the T-Accounts on the General
Ledger worksheet, and compute ending balances.
DateDescription (Account Name)DebitCredit30-
Aprrevenue23,000income summaryservice revenue23,00030-
Aprincome summary6,200rent expense1,200utility
expense300insurance expense100supplies2,600depreciation
expense500salaries expens1,50030-Aprincome
summary14,800retained earning14,80030-Aprretained
earning2,000dividend2,00046,00046,000

44. Journal Entries
Postclosing Trial BalancePrepare a postclosing trial balance as
of April 30 in the space below.DateDescription (Account
Name)DebitCredit1-
Maycash101,800equipment54,500supplies2,600accounts
payable8,000accumulated depreciation500prepaid
insurance1,100retained
eanings14,800dividends2,000capital150,000account
receivable15,000utility300175,300175,300
Journal Entries
Jim opened Jim’s Auto Body. Complete the following
transactions:
A. 4/1: Jim invested $100,000 in cash and $50,000 in equipment
in the company.
B. 4/2: The company prepaid for insurance with $1,200 cash.
C. 4/3: The company paid cash for rent totaling $1,200.
D. 4/5: The company completed services for a client for cash
totaling $8,000.
E. 4/10: The company provided a service for $15,000 on
account.
F. 4/11: The company purchased equipment for $5,000 and
supplies for $3,000 on account.
G. 4/15: The company paid $1,500 cash for employee salaries.
H. 4/24: The company paid $300 cash for utility bills.
I. 4/28: The company paid dividends totaling $2,000 cash.
Jim opened Jim’s Auto Body. Complete the following
transactions:
A. 4/1: Jim invested $100,000 in cash and $50,000 in equipment
in the company.
B. 4/2: The company prepaid for insurance with $1,200 cash.
C. 4/3: The company paid cash for rent totaling $1,200.
D. 4/5: The company completed services for a client for cash
totaling $8,000.
E. 4/10: The company provided a service for $15,000 on

45. account.
F. 4/11: The company purchased equipment for $5,000 and
supplies for $3,000 on account.
G. 4/15: The company paid $1,500 ca sh for employee salaries.
H. 4/24: The company paid $300 cash for utility bills.
I. 4/28: The company paid dividends totaling $2,000 cash.
Horizontal AnalysisJim's Auto BodyJim's Auto Body
Jim's Auto Body Jim's Auto
BodyIncome StatementIncome StatementBalance SheetBalance
SheetAs of April 30, 2014As of April 30, 2015As of April 30,
2014As of April 30,
2015Assets:Assets:Revenues:Revenues:Cash101,800Cash145,00
0Service Revenue28,000Service Revenue32,000Acct
Rec'able20,000Acct Rec'able34,000Total Revenue28,000Total
Revenue32,000PP In1,100PP
In1,100Equipment55,000Equipment62,000Expenses:Expenses:A
ccu. Dep.500Accu. Dep.750Salary Expense4,500Salary
Expense5,200Supplies2,600Supplies2,300Rent
Expense1,200Rent Expense1,300Total Assets180,000Total
Assets243,650Utility Expense300Utility
Expense420Depreciation Expense500Depreciation
Expense500Liabilities and Stockholders' EquityLiabilities and
Stockholders' EquityInsurance Expense100Insurance
Expense125Liabilities:Liabilities:Supply Expense400Supply
Expense325Accounts Payable8,000Accounts
Payable22,000Total Expenses7,000Total Expenses7,870Salary
Payable3,000Salary Payable4,500Total Liabilities11000.00Total
Liabilities26500.0021,00024,130Stockholders'
Equity:Stockholders' Equity:Common Stock150,000Common
Stock198,150Retained Earnings19000Retained
Earnings19000Total Stockholders' Equity169000.00Total
Stockholders' Equity217150.00Total Liabilities & Stockholders'
Equity180,000Total Liabilities & Stockholders'
Equity243,650HORIZONTAL ANALYSISHORIZONTAL
ANALYSISJim's Auto Body Jim's

46. Auto BodyIncome StatementBalance Sheet20142015Change%
change20142015Change% changeRevenues:Assets:Service
Revenue28,00032,0004,00014.29%Cash101,800145,00043,2004
2.44%Total Revenue28,00032,0004,00014.29%Acct
Rec'able20,00034,00014,00070.00%PP In1,1001,100-
00.00%Expenses:Equipment55,00062,0007,00012.73%Salary
Expense4,5005,20070015.56%Accu.
Dep.(500)(750)(250)50.00%Rent
Expense1,2001,3001008.33%Supplies2,6002,300(300)-
11.54%Utility Expense30042012040.00%Total
Assets180,000243,65063,65035.36%Depreciation
Expense50050000.00%Insurance
Expense1001252525.00%Liabilities and Stockholders'
EquitySupply Expense400325-75-18.75%Liabilities:Total
Expenses7,0007,87087012.43%Accounts
Payable8,00022,00014,000175.00%Salary
Payable3,0004,5001,50050.00%21,00024,1303,13014.90%Total
Liabilities11000.0026500.0015,500140.91%Stockholders'
Equity:Common Stock150,000198,15048,15032.10%Retained
Earnings1900019000- 00.00%Total Stockholders'
Equity169000.00217150.0048,15028.49%Total Liabilities &
Stockholders' Equity180,000243,65063,65035.36%
Vertical AnalysisJim's Auto BodyAngel's Auto Body
Jim's Auto Body Angel's Auto
BodyIncome StatementIncome StatementBalance SheetBalance
SheetAs of April 30, 2014As of April 30, 2014As of April 30,
2014As of April 30,
2014Assets:Assets:Revenues:Revenues:Cash101,800Cash332,00
0Service Revenue28,000Service Revenue189,000Acct
Rec'able20,000Acct Rec'able67,000Total Revenue28,000Total
Revenue189,000PP In1,100PP
In1,100Equipment55,000Equipment122,000Expenses:Expenses:
Accu. Dep.500Accu. Dep.3,300Salary Expense4,500Salary
Expense40,000Supplies2,600Supplies12,000Rent
Expense1,200Rent Expense8,000Total Assets180,000Total
Assets530,800Utility Expense300Utility

47. Expense2,400Depreciation Expense500Depreciation
Expense2,855Liabilities and Stockholders' EquityLiabilities and
Stockholders' EquityInsurance Expense100Insurance
Expense2,000Liabilities:Liabilities:Supply Expense400Supply
Expense4,300Accounts Payable8,000Accounts
Payable192,000Total Expenses7,000Total
Expenses59,555Salary Payable3,000Salary Payable10,000Total
Liabilities11000.00Total
Liabilities202000.0021,000129,445Stockholders'
Equity:Stockholders' Equity:Common Stock150,000Common
Stock203,800Retained Earnings19000Retained
Earnings125000Total Stockholders' Equity169000.00Total
Stockholders' Equity328800.00Total Liabilities & Stockholders'
Equity180,000Total Liabilities & Stockholders'
Equity530,800For the Month Ended 4/30/2014Jim's Auto
BodyAngel's Auto Body Jim's
Auto Body Angel's Auto
BodyIncome StatementIncome StatementBalance SheetBalance
SheetAs of April 30, 2014As of April 30, 2014As of April 30,
2014As of April 30,
2014Assets:Assets:Revenues:Revenues:Cash101,80056.56%Cas
h332,00062.55%Service Revenue28,000100.00%Service
Revenue189,000100.00%Acct Rec'able20,00011.11%Acct
Rec'able67,00012.62%Total Revenue28,000100.00%Total
Revenue189,000100.00%PP In1,1000.61%PP
In1,1000.21%Equipment55,00030.56%Equipment122,00022.98
%Expenses:Expenses:Accu. Dep.5000.28%Accu. Dep.(3,300)-
0.62%Salary Expense4,50016.07%Salary
Expense40,00021.16%Supplies2,6001.44%Supplies12,0002.26%
Rent Expense1,2004.29%Rent Expense8,0004.23%Total
Assets180,000100.00%Total Assets530,800100.00%Utility
Expense3001.07%Utility Expense2,4001.27%Depreciation
Expense5001.79%Depreciation Expense2,8551.51%Liabilities
and Stockholders' EquityLiabilities and Stockholders'
EquityInsurance Expense1000.36%Insurance
Expense2,0001.06%Liabilities:Liabilities:Supply

48. Expense4001.43%Supply Expense4,3002.28%Accounts
Payable8,0004.44%Accounts Payable192,00036.17%Total
Expenses7,00025.00%Total Expenses59,55531.51%Salary
Payable3,0001.67%Salary Payable10,0001.88%Total
Liabilities11000.006.11%Total
Liabilities202000.0038.06%21,00075.00%129,44568.49%Stock
holders' Equity:Stockholders' Equity:Common
Stock150,00083.33%Common Stock203,80038.39%Retained
Earnings1900010.56%Retained Earnings12500023.55%Total
Stockholders' Equity169000.0093.89%Total Stockholders'
Equity328800.0061.94%Total Liabilities & Stockholders'
Equity180,000100.00%Total Liabilities & Stockholders'
Equity530,800100.00%