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Learning Team Assignment Chapter 5, 24

Matthew Gourlie, Maria Ceja,

Jason Day, Erica Lewis, Wendy Archibald

University of Phoenix

Walfyette Powell

February 13, 2011

Chapter 5

P5–3 (Balance Sheet Adjustment and Preparation) The adjusted trial balance of Side Kicks Company and other related information for the year 2007 are presented on the next page.

| | | Side Kicks Company | | | |

| | | Adjusted Trial Balance | | | |

| | | 31-Dec-07 | | | |

____________________________________________________________

________ |

| | | | | Debit | Credit |

Cash | | | | | $ 41,000.00 | |

Accounts Receivable | | | $ 163,500.00 | |

Allowance for Doubtful Accounts | | | $ 8,700.00 |

Prepaid Insurance | | | | $ 5,900.00 | |

Inventory | | | | | $ 308,500.00 | |

Long-Term Investments | | | $ 339,000.00 | |

Land | | | | | $ 85,000.00 | |

Construction Work in Progress | | $ 124,000.00 | |

Patents | | | | | $ 36,000.00 | |

Equipment | | | | $ 400,000.00 | |

Accumulated Depreciation of Equipment | | | $ 140,000.00 |

Unamortized Discount on Bonds Payable | | $ 20,000.00 | |

Accounts Payable | | | | | $ 148,000.00 |

Accrued Expenses | | | | | $ 49,200.00 |

Notes Payable | | | | | $ 94,000.00 |

Bonds Payable | | | | | $ 400,000.00 |

Common stock | | | | | $ 500,000.00 |

Premium on common stock | | | | $ 45,000.00 |

Retained Earnings | | | | ___________ | $ 138,000.00 |

| | | | | $ 1,522,900.00 | $ 1,522,900.00 |

Additional information:

1. The LIFO method of inventory value is used.

2. The cost and fair value of the long-term investments that consist of stocks and bonds is the same.

3. The amount of the Construction Work in Progress account represents the costs expended to date on a building in the process...