1. Record the accounts listed on the trial balance (page 6 of the
instructions) on the general ledger sheets provided (pages WP-3 through
WP-10). [Note: Cash, Accounts Receivable, and Prepaid Rent have already
been done for you.] The balances of all of the accounts should be dated as
of December 31, 20XX. (Make sure that you also write-in the account
number for each of these general ledger accountsAc€??found on the chart of
accounts, page 4 of these instructions).

2. Prepare the worksheet (WP-2) for year-end procedures
Suggested steps are as follows:
a. Complete the chart of accounts that is provided for A. Duck
Ponds, Inc. (page 4 of these instructions), i.e., state whether each account is
an asset, liability, shareholdersAc€?c equity, revenue, or expense account.
b. Transfer the account names from the chart of accounts, (page 4
of these instructions) to the worksheet that is provided (WP-2). Make sure
that you list all of these accounts on the worksheet (even if they donAc€?ct
currently have balances) and make sure that you list them in the order that
they are listed on the chart of accounts.
c. Transfer the balances that you have from your general ledger
(completed in step #1) to the worksheet started in step 2.a. [Check figures
are debit/credit = $428,940]

3. Prepare the required journal entries for the month-end based upon the
information provided on page 5 of these instructions (a. Ac€?o j.).
Suggested steps are as follows:
a. Based on the information provided in a. on page 5 (of these
instructions), determine the required journal entry. Write up this journal
entry on the General Journal sheets provided (WP-11 to WP-14). Make
sure to properly date and label your journal entry (i.e., 1, 2, 3, etc). Start
with the account to be debited first, then the account to be credited is written
in next. Provide a description for each of your journal entries.
b. Post this journal entry from the General Journal to the proper
accounts on your worksheet (WP-2). Indicate that you have posted the
journal entry by making a Ac€?osquiggly lineAc€?c in the POST. REF. Column of the
General Journal. (Remember, put this Ac€?osquigglyAc€?c line on the far right side of
this column because later we will need to enter the account number in this
column when we post this journal entry to the general ledger. DonAc€?ct do this
yet, we have to complete the worksheet first!)
c. Now go back to page 5 (of these instructions), and perform the
same steps from above (3.a. & 3.b.) for the information provided in b.
through j.
d. After you have completed all of the required adjusting journal
entries, make sure that your worksheet balances. To do this, add up all of
the debits and all of the credits that you have made in the Ac€A?ADJUSTMENTSAc€?c
column of the worksheet. Your debits should equal your credits. [Check
number = $28,462]

4. If your worksheet balances, it is now time to calculate the adjusted
trail balance amounts on the worksheet. Once you have completed this step
you need to once again make sure that your worksheet balances. Add up the
debits and credits in the Ac€A?ADJUSTED TRIAL BALANCEAc€?c column of the
worksheets. Your debits should equal your credits. [Check number =
$438,797 for debits and credits, Cash = $19,300; Accum Depr-Building =
$29,580; Premium on bonds payable = $5,700; Revenue = $144,525]

5. Complete the Ac€A?INCOME STATEMENTAc€?? and Ac€A?BALANCE SHEETAc€?? columns
of the worksheet. The debits and credits will not be equal, the difference for
both of these sections should = $47,428 (Net Income for the period).

6. With the aid of your worksheet, prepare formal financial statements for
A. Duck Ponds, Inc., for the year ended December 31, 20XX. (Use your text
book if necessary to prepare these statements: Income Statement,
Statement of ShareholdersAc€?c Equity, and a classified Balance Sheet. Sample
financial statements can also be found at the end of the excel file called
Ac€A?Layout of worksheetsAc€??)
[check figures, net income = $47,428, Total Assets = $287,593,
Retained Earnings 12/31/20XX = $97,098.]

7. Post the adjusting journal entries from your general journal (WP-11
through WP-14) to the proper General Ledger accounts (WP-3 through WP-
10). When you have completed posting an amount from the General Journal
to the General Ledger, enter the account number that you posted this AJE to
in the POST. REF. Column of the General Journal.

8. Use General Journal sheet WP-11 through WP-14 to prepare closing
entries. Post these closing entries to the General Ledger. (After this step is
completed, all of your revenue accounts, expense accounts, and the dividend
account should have a balance of Ac€?o0-.)

PG. 4

Chart of Accounts- A. Duck Ponds, Inc.
Account
Number
Account Title Account Type
101 Cash Asset
115 Accounts Receivable
115.1 Allowance for Doubtful Accounts
117 Prepaid Rent
120 Supplies
130 Investment
130.1 Fair-Value Adjustment Ac€?o Trading Securities
140 Furniture
140.1 Accumulated Depreciation-Furniture
150 Equipment
150.1 Accumulated Depreciation Ac€?o Equipment
160 Building
160.1 Accumulated Depreciation-Building
201 Accounts Payable
210 Salaries Payable
215 Unearned Revenue, Customer Deposits
220 Interest Payable
250 Bonds Payable
250.1 Premium on Bonds Payable
307 Common Stock
318 Retained Earnings
319 Dividends
330 Income Summary
401 Revenue
501 Salary Expense
505 Rent Expense
515 Utilities Expense
520 Depreciation Expense-furniture
525 Depreciation Expense-equipment
526 Depreciation Expense-building
530 Advertising Expense
535 Supplies Expense
540 Bad Dept Expense
605 Interest Expense
630 Unrealized Gain (Loss) - Investments

PG. 5

COMPLETING THE ACCOUNTING CYCLE
The trial balance of A. Duck Ponds, Inc., at December 31, 20XX, and the data
needed for the year-end adjustments follow. (Round all results to the
nearest whole dollar amount.)
a. The dollar value of supplies on hand at year end = $4,950, this was
determined after taking a physical inventory.
b. Prepaid rent still in force at December 31, $1,200.
c. Depreciation on furniture for the year, $420.
d. Depreciation on building for the year, $980.
e. Depreciation on equipment for the year, $2,350.
f. At the end of the year, A. Duck Ponds, Inc. owed Hipster Hippo
$360 and $420 to other employees of the company for work
performed during the year just ended.
g. Unearned revenue, customer deposits still unearned at December
31, $4,025.
h. A. Duck Ponds, Inc. uses the allowance method to determine their
bad debt expense. The allowance for bad debts is based upon the
balance in accounts receivable. Based upon past experience A.
Duck Ponds, Inc. uses the rate of 0.75% (.0075) of accounts
receivable to determine the appropriate balance in the Allowance
for Doubtful accounts. Round the balance in this allowance account
(your calculated year end balance) to the nearest whole dollar.
i. Bonds payable info: The principal amount (a.k.a. face value, par
value, stated value) of these bonds = $150,000. These bonds have
a 10 year term. The stated rate (a.k.a. contract rate, nominal rate,
contract rate) of interest on these bonds = 5%. Theses bonds are
dated July 1, 20XX (current year) and were sold on July 1, 20XX
(current year) for the sum of $156,000.
Interest on these bonds is to be paid semi-annually on January 1
and July 1 of each year. An entry needs to be made for December
31Ac€?cs accrued interest due and for the appropriate amount relating
to the amortization of the premium (use straight-line amortization
for this premium). A check will be written and issued for the
appropriate amount of interest due on January 1. (Check out your
textbook pages 560 Ac€?o 2)
j. The investments that A. Duck Ponds currently has in their
investment account (current asset) represents investments that
were purchased recently. Based upon stock market quotes
obtained for December 31, the market value of these investments
= $112,000. (Consider these to be trading securities Ac€?o pg 601 of
your textbook)

PG. 6

A. Duck Ponds, Inc.
Trial Balance
December 31, 20XX
Account Title Debit Credit
Cash $19,300
Accounts receivable 47,630
Allowance for doubtful accounts 250
Prepaid rent 1,680
Supplies 6,800
Investments 113,520
Furniture 15,350
Accumulated depreciationfurniture
12,800
Equipment 44,600
Accumulated depreciationequipment
1,830
Building 89,900
Accumulated depreciationbuilding
28,600
Accounts payable 6,240
Salary payable
Unearned revenue, customer
deposits
19,750
Bonds payable 150,000
Premium of bonds payable 6,000
Common stock 20,000
Retained earnings 54,920
Dividends 5,200
Revenue 128,800
Salary expense 51,600
Rent expense 5,000
Utilities expense 10,410
Depreciation expense-furniture 0
Depreciation expense-equipment 0
Depreciation expense-building 0
Advertising expense 5,650
Supplies expense 12,000
Bad debts expense 0
Interest expense 0
Total $428,940 $428,940