1-Use the Reconciliation form to reconcile the bank statement with the cash account.

Correct any components with t

s with the proper journal entry

General Ledger Sheet Sheet Number: 57

ACCOUNT: Cash Account Number: 750
Date: Description: Journal Ref: Transaction
Debit Credit
3/1/20 Opening
Pinnacle Balance
Group Advertising- 25,895.90
3/6/20 Check #1005
Cash withdraw-Promo A506 $20,000.00
03/12/20 Supplies
Cash withdraw-Germinator A508 $600.00
3/18/20 Cleaning
Deposit-Check #3522-B&G A509 $630.00
3/25/20 paid
FCA invoice (#2530)
Credit Union Loan- A510 $25,776.87
03/26/20 Check #1006
Duke Enterprises-Check A511 $4,500.00
03/31/20 #1007 A512 $16,392.00

Total
03/01-03/31/20 Debit/Credits $51,672.77 $42,122.00
03/01-03/31/20 Ending Balance: $9,550.77
 Circuit Computers, Bank Reconilication for March 31, 2020

Balance Per Bank Balance Per Books

Unadjusted balance from the bank statement Unadjusted balance from the Cash Account
0
Adjustments to the bank balance Add: Bank interest earned
Add: Deposits in transit Add: Auto/Electronic Deposits
Deduct: Oustanding Checks Deduct: Fees/Returned Checks
Add: Bank Errors Add: Company Errors
Deduct: Bank Errors Deduct: Company Errors
Total Adjusted balance per BANK: Total Adjusted balance per BOOKS:

FINAL RECONCILIATION NUMBERS

Balance Per Bank Balance Per Books

Unadjusted balance from the bank statement Unadjusted balance from the Cash Account

(+/-) adjustments to BANK (+/-) adjustments to BOOKS

Adjusted balance per BANK: Adjusted balance per BOOKS:

Journal Entries Debit Credit

03/31/20
Cash
COGS $ 200.00
Sales Revenue
Inventory $ 200.00 *The date is listed as the day
add the trasaction date in the
03/31/20 entry
d as the day of the reconciliation,
n date in the description of each
 Circuit Computers
General Journal
Date Description Debit (Dr) Credit (Cr)

03/12/20 Cash withdraw--Promotional Supplies

Selling Expenses $600.00
Cash $600.00

03/18/20 Cash withdraw--Germinator Cleaning

General and Administrative $630.00
Cash $630.00

03/31/20 Check #1007-Duke Enterprises - Paid invoce #3254

Accounts Payable $16,392.00
Cash $16,392.00

03/31/20
Cash
COGS
Sales Revenue
Inventory

03/31/20
*Copy the journal entries over from the bank reconciliation
 Trial Balance Unadjusted Trial
Debit Credit
Account Name Account Name
Cash Cash
Accounts Receivable Accounts Receivable
Inventory Inventory
Fixed Assets 140,000.00 Fixed Assets
Accumulated depreciation 25,000.00 Accumulated depreciation
Advances to Owners 6,000.00 Advances to Owners
Accounts Payable Accounts Payable
Accrued taxes 3,000.00 Accrued taxes
Current portion of LTD 6,000.00 Current portion of LTD
Note payable Note payable

Equipment Loan payable 54,000.00 Equipment Loan payable

Owner's investment 20,000.00 Owner's investment
Sales Income/Revenue Sales Income/Revenue
COGS COGS
Selling expenses Selling expenses
General and Administrative General and Administrative
Interest expense Interest expense
Income taxes 27,000.00 Income taxes
173,000.00 108,000.00

Note: The account balances that will have no change from Unadjusted Trial Balance to end of month balance have
been filled in for you already. Please note that although Accounts Payable usually has a Credit balance, there are
reasons it might have a Debit balance, this is not an error in the Case Study.
justed Trial Balance
Debit Credit

25,895.90
65,776.87
30,200.00
140,000.00
25,000.00
6,000.00
17,608.00
3,000.00
6,000.00
104,000.00

54,000.00
20,000.00
878,725.00
519,800.00
69,400.00
169,544.23
19,500.00
27,000.00
1,090,725.00 1,090,725.00
 Circuit Computers
as of March 31
Balance Sheet
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Non-Current Assets
Fixed Assets
Less Accumulated Depreciation
Advances to Owners
Total Assets $0.00
Liabilities and Equity
Current Liabilites
Accounts Payable
Accrued Taxes
Current Portion of LTD
Note Payable
Long-Term Liabilities
Equipment Loan Payable
Total Liabilities 0.00
Equity
Retained Earnings (Net Income)
Owner's Investment
Total Equity 0.00

Total Liabilites and Equity $0.00

Note: don't enter depreciation as negative, Balance
Sheet formula is set up to minus it.
Income Statement (March 1 - March 31) February January
Income (Revenues/Sales)
Sales
Income/Revenue $900,000.00 $750,000.00

Total Income $0.00 $900,000.00 $750,000.00

Cost of Goods Sold
Total COGS $498,000.00 $340,000.00
Gross Profit $0.00 $402,000.00 $410,000.00

Operational Expenses
Selling Expenses $40,000.00 $75,000.00
General &
Administrative $160,000.00 $155,000.00
Total Expenses $0.00 $200,000.00 $230,000.00
EBIT Operating Income $0.00 $202,000.00 $180,000.00
Interest Expense $20,000.00 $20,000.00
Net profit before
tax $0.00 $182,000.00 $160,000.00
Income Taxes $27,000.00 $52,234.00 $45,920.00
Net Profit -$27,000.00 $129,766.00 $114,080.00
 March February January

Gross Margin 44.67% 54.67%

Operating Margin
Net Margin