Share
Explore BrainMass

Transaction Worksheet

I have completed the transaction worksheet but cannot get it to balance!! The credits and debits are given. I can't figure out if i'm not substracting something or is something is in the wrong column(?)-If I can't complete the transaction workwheet correctly, then the whole assignment with common-size percentages and other calculations I have to do will be wrong and my essay will be wrong! Please help! The transaction calculator and given debits and credits are there in attachments with financial statements.

(See attached file for full problem description)

The Transaction Calculator includes all the information you need to create financial statements that reflect the actual financial activities of Red Desert Industries. The Transaction Calculator is composed of several parts (called "worksheets" in Excel),

2000 Financial Statements
This worksheet contains Red Desert's consolidated financial statements for the year 2000. You will need some of the information in these statements to set the beginning balances for the "Transaction Worksheet."

2001 Transactions & T-accounts
This worksheet contains descriptions of Red Desert's actual transactions and corresponding T-accounts for the year 2001. This information is required to complete the "Transaction Worksheet." (For more information about Transactions and T-accounts, see the

Transaction Worksheet
This worksheet is your main work area. To use this worksheet, first identify Red Desert's actual transaction amounts by studying the T-accounts listed in "2001 Transactions & T-accounts." Then enter the amounts into the appropriate cells in this worksheet

2001 Financial Statements
This worksheet contains Red Desert's consolidated financial statements for 2001. All cells in the balance sheet and income statement are blank at first, but are filled automatically as you make entries in the "Transaction Worksheet." Use the completed fin

2001 Transactions & T-Accounts, Red Desert Industries
Numbers in parentheses refer to transaction numbers in the list of 2001 Transactions to the right.
You might wish to print this page for quick reference when you enter the amounts into the Transaction Worksheet.

Asset Accounts

Cash Accounts Receivable (Net) Inventories 2001 Transactions, Red Desert Industries
BB 268 BB 12,013 BB 20,660 (in thousands)
(3) 96,366 81,999 (5) (1) 98,026 48 (2) (4) 81,585 81,713 (6)
* (14) 5,879 2,077 (7) 96,366 (3) The amounts for the first two transactions are provided for you.
(24) 11,436 1,909 (9) For the remaining transaction amounts, refer to the T-accounts
(25) 932 14,284 (11) EB 13,625 EB 20,532 to the left. (Although not necessary to understand accounting
* (26) 3 2,207 (13) principles, this will give you practice using T-accounts.)
* 1,190 (17) Land Buildings & Improvements
500 (19) BB 295 BB 4,546 1 Sales on account, $98,026
2,728 (23) (11) 547 2 Estimate of uncollectible accounts receivable, $48
3 Cash collections from credit customers
EB 295 EB 5,093 4 Purchase inventory on account
5 Cash payment for inventory purchased on account
Machinery & Equipment Accumulated Depreciation 6 Sold inventory (reduce inventory for the cost of inventory sold)
BB 31,009 9,245 BB 7 Paid for expenses in advance
EB 7,990 (11) 13,216 6,121 (12) 8 Used up prepaid
* (26) 1 9 Purchase of other assets
10 Used up other assets
EB 44,226 15,366 EB 11 Purchase buildings, construction in progress, and machinery and equipment
12 Record depreciation
13 Pay current portion of long-term debt
Other Assets Prepaid Expenses Construction in Progress 14 Issue new long-term debt
BB 96 BB 203 BB 21 15 Transfer current portion of long term debt from long-term to current
(9) 1,909 2,000 (10) (7) 2,077 2,000 (8) (11) 521 16 Accrued wage liability
17 Pay wages
18 Accrued tax expense
EB 5 EB 280 EB 542 19 Pay taxes
20 Record net tax deferral
21 Record interest expense
22 Record other expense
23 Payment of other liabilities
Liability Accounts 24 Issue stock for cash (common stock and APIC)
25 Adjusting Transaction: APIC
Notes Payable Curr. Port. of Long-term Debt Accounts Payable 26 Rounding error entry, Cash, Machinery and Equipment, Retained Earnings
- BB 2,207 BB 8,445 BB 27 Close income statements accounts to retained earnings (note that you do not have to enter this transaction in the Transaction Worksheet)
(13) 2,207 753 (15) (5) 81,999 81,585 (4)

- EB 753 EB 8,031 EB

Accrued Wages Accrued Taxes Other Current Liabilities
1,237 BB 836 BB 820 BB
(17) 1,190 1,421 (16) (19) 500 475 (18) * (23) 2,728 2,665 (21) *
40 (22) *

1,468 EB 811 EB 797 EB

Long-term Debt Repurchase Obligation Deferred Tax
24,084 BB - BB - BB
(15) 753 5,879 (14) 287 (20) *

29,210 EB - EB 287 EB

Shareholders' Equity Accounts

Common Stock Paid in Capital Retained Earnings
85 B 16,929 BB 5,223 BB
22 (24) 11,414 (24) 4 (26) *
932 (25) 1,256 (27) *

107 EB 29,275 EB 6,483 EB

Income Statement Accounts

Sales Cost of Goods Sold Selling, General, & Admin. Expense

98,026 (1) (6) 81,713 (2) 48
(12) 6,121 (8) 2,000
(10) 2,000
(16) 1,421
(27) 98,026 87,834 (27) 5,469 (27) *

- EB EB - EB -

Interest Expense Other/Net Tax expense

* (21) 2,665 * (22) 40 * (18) 475
* (20) 287

2,665 (27) * 40 (27) * 762 (27) *

EB - EB - EB -

Attachments

Solution Preview

Attached is the corrected sheet. The mistakes you hade made were:
1. Entered only one amount
2. Amounts ...

Solution Summary

The solution explains how to complete a transaction worksheet and prepare the financial statements using the example of Red Desert Industries

$2.19