WAREN SPORTS SUPPLY, YEAR-END WORKSHEET, DECEMBER 31, 2009 Student Name________________________________________________

TRANSACTIONS LIST A Instructor_______________________Date Due_________________

(Accounts with no activity in this worksheet are excluded in this solution.)
12/31/2008 12/31/2009 ADJUSTED INCOME BALANCE
ACCT ACCOUNT POST CLOSING UNADJUSTED YEAR-END ADJUSTMENTS TRIAL BALANCE STATEMENT SHEET
NO. TITLE TRIAL BALANCE TRIAL BALANCE
DEBIT CREDIT DEBIT CREDIT ID # DEBIT ID # CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

ASSETS
10100 Cash 11,025.19 0.00 0.00
10200 Accounts receivable 11,065.00 0.00 0.00
10300 Allowance for doubtful accounts 3,250.81 0.00 0.00
10400 Inventory 101,681.00 0.00 0.00
10600 Marketable securities 0.00 0.00
10800 Fixed assets 320,665.00 0.00 0.00
10900 Accumulated depreciation 81,559.50 0.00 0.00

LIABILITIES
20100 Accounts payable 11,279.35 0.00 0.00
20300 Federal income taxes withheld 1,326.76 0.00 0.00
20400 State unemployment taxes payable 281.17 0.00 0.00
20500 Federal unemployment taxes payable 83.31 0.00 0.00
20600 F.I.C.A. taxes payable 1,593.30 0.00 0.00
20700 Federal incomes taxes payable 29,797.00 0.00 0.00
20900 Interest payable 0.00 0.00
21000 Notes payable 0.00 0.00

STOCKHOLDERS' EQUITY
26000 Common stock 225,000.00 0.00 0.00
29000 Retained earnings 90,264.99 0.00 0.00

REVENUE AND GROSS PROFIT

30100 Sales 0.00 0.00
30200 Sales returns and allowances 0.00 0.00
30300 Sales discounts taken 0.00 0.00
30400 Cost of goods sold 0.00 0.00
30500 Purchases 0.00 0.00
30600 Purchases returns and allowances 0.00 0.00
30700 Purchases discounts taken 0.00 0.00
30800 Freight-in 0.00 0.00
31200 Miscellaneous revenue 0.00 0.00

EXPENSES
40100 Rent expense 0.00 0.00
40200 Advertising expense 0.00 0.00
40300 Office supplies expense 0.00 0.00
40400 Depreciation expense 0.00 0.00
40500 Wages and salaries expense 0.00 0.00
40600 Payroll tax expense 0.00 0.00
40700 Federal income tax expense 0.00 0.00
40800 Interest expense 0.00 0.00
40900 Bad debt expense 0.00 0.00
41000 Other operating expense 0.00 0.00

Sub-totals 0.00 0.00 0.00 0.00

Net Income (Loss) ----------------- ----------------- ----------------- ----------------- -------- ----------------- -------- ----------------- ----------------- ----------------- 0.00 0.00
TOTALS 444,436.19 444,436.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
 WAREN SPORTS SUPPLY
BALANCE SHEET
AT DECEMBER 31, 2009 AND 2008

ASSETS

2009 2008
CURRENT ASSETS
Cash $0.00 $11,025.19
Accounts receivable - net 0.00 7,814.19
Inventory 0.00 101,681.00
Marketable securities 0.00 0.00
Total current assets 0.00 120,520.38

FIXED ASSETS - Net of

accumulated depreciation 0.00 239,105.50

Total assets $0.00 $359,625.88

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable $0.00 $11,279.35
Payroll taxes withheld
and payable 0.00 3,284.54
Federal income taxes payable 0.00 29,797.00
Interest payable 0.00 0.00
Total current liabilities 0.00 44,360.89

NOTE PAYABLE 0.00 0.00

Total liabilities 0.00 44,360.89

STOCKHOLDERS' EQUITY
Common stock 0.00 225,000.00
Retained earnings 0.00 90,264.99
Total stockholders' equity 0.00 315,264.99

Total liabilities and

stockholders' equity $0.00 $359,625.88
 WAREN SPORTS SUPPLY
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2009

REVENUE
Sales $0.00
Less: Sales returns and allowances 0.00
Sales discounts taken 0.00
Net sales 0.00
COST OF GOODS SOLD
Beginning inventory 101,681.00
Net purchases 0.00
Freight-in 0.00
Goods available for sale 101,681.00
Less: Ending inventory 0.00
Cost of goods sold 101,681.00

GROSS MARGIN (101,681.00)

OPERATING EXPENSES
Rent expense 0.00
Advertising expense 0.00
Office supplies expense 0.00
Depreciation expense 0.00
Wages and salaries 0.00
Payroll taxes 0.00
Bad debt expense 0.00
Other operating expense 0.00
Total operating expenses 0.00

Operating income (101,681.00)

OTHER INCOME - Miscellaneous income 0.00

OTHER EXPENSE - Interest expense 0.00

INCOME BEFORE TAXES (101,681.00)

FEDERAL INCOME TAXES 0.00

NET INCOME (101,681.00)

RETAINED EARNINGS - Beginning of year 90,264.99

RETAINED EARNINGS - End of year ($11,416.01)

 WAREN SPORTS SUPPLY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2009

CASH FLOWS FROM OPERATING ACTIVITIES

Net income ($101,681.00)
Adjustments to reconcile net income to net cash
from operating activities
Depreciation 0.00
(Increase) decrease in assets:
Accounts receivable 7,814.19
Inventory 101,681.00
Increase (decrease) in liabilities:
Accounts payable (11,279.35)
Payroll taxes withheld and payable (3,284.54)
Income taxes payable (29,797.00)
Interest payable 0.00
Net cash provided by operating activities (36,546.70)

CASH FLOWS FROM INVESTING ACTIVITIES

Cash payments for fixed assets 320,665.00
Purchase of marketable securities 0.00
Net cash used in investing activities 320,665.00

CASH FLOWS FROM FINANCING ACTIVITIES

Cash proceeds from loans 0.00

NET INCREASE IN CASH 284,118.30

CASH - Beginning of year 11,025.19

CASH - End of year $295,143.49

 WAREN SPORTS SUPPLY
POST-CLOSING TRIAL BALANCE
December 31, 2009

ACCT. NO. ACCOUNT TITLE DEBIT CREDIT

ASSETS

10100 Cash 0.00

10200 Accounts receivable 0.00
10300 Allowance for doubtful accounts 0.00
10400 Inventory 0.00
10600 Marketable securities 0.00
10800 Fixed assets 0.00
10900 Accumulated depreciation 0.00

LIABILITIES

20100 Accounts payable 0.00

20300 Federal income taxes withheld 0.00
20400 State unemployment taxes payable 0.00
20500 Federal unemployment taxes payable 0.00
20600 F.I.C.A. taxes payable 0.00
20700 Federal income taxes payable 0.00
20900 Interest payable 0.00
21000 Notes payable 0.00

STOCKHOLDERS' EQUITY

26000 Common stock 0.00

29000 Retained earnings 0.00

TOTALS $0.00 $0.00