The 2011 balance sheet of the Captain Jet Inc. is attached. During 2012, the following events
occurred.

1. On January 10, sold merchandise on account to Rayms $9,000 and Fischer $8,600. Terms 2/10,
   n/30, F.O.B. shipping point.
2. On January 12, purchased merchandise on account from Zapfel $3,200 and Liotta $2,600. Terms
   1/10, n/30, F.O.B. destination.
3. On January 14, received checks, $4,500 from Longhini and $2,500 from Hall, for sales on account
   after discount period has lapsed.
4. On January 15, send checks to Joosten for 9,000 less 3% cash discount, and to Maida for $10,000
   less 2% cash discount.
5. On January 16, issued credit of $500 to Fischer for merchandise returned.
6. On January 21, paid off the balances to Zapfel and Liotta for the purchases on January 12.
7. On Feburary 9, received payment in full from Rayms and Fischer.
8. On March 1, paid rent of $4,800 for a two-year term starting from May 1, 2013.
9. On April 1, the company CEO paid $49,999 from her savings bank account to purchase a car for
   personal use.
10. On April 12, paid $700 cash for office supplies.
11. Cash dividends totaling $1,000 were declared on June 13 and paid to stockholders on June 23.
12. Issued a note of $120,000 to bank (one year, annual interest rate 4%) for cash on July 1.
13. On July 5, purchased merchandise from Maida $32,000, terms 3/10, n/30.
14. On July 7, issued common stock 1000 shares, $10 par, in exchange of a land with a fair market
    value of $16,000.
15. On July 8, returned $300 of merchandise to Maida and received credit.
16. On August 1, sold merchandise to Lachey on account $80,000, term 1/10, n/30, F.O.B. shipping
    point.
17. Paid off the balance to Maida on August 4.
18. On Auguest 8, paid utilities expense, $10,209.
19. On August 18, Lachey paid off its balance.
20. On September 1, paid cash $7,500 to Farmington for merchandise purchased last year. 2
21. On October 1, paid off notes payable $110,000 (issued in 2010) and associated interest $5,000
    (including $1,500 interest payable on the balance sheet).
22. Over the year, daily cash sales were $16,500.
23. Over the year, sales and office employees earned $46,500 in salaries and wages, of which $2,500
    remained as payable at the end of year.
24. On Dec 31, received an utilities bill of $1,250 (for December 2012) and paid off the bill on
    January 10, 2013.
    Additional Information at the end of 2012:
    1 .Depreciation expense for the year was $14,500.
25. The company estimated that it will pay federal income tax, $4,250.
26. After physically counting, the company decided that the ending inventories was $41,164.
27. Based on its historical data, the bad debts are about 1% of net credit sales.
28. Unearned revenue was decreased by $11,000.
29. The company expenses all of the supplies purchased during the year.
30. No insurance policy was effective during the year.
31. The company uses the gross method to record its purchases and sales on credit.
32. The company adopts the periodic inventory system.
33. Rayms, Fischer, and Lachey had zero balance on account as of Jan 1, 2012.
    Instructions:
34. Prepare journal entries for each event.
35. Prepare adjusting entries.
36. Prepare adjusted trial balance.
37. Prepare Income Statement, Retained Earnings Statement, and Balance Sheet.
38. Prepare closing entries.
39. Please use Excel spread sheet (or similar spread sheet software) to complete the project.
    CAPTAIN JET INC.
    BALANCE SHEET
    DECEMBER 31, 2011
    Current Assets
    Cash
    Notes Receivable
    Accounts Receivable
    Less: Allowance for Doubtful
    Accounts
    Inventories
    Prepaid Insurance
    Prepaid Rent
    Total Current Assets
    Non-Current Assets
    Long-term Investments
    Investments in held-formaturity securities
    Land held for future
    development
    Property, Plant, and Equipment

51,300
16,000
41,800
(3,000)
40,000
540
500
147,140
51,000
45,500

Land
Buildings
Less: Accumulated
Depreciation
Intangible Assets
Capitalized Development
Costs
Goodwill
Other Identifiable Intangible
Assets
Total Non-Current Assets
Total Assets
Current Liabilities
Notes Payable
Accounts Payable
Unearned Revenues
Income Taxes Payable
Property Taxes Payable
Interest Payable
Total Current Liabilities
Non-Current Liabilities
Provisions Related to Pensions
Bonds Payable
Total Non-Current Liabilities

Total Liabilities

85,000
675,000
(187,500)
8,000
76,000
48,000
801,000
948,140
110,000
33,500
12,000
9,440
6,600
1,500
173,040
93,100
300,000
393,100

566,140

Stockholders’ Equity
Common Stock
Preferred Stock
Paid-in-capital – Common
Stock
Paid-in-capital – Preferred
Stock
Retained Earnings
Accumulated Other
Comprehensive Income
Less: Treasury Stock
Total Stockholders’
Equity
Total Liabilities and
Stockholders’ Equity

100,000
100,000
27,500
10,000
152,250
5,000
(12,750)
382,000
948,140

Project One: Check Figures
Please use the following check figures for the project one.
Adjusted Trial Balance: Total $1,289,061
Income Statement:
Earning after income tax: $2,894
Retained Earnings Statement:
Retained Earnings: $154,144
Balance Sheet:
Total assets: $947,134
Total liabilities: $547,240

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