Browning Manufactur Company C6-1

Brownings Manufacturing Company
General Journal
Dec 31, 2006
1) A/R 2,562,000
Sales
Sales return & allow 19,200

A/R
Sales Discount 49,200

A/R
2) Manufacture plant & equipment 144,000

Cash
Prepaid manufacture tax & insurance 78,000

Cash
Material inventory 825,000

A/P
Supplies 66,000
A/P
Direct manufacture labor 492,000

Indirect manufacture labor 198,000
Social,secur, tax 49,200
Power,heat,light 135,600
Cash
Work in process inventory 874,800

Direct manuf labor
Indirect manuf labor
Social,secur, tax
Power,heat,light
Selling administration expense 522,000

Cash
3) Depreciation exp - manufacture building & Equipment 140,400

Accumulated depr - manuf bld & eqp
Taxes and insurance expense 52,800

Prepaid tax and insurance
Supplies used 61,200

Supplies
Material Used 811,000

Material Inventory
WIP inventory 1,065,400

Depreciation exp - manufacture building & Equipment
Taxes and insurance expense
Supplies used
Material Used
4) Finished good inventory 1,901,952

WIP inv
5) Cost of good sold 1,806,624

FG inv
6) Cash 264,000
Bank notes payable
Interest exp 38,400

Cash
7) Cash 2,604,000
A/R
8) A/P 788,400
Cash
Income tax payable 9,000

Cash
9) Income tax expense 58,000

Income tax payable
Cash
10) Retained earnings 36,000

Dividend Payable
Dividend Payable 36,000
Cash
2,562,000
19,200
49,200
144,000
78,000
825,000
66,000
874,800
492,000
198,000
49,200
135,600
522,000
140,400
52,800
61,200
811,000
140,400
52,800
61,200
811,000
1,901,952
1,806,624
264,000
38,400
2,604,000
788,400
9,000
5,800
52,200
36,000
36,000
General Ledger
Dec 31, 2006
100,001 cash and marketable securities

Date D K
beginning balaced, dec 31, 2005 118,440
Friday, December 02, 2005 144,000
Tuesday, December 06, 2005 264,000
Wednesday, December 07, 2005 2,604,000
Thursday, December 08, 2005 788,400
Saturday, December 10, 2005 36,000
Total 2,986,440 2,842,800
Balance 143,640
100,002 Account Receivable

Date D K
Thursday, December 01, 2005 2,562,000
Total 2,873,760 2,672,400
Balance 201,360
100,003 materials inventory

Date D K
Total 935,520 811,000
Balance 124,520
100,004 WIP Inventories

Date D K
Saturday, December 03, 2005 1,065,400
Sunday, December 04, 2005 1,901,952
Total 2,112,400 1,901,952
Balance 210,448
100,005 Finish goods inventory

Date D K
Sunday, December 04, 2005 1,901,952
Total 2,158,992 1,806,624
Balance 352,368
100,005 Supplies inventory

Date D K
Monday, December 03, 2018 61,200
Total 83,280 61,200
Balance 22,080
100,006 Prepaid taxes and insurance

Date D K
Beginning balance 66,720
Total 144,720 52,800
Balance 91,920
101,001 Manufacturing Plant and equipment

Date D K
Beginning Balance 2,678,400
Total 2,822,400 -
Balance 2,822,400
101,002 Accumulated Depreciation Plant and Equipment

Date D K
Beginning Balance 907,200
Total - 1,047,600
Balance 1,047,600
200,001 Account Payable
Date D K
Total 788,400 1,076,760
Balance 288,360
200,002 Bank Notes Payable

Date D K
Total - 552,840
Balance 552,840
200,002 Income Taxes Payable

Date D K
Total 9,000 14,800
Balance 5,800
300,001 Capital Stock

Date D K
Beginning Balance 1,512,000
Total 300,000 1,512,000
Balance 1,212,000
300,002 Retained Earnings

Date D K
Less net income (retained earnings current years) 105,000
Monday, December 10, 2018 36,000
Total 141,000 829,560
Balance 688,560
400,001 Sales
Date D K
Beginning balance 2,295,600
Saturday, December 01, 2018 2,562,000
Total - 4,857,600
Balance 4,857,600
400,002 Sales Return and Allowence

Date D K
Total 36,840 -
Balance 36,840
400,003 Sales Discount

Date D K
Total 93,120 -
Balance 93,120
500,001 COGS
Date D K
1,568,280
Monday, December 05, 2005 1,806,624
Total 3,374,904 -
Balance 3,374,904
500,002 Selling and administrative expense

Date D K
437,160
Total 959,160 -
Balance 959,160
500,003 Interest expense

Date D K
34,080
Total 72,480 -
Balance 72,480
500,004 Income tax expense

Date D K
89,520
Total 147,520 -
Balance 147,520
Equipment
COST Of Goods Solds
Dec 31, 2006
Finished Goods Inventory, Beginning

Work in Process Inventory, Beginning
Materials Used
Add: Factory Expenses
Direct Manufacturing Labor
Factory Overhead:
Indirect Manufacturing Labor 198,000
Power, Heat, and Light 135,600
Depreciation of Plant 140,400
Social Security Taxes 49,200
Taxes and Insurance 52,800
Supplies 61,200
Less: Work in Process Inventory, Ending

Cost of Good Sold Manufactured
Cost of Good Available for Sale
Less: Finished Goods Inventory, Ending
Cost of Good Sold
257,040
172,200
811,000
492,000
637,200
2,112,400
(210,448)
1,901,952
2,158,992
(352,368)
1,806,624
Income Statement
December 31, 2006
Sales 2,562,000
Sales Return and Allowence 19,200
Sales Discount 49,200 (68,400)
COGS (1,806,624)
Gross Profit 686,976
Selling and administrative expense 522,000
Interest expense 38,400
Income tax expense 58,000
Total Expenses (618,400)
Profit 68,576
Work Sheet
Per Dec 31, 2006
Trial Balance Income statement

Code Account
Dr Cr Dr
100,001 cash and marketable securities 143,640
100,002 Account Receivable 201,360
100,003 materials inventory 124,520
100,004 WIP Inventories 210,448
100,005 Finish goods inventory 352,368
100,006 Prepaid taxes and insurance 91,920
100,007 Supplies inventory 22,080
101,001 Manufacturing Plant and equipment 2,822,400
101,002 Accumulated Depreciation Plant and Equipment 1,047,600
200,001 Account Payable 288,360
200,002 Bank Notes Payable 552,840
200,002 Income Taxes Payable 5,800
300,001 Capital Stock 1,212,000
300,002 Retained Earnings 688,560
400,001 Sales 4,857,600
400,002 Sales Return and Allowence 36,840 36,840
400,003 Sales Discount 93,120 93,120
500,001 COGS 3,374,904 3,374,904
500,002 Selling and administrative expense 959,160 959,160
500,003 Interest expense 72,480 72,480
500,004 Income tax expense 147,520 147,520
Total 8,652,760 8,652,760 4,684,024
Profit 173,576
Income statement Balance Sheet
Cr Dr Cr
143,640
201,360
124,520
210,448
352,368
91,920
22,080
2,822,400
1,047,600
288,360
552,840
5,800
1,212,000
688,560
4,857,600
4,857,600 3,968,736 3,795,160

173,576
2 2006 is better than 2005
because sales increase
2006 is worse than 2005

because selling and adm exp increase
27.55% Gross margin percentage for 2006
29.80% Gross margin percentage for 2005
3 Yes, the cash is sufficient to pay $300.000 of note payable

4 inventory turnover COGS
inventory
2006 1,806,624 2.547

709,416
2005 1568280 2.81538

557040
The inventory turnover is slightly decrease in 2010, marketing manager

5 A/R in 2005 is decreasing so the collection of A/R is better than 2005, b
payable
, marketing manager and sales manager should generate more sales to increase this tu
is better than 2005, but there is a possibility that there are customer that can't pay thei
to increase this turnover by develop new marketing strategies
that can't pay their debt and we have to written off their A/R

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Brownings Manufacturing Company

Sales return & allow 19,200

Sales Discount 49,200

2) Manufacture plant & equipment 144,000

Prepaid manufacture tax & insurance 78,000

Material inventory 825,000

Direct manufacture labor 492,000

Work in process inventory 874,800

Selling administration expense 522,000

3) Depreciation exp - manufacture building & Equipment 140,400

Taxes and insurance expense 52,800

Supplies used 61,200

Material Used 811,000

WIP inventory 1,065,400

4) Finished good inventory 1,901,952

5) Cost of good sold 1,806,624

Interest exp 38,400

Income tax payable 9,000

9) Income tax expense 58,000

10) Retained earnings 36,000

100,001 cash and marketable securities

100,002 Account Receivable

100,003 materials inventory

100,004 WIP Inventories

100,005 Finish goods inventory

100,005 Supplies inventory

100,006 Prepaid taxes and insurance

101,001 Manufacturing Plant and equipment

101,002 Accumulated Depreciation Plant and Equipment

200,002 Bank Notes Payable

200,002 Income Taxes Payable

300,001 Capital Stock

300,002 Retained Earnings

400,002 Sales Return and Allowence

400,003 Sales Discount

500,002 Selling and administrative expense

500,003 Interest expense

500,004 Income tax expense

Finished Goods Inventory, Beginning

Less: Work in Process Inventory, Ending

Trial Balance Income statement

4,857,600 3,968,736 3,795,160

2006 is worse than 2005

3 Yes, the cash is sufficient to pay $300.000 of note payable

2006 1,806,624 2.547

2005 1568280 2.81538

The inventory turnover is slightly decrease in 2010, marketing manager

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