Pickett Company: Working Trial Balance Paper
Trident University International
Module 1: Session Long Project
ACC 501: Accounting for Decision Making
23 November 2012
Session Long Project
Pickett Company
Working Trial Balance
31-Dec-12
Accounts
Debit (-)
Credit (+)
Accounts payable $14,500.00
Accounts receivable
$28,000.00
Cash
$46,500.00
Common stock $10,000.00
Depreciation expense
$18,250.00
Cost of goods sold
$402,610.00
Equipment (net of depreciation)
$325,000.00
Insurance
$1,500.00
Inventory
$70,500.00
Long-term debt $105,000.00
Marketing
$5,600.00 Misc. expenses
$4,500.00
Paid-in capital $90,000.00
Property taxes
$6,500.00
Rent
$22,000.00
Retained earnings $156,400.00
Revenues
$624,400.00
Salaries
$61,940.00 Utilities
$7,400.00
Total
$1,000,300.00
$1,000,300.00
The following is the list of changes once the errors were corrected to the Working Trail Balance. Accounts receivable increased by $10,000.00 to show the adjustment in the inventory. Cash increased …show more content…
However, they are in a bad financial position, they spend over half of their revenue on the actual sale of their product. Pickett Company needs to find a way to drive down their cost when they sale their product. They have very strong sales and they only are paying ten percent of their revenue to salaries for their employees, which is relatively low. Nevertheless, their cost of goods sold is horrible. This could be caused by a variety of things, for instance, this company might be a manufacturing company were transporting their inventory is their highest cost or the company may spend more money on higher quality raw materials. Bottom line Pickett Company needs to really look at their books and try to figure out a cheaper way to sale their
Module 1: Session Long Project
ACC 501: Accounting for Decision Making
23 November 2012
Session Long Project
Pickett Company
Working Trial Balance
31-Dec-12
Accounts
Debit (-)
Credit (+)
Accounts payable $14,500.00
Accounts receivable
$28,000.00
Cash
$46,500.00
Common stock $10,000.00
Depreciation expense
$18,250.00
Cost of goods sold
$402,610.00
Equipment (net of depreciation)
$325,000.00
Insurance
$1,500.00
Inventory
$70,500.00
Long-term debt $105,000.00
Marketing
$5,600.00 Misc. expenses
$4,500.00
Paid-in capital $90,000.00
Property taxes
$6,500.00
Rent
$22,000.00
Retained earnings $156,400.00
Revenues
$624,400.00
Salaries
$61,940.00 Utilities
$7,400.00
Total
$1,000,300.00
$1,000,300.00
The following is the list of changes once the errors were corrected to the Working Trail Balance. Accounts receivable increased by $10,000.00 to show the adjustment in the inventory. Cash increased …show more content…
However, they are in a bad financial position, they spend over half of their revenue on the actual sale of their product. Pickett Company needs to find a way to drive down their cost when they sale their product. They have very strong sales and they only are paying ten percent of their revenue to salaries for their employees, which is relatively low. Nevertheless, their cost of goods sold is horrible. This could be caused by a variety of things, for instance, this company might be a manufacturing company were transporting their inventory is their highest cost or the company may spend more money on higher quality raw materials. Bottom line Pickett Company needs to really look at their books and try to figure out a cheaper way to sale their