Who asked: Stonebridge Makers owner.
Why: Prepare the first supported closing file.
Data: Machine invoice, service date, inventory count and accrual notes.
Done: Post adjustments, check profit, protect the date and check balance sheet assets.
Stonebridge Makers is preparing its first reporting package. The source records include a $6,000 machine placed in service January 1, opening inventory of $2,000, a $4,000 inventory purchase and a $12,000 cash sale whose $2,000 cost is already recorded. The owner has supplied a count, a depreciation policy and unrecorded costs. Build the adjustments into the same company file, then check the statements.
Use straight-line depreciation over five years with zero salvage and the full-month convention. The inventory ledger is $4,000 before the supported count of $3,700, so the shortage is an additional cost of sales. The file supplies the year's complete fictional activity and uses December 31 as its reporting date. The final balance sheet must remain supported by the adjusted ledger.