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    Office Hours Saturday June 20

    Uploaded by

    tomar_mudit
    1. The document shows a company's transactions throughout a year which resulted in an ending cash balance of $32,025. It includes purchases, sales, depreciation, and payments. 2. Key transactions include purchasing $40,000 of manufacturing equipment, earning $50,000 from product sales, and paying $10,000 in labor costs. 3. By the end of the year, accounts receivable were $10,000, inventory was $20,000, and accumulated depreciation on assets totaled $6,500. The company had $5,000 in accounts payable and $91,250 in retained earnings.

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    Office Hours Saturday June 20

    Uploaded by

    tomar_mudit
    9 views7 pages
    1. The document shows a company's transactions throughout a year which resulted in an ending cash balance of $32,025. It includes purchases, sales, depreciation, and payments. 2. Key transactions include purchasing $40,000 of manufacturing equipment, earning $50,000 from product sales, and paying $10,000 in labor costs. 3. By the end of the year, accounts receivable were $10,000, inventory was $20,000, and accumulated depreciation on assets totaled $6,500. The company had $5,000 in accounts payable and $91,250 in retained earnings.

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    1. The document shows a company's transactions throughout a year which resulted in an ending cash balance of $32,025. It includes purchases, sales, depreciation, and payments. 2. Key transactions include purchasing $40,000 of manufacturing equipment, earning $50,000 from product sales, and paying $10,000 in labor costs. 3. By the end of the year, accounts receivable were $10,000, inventory was $20,000, and accumulated depreciation on assets totaled $6,500. The company had $5,000 in accounts payable and $91,250 in retained earnings.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    9 views7 pages

    Office Hours Saturday June 20

    Uploaded by

    tomar_mudit
    1. The document shows a company's transactions throughout a year which resulted in an ending cash balance of $32,025. It includes purchases, sales, depreciation, and payments. 2. Key transactions include purchasing $40,000 of manufacturing equipment, earning $50,000 from product sales, and paying $10,000 in labor costs. 3. By the end of the year, accounts receivable were $10,000, inventory was $20,000, and accumulated depreciation on assets totaled $6,500. The company had $5,000 in accounts payable and $91,250 in retained earnings.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 7

    Examples

    Transaction Description Cash


    Account Balances START 49,000

    Transactions
    1 Purchase inventory materials
    Move raw materials to WIP
    2 Pay labourers for manufacturing (10,000)
    3 Factory overhead, rent, insurance, utilities (2,000)
    4 Purchase MANUFACTURING PPE 10 year life No salvage value (40,000)
    5 Depreciation on MANUFACTURING PPE
    6 Transfer WIP to Inventory 20,000
    7 Sell product for $50,000 cash for product costing $18,000 50,000
    8 Purchase computers for office use (NOT manufacturing) (15,000)
    9 Depreciation on computers
    10
    11
    12 Year 1 Set up allowance
    13 Write of Mr Gupta's account $80
    14 Mr Gupta pays 25 unexpectedly STEP 1
    15 Mr Gupta pays 25 unexpectedly STEP 2 25
    16
    17
    18 Goods sold on account (A/R) 10,000
    19
    20
    21
    22
    23
    24
    Account Balance END 32,025

    Balance sheet check digit


    Accounts Finished Goods Work In Prepaid Other Current
    Receivable Allowance Raw Materials Inventory Process Expenses Assets
    2,000 (150) - - - - -

    5,000
    (4,000) 4,000
    10,000
    2,000

    4,000
    20,000 (20,000)
    (18,000)

    (100)
    (80) 80
    25 (25)
    (25)

    10,000

    11,920 (195) 1,000 2,000 - - -

    A= 96,250
    Equipment at Accumulated Accounts Unearned Accrued Other Current
    cost Depreciation Payable Revenue Liabilities Liabilities
    - - - - - -

    5,000

    40,000
    (4,000)

    15,000
    (1,500)

    55,000 (5,500) 5,000 - - -

    L+E=
    Retained
    LT Debt Common Stock earnings Revenue Gains COGS
    - - 50,850

    -
    -
    -
    -
    -
    32,000 50,000 18,000
    -
    (1,500)
    -
    -
    (100)
    -
    -
    -
    -
    -
    10,000 10,000
    -
    -
    -
    -
    -
    -
    - - 91,250 60,000 - 18,000

    96,250
    Interest Depreciation Net
    SG&A Expense Bad Debt Losses Expense Expense Income

    -
    -
    -
    -
    -
    32,000
    -
    1,500 (1,500)
    -
    -
    100 (100)
    -
    -
    -
    -
    -
    10,000
    -
    -
    -
    -
    -
    -
    100 - - - 1,500 40,400
    Operating Cash Investing Cash Financing
    Flow Flow Cash Flow

    - - -

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