Assets: 101 Cash 105 Accounts Receivable 110 Note Receivable 115 Inventory 120 Prepaid Insurance 125 Warehouse...

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Assets: 101 Cash 105 Accounts Receivable 110 Note Receivable 115 Inventory 120 Prepaid Insurance 125 Warehouse Building 130 Equipment Liabilities: 201 Account Payable 205 Note Payable 210 Wages Payable 215 Loan Payable 220 Interest Payable Owners' Equity: 301 Capital Stock 310 Dividends Revenues: 401 Sales Revenue 405 Interest Revenue Expenses: 501 Cost of Goods Sold 505 Wages Expense 510 Utilities Expense 515 Insurance Expense 520 Income Tax Expense 530 Depreciation Expense = Historical cost – Salvage Value %3! Useful Life Assume the following: Lomo Engineering Company had the following transactions: Jan-01 Issued capital stock for $965,000. Jan-01 Purchased a Packaging Equipment for $20,000. Jan-01 Purchased an Insurance Policy (1 year) for $30,000. Purchased a Machine, paying $15,000 in cash and issuing a note of $20,000. Jan-03 Jan-05 Purchased $28,000 of inventory on account. Jan-07 Sold inventory costing $6,000 for $50,000 on account. Jan-11 Paid $2,000 for inventory purchased on account (from Jan-05). Jan-15 Collect $12,550 of accounts receivable from customers (from Jan-07). Jan-17 Paid utility bills totaling $1,500. Jan-23 Paid wages for $13,000. Jan-25 Collect $8,000 in bank interest. Jan-30 Paid $12,590 due to income taxes. D. Prepare Income Statement. E. Prepare Retained Earnings Statement. F. Prepare Balance Sheet. G. Prepare a Cash Flow Statement Assets: 101 Cash 105 Accounts Receivable 110 Note Receivable 115 Inventory 120 Prepaid Insurance 125 Warehouse Building 130 Equipment Liabilities: 201 Account Payable 205 Note Payable 210 Wages Payable 215 Loan Payable 220 Interest Payable Owners' Equity: 301 Capital Stock 310 Dividends Revenues: 401 Sales Revenue 405 Interest Revenue Expenses: 501 Cost of Goods Sold 505 Wages Expense 510 Utilities Expense 515 Insurance Expense 520 Income Tax Expense 530 Depreciation Expense = Historical cost – Salvage Value %3! Useful Life Assume the following: Lomo Engineering Company had the following transactions: Jan-01 Issued capital stock for $965,000. Jan-01 Purchased a Packaging Equipment for $20,000. Jan-01 Purchased an Insurance Policy (1 year) for $30,000. Purchased a Machine, paying $15,000 in cash and issuing a note of $20,000. Jan-03 Jan-05 Purchased $28,000 of inventory on account. Jan-07 Sold inventory costing $6,000 for $50,000 on account. Jan-11 Paid $2,000 for inventory purchased on account (from Jan-05). Jan-15 Collect $12,550 of accounts receivable from customers (from Jan-07). Jan-17 Paid utility bills totaling $1,500. Jan-23 Paid wages for $13,000. Jan-25 Collect $8,000 in bank interest. Jan-30 Paid $12,590 due to income taxes. D. Prepare Income Statement. E. Prepare Retained Earnings Statement. F. Prepare Balance Sheet. G. Prepare a Cash Flow Statement