By using the beginning balances on row 3 and the prompts in column C, please explain how to allocate the correct numbers in the correct columns.

   

Transactions: Operating Assets and Liabilities Accounts Transaction Description Cash Receivable, gross Inventory Beginning balances August 1 8,500 41,050 600 1 Take out a $30,000, 3-year bank loan, annual interest rate 6%, loan + interest due at the end of each month. 2 Lease construction equipment, total present value of lease payments $18,000 for 3 year lease, payments due the last day of the month 3 Collect cash from customers on account, $23,000 23,000 (23,000) 4 Pay office staff salaries of $5,600 cash, half of which covered the previous month Sign $29,500 contract with customer to construct an out-building, receive 10% cash 5 deposit from customer for anticipated delivery in 3 weeks 6 Buy construction materials for out-building, on account: $5,000 7 Rent small tools & equipment needed to construct outbuilding, on account $1,200 8 Pay carpenters $6,300 cash 9 Pay sales person salary $1,200 10a 10b Deliver out-building and receive cash from customer RECORD REVENUE ON THIS LINE Determine that $300 of usable construction materials remain on hand RECORD COGS ON THIS LINE 11 Pay off all vendors & suppliers 12 Determine that $120 of raw materials have been destroyed by recent flooding 13 Accrue 1-month's interest on long-term loan 14 Record 1 month depreciation on PPE ($750) and ROU asset (straight-line over lease term). 15 Sell PPE for $900 cash. Equipment costing $2,000 had accumulated depreciation of $1,200 by the time it was sold Certain PPE has declined in value. The PPE cost $1,500 and had accumulated depreciation 16 of $500. The company estimates that the fair value of the PPE is $400. 17 Make lease payment $539 cash, interest portion is $75 18 Accrue office staff salaries for last half of the month, $2,090 Ending Balances August 31 Assets Liabilities + Equity Right of Use PPE, at cost Asset Accumulated depreciation Accounts payable Accrued expenses Unearned revenue Lease obligation | Long-term debt Contributed capital Retained earnings 41,000 (8,500) 950 2,800 38,100 40,800 31,500 18,050 600 41,000 (8,500) 950 2,800 38,100 40,800 82,650 82,650