CREATE A HORIZONTAL ANALYSIS TABLE

Verde company had the following balances in it's accounting records as of December 1, year 2:

Assets Liabilities & Stockholders Equity

Cash $ 44,500 Common Stock $83,000

Inventory 28,000 Retained Earnings 24,500

Land 35,000

Total $ 107,500 Total $107,500

The following accounting events occurred during December, Year 2.

Event. 1. Purchased $350 of office supplies on account from Office Supplies USA.

2. Purchased inventory that cost $18,600 on account from Richburg Company.

3. Paid 50% of the amount due to Richburg Company.

4. Sold 75% of the inventory purchased in event 2 for $27,000 on account

5. Paid $12,000 cash for 6 month insurance policy.

6. Took out a $40,000 twelve-month loan. Interest at a rate of 6% will be paid on loan.

7. Collected the amount due from the customer in event #4 .

8. Sold 100% of the inventory held at the beginning of the year for $60,000 cash.

9. Incurred $18,200 of operating expenses on account.

Adjustments A. Recognized accrued salaries expense of 3,500.

B. Had $50 of office supplies on hand at the end of period.

C. Recognize one month prepaid insurance has expired.

D. Physical count on inventory revealed inventory on hand of $4,300

Verde Company had the following balances in its accounting records as of December 1, year 2: