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Assets

Liabilities

Equity

Cash Flow

Cash

AR

Allowance

Inventory

Prepaid

Equip

Acc. Dep.

AP

Unearn Rev

Int. Pay

Warranty

Note Pay

Bonds

Stock

R.E.

Rev

Exp

January 1, 2010

Sold $200,000 in stock

Paid $12,000 for 1 year of rent

Received $24,000 for services to be delivered over the coming 12 months

Purchased equipment - $30,000, 2% discount, FOB shipping of $600

During the year:

On April 1, borrowed $10,000 at 3% interest per year. Interest is payable semi-annually.

Purchased inventory on account, $82,000.

Sold inventory for $90,000 on account.

The inventory had cost $62,000.

Collected $81,000 of the sales on account.

Paid $82,000 on accounts payable.

Purchased inventory on account, $96,000.

Paid $70,000 of the accounts payable.

Paid salaries of $20,000

Estimated that 2% of sales on account will be uncollectible

Depreciated equipment using SL, 5-year life, $5,000 estimated salvage

Recorded interest on the loan - first semi-annual payment

Recorded interest on the loan - year-end adjustment (3 months)

Received notice of a lawsuit from a customer. The attorneys believe there is no legal basis.

Rent expense

Earned Revenue

Ending Balance

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

Total Assets

$-

Total Liabilities and Equity

$-

Cash Flow Liabilities Unearn Rev Int. Prepeid Equip Acc. Bonds Stock R.E. Paid $12,000 for 1 year of rent Received $24.000 for services to be delivered On April 1, borrowed $10,000 at 3% interest per year. Interest is payabe semi-annually Sold inventory for $90,000 on account. The iventory had cost $82,000 Collected $81,000 of the sales on account Pald $82.000 on accounts payable Paid S70.000 of the accounts payable. Paid salaries of S20,000 Estrated that 2% of sales on account will be Recorded interest on the loan- first semi Recerved notice of a lawsuit from a custoner The etlorneys believe there is no legal basis