5/31/13 5/31/14 debits: cash20,000 28,250 accounts receivable 58,000 75,000 inventory 250,000...
TRANSCRIPT
5/31/13 5/31/14Debits:
Cash 20,000 28,250Accounts receivable 58,000 75,000 Inventory 250,000 220,000 Prepaid expenses 7,000 9,000 Plant assets 502,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 150,000 Accounts payable 115,000 123,000Salaries payable 72,000 47,250 Interest payable 25,000 27,000Bonds payable 100,000 70,000Common stock 280,000 370,000
Retained earnings 120,000 145,000 837,000 932,250
OPERATING:
INVESTING:
FINANCING:
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 75,000 Inventory 250,000 220,000 Prepaid expenses 7,000 9,000 Plant assets 502,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 150,000 Accounts payable 115,000 123,000Salaries payable 72,000 47,250 Interest payable 25,000 27,000Bonds payable 100,000 70,000Common stock 280,000 370,000
Retained earnings 120,000 (1) 130,000 145,000 837,000 932,250
OPERATING:Net income (1) 130,000
INVESTING:
FINANCING:
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 75,000 Inventory 250,000 220,000 Prepaid expenses 7,000 9,000 Plant assets 502,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 123,000Salaries payable 72,000 47,250 Interest payable 25,000 27,000Bonds payable 100,000 70,000Common stock 280,000 370,000
Retained earnings 120,000 (1) 130,000 145,000 837,000 932,250
OPERATING:Net income (1) 130,000Adj. – depreciation (2) 25,000
INVESTING:
FINANCING:
5/31/119 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 220,000 Prepaid expenses 7,000 9,000 Plant assets 502,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 123,000Salaries payable 72,000 47,250 Interest payable 25,000 27,000Bonds payable 100,000 70,000Common stock 280,000 370,000
Retained earnings 120,000 (1) 130,000 145,000 837,000 932,250
OPERATING:Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000
INVESTING:
FINANCING:
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 (4) 30,000 220,000 Prepaid expenses 7,000 9,000 Plant assets 502,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 123,000Salaries payable 72,000 47,250 Interest payable 25,000 27,000Bonds payable 100,000 70,000Common stock 280,000 370,000
Retained earnings 120,000 (1) 130,000 145,000 837,000 932,250
OPERATING:Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000Adj. – decrease in inventory (4) 30,000
INVESTING:
FINANCING:
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 (4) 30,000 220,000 Prepaid expenses 7,000 (5) 2,000 9,000 Plant assets 502,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 123,000Salaries payable 72,000 47,250 Interest payable 25,000 27,000Bonds payable 100,000 70,000Common stock 280,000 370,000
Retained earnings 120,000 (1) 130,000 145,000 837,000 932,250
OPERATING:Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000Adj. – decrease in inventory (4) 30,000Adj. – increase in prep. expenses (5) 2,000
INVESTING:
FINANCING:
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 (4) 30,000 220,000 Prepaid expenses 7,000 (5) 2,000 9,000 Plant assets 502,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 (6) 8,000 123,000Salaries payable 72,000 47,250 Interest payable 25,000 27,000Bonds payable 100,000 70,000Common stock 280,000 370,000
Retained earnings 120,000 (1) 130,000 145,000 837,000 932,250
OPERATING:Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000Adj. – decrease in inventory (4) 30,000Adj. – increase in prep. expenses (5) 2,000Adj. – increase in accounts payable (6) 8,000
INVESTING:
FINANCING:
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 (4) 30,000 220,000 Prepaid expenses 7,000 (5) 2,000 9,000 Plant assets 502,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 (6) 8,000 123,000Salaries payable 72,000 (7) 24,750 47,250 Interest payable 25,000 27,000Bonds payable 100,000 70,000Common stock 280,000 370,000
Retained earnings 120,000 (1) 130,000 145,000 837,000 932,250
OPERATING:Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000Adj. – decrease in inventory (4) 30,000Adj. – increase in prep. expenses (5) 2,000Adj. – increase in accounts payable (6) 8,000Adj. – decrease in salaries payable (7) 24,750
INVESTING:
FINANCING:
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 (4) 30,000 220,000 Prepaid expenses 7,000 (5) 2,000 9,000 Plant assets 502,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 (6) 8,000 123,000Salaries payable 72,000 (7) 24,750 47,250 Interest payable 25,000 (8) 2,000 27,000Bonds payable 100,000 70,000Common stock 280,000 370,000
Retained earnings 120,000 (1) 130,000 145,000 837,000 932,250
OPERATING:Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000Adj. – decrease in inventory (4) 30,000Adj. – increase in prep. expenses (5) 2,000Adj. – increase in accounts payable (6) 8,000Adj. – decrease in salaries payable (7) 24,750Adj. – increase in interest payable (8) 2,000
INVESTING:
FINANCING:
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 (4) 30,000 220,000 Prepaid expenses 7,000 (5) 2,000 9,000 Plant assets 502,000 (9) 98,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 (6) 8,000 123,000Salaries payable 72,000 (7) 24,750 47,250 Interest payable 25,000 (8) 2,000 27,000Bonds payable 100,000 70,000Common stock 280,000 (9) 70,000 370,000
Retained earnings 120,000 (1) 130,000 145,000 837,000 932,250
OPERATING:Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000Adj. – decrease in inventory (4) 30,000Adj. – increase in prep. expenses (5) 2,000Adj. – increase in accounts payable (6) 8,000Adj. – decrease in salaries payable (7) 24,750Adj. – increase in interest payable (8) 2,000
INVESTING:Purchase of plant assets (9) 28,000
FINANCING:
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 (4) 30,000 220,000 Prepaid expenses 7,000 (5) 2,000 9,000 Plant assets 502,000 (9) 98,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 (6) 8,000 123,000Salaries payable 72,000 (7) 24,750 47,250 Interest payable 25,000 (8) 2,000 27,000Bonds payable 100,000 70,000Common stock 280,000 (9) 70,000 370,000
(10) 20,000Retained earnings 120,000 (1) 130,000 145,000
837,000 932,250 OPERATING:
Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000Adj. – decrease in inventory (4) 30,000Adj. – increase in prep. expenses (5) 2,000Adj. – increase in accounts payable (6) 8,000Adj. – decrease in salaries payable (7) 24,750Adj. – increase in interest payable (8) 2,000
INVESTING:Purchase of plant assets (9) 28,000
FINANCING:Issuance of common stock for cash (10) 20,000
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 (4) 30,000 220,000 Prepaid expenses 7,000 (5) 2,000 9,000 Plant assets 502,000 (9) 98,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 (6) 8,000 123,000Salaries payable 72,000 (7) 24,750 47,250 Interest payable 25,000 (8) 2,000 27,000Bonds payable 100,000 70,000Common stock 280,000 (9) 70,000 370,000
(10) 20,000Retained earnings 120,000 (11) 105,000 (1) 130,000 145,000
837,000 932,250 OPERATING:
Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000Adj. – decrease in inventory (4) 30,000Adj. – increase in prep. expenses (5) 2,000Adj. – increase in accounts payable (6) 8,000Adj. – decrease in salaries payable (7) 24,750Adj. – increase in interest payable (8) 2,000
INVESTING:Purchase of plant assets (9) 28,000
FINANCING:Issuance of common stock for cash (10) 20,000Payment of cash dividends (11) 105,000
5/31/11 5/31/12Debits:
Cash 20,000 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 (4) 30,000 220,000 Prepaid expenses 7,000 (5) 2,000 9,000 Plant assets 502,000 (9) 98,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 (6) 8,000 123,000Salaries payable 72,000 (7) 24,750 47,250 Interest payable 25,000 (8) 2,000 27,000Bonds payable 100,000 (12) 30,000 70,000Common stock 280,000 (9) 70,000 370,000
(10) 20,000Retained earnings 120,000 (11) 105,000 (1) 130,000 145,000
837,000 932,250 OPERATING:
Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000Adj. – decrease in inventory (4) 30,000Adj. – increase in prep. expenses (5) 2,000Adj. – increase in accounts payable (6) 8,000Adj. – decrease in salaries payable (7) 24,750Adj. – increase in interest payable (8) 2,000
INVESTING:Purchase of plant assets (9) 28,000
FINANCING:Issuance of common stock for cash (10) 20,000Payment of cash dividends (11) 105,000Retirement of bonds payable (12) 30,000
5/31/11 5/31/12Debits:
Cash 20,000 (X) 8,250 28,250Accounts receivable 58,000 (3) 17,000 75,000 Inventory 250,000 (4) 30,000 220,000 Prepaid expenses 7,000 (5) 2,000 9,000 Plant assets 502,000 (9) 98,000 600,000
837,000 932,250 Credits:
Accum. depreciation 125,000 (2) 25,000 150,000 Accounts payable 115,000 (6) 8,000 123,000Salaries payable 72,000 (7) 24,750 47,250 Interest payable 25,000 (8) 2,000 27,000Bonds payable 100,000 (12) 30,000 70,000Common stock 280,000 (9) 70,000 370,000
(10) 20,000Retained earnings 120,000 (11) 105,000 (1) 130,000 145,000
837,000 932,250 OPERATING:
Net income (1) 130,000Adj. – depreciation (2) 25,000Adj. – increase in receivables (3) 17,000Adj. – decrease in inventory (4) 30,000Adj. – increase in prep. expenses (5) 2,000Adj. – increase in accounts payable (6) 8,000Adj. – decrease in salaries payable (7) 24,750Adj. – increase in interest payable (8) 2,000
INVESTING:Purchase of plant assets (9) 28,000
FINANCING:Issuance of common stock for cash (10) 20,000Payment of cash dividends (11) 105,000Retirement of bonds payable (12) 30,000
500,000 491,750Increase in cash (X) 8,250
500,000 500,000