MAYNARD COMPANY (A)

Diane Maynard made the following request of a friend”

My book keeper has quit and I need to see the balance sheet of my company.

He has left a book with some numbers already on it. Would you be willing to prepare the balance
sheets for me?

Also, any comment you care to make about the numbers would also be appreciated. The cash

account is healthy which is a good sign, and he has told me that net income in June was $
19,635.

The book contained a detailed record of transaction and from it the friend was able to copy off the
balances at the beginning of the month and the end of the month balances as shown in Exhibit 1.

Diane Maynard owned all the stock of Maynard company. At the end of June , Diane Maynard paid
herself $ 11,700 as dividend and used the money to repay her loan from the company.

Prepare Balance sheet as of June 1 and June 30 .

EXHIBIT 1” ACCOUNT BALANCES

June 1 June 30
Accounts payable 8517 21315

Accounts Receivable 21798 26505

wages payable 1974 2202

Accumulated depreciation on building 156000 157950

Accumulated depreciation on equipment 5304 5928

Bank notes payable 8385 29250

Building 585000 585000

Capital 390000 390000

Cash 34983 66660

Equipment ( At cost) 13260 36660

Land 89700 89700

Merchandise inventory 29835 26520

Note receivable , Diane Maynard 11700 0

Other Non current assets 4857 5265

Other non current liabilities 2451 2451

Prepaid Insurance 3150 2826

Retained earning 221511 229446

Misc. Supplies on hand 5559 6630

Taxes Payable 5700 7224