1.

Inventory - 12-31-19 230,000

Income summary 230,000

2. Account receivable 40,000

Sales 40,000

3. Doubtful accounts expense 15,000

Allowance for doubtful accounts 15,000

4. Depreciation expense 90,000

Accumulated depreciation - Bldg 50,000
Accumulated depreciation - Equipt 40,000

5. Puchases 30,000
Accounts payable 30,000

6. Retained earnings 5,000

Rent expense 5,000

7. Rent expense 10,000

Accrued rent payable 10,000

8. Insurance expense 7,000

Retained earnings 7,000

9. Prepaid insurance 12,000

Insurance expense 12,000

EVELYN COMPANY
Income Statement
Year ended December 31, 2019

Sales
COGS 2,040,000
Inventory - beg 150,000
Purchases 1,230,000
GAS 1,380,000
Inventory - end (230,000) (1,150,000)
Gross income 890,000
Expenses:
Office expense (255,000)
Rent (245,000)
Insurance (45,000)
Supplies (140,000)
Doubtful accounts (15,000)
 Depreciation (90,000) (790,000)
Profit 100,000

EVELYN COMPANY
Statement of Financial Position
Year ended December 31, 2019

Assets:
MALL
Cash 200,000
Accounts receivable net of ADA 275,000
Inventory 230,000
Prepaid insurance 12,000 717,000

Land 300,000
Building 1,000,000
Accumulated depreciation (250,000) 750,000
Equipment 400,000
Accumulated depreciation (80,000) 320,000
Total Assets 2,087,000

LIABILITIES and EQUITIES

Account payable 130,000
Accrued rent payable 10,000 140,000
Equity: EASTERS COMPANY
Share capital 1,500,000
Retained earnings (345,000-5,000+7,000+100,000) 447,000
Total liabilities and Equities 2,087,000 INS PAID

Retained - beg 345,000

Adjustments - RE beg
Unrecorded accrued rent exp (5,000)
Unrecorded prepaid insurance 7,000 2,000
Udjusted beginning balance 347,000
Net income 100,000 Ins. Paid
Retained earnings - ending 447,000

ZETA COMPANY
Collections from customers 4,250,000
Increase in adv from customers 100,000
Sales cash basis 4,350,000 Sal Paid

Accounts receivable - Beg 1,000,000

Add: Sales - accrual basis 4,600,000
Advances from customer - end 300,000
Total 5,900,000
Less: Accounts receivable - end (1,300,000) Insurance paid
Write-off (50,000) Salaries
Advances from customer - beg (200,000) (1,550,000)
Sales - cash basis 4,350,000 JACQUELINE

MALL COMPANY
Accounts payable - ending 750,000
Add: Payment to suppliers 4,900,000
Total 5,650,000
Accounts payable - beginning (500,000)
Purchases - accrual 5,150,000

Inventory - beg 2,900,000

Purchases 5,150,000
GAS 8,050,000 CALAPAN COMPANY
Inventory - end (2,600,000)
Costs of goods sold 5,450,000
SOA/SALES
JACQUELINE
Cash sales 500,000
Collection from customers 2,200,000
Sales - cash basis 2,700,000

Seaside Company
Insurance paid 750,000
Salaries paid 1,520,000 Gross Sales
Total operating expense paid 2,270,000 Sales return
Sales discount
Operating expense 3,200,000 Net sales
Depreciation (1,000,000)
Prepaid insurance - beg (150,000)
Prepaid insurance - end 200,000
Accrued salaries payable - beg 120,000
Accrued salaries payable - end (100,000)
Total operating expense paid 2,270,000

TORY
Tory capital - beg 200,000
Add/(Less): Increase/(Decrease) in capital
 Net income 500,000
Withdrawal (100,000) 400,000 Gross purchases
Tory capital - end 600,000 Purchase return
Purchase discount
Hard Company Net purchases
Income - cash basis 6,000,000
Increase in AR 2,000,000
Derease in AP 1,500,000
Income - accrual basis 9,500,000

SPEE Company
Cash sales
Collections from custome
Total
Sales return
Sales - cash basis

SOA

Question #1
Cash sales
Sales on account
Gross sales

Cash purchases
Purchases on account
 Accounts Receivable
Beg Bal Collections
Sales on account Recovery of pre-
Recovery of pre- viously written off
viously written off accounts
accounts Written off AR
Dishonored note Sales return
Sales discount
End. Bal

Accounts payable
Payment Beg Bal
Purchace disc Purchases on acct
Purchase return Discount not taken (net method)

End Bal

Accounts Receivable
 1,000,000 4,250,000
4,600,000 50,000
5,600,000 4,300,000

1,300,000

Accounts payable
4,900,000 500,000
5,150,000 Purchases on account
4,900,000 5,650,000
750,000

Inventory
2,900,000 5,450,000 Cost of goods sold
5,150,000
8,050,000 5,450,000
2,600,000

ASTERS COMPANY
Prepaid insurace
150,000 625,000
650,000
800,000 625,000
175,000

Prepaid insurance
150,000 700,000
750,000
900,000 700,000
200,000

Accrued Salaries Payable

1,520,000 120,000
1,500,000
1,520,000 1,620,000
 100,000

nsurance paid 750,000

1,520,000
2,270,000
ACQUELINE
Accounts Receivable
1,000,000 2,200,000
3,000,000 120,000
4,000,000 2,320,000

1,680,000

ALAPAN COMPANY
Accounts Receivable
1,200,000 8,500,000
8,950,000 100,000
- 200,000
10,150,000 8,800,000

1,350,000

8,950,000
(250,000)
ales discount (500,000)
8,200,000

Accounts payable
300,000 1,500,000
5,200,000 5,850,000 Purchases on account
5,500,000 7,350,000

1,850,000
ross purchases 5,850,000
urchase return (400,000)
urchase discount (200,000)
et purchases 5,250,000

Accounts Receivable
1,000,000 3,100,000 Sales on acct
3,000,000 150,000
4,000,000 3,250,000

750,000

PEE Company
2,000,000
ollections from customers 3,100,000
5,100,000
(100,000)
ales - cash basis 5,000,000

Accounts and Notes Receivable

400,000 1,840,000
1,920,000 80,000
2,320,000 1,920,000

400,000

Accounts payable
1,520,000 310,000
300,000 1,830,000 POA
1,820,000 2,140,000

320,000

uestion #1
 500,000
ales on account 1,920,000
2,420,000

ash purchases 130,000

urchases on account 1,830,000
1,960,000