Cash in Bank

Beginning Receipts Disburstment Ending

Ending Cash Unadjusted 0 4,200,000 3,900,000 300,000
Outsanding Checks 60,000 -60,000
Deposit In Transit 90,000 90,000
Adjusted Accounts
Ending Adjusted Balance 4,290,000 3,960,000 330,000
TOTAL RECEIPTS 4290000
TOTAL DISBURSTMENT 3960000

Accrual Sales

Collections of Sales 3,720,000

Undestributed
Tickets State the
ending balance of
AR as stated by the
Add: Ending Inventory 1,080,000 Problem
Total Accrual Sales 4,800,000

Note* the 60,000 pesos is Allowance for doubtful accounts and not Write Off

Accrual Purchases
Total Supplier Payments 3,246,000
Add Unpaid Invoice 420,000
Total Accrual Purchases 3,666,000
Less Ending Inventory 906,000
Cost of Goods Sold 2,760,000

Accrual Sales 4,800,000

Less Cost of Goods Sold 2,760,000
Gross Profit 2,040,000
Less:
Interest Expense-Notes 54,000 *534,000-480,000 54000
Bad Debts Expense 60,000
Interest Expense-Loan 30,000
Depreciation Expense 456000 The Sum of Depreciation of Both Equipment and Building
Utilities 120,000
Salaries 120,000
Supplies 240,000
Total Expenses 1,080,000 1,080,000

Net Income 960,000 Answer #3

Share Holders Equity

Ordinary Stock 7,200,000
Share Premium 600,000
Retained Earnings 0
Add Net Income 960,000
Less Dividends 180,000
Ending R.E 780,000 780,000
Total SHE 8,580,000 Answer#4

Total Assets
Cash on Hand 60,000 Cash on hand less customer deposits, as this has already been reflected in the cash in
Cash in Bank 330,000
Land 1,800,000
Equipment Net 384,000
Building Net 5,040,000
Accounts Receivable Net 1,020,000 AR less ADA
Inventories 906,000
Total Assets 9,540,000 Answer #5

Alternative Solution:
SHE 8,580,000
Add:
Unpaid Invoice 420,000
Loan Payable Balance 450,000
Customer Deposits 90,000 Customer Deposit is a Liability A.K.A advances from customers
Total SHE+LIAB 9,540,000 Alternative Solution #5

ASSETS=LIABILITY + SHE
Total Disburstments 3,960,000
Payment of Equipment -534,000
Payment of Interest -30,000
Payment of Principal -150,000
Total Disburstment Attributable To Purchases 3,246,000

Total Receipts 4290000

Initial Investment -600,000
Loan From Bank -600,000

Total Receipts net of Other Expenses 3090000

Expenses paid off receipts

Utilities 120,000
Salaries 120,000
Supplies 240,000
Dividends 180,000
Cash on Hand 60,000

Less:Customers Deposit -90,000

Total Collection from sales 3,720,000
 Cash Price vs Total Installment Payment is the Interest

h Equipment and Building

ady been reflected in the cash in Bank

Answer #1

*Note that the Company pays some its expenses

from Company Receipts meaning this amount is
not the total collections from customers

The Reason these were added because it was

stated in the problem that the company pays
inventories through checks and the rest with
receipts

It should be deducted as this customer deposit

represents advance payments from customers
and therefore not Collection from Sales
Answer #2