ACC-356 (Financial accounting Concepts & Research)

Case 1- Part 1

Professor Toynbee
Student Marina Strader
Date: 09/13/2020

1. ADCS had a total of $27,274 in cash sales that were generated by 25 such
transactions in 2019. All of the cash sales were a result of service performance
activities.
2. ADCS received $181,155 during 2019 from customers who paid on accounts.
3. ADCS incurred the following types of expenses:
 Gas purchases
 Insurance payment
 Bank Loan payment
 Machine maintenance
 New tires – supplies
 Oil change
 Taxes expense
 Account payable expense
 Machine purchase (PP&E)
 Rent payment expense
 Wage expense
4. ADCS pays its employees on a bi-weekly basis on the 1st and 15th of the month, with
some dates +/- two days, which is consistent with a bi-weekly deposit system.
5. Company pays at the end of each month for the upcoming month’s rent. The
company prepays for insurance quarterly, at the end of each quarter.
6. Austin Disposal Services is the primary vendor of the company.
7. The purchase of a new machine on 7/1/2019, tax payment on 4/13/2019, and
dividend payment on 12/25/2019 were one-time transactions.