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  • Intro Transactions Owners Equity

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    Sunita Basak
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    1) The document shows accounting transactions throughout the year for a company, including revenues, expenses, assets, liabilities, and equity accounts. 2) Key transactions include the issuance of shares, purchase of inventory and fixed assets, payment and collection of accounts, and recognition of revenues and expenses. 3) By the end of the period, the company has $1,180,000 in cash, $149,167 in retained earnings, and total assets of $1,735,167 equal to total liabilities and owners' equity.

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    Original Title

    FRA Intro Transactions Comp Sol.

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    1) The document shows accounting transactions throughout the year for a company, including revenues, expenses, assets, liabilities, and equity accounts. 2) Key transactions include the issuance of shares, purchase of inventory and fixed assets, payment and collection of accounts, and recognition of revenues and expenses. 3) By the end of the period, the company has $1,180,000 in cash, $149,167 in retained earnings, and total assets of $1,735,167 equal to total liabilities and owners' equity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views2 pages

    Intro Transactions Owners Equity

    Uploaded by

    Sunita Basak
    1) The document shows accounting transactions throughout the year for a company, including revenues, expenses, assets, liabilities, and equity accounts. 2) Key transactions include the issuance of shares, purchase of inventory and fixed assets, payment and collection of accounts, and recognition of revenues and expenses. 3) By the end of the period, the company has $1,180,000 in cash, $149,167 in retained earnings, and total assets of $1,735,167 equal to total liabilities and owners' equity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Intro Transactions

    Owners Equity
    Assets = Liabilities + Revenues/Expenses + Contributed Capital

    400000 Cash 400000 Loans


    June 30th
    20000 Interest Payable -20000 Interest Expense (400000x0.1x6/12)
    Dec 31st

    -50000 Cash
    50000 C.D.
    March 1st
    5000 Interest Receivable 5000 Interest Income (50000x0.12x10/12)
    Dec 31st

    50000 Cash 50000 Unearned Revenue


    Sep 30th
    -12500 Unearned Revenue 12500 Revenues (50000x3/12)
    Dec 31st

    -24000 Cash
    24000 Prepaid Rent
    April 1st
    -18000 Prepaid Rent -18000 Rent Expense (24000x9/12)
    Dec 31st

    72000 Cash 72000 Unearned Revenue


    June 1st
    -21000 Unearned Revenue 21000 Revenues (72000x7/24)
    Dec 31st

    -36000 Cash
    36000 Prepaid Rent
    March 31st
    -13500 Prepaid Rent -13500 Rent Expense (36000x9/24)
    Dec 31st

    600000 Inventory
    -500000 Cash 100000 Accounts Payables

    560000 Cash 560000 Revenues


    -400000 Inventory -400000 Cost of Goods Sold (COGS)

    -50000 Cash
    50000 Advance
    March 1st
    4167 Interest Receivable 4167 Interest Income (50000x0.1x10/12)
    Dec 31st

    120000 Accounts Receivables 120000 Revenues


    -80000 Inventory -80000 Cost of Goods Sold (COGS)

    -100000 Accounts Receivables


    100000 Cash
    -80000 Cash -80000 Accounts Payables

    50000 Cash 50000 Contributed Capital


    -10000 Cash -10000 Dividends

    900000 Cash 200000 Share Capital (20000x10)


    700000 Share Premium (2000x(45-10))

    -2000 Cash -2000 Dividends

    300000 Machine 100000 10% Loans


    -200000 Cash
    April 1st
    -22500 Accumulated Dep. -22500 Depreciation Expense (300000/10 years x 9/12)
    7500 Interest Payable -7500 Interest Expense (100000x0.1x9/12)
    Dec 31st
    1735167 636000 161167 938000

    1180000

    Cash Balance Income Statement


    400000 Loans 713500 Revenues
    -50000 CD 9167 Interest Income
    50000 Revenues -480000 COGS
    -24000 Rent -31500 Rent Expense
    72000 Revenues -22500 Depreciation Expense
    -36000 Rent -27500 Interest Expense
    -500000 Inventory 161167 Net Income
    560000 Revenues
    -50000 Advance
    100000 Accounts Receivables collected Reserves and Surplus
    -80000 Accounts Payables paid 0 Opening Balance
    50000 Capital 161167 Net Income
    -10000 Dividends -12000 Dividends
    900000 Shares issued 149167 Ending Balance
    -2000 Dividends
    -200000 Machine Purchased
    1180000 Ending Cash Balance

    Balance Sheet
    Assets
    Cash 1180000
    Accounts Receivables 20000
    Interest Receivable 9167
    Inventory 120000
    Prepaid Expenses 28500

    CD 50000
    Advance 50000
    Machine 300000
    less: Accm. Dep -22500 277500
    Total 1735167

    Liabilities
    Accounts Payables 20000
    Interest Payable 27500
    Unearned Revenues 88500

    10% Loans 500000

    Owners Equity
    Contributed Capital 50000
    Share Capital 200000
    Share Premium 700000
    Reserves and Surplus 149167
    Total 1735167

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