A,L or E

1   Equipment A
2   Retained Earnings E
3   Common Stock E
4   Dividend Payable L
5   Prepaid Expense A
6   Inventory A
7   Accounts Receivable A
8   Land A
9   Goodwill developed by firm NA
10   Factory A

Satemen Balance Cash

t of P/L Sheet Flow
1 Consulting Revenue x
2 Land x
3 Interest Expense x
4 Accrued Salaries Payable x
5 Equity Share Capital x
6 Salaries Expense x
7 Net Cash generated by Operating Activities x
8 Retained Earnings x
9 Property Plant & Equipment x
10 Interest Income x
11 Dividend Payable x
12 Accounts Payable x
13 Total Stockholder's Equity x
14 Net Change in Cash x
15 Notes Payable x
 Assets = Liabilities + Equity
Accounts Share Retained
Cash Acco. Rec. Supplies Equipment Payable Capital Earnings
1 $ 30,000 F $ 30,000
2 (2,500) O $ 2,500
3 (26,000) I $ 26,000
4 7,100 $ 7,100
5 $ 4,200 O $ 4,200 Revenue
6a (1,000) O (1,000) Expense
6b (700) O (700) Expense
7a 1600 1600 Revenue
7b 300 300 Income
8 1900 O (1,900)
9 (900) O (900)
10 (200) F (200) Dividend
$ 4,800 $ - $ 9,600 $ 26,000 $ 6,200 ### $ 30,000 $ 4,200

Balance FF as at Statement of PL for the month ending

Assets Consulting revenue 5800
Cash 4800 Rental Income 300
Acco. Rec. 0 Total Income 6100
Supplies 9600 Salary Expe 700
Equipment 26000 Rental Exp 1000
Total Assets 40400 Total Expense 1700
L&E Profit 4400
Acc. Payable 6200 CFS
Share Capital 30000 CFO (A) 1000
Ret. Earnings 4200 CFI (B) -26000
Total L &E 40400 CFF © 29800
Cahnge in Cash 4800
Beg Cash 0
End Cash 4800
}T invests Rs 30,000 cash to start a company, Fast Forward a consulting comapny.
}Company purchased supplies paying $2,500 cash.
}Purchased equipment for $26,000 cash
}Purchased supplies of $7,100 on credit.
}Provided consulting services to a customer
and received $4,200 cash right away.
}Paid rent of $1,000 and
salaries of $700 to employees.
}Provided consulting services of $1,600 and rents facilities for $300 to a customer for credit.
}Client in previous transaction pays $1,900 for consulting services.
}FastForward pays $900 as partial payment for supplies purchased in transaction 4.
}Dividends of $200 are paid to shareholders.
 Assets = Liabilities + Equity
Accounts Share Retained
Cash Acco. Rec. Supplies Equipment Payable Capital Earnings
1 $ 25,000 $ 25,000 F 1. Owners invested Rs.25,000 in cas
2 (500) (500) O 2. The month’s rent of Rs.500 was p
3 $ 8,000 8000 3. Equipment costing Rs.8,000 was b
4 -500 500 O 4. Rs.500 was paid for office supplie
5 $ (750) $ (750) O 5. Advertising expenses of Rs.750 w
6 (3,000) (3,000) O 6. Paid Rs.3,000 employee salaries i
7 2,000 8000 10,000 O 7. Earned travel commissions of Rs.1
8 -5000 -5000 I 8. Paid Rs.5,000 of the Rs.8,000 owe
9 -100 -100 9. Used Rs.100 of the office supplies
10 1000 -1000 10. Charged Rs.1,000 of miscellaneo
$ 17,250 $ 8,000 $ 400 $ 8,000 $ 4,000### $ 25,000 $ 4,650
s invested Rs.25,000 in cash to start the business. They received common stock.
nth’s rent of Rs.500 was paid in cash.
ent costing Rs.8,000 was bought on credit.
was paid for office supplies.
sing expenses of Rs.750 was paid for with cash.
.3,000 employee salaries in cash.
travel commissions of Rs.10,000 of which Rs.2,000 was received in cash.
.5,000 of the Rs.8,000 owed to the equipment supplier.
s.100 of the office supplies.
ed Rs.1,000 of miscellaneous expenses on the corporate credit card.