ORIGINAL - 04 JANUARY

ASSETS
Cash 33250
Inventory 4500

37750

1
ASSETS
Cash 33250
Inventory 9500

42750

2
ASSETS
Cash 35550
Inventory 8000

43550

3
ASSETS
Cash 35550
Inventory 6300
Trade Receivable 2620

44470

4
ASSETS
Cash 34326
Inventory 6300
Trade Receivable 2620
Prepaid Insurance 1190

44436

5
ASSETS
Cash 28326
Inventory 6300
Trade Receivable 2620
Prepaid Insurance 1190
Land 24000

62436

Boook Value
25936

NO ENTRY

8
ASSETS
Cash 30326
Inventory 6300
Trade Receivable 2620
Prepaid Insurance 1190
Land 12000

52436
 9
ASSETS
Cash 30326
Inventory 5550
Trade Receivable 2620
Prepaid Insurance 1190
Land 12000

51686

10. The Identical plot is sold at the appreciation of $ 2000. However, t

plot. Hence, No Entry. Yet, if Music Mart Inc. wants to value its Non-C
Value, it may consider the Land at $ 1400

11
ASSETS
Cash 24326
Inventory 5550
Trade Receivable 2620
Prepaid Insurance 1190
Land 12000

45686

12
No Entry since the transaction in Stock of the Company does not affect t

13
ASSETS
Cash 25636
Inventory 4700
Trade Receivable 2620
Prepaid Insurance 1190
Land 12000
46146
 LIABILITIES AND OWNERS' EQUITY
Notes Payable 12500
Paid in Capital 25000
Retained Earning 250

37750

LIABILITIES AND OWNERS' EQUITY

Notes Payable 12500
Paid in Capital 25000
Retained Earning 250
Trade Payable 5000

42750

LIABILITIES AND OWNERS' EQUITY

Notes Payable 12500
Paid in Capital 25000
Retained Earning 1050
Trade Payable 5000

43550

LIABILITIES AND OWNERS' EQUITY

Notes Payable 12500
Paid in Capital 25000
Retained Earning 1970
Trade Payable 5000

44470

LIABILITIES AND OWNERS' EQUITY

Notes Payable 12500
Paid in Capital 25000 FIRE INSURANCE 1224 EXPENSES FOR OBTAINING INS
Retained Earning 1936 (FOR 3 YEARS) Incomes/Profits increase retain
Trade Payable 5000 EXPENSE FOR THE PE 34 Expenses/Losses reduce Retain
PREPAID EXPENSES 1190
44436

LIABILITIES AND OWNERS' EQUITY

Notes Payable 12500
Paid in Capital 25000
Retained Earning 1936
Trade Payable 5000
Land Mortgage 18000

62436

UNREALIZED
Offered Price Goodwill
33000 7064

LIABILITIES AND OWNERS' EQUITY

Notes Payable 12500
Paid in Capital 25000
Retained Earning 936
Trade Payable 5000
Land Mortgage 9000

52436
 LIABILITIES AND OWNERS' EQUITY
Notes Payable 12500
Paid in Capital 25000
Retained Earning 186
Trade Payable 5000
Land Mortgage 9000

51686

preciation of $ 2000. However, there is no transaction for our

art Inc. wants to value its Non-Current Asset (i.e. land) for Fair
may consider the Land at $ 14000.

LIABILITIES AND OWNERS' EQUITY

Notes Payable 6500
Paid in Capital 25000
Retained Earning 186
Trade Payable 5000
Land Mortgage 9000

45686

f the Company does not affect the Company, but Owners.

LIABILITIES AND OWNERS' EQUITY

Notes Payable 6500
Paid in Capital 25000
Retained Earning 646
Trade Payable 5000
Land Mortgage 9000
46146
EXPENSES FOR OBTAINING INSURANCE SERVICE, I.E. REIMBURSEMENT OF LOSS IN CASE OF FIRE
Incomes/Profits increase retained earnings
Expenses/Losses reduce Retained Earnings
 ASSETS
Particulars Jun-01
Accounts receivable 21798
Equipment 7956
Building 429000
Cash 34983
Land 89700
Inventory 29835
Notes Receivable 11700
Other Non Current Assets 4857
Prepaid insurance 3150
Supplies on hand 5559

638538

1. The company made good profits in the Month of June. Ms. Maynard earned
38% p.a. returns on her Investment

2. The Cash has increased substantially and so have Notes and Accounts Payable. I
it might be a good idea to settle some of these notes and accounts, using availabl
such a discount would be additional income.

It was decided to settle dues from the owner against some of the profits made dur
Retained Earnings (Opening) 221511
Add: Profits for the year 19635
Less: Owners' Receivable settled 11700
Retained Earnings (Closing) 229446

Capital Stock + Retained Earnings = $619446. So Shareholders' stock is worth tha

loans, the market value of t
 LIABILITIES AND EQUITY
Jun-30 Particulars Jun-01 Jun-30
26505 Accounts Payable 8517 21315
30732 Accrued wages payable 1974 2202
427050 Bank notes payable 8385 29250
66660 Capital Stock 390000 390000
89700 Retained Earnings 221511 229446
26520 Other noncurrent liabilities 2451 2451
0 Taxes payable 5700 7224
5265
2826
6630

681888 638538 681888

Per Month Per Year

nth of June. Ms. Maynard earned 3.21% 38.53%
Investment

have Notes and Accounts Payable. If there is discount available, then

e notes and accounts, using available cash. Cash is unproductive but
ount would be additional income.

gainst some of the profits made during the month. Hence, Retained Earnings increased by only $7935

. So Shareholders' stock is worth that amount,as per Book Value. However, given her excellent profitability and low
loans, the market value of the stock might be higher.
7935 11700
 A L L L
Bank Capital Stock Bond Pyables Depreciation
Capital Stock
Issued 100000 100000
Bond Payable
Refunded with
Capital Stock

25000 -25000
Depreciation 8500
Inventory -15900
Inventory on
Credit

Amount
Received 3500
Divident Paid -3000
84600 125000 -25000 8500
 Balance Sheet

Assets Liabilities

Cash 100000
 A A L A
Plant & Machinery Inventory Acc. Payables Receivables

-8500
15900

9400 9400
-4500 7200

-3500

-8500 20800 9400 3700

 ASSETS LIABILITIES AND OWNERS' EQUITY
1-Jun Cash 50000 Carson's Equity 50000
Inventory 50000 Legatt's E quity 50000

100000 100000

ASSETS LIABILITIES AND OWNERS' EQUITY

30-Jun Cash 22100 Carson's Equity 43800
Inventory 58500 Legatt's E quity 46300
Land 25000 Retained Earnings 15500
Building 50000 Borrowings 50000

155600 155600

Q-B Carson's Capital A/C 51550

Legatt's Capital A/c 54050
Total 105600
 ASSETS LIABILITIES AND OWNERS' EQUITY
Cash 25000 Notes Payable 20000
Inventory 50000 Capital 55000

75000 75000

ASSETS LIABILITIES AND OWNERS' EQUITY

Cash 37000 Notes Payable 20000
Inventory 43000 Capital 55000
Retained Ear 5000

80000 80000

Jan 6 no entry

8-Jan ASSETS LIABILITIES AND OWNERS' EQUITY

Cash 37000 Notes Payable 20000
Inventory 50000 Capital 55000
Retained Ear 5000
Accounts Payable 7000

87000 87000

11-Jan ASSETS LIABILITIES AND OWNERS' EQUITY

Cash 39500 Notes Payable 20000
Inventory 48500 Capital 55000
Retained Ear 6000
Accounts Payable 7000
 88000 88000

16-Jan ASSETS LIABILITIES AND OWNERS' EQUITY

Cash 39500 Notes Payable 20000
Inventory 46500 Capital 55000
Accounts R 3400 Retained Ear 7400
Accounts Payable 7000

89400 89400

26-Jan ASSETS LIABILITIES AND OWNERS' EQUITY

Cash 36900 Notes Payable 20000
Inventory 46500 Capital 55000
Accounts R 3400 Retained Ear 4800
Accounts Payable 7000

86800 86800

29-Jan ASSETS LIABILITIES AND OWNERS' EQUITY

Cash 36900 Notes Payable 20000
Inventory 46500 Capital 55000
Accounts R 3400 Retained Ear 4800
Accounts Payable 7000

86800 86800

31-Jan ASSETS LIABILITIES AND OWNERS' EQUITY

Cash 34100 Notes Payable 20000 1 month in 116.6667 2683.333
Inventory 46500 Capital 55000
Accounts R 3400 Retained Ear 4683.4
prepaid in 2683.3 Accounts Payable 7000

86683.3 86683.4
current assets current liability
accounts receivable 7000 accounts payable 5000
cash 2000 bonds payable 2000
marketable securities 3500 wages payable 1500
12500 8500

current ratio= 1.470588

 ASSETS LIABILITIES AND OWNERS' EQUITY

1-Nov ASSETS LIABILITIES AND OWNERS' EQUITY

Cash 48000 Mr Henry's Equi 16000
Mrs Henry's equ 16000
Sandra's Equity 16000

48000 48000

ASSETS LIABILITIES AND OWNERS' EQUITY

Cash 34000 Mr Henry's Equi 16000
Buyout 56000 Mrs Henry's equ 16000
Sandra's Equity 16000
Borrowings 21000

90000 69000