CLASSIC UPHOLSTERY SHOP - PLEASE ANALYZE TRANSACTIONS SEQUENTIALLY AS THEY APPEAR IN STORY. PLEASE USE TRANSACTION NO.

0 FOR CAPITAL INFUSION

ASSET OPERATING OWNERS' EQUITY

INCOME
(CASH & OTHER (REVENUE) BRIEF (EXTERNAL) or NET WORTH or BRIEF BRIEF
TRANSACTION DETAILS: BRIEF DESCRIPTION: (REVENUE)
BANK ASSETS EXPENSES & DESCRIPTION: LIABILITIES CAPITAL or DESCRIPTION: DESCRIPTION:
& GAINS
BALANCE) LOSSES COMMON STOCK

0 Capital Infusion $ 16,000 Cash / Bank increases $ 16,000 Capital (Owner's Equity)
1 Advertising (Consumers) -$ 6,000 Cash / Bank reduces $ 2,000 Expensed
$ 4,000 Capitalized (Deferred Revenue Exp)
2 Advert. (Int. Decorators) -$ 3,000 Cash / Bank reduces $ 1,000 Expensed
$ 2,000 Capitalized (Deferred Revenue Exp)
3A Indl. Sewing machine $ 4,000 Fixed Asset goes up
-$ 4,000 Cash / Bank reduces
3B Other tools & equipment $ 3,000 Fixed Asset goes up
-$ 3,000 Cash / Bank reduces
4 Cash Sales $ 80,000 Cash / Bank increases 80000 Cash Sales
5 Receivables $ 2,500 Current Asset goes up 2500 Credit Sales
6 Purchase of 'Upholstery Fabric' -$ 40,000 Cash / Bank reduces
$ 40,000 Current Asset goes up
7 Purchase of 'Other Supplies' -$ 10,000 Cash / Bank reduces
$ 10,000 Current Asset goes up
8 Wages (Part time assistant) -$ 9,500 Cash / Bank reduces $ 9,500 Wage Expense
9 Rent -$ 4,800 Cash / Bank reduces $ 4,800 Rent Expense
10 Insurance $ 1,600 Capitalized (Curr. Asset) $ 1,600 Ins. Expense
-$ 3,200 Cash / Bank reduces
11 Utilities -$ 2,500 Cash / Bank reduces $ 2,500 Utilities Expense
12 Miscellaneous Expenses -$ 1,700 Cash / Bank reduces $ 1,700 Misc. Expense
13 Payales for Utilities $ ,320 Utilities Expense 320 Utility Exps. Payable
14 COGS (Upholstery Fabric) -$ 26,000 Inventory reduces $ 26,000 COGS Expense
15 COGS (Other Supplies) -$ 7,700 Inventory reduces $ 7,700 COGS Expense
16 Depreciation (Sewing Machine) -$ ,800 BV of Fixed Asset reduces $ ,800 Deprn. Expense
17 Depreciation (Tools & Equipmt) -$ 1,000 BV of Fixed Asset reduces $ 1,000 Deprn. Expense
18 Tax $ 4,716 Tax Expense 4716 Provision for Tax
$ 63,636 TOTAL OPERATING (REVENUE) EXPS.
$ 18,864 PROFIT AFTER TAX (PAT)
$ 82,500 $ 82,500 TOTAL INCOME

Suresh G. Lalwani - Managerial Accounting Page 1 of 1