Warner Bros Balance sheet Nov 1.

Assets Cash $2,200.00  

Accounts Receivable $67,000.00  
Land $49,000.00  
Building $320,000.00
Equipment $175,000.00  
Furniture and fixtures $15,000.00  
Bottle Inventory $195,000.00  
Total Assets $1,264,200.00
Liabilities and Owner's
 
Equity
   
Liabilities Accounts
$85,000.00  
payable
Notes Payable $60,000.00  
Bonds Payable $45,000.00  
Wages Payable $55,000.00  
Bottle Processing Patent
$25,000.00  
Fee's Payable
Taxes payable $58,000.00  
Total Liabilities $328,000.00
Owner's Equity - Share
$936,200.00
capital, Nov 30
Total Liabilities and
$1,264,200.00
Owner's Equity
Analysis of transaction in November

1. Account receivable for $16,000 was collected. Basic analysis: decreases

accounts receivables and increase cash.
Debit/credit analysis: credit decreases in accounts receivable and debit increase
in cash $16,000

2. Wages due of $15,000 were paid out in cash.

The basic analysis is that decreases wages payable and decrease cash
Debit/credit analysis: Debits decreased in wages payable, and credits decreases
in cash $15,000

3. $175,000 in equipment was purchased on credit ($100 was due on delivery and
was paid in cash.)
Basic analysis: increases equipment and accounts payable and decreases cash.
Debit/credit analysis: debit increases in equipment $175,000; credits increase in
account payable $174,900, credit increases in cash $100

4. Their land was appraised and found to be worth of $560,000 does not require an
entry based on the monetary unit assumption because it was appraisal, so it
does not result in transaction. Also, based on historical cost principle, ASSETS
must be recorded at their original cost, regardless of the current perceived fair
market value

5. A stakeholder Bruce Wayne provided the company with equipment and in return
received 65,000 in shares

Basic analysis: increases equipment and increases share capital

Debit/credit analysis: debit increases in equipment and credit increases in share
capital $65,000

6. $300,0000 in share was retired for bonds payable on December 15, 2025.
Basic Analysis: increases bond payable and decreases share capital.
Debit/credit analysis: credit increases in bond payable and debit decreases in
share capital $300,000.

7. Bottle processing patent fees were paid completely on credit.

Basic analysis: decreases bottle processing patent fee’s payable and increases
accounts payable
Debit /credit analysis: debit decreases in the bottle processing patent fee’s
payable, and credits increase accounts payable $25,000

8. $175,000 in old bottles was returned to former supplier for cash value.
Basic analysis: decreases bottle inventory and increases cash.
 Debit /credit analysis: credit decrease in bottle inventory and debit increases in
cash $175,000.

9. Bank loan for $65,000 was taken out. The amount was kept in cash over the end of the
month.
Basic analysis: Increase accounts payable and increase cash.
Debit /credit analysis: Credits increase in account payable, and debit increase in cash
$65,000.

Analysis of transaction in November

T - Accounts
Account receivable
Opening Balance $67,000.00 Cash $16,000.00
Closing Balance $51,000.00

Cash Account
Opening Balance $2,200.00 Wages $15,000.00
Accounts receivable $16,000.00 Equipment $100.00
Old booties $175,000.00 Bottles processing fees $25,000.00
Bank loan $65,000.00 Closing balance $218,100.00

Land Account
Opening Balance $490,000.00
Revaluation reserve $70,000.00 Closing balance $560,000.00

Share Capital Account

Opening Balance $936,200.00

 Equipment $65,000.00
Closing Balance $1,301,200 Bonds Payable $300,000.00

Bottle Inventory Account

Opening Balance $195,000.00 Cash $175,000.00
Closing Balance $20,000.00

Bank loan account

Closing Balance $65,000.00 Opening Balance $0.00
Cash $65,000.00

Equipment Account
Opening Balance $175,000.00
Cash $100.00
Share capital $65,000.00
Closing Balance $240,100.00

Bonds Payable Account

Share capital $300,000.00 Opening Balance $45,000.00
Loss on redemption
of bonds payable $255,000.00

Closing Balance sheet

Assets Amount $
Current Assets $51,000.00
Bottle Inventory $20,000.00
Cash $218,100.00 $289,100.00
Fixed Assets
Land $560,000.00
Building $320,000.00
Equipment $240,100.00
Furniture and fixtures $15,000.00 $1,135,100.00
Total $1,424,200.00

Liabilities
Short Term liabilities
Account Payable $85,000.00
Notes Payable $60,000.00
Wages Payable $40,000.00
Bottle Processing Patent
Fee's Payable $0.00 $243,000.00
Taxes payable $58,000.00
 

Long term liability

Bank loan $65,000.00
Bonds Payable $0.00 $65,000.00

Share capital
Revaluation reserve $70,000.00
$-
Loss on redemption of bonds 255,000.00 $1,116,200.00

TOTAL $1,424,200.00