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Current Assets
Cash 671,344
A/R 988,257
Less: Allowance for Doubtful Accounts 29648 958,609
US Treasury Secuirties at Cost 274060
Inventories 1734405
Total Current Assets 3,638,418
Other Assets
Investments 412294
Land 186563
Building 2405259
Less: Accumulated Depreciation 663379 1741880
Factory Machinery 3425585
Less: Accumulated Depreciation 1642358 1783227
Furniture and Fixtures 56484
Less: Accumulated Depreciation 40400 16084
Automotive Equipment 58298
Less: Accumulated Depreciation 37156 21142
Office Machines 42534
Less: Accumulated Depreciation 28005 14529
Tools 61294
Patent 56250
Prepaid Expenses 100190 |^
Total Assets 8,031,871
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Current Liabilities
A/P 510,000
Taxes Payable 709354
Accrued Salaries, Wages, and Interest 141,478
LT Debt, Due within one year 69300
Total Current Liabilities 1,430,132
Noncurrent Liabilities
LT Debt 1247368
Shareholders Equity
Common Stock 2503275
Retianed Earnings 2851096
Total Shareholders' Equity 5354371
Total Liabilities and Shareholder's Equity 8,031,871 |è
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Land $186,563 $186,563
Building 2,405,259 $711,484 1,693,775
Factory machinery 3,394,352 1,954,426 1,439,926
Furniture and fixtures 55,994 45,604 10,390
Automotive equipment 49,944 41,965 7,979
Office machines 41,507 31,129 10,378
Tools 53,444 53,444
Patent 45,000 45,000
Total $6,232,063 $2,776,108 $3,455,955
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Cash $395,868 Common stock $400,000
Other current assets $251,790 Retained earnings $358,648
Total current assets $647,658
Property and equipment
Land $34,034
Buildings $350,064
Less: Accumulated depreciation $199,056
Net value $151,008
Equipment $265,093
Less: Accumulated depreciation $178,922
Net value $86,171
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Accumulated Depreciation (bldgs.) 199,056
Loss on Sale of Fixed Assets 35,182
Land 34,034
Buildings 350,064
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Accumulated Depreciation (eqpt.) 40,890
Equipment 73,645
Gain on Sale of Fixed Assets 2,445

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Cash (possibly other items) 111,947

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Cash 140,000
Land 21,235
Cash 21,235
Land 13,950
Cash 13,950

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Equipment (new) (20,830 + 6,800) 27,630
Accumulated Depreciation (old) 5,200
Cash 20,830
Equipment (old) 12,000
This is the entry when equipment traded in was similar, then the journal
entry is constructed so that no gain or loss on disposal is recorded



Equipment (new) (20,830 + 6,050) 26,880
Accumulated Depreciation (old) 5,200
Loss on Sale of Fixed Assets 750
Cash 20,830
Equipment (old) 12,000
This is the entry is when assumed that the trade-in was not similar
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Cash 136,000
Mortgage Payable 425,000
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Maintenance (or Moving) Expense 3,220
Cash 3,220
Moving Expense (or Deprec. Expense) 660
Equipment (or Accum. Deprec.) 660
The repair of the damage during the move has not improved the
equipment so as to constitute a betterment; thus it is expensed
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Current assets: Current liabilities $160,223
Cash $121,912 Long-term liabilities 425,000
Other current assets 251,790 Common stock 400,000
Total current Assets 373,702 Retained earnings 310,857
Plant and equipment:
Land 175,185
Buildings $561,000
Less accumulated Depreciation 0 561,000
Equipment 319,025
Less: accumulated depreciation 132,832 186,193
Total assets $1,296,080 Total liabilities and owners¶ equity $1,296,080
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Purchase price of new furnace 13,000
Less: Trade-in allowance -3000
Less: Discount for cash -500
9,500
Value of old furnace 3000
Total assets paid 12,500
Freight charges for delivery 500
Installation costs 2000
Training costs for employees 1000
Total cost 16,000
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Less: Trade-in allowance -3000
Less: Discount for cash -500
9,500
Value of old furnace 3000
Total assets paid 12,500
Freight charges for delivery 500
Installation costs 2000
Training costs for employees 1000
Total cost 16,000
Less: Salvage value -6000
Depreciable cost 10,000
Estiamted life: 5 years
Expected metal melt: 250,000 pounds
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2 45,000 2,000 1800
3 50,000 2,000 2000
4 55,000 2,000 2200
5 60,000 2,000 2400 r2
Total 250,000 10,000 10,000
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