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1 1/2/14 Deposit $45,000 into business checking account to open business 2 1/2/14 Borrow $30,000 from bank against line of credit at 0.085 annual rate

1

1/2/14

Deposit $45,000 into business checking account to open business

2

1/2/14

Borrow $30,000 from bank against line of credit at 0.085 annual rate accruing monthly over 12 months

3

1/2/14

Purchase equipment for $125,000 depreciate to $12,000 salvage value over 5 years DDB in exchange for note payable , @ 0.07 annual rate, amortized monthly over 60 months. Contract calls for balloon payment of $30,000

at end of 60th month.

4

1/2/14

Record cash payment of 12 months rent $12,000

5

1/3/14

Purchase $1,500 supplies on account, $600 remain at month end

6

1/4/14

Purchase inventory on account,, 600units @ $48

7

1/8/14

For prompt payment on transaction # 6 above, which included a discount option of 2/10, net 30, settle 18,000 within terms

8

1/10/14

Sell 275 units $90 per unit on account

9

1/12/14

Customer, transaction # 8 , sent payment of 14,000 within terms 2/10, net 30

10

1/14/14

Customer actually returned 15 units for full credit

11

1/15/14

Purchased 325 units of inventory @ $55 on account

12

1/15/14

To record salaries paid on 1-15-14 (salaries paid on 1st and 15th) $5,500

13

1/17/14

Sell 360 units of inventory on account @ $100 per unit, using FIFO

14

1/18/14

Record contract to deliver 200 units of inventory @ 97 per unit secured by a cash deposit of 10,000, 100 units were actually delivered during the month

Bookkeeper recorded all 19,400 as revenue

15

1/18/14

To record freight-out charges paid in cash in the amount of 346.80

16

1/28/14

To record utilities expense for January '14 to be paid on 2/10/16 $575

17

1/30/14

17. Management expects 7 additional returns on January sales in the month of February

18

1/30/14

18. Management forecasts bad debt expense by aging schedule below:

19

1/30/14

19. Managements considers effect of market changes on inventory as shown below:

20

1/30/14

Pay dividend to leave 7,000 in retained earnings

21

1/30/14

21. Record $100,000 construction expense on account, estimated completion costs $500,000, Contract value $750,000

Billings on construction in progress, $85,000 Collected, $70,000

on billings

Replacement

Selling

Completion

NRV

Normal profit

Cost

Cost

Price

Costs

Ceiling

Margin

55

55

85

48

7

Aging

Balance in AR

-

% Bad

Bad

Less than 30

0.65

0.02

30 -60

0.20

0.07

60 -90

0.10

0.15

90+

0.05

0.35

F. Financial Statements: January 2014
Income Statement
Construction Revenue
Sales
Sales Discounts
Sales Returns, Allowances
Net Sales
C.O.G.S.
Gross Margin
Supplies Expense
Depreciation
Interest Expense
Salaries expense
Rent expense
Utilities expense
Bad debt expense
LCM Adjustment
Freight out
Net Income
Balance Sheet
Cash Accounts Payable
Accounts Receivable Line of credit
Allowance for Sales Returns Unearned Revenue
Allowance for Doubtful Accts Salaries payable
Net Receivables Billings on Construction
Construction in Progress Note Payable
Prepaid rent Paid -in Capital
Supplies Retained Earnings
Inventory
Equipment
A.D.

Total

Cash Flows
Net
Dpr
Accts Rec
Allowance Sls
Allowance bd
Constr in Prog
Prepaid
Supplies
Inventory
Accts payable
Unearned
Salaries payable
Billings on Const
Opr

We got 24 hours from now

Just Fill the last 3 tables (cash flow, incom statement, balance sheet)

the 1500 is the total cost of supplies it is not the # of units

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