1 Balance Sheet for end of 2019 12 2 Assets 3 Cash 4 Accounts Receivable (net of allowance of 7200) 5 Inventory 6 Prepaid Insurance 76,850 237,884 45,500 (1000 units at $45.50 each) 2,000 Transactions for January of 2020 1/2/20 Paid salaries payable 7 Supplies 1,625 8 Total Current Assets 363,859 9 10 Property, Plant and Equipment, Net 177,500 11 Land 32,000 12 13 Total Assets 573,359 14 15 Liabilities 16 Accounts Payable 17 Unearned Revenue 1/3/20 Paid interest payable plus $4,000 toward long term debt 1/3/20 Purchased inventory (500 units at $46) on credit 1/4/20 Paid shipping on inventory of $250 1/6/20 Purchased supplies on credit for $700 23000 94,552 45,200 2,100 6,600 1/9/20 Received $3,000 from customers for products to deliver in March 1/10/20 Sold 600 units on credit with a sales price of $105 (assume perpetual LIFO) 1/15/20 Purchased inventory on account (700 units at $47) 1/20/20 Paid $41,600 on accounts payable 1/21/20 Collected $121,350 in cash from customers in payment for earlier sales 1/22/20 Wrote off accounts receivable for $815 1/25/20 Sold 200 units on credit with a sales price of $105 (still perpetual LIFO) 1/26/20 Paid wages to employees for work done in January $31,000 1/26/20 Received utility bill for $7,200 for utilities used in January that will be paid in February 1/31/20 Delivered 100 units of product to customers that they paid 10,000 for in 2019 (unearned revenue) 1/31/20 Counted supplies and found $1,240 remaining 1/31/20 Employees worked and earned $4,700 in January that will not be paid until February 1/31/20 Interest at 12% per year on the long term debt (new balance) has not been paid 1/31/20 The prepaid insurance will last 4 months into 2020 before a new policy will be required 1/31/20 The allowance for bad debts is estimated at 4% of total accounts receivable 1/31/20 Acount of inventory showed that 50 units were damaged such that they are worthless and will be thrown away 18 Interest Payable 19 Salaries Payable 20 Total Current Liabilities 148,452 21 22 Long Term Debt 23 246,100 24 Total Liabilities 25 394,552 26 Capital Stock 100,000 27 Retained Earnings 78,807 28 29 Total Liabilities and Stockholders Equity 573,359 30