A B 3 E F G H J K L M Comparative Balance Sheets N Income Statement P R S 6 4 5 Month ending February 28 7 Assets 8 9 Cash 10 Accounts Receivable 11 Inventory 12 Prepaid Rent 1/31/2001 2/28/2001 Change For the month of February Revenues 11,000 7,600 23,000 12,000 Sales Revenue 48,000 17,000 9,400 10,000 5,000 (5,000) Expenses 2,500 2,000 (500) 13 Property, Plant & Equipment 45,000 45,000 0 Cost of Goods Sold 21,000 14 Accumulated Depreciation (675) (1,350) (675) Operating Expenses 9,880 15 Depreciation Expense 675 16 Total Assets 75,425 90,650 15,225 Rent Expense 500 17 Interest Expense 445 18 Tax Expense 6,200 19 Liabilities & Shareowners' Equity 20 Total Expenses (38,700) 21 Advances from Customers (Deferred Revenue) 800 0 22 Accounts Payable Merchandise 5,100 4,000 (800) (1,100) 23 Accounts Payable Services 1,275 3,456 2,181 24 Interest Payable 450 445 (5) 25 Tax Payable 3,200 9,400 6,200 26 Current Portion - Long Term Debt 6,373 5,822 (551) 27 Long Term Debt 38,627 38,627 0 28 Common Stock 13,000 13,000 0 29 Retained Earnings 6,600 15,900 9,300 30 31 Total Liabilities & Shareowners' Equity 75,425 90,650 15,225 32 33 $0 $0 $0 34 Notes to the Consolidated Financial Statements: 35 1 The MixMax Company did not issue common stock during January 20x1 Net Income Thought Questions For what accounting event would you debit (decrease) the account Advances from Customers (Deferred Revenue)? 1 What is the minimum amount that the Advances from Customers account could have been debited during the month of February 2001? 2 What is the maximum amount that the Advances from Customers account could have been debited during the month of February 2001? 3 Required: a Prepare journal entries for all of the events that occurred during February 2001. b Prepare a statement of cash receipts and disbursements for February 2001. 9,300 36