Balance Sheet for end of 2019 Assets Cash 77,250 Accounts Receivable (net of allowance of 7200) 237,884 Inventory 45,500 (1000 units at $45.50 each) Prepaid Insurance 1,600 Supplies 1,625 Total Current Assets 363,859 Property, Plant and Equipment, Net 177,500 Land 32,000 Total Assets 573,359 Liabilities Accounts Payable 94,552 Unearned Revenue 45,200 Interest Payable 2,100 Salaries Payable 6,600 Total Current Liabilities 148,452 Long Term Debt 246,100 Total Liabilities 394,552 Capital Stock 100,000 Retained Earnings 78,807 Total Liabilities and Stockholders Equity 573,359

Transactions for January of 2020 1/2/20 Paid salaries payable 1/3/20 Paid interest payable plus $3,000 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 $850 1/9/20 Received $2,500 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 credit (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 A count of inventory showed that 50 units were damaged such that they are worthless and will be thrown away

Journal Entries:

Date	Account Name	Debit	Credit

T-charts:

-Cash

-Accounts Receivable

-Property Plant and Equipment

-Accounts Payable

-Supplies

-Prepaid Insurance

-Allowance

-Inventory

-Land

-Interest Payable

-Unearned Revenue

-Wages Payable

-Long Term Debt

-Capital Stock

-Retained Earnings

-Dividends Paid

-Sales

-Utility Expense

-Interest Expense

-Bad Debt Expense

-Cost of Goods Sold

-Insurance Expense

-Wages Expense

-Supplies Expense