Cash Accounts Receivable Supplies Prepaid Insurance Accounts Payable Revenue Course learning Objectives: Prepare financial statements, Recognize revenue, Calculate adjusting entries Capital, Peterson Transactions 1. Peterson invests 6,000 into company 2. Co. borrows cash from bank, 15,000 3. Peterson invests a truck into the co., 6,000 4. Co. buys building for 7,000 5, Co. buys supplies, 1,800 6. Co. buys insurance on account, 1,000 7. Co. buys inventory, 3,900 Drawing, Peterson 8. Cash sale, 4,100, inventory cost 1,400 9. Co. pays off A/P, 500 10. Co. pays for rent (expense), 1,200 11. Owner withdraws cash, 400 Truck Building Inventory Bank Loan Expense Adjusting Entries 12. Prepaid insurance should have a balance of 450 13. Accrued bank loan interest expense, 350 (use A/P) 14. Expired Supplies, 1,010 General Journal Debit Credit Adjusted Trial Balance Peterson Co. Income Statement Peterson Co. Balance Sheet 12/31/2001 Cash Cash AIR Supplies Prepaid Insurance Truck Building Inventory A/P Bank Loan Revenue Expense Capital, Peterson Drawing, Peterson Totals Revenues Expenses Net Income A/R Supplies Prepaid Ins Truck Building Inventory Total Assets Peterson Co. State. Of Owner's Equity Beg. Bal. Investments Net Income Withdraws End. Balance A/P Bank Loan Total Liabilities Post-Closing Trial Balance Cap. Peterson Total Liab & Equity Cash A/R Supplies Prepaid Insurance Truck Building Inventory A/P Bank Loan Revenue Expense Capital, Peterson Drawing, Peterson Totals EE