Events Cash Acct Rec Inventory Truck Equipment Land 9111000 10 11 70000 15 16 18-102000 19 119000 24 26 15 -75000 14 106000 17 115000 22 175000 Beginning Balances as of Dec 31, Year 1 Paid a $42,000 cash dividend previously declared for stockholders Paid wages payable accrued in previous month Acquired $150,000 by signing a note payable with a local bank Sold 5,000 shares of $5 par Common Stock for $110,000 Sold 2,000 shares of $40 par, 3% cumulative preferred stock for $120,000 Purchased a truck and piece of Equipment for $128,000. The truck has a market value of 65,000 and the equipment has a market value of 95,000. 15 Purchased 25,000 Units of Inventory on Account for $8.15 per unit 245 Sold 45,000 units at $24.50 on Account - Revenue COGS on sale of 45000 units Collect $570,000 on Account Paid $540,250 of Accounts Payable Purchased 70,000 Units of Inventory on Account for $8.50 per unit 245 Sold 75,000 units at $24.50 on Account Record COGS for Sales of 75,000 units on Account |Collect $1,472,500 on Account Paid $438,500 of Accounts Payable 9.35 Purchased 115,000 Units of Inventory on Account for $9.35 per unit 245 Sold 102,000 units at $24.50 Record COGS for Sale of 102,000 units Collect $735,000 on Account Paid $883,150 of Accounts Payable 75 Purchased 175,000 Units of Inventory on Account for $8.75 per unit Paid Advertising and Marketing Expenses of $130,000 Paid Fixed Operating Expenses of $275,708 Paid Wages of $1,235,000 Record Wages Payable of $215,000 $ [42,000.00) $ 150,000,00 $ 110,000.00 $ 120,000.00 $ (438,500.00) $ 2,499.000.00 $ 1,757,000.00 | $ 17,500.00 $ 328,000.00 $ $ Building $ 50,000.00 $250,000.00 -Accum Depr| Acct Payable $ 8,333.00 $ 418,000.00 $ 42,000.00 Div Payable Notes Payable | Wages Payable Common Stock $ 215,000.00 $ 200,000.00 APIC-CS $600,000.00 $ Preferred Stock 400,000.00 APIC-PS Retained Earnings Revenue $ 100,000.00 $ 419,167.00 $ $ (42,000.00) $ (42,000.00) Expense $ 42,000.00 Net Income Type Amount FA $ (42,000.00) $ (215,000.00) $ $ 215,000.00) $ [215,000.00) $ 215,000.00 $ (215,000.00) $ $ 150,000.00 $ $ 25,000.00 $ 85,000.00 $ 85,000.00 $ 85,000.00 FA $ 85,000.00 $ $ 80,000.00 $ 40,000.00 $ $ [128,000.00) $ $ 52,000.00 $ 76,000.00 $ 40,000.00 $ 40,000.00 [128,000.00) $ 40,000.00 $ 128,000.00 $ (128,000.00) $ 203,750.00 203,750.00 $ 1,102,500.00 $ 1,102,500.00 $ 1,102,500.00 $ 1,102,500.00 $ (360,600.00) $ 360,600.00 $ (360,600.00) $ 570,000.00 $ (570,000.00) $ $ $ (540,250.00) $ $ (540,250.00) $ 570,000.00 $ 570,000.00 [540,250.00) $ 570,000.00 $ 540,250.00 $ (540,250.00) $ 595,000.00 $ 595,000.00 $ 1,837,500.00 $ (630,150.00) $1,472,500.00 $ (1,472,500.00) $ $ 1,472,500.00 $ 1,472,500.00 $ 1,472,500.00 $ $1,075,250.00 $ (438,500.00) $ 1,075,250.00 $ [438,500.00) 438,500.00 $ (438,500.00) $ 2,499,000.00 $2,499,000.00 $ 2,499,000.00 $ (940,100.00) $ 940,100.00 $ (940,100.00) $ 735,000.00 $ (735,000.00) $ $ 735,000.00 $ 735,000.00 $ 735,000.00 $ (883,150.00) $ $1,531,250.00 $ (883,150.00) $ 1,531,250.00 $ 883,150.00) $ 883,150.00 $ (883,150.00) $ (130,000.00) $ $ [130,000.00) $ 130,000.00 $ (130,000.00) $ (275,708.00) $ $ [275,708.00) $ $ (1,235,000.00) $ $ [1,235,000.00) 275,708.00 $1,235,000.00 $ (275,708.00) $ (1,235,000.00) $ 27 Paid Product Line Research & Development Expenses of $450,000 $ (450,000.00) $ Principle & Interest on Note Payable $ (24,000.00) $ $ 215,000.00 $ (15,000.00) $ $ [450,000,00 (24,000.00) 450,000.00 39,000.00 $ (450,000.00) $ (39,000.00) Year 1 Depreciation on Truck $ 30 Year 1 Depreciation on Equipment $ 31 Year 2 Depreciation on Building $ $ 8,000.00 $ 5,714.29 $ 6,400.00 $ $ $ Common Stock Dividend Declaration Preferred Stock Dividend Declaration Balance at December 31, Yr 2 $ $ $ 90,000.00 $ (90,000.00 $ 90,000.00 $ $ 14,400.00 $ (14,400.00) $ 14,400.00 $ (90,000.00) (14,400.00) $ 3,051,892.00 $ 180,000.00 $ 1,802,400.00 $ 52,000.00 $ 76,000.00 $ 50,000.00 $250,000.00 $ 28,447.29 $ 1,961,350.00 $ 104,400.00 $ 135,000.00 $ 215,000.00 $ 225,000.00 $685,000.00 $ 480,000.00 $ 140,000.00 $ 2,457,159.00 $ 6,504,000.00 $ 5,781,708.00 $ Net Change in Cash $ 722,292.00