Figures in thousands
| Cash | Acc Rec | Inventory | Other Curr | Net LT Assets | Total Assets | Wage Payable | Acc Payable | Loan Payable | Taxes, Other Liab | Owner's Equity | Ret. Earnings | Total Equity | Total Liab+Equiuty |
| 280 | 150 | 440 | 0.5 | 64 | 794.5 | 10 | 230 | 145 | 40 | 200 | 169.5 | 369.5 | 794.5 |
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1. $40,000 is repaid on the Bank loan. Mo. loan interest expense = $1,000, paid cash in current period. 2. Co buys extra $250,000 inventory, pays $70,000 cash, balance on Supplier credit, due in Mo. 12 3. $110,000 cash is collected in the current Month-11 period on Accts Receivable carried over from Mo.10 4. Co buys $450,000 more inventory, pays $150,000 cash now, balance due to suppliers next month. Pays cash in Mo. 11 against all of starting balance owed in Accts Payable from Mo-10 Accts Payable. 5. Co sells $550,000 of inventory to customers for $850,000 net. $440,000 were cash sales, balance of sales on credit due from customers in 30 days in next month's accounting period. 6. Building monthly rent paid cash in current period is $12,000 monthly going forward 7. Wage expense = $70,000, $40,000 in cash, balance paid next period. Mo-10 Wage Payable is paid cash now. 8. Office supplies and utilities expense together totaled $50,000, paid cash in the current period 9. Depreciation expense is $854 per month ($82,000 div. by 8 = $10,250 annual div. by 12 = $854 mo.) 10. Amortized monthly insurance policies expense of $350 recorded in the current period 11. Another $95,000 is received in Mo.11 from accts rec. owed by customers who bought on credit in month 11. 12. Dividends = $20,000 paid cash to Owner in Mo.11 Month-11 Retained Earns = Mo. 11 N.Inc - 20,000 Div 13. Co owes $49,900 income tax on Mo.11 pre-tax profits, pays period 12. Co pays Mo-10 Tax payable. WW 1. $40,000 is repaid on the Bank loan. Mo. loan interest expense = $1,000, paid cash in current period. 2. Co buys extra $250,000 inventory, pays $70,000 cash, balance on Supplier credit, due in Mo. 12 3. $110,000 cash is collected in the current Month-11 period on Accts Receivable carried over from Mo.10 4. Co buys $450,000 more inventory, pays $150,000 cash now, balance due to suppliers next month. Pays cash in Mo. 11 against all of starting balance owed in Accts Payable from Mo-10 Accts Payable. 5. Co sells $550,000 of inventory to customers for $850,000 net. $440,000 were cash sales, balance of sales on credit due from customers in 30 days in next month's accounting period. 6. Building monthly rent paid cash in current period is $12,000 monthly going forward 7. Wage expense = $70,000, $40,000 in cash, balance paid next period. Mo-10 Wage Payable is paid cash now. 8. Office supplies and utilities expense together totaled $50,000, paid cash in the current period 9. Depreciation expense is $854 per month ($82,000 div. by 8 = $10,250 annual div. by 12 = $854 mo.) 10. Amortized monthly insurance policies expense of $350 recorded in the current period 11. Another $95,000 is received in Mo.11 from accts rec. owed by customers who bought on credit in month 11. 12. Dividends = $20,000 paid cash to Owner in Mo.11 Month-11 Retained Earns = Mo. 11 N.Inc - 20,000 Div 13. Co owes $49,900 income tax on Mo.11 pre-tax profits, pays period 12. Co pays Mo-10 Tax payable. WW
