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

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