Pago

Thc palo-Alto Company started its operations during the 20th century. Many years later, the balance sheet for December 31, 2012, showed the following account balances (there were no other accounts listed): paid in capital (OE) 500. Loan from bank (L) 28. Prepaid advertising (A) 10, PP&E (A) 410. Interest receivable (A) 5, Cash (A) 618, Wages payable (L) 10. Accounts payable (L) I, Loan to ABC (A) 25. Accumulated depreciation 145, Accounts receivable (A) 120, Retained earnings (OE) 781, Trademark (A) 195, prepaid rent (A) 7, Advances to suppliers (A) During 2013 the following transactions cxcurred: l. Cash sales were credit sales were and the ending balance ofaccounts receivable was S210. 2, Palo-Alto purchased SI,706 worth of inventory, and paid its suppliers S 1,607. 3. Palo-Altosigncd to hirca new manager for thc 2014 year with an annual salary Of $180. 4. A new machine was purchased. in cash. for $200. Depreciation expense for the year was the transactions in item 2 above, Palo-Alto purchased, from the supplier it had advances with on December 31 , 2012. 120 units of Silicon. ralleys pan ofinnnrory). at S2.SO per unit, By the cod oftheyear, palo-Alto settled thc account with this supplier,and paid the remainder of what it owed in full (taking into consideration advances account. and any potential payable that could have been during the year for this specific supplier), 6. a in Cash, ABC paid palo-Alto S37 in total: SS for the interest related to last an interest receivable in 2012), for interest related to thc current year (2013). the ($25) against loan principal.