Tim Lumber buys $350,000 more inventory, pays $150,000 cash now, balance due to suppliers next month Pays cash in Mo 11 against Accts Payable starting balance owed from Mo 10 Accts Payable Tim Lumber sells $475,000 of inventory to customers for $725,000 net $450,000 were cash sales, balance of sales on credit due from customers in 30 days in next months accounting period $140,000 cash is collected in the current Month 11 period on Accts Receivable carried over from Mo 10 Building monthly rent paid cash in current period is $10,000 monthly going forward Wage expense $45,000, $30,000 cash, balance paid next period Mo 10 Wage Payable is paid cash now $50,000 is repaid on the Bank loan Mo loan interest expense $1,000, paid cash in current period Tim Lumber buys extra $200,000 inventory, pays $50,000 cash, balance on Supplier credit, due in Mo 12 Office supplies and utilities expense together totaled $30,000, paid cash in the current period Depreciation expense is $750 per month ($72,000 div by 8 $9,000 annual div by 12 $750 mo ) Amortized monthly insurance policies expense of $300 recorded in the current period Another $75,000 is received in Mo 11 from accts rec owed by customers who bought on credit in month 11 Dividends $10,000 paid cash to Owner in Mo 11 Month 11 Retained Earns Mo 11 N Inc $10,000 Div Tim Lumber owes $43,950 income tax on Mo 11 pre tax profits, pays period 12 Tim Lumber pays Mo 10 Tax payable PREPARE THE 11 PERIOD INCOME STATEMENT ENDING BALANCE SHEET WAGES PAYABLE 8 282 7 155 443 SUPPLIER PAYABLE CASH ACCT RECEIVABLE INVENTORY Prepaid Curr Asset TOT CURR ASSETS 220 LOC BANK LOAN 135 30 TAX Oth PAYABLE 6 881 3 393 0 LT ASSETS Office Eq CURR LIABILITIES LONG TERM DEBT TOTAL LIABILITIES 64 5 393 TOTAL ASSETS 945 8 OWNERS EQUITY RETAINED EARNS TOTAL EQUITY 200 352 8 552 8 945 8 TOT LIABS EQUITY

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Tim Lumber buys $350,000 more inventory, pays $150,000 cash now, balance due to suppliers next month. Pays cash in Mo. 11 against Accts Payable starting

Tim Lumber buys $350,000 more inventory, pays $150,000 cash now, balance due to suppliers next month. Pays cash in Mo. 11 against Accts Payable starting balance owed from Mo-10 Accts Payable.
Tim Lumber sells $475,000 of inventory to customers for $725,000 net. $450,000 were cash sales, balance of sales on credit due from customers in 30 days in next months accounting period.
$140,000 cash is collected in the current Month-11 period on Accts Receivable carried over from Mo.10
Building monthly rent paid cash in current period is $10,000 monthly going forward
Wage expense = $45,000, $30,000 cash, balance paid next period. Mo-10 Wage Payable is paid cash now.
$50,000 is repaid on the Bank loan. Mo. loan interest expense = $1,000, paid cash in current period.
Tim Lumber buys extra $200,000 inventory, pays $50,000 cash, balance on Supplier credit, due in Mo. 12
Office supplies and utilities expense together totaled $30,000, paid cash in the current period
Depreciation expense is $750 per month ($72,000 div. by 8 = $9,000 annual div. by 12 = $750 mo.)
Amortized monthly insurance policies expense of $300 recorded in the current period
Another $75,000 is received in Mo.11 from accts rec. owed by customers who bought on credit in month 11.
Dividends = $10,000 paid cash to Owner in Mo.11 Month-11 Retained Earns = Mo. 11 N.Inc - $10,000 Div
Tim Lumber owes $43,950 income tax on Mo.11 pre-tax profits, pays period 12. Tim Lumber pays Mo-10 Tax payable

PREPARE THE 11 PERIOD INCOME STATEMENT & ENDING BALANCE SHEET

WAGES PAYABLE 8 282.7 155 443 SUPPLIER PAYABLE CASH ACCT RECEIVABLE INVENTORY Prepaid Curr. Asset TOT CURR. ASSETS 220 LOC BANK LOAN 135 30 TAX. Oth PAYABLE .6 881.3 393 0 LT ASSETS Office Eq CURR. LIABILITIES LONG TERM DEBT TOTAL LIABILITIES 64.5 393 TOTAL ASSETS 945.8 OWNERS EQUITY RETAINED EARNS TOTAL EQUITY 200 352.8 552.8 945.8 TOT LIABS & EQUITY