Year 1 Transaction List: 1. Acquired $550,000 by signing a note payable with a local bank on Jan 1. 2. Sold 25,000 shares of $22 par value Common Stock for $1,500,000 3. Purchased Equipment for $300,000 cash 4. Purchased 25.000 Units of Inventory on Account at $1.15 per unit 5. Sold 15,000 units at $3.50 on Account 6. Collected $70.000 of accounts receivable 7. Paid $17.250 of Accounts Payable 8. Purchased 170,000 Units of Inventory on Account at $1.50 per unit 9. Sold 175,000 units at $3.50 on Account 10. Collected $472,500 of accounts receivable 11. Paid $118,600 of Accounts Payable 12. Purchased 275,000 Units of Inventory on Account at $1.35 per unit 13. Sold 200,000 units at $3.50 on Account 14. Collected $735,000 of accounts receivable 15. Paid $294,150 of Accounts Payable 16. Purchased 300,000 Units of Inventory on Account at $1.15 per unit 17. Record Sales & Marketing Expenses of $30,000 (paid in cash) 18. Record Operating Expenses of $75,708 (paid in cash) 19. Record Wage Expenses of $40,000 (paid in cash) 20. Record Product Line Research & Development Expenses of $150,000 (paid in cash) 21. Record Advertising Expenses of $87,500 (paid in cash) 22. Made the yearly required payment on the note payable. The note carries a 7% interest rate and requires payments of $50,000 plus interest each December 31. 23. Record Year 1 Depreciation on Equipment with Salvage Value of $38,000 and useful life of 7 Years (straight-line depreciation) 24. Declared a $10,000 cash dividend for stockholders 25. Paid a $10,000 cash dividend for stockholders Cosh Acc Roc Inventory Equipment Long B ACRUM Der 2 3 Events 1 Acquired $550.000 by signing a note payable with a locel bank 62 Sold 25.000 shares of $22. Common Stock for $1.500.000 73. Purchased Equipment Purchased Inventory an Account - 25.000 units at $115 per unit 950. Sold 15.000 units at $3.50 on Account 10 Sb. COGS for Sale on Account 116. Collect $70.000 on Account 27. Paid $17.250 of Accounts Payable as 8. Purchased Inventory on Account - 170.000 Units at $1.50 per unit 24 Po. Sold 175,000 units at $3.50 on Account ES 9. COGS for Sales on Account 10. Collect $472.500 an Account 11. Paid $118.600 of Accounts Payable * 12 Purchased Inventory on Account 275.000 Units at $1.35 per unit 9 130 Sold 200.000 units at $3.50 on Account 136. COGS for Soles on Account 14. Collect $735,000 on Account 15. Paid $294.150 of Accounts Payable 16. Purchased Inventory on Account - 300.000 Unit of $1.15 per unit 417. Record Sales & Marketing Expenses of $30.000 18. Record Operating Expenses of $75,208 619. Record Wage Expenses of $40,000 20. Record Product line Research & Development Expenses of 5150,000 21. Record Advertising Expenses of $87.500 22. Made the yearly required payment on the note payable. The role comes 7% Interest rate and requires payments of $50.000 plus interest each December 31 23. Record Y 1 Depreciation on Equipment with Salvage Value of $38.000 & Useful life of 7 yrs 24. Declared a $10,000 cash dividend for stockholders 25. Pald a $10.000 cash dividend for stockholders Balance at end of Y3 $ $ TOA Total Usb stoty 2 Balance Sheet Assels Equipment Land Building Acct Rec Inventory Accum Depe Acct Payable Div Payable Liab Notes Payable Woges Payable Com eet Liab Notes Payable Equity APIC avoble Wages Payable Common Stock Retained Earings Account Titles for Retained Earnings $ $ $ 5
