1. Answer the questions according to the following journals
1.1. Finish the Income Statement and Balance Sheet on November. (15%)
1.2. How much did this company earn on November?(5%)
October, 31, Balance Sheet
Assets
Liabilities
Cash
$40,000
Accounts Payable
$80,000
Account Rec.
$75,000
Notes Payable
$20,000
Securities-T-Bills
$35,000
Taxes payable
$25,000
Inventory
$120,000
Current Liabilities
$125,000
Current Assets
$270,000
Term Liabilities
Fixed Assets
Mortgage On Bldg.
$380,000
Equipment
$60,000
Total Term Liabilities
$380,000
Building
$670,000
Total Liabilities
$505,000
Total Fixed Assets
$730,000
Owners Equity
Common Stock 1,000 shares
$5,000
Retained earnings
$490,000
Total Assets
$1,000,000
Total Liabilities and O. E.
$1,000,000
a. Pay $10,000 on account payable
b. Billed Simpson Co. $5,000 for installation services.
c. Pay employee wages, $3,500.
d. Received $25,000 from customer for account receivable.
e. Received bill from supplier for repair of equipment, $2,000.
f. Paid sales commission of $1,500.
g. Sold on credit, $30,000 in material to South Building.
h. Paid Mortgage Co. $20,000 of which $15,000 was toward principal and $5,000 was
interest.
i. Paid part of tax owed, $5,000.
j. Sold $35,000 of material in inventory for cash to customer. (Note: This is the selling
price for the material. The value of the inventory is unknown at this time. At the end
of the month, a physical count of the inventory will be made and the CGS entry can
be made then)
k. Declared and paid dividends of $2,000
l. Depreciation of equipment is $1,000 and the building is $2,000.
m. Physical count of inventory at the end of the month is $50,000
