Cash Receipt
Cash Sales 44420
Credit customers 21798
Diane Maynard 11700
Bank Loan 20865
Assets
Jun-01 Jun-30
Accounts Receivables 21798 26505
Building 585000 585000
less Depreciation on Building -156000 -157950
Cash 34983 66660
Equipments 13260 36660
less Depreciation on Equipments -5304 -5928
Land 89700 89700
Merchandise inventory 29835 26520
Note Receivable Diane Maynard 11700 0
Prepaid Insurance 3150 2826
Supplies on hand 5559 6630
Other Non-Current assets 4857 5265
Total Assets 638538 681888
b
36030 is incorrect because it is the sum total of cash purchases
(14715) and credit purchases (21315).
Cost of Sales = Opening Stock + Purchases -Closing Stock
Cost of sales = Purchases
The amount could be correct cost of sales amount if the amounts of opening and closin
Reconciliation Cash Disbursements
Cash Balance June 1 34983 Equipment purchased
Receipts 98783 Other assets purchased
Subtotal 133766 Payments on accounts payable
Cash purchases on merchandise
Disbursements 67106 Cash purchases on supplies
Cash Balance June 30 66660 Dividends
Wages paid
Utilities paid
Misc payments
Total disbursements
Balance Sheet for the month June
67106
1 Income statement for Lone Pine Café for the period of Nov 2, 2005 to Mar 30. 2006
Sales
Expenses
Salaries $ 23,150
Wages 5,480
Supplies 11,969
Utility 3,270
Rent 7,500
Depreciati 2,445
Operating 595
Interest 540
Miscellane 255
Total
Loss
2 Income Statement reflects that cafe is incurring loss during the period.
e Pine Café for the period of Nov 2, 2005 to Mar 30. 2006
$ 44,350
-55204
$ 10,584
3ans
Hynes’ profit plan using transaction analysis. Components of the cost of manufacturing goods include direct materials and
The difference between operating and finance costs in the income statement is another accounting practice.
Dispensers of California Inc.
12month Profit Plan
Sales
Cost of goods sold
Components 197000
Mfg payroll 145000
Other Mfg. 62000
Depreciation 8500
Gross margin
Selling general and Administration
Patent
Redesign costs
Incorporation costs
Operating profit
Interest
Profit before taxes
Tax Income
Net Income
4ans
Balance Sheet
At the end of the first year of operation
Current Assets
Cash 78400 Income tax payable
Raw material inventory 15100
Noncurrent Assets
Equipment 76500
Patent 100000
Total assets
Equipment (Cost)
Accumulated depreciati -8500
Equipment (net)
Cash Reconcilation
Receipts
New equity capital 80000
Incorporation
Equipment
Redesign
Component parts
Bank loan 30000
Bank loan
Loan interest
Manufacturing payroll
Other manufacturing
SG&A
Sales 598500
Dividend
Total 708500
Cash Reconciliation
Receipt 708500
Disbursement 630100
Ending Balance 78400
5ans
Statement of Cash Flow
Collections from customer 598500
Payments to Suppliers -212100
Payments to employees -295000
Legal payments -2500
Interest -500
Operating cash flow 89400
Equipment purchases -85000
Investing cash flow -85000
Bank loan 30000
Repayment of bank loan -30000
Capital 80000
Dividends -5000
Financing cash flow 75000
Change in cash 78400
Beginning cash 0
Ending cash 78400
Liability & Owners' Equity
Tax payables Owners' Equity
120000
80000
-2500
-25000
-500
-145000
-62000
-63000
-197000
598500
-8500
-20000
-5000
22500 -22500
22500 247500
270000
nclude direct materials and their conversion costs, including manufacturing equipment depreciation.
ting practice.
e Sheet
rst year of operation
Noncurrent liabilities
Income tax payable 22500
Total liabilities
Owners' Equity
Capital 247500
Expense
Printing 92400
Meeting Expense 49200
Meeting Advance 10800
Desktop 27000
Admin. Salaries 171500
Misc. 25000
Total 375900
Surplus(deficit) 11900
l Association of Accounts
Income Statement, 2005
Adjustment Adjusted
32400 255100
2700 28300
11900
51300 2700
3400
86400 301400
11600 80800
49200
10800 0
27000 0
171500
25000
49400 326500
37000 25100