Question

As of the end of November the Technology Co. has the following assets and liabilities: Quincy owes the firm $400; cash totals $2690; outstanding common stock is worth $5000; Stone owes $800 to the company; Technology owes Harco $1200; retained earnings are $900; 16 widgets are in inventory at a value of their cost of $150 each; and 9 type X cables are in inventory at $90 each. Using a manual format generate the beginning B/S, ending B/S, I/S, and C/F for December.

1. Paid Harco in full
2. Billed Quincy $30 for installation charges
3. Although not yet due, paid the January rent of $180 (show as an asset until due, then expense the item)
4. Sold 6 widgets for $250 each
5. Purchased 10 widgets at $150 each and 6 cables at $90 each from Harco on credit
6. Paid $40 to XYZ printing for advertising
7. Sold 5 widgets to Stone for $200 each on credit
8. Received $120 from Quincy on account
1. Paid commissions to salesman of $270
10. Sold on credit to Sears a widget for $250, X cable for $150, and installation charges of $40
11. Received $500 from Stones
50. Sold 4 cables at $150 each
1000. Received bill from Tribune for advertising, $80.
14. Paid $140 to trucking company for delivery service.
15. Received bill from East C for $60 for installation service
16. Paid Harco $700
17. Paid commissions $280
18. End of month

Answer 1

Begining B/S

Assets		Liability and Equity
Cash	2,690	Accounts Payable-Harco	1,200
Accounts Receivable-Quincy	400	Common Stock	5,000
Accounts Receivable-Stone	800	Retained Earnings	900
Inventory (16 X150)+(9X 90)	3,210
	7,100		7,100

Journal entry for transactions

a	Accounts Payable-Harco	Debit	1,200
	Cash	Credit	1,200
b	Accounts Receivable-Quincy	Debit	30
	Revenue	Credit	30
c	Prepaid Rent	Debit	180
	Cash	Credit	180
d	Cash	Debit	1,500
	Revenue	Credit	1,500
e	Purchases -widgets	Debit	1,500
	Purchases - cable	Debit	540
	Accounts Payable-Harco	Credit	2,040
f	Advertisement Expenses	Debit	40
	Cash	Credit	40
g	Accounts Receivable-Stone	Debit	1,000
	Revenue	Credit	1,000
h	Cash	Debit	120
	Accounts Receivable-Quincy	Credit	120
i	Commission	Debit	270
	Cash	Credit	270
j	Accounts Receivable - Sears	Debit	440
	Revenue	Credit	440
k	Cash	Debit	500
	Accounts Receivable-Stone	Credit	500
l	Cash	Debit	600
	Revenue	Credit	600
m	Advertisement Expenses	Debit	80
	Accounts Payable-Tribune	Credit	80
n	Delivery Service Expense	Debit	140
	Cash	Credit	140
o	Installation Service Expense	Debit	60
	Accounts Payable - East C	Credit	60
p	Accounts Payable-Harco	Debit	700
	Cash	Credit	700
q	Commission	Debit	280
	Cash	Credit	280

Income statement

Revenue	3570
COGS (12*150) + (5*90)	2250
Gross Contribution	1320
Advertisement Expenses	120
Commission	550
Delivery Service Expense	140
Installation Service Expense	60
Net Profit	450

Adjusted Trial Balance

Particulars	Debit	Credit
Cash	2600
Accounts Receivable-Quincy	310
Accounts Receivable-Stone	1300
Inventory	3000
Accounts Payable-Harco		1340
Common Stock		5000
Retained Earnings		1350
Prepaid Rent	180
Accounts Receivable - Sears	440
Accounts Payable-Tribune		80
Accounts Payable - East C		60

Closing Balance Sheet

Assets		Liability and Equity
Cash	2,600	Accounts Payable-Harco	1340
Accounts Receivable-Quincy	310	Common Stock	5000
Accounts Receivable-Stone	1,300	Retained Earnings	1350
Inventory	3,000	Accounts Payable-Tribune	80
Prepaid Rent	180	Accounts Payable - East C	60
Accounts Receivable - Sears	440
	7,830		7,830