THE GARDEN SPOT (year 1)

General Enteries
Account Titles DR CR
1 cash 60000
capital 60000

2 cash 40000
loan payable 40000

3 Truck 12000
cash 12000

4 equipment 10000
cash 10000

5 inventory 260000
cash 235000
account payable 25000

6 cash 315000
account receivable 85000
sales 400000

6 COGS 240000
Inventory 240000

7 Operating expenses 140000

cash 140000

8 loan payable 10000

interst expense 10% 4000
cash 14000
 ADJUSTED T-ACCOUNTS
CASH TRUCK
DR CR DR CR
1 60000 3 12000
2 40000
3 12000
4 10000 BAL 12000
5 235000
6 315000 EQUIPMENT
7 140000 DR CR
8 14000 4 10000
AD 990
total 415000 411990
BAL 3010 BAL 10000

CAPITAL ACCOUNT RECEIVABLE

DR CR DR CR
1 60000 6 85000

BAL 60000 BAL 85000

Loan Payable ACCOUNT PAYABLE

DR CR DR CR
8 10000 2 40000 5 25000

BAL 25000
BAL 30000
SALARIES EXP SALARIES PAYABLE
DR CR DR CR
AD 5000 AD 5000

BAL 5000 BAL 5000

INCOME TAX EXP ACC DEP TRUCK

DR CR DR CR
AD 990 AD 2400

BAL 990 BAL 2400

DEP EXP TRUCK DEP EXP EQUIPMENT

DR CR DR CR
AD 2400 AD 2000

BAL 2400 BAL 2000

S INCOME STATEMENT
INVENTORY
DR CR SALES
5 260000 6 240000
LESS:
COGS
BAL 20000
GROSS PROFIT
COGS
DR CR Operating EXP 140000
6 240000 Salaries exp 5000
Interest exp 4000
dep exp truck 2400
BAL 240000 dep exp equipment 2000

OPERATING EXP EBIT

DR CR income tax
7 140000
NEET PROFIT
BAL 140000

INTEREST EXP
DR CR
8 4000

BAL 4000

SALES
DR CR
6 400000

BAL 400000

ACC DEP EQUIPMENT

DR CR

BAL 2000
STATEMENT BALANCE SHEET
400000 ASSETS:
cash 3010
account Rec 85000
240000 invenotry 20000
Truck 9600
160000 Equipment 8000

Total 125610

Liablities & E:
Loan payable 30000
salaries payable 5000
153400 account payable 25000
6600
990 Total Liab: 60000

5610 Capital: 60000

R.E 5610

Total L&E 125610

 CASH FLOW STATEMENT
OPERATING
Net Income 5610
A/C Rec 85000
Inventory 20000
salaries pay 5000
Truck Dep 2400
EQ Dep 2000
Cash Flow Operating: 64990

INVESTING: ratio
Truck 12000
Equipment 10000

Cash Flow INVESTING: 22000

FINANCING:
Notes payable 30000
capital issued 60000

FINANCING cash flow 90000

NET CASH FLOW 3010

0.014025 1%
 General Entries

Titles DR CR CASH
DR
1 cash 20000 1 20000
capital 20000

2 Land 100000 4 400000

Notes payable 90000 8 60000
Cash 10000 11 10000
12
3 Inventroy 310000 14 600
Cash 240000 Total 490600
a/c payable 70000
BAL 7600
4 Sales 500000
cash 400000 CAPITAL
A/c Receivable 100000 DR

4 COGS 300000
Invenntroy 300000

5 Operating Exp 150000 notes Payable

Cash 150000 DR
6 10000
6 Notes payable 10000
interest exp 3000
Cash 13000
income tax pay
7 DR
salaries payable 5000
Cash 5000

8 Cash 60000
A/C Rec 60000
INCOME TAX EXP
9 prepaid AD Exp 5000 DR
Cash 5000 AD 5175

10 a/c payable 60000 BAL 5175

Cash 60000
DEP EXP TRUCK
11 cash 10000 DR
unearned Rev 10000 AD 2400
12 no entry BAL 2400
20000
DIVIDENDS
13 Bad Debts 2000 DR
a/c rec 2000 8000

14 cash 600 8000

loss on eq 200
equipment 800 LOSS on eq
DR
15 no entry 200

16 Dividends 8000 200

Dividends payable 8000
ad exp
17 dep exp 2400 DR
acc dep TRUCK 2400 2500

18 no entry 2500

19 interest exp 8/2% 3600

interest payable 3600

20 ad exp 2500
prepaid ad exp 2500

21 no entry

22 Tax exp 5175

Income tax payable 5175
 ADJUSTED T-ACCOUNTS
CASH INVENTORY
CR DR
5 310000 6
2 10000
3 240000
5 150000 BAL 10000
6 13000
7 5000 EQUIPMENT COGS
9 5000 DR CR DR
10 60000 800 6 300000
483000

Bal 800 BAL 300000

CAPITAL ACCOUNT RECEIVABLE OPERATING EXP

CR DR CR DR
1 20000 4 100000 8 60000 7 150000
2000
BAL 20000 BAL 38000 BAL 150000

notes Payable ACCOUNT PAYABLE INTEREST EXP

CR DR CR DR
2 90000 10 60000 3 70000 6 3000
19 3600
BAL 10000 BAL 6600
BAL 80000
income tax pay SALARIES PAYABLE SALES
CR DR CR DR
22 5175 6 5000 6

5175 5000 BAL

INCOME TAX EXP ACC DEP TRUCK ACC DEP EQUIPMENT

CR DR CR DR
AD 2400

BAL 2400 BAL

DEP EXP TRUCK DEP EXP EQUIPMENT BAD debts

CR DR CR DR
AD 2000 13 2000
 BAL 2000 2000

DIVIDENDS DIVIDENDS PAY interest payable

CR DR CR DR
8000

8000

LOSS on eq unearned Rev prepaid ad

CR DR CR DR
10000 5000

10000 5000

ad exp land
CR DR CR DR
100000

100000
 Income Statement

VENTORY Sales 500000

CR COGS 300000
300000
GROSS: 200000
less:
Operational Expense 150000
dep exp Truck 2400
COGS dep exp eq 1800
CR interst exp 6600
Loss on eq 200
Bad debts 2000
advertisement expense 2500
165500
EBIT
RATING EXP EBIT 34500
CR
INCOME TAX 15% 5175

net Income 29325

EREST EXP
CR

SALES
CR
500000

500000

EP EQUIPMENT
CR

2000

AD debts
CR
rest payable
CR
3600

3600

repaid ad
CR

CR
 BALANCE SHEET
ASSETS: year 1 year 2
cash 3010 10610
account Rec 85000 123000
invenotry 20000 30000
Truck 9600 7200
Equipment 8000 5400
prepaid ad 2500
Land 100000
Total Assets: 125610 278710

Liablities & E:
Notes payable 30000 110000
salaries payable 5000 0
account payable 25000 35000
interest payable 3600
income tax payable 5175
unearned Rev 10000
Retained Earning 26935
capital 60000 80000
dividend payable 8000
Total L&E 125610 278710
0.05865 5.86%
 In
INCOME STATEMENT
SALES 400000

LESS:
COGS 240000

GROSS PROFIT 160000

Operating EXP 140000

Salaries exp 5000
Interest exp 4000
dep exp truck 2400
dep exp equipment 2000
153400
EBIT 6600
income tax 990

NET PROFIT 5610

 Income Statement

Sales 500000
COGS 300000

GROSS: 200000 28%

less:
39%
Operational Expense 150000
dep exp Truck 2400
dep exp eq 1800
interst exp 6600
Loss on eq 200
Bad debts 2000
advertisement expense 2500
165500
EBIT
EBIT 34500

INCOME TAX 5175

NET PROFIT 29325

 YEAR 1 1 2
3 4
1%
1% 5 6
0% 7 8
28% 3%
3% 1%
2% 9 10
11 12
39%
13 14
15 16
17 18
61%
19 20
91% 70% 21 22
23 24

In co me St atemen t
In co me St atemen t COGS
In co me St atemen t Oper ation al
Expens e
In co me St atemen t Los s on eq
In co me St atemen t E BIT
In co me St atemen t
In co me Sta tement
In co me Sta tement
In co me Sta tement d ep exp Truck
In co me Sta tement Bad d eb ts
In co me Sta tement E BIT
In co me Sta tement
YEAR 2
In come S tatemen t
In come S tatemen t GROSS :
In come S tatemen t d ep exp eq
In come S tatemen t a dvertis emen t
expen se
In come S tatemen t
In come S tatemen t NET PROFIT
Inco me Sta teme nt Sale s
Inco me Sta teme nt les s :
Inco me Sta teme nt inte rs t exp
Inco me Sta teme nt
Inco me Sta teme nt INCOME TAX