| | Account #1 Analysis | | | Account #1 Analysis |
| | GL Account and Dollar Amount | Change
(+/-) | Debit/
Credit | GL Account and Dollar Amount | Change
(+/-) | Debit/
Credit |
| EXAMPLE: Spent $600,000 cash on 15 acres of land for new office location | Land / $600,000 | + | debit | Cash / $600,000 | - | credit |
| A. New credit sales for the year were $1,910,000. |
| B. New cash sales for the year were $333,000. |
| C. COMPANY-A acquired office supplies on credit for $32,000. |
| D. Cash collections from credit sales were $1,720,000. |
| E. Cash payments for items purchased on credit during the year were $344,000. |
| F. Paid $363,000 for administrative expenses during the year. |
| G. COMPANY-A acquired $212,000 of inventory on credit. |
| H. At the end of the year, COMPANY-A owed the bank $19,000 in interest. |
| I. COMPANY-A collected $327,000 of cash advances from customers. |
| J. COMPANY-A offers a “satisfaction guarantee” to its clients for security services. If clients are unhappy with the services they purchased, they are eligible for free additional security services (i.e., this is a form of “after sales warranty” service). The company estimates that future expenditures of approximately $67,000 will be required to perform these “after sales warranty” activities to keep clients satisfied for services originally rendered to clients in 2013. |
| K. COMPANY-A spent $125,000 during 2013 on research and development activities related to new services the company could offer clients. It is expected that some of these products would be marketable within one or two years, but nobody is sure which products will be successful. |
| L. On the last day of business in 2013, COMPANY-A declared an $80,000 dividend, which will be paid sometime in the next year. |
| M. At the end of the year, COMPANY-A owed its employees a total of $66,000 in wages. |
| N. COMPANY-A paid down the long-term loan by $140,000. |
Sanur.
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