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Sheet1

Particulars	Account #1 Analysis			Account #1 Analysis
	GL Account and Dollar Amount	Change (+/-)	Debit/ Credit	GL Account and Dollar Amount	Change (+/-)	Debit/ Credit
A. New credit sales for the year were $1,910,000.	Account receivable/$1,910,000	+	debit	Sales/ $1,910,000	+	credit
B. New cash sales for the year were $333,000.	Cash/$333,000	+	debit	Sales/ $333,000	+	credit
C. COMPANY-A acquired office supplies on credit for $32,000.	Office supplies/$32,000	+	debit	Cash / $32,000	-	credit
D. Cash collections from credit sales were $1,720,000.	Cash/$1,720,000	+	debit	Account receivable/$1,720,000	-	credit
E. Cash payments for items purchased on credit during the year were $344,000.	Account payable/$344,000	-	debit	Cash / $344,000	-	credit
F. Paid $363,000 for administrative expenses during the year.	Administrative expenses/$363,000	+	debit	Cash / $363,000	-	credit
G. COMPANY-A acquired $212,000 of inventory on credit.	Purchase/$212,000	+	debit	Account payable/$212,000	+	credit
H. At the end of the year, COMPANY-A owed the bank $19,000 in interest.	Interest/$19,000	+	debit	Interest payable/$19,000	+	credit
I. COMPANY-A collected $327,000 of cash advances from customers.	Cash / $327,000	+	debit	Advance From customers/$327,000	+	credit
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.	Income Statement / $67,000	-	debit	Warranty Expense/$67,000	-	credit
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.	Research and development/$125,000	+	debit	Cash/$125,000	-	credit
	Income Statement / $62,500	-	debit	Research and development/$62,500	-	credit
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.	Income Statement / $80,000	-	debit	Proposed Dividend/$80,000	+	credit
M. At the end of the year, COMPANY-A owed its employees a total of $66,000 in wages.	Wages/$66,000	+	debit	Outstanding wages/$66,000	+	credit
N. COMPANY-A paid down the long-term loan by $140,000.	Long Term Loan/$140,000	-	debit	Cash/$140,000	-	credit
O. Sales of $272,000 were earned from prior period cash advances from customers.	Advance from customers/$272,000	-	debit	Sales/$272,000		credit
P. At the end of the year, the market value of the short-term investments was $157,000	Income Statement/$23,000	-	debit	Short term Investment/$23,000	-	credit
Q . A total of $3,000 in office supplies remained on hand at the end of the year.	Income Statement/$38,000	-	debit	Supplies Expense/$38,000	-	credit
R. COMPANY-A’s policy is to write off all intangible assets over 3 years using straight-line amortization. 2013 is the second year for amortizing licenses.	Income Statement/$90,000	-	debit	licenses Amortization/$90,000	-	credit
T. At the end of the year, it was determined that the carrying value of goodwill had declined by $28,000.	Income Statement/$28,000	-	debit	Goodwill/$28,000	-	credit
U. Old equipment, which had originally cost $147,000 and was fully depreciated, was scrapped on the first day of business of the year.	Accumuated Depreciation/$147,000	-	debit	Equipment/$147,000	-	credit
V. COMPANY-A acquired all of the assets and liabilities of Smith Alarms, LLC for $555,000 cash. The assets included equipment valued at $425,000 (this equipment was carried on the books of Smith Alarms, LLC at $300,000 net), accounts receivable of $230,000, accounts payable of $250,000, and a demand loan of $52,000. There were no intangible assets.	Equipment/$300000, Accounts Receivable/$230,000	+	debit	Cash/$555,000, Accounts payable/$250000 Demand Loan/$52000	-	credit
W. COMPANY-A paid salaries to employees of $390,000 in cash.	Salaries/$390,000	-	debit	Cash/$390,000	-	credit
X. Paid the bank $58,000 cash towards interest payments during the year.	Interest/$58,000	-	debit	Cash/$58,000	-	credit
Y. Depreciation on plant, property, and equipment for 2013 was determined to be $123,000.	Depreciation/$123,000	-	debit	Plant,property and equipment/$123,000	-	credit
	Income Statement/$123,000	-	debit	Depreciation/$123,000	+	credit
Z. At the end of the year, the accountant estimated that $22,000 of accounts receivable owed to the firm would not likely be collected.	Bad Debt Expense/$22,000	+	debit	Accounts Receivable/$22,000	-	credit

Sheet2

Company - A
Income Statement
For the year ended December, 31, 2014
Sales Revenue	27,50,000
Less: Cost of Goods Sold	-600,000
Gross Profit		21,50,000
Operating Expenses:
Administrative Expenses	3,80,000
Research & Development Expense	1,40,000
Depreciation Expense	1,45,000
Salaries Expense	3,25,000
Supplies Expense	43,000
Warranties Expense	75,000
Decline in ST investments	25,000
Goodwill Impairment	30,000
Total Operating Expense		-1,163,000
Non Operating Expenses:
Bad Debt expense	27,000
Interest expense	50,000
Dividends, declared	100,000
Licences, Amortization	110,000
Total Non Operating Expense		-287,000
Net Income		700000

Sheet3

Company-A
Balance Sheet
For the year ended December 31, 2014
Assets	$	Liabilities & Stockholder's Equity	$
Current Asset:		Current Liabilities:
Accounts Receivable	1,125,000	Accounts Payable	555,000
Cash	695,000	Demand Loan Payable	225,000
Inventory	535,000	Dividend Payable	80,000
Short Term Investments	164,000	Interest Payable	33,000
		Salaries Payable	97,000
Goodwill	325,000	Long Term Loan Payable	415,000
Equipment & Building	2,533,000	Warranty Payable	100,000
(-)Accumulated Depreciation	(1,273,000)	Advance from Customer	450,000
Licenses	140,000
Supplies	6,000	Common Stock	1,291,000
		Retained Earning	304,000
		Add: Net Income	700,000
Total	4,250,000	Total	4,250,000
		- 0		- 0

Sheet4

Company-A
Statements of Cash Flows
for the year ended December 31, 2014
Cash Flow from Operating Activities:
Cash paid for accounts payable	-500000
Cash collection from accounts receivable	1825000
Cash paid for administrative expense	-400000
Cash recieved from customer as advance	375000
Cash paid for Research & Development	-150000
Cash paid for salaries and wages	-475000
Cash received for sales revenue	350000
Net cash from operating activities		1025000
Cash Flow from Investing Activities:
Cash paid for buying competitor's business	-600000
Cash paid for buying furniture	-15000
Cash received from issue of additional stock	100000
Cash from Interest Revenue	3,000
Net cash from Investing activities		-512000
Cash Flow from Financing Activities:
Cash paid for dividend to investors	-25000
Cash paid for interest expense	-60000
Net Cash from Financing activities		-85000
Net Increase in cash and cash equivalents		428000
Cash at the beginning of the year		267000
Cash at the end of the year		695000

Sheet5

Sample Transaction Recording - Classification needed of opening balances
Transaction	Amount ($)	Asset, ContraAsset, Liability Stockholders' Equity	Debit	Credit
Accounts Payable	380000	Liability		380000
Accounts Receivable	611000	Asset	611000
Accumulated depreciation	1245000	ContraAsset		1245000
Cash	267000	Asset	267000
Common Stock	1152000	Stockholders' Equity		1152000
Short Term Bank Loan	125000	Liability		125000
Plant, property and Equipment	2111000	Asset	2111000
Interest payable	37000	Liability		37000
Inventory	850000	Asset	850000
Licenses (net)	180000	Asset	180000
Long Term Bank Loan	525000	Liability		525000
Goodwill	80000	Asset	80000
Retained Earnings	304000	Stockholders' Equity		304000
Advances from customers	340000	Liability		340000
salaries Payable	180000	Liability		180000
Short term investments	180000	Asset	180000
Office Supplies	9000	Asset	9000
Total			4288000	4288000

Sheet6

Company-A
Balance Sheet
For the year ended December 31, 2013
Assets	$	Liabilities & Stockholder's Equity	$
Current Asset:		Current Liabilities:
Accounts Receivable	1,009,000	Accounts Payable	530,000
Cash	540,000	Demand Loan Payable	52,000
Inventory	513,000	Dividend Payable	80,000
Short Term Investments	157,000
		Salaries Payable	66,000
Goodwill	52,000	Long Term Loan Payable	385,000
Plant, Property and Equiment	2,411,000	Advance from Customer	395,000
(-)Accumulated Depreciation	(1,245,000)
Licenses	90,000
Supplies	3,000	Common Stock	1,152,000
		Retained Earning	304,000
		Add: Net Income	639,000
Total	3,530,000	Total	3,603,000

Sheet7

Company - A
Income Statement
For the year ended December, 31, 2013
Sales Revenue	2515000
Less: Cost of Goods Sold	549,000
Gross Profit		1,966,000
Operating Expenses:
Administrative Expenses	363000
Research & Development Expense	125000
Depreciation Expense	123000
Salaries Expense	390000
Supplies Expense	38,000
Warranties Expense	67,000
Decline in ST investments	23,000
Goodwill Impairment	28,000
Total Operating Expense		-1,157,000
Non Operating Expenses:
Bad Debt expense	22,000
Interest expense	58,000
Licences, Amortization	90,000
Total Non Operating Expense		-170,000
Net Income		639,000

Sheet8

Company-A
Statements of Cash Flows
for the year ended December 31, 2013
Cash Flow from Operating Activities:
Cash received for sales revenue	333000
Cash collection from accounts receivable	1720000
Cash Paid for accounts payable	-344000
Cash paid for administrative expense	-363000
Cash recieved from customer as advance	327000
Cash paid for Research & Development	-125000
Cash paid for salaries and wages	-390000
Net cash from operating activities		1158000
Cash Flow from Investing Activities:
Cash paid for buying competitor's business	-555000
Net cash from Investing activities		-555000
Cash Flow from Financing Activities:
Cash paid for Long term loan	-140000
Cash paid for interest expense	-58000
Net Cash from Financing activities		-198000
Net Increase in cash and cash equivalents		405000
Cash at the beginning of the year		267000
Cash at the end of the year		540000