Income Statement and Balance Sheet:
|
Begin
|
Ending
|
||||
| Revenue |
500,000
|
Cash |
180,000
|
328,000
|
|
| Misc. cash expense |
450,000
|
A/R |
240,000
|
140,000
|
|
| Bad debt expense |
3,000
|
Allow. bad debt |
-40,000
|
-41,000
|
|
| Net Income |
47,000
|
Total Assets |
380,000
|
427,000
|
|
| Equity |
380,000
|
427,000
|
Statement of Cash Flows Indirect Method (prefer statement
on right side)
| Net Income |
47,000
|
Net Income |
47,000
|
|
| Decrease in net A/R |
101,000
|
Decrease in A/R |
98,000
|
|
|
148,000
|
Bad debt expense |
3,000
|
||
|
148,000
|
Statement of Cash Flows Direct Method
| Collections from Customers* | 598,000 |
| Payments for Misc. Expense | 450,000 |
| 148,000 |
*Sales of 500,000 less decrease in accounts receivables 100,000 net of 2,000 in accounts written off.
Ledger Accounts:
|
|
|
|
| Debit | Credit | Debit | Credit | Debit | Credit | ||
| 240,000 | 40,000 | 140,000 | |||||
| 2,000 | 2,000 | 598,000 | |||||
| _______ | 98,000 | ______ | 3,000 | _______ | 450,000 | ||
| 140,000 | 41,000 | 328,000 |
Assumed Transactions:
| Cash |
598,000
|
|
| A/R |
98,000
|
|
| Revenue |
500,000
|
|
| Misc. Expense |
450,000
|
|
| Cash |
450,000
|
|
| Bad Debt Expense |
3,000
|
|
| Allowance for Bad Debt |
3,000
|
|
| Allowance for Bad Debt |
2,000
|
|
| A/R |
2,000
|