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whats the inventory tracking for this?

whats the inventory tracking for this?

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 7DQ
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whats the inventory tracking for this?

Balance Sheet Events Assets Accum Depr Acct Pay 118,000.00 Cash Acct Rec 17,500.00 $ Inventory 28,000.00 Equipment Land Building 250,000.00 - Beginning Balances as of Dec 31, Year 1 1.Acquired $550,000 by signing a note payable with a local bank 2. Sold 25,000 shares of $22 Common Stock for $1,500,000 3. Purchased Equipment for $300,000 Purchased Inventory on AcCount - 25,000 Units at $1.15 per unit 5a. Sold 15,000 units at $3.50 on Account 5b. COGS for Sales on Account $4 257,000.00 $ 50,000.00 $ 24 8,333.00 $ 550,000 1,500,000 (300,000) $ 300,000 $4 28,750 28,750 52,500 (29,150) 70,000 $ Collect $70,000 on Account Paid $117,250 of Accounts Payable . Purchased Inventory on ACCount - 170,000 Units at $1.50 per unit 9a. Sold 175,000 units at $3.50 on Account 9b. COGS for Sales on Account 10. Collect $472,500 on Account Paid $218,600 of Accounts Payable 12. Purchased Inventory on Account - 275,000 Units at $1.35 per unit 13a. Sold 200,000 units at $3.50 on Account 13b. COGS for Sales on Account 14. Collect $735,000 on Account Paid $494,150 of Accounts Payable 16. Purchased Inventory on Account - 300,000 Units at $1.15 per unit 17. Paid Sales & Marketing Expenses of $30,000 (70,000) (117,250) 255,000 (117,250) 255,000 612,500 $4 (472,500) (254,100) -1 |- |- |- |- $ 472,500 $ $ (218,600.00) $ (218,600) $ 371,250 371,250 $ 700,000 $ |- |- |- (244,350) 5. 735,000 $ (735,000) $(494,150.00) $ $ 5. (494,150) 345.000 345,000.00 |- |- |- |- (30,000) 18. Paid Operating Expenses of $75,708 19. Record Wages Payable of $40,000 20. Paid Product Line Research & Development Expenses of $150,000 21. Paid Advertising Expenses of $87,500 (75,708) $ (40,000) (150,000) (87,500) 22. Made the yearly required payment on the note payable. The note carries a 7% $ linterest rate and requires payments of $50,000 plus interest each December 31. (88,500) 23. Record first year of Depreciation on Equipment Purchased in Year 2 with Salvage Value of $38,000 & useful life of 7 Yrs 24. Declared a $10,000 cash dividend for stockholders 25. Paid a $10,000 cash dividend for stockholders Balance at end of Yr 2 $ 37,429.00 $ (10,000) 1,972,792 $ 105,000 $ 500,400 $ 300,000 $ 50,000 $ 250,000 F$ 45,762 $ 288,000 Total Assets Total Liabilities & Eauity 3,132,430 3.132.430
Transcribed Image Text:Balance Sheet Events Assets Accum Depr Acct Pay 118,000.00 Cash Acct Rec 17,500.00 $ Inventory 28,000.00 Equipment Land Building 250,000.00 - Beginning Balances as of Dec 31, Year 1 1.Acquired $550,000 by signing a note payable with a local bank 2. Sold 25,000 shares of $22 Common Stock for $1,500,000 3. Purchased Equipment for $300,000 Purchased Inventory on AcCount - 25,000 Units at $1.15 per unit 5a. Sold 15,000 units at $3.50 on Account 5b. COGS for Sales on Account $4 257,000.00 $ 50,000.00 $ 24 8,333.00 $ 550,000 1,500,000 (300,000) $ 300,000 $4 28,750 28,750 52,500 (29,150) 70,000 $ Collect $70,000 on Account Paid $117,250 of Accounts Payable . Purchased Inventory on ACCount - 170,000 Units at $1.50 per unit 9a. Sold 175,000 units at $3.50 on Account 9b. COGS for Sales on Account 10. Collect $472,500 on Account Paid $218,600 of Accounts Payable 12. Purchased Inventory on Account - 275,000 Units at $1.35 per unit 13a. Sold 200,000 units at $3.50 on Account 13b. COGS for Sales on Account 14. Collect $735,000 on Account Paid $494,150 of Accounts Payable 16. Purchased Inventory on Account - 300,000 Units at $1.15 per unit 17. Paid Sales & Marketing Expenses of $30,000 (70,000) (117,250) 255,000 (117,250) 255,000 612,500 $4 (472,500) (254,100) -1 |- |- |- |- $ 472,500 $ $ (218,600.00) $ (218,600) $ 371,250 371,250 $ 700,000 $ |- |- |- (244,350) 5. 735,000 $ (735,000) $(494,150.00) $ $ 5. (494,150) 345.000 345,000.00 |- |- |- |- (30,000) 18. Paid Operating Expenses of $75,708 19. Record Wages Payable of $40,000 20. Paid Product Line Research & Development Expenses of $150,000 21. Paid Advertising Expenses of $87,500 (75,708) $ (40,000) (150,000) (87,500) 22. Made the yearly required payment on the note payable. The note carries a 7% $ linterest rate and requires payments of $50,000 plus interest each December 31. (88,500) 23. Record first year of Depreciation on Equipment Purchased in Year 2 with Salvage Value of $38,000 & useful life of 7 Yrs 24. Declared a $10,000 cash dividend for stockholders 25. Paid a $10,000 cash dividend for stockholders Balance at end of Yr 2 $ 37,429.00 $ (10,000) 1,972,792 $ 105,000 $ 500,400 $ 300,000 $ 50,000 $ 250,000 F$ 45,762 $ 288,000 Total Assets Total Liabilities & Eauity 3,132,430 3.132.430
et Income Statement Statement of Cash Flows Liab Equity APIC 100,000.00 $ Div Pay Notes Pay Wages Pay Common Stock Retain Earnings Account Titles Revenue Expense Net Income Туре Amount $ 200,000.00 $ 176,167.00 550,000 Financing 550,000 24 550,000 $ $ 1,500,000 (300,000) 950,000 Financing Investing Non Cash Non Cash 52,500 (29,150) 52,500 52,500 29,150 $ (29,150) Non Cash Operating 70,000 Operating 24 (117,250) Non Cash 24 612,500 (254,100) $ (254,100) 612,500 612,500 Non Cash 254,100 $ Non Cash Operating Operating 472,500 24 (218,600) Non Cash 700,000 $ 700,000 (244,350) 700,000 Non Cash 244,350 $ (244,350) Non Cash Operating 735,000 Operating $ (494,150) Non Cash (30,000) (75,708) 30,000 $ 75,708 $ (30,000) (75,708) Operating Operating (30,000) (75,708) (40,000) (150,000) (87,500) 150,000 $ 87,500 $ (150,000) (87,500) Operating Operating (150,000) (87.500) 2$ (50,000) (38,500) $ 38,500 |$ (38,500) Operating (88,500) (37,429) $ 37,429 |$ (37,429) Non Cash 10,000.00 (10,000) 10,000 $ (10,000) Non Cash (10.000.00) Financing Net Change in Cash (10,000) $ 1,755,792 500,000 $ (40,000) $ 750,000 $ 1,050,000 $ 584,430 1,365,000 $ 956,737 $ 408,263
Transcribed Image Text:et Income Statement Statement of Cash Flows Liab Equity APIC 100,000.00 $ Div Pay Notes Pay Wages Pay Common Stock Retain Earnings Account Titles Revenue Expense Net Income Туре Amount $ 200,000.00 $ 176,167.00 550,000 Financing 550,000 24 550,000 $ $ 1,500,000 (300,000) 950,000 Financing Investing Non Cash Non Cash 52,500 (29,150) 52,500 52,500 29,150 $ (29,150) Non Cash Operating 70,000 Operating 24 (117,250) Non Cash 24 612,500 (254,100) $ (254,100) 612,500 612,500 Non Cash 254,100 $ Non Cash Operating Operating 472,500 24 (218,600) Non Cash 700,000 $ 700,000 (244,350) 700,000 Non Cash 244,350 $ (244,350) Non Cash Operating 735,000 Operating $ (494,150) Non Cash (30,000) (75,708) 30,000 $ 75,708 $ (30,000) (75,708) Operating Operating (30,000) (75,708) (40,000) (150,000) (87,500) 150,000 $ 87,500 $ (150,000) (87,500) Operating Operating (150,000) (87.500) 2$ (50,000) (38,500) $ 38,500 |$ (38,500) Operating (88,500) (37,429) $ 37,429 |$ (37,429) Non Cash 10,000.00 (10,000) 10,000 $ (10,000) Non Cash (10.000.00) Financing Net Change in Cash (10,000) $ 1,755,792 500,000 $ (40,000) $ 750,000 $ 1,050,000 $ 584,430 1,365,000 $ 956,737 $ 408,263
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