Minicase

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Mini-case

• Acme Corp. was formed on July 1 of the current
  year. The following occurred during the year
• Common stock is issued for 50,000.
• 200/month rent is paid for 1 year in advance on
  July 1.
• Wages are paid in cash during the period totaling
  8,000. Accrued wages at year-end are 1,200.
• Fees earned during the period are billed to
  clients totaling 35,000.
• Supplies are purchased on account for 2,000.
  Assume that all of the supplies were used up at
  the end of year.
• 22,000 is collected from clients previously
  billed.
• Suppliers are paid 1,800 on account.
• 500 in dividends are declared and paid.
• 250 in utilities are paid during the year.
• Required
• Journalize these transactions, post them to
  T-accounts, prepare the adjusted trial balance,
  prepare all four financial statements, prepare
  closing entries, and prepare the post-closing
  trial balance.

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Mini-case
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Amer CompanyIncome StatementFor the Year Ended
December 31

• Revenue
• Sales 35000
• Expenses
• Rent Expense 1200
• Utility Expense 250
• Salary Expense 9200
• Supplies expenses 2000 12650
• Net income 22350

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• Amer Coporation
• For the Year Ended December 31
• Beginning contributed capital -0-
• Contributions during the year 50000
• Ending contributed capital 50000
• Beginning retained earning -0-
• Net Income for the year 22350
• Dividends (500)
• Ending Retained earning 21,850
• Total shareholders equity 71850

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Toms WearBalance SheetAs of 2/28/01

• Assets Liabilities
  Shareholders Equity
• Cash 59,050 Accounts payable
  200
• Prepaid Rent 1200 Salaries Payables
  1200
• A/R 13,000 Common Stock
  50,000
• Retained earnings
  21850
• Total assets 73,250 Total liabilities
  Equity 73,250

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Amer.Statement of Cash FlowsFor the Year ended
December 31

• Cash from operating activities
• Cash from customers 22000
• Cash paid for rent
  (2400)
• Cash paid for Salaries
  (8000)
• Cash paid for supplies
  (1800)
• Cash paid for Utility
  (250)
• Total cash from operations 9550
• Cash from investing activities
  -0-
• Cash from financing activities
• Cash from Owners Contribution
  50000
• Dividends (500)
• Total Cash from Financing 49500
• Net Increase in Cash
  59050
• Cash, Beginning Balance
  0
• Cash, ending Balance 59050

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