Marion Boats, Inc
Assets
Cash and
Cash
Equvalents
Liabilities
Cash
Receivable
Inventories and boat’s cost Property,
Plant
Building
Trad-in assets Account receivable Accounts
Payable
Owner’s Equities
Wages and
Salary
Bank Loan and other loans Accrued
Interest
Payable
Other
Share Holders’ equity $72000
$20000
$91200.00
Paid in
Capital
$800(expense)
$48000.00
$40000.00
$48000(expense)
$40000.00
-$32000.00
$32000.00
$40000.00
$40000.00
$9000.00
$40000.00
$40000.00
-$40000.00
February
$9000(expense)
$40000.00
-$40000.00
$40000.00
$112000.00
$58000.00
$54800.00
-$54800.00
-$153000.00
$13600.00
$183000(revenue)
$153000.00
-$153000.00
-$60000.00
$153000(expense)
$60000.00
-$2400.00
$2400(expense)
-$2600.00
$2600(expense)
$2000.00
-$42000.00
TOTAL
-$34000.00
$2000(interest expense) -$40000.00
$140000.00
$112800.00
$13600.00
$292600.00
$48000.00
$209000.00
$40000.00
$7000.00
$92000.00
$22000.00
Journal Entries
Date
Event
Transaction
October
Lawyer Services
$800(expense)
October 1,2005
Paid in Capital
$72000(cash) 1800 shares
(Fred)
October 1,2005
Paid in Capital
$20000(cash) 500 shares (Bill)
Hint: Actual cash received
$91200
Hint: Each year, don't know when exactly $24000 x 2 salaries November 1,2005
Property
$40000 (bank loan)
(company’s money)
$32000
November 1,2005
Property Cleaning
$9000 (payment May 31,2006)
December 1,2005
Loan
$40000 (Sports Boat, loan)
Hint: Fred deposited it to bank account, so it has been cash and loan
December 1,2005
Construction
$140000 (Holmes Brother
Cons.Company)
Hint: Payments are planned to be in Jan, Feb, Mar; as
$40,$40 and $60000.
January 1, 2006
Payments
$40000 (Building payment)
February 1, 2006
Payments
$40000 (Building