Marion Boats
Two brothers Fred and Bill Cunningham have decided to start a business in Mississippi called Marion Boats. This summary provides an overview for the year 2005 – 2006.
They start the company with a total of 2300 shares holding a cash value of $72000. The following financial statements summarize the current financial position of Marion Boats:
Journal Entries
Transaction Analysis
Balance Sheet
Income Statement
Stockholder’s Equity Statement
Cash Account Statement
Cash Flow – Direct Statement
Cash Flow – Indirect Statement
Journal Entries for Marion Boats
Date Transaction Debit Credit
1-Oct-05 Fred purchased 1,800 shares of the company's stock for $72,000 and Bill purchased 500 shares for $20,000. Total invested $92,000 Cash 92,000 Owners’ Equity 92000
1-Oct-05 Paid legal services fee 800$ divided between the two. Leaving initial investment to be $91,200. Cash 800
Owners’ Equity 800 1-Nov-05 Bank loan of $40,000 Accounts Payable 40000
Cash 40000 1-Nov-05 $72,000 used to purchase property. This amount includes the Bank loan and $32,000 of companies money) Cash 72000
Property 72000 1-Nov-05 Mr. Mahoney demolished the old building for $9,000. Payment collection deferred until 31 May 2006. Property 9000 Accounts Payable 9000
31-Dec-05 Sport boats sent check of $40,000 to Marion boats to start construction. Cash 40000 Accounts Payable 40000
31-Dec-05 Construction company charges $140,000. Completion by end of March 2006.Payments to be made as following:Jan end - $40,000Feb end - $40,000Mar end - $60,000 Cash 140000
Property 140000 1 Jan 2006 - 30 Mar 2006 Fred sold 17 boats average cash cost of $9,000. Nothing paid to Sport boats during this period. Sales of these 17 boats realized $183,600, where $58,000 represented trade-in allowances, $112,000 in cash and the rest was outstanding ($13,600) on 30th Mar. Fred sold all the trade-in boats for $54,800 cash before 31st Mar. Cash 153000
Inventory 153000 Cash 112000 Accounts Receivable 13600 Inventory (from
They start the company with a total of 2300 shares holding a cash value of $72000. The following financial statements summarize the current financial position of Marion Boats:
Journal Entries
Transaction Analysis
Balance Sheet
Income Statement
Stockholder’s Equity Statement
Cash Account Statement
Cash Flow – Direct Statement
Cash Flow – Indirect Statement
Journal Entries for Marion Boats
Date Transaction Debit Credit
1-Oct-05 Fred purchased 1,800 shares of the company's stock for $72,000 and Bill purchased 500 shares for $20,000. Total invested $92,000 Cash 92,000 Owners’ Equity 92000
1-Oct-05 Paid legal services fee 800$ divided between the two. Leaving initial investment to be $91,200. Cash 800
Owners’ Equity 800 1-Nov-05 Bank loan of $40,000 Accounts Payable 40000
Cash 40000 1-Nov-05 $72,000 used to purchase property. This amount includes the Bank loan and $32,000 of companies money) Cash 72000
Property 72000 1-Nov-05 Mr. Mahoney demolished the old building for $9,000. Payment collection deferred until 31 May 2006. Property 9000 Accounts Payable 9000
31-Dec-05 Sport boats sent check of $40,000 to Marion boats to start construction. Cash 40000 Accounts Payable 40000
31-Dec-05 Construction company charges $140,000. Completion by end of March 2006.Payments to be made as following:Jan end - $40,000Feb end - $40,000Mar end - $60,000 Cash 140000
Property 140000 1 Jan 2006 - 30 Mar 2006 Fred sold 17 boats average cash cost of $9,000. Nothing paid to Sport boats during this period. Sales of these 17 boats realized $183,600, where $58,000 represented trade-in allowances, $112,000 in cash and the rest was outstanding ($13,600) on 30th Mar. Fred sold all the trade-in boats for $54,800 cash before 31st Mar. Cash 153000
Inventory 153000 Cash 112000 Accounts Receivable 13600 Inventory (from