Maynard Company
Notes to Maynard Case
Overall, assets increased at the end of the month compared to the beginning by $43,350. This results in purchasing more assets, making sales or by simply making payments or purchasing on credit.
1. Cash: There is an increase of cash as of June 30 by $31,677. This could be the result of the company making sales for cash or making purchases on credit which would explain the increase in accounts payable. Also, payments of insurance were credited from prepaid insurance resulting in no cash being removed from the account.
2. Accounts Receivable: There is an increase in accounts receivable as of June 30 by $4,707. This could be the result of the company making sales on credit.
3. Supplies on hand: There is an increase in supplies on hand as of June 30 by $1,071. This could be the result of the company having purchased more supplies during the month.
4. Merchandise Inventory: There is a decrease in merchandise inventory as of June 30 by $3,315.The reason of the decrease would be that the company has made sales during the month. 5. Prepaid Insurance: There is a decrease in prepaid insurance as of June 30 by $324 because at the end of the month, a payment of insurance was due resulting in decreasing the prepaid insurance account.
6. Notes Receivable: The balance at the end of the month is zero because Diane Maynard paid her loan of $11,700 resulting in cash coming in the company and notes receivable decreasing or in this case, clearing the account.
7. Land: There is no change in land as of June 30 since land does not depreciate nor can be amortized. The value of the land can change over time depending on the market but in this case, the value does not change.
8. Building: There is a decrease in the value of the building as of June 30 by $1,950 since the accumulated depreciation on the building increases by $1,950 over a month of use which results in decreasing the value of the asset.
9.
Overall, assets increased at the end of the month compared to the beginning by $43,350. This results in purchasing more assets, making sales or by simply making payments or purchasing on credit.
1. Cash: There is an increase of cash as of June 30 by $31,677. This could be the result of the company making sales for cash or making purchases on credit which would explain the increase in accounts payable. Also, payments of insurance were credited from prepaid insurance resulting in no cash being removed from the account.
2. Accounts Receivable: There is an increase in accounts receivable as of June 30 by $4,707. This could be the result of the company making sales on credit.
3. Supplies on hand: There is an increase in supplies on hand as of June 30 by $1,071. This could be the result of the company having purchased more supplies during the month.
4. Merchandise Inventory: There is a decrease in merchandise inventory as of June 30 by $3,315.The reason of the decrease would be that the company has made sales during the month. 5. Prepaid Insurance: There is a decrease in prepaid insurance as of June 30 by $324 because at the end of the month, a payment of insurance was due resulting in decreasing the prepaid insurance account.
6. Notes Receivable: The balance at the end of the month is zero because Diane Maynard paid her loan of $11,700 resulting in cash coming in the company and notes receivable decreasing or in this case, clearing the account.
7. Land: There is no change in land as of June 30 since land does not depreciate nor can be amortized. The value of the land can change over time depending on the market but in this case, the value does not change.
8. Building: There is a decrease in the value of the building as of June 30 by $1,950 since the accumulated depreciation on the building increases by $1,950 over a month of use which results in decreasing the value of the asset.
9.