Amit Kumar

Roll no. X003-14

Kim Fuller Case 1-2


Answer 1
Accounting information Non Accounting information
L & OE as mentioned above Market Demand of product
Depreciation of 1 old Truck , 1 New Truck, 1 PC, 1
Grinding machine + cash
Services from Accountant Zimmer
Cost of Purchase of accounting software Efficiency of the worker and truck driver
Salary to be paid to two worker and one driver
Interest to be paid to the bank
Income statement
Cost of supplies and parts necessary to run and
maintain the business



Answer 2
Opening balance Sheet on February 2011
Assets Liabilities and OE
Current assets Liabilities
Cash from self +10,000
Cash from family +90,000 Credit or A/P to bank 1,12,000
Cash down payment -50,000
Total current asset (A) =50,000
Fixed assets OE
1 old Truck , 1 New
Truck, 1 PC, 1 Grinding
machine
65,000 1 old Truck , 1 New
Truck, 1 PC, 1 Grinding
machine + cash
75,000
warehouse 1,62,000 Family 90,000
Total Fixed asset (B) 2,27,000 Total Owner's Equity 1,65,000

Total Asset (A+B) 2,77,000 Total L& OE 2,77,000


Total Owner's
Equity
1,65,000

Answer 3
a) Fuller should prepare the income and closing balance sheet monthly as he will need to pay monthly
EMI amount.
Answer 4
a) Appreciation of the warehouse
b) He should know the EMI amount, the depreciating amount for the fixed assets
c) Monthly wages of the two workers and one driver.
d)Cost of the supplies and parts to keep the business running
e) Incase new inventory is needed to replace the completely depreciated asset or break down beyond
repair, the purchase cost of replacement machinery should be in account
Case 2-2
Music Mart, Inc

Transaction Asset 1 Asset 2 Asset 3 Asset 4 Asset 5 Total
Assets
[7]=
[2]+
[3]
+[4]+
[5]+[6]
OE Liabilities L&OE
= [8]+
[9]
+[10]+
[11]
[1] [2] [3] [4] [5] [6] [8] [9] [10] [11]

Cash Inventory A/R Pre paid
insurance
Land RE Paid in
Capital
Notes
payable
Creditors
or A/p
Page 43 for
Jan 4
33250 4500 250 25000 12500
T1 5000 5000
T2 2300 -1500 800
T3 -1700 2620 920
T4
-1224 1224
T5 -6000
24000 18000
T6 3000 -12000 -9000
T7
0 0 0 0 0 0 0
T8
-1000 -1000
T9
-750 -750
T10 0 0 0 0 0 0 0
T11 -6000 -6000
T12
1310 -850 460
Transaction
total
25636 4700 2620 1224 12000 46180 680 25000 6500 14000 46180

Therefore, Balance sheet on 4 January is
Assets Liabilities and OE
Current assets Liabilities
Cash 25636 Notes Payable 6500
Inventory 4700 Account payable 14000
Account Receivable 2620
Total current asset (A) 32956 Total Liability 20500
Fixed assets OE
Pre paid insurance 1224 Paid in capital 25000
Land 12000 Retained Earnings 680
Total Fixed asset (B) 13224 Total Owner's Equity 1,65,000

Total Asset (A+B) 46180 Total L& OE 46180