Milo Corp. opened Monday, June 1st with inventory of $50,000 and cash in the bank of $70,000. These were its only assets. All start-up financing came from the owner's personal funds. The one employee also started on June 1st and is paid $1,000 a week every Friday for the week just ending (the work week is 5 days). Payroll is the only expense. On June 5th, the company made a credit sale of $9,000 out of inventory. On June 10th, it received $12,000 of new inventory, purchased on credit with repayment due in 45 days. The company bought a delivery truck for $10,000 cash on June 25th. The books were closed on Tuesday, June 30th. Show the amounts in the following balance sheet accounts as of Tuesday, June 30th. Cash Accounts Receivable Inventory Fixed Assets Accounts Payable. Accruals
Milo Corp. opened Monday, June 1st with inventory of $50,000 and cash in the bank of $70,000. These were its only assets. All start-up financing came from the owner's personal funds. The one employee also started on June 1st and is paid $1,000 a week every Friday for the week just ending (the work week is 5 days). Payroll is the only expense. On June 5th, the company made a credit sale of $9,000 out of inventory. On June 10th, it received $12,000 of new inventory, purchased on credit with repayment due in 45 days. The company bought a delivery truck for $10,000 cash on June 25th. The books were closed on Tuesday, June 30th. Show the amounts in the following balance sheet accounts as of Tuesday, June 30th. Cash Accounts Receivable Inventory Fixed Assets Accounts Payable. Accruals
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Milo Corp. opened Monday, June 1st with inventory of $50,000 and cash in the bank of
$70,000. These were its only assets. All start-up financing came from the owner's
personal funds.
The one employee also started on June 1st and is paid $1,000 a week every Friday for
the week just ending (the work week is 5 days). Payroll is the only expense.
On June 5th, the company made a credit sale of $9,000 out of inventory. On June
10th, it received $12,000 of new inventory, purchased on credit with repayment due in
45 days. The company bought a delivery truck for $10,000 cash on June 25th.
The books were closed on Tuesday, June 30th.
Show the amounts in the following balance sheet accounts as of Tuesday, June 30th.
Cash
Accounts Receivable.
Inventory.
Fixed Assets
Accounts Payable
Accruals
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