If possible please try to keep the format of the pictures as

If possible please try to keep the format of the pictures as this is how my professor wants and it will help me learn the correct way. Thank you. I appreciate it.

Requirements 1. Prepare an analysis of Bawmer Company\'s transactions. 2. Prepare a balance sheet as of November 30, 20XO, and an income statement for the month of November. Ignore income taxes. 3. Given these sparse facts, analyze Bawmer\'s performance for November and its financial position as of November 30, 20X0.

Solution

2.

3.

Assets

=

Liabilities + Stockholders\' Equity

Event

Cash

+

A/R

+

Merch.

+

Prepaid

+

Equip.&

N/P

+

A/P

+

Paid-in

+

Retained

Inv.

Rent

Fixt.

Capital

Earnings

a

350000

+

+

+

+

=

+

+

350000

+

b

-20000

+

+

20000

+

+

=

+

+

+

c

+

+

40000

+

+

=

+

40000

+

+

d

52000

+

68000

+

-20000

+

+

=

+

+

+

100000

e

17000

+

-17000

+

+

+

=

+

+

+

f

-25000

+

+

+

+

=

+

-25000

+

+

g

-10000

+

+

+

+

76800

=

66800

+

+

+

h

-4500

+

+

+

4500

+

=

+

+

+

i

-10800

+

+

+

+

=

+

+

+

-10800

j

-31000

+

+

+

+

=

+

+

+

-31000

k

+

+

+

+

-1600

=

+

+

+

-1600

l

+

+

+

-1500

+

=

+

+

+

-1500

Balance

317700

+

51000

+

40000

+

3000

+

75200

=

66800

+

15000

+

350000

+

55100

a,b,c,e,f and h are direct entries.

d. The sale value is to be added to, and the cost of the goods sold is to be deducted from, retained earnings.

The net effect will be addition of 100,000 (52,000+68,000-20,000)

g. Equipment to be added , cash payment should be deducted from cash and Note payable to be added to the column.

All expenses are to be deducted (minus sign) and all incomes are to be added to retained earnings.