Chapter 11, Problem 1COP

Comprehensive Problem

The Accounting Cycle and Preparation of Financial Statements Including a Statement of Cash Flows

Haskins Supply, Inc., supplies industrial tools to local businesses. Haskins Supply’s November 30, 2018, balance sheet follows:

Haskins Supply, Inc. Balance Sheet November 30, 2018
		ASSETS
		Current Assets:
		Cash		$ 26,487
		Accounts Receivable, net of allowance for doubtful
		accounts of $2,140		43,350
		Inventory		87,244
		Supplies		682
		Prepaid Insurance		4,800
		Total Current Assets		162,563
		Long-term assets
		Office Equipment	19,460
		Less: Accumulated Depreciation, Office Equipment	4,880	14,580
		Total Assets		$177,143
		LIABILITIES
		Current Liabilities:
		Accounts Payable		$ 25,673
		Salaries Payable		885
		Total Current Liabilities		26,558
		Long-Term Liabilities:
		Notes Payable. Long-Term		7,500
		Total Liabilities		34,058
		STOCKHOLDERS’ EQUITY
		Common Stock, $10 par value, 100,000 shares
		authorized, 3,000 shares issued and outstanding		30,000
		Paid-in capital in Excess of Par, Common		10,000
		Total Paid-in Capital		40,000
		Retained Earnings		103,085
		Total Stockholders’ Equity		143,085
		Total Liabilities and Stockholders’ Equity		$177,143

During the month of December 2018, Haskins Supply, Inc., had the following transactions: