Marion Boats

1.)

Analysis of Marion Boats, Inc. by Mr. William Hurley

General Journal

Oct 1 Cash 71,600

Legal Fees Expense 400

Common Stock (1,800 shares) 72,000

(Fred Cunningham)

Oct 1 Cash 19,600

Legal Fees Expense 400

Common Stock (500 shares) 20,000

(Bill Cunningham)

Nov 1 Cash 40,000

Acc. Payable (Bank Loan) 40,000

Nov 1 Land 72,000

Cash 72,000

Nov 11 Land 9,000

Acc. Payable (Deferred until May 1996) 9,000

(Demolished old building)

Dec 31 Cash 40,000

Acc. Payable (Sports Boats) 40,000

Jan 2 Buildings 140,000

Acc. Payable (Holmes Construction) 140,000

Jan 31 Acc. Payable (Holmes Construction) 40,000

Cash 40,000

Feb 28 Acc. Payable (Holmes Construction) 40,000

Cash (From Sport Boats Loan) 40,000

Mar 1 Boats 153,000

Cash 153,000

Mar 1 Cash 112,000

Trade-In Allowances 58,000

Acc. Receivable 13,600

Revenue (Boat Sales) 183,600

Mar 16 Dep. Expense (Trade-In Boats) 3,200

Accum. Depreciation (Trade-In Boats) 3,200

Mar 24 Cash (Fred Cunningham) 680

Cash 680

Mar 25 Cash 54,800

Trade-In Allowances for Boats 54,800

Mar 27 Acc. Payable (Holmes Construction) 60,000

Cash 60,000

Mar 28 Buildings 2,400

Cash 2,400

(Additional materials)

Mar 29 Architect Expense 2,600

Acc. Payable (Architect) 2,600

Mar 29 Acc. Payable (Architect) 2,600

Cash 2,600

Mar 30 Acc. Payable (Bank Loan) 40,000

Interest Expense 2,000

Cash 42,000

Mar 30 Salaries Expense 24,000

Cash 24,000

(For 6 months for both brothers)

2.)

Marion Boats, Inc.

Balance Sheet

For Period Ended March 31, 1996

Assets:

Cash (98,680)

Boats 156,200

Buildings 142,400

Land 81,000

Acc/Rec. 13,600

Less: Accum Dep.(3,200)

Total Assets: 291,320

Liabilities:

Acc/Pay 49,000

Stockholder’s Equity:

Common Stock 92,000

R/E 183,600...