1.

Fuller information needs to manage a business are

- Accounting information that would need to manage the business includes financial statements,
Budget reports, and Cash flow statements
- Non-accounting information includes market trend, customer feedback, studying external
environment and employee performance measure.

2. it's challenging to provide exact values for Fuller's company's assets and liabilities. Fuller
should consider consulting with a financial professional or an accountant for a more accurate
assessment based on the company's specific circumstances. To draw up a beginning of
business we should consider

Assets
Current assets
Cash $50,000
Inventories 10,000
Supplies 1,000
Prepaid rent 4,000
Total Current assets $65,000

Non- Current Assets

Warehouse building $162,000
Grinding Equipment 80,000
Computer Equipment 65,000
Total NC Assets 307,000
Total assets $372,000

Liabilities
Accounts payable $10,000
Mortgage Payable 112,000
Total Liabilities $122,000

Equity = Assets – Liabilities

E = $372,000 - $122,000
E = $250,000

3. Income statement is a financial statement used to determine a Profit and loss

The general construction in creating a Income statement is

a. Header
Fuller company
Income statement
for the period ended dec. 31 20xx
b. Revenues
Sales , service fee , other income

c. Expenses
 Salaries , Supplies , miscellaneous, Depreciation
d. Net income
Revenues - Expenses

Fuller company
Income statement
for the period ended dec. 31 20xx

Revenues $xx

Expenses
Salaries xx
Supplies xx
miscellaneous xx
Depreciation xx (xx)
Net Income $xx

3.The frequency of conducting a profit and loss analysis should be annual analysis its suitable
for this type of business with less financial fluctuations.

4. a. Purchases and Sales of Assets:

- Record any acquisition or disposal of assets, such as equipment, vehicles, or property.
b. Depreciation and Amortization:
- Depreciation for tangible assets and amortization for intangible assets need to be recorded to
accurately reflect the decrease in the value of assets over time.
c. New Loans or Repayment of Debt:
- Record any new loans taken or the repayment of existing debt.
d. Accruals and Deferrals:
- Record changes in accrued liabilities (e.g., unpaid expenses) and deferred liabilities (e.g.,
prepaid revenue).
e. Investments by Owners:
- Record any new capital contributions by the owners.
f. Withdrawals by Owners:
- Track any withdrawals made by the owners, which reduce their equity stake.
g. Retained Earnings:
- Changes in retained earnings due to profits or losses need to be recorded.

CASE 4–1 PC Depot

1. Journal entires
 1. Barbara Thompson loaned 165,000 with a 15% interest rate and invest 65,000 to PC depot retail
store which she establish.
2. Mrs. Thompson Paid the rent for the month of September for 1485.
3. Purchase merchandise on account worth 137,000
4. Purchase furnitures and fixtures with a 10 year useful life worth 15,500
5. Paid a radio broadcasting for airing the advertisement of the business for 1320
6. Paid wages of 935
7. Purchase supplies worth 1100
8. Paid utilities for the month worth 275

2. T- Account

CASH Merchandise Inventory

Debit Credit Debit Credit
165,000 1,485 137,500
15,500 137500
1,320
935
1,100
275
20,615
144,385

Furnitures and Fixtures Loans Payable

Debit Credit Debit Credit
15,500 100,000
15,500 100,000

Propiertors Capital Office Supplies Expense

Debit Credit Debit Credit
65,000 1,100
65,000 1,100

Rent Expense Wages Expense

Debit Credit Debit Credit
1,485 935
1,485 935

Advertising Expense Utilities Expense

Accounts Payable
Debit Credit Debit
Debit Credit
1,320 275 137,500
1,320 275 137,500
3.

(9) Cash 38,000

Sales 38,000

(10) Accounts receivable 14,850

Sales 14,850

(11) Cash 3,614

Accounts receivable 3614

(12) Accounts Payable 96,195

Cash 96,195

(13) Merchandise Inventory 49,940

Accounts payable 49,940

(14) Cost of Goods Sold 38,140

Merchandise Inventory 38,140

(15) Wages expense 688

Cash 688

(16) Wages Expense 440

Wages Payable 440

(17) Rent expense 1485

Cash 1485

(18) Insurance Expense 2,310

Cash 2310

(19) Utilities Expense 226

Utilities Payable 226

(20) Sign 1760

Cash 660
Accounts payable 1100

4. these are the accounts that required legder because it is still part of the unadjusted trial balance we
cant create a UTB without Posting this accounts

CASH
Debit Credit
38,000 96,195
3,614 688
1485
2310
660
41,614 101,338
59724
 Merchandise Inventory Accounts Receivable
Debit Credit Debit Credit
49,940 38,140 14,850 3614
11800 11236

Accounts Payable Wages Payable

Debit Credit Debit Credit
96,195 49,940 440
1100 440
51040
45155

Utilities Payable
Sales
Debit Credit
Debit Credit
226
38,000
226
14,850
52,850

Cost of goods sold

Rent expense
Debit Credit
Debit Credit
38,140
1485
38,140
1485

Wages expense
Debit Credit
440
688
1128
Utilities expense
sign Debit Credit
Debit Credit 226
1760 226
Insurance expense
1760 Debit Credit
2,310
2,310
 PC Depot Retail Store
Unadjusted Trial Balance
For the period Ended Sept 30, 20xx
Account title Debit Credit
Cash 84,661
Accounts Receivable 11236
Merchandise Inventory 149,300
Furnitures and fixtures 15,500
Sign 1,760
Accounts payable 92,345
Loans Payable 100,000
Wages payable 440
Utilities payable 226
Propiertors capital 65,000
sales 52,850
Cost of goods sold 38,140
Office supplies expense 1,100
Wages expense 2063
Rent expense 2,970
Advertising expense 1,320
Utilities expense 501
Insurance expense 2,310
310861 310861

PC depot retail store

Income Statement
For the period Ended Sept.30

Cash Sales $38,000

Credit Sales 14,850
Net Sales $52,850
Cost of goods sold (38,140)
Gross profit $14,710
Expenses
Office supplies expense 1,100
Wages Expense 2,063
Rent Expense 2,970
Advertising Expense 1,320
Utilities Expense 501
Insurance Expense 2,310 (10264)
Net Income $4,446
 PC depot retail store
Balance Sheet
As of Sept.30

Assets
Current Assets
Cash $84,661
Accounts Receivable 11,236
Merchandise Inventory 149,300
Total Current Assets $245,197

Furnitures and fixtures $15,500

Sign 1,760
Total Non-Current Assets 17,260
Total Assets $262,457

Liabilities
Accounts Payable $92,345
Loans Payable 100,000
Wages payable 440
Utilities payable 226
Total Liabilities $193,011

Equity
Proprietor capital $65,000
Net Income 4,446
Total Equity 69,446
Total Liabilities and Equity $262,457