Sam Company [the firm] was formed on May 31, Year 1, when three owners each invested $12,000. On that same date, one of the owners lent $8,000 to the firm. {We will ignore interest on the borrowed money for this quiz.]
During Year 1, the firm ordered supplies inventory on account at a cost of $1,200. Of the supplies ordered, only 80% were actually delivered. At the end of the year the firm determined it has used supplies worth $820.
During Year 1, the firm paid its suppliers $830 for supplies that had been delivered.
Early in Year 1, the firm collected $11,000 from its clients before anything had been earned.
Later in Year 1, Sam provided services to its clients in the dollar amount of $33,000. Of this $33,000, the clients had paid $10,500 in advance and the remainder will be paid to Sam later.
Sam hired four consultants at a monthly salary of $400 each. These four consultants worked for the firm from June 15, Year 1 through the end of the year. The firm pays its employees on the last day of each month for services rendered during that month. The first payday on July 1 was for only half a month's pay. One of the consultants asked for and was granted a $1,100 advance against his salary for the following year. Another consultant asked the firm to postpone paying her for the last three months of Year 1. This postponement was for some special tax purpose and the postponed amounts will be paid by April of Year 2.
During Year 1, the firm used up utilities with a value of $1,300. However, the firm only paid $980 to the utilities firms during Year 1.
The firm rented an office space on June 15, Year 1, at a monthly cost of $1,800. The contract with the landlord required that the rent be paid on June 15 and December 15 for the six-month periods beginning on those dates. The first payment was required on June 15, Year 1, the day the firm occupied the office space.
Required: Determine the proper amounts that the firm would report in the financial statements prepared at December 31, Year 1. Assume all the accounting was done correctly and that the accounts were properly adjusted at the end of Year 1.