Bottle Grinding

CASE 1-2 KIM FULLER* - BOTTLE GRINDING COMPANY

Question 1

Accounting information Non-Accounting Information

1) Used truck 1) Grind machine workers

2) Truck drive 2) Accountant assistances - Zimmer

3) Trailers $ 65,000 3) Contracts with bottling companies

4) Grinding machine 4) Truck Driver

5) Personnel computer 5) Accounting Software Package

6) Warehouse $ 162,000

7) Sibling's Investment $ 90,000

8) Mortgage loan $ 112,000

9) Filler's Savings $ 75,000

Question 2

Assets Liabilities

Cash* $ 50,000 Mortgage* $ 112,000

Equipment $ 65,000

Warehouse $ 162,000 Owner's Equity

Paid-in Capital* $ 165,000

$ 277,000 $ 277,000

Note:

Cash* = Fuller's Saving + Sibling's Investment – Equipmnt Cost – Warehouse Depst

= $75,000 + $90,000 - $65,000 - $50,000

= $ 50,000

Mortgage*