1. Complete the following comparative Pro Forma Balance Sheet and Reconciliations of Cash and Equity for The Unique Gifts Shoppe using The Percentage of Sales Method and the assumptions listed below: 2020 2021 2022 No fived assets will be sold or abandoned in 2021. S10,000 of Computers and Software will be purchased in 2021. Net Income for 2021 is expected to equal S115,200. The owners will take $100,000 of distributions in 2021. The Unique Gifts Shoppe, LLC Pro Forma Balance Sheets December 31, 2020 and December 31, 2021 The Unique Gifts Shoppe, LLC Pro Forma Reconcifations of Cash and Owners Equity For the Year Ended December 31, 2021 12612020 12612021 Resoncitiation of Cash Cash Prepaid Insurance Inventory S 14,885 1,350 187.112 Beginning Cash Add Net Income for 2021 Add: Depreciation Expense for 2021 Adjustments for Changes in Non-Cash Total Current Assets 203347 9.400 Checkout Counters and Furniture 22,500 7500 Assets and Liabiities: Shelving Computers and Software 12.500 Less: Accumubted Deprecas950 Net Fixed Assets 33,000 Total Assets S 236.347 Accounts Payable Payroll Payable Payroll Taxes Payable Utilities Payable Sales Tax Payable Total Liabilities S 25,800 4,800 720 485 9,000 40,805 Less: Distributions to Owners in 2021 100,000 Ending Cash Owners' Equity 195.542 Beginning Owners' Equity S 195542 Add: Net Income for 2021 Less: Distributions to Owners in 2021 Ending Owners' Equity Total I ibilities and Equity $ 7 100,000 1. Complete the following comparative Pro Forma Balance Sheet and Reconciliations of Cash and Equity for The Unique Gifts Shoppe using The Percentage of Sales Method and the assumptions listed below: 2020 2021 2022 No fived assets will be sold or abandoned in 2021. S10,000 of Computers and Software will be purchased in 2021. Net Income for 2021 is expected to equal S115,200. The owners will take $100,000 of distributions in 2021. The Unique Gifts Shoppe, LLC Pro Forma Balance Sheets December 31, 2020 and December 31, 2021 The Unique Gifts Shoppe, LLC Pro Forma Reconcifations of Cash and Owners Equity For the Year Ended December 31, 2021 12612020 12612021 Resoncitiation of Cash Cash Prepaid Insurance Inventory S 14,885 1,350 187.112 Beginning Cash Add Net Income for 2021 Add: Depreciation Expense for 2021 Adjustments for Changes in Non-Cash Total Current Assets 203347 9.400 Checkout Counters and Furniture 22,500 7500 Assets and Liabiities: Shelving Computers and Software 12.500 Less: Accumubted Deprecas950 Net Fixed Assets 33,000 Total Assets S 236.347 Accounts Payable Payroll Payable Payroll Taxes Payable Utilities Payable Sales Tax Payable Total Liabilities S 25,800 4,800 720 485 9,000 40,805 Less: Distributions to Owners in 2021 100,000 Ending Cash Owners' Equity 195.542 Beginning Owners' Equity S 195542 Add: Net Income for 2021 Less: Distributions to Owners in 2021 Ending Owners' Equity Total I ibilities and Equity $ 7 100,000
