1) Utah Night Skies finished up its 1st 6 months in business You are asked to prepare a quick forecast (Profit Loss) for the next fiscal year anticipating a 75 growth in revenue except for vehicle lease revenue which is expected to grow 200 expenses are also expected to grow in proportion (excluding other income, depreciation, loss flood, gain (loss) sale) Use the provided Profit Loss statement as your starting point 2) Also, you anticipate buying 12 new off road vehicles equally over the 4 quarters with the purchase being done in the middle month of the quarter Full month of depreciation in the month purchased Honda ATVs (4) 25,000 each life of 6 years with residual of $12,000 each Polaris ATVs (4) 18,000 each life of 5 years with residual of $8,000 each Jeep Rubicon (4) 40,000 each life of 7 years with residual of $18,000 each Compare the amount of depreciation under the following methods 1) Straight line (use this method for 1 above) 2) Double Declining balance and 3) Sum of the years digits over the 1 st two years of the vehicles life 3) You anticipate selling the 2013 Jeep in Jul 2024 for $30,000 Show the journal entry for the sale and the supporting information supporting your numbers (include in 1 above) Utah Night Skies, LLC Profit and Loss December 2023 Total Dec 2023 Jan Dec 2023 (YTD) Income UNS Backpack Sales 26,875 00 225,635 00 UNS Excursion Revenue 50,800 00 172,075 00 UNS Other Income 20 00 UNS Sales Discounts 193 50 1,122 70 UNS Sales Returns Allowances 10,750 00 10,750 00 UNS Sleeping Bag Sales 36,380 00 36,380 00 UNS Vehicle Lease Revenue 11,500 00 38,250 00 Total Income $ 114,611 50 $ 460,487 30 Cost of Goods Sold UNS Cost of Sales Backpack 10,125 00 133,455 00 UNS Cost of Sales Sleeping Bags 21,658 00 21,658 00 Total Cost of Goods Sold $ 31,783 00 $ 155,113 00 Gross Profit $ 82,828 50 $ 305,374 30 Expenses UNS Advertising 3,500 00 21,000 00 UNS Bad Debt Expense 6,277 15 14,718 75 UNS Bank Service Charge 0 00 UNS Business Meals 573 50 UNS Cell Phone 160 00 644 00 UNS Charitable Contributions 34,580 00 34,808 00 UNS Custodial Cleaning 225 00 1,615 00 UNS Dues Membership Fees 1,250 00 UNS Insurance (Building) 275 00 1,650 00 UNS Insurance (Liability) 311 11 1,866 66 UNS Interest Expense 508 60 UNS Internet 360 00 2,660 00 UNS Legal Accounting 7,100 00 10,400 00 UNS Mileage Per Diem 1,928 98 11,107 71 UNS Office Supplies 615 00 4,037 00 UNS Postage Delivery 133 00 851 00 UNS Repairs Maintenance 1,770 00 8,644 00 UNS Salaries Expense 19,600 00 61,900 00 UNS Taxes Payroll 2,107 00 6,738 25 UNS Telephone 161 00 942 00 UNS Utilities 1,245 00 7,159 00 UNS Worker's Compensation 150 00 600 00 Total Expenses $ 80,498 24 $ 193,673 47 Net Operating Income $ 2,330 26 $ 111,700 83 Other Income UNS Interest Income 250 75 702 34 UNS Other Income (Misc ) UNS Gain (Loss) on Sale of Fixed Assets 156 25 Total UNS Other Income (Misc ) $ 0 00 $ 156 25 Total Other Income $ 250 75 $ 546 09 Other Expenses UNS Depreciation 1,992 13 10,448 38 UNS Loss Due to Fire 1,000 00 1,000 00 Total Other Expenses $ 2,992 13 $ 11,448 38 Net Other Income $ 2,741 38 $ 10,902 29 Net Income $ 411 12 $ 100,798 54 Thursday, Apr 06, 2023 07 09 09 AM GMT 7 Accrual Basis Utah Night Skies, LLC Profit and Loss December 2023 Total Dec 2023 Jan Dec 2023 (YTD) Income UNS Backpack Sales 26,875 00 225,635 00 UNS Excursion Revenue 50,800 00 172,075 00 UNS Other Income 20 00 UNS Sales Discounts 193 50 1,122 70 UNS Sales Returns Allowances 10,750 00 10,750 00 UNS Sleeping Bag Sales 36,380 00 36,380 00 UNS Vehicle Lease Revenue 11,500 00 38,250 00 Total Income $ 114,611 50 $ 460,487 30 Cost of Goods Sold UNS Cost of Sales Backpack 10,125 00 133,455 00 UNS Cost of Sales Sleeping Bags 21,658 00 21,658 00 Total Cost of Goods Sold $ 31,783 00 $ 155,113 00 Gross Profit $ 82,828 50 $ 305,374 30 Expenses UNS Advertising 3,500 00 21,000 00 UNS Bad Debt Expense 6,277 15 14,718 75 UNS Bank Service Charge 0 00 UNS Business Meals 573 50 UNS Cell Phone 160 00 644 00 UNS Charitable Contributions 34,580 00 34,808 00 UNS Custodial Cleaning 225 00 1,615 00 UNS Dues Membership Fees 1,250 00 UNS Insurance (Building) 275 00 1,650 00 UNS Insurance (Liability) 311 11 1,866 66 UNS Interest Expense 508 60 UNS Internet 360 00 2,660 00 UNS Legal Accounting 7,100 00 10,400 00 UNS Mileage Per Diem 1,928 98 11,107 71 UNS Office Supplies 615 00 4,037 00 UNS Postage Delivery 133 00 851 00 UNS Repairs Maintenance 1,770 00 8,644 00 UNS Salaries Expense 19,600 00 61,900 00 UNS Taxes Payroll 2,107 00 6,738 25 UNS Telephone 161 00 942 00 UNS Utilities 1,245 00 7,159 00 UNS Worker's Compensation 150 00 600 00 Total Expenses $ 80,498 24 $ 193,673 47 Net Operating Income $ 2,330 26 $ 111,700 83 Other Income UNS Interest Income 250 75 702 34 UNS Other Income (Misc ) UNS Gain (Loss) on Sale of Fixed Assets 156 25 Total UNS Other Income (Misc ) $ 0 00 $ 156 25 Total Other Income $ 250 75 $ 546 09 Other Expenses UNS Depreciation 1,992 13 10,448 38 UNS Loss Due to Fire 1,000 00 1,000 00 Total Other Expenses $ 2,992 13 $ 11,448 38 Net Other Income $ 2,741 38 $ 10,902 29 Net Income $ 411 12 $ 100,798 54 Thursday, Apr 06, 2023 07 09 09 AM GMT 7 Accrual Basis

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1) Utah Night Skies finished up its 1st 6 months in business. You are asked to prepare a quick forecast (Profit & Loss) for the

1) Utah Night Skies finished up its 1st 6 months in business. You are asked to prepare a quick forecast (Profit & Loss) for the next fiscal year anticipating a 75% growth in revenue except for vehicle lease revenue which is expected to grow 200%; expenses are also expected to grow in proportion (excluding other income, depreciation, loss flood, gain/(loss) sale). Use the provided Profit & Loss statement as your starting point.

2) Also, you anticipate buying 12 new off-road vehicles equally over the 4 quarters with the purchase being done in the middle month of the quarter. Full month of depreciation in the month purchased. Honda ATVs (4): 25,000 each; life of 6 years with residual of $12,000 each Polaris ATVs (4): 18,000 each; life of 5 years with residual of $8,000 each Jeep Rubicon (4): 40,000 each; life of 7 years with residual of $18,000 each Compare the amount of depreciation under the following methods: 1) Straight-line (use this method for #1 above); 2) Double Declining balance; and 3) Sum-of the years digits over the 1^st two years of the vehicles life.

3) You anticipate selling the 2013 Jeep in Jul. 2024 for $30,000. Show the journal entry for the sale and the supporting information supporting your numbers (include in #1 above).

Utah Night Skies, LLC
Profit and Loss
December 2023

	Total
	Dec 2023	Jan - Dec 2023 (YTD)
Income
UNS Backpack Sales	26,875.00	225,635.00
UNS Excursion Revenue	50,800.00	172,075.00
UNS Other Income		20.00
UNS Sales Discounts	-193.50	-1,122.70
UNS Sales Returns & Allowances	-10,750.00	-10,750.00
UNS Sleeping Bag Sales	36,380.00	36,380.00
UNS Vehicle Lease Revenue	11,500.00	38,250.00
Total Income	$ 114,611.50	$ 460,487.30
Cost of Goods Sold
UNS Cost of Sales - Backpack	10,125.00	133,455.00
UNS Cost of Sales - Sleeping Bags	21,658.00	21,658.00
Total Cost of Goods Sold	$ 31,783.00	$ 155,113.00
Gross Profit	$ 82,828.50	$ 305,374.30
Expenses
UNS Advertising	3,500.00	21,000.00
UNS Bad Debt Expense	6,277.15	14,718.75
UNS Bank Service Charge		0.00
UNS Business Meals		573.50
UNS Cell Phone	160.00	644.00
UNS Charitable Contributions	34,580.00	34,808.00
UNS Custodial/Cleaning	225.00	1,615.00
UNS Dues / Membership Fees		1,250.00
UNS Insurance (Building)	275.00	1,650.00
UNS Insurance (Liability)	311.11	1,866.66
UNS Interest Expense		508.60
UNS Internet	360.00	2,660.00
UNS Legal & Accounting	7,100.00	10,400.00
UNS Mileage Per Diem	1,928.98	11,107.71
UNS Office Supplies	615.00	4,037.00
UNS Postage/Delivery	133.00	851.00
UNS Repairs & Maintenance	1,770.00	8,644.00
UNS Salaries Expense	19,600.00	61,900.00
UNS Taxes - Payroll	2,107.00	6,738.25
UNS Telephone	161.00	942.00
UNS Utilities	1,245.00	7,159.00
UNS Worker's Compensation	150.00	600.00
Total Expenses	$ 80,498.24	$ 193,673.47
Net Operating Income	$ 2,330.26	$ 111,700.83
Other Income
UNS Interest Income	250.75	702.34
UNS Other Income (Misc.)
UNS Gain (Loss) on Sale of Fixed Assets		-156.25
Total UNS Other Income (Misc.)	$ 0.00	-$ 156.25
Total Other Income	$ 250.75	$ 546.09
Other Expenses
UNS Depreciation	1,992.13	10,448.38
UNS Loss Due to Fire	1,000.00	1,000.00
Total Other Expenses	$ 2,992.13	$ 11,448.38
Net Other Income	-$ 2,741.38	-$ 10,902.29
Net Income	-$ 411.12	$ 100,798.54



Thursday, Apr 06, 2023 07:09:09 AM GMT-7 - Accrual Basis

Utah Night Skies, LLC
Profit and Loss
December 2023

	Total
	Dec 2023	Jan - Dec 2023 (YTD)
Income
UNS Backpack Sales	26,875.00	225,635.00
UNS Excursion Revenue	50,800.00	172,075.00
UNS Other Income		20.00
UNS Sales Discounts	-193.50	-1,122.70
UNS Sales Returns & Allowances	-10,750.00	-10,750.00
UNS Sleeping Bag Sales	36,380.00	36,380.00
UNS Vehicle Lease Revenue	11,500.00	38,250.00
Total Income	$ 114,611.50	$ 460,487.30
Cost of Goods Sold
UNS Cost of Sales - Backpack	10,125.00	133,455.00
UNS Cost of Sales - Sleeping Bags	21,658.00	21,658.00
Total Cost of Goods Sold	$ 31,783.00	$ 155,113.00
Gross Profit	$ 82,828.50	$ 305,374.30
Expenses
UNS Advertising	3,500.00	21,000.00
UNS Bad Debt Expense	6,277.15	14,718.75
UNS Bank Service Charge		0.00
UNS Business Meals		573.50
UNS Cell Phone	160.00	644.00
UNS Charitable Contributions	34,580.00	34,808.00
UNS Custodial/Cleaning	225.00	1,615.00
UNS Dues / Membership Fees		1,250.00
UNS Insurance (Building)	275.00	1,650.00
UNS Insurance (Liability)	311.11	1,866.66
UNS Interest Expense		508.60
UNS Internet	360.00	2,660.00
UNS Legal & Accounting	7,100.00	10,400.00
UNS Mileage Per Diem	1,928.98	11,107.71
UNS Office Supplies	615.00	4,037.00
UNS Postage/Delivery	133.00	851.00
UNS Repairs & Maintenance	1,770.00	8,644.00
UNS Salaries Expense	19,600.00	61,900.00
UNS Taxes - Payroll	2,107.00	6,738.25
UNS Telephone	161.00	942.00
UNS Utilities	1,245.00	7,159.00
UNS Worker's Compensation	150.00	600.00
Total Expenses	$ 80,498.24	$ 193,673.47
Net Operating Income	$ 2,330.26	$ 111,700.83
Other Income
UNS Interest Income	250.75	702.34
UNS Other Income (Misc.)
UNS Gain (Loss) on Sale of Fixed Assets		-156.25
Total UNS Other Income (Misc.)	$ 0.00	-$ 156.25
Total Other Income	$ 250.75	$ 546.09
Other Expenses
UNS Depreciation	1,992.13	10,448.38
UNS Loss Due to Fire	1,000.00	1,000.00
Total Other Expenses	$ 2,992.13	$ 11,448.38
Net Other Income	-$ 2,741.38	-$ 10,902.29
Net Income	-$ 411.12	$ 100,798.54



Thursday, Apr 06, 2023 07:09:09 AM GMT-7 - Accrual Basis