11:18 Assignment 1.pdf Since 2004, Mary Anne Spier has been designing, producing and selling unique handcrafted goods. She began by selling her products to a small number of specialty retailers. Then, in 2013, she opened her own retail store and started selling directy to customers. Spier noorporated the business as MAS Inc. on January 1, 2018, with an initial stock issue of 2,000 shares of common stock at a par value of $3.50 per share. Mary Anne is the principal stockholder of MAS Inc Sales have increased steadily each year since operations began at the retail location, and Spier feels that the purchase of a specialized computer system is needed to accommodate continued growth. Spier wishes to finance the purchase of the system through a long-term note from a commercial bank. In support of Spier's loan request, the Last National Bank asked her to submit an income statement for MAS Inc. for the first five months of 2018 and a balance sheet as of May 31, 2018 Spier assembled the following information from the cash basis records of the corporation for use in preparing the financial statements requested by the bank 1. The check register showed the following 2018 deposits through May 31 Sales of common stock Cash sales 5 7,000 23,770 5.320 Bank loan proceeds 53,630 2. The folowing amounts were disbursed through May 31, 2018. Materials (used in producing goods) Salaries and wages Utiries Insurance premium Furniture and fxtures Principal and interest payment on bank loan 6.500 110 2800 3.300 3,000 390 $33,264 . Unpaid invoices at May 31, 2018, were as follows Open With Print 11:18 Assignment 1.pdf 6. The note evidencing the 3-year bank loan is dated January 1, 2018, and states a st rate of 10% The loan requires quarterly payments on April 1. 2 of 3 ber 1, and January 1 consisting of equal principal payments plus arest since the last payment 7. Mary Anne Spier receives a salary of $900 on the last day of each month. Her two part-time employees have been paid through May 25, 2018, and were due an additional $240 on May 31, 2018 8. Funiture and fixtures costing $3,000 were purchased on January 2, 2018 and have an estimated useful Ide of 5 years and a salvage value of $600. These are the only fixed assets currently used in the business Straight -line depreciation is to be used for book purposes 9. Rent was paid for 9 months in advance on January 2, 2018 10. A one-year insurance policy was purchased on January 2, 2018 11.MAS Inc.is subyect to an income tax rate of 25% 12. Payments and collections pertaining to the unincorporated business through December 31, 2017, were not included in the records of the corporation, and no cash was transferred from the unincorporated business to the corporation Instructions: S0 points Using the accrual basis of accounting. prepare for MAS Inc. an Excel spreadsheet that presents (1) A multiple-step income statement for the 5 months ended May 31, 2018. (For the sake of simplicity, in caloulating COGS, you need only include the cost of materials and finished goods inventory, do not attermpt to include labor and overhead costs (2) A dassified balance sheet as of May 31, 2018. For maximum credt, please provide any supporting calculations for the amounts presented n the financial statements Open With Print 11:18 Assignment 1.pdf Since 2004, Mary Anne Spier has been designing, producing and selling unique handcrafted goods. She began by selling her products to a small number of specialty retailers. Then, in 2013, she opened her own retail store and started selling directy to customers. Spier noorporated the business as MAS Inc. on January 1, 2018, with an initial stock issue of 2,000 shares of common stock at a par value of $3.50 per share. Mary Anne is the principal stockholder of MAS Inc Sales have increased steadily each year since operations began at the retail location, and Spier feels that the purchase of a specialized computer system is needed to accommodate continued growth. Spier wishes to finance the purchase of the system through a long-term note from a commercial bank. In support of Spier's loan request, the Last National Bank asked her to submit an income statement for MAS Inc. for the first five months of 2018 and a balance sheet as of May 31, 2018 Spier assembled the following information from the cash basis records of the corporation for use in preparing the financial statements requested by the bank 1. The check register showed the following 2018 deposits through May 31 Sales of common stock Cash sales 5 7,000 23,770 5.320 Bank loan proceeds 53,630 2. The folowing amounts were disbursed through May 31, 2018. Materials (used in producing goods) Salaries and wages Utiries Insurance premium Furniture and fxtures Principal and interest payment on bank loan 6.500 110 2800 3.300 3,000 390 $33,264 . Unpaid invoices at May 31, 2018, were as follows Open With Print 11:18 Assignment 1.pdf 6. The note evidencing the 3-year bank loan is dated January 1, 2018, and states a st rate of 10% The loan requires quarterly payments on April 1. 2 of 3 ber 1, and January 1 consisting of equal principal payments plus arest since the last payment 7. Mary Anne Spier receives a salary of $900 on the last day of each month. Her two part-time employees have been paid through May 25, 2018, and were due an additional $240 on May 31, 2018 8. Funiture and fixtures costing $3,000 were purchased on January 2, 2018 and have an estimated useful Ide of 5 years and a salvage value of $600. These are the only fixed assets currently used in the business Straight -line depreciation is to be used for book purposes 9. Rent was paid for 9 months in advance on January 2, 2018 10. A one-year insurance policy was purchased on January 2, 2018 11.MAS Inc.is subyect to an income tax rate of 25% 12. Payments and collections pertaining to the unincorporated business through December 31, 2017, were not included in the records of the corporation, and no cash was transferred from the unincorporated business to the corporation Instructions: S0 points Using the accrual basis of accounting. prepare for MAS Inc. an Excel spreadsheet that presents (1) A multiple-step income statement for the 5 months ended May 31, 2018. (For the sake of simplicity, in caloulating COGS, you need only include the cost of materials and finished goods inventory, do not attermpt to include labor and overhead costs (2) A dassified balance sheet as of May 31, 2018. For maximum credt, please provide any supporting calculations for the amounts presented n the financial statements Open With Print