1/21/2016 Mohammed, Saleh, and Mansour (the "Founders") establish Demo Co., a company that imports trendy furniture from Chinese suppliers and sells its products out of a small retail location in Riyadh. To fund startup costs and working capital, the Founders inject SR 1,500,000 in equal proportion into the company's bank checking account and each Four Her receives 10,000 shares in the company with a par value of SR 10 for each share. To reduce operating costs, the Founders agree to manage the business's daily operations until they can afford to hire help

1/22/2016 The Founders sign a one year lease with an option to renew for an additional five years for SR 900,000 and the full payment is

2/22/2016 The company purchases SR 500,000 worth of inventory from a supplier on account. Payment terms are 2/10, n/30. Frieght costs paid upfront by Demo Co for the delivery of the inventory were SR 15,000. Demo Co. chooses to use the perpetual inventory system.

2/26/2016 Payment is made for the purchase of inventory purchased on 2/22/2016 in full settlement of the account.

4/1/2016 The Founders of Demo Co. discussed the opportunity to enter into a SR 2 million sales agreement with a corporate client. If agreed upon, the client would pay for the purchase upfront in cash

5/19/2016 SR 112,000 is used to purchase a delivery truck that is put into service on 6/1/16. The truck is expected to have a useful life of 10 years and no salvage value

6/2/2016 The company delivers SR 250,000 worth of invent a customer ale price of SR 358 000 The customer agrees to pay after 30 days

6/28/2016 SR 25,000 is received from the customer who purchased items on June 2nd. The remaining portion is exchanged for a note payable at 5% interest due June 1, 2017.

7/7/2016 The company receives sR 500,000 from a local bank in exchange for an 8% note payable. The note is due on 7/7/17 and payments are made quarterly.

8/10/2016 -20,000 common shares with a par value of SR 10 are issued in exchange for SR 1,200,000

9/26/2016

The Founders of Demo Co. decide to invest in a small delivery company by buying 2,000 of its 10,000 outstanding shares at a price of SR 100,000.

9/30/2016 Payment is made on the note issued in July

10/1/2016 Demo Co. buys a one-year insurance policy for its Founders at a cost of SR 8,000

10/5/2016 - A customer makes an advance payment of SR 250,000 for some items that will need to be ordered from a supplier in China. The items are expected to be delivered to the customer in January of 2017

10/27/2016 The Company borrows an additional SR 600,000 from the bank at 10% to fund an expansion. The full amount is due with interest on 12/31/2020

10/30/2016 The Founders pay an outsourced accountant SR 20,000 to prepare financial statements for Demo Co

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