150 CHAPTER 6 2. An entrepreneur with $52,500 plans to open a convenience store called Kevin's Convenience Store on June 1, 2020, following a two-month start-up phase. Using the schedule of start-up costs provided below, create a pro forma pre-revenue balance sheet and a pro forma start-up phase expense statement, including reconciliations of cash and owner's equity, for Kevin's Convenience Store, LLC. Kevin's Convenience Store, LLC Schedule of Start-up Costs April 2020 May 2020 For the Two Months Ended May 31, 2020 $ 4,000 400 600 200 Rent Utilities Insurance Cleaning and maintenance Food inventory Non-food inventory Checkout counters and equipment Racks and shelving Computers and software Security system Total $ 2,000 400 300 200 10,000 7,500 $ 6,000 800 900 400 10,000 7,500 8,500 6,000 5,000 4,500 $49,600 8,500 6,000 5,000 4,500 $29.200 $20,400 Notes: Rent is paid on the first day of the month to which it applies. Utilities are paid in the month after the services are used. Insurance is paid in the month previous to the month to which it applies. All other costs are paid in the same month as incurred. 150 CHAPTER 6 2. An entrepreneur with $52,500 plans to open a convenience store called Kevin's Convenience Store on June 1, 2020, following a two-month start-up phase. Using the schedule of start-up costs provided below, create a pro forma pre-revenue balance sheet and a pro forma start-up phase expense statement, including reconciliations of cash and owner's equity, for Kevin's Convenience Store, LLC. Kevin's Convenience Store, LLC Schedule of Start-up Costs April 2020 May 2020 For the Two Months Ended May 31, 2020 $ 4,000 400 600 200 Rent Utilities Insurance Cleaning and maintenance Food inventory Non-food inventory Checkout counters and equipment Racks and shelving Computers and software Security system Total $ 2,000 400 300 200 10,000 7,500 $ 6,000 800 900 400 10,000 7,500 8,500 6,000 5,000 4,500 $49,600 8,500 6,000 5,000 4,500 $29.200 $20,400 Notes: Rent is paid on the first day of the month to which it applies. Utilities are paid in the month after the services are used. Insurance is paid in the month previous to the month to which it applies. All other costs are paid in the same month as incurred