ASTRO Inc.

Statement of Financial Position

December 31, 2018

Assets Liabilities

Cash $259,000 Notes Payable 8% $60,000

Inventory $6,000 Accounts Payable $40,000

Prepaid Insurance $3,000 Total $100,000

Supplies $4,000 Common Stock $5 par $140,000

Land $6,000 Excess of par $60,000

Building $480,000 Retained earnings $418,000

Acc. Depr. ( $40,000) $440,000 Total $618,000

Total Assets $718,000 Total Liabilities & Equity $718,000

You are asked to prepare, in good financial form, a set of financial statements for Saratoga Inc. for the quarter ending 3/31/2019.

Jan. 1 ASTRO purchased equipment for $70,000 and signed a note for the entire cost. The interest rate on the note is 6%. This loan requires monthly payments of $2,000. Monthly payments include interest and principle. Useful life is 5 years.

Jan. 1 ASTRO purchased on this date for $100,000. Useful life for this machine is 10 years. ASTRO elected to sign a note for the full amount of the purchase price. The note has a 10% rate of interest. Payment on the note will be yearly and the first payment is due December 31, 2019.

Jan. 10 Purchased $80,000 of inventory. The company paid in full on this date.

Jan. 15 Issued 200,000 shares of common stock of ASTRO Inc. for $12 per share. All cash received on this date.

Jan. 20 ASTRO purchased $50,000 of inventory on account.

Jan. 27 Sales to a customer amounted to $590,000. Received $18,000 in cash on this date.

Feb. 1 ASTRO made a $2,000 monthly note payment in cash. This note was created on January 1, 2019.

Feb. 15 Salary and wage expense were paid in the amount of $26,000.

Feb. 27 The $2,000 monthly note payment was made. This note was entered into Jan. 1, 2019.

Feb. 27 Received payment in full for the sales generated on Jan. 27, 2019.

Mar. 15 ASTRO paid $9,000 for advertising.

Mar. 18 Dividends declared to shareholders for record owners on March 31, 2019 - to be paid on April 1, 2019. The amount of the dividend is $1 per share.

Mar. 31 Salary and wages paid in the amount of $5,000.

Mar. 31 Supply Inventory was $1,000.

Mar. 31 - Sales to customer amounted to $35,000 and no discounts were given. Cash was received for the full price.

Mar. 31 - Inventory [merchandise] at March 31, 2019 was $10,000.

Mar. 31 - ASTRO paid wages of $23,000 this date

Mar. 31 - Assume the tax rate is 15% for ASTRO Inc.

Mar. 31 ASSUME that the prepaid insurance of $3,000 listed on the balance sheet dated December 31, 2018 is the cost of the insurance policy from January 1, 2019 to December 31, 2019.

Building has a useful life of 20 years.

CREATE the following

Statement of Revenue & Expenses {Income statement}

Statement of Retained Earnings

Statement of Financial Position {Balance Sheet}

Tee accounts

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