Bob has worked relentlessly to build his new business over the last month. In a state of complete exhaustion, he falls asleep at his kitchen table with a partially eaten ham sandwich in his left hand and a half-empty can of Red Bull in his right hand. Suddenly he finds himself in the middle of a nightmare where he has started his business, lots of customers are shouting at him, "Where are my widgets?" and he hasn't got any. Not only that, but he realizes that he doesn't have ANYTHING: no capital, no building, no widgets, zipl Bob needs your help! Recreate a dream version of his business for him. As soon as possible record the 8 transactions below, using the attached journal sheets. His journal and general ledger are blank. However, the account names are still present in the ledger (use those, see the journal sheet)! 1. Bob invests $25,000 in cash into BWW at a price of $1 per share (par value $1 per share). 2. Bob sells 10,000 shares to his second cousin, Zeke, for $2.50 per share (par value $1 per share). 3. Bob borrows $10,000 from his old school friend, Yara, payable in 2 years. The interest rate on the loan is 7% per year, payable every 6 months. 4. Bob buys a used school bus for $25,000 in cash. He is sure this baby will hold LOTS of widgets (this is a dream, remember). 5. Bob rents an old barn for an office and warehouse. He pays $2,000 dollars as the rent for the first two months and another $8,000 as a security deposit that he will get back at the end of the 3-year lease. 6. Bob buys an old kitchen table for $100 from his mother. He plans to use it as a desk. His mom gives Bob 60 days to pay her. 7. Bob buys a collection of 37 mixed widgets from another old friend Wilbur. He pays Wilbur $25,000 and promises to pay him another $5,000 next month. 8. Bob sells 11 widgets to Vern's Virtual Framistans, a major Framistan producer in the next town. Right now, Bob has lots of cash, so he tells Vern that he can pay next month. The 11 widgets cost Bob a total of $11,000. Bob thinks he charged Vern 20% over cost, but in the middle of his dream Bob forgets! Go ahead and record the sale at a 20% markup over cost. What does it all mean? Prepare BWW's financial statements based on the situation after transaction #8. Did Bob make a profit? In the dream Bob thinks he has lots of cash left. How much cash does Bob really have? Financial Statements Balance Sheet Assets: Total Assets Liabilities and shareholders' Equity Liabilities: Equity: Retained Earnings: (Net Income from Income Statement) Total Liabilities and Equity Income Statement Revenue: Expenses: Net Income "Closing" Entry* Start $ $ $ $ $ T1 T2 T3 T4 T5 T6 T7 TB Dream Results