Establish company and invest $1000 equity

Purchase plain T-shirts for $5 each

Fixed screen cost of $100

Variable print cost of $0.75 per T-Shirt

Sold 25 T-shirts at $10 each for cash

Sold 25 T-shirts at $10 each on credit

show the calculations clearly

Accruals-The Cornerstone Case Illustration - Accrual Accounting Income Statement Revenues T-Shirt sales $500.00 Balance Sheet (Accrual basis) Assets Cash $275.00 T-Shirt inventory 337.50 Receivables 250.00 Total assets $862.50 Expenses T-Shirts costs $250.00 Screen depreciation 50.00 Printing charges 37.50 Total expenses Equity (337.50) Beginning equity Add net income $162.50 Total equity $700.00 162.50 $862.50 Net income Accruals-The Cornerstone Case Illustration - Accrual Accounting Income Statement Revenues T-Shirt sales $500.00 Balance Sheet (Accrual basis) Assets Cash $275.00 T-Shirt inventory 337.50 Receivables 250.00 Total assets $862.50 Expenses T-Shirts costs $250.00 Screen depreciation 50.00 Printing charges 37.50 Total expenses Equity (337.50) Beginning equity Add net income $162.50 Total equity $700.00 162.50 $862.50 Net income