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Extreme Edge, Inc. Financial Statement Articulation Cash Reconciliation: Accounts 2013 2012 Beginning cash balanceJanuary 1 $30 $0 +/- net change in cash (per the statement

Extreme Edge, Inc.

Financial Statement Articulation

Cash Reconciliation:

Accounts

2013

2012

Beginning cash balanceJanuary 1

$30

$0

+/- net change in cash (per the statement of cash flows)

15

30

Ending cash balance (per the December 31 balance sheet)

$45

$30

1. Reconcile cash for 2014.

Contributed Capital Reconciliation (#1):

Accounts

2013

2012

Beginning contributed capitalJanuary 1

$420

$0

+ Common stock issued (per the statement of shareholders equity)

8

42

+ Additional paid in capital (per the statement of shareholders equity)

72

378

Ending contributed capital (per the December 31 balance sheet)

$500

$420

2. Reconcile contributed capital for 2014.

Contributed Capital Reconciliation (#2):

Accounts

2013

2012

Beginning contributed capitalJanuary 1

$420

$0

+ Cash from the issue of common stock (per the statement of cash flows)

80

420

Ending contributed capital (per the December 31 balance sheet)

$500

$420

3. Reconcile contributed capital for 2014.

Retained Earnings (#1):

Accounts

2013

2012

Beginning retained earningsJanuary 1

$25

$0

+ Net income (per the statement of shareholders equity)

21

33

- Dividends (per the statement of shareholders equity)

(2)

(8)

Ending retained earnings (per the December 31 balance sheet)

$44

$25

4. Reconcile retained earnings for 2014.

Retained Earnings (#2):

Accounts

2013

2012

Beginning retained earningsJanuary 1

$25

$0

+ Net income (per the income statement)

21

33

- Dividends (per the statement of cash flows)

(2)

(8)

Ending retained earnings (per the December 31 balance sheet)

$44

$25

5. Reconcile retained earnings for 2014.

Equipment (#1):

Accounts

2013

2012

Purchase of equipment (per the statement of cash flows)

$100

$500

Plus: net or book value of equipmentfrom previous December 31

400

0

Net or book value of equipmentJanuary 1

500

500

Less: Depreciation expense (per the income statement)

(120)

(100)

Net or book value of equipment (per the December 31 balance sheet)

$380

$400

6. Reconcile equipment for 2014.

Equipment (#2):

Accounts

2013

2012

Purchase of equipment (per the statement of cash flows)

$100

$500

Plus: cost of previous years equipment purchases

500

0

Total cost of equipmentJanuary 1

600

500

Less: Accumulated depreciation (per the income statements)*

(220)

(100)

Net or book value of equipment (per the December 31 balance sheet)

$380

$400

* accumulated depreciation for 2013 of $220 (2012 depreciation expense of $100 + 2013 depreciation

expense of $120)

7. Reconcile equipment for 2014.

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