For each accounting event, make the relevant entries in the balance sheet and the P & L. Remember that the starting point for each event is the prior balance sheet. In your P&L, use a tax rate of 21%.

1. Company issues new shares for $2914.

2. Company takes out a loan, payable in 10 years for $2504

3. Company buys equipment for $3250.

4. Company buys brand-building / name recognition advertising with cash for $46.

5. Company buys raw materials with cash for $315.

6. Company takes $241 of raw materials, pays $160 in direct labor (from cash) to manufacture finished products.

7. Company sells $229 worth of finished products on credit for $457. It also pays sales commission of $5.

8. Company sells $172 worth of finished products for cash for $432. It also pays sales commission of $4.

9. Company pays salaries, $123.

10. Company pays utilities and rent, $63.

11. Company pays suppliers' invoives worth $0.

12. Company collects $432 worth of its outstanding invoices.

13. Company depreciates its equipment by $112.

14. Long term interest expense $250.

15. Company buys brand-building / name recognition advertising with cash for $46. 16. Company buys raw materials with cash for $337.

17. Company takes $322 of raw materials, pays $214 in direct labor (from cash) to manufacture finished products.

18. Company sells $234 worth of finished products on credit for $467. It also pays sales commission of $5.

19. Company sells $277 worth of finished products for cash for $555. It also pays sales commission of $6.

20. Company pays salaries, $129.

21. Company pays utilities and rent, $66.

22. Company pays suppliers' invoives worth $0.

24. Company depreciates its equipment by $99.

25. Long term interest expense $250.

	ASSETS			LIABILITIES
	Current assets			Current liabilities
	Cash	0		Accounts payable	0
	Accounts receivable	0		Short-term_debt	0
	Inventory			Non-current liabilities
	Raw materials	0		Long-term_debt	0
	Finished goods	0
	Fixed_assets			EQUITY
	PPE	0		Common_equity	0
	Goodwill	0		Retained_earnings	0

	Sales
	COGS
	Gross profit
	SGA
	Depreciation
	EBIT
	Interest
	EBT
	Tax
	Net income