HORSE RIDING REALTY COMPAMY BALANCE SHEET As of September 31, 2020 ASSETS LIABILITY Cash $160,000 Accounts Payable $100,000 Accounts Rec $40,000 Wages Payable $50,000 Supplies $8,000 Note Payable 6 $100,000 Prepaid Rent $11,000 Deferred Revenue $50,000 Prepaid Ins $9,000 Total Liability $300,000 Equipment $240,000 EQUITY Acc Depr $20,000 $220,000 Land $52,000 Common Stock $110,000 Total Assets $500,000 Retained Earnings $ 90,000 Total Equity $200,000 Total Liability Equity $500,000 Oct 1 Horse purchase $10,000 of supplies paid cash Oct 2 Horse purchase equipment for $300,000, paid $60,000 in cash this date and signed a 8 note for the balance Full payment of principle and interest due in 2025 This asset has a useful life of five years Oct 3 Horse paid $12,000 cash to cover the office rent for October Oct 5 Horse billed clients for $25,000 of work performed Oct 7 Horse paid employees $50000 in cash for wages earned for September Oct 15 Horse sold 40,000 shares in Horse Riding Reality Stock for $20 a share Cash was received that afternoon Direct deposit Oct 20 Horse announced a cash dividend of $60,000 to be paid to shareholders who owned shares on November 1, 2020 Payment would be made on January 2, 2021 Oct 30 The prepaid insurance listed on the 9 31 20 ending balance sheet was a two year converge period and was placed on the balance sheet on September 30, 2020 Oct 30 Useful life of equipment listed on the prior balance sheet is 10 years Commission Fees earned this month were $220,000 Horses accountants realized October 2020 would be the first month in history that there would be no deferred revenue on the balance sheet Oct 31 Balance on the supplies is $1500 Oct 31 Income Tax Rate for Werner is 20 October 31 Prepare Financial Statements for the Month of October

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HORSE RIDING REALTY COMPAMY

BALANCE SHEET

As of September 31, 2020

ASSETS LIABILITY

Cash $160,000 Accounts Payable $100,000

Accounts Rec. $40,000 Wages Payable $50,000

Supplies $8,000 Note Payable 6% $100,000

Prepaid Rent $11,000 Deferred Revenue $50,000

Prepaid Ins $9,000 Total Liability $300,000

Equipment $240,000 EQUITY

Acc. Depr. $20,000 $220,000

Land $52,000 Common Stock $110,000

Total Assets $500,000 Retained Earnings $ 90,000

Total Equity $200,000

Total Liability & Equity $500,000

Oct. 2 Horse purchase equipment for $300,000, paid $60,000 in cash this date and signed a 8% note for the balance. Full payment of principle and interest due in 2025. This asset has a useful life of five years.

Oct. 15 Horse sold 40,000 shares in Horse Riding Reality Stock for $20 a share. Cash was received that afternoon - Direct deposit.

Oct. 20 Horse announced a cash dividend of $60,000 to be paid to shareholders who owned shares on November 1, 2020. Payment would be made on January 2, 2021.

Oct. 30 The prepaid insurance listed on the 9/31/20 ending balance sheet was a two year converge period and was placed on the balance sheet on September 30, 2020.

Oct. 30 Useful life of equipment listed on the prior balance sheet is 10 years.

Commission Fees earned this month were $220,000. Horses accountants realized October 2020 would be the first month in history that there would be no deferred revenue on the balance sheet.