i think the skinny sheets are the transactions. i think they want me to use the skinny sheets to put the transactions into those three sheets.

Bert started a bicycle repair business by acquiring funding from investors and creditors. After a successful first year, Bert decided to expand into bicycle sales, as well as repairs. In Year 3, Bert spent money on an advertising campaign to grow the business. By the 4th year he was able to repay some of the money he had borrowed and pay a dividend to stockholders Requirements: 1. Use the Horizontal Transaction Analysis table to record the transactions you were given for each year. (Note: There are multiple combinations of transactions and solutions) (16 points) - Indicate the increase / (decrease) to each account involved in the transaction - Record the Closing Entry for each year by zeroing out the temporary accounts - Calculate the total in each column at the end of the each year. - Permanent account balances will carry forward from one year to the next. 2. Use the Horizontal Transaction Analysis balances and the details from the transactions each year to create the following Financial Statements for each year (24 points) - Income Statement (disregard income taxes) - Statement of Stockholders' Equity - Balance Sheet - Statement of Cash Flows 3. Use the financial statement information and the transaction details to answer the following questions Show all calculations to support your response. (10 points) - What is the remaining balance of Notes Payable in Yr. 5? - How much interest is due for Yr. 5, if no more principal payments are made? - If the equipment is sold for $6,500 cash on 1/1/Yr. 5, how much gain or loss) would there be? - Calculate the Gross Margin for each of the 4 years (Gross Margin = Net income / Net Sales & Service Revenue) Gross Margin indicates the percentage of profit generated on the revenue earned Which year has the highest profitability? - Calculate the percentage of assets funded by creditors, investors and earnings for each year. From creditors: Total Liabilities/Total Assets From investors: Common Stock /Total Assets From earnings: Retained Earnings / Total Assets 4. Submit the project by Monday, 10/7, or Tuesday 10/8 - Must be handwritten and physically turned in (no email submissions) - Turn in: Horizontal Transaction Analysis, Financial Statements & responses to questions Transactions 1-1 Get Funding Sign Note for $20,000 @ 10% Issue Stock for $43,000 1-2 Business Operations Service Revenue $15,000 Operating Expense $9,000 Interest Exp. = Principal x 10%x12/12 1-3 Purchase Equipment @12/31 Purchase a workbench and tools for $16,000 cash; Begin SL Depreciation in Yr. 2 4 yr. useful life. $0 salvage value 2-1 Purchase Inventory for $16,000 cash 2-2 Sell Inventory Sales Revenue $10,000 COGS $4,000 2-3 Business Operations Service Revenue $15,000 Operating Expense $9,000 Depreciation Exp. = cost x 1/4 Interest Exp. Principal x 10%x12/12 Transactions 3-1 Advertising Campaign $5,000 Cash 13-2 Sell Inventory Sales Revenue $17,000 COGS $8,000 3-3 Business Operations Service Revenue $30,000 Operating Expense $18,000 Depreciation Exp. = costx 1/4 Interest Exp. = Principal x 10%x12/12 3-4 Purchase Inventory for $15,000 cash 4-1 Sell Inventory Sales Revenue $19,000 COGS $7,000 4-2 Business Operations Service Revenue $36,000 Operating Expense $13,000 Depreciation Exp = costx 1/4 Interest Exp. Principal x10x12/12 4-3 Make a Loan Payment 12/31 Pay $15,000 on Notes Payable 4-4 Pay Dividends Pay a 15% dividend on the amount invested in Common Stock If there is enough cash & RE (Record Dividend as a reduction Jof Retained Earnings) Year 1 Year 3 Year 4 Year 2 Income Statement Net Sales & Service Revenue Cost of Goods Sold Gross Margin Less: Operating Expenses Depreciation Expense Advertising Expense Interest Expense Net Income Statement of Stockholders' Equity Beginning Common Stock Plus: Common Stock Issued Ending Common Stock Beginning Retained Earnings + Net Income - Dividends Ending Retained Earnings Total Stockholders' Equity Balance Sheet Assets Cash Inventory Equipment Accumulated Depreciation Total Assets Liabilities Notes Payable Total Liabilities Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity Total Liabilities & SE Statement of Cash Flows Net Cashflow from Operating |Net Cashflow from Investing Net Cashflow from Financing Net Change in Cash Beginning Cash Balance Ending Cash Balance Transaction Analysis Balance Sheet Income Statement Assets Liabilities + Stockholders Equity Revenue - Expense Accumulated Notes Payable common stock Depreciation Retained Earnings Cash (Note Type of (Note Type of Revenue) | Expense) + Inventory Equipment Income Statement Assets Balance Sheet Liabilities - Stockholders Equity Accumulated Notes Payable Common Stock es Payable Common Stock Retained Equipment - Depreciation Earnings Revenue. (Note Type of Revenue Expense Note Type of Expense) Cash + Inventory +