IN Alignment B15 Number > 1 B 2 INSTRUCTIONS C a 13 The following worksheet is called a Balance Sheet Equation Worksheet. The worksheet lists the key events in the life of UWP over years 1 through 3: each of these events is likely to affect the financial statements of UWP. The impact of the events on the UWP Balance Sheet for years 1 and 2 has been sketched out. a. Using the completed transactions from years 1 and 2 as a guide, fill in the worksheet for year 3. b. Now, prepare an Income Statement, Balance Sheet, and Cash Flow Statement for years 2 and 3. c. Do you agree with all of the accounting assumptions in the worksheet? If not, what would you change? 4 5 6 7 9 11 12 13 15 17 18 19 20 24 25 le Instructions BSE Worksheet Styles E F G K L M ASSETS Cash Filters Vehicles Prepaid Costs LIABILITIES & OWNERS' EQUITY Debt Paid-in Capital Retained E $25,000 $200,000 1540.000 $ 20,000 1$20,000 $100,000) $25,000 $200,000 $40,000 $200 520000 $100,000 YEAR 1 Beginning-of-year activities 1 Founders Investment, HBS Prize Money 2. Alumnus Investment 3 Blue Future Contract Charge 4 Slowsand Filters 5 Motorcycles and Trucks 6 Prepaid Marketing, Brand Ambassador Through-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue, Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract 27 STON sand Filters 28 Motorcycles and Trucks 29 S219.000 SB2,850 1537220 195 600 15120,000 $219,000 (532,850) (537,230) 153,600) ($120,000) 15 10 200 510.000 IS250 1929 SSDOO 1510,200) Y550.000 /S2,500 1529,784) VSE WW 152.667 $1,533 154,000 SON WWWWWW NANLAR instructions Norksheet Bea 92 Type here to search op ly Styles Cells D E F G H Cash J Filters K Vehicles L Prepaid Costs Debt M Paid-in Capital Retained Earnings $17,836 $18,667 $16,000 $87,333 SO $225,000 (585,164) $1,000,000 (5487,500 (5492,500 $487,500 $1,000,000 $492,500 2 ng Balances ning-of-year activities 1 Debt 2 Slowsand Filters 3 Motorcycles and Trucks Sugh-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue, Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract Slowsand Filters Motorcycles and Trucks 16 Repay Debt 17 Interest Charge $8,760,000 151,314,000) 51,489,200) 15 120.000 S325.000 S36,000 S408,000 IS25,000 1565.000 151,191,360 $8,760,000 151,314,000 151,499,200) 15120,000) ($325,000) 1536,000) /S408,000) (575,000) (565,000 $1,191,360 S50,000 152,667 ISB3.855 152,667) 533,833 15102,500) 5900 500 151,000,000 15100.com V5 2,000,000 15100, 0001 YEAR 2 CLOSING TOTALS S2,724,276 S4721334 5406.000 534.666 so $225,000 $3,412,276 Instructions BS Worksheet Type here to search i 92F hp - - - 70 OILLIOL db 000 Formatting Table Styles Format Font Alignment Number Styles Cells C D E F G H 1 J L M N ASSETS LIABILITIES & OWNERS' EQUITY Debt Paid-in Capital Retained Earnings Cash Filters Vehicles Prepaid Costs $2.724, 276 $472,334 $406,000 $34,666 SO $225,000 50 SO SO SO 50 SO AR 3 Dening Balances eginning-of-year activities 1 Slowsand Filters 2 Motorcycles and Trucks Through-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue, Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract Slowsand Filters Motorcycles and Trucks 50 50 $225,000 $4061600 954666 724,276 5470384 YEAR 3 CLOSING TOTALS 0 Instructions BSe Worksheet 92F Read o ar IN Alignment B15 Number > 1 B 2 INSTRUCTIONS C a 13 The following worksheet is called a Balance Sheet Equation Worksheet. The worksheet lists the key events in the life of UWP over years 1 through 3: each of these events is likely to affect the financial statements of UWP. The impact of the events on the UWP Balance Sheet for years 1 and 2 has been sketched out. a. Using the completed transactions from years 1 and 2 as a guide, fill in the worksheet for year 3. b. Now, prepare an Income Statement, Balance Sheet, and Cash Flow Statement for years 2 and 3. c. Do you agree with all of the accounting assumptions in the worksheet? If not, what would you change? 4 5 6 7 9 11 12 13 15 17 18 19 20 24 25 le Instructions BSE Worksheet Styles E F G K L M ASSETS Cash Filters Vehicles Prepaid Costs LIABILITIES & OWNERS' EQUITY Debt Paid-in Capital Retained E $25,000 $200,000 1540.000 $ 20,000 1$20,000 $100,000) $25,000 $200,000 $40,000 $200 520000 $100,000 YEAR 1 Beginning-of-year activities 1 Founders Investment, HBS Prize Money 2. Alumnus Investment 3 Blue Future Contract Charge 4 Slowsand Filters 5 Motorcycles and Trucks 6 Prepaid Marketing, Brand Ambassador Through-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue, Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract 27 STON sand Filters 28 Motorcycles and Trucks 29 S219.000 SB2,850 1537220 195 600 15120,000 $219,000 (532,850) (537,230) 153,600) ($120,000) 15 10 200 510.000 IS250 1929 SSDOO 1510,200) Y550.000 /S2,500 1529,784) VSE WW 152.667 $1,533 154,000 SON WWWWWW NANLAR instructions Norksheet Bea 92 Type here to search op ly Styles Cells D E F G H Cash J Filters K Vehicles L Prepaid Costs Debt M Paid-in Capital Retained Earnings $17,836 $18,667 $16,000 $87,333 SO $225,000 (585,164) $1,000,000 (5487,500 (5492,500 $487,500 $1,000,000 $492,500 2 ng Balances ning-of-year activities 1 Debt 2 Slowsand Filters 3 Motorcycles and Trucks Sugh-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue, Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract Slowsand Filters Motorcycles and Trucks 16 Repay Debt 17 Interest Charge $8,760,000 151,314,000) 51,489,200) 15 120.000 S325.000 S36,000 S408,000 IS25,000 1565.000 151,191,360 $8,760,000 151,314,000 151,499,200) 15120,000) ($325,000) 1536,000) /S408,000) (575,000) (565,000 $1,191,360 S50,000 152,667 ISB3.855 152,667) 533,833 15102,500) 5900 500 151,000,000 15100.com V5 2,000,000 15100, 0001 YEAR 2 CLOSING TOTALS S2,724,276 S4721334 5406.000 534.666 so $225,000 $3,412,276 Instructions BS Worksheet Type here to search i 92F hp - - - 70 OILLIOL db 000 Formatting Table Styles Format Font Alignment Number Styles Cells C D E F G H 1 J L M N ASSETS LIABILITIES & OWNERS' EQUITY Debt Paid-in Capital Retained Earnings Cash Filters Vehicles Prepaid Costs $2.724, 276 $472,334 $406,000 $34,666 SO $225,000 50 SO SO SO 50 SO AR 3 Dening Balances eginning-of-year activities 1 Slowsand Filters 2 Motorcycles and Trucks Through-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue, Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract Slowsand Filters Motorcycles and Trucks 50 50 $225,000 $4061600 954666 724,276 5470384 YEAR 3 CLOSING TOTALS 0 Instructions BSe Worksheet 92F Read o ar