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info and charts. 1-1 Start Up Funding Sign Note for $34,000 @ 8% Issue Stock for $38,000 1-2 Purchase Equipment @1/1 Purchase displays and tools

info and charts.

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1-1 Start Up Funding Sign Note for $34,000 @ 8% Issue Stock for $38,000 1-2 Purchase Equipment @1/1 Purchase displays and tools for $18,000 cash; SL Depreciation 5 yr. useful life, $0 salvage value 1-3 Purchase Inventory for $20,000 cash 1-4 Service & Sales Revenue Service Revenue $21,000 Sales Rev $24,000; COGS $12,000 1-5 Expenses Total Operating Exp. $24,000 Depreciation Exp. = equip. cost x 1/5 Interest Expense = Note Pay. yr. end balance x 8% 2-1 Purchase Inventory for $16,000 cash 2-2 Service & Sales Revenue Service Revenue $23,100 Sales Rev $26,400; COGS $13,200 2-3 Expenses Total Operating Exp. $25,000 Depreciation Exp. = equip. cost x 1/5 Interest Expense = Note Pay. yr. end balance x 8% 2-4 Dividend Payment Common Stock x 5% 3-1 Purchase Inventory for $20,000 cash 3-2 Sales & Service Revenue Service Revenue $27,700 Sales Rev $31,600; COGS $15,800 3-3 Debt Repayment @ 1/1/yr3 1/4 of Original Note 3-4 Expenses Total Operating Exp. $30,000 Depreciation Exp. = equip. cost x 1/5 Interest Expense = Note Pay. yr. end balance x 8% 3-5 Dividend Payment Common Stock x 10% 4-1 Purchase Inventory for $24,000 cash 4-2 Sales & Service Revenue Service Revenue $31,800 Sales Rev $36,400; COGS $18,200 4-3 Debt Repayment @ 1/1/yr4 1/4 of Original Note 4-4 Operating Expenses Total Operating Exp. $26,000 Depreciation Exp. = equip. cost x 1/5 Interest Expense = Note Pay. yr. end balance x 8% 4-5 Dividend Payment Common Stock x 10% Year 1 Year 2 Year 3 Year 4 Income Statement 0 0 0 0 0 0 olo 0 0 0 Statement of Stockholders Equity 0 0 0 0 0 0 0 0 ol 0 0 Service Revenue Sales Revenue Total Revenue Cost of Goods Sold B Operating Expenses 2 Depreciation Expense -0 Interest Expense -1 Total Expense 12 Net Income 13 14 15 Beginning Common Stock 16 Plus: Common Stock Issued 17 Ending Common Stock 18 Beginning Retained Earnings 19 Net Income 20 - Dividends 21 Ending Retained Earnings 22 Total Stockholders Equity 23 24 25 Assets 26 Cash 27 Inventory 28 Equipment 29 Accumulated Depreciation 30 Total Assets 31 Liabilities 32 Notes Payable 33 Total Liabilities 34 Stockholders Equity 35 Common Stock 36 Retained Earnings 37 Total Stockholders Equity 38 Total Liabilities & SE 39 40 41 Net Cashflow from Operating 42 Net Cashflow from Investing 43 Net Cashflow from Financing 0 0 0 0 0 Balance Sheet 0 0 0 0 0 0 0 0 0 0 0 0 0 Statement of Cash Flows

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