INSTRUCTIONS

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?