Jims Shoes is a sole owner and has paid in capital and borrowed money to start his business. He has cash, inventory and a car, as well as, office supplies, shelves and a sign. He owes is shoe supplier some money for his inventory and has a bank loan. Each month he sells a few shoes on credit and has to pay his one employee, as well as, rent, the electric bill and water bill.

During his first month of operations, Jim invests $400 in his company in cash, Jim borrows $500 from his mom, Jim buys 6 pairs $300 worth of shoes on credit from his supplier, Jim pays $200 for rent, Jim buys a car on bank credit for $1,000, Customer Bob buys 1 pair of shoes for $100, Jim buys a sign for $50, and 10 Shelves $10 each, Jim pays the water bill $25 and electric $35, Jim hired Don and paid him $50 to sell his shoes, Jim prepaid $60 for insurance, the annual premium on credit

From the following transactions form a balance sheet and income statement.

1-Mar Cash $400

Owner Equity $400

2-Mar Cash $500

AP-Mom $50

3-Mar Inventory $300

AP-Nike $300

4-Mar Rent Expense $200

Cash $200

5-Mar Automobile $1000

Auto Loan $1000

6-Mar Cash $100

Sales Revenue $100

6-Mar COGS $50

Inventory $50

7-Mar Fixtures $150

Cash $150

8-Mar Utilities $60

Cash $60

9-Mar Wages/Salaries Expense $50

Cash $50

10-Mar Prepaid Insurance $60

AP-Insurance $60

30-Mar Insurance Expense $5

Prepaid Insurance $5