Lemonade Stand Accounting Balance Sheet, Income Statement, and Cash Flow Statement

BUSINESS SCENARIO Assume an accounting period of 1 week. You start a lemonade business and this is what you do in your first week (all of the below occurs during week 1): . You invest $30 in your lemonade business. . You get a $30 loan from the bank. . You go to the grocery store to buy lemons and sugar. Your ingredients can make 80 glasses of lemonade. Your total cost is $40. You pay $20 in cash and $20 is charged to your account at the grocer. Your brother makes a batch of lemonade for 40 glasses and charges $2 in labor (cash). You sell the 40 glasses at $1 each. You receive cash for 20 glasses and the other 20 glasses are purchased on account. You repay $15 of the bank loan. The banker wants $2 in interest (cash). The neighbors where you have your lemonade stand ask you to buy an insurance policy. . . . The insurance agent offers you a ten-week policy for the summer which costs $10 payable in advance (you have to pay for the entire policy in cash now, but you only expense one week in this accounting period). You purchase a lemonade stand for $25. You also buy a tiny patch of land from a friend's family for $5. You pay for the stand and the land with cash. You depreciate the lemonade stand $2/week including this week. A customer pays $5 for five glasses he bought on account. . his week. Please fill out an ending balance sheet, income statement, and cash flow statement for t