Meetings out during men new you work with everyone else. chers condu (30K 10 Homework 1 Problem 1 Everyone in the class invested $50.00 each in Brayden's Bodacious Biffs. For your investment, you each got 1 share of common stock. Assume there are 100 of you. During 2020, a piece of land for future expansion of the business for $35,000, $5,000 down and the rest to be paid next year. Also during the year, the company purchased 10,000 Biffs for $8 each and sold 9,000 for $20 each. The company also paid a security deposit of $3,000 on the building it is renting, rent of $12,000, salaries of $24,000, and the interest on the loan of $10,000. Taxes for 2020 were 30% and these will be paid in 2021. How did you do? Prepare an Income Statement and a Balance Sheet. Comment on the results Read pages 12-18 and read the article "What It Takes to Be Great". Remember this article is fair game for all tests and quizzes. 200 Problem 2 You have decided to start a business selling widgets. You form a corporation, Widgets, Inc. You paid $10 per share for 1,000 shares of stock on January 1, 2020. Next the company borrowed $30,000 from your Aunt Suzie. For the $30,000 borrowed from your aunt, the company agrees to pay back that amount on December 31, 2026 and to pay interest at 10% at the end of each year. On January 1, 2020, the company bought 6 widgets for $3,000 each. During the year, it sold 4 widgets for $8,000 each. The company also paid a security deposit of $1,000, advertising expense of $2,000, and 12 months of rent, $12,000. Widgets, Inc. bought a delivery van on December 31st that cost $20,000, putting $5,000 down on the van and agreeing to pay the balance next year. On December 31 the company paid the first year's interest to Aunt Suzie of $3,000. the tax rate is 30% of income before taxes and the taxes will be paid in 2021. Prepare T accounts, an income statement, statement of owners' equity and a balance sheet. I was taught that the way of progress is neither swift nor easy. Madame Marie Curie Human beings, who are almost unique in having the ability to learn from the experience of others, are also remarkable for their apparent disinclination to do so. Douglas Adams The average person spends only 10 minutes a day speaking.