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Practice Makes Perfect Inc. was started on July 1 of the current year. Practice Makes Perfect provides piano lessons for students of all abilities. You

Practice Makes Perfect Inc. was started on July 1 of the current year. Practice Makes Perfect provides piano lessons for students of all abilities. You are the founder, president, office manager, etc. You have not yet hired an accountant but your bank is asking for an income statement and balance sheet for the first month of operation. Using the following information put each transaction into the equation format given in Table 3.14. Then prepare a simple income statement and a balance sheet to present to the bank. Transactions:

a. You started your company with $100,000 that you raised by selling stock in Practice Makes Perfect Inc. to your family and friends.

b. Knowing that you would need additional funds, you presented your business plan to the bank and were able to get a $50,000 loan at 10 percent.

c. You purchased three pianos for $16,000 each, paying cash. You believe these pianos will last five years before you replace them. At the end of the five years, you think you can sell each piano for $1,000.

d. You spent $2,000 on supplies, which you charged on account.

e. The newspaper bills you $500 for the advertisement you ran. You plan on paying the bill next month.

f. Rent for the space you have leased is $1,000 a month, which you paid.

g. The first month, you bill students $2,000 for lessons.

h. You pay your two part-time piano teachers $500 each at the end of the month.

i. One of your students paid the $200 invoice you sent earlier in the month.

j. You write the check for the interest owed for the month.

k. You adjust the supplies account for $300 of sheet music that you gave to students.

l. You record one month of depreciation on the pianos.

Please complete the following accounting transactions along with a simple income statement, balance sheet, and statemtent of cash flows. The problem has already been solved. I need for you to put the previous transactions in a Quick books plus page with the business name Josh's LLC. You can get a free trial version for 30 days.I need EBIT to be (1967) and ending cash to be 152,500. Once complete please attach a PDF of the profit and loss statement along with the balance sheet. THANKS!image text in transcribedimage text in transcribed

Assets Liabilities Equity
Cash + Accounts Receivable + Inventory + Equipment - Accu: Depn = Notes Payable + Accounts payable + Wages payable = Common stock + Retained earnings + Revenues - Expenses
a 100000 100000
b 50000 50000
c -48000 48000
d -2000 2000
e 500 500
f -1000 1000
g 2000 2000
h -1000 1000
i 200 -200
j -417 417
k -300 300
l 750 750
97783 1800 1700 48000 750 50000 500 100000 2000 3967
Income statement
Revenue 2000
Expenses:
Advertisement expense 500
Rent expense 1000
Faculty fee 1000
Supplies expense 300
Depreciation expense 750
Interest expense 417 3967
Net loss -1967
Balance sheet
Assets
Current Assets:
Cash 97783
Accounts receivable 1800
Supplies 1700 101283
Equipment 48000
Accumulated depreciation -750 47250
148533
Liabilities & Equity
Current liabiities:
Accounts payable 500 500
Notes payable 50000
Total liabilities 50500
Equity:
Common stock 100000
Retained earnings -1967 98033
148533
Statement of cash flows
Cash flow from operating activities:
Net Income -1967
Adjustments:
Depreciation expense 750
Increase in receivables -1800
Increase in inventory (supplies) -1700
Increase in accounts payable 500 -2250
Net cash used by operating activities -4217
Cash flow from investing activities:
Equipments purchased -48000
Net cash used by investing activities -48000
Cash flow from financing activities;
Common stock issued 100000
Notes payable 50000
Net cash from financing activities 150000
Increase in cash & equivalents 97783
Beginning balance of cash equivalents 0
Ending balance of cash & equivalents 97783
Current Liabilities Accounts Payable Accruals Wages payable Total Current Liabilities Long Term Debts Notes Payable Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 52,500 52,500 100,000 100,000 152,500 Current Liabilities Accounts Payable Accruals Wages payable Total Current Liabilities Long Term Debts Notes Payable Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 52,500 52,500 100,000 100,000 152,500

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