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!

	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