Prepare a Beginning Balance Sheet as of 3/1/20
Partner A $60,000 cash for 45% of the business. Partner B Property, Equipment and Goodwill $72,000 for 55% Information compiled for draft Beginning Balance Sheet Two new land clearing contracts have been signedThese 2 large landscaping contracts make up your Accounts Receivable-One for $5,000 that is now complete and the money will be collected in March. The other is a maintenance agreement for $12,000 to be paid in monthly installments of $1,000. You have collected January and February so there is $10,000 left as a receivable. Bank Balance as of 3/1/20 was $20,000- this is from daily sales generation and the remainder of your initial $60,000 investment. Three quarter ton Truck -$42,000 Truck loan balance $30,000 with three more years on the loan. Large Utility Trailer- $8,000-no liability attached. Land and Building-$35,000-no liability attached. Commercial Mowers, Weedeaters, Blowers, etc... $5,000 -over one year life Small landscaping equipment- less than one year life-$800 Commercial Woodworking Equipment for new Manufacturing Division $20,000 -no loan attached. Small Tractor with various attachments-$15,000 Tractor Loan-Borrowed money through the John Deer manufacturer. Still owe $15,000 with payments of $300 for 5 years. Safety equipment-$1,000- less than one year life Office furniture -$1500-over one year life Computer, accounting software with an inventory and payroll feature. - $2,000 Computer loan $2,000 with for 12 months, no interest. Inventory of raw wood from land clearing jobs-estimated value $2,500 Purchased inventory including wood, nails, glue, paint, patterns etc...that will be used as part of the products. $2,000 Goodwill of $12,000 from the investment agreement. Partner A $60,000 cash for 45% of the business. Partner B Property, Equipment and Goodwill $72,000 for 55% Information compiled for draft Beginning Balance Sheet Two new land clearing contracts have been signedThese 2 large landscaping contracts make up your Accounts Receivable-One for $5,000 that is now complete and the money will be collected in March. The other is a maintenance agreement for $12,000 to be paid in monthly installments of $1,000. You have collected January and February so there is $10,000 left as a receivable. Bank Balance as of 3/1/20 was $20,000- this is from daily sales generation and the remainder of your initial $60,000 investment. Three quarter ton Truck -$42,000 Truck loan balance $30,000 with three more years on the loan. Large Utility Trailer- $8,000-no liability attached. Land and Building-$35,000-no liability attached. Commercial Mowers, Weedeaters, Blowers, etc... $5,000 -over one year life Small landscaping equipment- less than one year life-$800 Commercial Woodworking Equipment for new Manufacturing Division $20,000 -no loan attached. Small Tractor with various attachments-$15,000 Tractor Loan-Borrowed money through the John Deer manufacturer. Still owe $15,000 with payments of $300 for 5 years. Safety equipment-$1,000- less than one year life Office furniture -$1500-over one year life Computer, accounting software with an inventory and payroll feature. - $2,000 Computer loan $2,000 with for 12 months, no interest. Inventory of raw wood from land clearing jobs-estimated value $2,500 Purchased inventory including wood, nails, glue, paint, patterns etc...that will be used as part of the products. $2,000 Goodwill of $12,000 from the investment agreement
