Q1

Investor puts $1,500 cash into business for 50% equity

Buy $200 of inventory

Pay utilities of $250

Buy equipment for $150. Will pay in Q2.

Q2

Sell $100 in coffee mugs (COGS is 20% of revenue). Customer (Tim) will pay in Q3.

Obtain bank loan for $750

Pay bill for equipment of $150

Buy $75 in advertising from Facebook

Q3

Sell $150 worth of coffee (COGS is 40% of revenue). Customer pays in cash

Pay utilities $250

Receive $100 payment from Tim

Buy $50 in inventory

Q4

Depreciate equipment expense $25

Buy company scooter for $2,000. Paid $500 in cash and got a 2-year loan for $1,500

Pay $75 off of scooter loan principle

Pay $10 off of scooter loan interest