Search 9:44 AM Mon Mar 9 86% 0 Nevada Inc. (3).doc Statement of Financial Position As of December 31, 2019 ASSETS LIABILITIES Cash $45,000 $10,000 Note Payable [1] 6% Acc. Payable Note Payable [2] 24,000 ble 121 296,000 Acc. Rec. 35,000 Inventory 70,000 Supplies 600 Building $400,000 Acc. Depr. (7,600) 392,400 Land 28,000 Total Liabilities $330,000 STOCKHOLDER EQUITY Total Assets $571,000 Common Stock $2 par $120,000 Excess of Par 80,000 Retained Earnings 41,000 Total Equity $241,000 Total Liability & Equity $571,000 1. Jan. 1- Purchased for $18,000 in cash, $20,000 worth of equipment. This equipment has a useful life of five years. 2. Jan. 2 - 200,000 shares of Common Stock sold. Selling price per share was $15 dollars per share. Cash received from this was $3,000,000. 3. Jan. 3 - Advertising expense of $3,000 was paid in cash 4. Jan. 5 - A two-year insurance policy secured for $1,200. A cash payment made and the policy effective period of coverage is from January 1, 2020 through December 31, 2021. 5. Jan. 30 - January's Note 2 monthly payment made in the amount of $6,000. Rate of interest was a fixed rate of 10%. 6. Feb. 15 - Services provided and $100,000 in cash was $100,000 received. 7. Feb. 16 - Wages paid for $30,000. Search 9:44 AM Mon Mar 9 86% 0 Nevada Inc. (3).doc 8. Feb. 28 - A note payment for Note Number [2] paid in the amount of $7,000. 9. Mar. 1 - Purchased $14,000 worth of inventory. Only $5,000 paid at the time of purchase. 10. Mar. 1 - Billed customer $34,000 for work completed. 11. Mar. - Purchased equipment for $100,000. A part payment of $10,000 was made a note was signed for the balance. This note has a 7% interest rate. 12. Mar. 1-Paid in cash $30,000 for Feb wages. 13. Mar. 10 - Marketing expenses of $13,000 paid this date. 14. Mar. 20 - Declared a dividend of $2 per share for all shares own by shareholders on April, 2020. 15. Mar. 30 - End of the quarter supply inventory was $100. 16. Mar. 30 - Received a utility bill for the quarter ending March 31, 2020. 17. Mar. 31 - 20,000 more shares sold at a price of $18 per share. 18. Mar. 30 - Income Tax Rate was 20%. PREPARE THE Income Statement; Statement of Retained Earnings; Statement of Financial Position (Balance Sheet] for the QUARTER ENDING 3/31/20 Notes: Building has a 20 year useful life. All Equipment has a useful life of 5 years. Search 9:44 AM Mon Mar 9 86% 0 Nevada Inc. (3).doc Statement of Financial Position As of December 31, 2019 ASSETS LIABILITIES Cash $45,000 $10,000 Note Payable [1] 6% Acc. Payable Note Payable [2] 24,000 ble 121 296,000 Acc. Rec. 35,000 Inventory 70,000 Supplies 600 Building $400,000 Acc. Depr. (7,600) 392,400 Land 28,000 Total Liabilities $330,000 STOCKHOLDER EQUITY Total Assets $571,000 Common Stock $2 par $120,000 Excess of Par 80,000 Retained Earnings 41,000 Total Equity $241,000 Total Liability & Equity $571,000 1. Jan. 1- Purchased for $18,000 in cash, $20,000 worth of equipment. This equipment has a useful life of five years. 2. Jan. 2 - 200,000 shares of Common Stock sold. Selling price per share was $15 dollars per share. Cash received from this was $3,000,000. 3. Jan. 3 - Advertising expense of $3,000 was paid in cash 4. Jan. 5 - A two-year insurance policy secured for $1,200. A cash payment made and the policy effective period of coverage is from January 1, 2020 through December 31, 2021. 5. Jan. 30 - January's Note 2 monthly payment made in the amount of $6,000. Rate of interest was a fixed rate of 10%. 6. Feb. 15 - Services provided and $100,000 in cash was $100,000 received. 7. Feb. 16 - Wages paid for $30,000. Search 9:44 AM Mon Mar 9 86% 0 Nevada Inc. (3).doc 8. Feb. 28 - A note payment for Note Number [2] paid in the amount of $7,000. 9. Mar. 1 - Purchased $14,000 worth of inventory. Only $5,000 paid at the time of purchase. 10. Mar. 1 - Billed customer $34,000 for work completed. 11. Mar. - Purchased equipment for $100,000. A part payment of $10,000 was made a note was signed for the balance. This note has a 7% interest rate. 12. Mar. 1-Paid in cash $30,000 for Feb wages. 13. Mar. 10 - Marketing expenses of $13,000 paid this date. 14. Mar. 20 - Declared a dividend of $2 per share for all shares own by shareholders on April, 2020. 15. Mar. 30 - End of the quarter supply inventory was $100. 16. Mar. 30 - Received a utility bill for the quarter ending March 31, 2020. 17. Mar. 31 - 20,000 more shares sold at a price of $18 per share. 18. Mar. 30 - Income Tax Rate was 20%. PREPARE THE Income Statement; Statement of Retained Earnings; Statement of Financial Position (Balance Sheet] for the QUARTER ENDING 3/31/20 Notes: Building has a 20 year useful life. All Equipment has a useful life of 5 years