Snow, Sun and Fun Inc. is a business operating in Canada and several northern areas of the US.

During the winter they sell snow removal equipment - shovels, ice melt etc. In the summer they

sell pool maintenance equipment as well as gear for kayaks and canoes. They began their

operations on January 1

st, 2017. Please prepare a set of financial statements for the first month

of operations. You will use the quiz on the Coursera site to answer several questions about key

accounts.

1) Shareholders contributed $125,000 in exchange for their common stock.

2) SSF signed a lease for its warehouse and offices, paying $18,000 in advance for occupancy of

six months.

3) SSF acquired a forklift and storage fixtures. They paid $20,000 in cash and agreed to pay

another $28,000 in three years (ignore interest). The equipment is expected to last 4 years (48

months).

4) SSF paid $210,000 to purchase shovels and snow removal items for resale. All items were

purchased on account with payment due in three months or less.

5) Sales of $260,000 were made on account. The merchandise had originally cost $180,000.

6) Collections of $150,000 were made from customers. Payments of $140,000 were made to

suppliers.

7) Employees earned $5,000 in wages for the month of January. The company uses electronic

deposits, so amounts for paychecks are transferred into the employee's accounts on the last day

of the month when wages were earned.

8) Paid a dividend of $15,000 to the shareholders.