solve the questions and prepare a set of financial statements for quarter ending 30- sep - 2020
SPRING BREAK INC. Statement of Financial Position June 30, 2020 Liabilities Assets 0000) 04000 cash Cash $1,000,000 Notes Payable 12% $60,000 Accounts Receivable $10,000 Accounts Payable S10,000 Total $70,000 640 Inventory $10,000 Common Stock Porvalue 8C Land $50,000 80,000 SHARES S640,000 8 Equipment $220,000 Retained earnings S560,000 Acc. Depr. ( S20,000) $200.000 Total $1.200.000 Total Assets $1,270,000 Total Liabilities & Equity $1,270,000 Cash 1. July 1 - Purchased a building for $600,000. Only $100,000 in cash was paid this date and Spring Break signed an 8% note for the balance. Useful life is on the building is 40 years. July 1 - Equipment purchased on this date for $500,000. Spring Break Inc. elected to sign a 10% note for the full amount of the purchase price. Payment on the note will be yearly and the first payment is due July 1, 2021. July 20 - Spring Break paid $12,000 for a 3-year fire and casualty liability pe insurance contract. Effective date of the coverage is July 1, 2020. 4000 Cash 4. July 28 - Sold 100,000 shares of common stock for $12 per share. 200000 g>100000 200.000 (40 5. July 31 - Purchased $80,000 of inventory. Company paid $10,000 the rest 8%450000 4000/306 6. July 31 Paid S20,000 on the building loan entered into on July 1, 2020. 20,000 3388 126/2 (Node payabe) 338 7. Aug. 15 Company received $145,000 for service work completed this month. O O send Ecker pabebe dug 3.2020mbatey paid $20,000 to the bank for interest and principal on the 2 38671366 = 105.66 31 Septi Spring Break announced a dividend of 10 cents per share would be 2000 paid to all record owners as of October 15, 2020.700000 .com 78808 8000 Acu.cornerstoc 10. Sept. 30 - Paid S16,000 for wages. 11. Sept. 30 - Paid in full the amount owed for the July 31, 2020 purchases. Tax Rate is 15% - Equip Useful life 5 years Prepare a set of financial statements for Quarter Ending 920-2020 NOT on account. = 109 48338 16 ARE SPRING BREAK INC. Statement of Financial Position June 30, 2020 Liabilities Assets 0000) 04000 cash Cash $1,000,000 Notes Payable 12% $60,000 Accounts Receivable $10,000 Accounts Payable S10,000 Total $70,000 640 Inventory $10,000 Common Stock Porvalue 8C Land $50,000 80,000 SHARES S640,000 8 Equipment $220,000 Retained earnings S560,000 Acc. Depr. ( S20,000) $200.000 Total $1.200.000 Total Assets $1,270,000 Total Liabilities & Equity $1,270,000 Cash 1. July 1 - Purchased a building for $600,000. Only $100,000 in cash was paid this date and Spring Break signed an 8% note for the balance. Useful life is on the building is 40 years. July 1 - Equipment purchased on this date for $500,000. Spring Break Inc. elected to sign a 10% note for the full amount of the purchase price. Payment on the note will be yearly and the first payment is due July 1, 2021. July 20 - Spring Break paid $12,000 for a 3-year fire and casualty liability pe insurance contract. Effective date of the coverage is July 1, 2020. 4000 Cash 4. July 28 - Sold 100,000 shares of common stock for $12 per share. 200000 g>100000 200.000 (40 5. July 31 - Purchased $80,000 of inventory. Company paid $10,000 the rest 8%450000 4000/306 6. July 31 Paid S20,000 on the building loan entered into on July 1, 2020. 20,000 3388 126/2 (Node payabe) 338 7. Aug. 15 Company received $145,000 for service work completed this month. O O send Ecker pabebe dug 3.2020mbatey paid $20,000 to the bank for interest and principal on the 2 38671366 = 105.66 31 Septi Spring Break announced a dividend of 10 cents per share would be 2000 paid to all record owners as of October 15, 2020.700000 .com 78808 8000 Acu.cornerstoc 10. Sept. 30 - Paid S16,000 for wages. 11. Sept. 30 - Paid in full the amount owed for the July 31, 2020 purchases. Tax Rate is 15% - Equip Useful life 5 years Prepare a set of financial statements for Quarter Ending 920-2020 NOT on account. = 109 48338 16 ARE
