Statement of Financial Position

As of December 31, 2019

ASSETSLIABILITIES

Cash$45,000Note Payable [1] 6%$10,000

Acc. Rec. 35,000Acc. Payable 24,000

Inventory 70,000Note Payable [2] 296,000

Supplies 600

Building $400,000Total Liabilities $330,000

Acc. Depr. (7,600) 392,400STOCKHOLDER EQUITY

Land 28,000

Common Stock $2 par $120,000

Total Assets $571,000 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 Januarys 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.

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.