The goal is to create a balance sheet and income statement. This is the work I have done so far:
You decide to open up your very own moving company. After three months of business, you realize your current accounting system (throwing all your invoices and moving schedules into a drawer) is no longer working. Additionally, you would like to take out a loan from the bank to purchase more moving trucks and grow your fleet. In order to do that, you need accurate financial statements of your company to present to your loan officer. Here is a list of the transactions: 1. Record your initial investment of $100,000. 2. Record the three energy bills. 3. Record all moving jobs that are listed on your moving calendar. You will record the sale (the amount listed that you charged them), the contractor expense (you pay your movers $20 per hour), and supplies expense (listed for each job on the calendar) for each job. 4. Record the two truck purchases. You will also have monthly loan payments and depreciation related to these purchases. 5. Record deposit and monthly rent payments using the leasing agreement. PAY TO THE ORDER OF FOR My New Moving Company One hundred thousand dollars even DATE January 2, XXXX $ 100,000.00 DOLLARS New Business Owner Dewey, Cheatem, & Howe Energy Company INVOICE Attention: New Business Owner Date: 1/31/XXXX Payment Due 2/15/XXXX ELECTRIC ENERGY CHARGE KWH USED UNIT PRICE COST 6052 $ 0.11 $665.72 AMOUNT DUE $665.72 Dewey, Cheatem, & Howe Energy Company INVOICE Attention: New Business Owner Date: 2/28/XXXX Payment Due 3/15/XXXX ELECTRIC ENERGY CHARGE KWH USED UNIT PRICE COST 7689 $ 0.11 $845.79 AMOUNT DUE $845.79 Dewey, Cheatem, & Howe Energy Company INVOICE Attention: New Business Owner Date: 3/31/XXXX Payment Due 4/15/XXXX ELECTRIC ENERGY CHARGE KWH USED UNIT PRICE COST 7233 $ 0.11 $795.63 AMOUNT DUE $795.63 January SUNDAY 26 2 9 Nicki Minaj - charge $2,200, man hours 15, supplies $500 16 23 30 MONDAY 27 3 10 17 24 31 TUESDAY 28 Sam Smith - charge $1,500, man hours 12, supplies $200 4 11 18 25 1 WEDNESDAY 29 1 5 12 G-Eazy - charge $400, man hours 2.5, supplies $50 19 26 2 THURSDAY Camila Cabello - charge $300, man hours 2, supplies $50 30 6 13 20 27 3 February S M T W T F S 1 2 6 8 9 7 13 14 15 16 20 21 22 23 27 28 4 5 11 12 18 19 19 25 26 FRIDAY 31 7 14 21 28 Imagine Dragons - charge $350, man hours 1.5, supplies $50 4 SATURDAY 3 10 17 24 1 8 15 22 29 5 February SUNDAY 30 6 13 20 The Who - charge $500, man hours 3, supplies $50 27 5 MONDAY 31 7 14 21 28 6 TUESDAY Led Zeppelin - charge $1,500, man hours 12, supplies $300 1 8 15 22 29 7 WEDNESDAY 2 Aerosmith - charge $5,000, man hours 23, supplies $1,000 9 16 23 1 8 THURSDAY 3 10 17 24 2 9 March SM T FRIDAY 7 4 5 6 11 12 13 14 18 19 20 25 26 27 Pink Floyd - charge $650, man hours 5, supplies $50 4 11 18 25 3 WT 10 1 F S 2 3 9 10 8 15 16 17 21 22 23 24 28 29 30 31 SATURDAY 5 12 19 26 11 March SUNDAY 27 5 12 19 26 2 MONDAY 28 6 13 20 27 3 TUESDAY 29 7 14 Sonic Youth - charge $300, man hours 1.5, supplies $50 21 28 4 WEDNESDAY 1 8 15 22 29 Mumford & Sons - charge $1,500, man hours 12, supplies $300 5 THURSDAY 2 9 16 23 30 6 April M 2 9 15 16 22 23 FRIDAY 29 30 Nirvana - charge $2,000, man hours 18, supplies $300 3 10 17 24 31 7 T W 3 4 5 6 7 10 11 12 13 14 T F S 17 18 19 20 21 24 25 26 27 28 SATURDAY 4 11 18 25 1 8 MOVING TRUCKS OF TEXAS, INC. INVOICE Attention: New Business Owner Date: 1/12/XXXX Description 2015 Isuzu NPR HD Box Truck 2014 Isuzu NPR HD Box Truck 2018 RAM Promaster 3500 Box truck Total Due Thank you for your purchase. It was a pleasure serving you. Sincerely yours, Moving Trucks of Texas, Inc. Cost GA $ $ CA 34,990 35,995 32,495 103,480 MOVING TRUCKS OF TEXAS, INC. INVOICE Attention: New Business Owner Date: 3/23/XXXX Description 2012 Isuzu NPR 2012 Isuzu NPR HD Total Due Cost $ $ Moving Trucks of Texas, Inc. EA CA Thank you for your purchase. It was a pleasure serving you. Sincerely yours, 22,375 25,950 48,325 Leasing Agreement 12 Pioneer Street Dallas, Texas 75214 T 972-628-1500 F 972-628-1600 TO: New Business Owner Fax Number: 123.456.7892 Date: January 1 From: Pioneer Leasing Regarding: Lease Term Dear You, This letter is to confirm the new lease terms that have been agreed upon. You are leasing the office space on 56 North Eldorado Way in Dallas, Texas 78545 from Pioneer Leasing for a lease term of 5 years beginning January 1, 20XX. On this date, you will begin paying monthly rent of $1,000, and this amount will be due on the first of each month. In addition to the monthly rent, you will pay us a deposit of $5,000 which will be returned to you once this lease has expired unless there are any damages to the lease space. We appreciate your business. Sincerely yours, Pioneer Leasing A note on trucks: Trucks purchased will be depreciated straight line monthly over 12 years with no residual value. Depreciation is calculated at the end of each month. DO NOT PRORATE AMOUNTS. Each month over the 12 years will have the same amount of depreciation including the month you purchase the vehicles. You have a 5 year loan on all the vehicles you purchase and the payment is due the 1st of every month. The first payment will take place the month after purchase. There is no interest owed on the loan. DO NOT PRORATE AMOUNTS. Each month over the 5 years will have the same amount of loan payment. There should be only ONE fixed asset account for trucks, ONE accumulated depreciation account for trucks, ONE loan payable balance, and ONE depreciation expense account. In other words, you do not need to create a separate account for each purchase. These four accounts will include all of the trucks your company purchases. View "Example - Balance Sheet" on Blackboard. Do not break out your truck loans into short term and long term payable. A note on man hours: You pay your movers at $20 per man hour for each moving job. They are paid after each moving job. You do not owe payroll taxes on their wages. A note on making and receiving payments: All bills should be entered. You pay your bills on the due date, not when received. You take full payment from the customers on the day of the move. Assets Current Assets Bank Accounts Checking Total Bank Accounts Total Current Assets Fixed Assets Vehicles Accumulated Depreciation Trucks Total Vehicles Total Fixed Assets Other Assets Security -Lease Deposit Building Total Other Assets Total Assets Liabilities and Equity Liabilities Current Liabilities Accounts Payable Accounts Payable (A/P) Total Accounts Payable Total Current Liabilties Long-Term Liabilties Notes Payable-Trucks Total Long-term Liabilities Total Liabilties Equity Owner's Investment Retained Earnings Net Income Total Equity Total Liabilties and Equity 151805 1437.22 100000 Income Sales Total Income Gross Profit Expenses Depreciation Expenses Job Supplies Rent & Lease Salaries & Wages Utilities Total Expenses Net Operating Income Net Income 16200 1437.22 2900 3000 2150 2297.4 You decide to open up your very own moving company. After three months of business, you realize your current accounting system (throwing all your invoices and moving schedules into a drawer) is no longer working. Additionally, you would like to take out a loan from the bank to purchase more moving trucks and grow your fleet. In order to do that, you need accurate financial statements of your company to present to your loan officer. Here is a list of the transactions: 1. Record your initial investment of $100,000. 2. Record the three energy bills. 3. Record all moving jobs that are listed on your moving calendar. You will record the sale (the amount listed that you charged them), the contractor expense (you pay your movers $20 per hour), and supplies expense (listed for each job on the calendar) for each job. 4. Record the two truck purchases. You will also have monthly loan payments and depreciation related to these purchases. 5. Record deposit and monthly rent payments using the leasing agreement. PAY TO THE ORDER OF FOR My New Moving Company One hundred thousand dollars even DATE January 2, XXXX $ 100,000.00 DOLLARS New Business Owner Dewey, Cheatem, & Howe Energy Company INVOICE Attention: New Business Owner Date: 1/31/XXXX Payment Due 2/15/XXXX ELECTRIC ENERGY CHARGE KWH USED UNIT PRICE COST 6052 $ 0.11 $665.72 AMOUNT DUE $665.72 Dewey, Cheatem, & Howe Energy Company INVOICE Attention: New Business Owner Date: 2/28/XXXX Payment Due 3/15/XXXX ELECTRIC ENERGY CHARGE KWH USED UNIT PRICE COST 7689 $ 0.11 $845.79 AMOUNT DUE $845.79 Dewey, Cheatem, & Howe Energy Company INVOICE Attention: New Business Owner Date: 3/31/XXXX Payment Due 4/15/XXXX ELECTRIC ENERGY CHARGE KWH USED UNIT PRICE COST 7233 $ 0.11 $795.63 AMOUNT DUE $795.63 January SUNDAY 26 2 9 Nicki Minaj - charge $2,200, man hours 15, supplies $500 16 23 30 MONDAY 27 3 10 17 24 31 TUESDAY 28 Sam Smith - charge $1,500, man hours 12, supplies $200 4 11 18 25 1 WEDNESDAY 29 1 5 12 G-Eazy - charge $400, man hours 2.5, supplies $50 19 26 2 THURSDAY Camila Cabello - charge $300, man hours 2, supplies $50 30 6 13 20 27 3 February S M T W T F S 1 2 6 8 9 7 13 14 15 16 20 21 22 23 27 28 4 5 11 12 18 19 19 25 26 FRIDAY 31 7 14 21 28 Imagine Dragons - charge $350, man hours 1.5, supplies $50 4 SATURDAY 3 10 17 24 1 8 15 22 29 5 February SUNDAY 30 6 13 20 The Who - charge $500, man hours 3, supplies $50 27 5 MONDAY 31 7 14 21 28 6 TUESDAY Led Zeppelin - charge $1,500, man hours 12, supplies $300 1 8 15 22 29 7 WEDNESDAY 2 Aerosmith - charge $5,000, man hours 23, supplies $1,000 9 16 23 1 8 THURSDAY 3 10 17 24 2 9 March SM T FRIDAY 7 4 5 6 11 12 13 14 18 19 20 25 26 27 Pink Floyd - charge $650, man hours 5, supplies $50 4 11 18 25 3 WT 10 1 F S 2 3 9 10 8 15 16 17 21 22 23 24 28 29 30 31 SATURDAY 5 12 19 26 11 March SUNDAY 27 5 12 19 26 2 MONDAY 28 6 13 20 27 3 TUESDAY 29 7 14 Sonic Youth - charge $300, man hours 1.5, supplies $50 21 28 4 WEDNESDAY 1 8 15 22 29 Mumford & Sons - charge $1,500, man hours 12, supplies $300 5 THURSDAY 2 9 16 23 30 6 April M 2 9 15 16 22 23 FRIDAY 29 30 Nirvana - charge $2,000, man hours 18, supplies $300 3 10 17 24 31 7 T W 3 4 5 6 7 10 11 12 13 14 T F S 17 18 19 20 21 24 25 26 27 28 SATURDAY 4 11 18 25 1 8 MOVING TRUCKS OF TEXAS, INC. INVOICE Attention: New Business Owner Date: 1/12/XXXX Description 2015 Isuzu NPR HD Box Truck 2014 Isuzu NPR HD Box Truck 2018 RAM Promaster 3500 Box truck Total Due Thank you for your purchase. It was a pleasure serving you. Sincerely yours, Moving Trucks of Texas, Inc. Cost GA $ $ CA 34,990 35,995 32,495 103,480 MOVING TRUCKS OF TEXAS, INC. INVOICE Attention: New Business Owner Date: 3/23/XXXX Description 2012 Isuzu NPR 2012 Isuzu NPR HD Total Due Cost $ $ Moving Trucks of Texas, Inc. EA CA Thank you for your purchase. It was a pleasure serving you. Sincerely yours, 22,375 25,950 48,325 Leasing Agreement 12 Pioneer Street Dallas, Texas 75214 T 972-628-1500 F 972-628-1600 TO: New Business Owner Fax Number: 123.456.7892 Date: January 1 From: Pioneer Leasing Regarding: Lease Term Dear You, This letter is to confirm the new lease terms that have been agreed upon. You are leasing the office space on 56 North Eldorado Way in Dallas, Texas 78545 from Pioneer Leasing for a lease term of 5 years beginning January 1, 20XX. On this date, you will begin paying monthly rent of $1,000, and this amount will be due on the first of each month. In addition to the monthly rent, you will pay us a deposit of $5,000 which will be returned to you once this lease has expired unless there are any damages to the lease space. We appreciate your business. Sincerely yours, Pioneer Leasing A note on trucks: Trucks purchased will be depreciated straight line monthly over 12 years with no residual value. Depreciation is calculated at the end of each month. DO NOT PRORATE AMOUNTS. Each month over the 12 years will have the same amount of depreciation including the month you purchase the vehicles. You have a 5 year loan on all the vehicles you purchase and the payment is due the 1st of every month. The first payment will take place the month after purchase. There is no interest owed on the loan. DO NOT PRORATE AMOUNTS. Each month over the 5 years will have the same amount of loan payment. There should be only ONE fixed asset account for trucks, ONE accumulated depreciation account for trucks, ONE loan payable balance, and ONE depreciation expense account. In other words, you do not need to create a separate account for each purchase. These four accounts will include all of the trucks your company purchases. View "Example - Balance Sheet" on Blackboard. Do not break out your truck loans into short term and long term payable. A note on man hours: You pay your movers at $20 per man hour for each moving job. They are paid after each moving job. You do not owe payroll taxes on their wages. A note on making and receiving payments: All bills should be entered. You pay your bills on the due date, not when received. You take full payment from the customers on the day of the move. Assets Current Assets Bank Accounts Checking Total Bank Accounts Total Current Assets Fixed Assets Vehicles Accumulated Depreciation Trucks Total Vehicles Total Fixed Assets Other Assets Security -Lease Deposit Building Total Other Assets Total Assets Liabilities and Equity Liabilities Current Liabilities Accounts Payable Accounts Payable (A/P) Total Accounts Payable Total Current Liabilties Long-Term Liabilties Notes Payable-Trucks Total Long-term Liabilities Total Liabilties Equity Owner's Investment Retained Earnings Net Income Total Equity Total Liabilties and Equity 151805 1437.22 100000 Income Sales Total Income Gross Profit Expenses Depreciation Expenses Job Supplies Rent & Lease Salaries & Wages Utilities Total Expenses Net Operating Income Net Income 16200 1437.22 2900 3000 2150 2297.4
