Trees Forever is a new business that specializes in planting trees and shrubs for homeowners. Trees Forever obtained start-up capital from family members in exchange for ownership interest in the company. On December 1 , a total of $80,000 was raised by issuing 10,000 shares of stock. An additional $30,000 was borrowed from their hometown bank, also on December 1 . The principal must be repaid at the end of two years, along with 6 percent interest annually, which accrues as time passes. Also on December 1, Trees Forever took delivery of, and began using in the business, two previously owned Ford F-250 pick-ups for which it paid cash of $28,000 each. These trucks are expected to last for five more years, and the best guess is that each will be worth $4,600 at the end of the five-year period. Trees Forever hired two contractors to do the planting: Conifer and Moana. Conifer is extremely knowledgeable, but a bit taciturn. Moana is generally ebullient and has a lovely accent, and so her services were in high demand by the customers of her former employer. As a result of her popularity, Moana negotiated a deal with Trees Forever that she will be paid in advance for every job (i.e., at the time the job is scheduled). Conifer is happy to follow the more generally accepted method of being paid after she does the work. The contractors furnish their own tools (i.e., shovels and picks). Trees Forever decides to charge $95 for planting each tree. Trees Forever will pay the contractor planting the tree (i.e., Conifer or Moana) $50 per tree. On December 18, two clients came into the office to arrange to have trees planted on their property. The first client, Ms. Arboreal, was insistent that her 20 trees/shrubs be planted the next day, as it was critical that the work be completed before the holidays. Furthermore, she insisted that Conifer do the planting, as she had heard Moana was the chatty type and she did not want to pay someone to chat. In addition, she insisted that Conifer must arrive at her house before the clock struck 8:00 a.m., or the order was cancelled. Finally, Ms. Arboreal insisted that she be billed for the job and allowed to pay in three weeks, The second client, Ms. Forrest, wanted 30 trees/shrubs planted. She was flexible about when the work would be completed, as long as it was scheduled after the first of the year. However, she did ask that Moana do the work, as she had heard wonderful things about her charming manner from her friend. Ms. Forrest was happy to pay in advance, and immediately wrote a check for the total amount. Trees Forever scheduled Moana to do the work in four weeks and, per their agreement, paid her immediately. Conifer arrived at Ms. Arboreal's home at 7:59 a.m. on December 19 and completed the planting to her satisfaction. Conifer will be paid by Trees Forever on January 5. Ms. Arboreal paid promptly on January 8. Moana performed the work for Ms. Forrest on January 15. Both customers promised to recommend Trees Forever, Inc. to their friends. Prepare a 12/31 balance sheet, income statement for December, and statement of cash flows (using either the direct or indirect method) for December. Any depreciation is to be calculated using the straight-line method. Contractors do not receive "wages," so account names like "Labor Expense" or "Fee Expense" are more appropriate than "Wages Expense." Trees Forever uses the accrual method. Please submit your completed financial statements through Blackboard. If you created your financial statements in Excel (as recommended), please attach your file for me to download/ open. You are welcome to complete this assignment with a partner. If you do so, please clearly indicate both names on your file. Only one of you will be able to submit it through Blackboard; once you receive a grade, please email me a reminder to record the same grade for your partner. Trees Forever is a new business that specializes in planting trees and shrubs for homeowners. Trees Forever obtained start-up capital from family members in exchange for ownership interest in the company. On December 1 , a total of $80,000 was raised by issuing 10,000 shares of stock. An additional $30,000 was borrowed from their hometown bank, also on December 1 . The principal must be repaid at the end of two years, along with 6 percent interest annually, which accrues as time passes. Also on December 1, Trees Forever took delivery of, and began using in the business, two previously owned Ford F-250 pick-ups for which it paid cash of $28,000 each. These trucks are expected to last for five more years, and the best guess is that each will be worth $4,600 at the end of the five-year period. Trees Forever hired two contractors to do the planting: Conifer and Moana. Conifer is extremely knowledgeable, but a bit taciturn. Moana is generally ebullient and has a lovely accent, and so her services were in high demand by the customers of her former employer. As a result of her popularity, Moana negotiated a deal with Trees Forever that she will be paid in advance for every job (i.e., at the time the job is scheduled). Conifer is happy to follow the more generally accepted method of being paid after she does the work. The contractors furnish their own tools (i.e., shovels and picks). Trees Forever decides to charge $95 for planting each tree. Trees Forever will pay the contractor planting the tree (i.e., Conifer or Moana) $50 per tree. On December 18, two clients came into the office to arrange to have trees planted on their property. The first client, Ms. Arboreal, was insistent that her 20 trees/shrubs be planted the next day, as it was critical that the work be completed before the holidays. Furthermore, she insisted that Conifer do the planting, as she had heard Moana was the chatty type and she did not want to pay someone to chat. In addition, she insisted that Conifer must arrive at her house before the clock struck 8:00 a.m., or the order was cancelled. Finally, Ms. Arboreal insisted that she be billed for the job and allowed to pay in three weeks, The second client, Ms. Forrest, wanted 30 trees/shrubs planted. She was flexible about when the work would be completed, as long as it was scheduled after the first of the year. However, she did ask that Moana do the work, as she had heard wonderful things about her charming manner from her friend. Ms. Forrest was happy to pay in advance, and immediately wrote a check for the total amount. Trees Forever scheduled Moana to do the work in four weeks and, per their agreement, paid her immediately. Conifer arrived at Ms. Arboreal's home at 7:59 a.m. on December 19 and completed the planting to her satisfaction. Conifer will be paid by Trees Forever on January 5. Ms. Arboreal paid promptly on January 8. Moana performed the work for Ms. Forrest on January 15. Both customers promised to recommend Trees Forever, Inc. to their friends. Prepare a 12/31 balance sheet, income statement for December, and statement of cash flows (using either the direct or indirect method) for December. Any depreciation is to be calculated using the straight-line method. Contractors do not receive "wages," so account names like "Labor Expense" or "Fee Expense" are more appropriate than "Wages Expense." Trees Forever uses the accrual method. Please submit your completed financial statements through Blackboard. If you created your financial statements in Excel (as recommended), please attach your file for me to download/ open. You are welcome to complete this assignment with a partner. If you do so, please clearly indicate both names on your file. Only one of you will be able to submit it through Blackboard; once you receive a grade, please email me a reminder to record the same grade for your partner