Use a single worksheet for each question. Set up the answer with the dates in columns and the income statement or balance sheet items in rows. On the balance sheet, the assets and liabilities should be in the same column. Use links between worksheets so the system works even if you change earlier numbers.

Assume you have started a new company on the first day of the year. You raise $100,000 from family and friends, and borrow $40,000 from the bank on a ten-year, 8% note, with 10% of the original principle due each year (on the morning of Dec. 31.) Your company sells only for cash, and holds no inventory. All labor and materials are paid for at delivery. Properly label all accounts.

1. Show the balance sheet for Jan. 1, 2002.

2. On Jan 2, 2002 you buy a machine for $75,000. It has a five-year life, and is depreciated straight-line. Show the balance sheet for Jan. 2, 2002.