Question
When she appeared on Shark Tank, Meg mentioned the following resources and debts that had accumulated by 30 September 2022: Money owed to YogaMatisse by
When she appeared on Shark Tank, Meg mentioned the following resources and debts that had accumulated by 30 September 2022:
Money owed to YogaMatisse by customers for past shipments: $30,000.
Past stock sale (20 percent of company) to angel investor for $ 1 million.
screen-printing machines: $1.5 million.
Wells Fargo bank loan: $1 million, with $300,000 in interest and repaid principal due in the coming year.
Accumulated operating losses: $270,000.
YogaMatisse bank checking account balance: $200,000.
In October 2022 Meg undertook six transactions.
Meg hired a printing specialist (Justin) and paid him $3,000 for the month with a check on the YogaMatisse bank account.
Meg purchased 5000 quality sustainable yoga mats in many colors to use in creating her product. Each mat cost $20, and Meg paid by $100,000 check on the YogaMatisse bank account.
Goop founder Gwyneth Paltrow purchased 1000 mats at $150 apiece and paid Meg with a check for $150,000 deposited in the YogaMatisse bank account.
Lori Greiner, of Shark Tank, purchased a 10 percent share of equity in CR for $500,000 that was deposited in the YogaMatisse bank account.
Meg collected $20,000 of the $30,000 owed to YogaMatisse by its customers and deposited it in the YogaMatisse bank checking account.
Meg paid $50,000 in interest due on the Wells Fargo bank loan: this did not reduce the principal due.
Question:
Provide the bank statement for YogaMatisse for October 2022. Be sure to group items into receipts and expenditures and to explain your grouping. Explain your calculations on the following as well: a. What is the initial balance of the bank checking account? b. What is the end-October balance of the bank checking account? c. Which of these transactions (if any) do not belong in the income statement of the firm?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started