You started your company with $100,000 that you raised by selling stock in Practice Makes<\/p>
Perfect Inc. to your family and friends.<\/p>
2. Knowing that you would need additional funds, you presented your business plan to the bank<\/p>
and were able to get a $50,000 loan at 12%.<\/p>
3. You purchased three pianos for $16,000 each, paying cash. You believe these pianos will last<\/p>
four years before you replace them. You expect the salvage value to be zero.<\/p>
4. You spent $2,000 on supplies (inventory), which you charged on account.<\/p>
5. The newspaper bills you $500 for the advertisement you ran. You plan on paying the bill next<\/p>
month.<\/p>
6. Rent for the space you have leased is $1,000 a month, which you paid.<\/p>
7. The first month you bill students $2,000 for lessons.<\/p>
8. You pay your two part-time piano teachers $500 each at the end of the month.<\/p>
9. One of your students paid the $200 invoice you sent earlier in the month.<\/p>
10. You write the check for the interest owed for the month.<\/p>
11. You adjust the supplies (inventory) account for $300 of sheet music that you gave to<\/p>
students.<\/p>
12. You record one month of depreciation on the pianos<\/p>", "transcribed_text": "", "related_book": { "title": "Principles Of Accounting Volume 2 Managerial Accounting", "isbn": "0357364805, 9780357364802", "edition": "1st Edition", "authors": "OpenStax", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2022\/04\/626124ab6f7b1_547626124ab246f0.jpg", "uri": "\/textbooks\/principles-of-accounting-volume-2-managerial-accounting-1st-edition-9780357364802", "see_more_uri": "" }, "free_related_book": { "isbn": "B0080EWNXU", "uri": "\/textbooks\/the-doctrine-of-life-annuities-and-assurances-analytically-investigated-and-practically-explained-together-with-several-useful-tables-connected-with-the-subject-1st-edition-b0080ewnxu-312196", "name": "The Doctrine Of Life Annuities And Assurances Analytically Investigated And Practically Explained Together With Several Useful Tables Connected With The Subject", "edition": "1st Edition" }, "question_posted": "2024-06-28 09:48:57", "see_more_questions_link": "\/study-help\/questions\/business-general-management-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/lincoln-company-is-considering-an-investment-that-will-return-a", "description": "Lincoln Company is considering an investment that will return a lump sum of $750,000 six years from now. 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