Purchase Solution

Balance Sheet and Income Statement

Not what you're looking for?

Ask Custom Question

Assume that you began a small business by (1) investing $10000 and (2) borrowing $30000 from a bank. You (3) purchased equipment for $25000 cash and (4) purchased merchandise for $12000 on credit. During the first month of operations, your company (5) sold merchandise for $24000 in cash. (6) Credit sales were $3000. (7) The cost of merchandise sold during the month was $10000. By the end of the month, (8) $8000 had been paid to the supplier of the merchandise. In addition, you (9) repaid $300 of the amount borrowed from the bank. You (10) withdrew $800 from the business for personal use.

A) Set up a simple accounting system and record transactions (1) through (10).
B) Prepare an income statement for the first month of operations.
C) Prepare a balance sheet as of the end of the first month.

Purchase this Solution

Solution Summary

Records transactions and prepares balance sheet and income statement.

Purchase this Solution


Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.