Documente Academic
Documente Profesional
Documente Cultură
Accounts
Receivable
Inventories Equipment
Prepaid
Expenses = Short-term
Loans
Interest
Payable
Wages Payable Owners’ Equity Description of Transaction
Revenues US$7,720.00
Less Cost of Goods Sold US$2,100.00
Gross Profit US$5,620.00
Less Operating Expenses
Supplies US$80.00
Salaries US$1,600.00
Rent US$1,800.00
Advertisement US$150.00
Less Depreciation and Amortization
Depreciation of Computer US$250.00
Depreciation of Sewing Machine US$60.00
Other Expenses
Operating Profit US$1,680.00
Interest Expense US$300.00
Net Income US$1,380.00
RIBBONS AN’ BOWS, INC.
Balance Sheet
As of June 30, 2006
Assets
Current Assets
Cash US$3,390
Accounts Receivable US$320
Inventory US$4,120
Prepaid Expenses US$1,200
Total Current Assets US$9,030
Fixed Assets
Property, Plant and Equipment US$4,050
Less Accumulated Depreciation (US$310)
Total Net Fixed Assets US$3,740
Owners’ Equity
Carmen Diaz, capital US$1,000.00
Retained Earnings US$1,380.00
Total Owners’ Equity US$2,380.00