FINANCIAL STATEMENT PROJECT

Financial Statement project

Financial Statement project

Transactions Listing

Trans

#

Date

Transaction Description (example - To record the issue of shares in exchange for cash)

1

Jan 1

To record issuance of shares of $ 200000 in cash

2

Jan 1

To record purchase of coffee shop $ 100000 using 3 years bank loan

3

Jan 2

To record purchase of Machinery and Equipment for $ 50000

4

Jan 2

To record purchase of Office supplies for $ 5000 on credit

5

Jan 3

To record the purchase of Advertising contract for $ 12000 for 1 year

6

Jan 3

To record purchase of insurance for 6 months for $ 15000 on credit

7

Jan 3

To record utility expense $ 500 cash

8

Jan 3

To record wages expense $ 2000 cash for a month

9

Jan 4

To record sales revenue $ 8000

10

Jan 4

To record sales revenue $ 2000

11

Jan 5

To record adjustment of Advertising expense for January

12

Jan 5

To record adjustment of insurance expense for January

13

Jan 5

To record supplies left $ 2000

14

Jan 7

To record sales revenue $ 1500

15

Jan 7

To record purchases of material on credit $ 300

16

Jan 8

To record sales of its products of $ 430

17

Jan 8

To record booking of stall at a local event celebration of $ 130

18

Jan 9

To record payment of material to vendor $ 300

19

Jan 9

To record sales of its products of $ 650

20

Jan 10

To record sales through the event stall $ 1450

21

Jan 11

To record purchases of material on cash $ 300

22

Jan 11

To record sales of its products of $ 700

23

Jan 13

To record bank deposit $ 1000

24

Jan 14

To record interest paid $ 1300

25

Jan 15

To record sales of its products of $ 650

Financial Statement Effects Template

BALANCE SHEET INCOME STATEMENT

Trans #

Cash

Asset

+ Non-Cash Asset

= Liabilities

+ Contributed Capital

+Earned Capital

Revenues

- Expenses

= Net Income

1

Cash

+200000

Common stock +200000

2

Coffee shop

+ 100000

Long term debt

+100000

3

Cash

-50000

Equipment +50000

Equipment -50000

-50000

4

Supplies +500

A/P

+5000

Supplies -5000

-5000

5

Cash

-12000

Prepaid advertising

+12000

Prepaid advertising

-12000

-12000

6

Prepaid Insurance

+15000

A/P

+ 15000

Prepaid Insurance

-15000

-15000

7

Cash

-500

RE

-500

Utility

+500

-500

8

Cash -2000

RE

-2000

Wages

+2000

-2000

9

Cash

+8000

RE

+8000

Sales

+8000

+8000

10

A/R

+2000

RE

+2000

Sales +2000

+2000

11

Prepaid advertising

-1000

RE

-1000

Advertising Expense

+ 1000

-1000

12

Prepaid Insurance

-2500

RE

-2500

Insurance Expense

+2500

-2500

13

Supplies

-3000

RE

-3000

Supplies Expense

+3000

-3000

14

Cash

+1500

RE

+1500

Sales

+1500

+1500

15

Material

+ 300

A/P

+300

16

Cash +430

RE

+430

Sales +430

+430

17

Cash -130

Booking Expense -130

-130

18

Cash -300

A/P -300

-300

-300

19

Cash +650

RE

+650

Sales +650

+650

20

Cash +1450

RE

+1450

Sales +1450

+1450

21

Cash -300

Material+300

22

Cash +700

RE

+700

Sales +700

+700

23

Bank +1000

Cash -1000

24

Cash -1300

A/P -1300

Interest Expense -1300

-1300

25

Cash +650

RE

+650

Sales +650

+650

Financial Statements

After 1 month of Operation

Balance Sheet

Period:

1 Month

$

$

ASSETS

FIXED ASSETS

Machinery

50000

Office Supplies

53000

Shop

100000

 

 

203,000

CURRENT ASSETS

Cash

20000

Bank

50000

Inventory

30000

 

 

100,000

TOTAL ASSETS

303,000

CAPITAL AND LIABILITIES

Capital (Common Stock)

200000

Retained Earning

1000

201,000

NON-CURRENT LIABILITIES

Long Term Bank Loans

100,000

CURRENT LIABILITIES

A/P

2000

 

 

2,000

TOTAL CAPITAL & LIABS

303,000

Income Statement

Period:

1 month

 

 

 

Total

 

 

Sales 1

10,000

 

 

Total Sales

10,000

 

 

Less Cost of Sales

 

Total Cost of Sales

1,700

 

 

 

 

Gross Profit

8,300

Overheads

 

Salaries

2,000

Utilities

500

Insurance

2,500

Marketing and advertising

1,000

Interest Paid

1,300

 

 

Total Overheads

7,300

 

 

Profit

1,000

After 1 year of Operation

Balance Sheet

Period:

1 year

$

$

ASSETS

FIXED ASSETS

Machinery

50000

Office Supplies

53000

Shop

100000

 

 

203,000

CURRENT ASSETS

Cash

22400

Bank

70000

Inventory

30000

 

 

122,400

TOTAL ASSETS

325,400

CAPITAL AND LIABILITIES

Capital (Common Stock)

200000

Retained Earning

23,400

223,400

NON-CURRENT LIABILITIES

Long Term Bank Loans

100,000

CURRENT LIABILITIES

A/P

2000

 

 

2,000

TOTAL CAPITAL & LIABS

325,400

Income Statement

Period:

1 Year

 

 

 

Total

 

 

Sales 1

130,000

 

 

Total Sales

130,000

 

 

Less Cost of Sales

 

Total Cost of Sales

19,000

 

 

 

 

Gross Profit

111,000

Overheads

 

Salaries

24,000

Utilities

6,000

Insurance

30,000

Marketing and advertising

12,000

Interest Paid

15,600

 

 

Total Overheads

87,600

 

 

Profit

23,400

Statement of Shareholder's Equity

Period:

1st year

Capital (Common Stock)

200000

Add: Profit

23,400

Total Owner's Equity

 

223,400

After 2 years of Operation

Balance Sheet

Period:

2 year

$

$

ASSETS

FIXED ASSETS

Machinery

50000

Office Supplies

57000

Shop

100000

 

 

207,000

CURRENT ASSETS

Cash

25800

Bank

85000

Inventory

33000

 

 

143,800

TOTAL ASSETS

350,800

CAPITAL AND LIABILITIES

Capital (Common Stock)

200000

Retained Earning

47,800

247,800

NON-CURRENT LIABILITIES

Long Term Bank Loans

100,000

CURRENT LIABILITIES

A/P

3000

 

 

3,000

TOTAL CAPITAL & LIABS

350,800

Income Statement

Period:

2 Year

 

 

Month

Total

 

 

Sales 1

270,000

 

 

Total Sales

270,000

 

 

Less Cost of Sales

 

Total Cost of Sales

45,000

 

 

 

 

Gross Profit

225,000

Overheads

 

Salaries

50,000

Utilities

12,000

Insurance

60,000

Marketing and advertising

24,000

Interest Paid

31,200

 

 

Total Overheads

177,200

 

 

Profit

47,800

Statement of Shareholder's Equity

Period:

2 Year

Capital (common Stock)

200000

Add: Profit

47,800

Total Owner's Equity

 

247,800

Cash Flow Statement

Period:

2 Year

 

 

 

 

Year 1

Year 2

Total

RECEIPTS

Sales Receipts

130,000

270,000

400,000

 

 

Total Receipts

130,000

270,000

400,000

PAYMENTS

 

Salaries

24,000

50,000

74,000

Utilities

6,000

12,000

18,000

Insurance

30,000

60,000

90,000

Marketing and advertising

12,000

24,000

36,000

Interest Paid

15,600

31,200

46,800

 

 

Total Payments

87,600

177,200

264,800

 

 

Cash Flow

42,400

92,800

135,200

Ratio Analysis

Liquidity Ratios

 

 

 

1st Year

 

2nd Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Ratio

=

Current Assets

 

61.2 ...