The transactions for October, the first month of operation for Paul's Pet Services, are summarized below. Date 1-Oct Paul invested $5,000 of cash, equipment, and furniture worth $2,400 for shares. 1-Oct Took out a $6,000 1-year bank loan with an interest rate of 12% to fund operations. Interest is due at the end of each month. 2-Oct Paid $2,000 for the first two month's rent. 4-Oct Paid $500 for advertising and promotion for the grand opening in October. 10-Oct Bought $2,000 worth of inventory for the store and paid immediately. 16-Oct Received $180 from a client for six monthly grooming appointments for a dog. Paul performed the grooming for October. 25-Oct Purchased another $1,000 worth of inventory, to be paid on November 25th. Month During the month, sold 60% of the initial inventory purchased on Oct 10 for $3,400; $2,000 in cash and the remainder on credit. Month Depreciation on equipment and furniture was $400 for the month. Ignore taxes. Required: 1) On the FSET worksheet, record the above transactions. Add extra transaction lines if needed. 2) On the Income Statement worksheet, prepare an income statement for Paul's Pet Services. 3) On the Balance Sheet worksheet, prepare a balance sheet for Paul's Pet Services. 4) On the Performance Evaluation worksheet, assess the performance of Paul's Pet Services (provide at least two different assessments).
The transactions for October, the first month of operation for Paul's Pet Services, are summarized below.
|
Date |
|
|
1-Oct |
Paul invested $5,000 of cash, equipment, and furniture worth $2,400 for shares. |
|
1-Oct |
Took out a $6,000 1-year bank loan with an interest rate of 12% to fund operations. Interest is due at the end of each month. |
|
2-Oct |
Paid $2,000 for the first two month's rent. |
|
4-Oct |
Paid $500 for advertising and promotion for the grand opening in October. |
|
10-Oct |
Bought $2,000 worth of inventory for the store and paid immediately. |
|
16-Oct |
Received $180 from a client for six monthly grooming appointments for a dog. Paul performed the grooming for October. |
|
25-Oct |
Purchased another $1,000 worth of inventory, to be paid on November 25th. |
|
Month |
During the month, sold 60% of the initial inventory purchased on Oct 10 for $3,400; $2,000 in cash and the remainder on credit. |
|
Month |
|
Ignore taxes.
Required:
1) On the FSET worksheet, record the above transactions. Add extra transaction lines if needed.
2) On the Income Statement worksheet, prepare an income statement for Paul's Pet Services.
3) On the
4) On the Performance Evaluation worksheet, assess the performance of Paul's Pet Services (provide at least two different assessments).
Step by step
Solved in 3 steps
