The transactions for October, the first month of operation, for Paul's Pet Services are summarized below. Paul invested $5,000 of cash, and equipment and furniture worth $2,400 for shares. Took out a $6,000 1 year bank loan with an interst rate of 12% to fund operations. Interest is due at the end of each month. Paid $2,000 for the first 2 month's rent. Paid $500 for advertising and promotion for the grand opening in October. Bought $2,000 worth of inventory for the store and paid immediately. Received $180 from a client for 6 monthly grooming appointments for a dog. Paul performed the grooming for October. Purchased another $1,000 worth of inventory, to be paid on November 25th. 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. Depreciation on equipment and furniture was $400 for the month. Prepare an income statement and Balance Sheet Worksheet for Paul's Pet services. Assess the performance of Paul's Pet Services (provide at least 2 different assessments).
The transactions for October, the first month of operation, for Paul's Pet Services are summarized below. Paul invested $5,000 of cash, and equipment and furniture worth $2,400 for shares. Took out a $6,000 1 year bank loan with an interst rate of 12% to fund operations. Interest is due at the end of each month. Paid $2,000 for the first 2 month's rent. Paid $500 for advertising and promotion for the grand opening in October. Bought $2,000 worth of inventory for the store and paid immediately. Received $180 from a client for 6 monthly grooming appointments for a dog. Paul performed the grooming for October. Purchased another $1,000 worth of inventory, to be paid on November 25th. 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.
Prepare an income statement and
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