Assets Liabilities

Cash 59.00 $ Notes Payable 25.00 $

Accounts Recievable 11.00 $ Accounts Payable 24.00 $
Raw Materials 20.00 $ Total Liabilities 49.00 $
Finished Goods - $ Owner's Equity
Total Inventory 20.00 $ Original Investment 5.00 $
Prepaid Expense 2.00 $ Retained Earnings 38.00 $
Earnings WTD - $
Total Owner's Equity 43.00 $
Total 92.00 $ Total 92.00 $
cost of production 0.20 $ Glass Rental 2.00 $
price 0.50 $ Advertising 1.00 $
cost of production (fifo) 0.2 Rent 2.00 $
cost of production (lifo) 0.36667 Total Expenses 5.00 $
Step 5 - Return Cash against IOU to mom and dad.
Hint* - Tax is liability, balance sheet connects things to people
Step 6 - Borrowed 50$ from bank
Step 7 - Sell remaining lemonade to friend at cost for cash
Step 8 - Buy sugar with credit
Step 9 - Buy 100 lemons at 20 cents a lemon with cash
Step 10 - Hire sister to make 60 glasses of lemonade for 1$
Step 11 - 60 glasses for 50 cents each, 40 for cash and 20 on account
Step 12 - Guy who bought 8 glasses has moved away
Step 13 - Pay banker 25$ back + 2$ interest
Step 14 - Buy 3 year insurance policy for 3$ - also 1st year
Week 3 - roll up retained earnings
Step 15 - Price of lemon has shot up to 40c a piece, 50 lemons on account
Step 16 - Make a batch of 60 glasses
Step 17 - Sell 60 glasses, 50 for cash, 10 for credit
New Week - Roll over earnings
Balance sheet filled out weekly here, can vary depending on nature of business
Balance Sheet (LIFO)
Assets Liabilities
Cash 46.00 $ Notes Payable - $
Accounts Recievable 16.00 $ Accounts Payable 32.00 $
Tax Liability 3.00 $
Raw Materials 10.00 $ Total Liabilities 35.00 $
Finished Goods - $ Owner's Equity
Total Inventory 10.00 $ Original Investment 5.00 $
Prepaid Expense 2.00 $ Retained Earnings 52.00 $
Fixed Assets 11.00 $ Earnings WTD 9.00 $
Fixed Assets: Equipment 16.00 $ Total Owner's Equity 66.00 $
Total 101.00 $ Total 101.00 $
Step 18 - Collect $5 from kid who bought on credit
Step 19 - Buy a Stand for 8$ and land for 2$ (will last 10 years)
Step 20 - 2$ worth of paint
Step 20 - 2$ sink on credit
Step 21 - 1$ to repair roof shingle, on credit
Step 22 - Pre-made lemonade for 20$, 100 glasses, for cash
Step 23 - Sold 50$ of lemonade, 40$ in cash, 10$ on account
Step 24 - Pay 4$ due to Pappy Parker for sugar
Step 25 - Repay bank loan (25$ + 2$ interest)
Step 26 - Depreciation of 10% on 10$ of assets
Week 5
Step 27 - Roll up earnings
Step 28 - Buy a wagon - 20$, lasts for 10 years - Pay Cash
Step 29 - Buy Lemonade Mix for 30$, 21$ in cash, 9$ in credit
Step 30 - Sell Lemonade for 50$ cash
Step 31 - 4$ salary to owner
Step 32 - Depreciate wagon at 2x SLB
Step 33 - Introduce taxes at 25%
Balance Sheet (Resembling an actual Company)
Assets Liabilities
Cash 18.50 $ Accounts Payable - $
Accounts Receivable - $ Notes Payable - $
Tax Liability - $
Inventory - $ Total Liabilities - $
Prepaid Expenses - $
Total Current Assets 18.50 $ Owner's Equity
Original Investment 5.00 $
Gross Fixed Assets 32.00 $ Retained Earnings 40.50 $
Accumulated Depreciation 5.00 $ Earnings WtD - $
Net Fixed Assets 27.00 $ Total Equity 45.50 $
Total Assets 45.50 $ Total L&OE 45.50 $
Week 6 - Roll up Earnings
Step 34 - Calculate total taxes owed
Step 35 - Throw away lemons and write them off
Step 36 - Pay Suppliers, taxes, collect recievables, and sell off remaining insurance
AKA Operating Statement or P&L
shuru se
Begin: Monday A.M. End:Sunday P.M.
Cash Method LIFO
Sales 30.00 $ 25.00 $ 30.00 $
Beginning Inventory 12.00 $ - $ 12.00 $
Purchases
Sugar - $ - $ - $
Lemons 20.00 $ - $ 20.00 $
Labour - $ - $ - $
Total Available for Sale 32.00 $ 32.00 $
Ending Inventory 20.00 $ - $ 10.00 $
Cost of Goods Sold 12.00 $ - $ 22.00 $
Gross Profit 18.00 $ 25.00 $ 8.00 $
Expenses
Bad Debt - $ - $ - $
Interest Expense - $ - $ - $
Insurance Expense - $ - $ - $
Total Expenses - $ - $ - $
Net Profit 18.00 $ 25.00 $ 8.00 $
Income Taxes
Net Profit After Taxes
Net Profit = Income WTD
Week 4
(LIFO) Week 5 Cash Method
50.00 $ 50.00 $ 32.00 $ 22.00 $
10.00 $ 10.00 $ 2.00 $ - $
20.00 $ 30.00 $ 4.00 $ - $
- $ 20.00 $ 20.00 $
- $ 1.00 $ 1.00 $
30.00 $ 40.00 $ 25.00 $
10.00 $ 10.00 $ 12.00 $ - $
20.00 $ 30.00 $ 15.00 $ 21.00 $
30.00 $ 20.00 $ 17.00 $ 1.00 $
2.00 $ 4.00 $ 4.00 $ - $
1.00 $ 4.00 $ 2.00 $ 2.00 $
3.00 $ - $ 1.00 $ 3.00 $
6.00 $ 8.00 $ 7.00 $ 5.00 $
24.00 $ 12.00 $ 10.00 $ -4.00 $
3.00 $
9.00 $
P&L/INCOME STATEMENT
Sales 48.00 $
Wages to Consultants 12.00 $
Gas 6.00 $
Sales Commission 1.00 $
Materials for Demonstration 3.00 $
Cost of Services 22.00 $
Gross Profit 26.00 $
Expenses
Administrative Work 5.00 $
Advertising 4.00 $
R&D 3.00 $
Total Expenses 12.00 $
Net Profit 14.00 $
Cash Statement (weekly fresh)
Begin: Monday A.M. End:Sunday P.M.
Week 5
Collections 45.00 $ (A/R) 50.00 $
Inventory Paid 24.00 $ 21.00 $
Fixed Asset Investment 10.00 $ 20.00 $
Expenses Paid 4.00 $ 4.00 $
Borrow/Payback 25.00 $
Change in Cash -18.00 $ 5.00 $
Beginning Cash 59.00 $ 41.00 $
Ending Cash 41.00 $ 46.00 $