Crazy Eddie Inc.

Balance Sheet
June 30, 2010

ASSETS LIABILITIES
Cash $22,000 Note Payable [6% note] $50,000
Accounts Rec. 5,000 Mortgage Payable [8% note] 50,000
Inventory 40,000
Supplies 1,000 Total Liabilities
$100,000
Land 10,000
Buildings $160,000 STOCKHOLDER EQUITY
Acc. Depr. <60,000> 100,000
Equipment 40,000 Common Stock $28,000
Acc. Depr <24,000> 16,000 Retained Earnings 66,000
Total Equity
$94,000

TOTAL ASSETS $194,000 TOTAL LIAB. & EQUITY $194,000

July 1 Sold 20,000 shares of common stock for $100,000 [Par Value $2 per share].

July 3 Purchased $20,000 of inventory for resale to customers.

July 4 Paid $7,000 monthly mortgage payment. The rate of interest is 8%.

July 5 Purchased a 2-year insurance policy for $1,600 in cash. Effective date is July 1.

July 7 Paid $20,000 for purchases acquired July 3.

July 10 Sales revenue generated was $100,000. $60,000 in cash received this date the
balance on account. [Terms are 10/30 net 60] The cost of the inventory sold was
$25,000.

Aug. 1 Declared a dividend of $8,000.

Aug. 1 Received full amount due from the July 10 sale.

Aug. 9 Borrowed $80,000, and signed a note for this amount at 12%.

Aug. 28 Paid the August mortgage payment of $6,000.

Sept. 30 Supply inventory valued at $200.

Sept. 30 Sales on account to customers amounted to $200,000. The cost of the

inventory sold was $20,000.
OTHER INFORMATION

1. Tax rate is 20%.

2. Building has a 20 year useful life from date of purchase.

3. All equipment has a useful life of ten years.

PREPARE A SET OF FINANCIAL STATEMENTS FOR THE

QUARTER ENDING SEPTEMBER 30, 2010