ASSETS =

Accounts
Cash + Receivables + Supplies + Equipment
1 15000
2 -600
3 -3000 3000
4
5 -900 900
6 3000 7000
7 -600
8 -500
9 -2500
10 4000 -4000
Balancing 13900 3000 900 3000
Total assets 20800
Net income 6200

Statement of profit or loss (Income statement) Statement of Financial position

Revenue 10000 ASSETS
Expenses Non-current assets 3000
Rent -600 Equipment 3000
Advertising -700
Salaries -2500 Current assets 17800
Net income 6200 Supplies 900
Accounts receivable 3000
Statement of Retained earnings Cash 13900
Opening balance 0 TOTAL ASSETS 20800
Plus: Net income 6200
Less: Dividend -600
Closing balance 5600
LIABILITIES + EQUITY Notes
Share capital-
Accounts payable + ordinary + Revenues - Expenses - Dividends
15000 financing
-600 operating
investing
700 -700 non-cash
operating
10000 operating
-600 financing
-500 operating
-2500 operating
operating
200 15000 10000 -3800 -600
20800

Statement of Cash flows (Direct Method)

EQUITY 20600 Cash flows from operating activities
Share capital-ordinary 15000 Cash paid for office rent -600
Retained Earnings 5600 Cash paid for purchase of supplies -900
Cash reveived from providing services 3000
Liability 200 Cash paid for suppliers -500
Accounts payable 200 Cash paid for salaries -2500
Cash received from customers 4000
Net cash flows from operating activitie 2500
TOTAL EQUITY AND LIA 20800
Cash flows from investing activities
Cash paid for purchase of equipment -3000
Net cash used in investing activities -3000

Cash flows from financing activities

Investments of share holders 15000
Payment of dividend -600
Net cash flows from financing activitie 14400

Net increase in cash 13900

Cash at the beginning of the period 0
Cash at the end of the period 13900
Loans, borrowings, equity share

Non-current assets, investments

 ASSETS = LIABILITIES + EQUIT
Share
capital-
Accounts Supplies Equipmen Notes Accounts ordinary
Cash + Receivables + + t payable + payable + +
Opening balance 5000 1500 500 6000 0 4200 4000
1 1200 -1200
2 -2800 -2800
3 4000 3500
4 -400 2000 1600
5 -4100
6 -700
7 2000 2000
8 270
Closing balance 4200 3800 500 8000 2000 3270 4000
Net income 3130
Retained earnings 7230

Statement of profit or loss (Income statement) Statement of Financial position

Revenue 7500 ASSETS
Expenses Non-current assets 8000
Rent -900 Equipment 8000
Advertising -400
Salaries -2800 Current assets 8500
Net income 3400 Supplies 500
Accounts receivable 3800
Statement of Retained earnings Cash 4200
Opening balance 13000 TOTAL ASSETS 16500
Plus: Net income 3400
Less: Dividend -700
Closing balance 15700
 + EQUITY

-
Revenues Expenses - Dividends Notes

operating
operating
7500 operating
investing
-4100 operating
-700 financing
financing
-270 non-cash
7500 -4370 -700

EQUITY 19700 Statement of Cash flows (Direct Method)

Share capital-ordinary 4000 Cash flows from operating activities
Retained Earnings 15700 cash is collected from account receivable 1200
cash paid on account payable -2800
Liability 5270 cash is collected from revenue 4000
Accounts payable 3270 cash paid for salaries -2800
Notes payable 2000 cash paid for rent expense -900
cash paid for advertising expenses -400
TOTAL EQUITY AND LIABILITY 24970 Net cash flows from operating activities -1700

Cash flow from investing activities

Cash paid for purchase of equipment -400
Net cash used in investing activities -400

Cash flows from financing activities

Investments of share holders 4000
Payment of dividend -700
Cash borrowed on a note payable -2000
Net cash flows from financing activities 1300

Net increase in cash -800

Cash at the beginning of the period 5000
Cash at the end of the period 4200