Assets = Liabilities

Date Cash + Accounts Receivable + Equipment = Accounts Payable

May-01 40000
May-01 -2200
May-03 1890 1890
5-May -750
8-May 5400
12-May 2500
15-May -750
20-May 2500 -2500
22-May 3200
25-May 3200 -3200
26-May -1890 -1890
27-May 80 80
28-May -750
30-May -300
30-May -280
31-May -1400

Total 42780 0 1970 44750 80

The Gram Co.

Income Statement, May 1-31, 20XX
Revenue
Expenses
>Rent
>Cleaning Services
>Salaries
>Telephone Bill
>Utilities
Net Income
>Dividends
Retained Earnings

The Gram Co.

Balance Sheet as of May 31, 20XX
Assets Amount Liabilities & Owner's Equity
Cash 42780 Accounts Payable
Accounts Receivable 0 Owner's Equity
Equipment 1970 >Common Stock
>Retained Earnings
Total 44750 Total

The Gram Co.

Cash Flow Statement, May 1-31, 20XX
Operating Cashflow
Investing Cashflow
Financing Cashflow

Cash Balance
 + Equity
+ Common Stock - Dividends + Revenues - Expenses
40000
-2200

-750
5400
2500
-750

3200

-750
-300
-280
-1400

40000 -1400 11100 -5030

20XX
11100

-2200
-750
-1500
-300
-280
6070
-1400
4670

0XX
Owner's Equity Amount
80

40000
s 4670
44750

, 20XX
 6070
-1890
38600

42780
 Assets
Date Cash + Accounts Receivable + Supplies +
Dec-21 65000
Balance 65000 0 0
Dec-21 -1000
Balance 64000 0 0
Dec-21 -4800
Balance 59200 0 0
5-Dec -800 800
Balance 58400 0 800
6-Dec 1200
Balance 59600 0 800
8-Dec
Balance 59600 0 800
15-Dec 5000
Balance 59600 5000 800
18-Dec 350
Balance 59600 5000 1150
20-Dec -2530
Balance 57070 5000 1150
24-Dec 900
Balance 57070 5900 1150
28-Dec 5000 -5000
Balance 62070 900 1150
29-Dec -1400
Balance 60670 900 1150
30-Dec -540
Balance 60130 900 1150
31-Dec -950

Total 59180 900 1150

Sony Electric
Income Statement, Dec 1-31, 20XX
Revenue
Expenses
>Rent
>Salaries
>Utilities
Net Income
>Dividends
Retained Earnings

Sony Electric
Balance Sheet as of Dec 31, 20XX
 Assets Amount
Cash 59180
Accounts Receivable 900
Supplies 1150
Office Equipment 2530
Electrical Equipment 13000
Total 76760

Sony Electric
Cash Flow Statement, Dec 1-31, 20XX
Operating Cashflow
Investing Cashflow
Financing Cashflow

Cash Balance

ANALYSIS
1. There would be no effect on the assets. We would have the same cash balance.
2. Total liabilities would increase by the amount of loan, i.e., $16000. This would be rec
3. Total equity would decrease by the amount of $16000.
4. Below is how the new balance sheet would like.

Sony Electric
Balance Sheet as of Dec 31, 20XX
Assets Amount
Cash 59180
Accounts Receivable 900
Supplies 1150
Office Equipment 2530
Electrical Equipment 13000
Total 76760
ts = Liabilities +
Office Equipment + Electrical Equipment = Accounts Payable +

0 0 0

0 0 0
13000 8200
0 13000 8200

0 13000 8200

0 13000 8200
2530 2530
2530 13000 10730

2530 13000 10730

350
2530 13000 11080
-2530
2530 13000 8550

2530 13000 8550

2530 13000 8550

2530 13000 8550

2530 13000 8550

2530 13000 76760 8550

Sony Electric
Statement, Dec 1-31, 20XX
7100

-1000
-1400
-540
4160
-950
3210

Sony Electric
e Sheet as of Dec 31, 20XX
 Liabilities & Owner's Equity Amount
Accounts Payable 8550
Owner's Equity
>Common Stock 65000
>Retained Earnings 3210

Total 76760

Sony Electric
w Statement, Dec 1-31, 20XX
3260
-8130
64050

59180

would have the same cash balance.

of loan, i.e., $16000. This would be recorded under Loans.
f $16000.
ke.

Sony Electric
e Sheet as of Dec 31, 20XX
Liabilities & Owner's Equity Amount
Accounts Payable 8550
Bank Loan 16000
Owner's Equity
>Common Stock 49000
>Retained Earnings 3210
Total 76760
 Equity
Common Stock - Dividends + Revenues - Expenses
65000
65000 0 0 0
-1000
65000 0 0 -1000

65000 0 0 -1000

65000 0 0 -1000
1200
65000 0 1200 -1000

65000 0 1200 -1000

5000
65000 0 6200 -1000

65000 0 6200 -1000

65000 0 6200 -1000

900
65000 0 7100 -1000

65000 0 7100 -1000

-1400
65000 0 7100 -2400
-540
65000 0 7100 -2940
-950

65000 -950 7100 -2940

 a.
Balance Sheet
S. No. Transaction Total Assets Total Liabilities
1 Owner invests $900 cash in business in exchange for stock 900
2 Receives $700 cash for services provided 700
3 Pays $500 cash for employee wages -500
4 Buys $100 equipment on credit 100 100
5 Purchases $200 of supplies on credit 200 200
6 Buys equipment for $300 cash 0
7 Pays $200 on accounts payable -200 -200
8 Provides $400 services on credit 400
9 Pays $50 cash in dividends -50
10 Collects $400 cash on accounts receivables 0

Total 1550 100

 a. b.
ance Sheet Income Statement Statement of Cash Flows
Total Equity Net Income Operating Activities Investing Activities Financing Activities
900 900
700 700 700
-500 -500 -500

-300
-200
400 400
-50 -50 -50
400

1450 550 400 -300 850