Mely Industries

Balance Sheet
As at Dec 31, 2022
Currency unit: US$
Assets
Current assets
Cash 20,600 $20,600
Accounts receivables 5,400
Inventory 1,400
Total current assets 27,400
Non-current assets
Equipment 88,000
Accumulated depreciation (25,000)
Total non-current assets 63,000
Total assets 90,400
Liabilities and stockholders' equity
Liabilities
Current liabilities
Accounts payable 1,100
Total current liabilities 1,100
Non-current liabilities
Notes payable 3,300
Total non-current liabilities 3,300
Total liabilities 4,400
Stockholders' equity
Common stock 52,000
Retained earnings* 34,000
(25,900+25,700-1,200-3,400-10,000-3,000)
Total stockholders' equity 86,000
Total liabilities and stockholders' equity 90,400
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* Retained earnings = RE opening balance + Net income - Dividends

Journal entries
US$
Jan 1st Cash 2,000
Unearned revenue 2,000

2nd Prepaid insurance 960

Cash 960

5th Equipment 8,400

Cash 1,200
Accounts payable 7,200

10th Accounts receivable 4,000

Sales revenue 4,000

10th Cost of goods sold 1,400

Inventory 1,400

19th Cash 3,880 ($4,000 * 97%)

Sales discount 120 ($4,000 * 3%)
Accounts receivable 4,000

31st Depreciation expense 600

Accumulated depreciation - Equipment 600

31st Interest expense 400

Interest payable 400

31st Cash 6,000

Accumulated depreciation 13,500
Loss on disposal* 2,000
Equipment 21,500

*Net book value = 21,500 - 13,500 8,000

Proceeds from sale of assets 6,000
Loss on disposal of assets (2,000)
 Cash Unearned revenue
20,600

Jan 1st 2,000 960 Jan 2nd

Jan 19th 3,880 1,200 Jan 5th
Jan 31st 6,000

30,320

Prepaid insurance Accounts Payable

Jan 2nd 960

960

Equipment Sales revenue

88,000

Jan 5th 8,400 21,500 Jan 31st Jan 31st 4,000

74,900 X

Accounts Receivable COGS

5,400

Jan 10th 4,000 4,000 Jan 19th Jan 10th 1,400

5,400 X

Inventory Sales discount

1,400

1,400 Jan 10th Jan 19th 120

- X

Interest expense
Jan 31st 400

Retained Earnings

Net loss 520

Unearned revenue

2,000 Jan 1st

2,000

Accounts Payable Interest Payable

1,100

7,200 Jan 5th 400 Jan 31st

8,300 400

Sales revenue

4,000 Jan 10th

COGS Depreciation expense

1,400 Jan 31st Jan 31st 600 600 Jan 31st

X X

Sales discount Accumulated depreciation

25,000

120 Jan 31st Jan 31st 13,500 600 Jan 31st

X 12,100

Interest expense Loss on disposal

 400 Jan 31st Jan 31st 2,000 2,000 Jan 31st

X X

Retained Earnings Income Summary (optional)

34,000
COGS 1,400 3,880
Depreciation expe 600
1,880
33,480 Interest expense 400
Loss on disposal 2,000
Net loss 520 520

X
y (optional)

Net sales

Income from operations

Retained earnings
Mely Industries
Income Statement
For the month ended Jan 31, 2023
Currency unit: US$
Net sales 3,880
Cost of goods sold (1,400)
Gross profit 2,480
Operating expenses (600)
Income from operations 1,880
Other revenue and gains -
Other expenses and losses
Interest expense 400
Loss on disposal of assets 2,000 (2,400)
Net loss (520)
Mely Industries
Statement of Stockholders' Equity
For the month ended Jan 31, 2023
Currency unit: US$
Common stock Retained Earnings
Balance at Dec 31, 2022 52,000 34,000
Net loss (520)
Dividends
Balance at Jan 31, 2023 52,000 33,480
Total Stockholders' Equity
86,000
(520)
-
85,480
 Mely Industries
Balance Sheet
As at Jan 31, 2023
Currency unit: US$
Assets
Current assets
Cash 30,320
Accounts receivables 5,400
Inventory -
Prepaid insurance 960
Total current assets 36,680
Non-current assets
Equipment 74,900
Accumulated depreciation (12,100)
Total non-current assets 62,800
Total assets 99,480
Liabilities and stockholders' equity
Liabilities
Current liabilities
Accounts payable 8,300
Unearned revenue 2,000
Total current liabilities 10,300
Non-current liabilities
Notes payable 3,300
Interest payable 400
Total non-current liabilities 3,700
Total liabilities 14,000
Stockholders' equity
Common stock 52,000
Retained earnings 33,480
Total stockholders' equity 85,480
Total liabilities and stockholders' equity 99,480
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