Question: SPRING TRAINING INC. Balance Sheet December 31, 2017
ASSETS LIABILITIES
Cash $25,000 Accounts Payable $50,000
Accounts Rec. 5,000 Mortgage Payable 50,000
Inventory 14,000
Supplies 2,000 Total Liabilities $100,000
Land 18,000
Buildings $220,000 STOCKHOLDER EQUITY
Acc. Depr. <20,000>200,000
Equipment 200,000 Common Stock $5 Par $30,000
Acc. Depr <14,000>186,000 Excess of Par $300,000
Retained Earnings 20,000
Total Equity $350,000
TOTAL ASSETS $450,000 TOTAL LIAB. & EQUITY $450,000
Jan. 2] Sold 200,000 shares of common stock for $2,600,000. debit
Jan. 3] Purchased on account $40,000 of inventory for resale to customers. Terms were 5/60net 90. debit
Jan. 10] Paid $5,000 for promotion & marketing expenses. Promotion would run through the month of January 2018.
Jan. 15] Purchased a 3-year insurance policy for $3,600 in cash. Effective date is January 1, 2018 to December 31, 2020.
Jan. 27] Paid in full for purchases acquired January 3, 2018. credit
Feb. 1] Paid $3,000 as a mortgage payment. The balance on the mortgage is listed on the balance sheet dated December 31, 2017. Interest Rate is 8 per cent.
Feb. 10]Sales revenue generated was $400,000. $10,000 in cash received this date the balance on account. Terms 4/60 net 60 days.
Feb. 27] Paid wages for the months of January and February 2018. Total wages that was paid for the two months was $40,000.
Mar. 1]Acquired $200,000 of equipment. Useful life is 10 years. Signed a note (12%) for entire amount.
Mar. 1]Declared a dividend of 50 cents per share.
Mar. 1] Customer returned $25,000 of items acquired on February 10, 2018.
Mar. 1]Signed a lease for warehouse space rental period is from April 1, 2018 to
December 31, 2018. A $10,000 deposit was paid on March 1.
Mar. 1]Borrowed $80,000, and signed a note for this amount at 10%.
Mar. 3]Paid the February Mortgage payment only this time $7,000 was paid.
Mar. 6]Sales on account to customers amounted to $200,000. Terms are 10/60 net 90 days.
Mar. 15]Received full amount due from the February 10 sale.
Mar. 15] Customer returned items that were sold for $35,000 on March 6, 2018.
Mar. 17] Purchased $40,000 of inventory and terms were 8/30 net 90. This was a cash purchase.
Mar. 30] Supplies were now determined to be $500.
Mar. 31] Customer paid in full for the March 6 sale.
Mar. 31] Spring Training paid $20,000 in wages for the month of March.
Mar. 31] Paid $30,000 on the equipment note entered on March 1, 2018.
OTHER INFORMATION
1. Tax rate is 20%.
2. All equipment has a useful life of ten years.
4. Building has useful life of 20 years.
5. Ending Inventory for Spring Training Inc. is $20,000.
Prepare a set of financial statements for the quarter ending MARCH 31, 2018