The problem is a little long, but I'd appreciate any feedback. Basically, I just want to know if I'm on the right track. My figures are at the end and are not complete yet.

Part 1:

Part 2:

Part 3:

Part 4:

This is what I have so far:

Income Statement:

Service Revenue = 7851901 (First 3 trips, not including Trip 4's unearned service revenue)

Expenses:
Cost of Tour 8,336,198
Rent 42,000
Salary 1,584,000
Furniture and Equipment 82,125
Depreciation 26,083
Office Expenses 120,000
Installation 16,000
Advertising 185,107
Promotional 94,018
Interest 40,000
Income Tax 3,062,241

Net Income: About -5,200,000


(Incomplete) Statement of Cash Flows:

Operating:
Net Loss -5,200,000
Depreciation 26,000
Increase in Unearned Service Revenue 2,877,265

Investing:
Acquisition of plant assets (44,200)

Financing:
Long-Term Debt 1,225,200
Common Stock 200,000


(Incomplete) Balance Sheet:

Assets:

Cash?? (A little confused as to how I find this.)
Furniture, Fixtures, Equipment

Liabilities:

Unearned Service Revenue 2,877,265 (From Trip 4 which leaves Dec. 31, and ends about a week later)
Income Tax Payable 3,062,241
Lease Payments (?) 24,000
Long-Term Debt 1,225,200
Accrued Interest 42,520

Could you attach those or shrink them or put them up somewhere and link to them or something. That's twice the width of my monitor and about darn near impossible to follow back and forth like that. I'd be happy to look at it if I could read it.

You also might want to hit Enter manually to create line breaks,
Cause that big wide thing is now causing everything to be wide with it.

Thanks for telling me about the size because I had no idea there was a problem with it. I've retyped the problem below.

Requirement: Prepare a balance sheet, income statement, and statement of cash flow as of 12/31/08.

The company takes people on tours around the world. When people sign up for a trip, they pay a deposit. The final payment is expected before the trips starts, but sometimes the company doesn't get paid until after the trip. The company has to make a deposit for hotels, airfare, etc. before the trip starts. Cost of tour expenses should be paid before the start of the trip, but there are always last minute changes, so the company always has a few checks to write after the trip ends.

On 1/1/08, the two owners of the company each took out an equity loan from their home for $200,000 and contributed it to the company in return for common stock. They also got a loan from a relative for $1,000,000 at 4% interest. They were told to pay the interest whenever they have the cash. The company did not make any interest payments during the year. The note is due in 5 years.

On 1/11/08, they found an office space and signed a 3 year lease. January through May, rent will be free. Then rent will be $6,000 per month for the next year, then $7,000 per month for the remainder of the lease term. Rent is due at the beginning of each month. All rent payments were made on time.

The company plans to have 15 employees including the two owners. On 1/11/08, they purchased 15 desks and chairs for $275 each plus 8.25% sales tax plus $100 for shipping for all the 15 desks and chairs. The furniture was received in the new office on 1/20/08. One of the owners paid for the desks and chairs in full with a company check.

Also on 1/11/08, they ordered 15 computer workstations and printers. They would have cost $2,100 each including tax and shipping, however, they decided to take out a loan which financed 80% of it at 10% amortized over 3 years.

On 1/12/08, a wiring contractor came to the office and installed wiring for the computer and the phones at a cost of $6,000. One of the owners paid the contractor in full on 1/12/08.

On 1/13/08, the company ordered business software amounting to $1,500 per computer. They also purchased a server for $5,000 plus sales tax.

On 1/22/08, a computer consultant setup their computer system at a cost of $7,000.

By 1/23/08, they had hired all their employees.

On 1/24/08, one of the owners sent a company check for the software, server, and consulting time, in full.

They will start work on 2/1/08, which will be considered the first day of business for the company.

The company hired 2 salespeople with a monthly salary of $6,000 per month per person; 10 travel coordinators at $8,000 per month per person; and 1 administrative person at $4,000 per month. The two owners will each make $18,000 per month.

Payroll is paid monthly on the first working day after each month. Payroll tax expense is 10% of salaries. Each employee gets 2 weeks of vacation per year. During 2008, no one took vacation. All employees inculding the two owners officially started working on 2/1/08. All payrolls were paid on time. The company also pays for the employee's health insurance which is $300 per month per employee. This is due and payable on the first day of every month. All health insurance payments were made on time.

On 1/23/08, the company leased a copier which would normally cost $80,000 for $2,000 a month for 3 years. This also includes unlimited paper and toner as well as covers all maintenance. There is no purchase. However, the company had to pay an electrical contractor $3,000 to set up the proper electrical outlet for the copier. All lease payments were made on time.

On 1/24/08, the company purchased with a company check 2000 company tote bags at $10 each plus 8.25% sales tax which they will give to their customers.

On 2/24/08, the company purchased with a company check 5000 company tote bags at $12 each plus 8.25% sales tax.

On 7/24/08, the company purchased with a company check 7000 company tote bags at $13 each plus 8.25% sales tax.

At 12/31/08, there were only 2200 tote bags remaining.

The sales people put on several promotional events during the year. The following lists the cash disbursements for those sales events:
Trip 1- $33,250
Trip 2- $23,100
Trip 3- $15,789
Trip 4- $21,879
Trip 5- $22,789
Trip 6- $34,457

The company incurred and disbursed $10,000 per month in office expense.

The federal income tax rate is 30%. The state income tax rate is 9%.

The company will have six trips this year as listed below:

Cash Receipts 2008:
Trip 1 (6/1/08-6/7/08) $2,796,789
Trip 2 (8/1/08-8/7/08) $2,892,112
Trip 3 (12/26/08-1/2/09) $2,163,000
Trip 4 (12/31/08-1/7/09) $2,877,265
Trip 5 (4/1/09-4/7/09) $2,286,483
Trip 6 (5/1/09-5/7/09) $895,680

Total: $13,911,329

Cash Receipts 2009:
Trip 1- 1,232
Trip 2- 854
Trip 3- 8805
Trip 4- 8,485
Trip 5- 46,873
Trip 6- 45,616
Total: 111,865

Cash Disbursements 2008 -For cost of tour expenses (hotels, meals, transportation, etc.)
Trip 1- $2,412,794
Trip 2- $2,228,202
Trip 3- 2,246,507
Trip 4- 1,448,695
Trip 5- 1,797,477
Trip 6- 799,394
Total: $10,933,069

Cash Disbursements 2009:
Trip 1- 243
Trip 2- 2,345
Trip 3- 7,688
Trip 4- 3,454
Trip 5- 87,974
Trip 6- 65,891
Total: 167,595

Also, here are my figures in case they are hard to read in the first post:

Income Statement:

Service Revenue = 7851901 (First 3 trips, not including Trip 4's unearned service revenue)

Expenses:
Cost of Tour 8,336,198
Rent 42,000
Salary 1,584,000
Furniture and Equipment 82,125
Depreciation 26,083
Office Expenses 120,000
Installation 16,000
Advertising 185,107
Promotional 94,018
Interest 40,000
Income Tax 3,062,241
Insurance 54,000
Payroll Tax 157,200

Net Income: About -5,400,000


(Incomplete) Statement of Cash Flows:

Operating:
Net Loss -5,400,000
Depreciation 26,000
Increase in Unearned Service Revenue 2,877,265

Investing:
Acquisition of plant assets (44,200)

Financing:
Long-Term Debt 1,225,200
Common Stock 200,000

Total: About $-1,300,000

(Incomplete) Balance Sheet:

Assets:

Cash?? (A little confused as to how I find this.)
Furniture, Fixtures, Equipment 82,125

Liabilities:

Unearned Service Revenue 2,877,265 (From Trip 4 which leaves Dec. 31, and ends about a week later)
Income Tax Payable 3,062,241
Lease Payments (?) 24,000
Long-Term Debt 1,225,200
Accrued Interest 42,520

Let me try again. Maybe this will be easier to read:

Requirement: Prepare a balance sheet, income statement, and statement of cash flow as of 12/31/08.

The company takes people on tours around the world. When people sign up for a trip, they pay a deposit.
The final payment is expected before the trips starts, but sometimes the company doesn't get paid until after the trip.
The company has to make a deposit for hotels, airfare, etc. before the trip starts. Cost of tour expenses should be paid
Before the start of the trip, but there are always last minute changes, so the company always has a few checks to
Write after the trip ends.

On 1/1/08, the two owners of the company each took out an equity loan from their home for $200,000 and
Contributed it to the company in return for common stock. They also got a loan from a relative for
$1,000,000 at 4% interest. They were told to pay the interest whenever they have the cash.
The company did not make any interest payments during the year. The note is due in 5 years.

On 1/11/08, they found an office space and signed a 3 year lease. January through May, rent will be free.
Then rent will be $6,000 per month for the next year, then $7,000 per month for the remainder of the lease term.
Rent is due at the beginning of each month. All rent payments were made on time.

The company plans to have 15 employees including the two owners. On 1/11/08, they purchased 15 desks and
Chairs for $275 each plus 8.25% sales tax plus $100 for shipping for all the 15 desks and chairs. The furniture
Was received in the new office on 1/20/08. One of the owners paid for the desks and chairs in full with a company check.

Also on 1/11/08, they ordered 15 computer workstations and printers. They would have cost $2,100 each including tax and
Shipping, however, they decided to take out a loan which financed 80% of it at 10% amortized over 3 years.

On 1/12/08, a wiring contractor came to the office and installed wiring for the computer and the phones at a cost of
$6,000. One of the owners paid the contractor in full on 1/12/08.

On 1/13/08, the company ordered business software amounting to $1,500
Per computer. They also purchased a server for $5,000 plus sales tax.

On 1/22/08, a computer consultant setup their computer system at a cost of $7,000.

By 1/23/08, they had hired all their employees.

On 1/24/08, one of the owners sent a company check for the software, server, and consulting time, in full.

They will start work on 2/1/08, which will be considered the first day of business for the company.

The company hired 2 salespeople with a monthly salary of $6,000 per month per person; 10 travel coordinators
At $8,000 per month per person; and 1 administrative person at $4,000 per month. The two owners
Will each make $18,000 per month.

Payroll is paid monthly on the first working day after each month. Payroll tax expense is 10% of salaries.
Each employee gets 2 weeks of vacation per year. During 2008, no one took vacation. All employees including
The two owners officially started working on 2/1/08. All payrolls were paid on time. The company also pays for
The employee's health insurance which is $300 per month per employee. This is due and payable on the first day
Of every month. All health insurance payments were made on time.

On 1/23/08, the company leased a copier which would normally cost $80,000 for $2,000 a month for 3 years.
This also includes unlimited paper and toner as well as covers all maintenance. There is no purchase.
However, the company had to pay an electrical contractor $3,000 to set up the proper electrical outlet
For the copier. All lease payments were made on time.

On 1/24/08, the company purchased with a company check 2000 company tote bags at $10 each plus 8.25% sales tax
Which they will give to their customers.

On 2/24/08, the company purchased with a company check 5000 company tote bags at $12 each plus 8.25% sales tax.

On 7/24/08, the company purchased with a company check 7000 company tote bags at $13 each plus 8.25% sales tax.

At 12/31/08, there were only 2200 tote bags remaining.

The sales people put on several promotional events during the year. The following lists
The cash disbursements for those sales events:
Trip 1- $33,250
Trip 2- $23,100
Trip 3- $15,789
Trip 4- $21,879
Trip 5- $22,789
Trip 6- $34,457

The company incurred and disbursed $10,000 per month in office expense.

The federal income tax rate is 30%. The state income tax rate is 9%.

The company will have six trips this year as listed below:

Cash Receipts 2008:
Trip 1 (6/1/08-6/7/08) $2,796,789
Trip 2 (8/1/08-8/7/08) $2,892,112
Trip 3 (12/26/08-1/2/09) $2,163,000
Trip 4 (12/31/08-1/7/09) $2,877,265
Trip 5 (4/1/09-4/7/09) $2,286,483
Trip 6 (5/1/09-5/7/09) $895,680

Total: $13,911,329

Cash Receipts 2009:
Trip 1- 1,232
Trip 2- 854
Trip 3- 8805
Trip 4- 8,485
Trip 5- 46,873
Trip 6- 45,616
Total: 111,865

Cash Disbursements 2008 -For cost of tour expenses (hotels, meals, transportation, etc.)
Trip 1- $2,412,794
Trip 2- $2,228,202
Trip 3- 2,246,507
Trip 4- 1,448,695
Trip 5- 1,797,477
Trip 6- 799,394
Total: $10,933,069

Cash Disbursements 2009:
Trip 1- 243
Trip 2- 2,345
Trip 3- 7,688
Trip 4- 3,454
Trip 5- 87,974
Trip 6- 65,891
Total: 167,595