Jerry Iron invested $500in a short-term enterprise, selling soft drinks during the annual orientation week at his university. He paid the university authorities $100 for the exclusive right to sell soft drinks on the campus lawns, the center of the celebration, and constructed a stand from which to make his sales, at a cost of $45 for timber and coloured paper, none of which had any value at the end of the celebration. He bought ice for which he paid $40 and purchased soft drinks costing $1200. At that point he had only $315 in cash and could not pay in full for the drinks, but since his credit rating was good, the soft drink company accepted &300 in cash and the promise that he would pay the balance in one week. During the week he collected $1925 in cash from Sales and at the end of the week paid $60 each to two students hired to help with the sales. He also had soft drinks left over that cost $135 and could be returned to the soft drink company.
You are required to:
Prepare an income statement showing the results of the week's operations, a statement of change in equity for the period of the week, and a balance sheet at the end of the week.
