[hamannj11]

Given this info, I have to prepare the 4 financial statements, income statement, statement of cash flows, balance sheet, and statement of stock holders equity.
XYZ started a business contributing $6000, they borrowed $2000 from the bank on March !st, the note is a year, 12% note, principal and interest are to be paid Feb 28 of the next year.The company earned $900 in revenue, Expenses amounted to $650, distribition to owners amounted to $25.
Show how each afects the accounting equation, give one additional piece of info related to the transaction that could be recorded in the info system for a purpose other than financial statements, and prepare the four basic financial statements for the month of March.

[chellyhanks]

Assets = Liabilities + Owners' Equity
---------------------------------------------------------------
1- +$6,000 cash +$6,000 capital
2- +$2,000 cash +$2,000 notes/payable
3- + $900 cash + $900 revenue
4- - $650 cash - $650 expenses
5- - $25 cash - $25 distribution
----------------------------------------------------------------
Adjustment:
6- + $20 interest/payable - $20 interest expense
----------------------------------------------------------------
Totals $8,225 = $2,020 + $6,205


---------------------------------------------------



Income Statement For the Month Ended March 31
---------------------------------------------
Revenue $900
Expenses $670
-----------
Net Income $230




Statement of Changes in Owners' Equity For the Month Ended March 31
--------------------------------------------------------
Beginning Capital $0
Contributions during the year $6,000
Net Income for the year $230
Withdrawals ($25)
-----------
Ending Capital $6,205




Balance Sheet At March 31
--------------------------
Assets Liabilities + Owners' Equity

Cash $8,225 Note Payable $2,000
Interest Payable $20
Capital, D.C. Dawg $6,205
-----------------------------------------------------------
Total Liabilities
+
Total Assets $8,225 Owners' Equity $8,225
-----------------------------------------------------------