Balance Sheet - Opening

Liability + Equity Assets

Liability

Total Cash = Cash

from Friends + Cash
from Loan -
Equipment

Loan Payable 30,000 Patent

Equipment

Total Liabilities 30,000

Equity

Hynes 120,000
Friends 80,000

Total Equity 200,000

Total 230,000 Total

 Income Statement (P&L Statement)

Assets Sales

25,000 Components part purchases 212,100

End of component part inventory

120000 cost 15,100
Total Component part expense

85,000 Manufacturing cost

Manufacturing payroll
Selling, general and
administration cost
Depreciation
Development Cost
Patent Amortization Expense
(120,000 over 6 years)
Incorporation Expense
Interest Expense

Income Tax

Net Income

Dividend
Retained Earnings
230,000
Statement) Balance Sheet - Closing

598,500 Liability + Equity Assets

Liability

Cash = Opening Cash +

Cash from Operations -
Loan Payable 0 Loan
197,000 Tax Payable 22,500 Components parts
Equipment
62,000 Equipment Depriciation
145,000

63,000 Patent
8,500 Patent Amortization
25,000

20,000 Total Liability 22500

2,500
500 Equity

22500 Hynes Equity 120,000

Friend's Equity 80,000
52,500 Retained Earning 47500

5000
47,500 Total Equity 247,500

Total 270,000 Total

Assets

78,400
15,100
85,000
-8500

120000
-20000

270,000