1. On January 1, 2022, you enter the lemonade stand business. In order to buy all...

 

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1. On January 1, 2022, you enter the lemonade stand business. In order to buy all the required equipment and supplies to get started, you estimate that you will need $50k, plus an extra $100k for cushion. 2. You open a business checking account into which you put $100k of your own money. You incorporated an issued yourself -the sole shareholder -5,000 shares. In addition, you borrow $50k from the bank at a 10% annual interest rate. 3. You buy $20k worth of lemons and paper cups (just enough to make 100k cups of lemonade). You also buy a lemon squeezer for $15k and a lemonade stand for $15k. You buy a cash register for $2k. 4. You estimate that the lemon squeezer and lemonade stand will have useful lives of 3 years, while the cash register will be 5 years. At the end of their useful lives, assume they will be obsolete and be thrown away (assume straight-line depreciation). 5. You operate the business for a year and sell 100k cups of lemonade for $1 each. 6. You hired a lemonade mixer and paid him $15k for the year 7. In addition, you also hired a cashier to ring people up and paid him $15k for the year. 8. Tax rate for the lemonade stand business is 40%. 9. The accounting period ends on 12/31/22. Create an income statement for the lemonade stand for 2022 based on this 1. On January 1, 2022, you enter the lemonade stand business. In order to buy all the required equipment and supplies to get started, you estimate that you will need $50k, plus an extra $100k for cushion. 2. You open a business checking account into which you put $100k of your own money. You incorporated an issued yourself -the sole shareholder -5,000 shares. In addition, you borrow $50k from the bank at a 10% annual interest rate. 3. You buy $20k worth of lemons and paper cups (just enough to make 100k cups of lemonade). You also buy a lemon squeezer for $15k and a lemonade stand for $15k. You buy a cash register for $2k. 4. You estimate that the lemon squeezer and lemonade stand will have useful lives of 3 years, while the cash register will be 5 years. At the end of their useful lives, assume they will be obsolete and be thrown away (assume straight-line depreciation). 5. You operate the business for a year and sell 100k cups of lemonade for $1 each. 6. You hired a lemonade mixer and paid him $15k for the year 7. In addition, you also hired a cashier to ring people up and paid him $15k for the year. 8. Tax rate for the lemonade stand business is 40%. 9. The accounting period ends on 12/31/22. Create an income statement for the lemonade stand for 2022 based on this

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To create an income statement for the lemonade stand for 2022 lets follow these steps Income Stateme... View the full answer