1. Below is your Balance Sheet from last week from the Lemonade Stand : Assets Liabilities Cash $100 Accounts Payable Accounts Receivable $20 Notes Payable Inventory $0 $100 $20 Prepaid Expense $2 Owners Equity Fixed Assets $12 $1 $11 Original Investment Retained Earnings Earnings week to date Total Assets $ Total Liabilities & Owners Equity Now feature the transactions on this week's Balance Sheets which you can find below: $5 $2 $6 $ a. As this is a new week, close the last week. b. Since we don't have any inventory, we're going to buy $80 dollars ready to sell lemonade c. With the $80 ready to sell lemonade, we can make 160 glasses of lemonade, each of them worth $2. We sell all 160 glasses in cash. a. We pay our self a salary of $10. d. Since you started selling lemonade again, you needed to inform everybody else so you advertised your business in local newspaper for $5 e. We owed our local shop $20 of inventory; we want to maintain a good relationship with the owner, so we pay back that debt. f. You want to start delivering your products, so you invest in a carriage $10, but you don't depreciate this asset g. You go again to your local shop and take $80 dollars ready to sell lemonade, but you decide to pay it later. h. All of the people that owe you pay their debts. With the $80 ready to sell lemonade, we can make 160 glasses of lemonade, each of them worth $2. We sell all 120 glasses in cash and 40 glasses our friends will pay later i. Assets Cash Accounts Receivable Inventory $ Arla Liabilities Accounts Payable Notes Payable $ $ $ $ Prepaid Expense Fixed Assets Fixed Assets $2 $11 Owners Equity Original Investment Retained Earnings Earnings week to date $12$1 $ $5 $ $ Total Assets $ Total Liabilities & Owners Equity $ 2. Feature the transactions from previous question on an income statement : Income Statement Begin : xx.xx End: XX.XX $ Sales Beginning Inventory Purchases Total available for sale Ending Inventory $ $ $ $ Cost of goods sold Gross Profit Expenses $ $ Total Expenses Net Profit $ $ 3. Feature the transactions on the Cash Income Statement Cash Income Statement Collections Inventory Paid Investment Expenses Paid Change In Cash Beginning Cash $200 Ending Cash