As a team, you are required to create the 4 basic financial statements for ZZZ Widget Company. Go through details described below, and create an Excel spreadsheet that shows an income statement, balance sheet, statement of owners equity, and statement of retained earnings.

Grading is based on accuracy as well as the style of the Excel sheet. I expect for you to use formulas and references as needed.

ZZZ Widget Company was formed Dec 1, 2020 with a $200,000 owner investment.

Took a 50,000 loan on 6/31 (12% annual interest rate)

Distributed $10,000 in dividends in December.

Purchased $100,000 of inventory in August (cash).

In September, sold half of inventory for $200,000 cash.

Purchased $50,000 building in January, 2020. Lifetime of 10 years.

Paid $50,000 R&D in May

The company pays 21% in corporate taxes.