Show how these actions affect the statement sheets below. Please enter answers in the format provided below.

1 January 1, 2020, You live in a very wet and humid area and decide to start a mold remediation company on January 1, 2020. You name your business Volunteer Home Mold Prevention, LLC. To buy all the required equipment and supplies to get started, you estimate that you need $150,000, plus an additional $50,000 for unforeseen expenses/expenditures.
2 January 1, 2020, You open a checking account in which you put $75,000 of your own money. You incorporated the issue yourself with 2,000 shares.
3 January 1, 2020, You have a friend from your college days that works at the local bank. You go to them and they are able to offer you a 5-year loan of $125,000 at a 5.0% annual interest rate. What a deal!
4 January 1, 2020, You buy $50,000 worth of mold prevention equipment with cash. This has a useful life of 10 years. You also buy two work vans with cash for $20,000 each. They both have a useful life of 5 years. All of these are essential to the operation of the business.
5 January 1, 2020, You hire an administrative assistant for $40,000 per year to manage the day-to-day activities and administrative duties of the business.

  

Transcribed Image Text:

Revenue Income Statement 1/1/2020-12/31/2020 Assets Balance sheet Cost of Goods Sold (COGS) SG&A Cash A/R Operating Income (EBIT) Inventories Net Interest Expense Non-operating Income (Expense). PP&E Total assets Pretax income Liabilities Tax Expense Net Income Accounts Payable Debt Weighted average basic shares outstanding EPS EBITDA Equity Balance check D&A Tax Rate Total liabilities Common stock Retained earnings Total equity 1/1/2020 12/31/2020 Balanced Balanced Revenue Income Statement 1/1/2020-12/31/2020 Assets Balance sheet Cost of Goods Sold (COGS) SG&A Cash A/R Operating Income (EBIT) Inventories Net Interest Expense Non-operating Income (Expense). PP&E Total assets Pretax income Liabilities Tax Expense Net Income Accounts Payable Debt Weighted average basic shares outstanding EPS EBITDA Equity Balance check D&A Tax Rate Total liabilities Common stock Retained earnings Total equity 1/1/2020 12/31/2020 Balanced Balanced

Answer rating: 100% (QA)

Effect on Balance Sheet January 1 2020 Assets Cash 750... View the full answer