Prodigy Systems Ltd$.$

An Introduction to Financial Statement Information

Prodigy Systems Lid $($PSL$)$ was created by Jesse Gemmel, a third$-$year undergraduate business student. Unable to find work in a business setting, Jesse started up his own business during the summer months. Jesse was able to secure the services of his uncle, Pierre Chalut, to incorporate the company.

Prior to attending university, Jesse was involved in various athletic activities. In addition, Jesse has taken many kinesiology courses during his undergraduate studies. Jesse has always had a passion for fitness and athlelics and spends more time in the gym than in class! Therefore, Jesse is trying to turn his passion into his business by incorporating PSL$,$ with the purpose of developing and distributing fitness$-$related products.

PSL$.$ began operations in April $2020,$ and continued until the end of August $2020,$ at which point Jesse had to return to university to complete his degree. Jesse invested $$2,500$ of his savings into PSL$,$ and also took out a loan of $$1,000$ from his father.

During its first summer of operations, PSL designed and sold DVDs for beginners. Jesse recorded the videos with the help of a friend, a professional videographer, who was paid $$750$ by PSL$.$ The videos focus on basic stretches, workouts, and diet lips. The DVD cover was designed by a professional in the community for $$500.$Jesse purchased $250$ high$-$quality DVDs for $$5$ each, including the jewel case, and made copies of his video on his personal computer and puckaged the videos to be ready for sale. PSL incurred $$200$ in printing costs for the front and back covers. The business has a credit card it used to pay for certain expenses, but the credit card had no balance at the end of September.

A total of $$2,000$ was used to purchase new gym equipment for the videos shools. The equipment can be used for al least another three years to produce viders. In addition. PSL$.$ spent an aditional $$400$ on the appropriate software to copy the videos.

Jesse promoled the video al local gyms, and virally on YouTube and Fweebowk. During the course of the summer months, PSL$.$ sold all $250$ copies of the DVD for S$30$ each. A local gym has purchased $100$ copies of the DVD to give away to its nembers, but promist to pay PSI. in December $2020.$

It is now September $1\mathrm{.}2020,$ and Jesse is reflucting upon the first five months of PSI.$\text{'}$S operations, Given that the new semester is about to begin, and wition payments are coming due, Jerse would like to know how PSI. performed. He is fairly exciled because PSL$.$ wold $$7\mathrm{.}500$ worth of DVDs$,$ which the believes could be used to cover his tuition and bonk conts. As of today, Juse received $$1\mathrm{.}500$ from PSL$.$ for his services, which he piid himself at the end of Aupust