Prepare in good financial form, the income statement, the statement of retained earnings and the balance sheet or Saratoga Inc. for the quarter ending 3/31/2021.
Need a t chart, income statement, retained earning and balance sheet
Hillary & Gore Inc Saratoga Inc. Statement of Financial Position December 31, 2020 Assets Liabilities Cash $259,000 Notes Payable 8% $60,000 Inventory $6,000 Accounts Payable $40,000 Prepaid Insurance $3,000 Total $100,000 Supplies $4,000 Common Stock $5 par $140,000 Land $6,000 Excess of par $60,000 Building $480,000 Retained earnings $418,000 Acc. Depr. ( $40,000) $440,000 Total $618,000 Total Assets $718,000 Total Liabilities & Equity $718,000 Prepare in good financial form, the income statement, the statement of retained earnings and the balance sheet or Saratoga Inc. for the quarter ending 3/31/2021. 1. Jan. 1 – Purchased equipment for $70,000 and signed a note for the entire cost. The interest rate on this note is 6%. This loan requires monthly payments of $2,000. Monthly payments include interest and principle. Useful life is 5 years. 2. Jan. 1– Machine purchased on this date for $100,000. Useful life for this machine is 10 years. Saratoga elected to sign a note for the full amount of the purchase price. The note has a 10% rate of interest. Payment on the note will be yearly and the first payment is due December 31, 2021. 3. Jan. 10 – Purchased $80,000 of inventory on account 4. Jan. 15 – Issued 200,000 shares of common stock of Saratoga Inc. for $12 per share. All cash received on this date. 5. Jan. 27 – Sales to a customer amounted to $190,000. Received $18,000 in cash on this date. 6. Jan. 31 – The $2,000 monthly note payment in cash. This note created on January 1, 2021. 7. Feb. 10 – Utilities expenses paid. The amount was $5,000. 8. Feb. 15 – Salary and wage expense of $26,000 paid this date. 9. Feb. 28 – The $2,000 monthly note payment made. This note entered into on Jan. 1, 2021. 10. Feb. 28 – Received payment in full for the sale on Jan. 27, 2021. 11. Mar. 1 - Sales to a business company was for $450,000 and only $20,000 paid in cash. 12. Mar. 1 – Acquire equipment for $240,000 paid $40,000 in cash and signed a 4% note for the balance. Equipment has a useful life of 5 years. 13. Mar. 15 – Paid $9,000 for advertising. 14. Mar. 17 – Customer returned $5,000 of the sales dated March 1, 2021. 15. Mar. 18 – Dividends of $1 per share declared this date to shareholders as record owners on March 30, 2021. 16. Mar. 31 – Salary and wages of $25,000 paid in cash. 17. Mar. 31 – Warehouse employees determined that only $1,000 of supplies were available. 18. Mar.31 – Ending Inventory at March 31, 2021 was $40,000. 19. Mar. 31 – Salary and wages paid to employees in the amount of $26,000 20. Mar. 31 Utility expense for had to be accrued for $7,000. 21. Mar. 31 Assume the two-year insurance contract listed on the 12/31/2020 was acquired December 31, 2020. 22. Building has a useful life of 20 years AND tax rate is 15% Remember: You need the following Statement of Revenue & Expenses {Income statement} Statement of Retained Earnings Statement of Financial Position {Balance Sheet}