Home / Questions / Jake and Dan start a business to build custom bicycles. Jakeinvests personal funds of $25,
Jake and Dan start a business to build custom bicycles. Jakeinvests personal funds of $25,000 and Dan invests $20,000. GrandmaJake invested $5,000 with a preference to be cashed out after oneyear for $6,000. They agreed that ownership would be proportionalto their capital investments. In addition, they borrow $7,000 fromthe bank at interest of 1% per month payable monthly. They buy$20,000 worth of parts. They use $8,000 of those parts in the firstmonth. They pay a factory worker $1,000 for the first month. Theypay rent of $1,000 for the month for a factory. They each drawsalaries of $1,500 per month. They sell the resulting bicycles for$20,000.
a. Prepare a balance sheet for day zero, that is, before thebusiness begins operation but ready to start.
b. Prepare an income statement for the first month.
c. Prepare a balance sheet for the last day of the firstmonth.
Dec 04 2019 View more View Less
Payne Company purchased a new machine on January 1, 2005 for $678,000. The machine was assigned a 10-year life and a salvage value of $18,000. Payne Company will deprecia...Jun 05 2018
The labia minora and clitoris are derived from the same embryonic tissue that gives rise to this structure in males: A. The urethra B. The penis C. The scrotum D. The testesJul 16 2021
Using Two Methods Evaluatein two different ways, one of which is partial fractions.Aug 17 2021
Which one is the more correct statement: "The methane molecule () is a tetrahedral molecule because it is sp3 hybridized" or "the methane molecule () is sp3hybridized bec...Jun 15 2021
helpThe flatbed trailer carries two3000-lb beams with the upper beam secured by a cable.Thecoefficients of static friction between thetwo beams and betweenthe lower beam ...Jun 05 2020
Select the correct version of each pair of the following sentences. As local markets become saturated. Companies look to other countries for further expansion. As local m...Aug 23 2020
Find the differential and evaluate it given the values of andJul 06 2021
Congress passed the Patient Protection and Affordable Care Act (also known as Obama Care) in order to increase the number of Americans covered by health insurance and dec...Aug 23 2021
What does riba /interest mean?a.The additional money is charged to the borrower.b.The discounted money is charged to the borrower.c.The additional money is given by the l...Apr 09 2021
In general, elasticity is a measure ofA. the extent to which advances in technology are adopted byproducers.B. the extent to which a market is competitive.C. how fast the...May 30 2018