My Homework

E 3-2

RetailBiz, Inc.Balance SheetAs of December 31, 2005 |

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Current assets | | | Total liabilities | $ 0 |

Cash | $ 79,500 | | | |

Total current assets | $ 79,500 | | | |

| | | Stockholders’ equity | |

Noncurrent asset | | | Common stock | $ 60,000 |

Land | $ 5,000 | | Retained earnings | $ 24,500 |

Total assets | $ 84,500 | | Total Liab. and SE | $ 84,500 |

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RetailBiz, Inc.Income StatementFor the year ended December 31, 2005 |

Sales | $ 73,500 |

Cost of goods sold | (49,000) |

Gross margin | $ 24,500 |

Net income | $ 24,500 |

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P 3-7

1.

| Cash | | | Account Payable | | | Prepaid Rent | |

| a. 100,000 | | | | | d. 30,000 | | | c. 4,000 | | |

| | b. 60,000 | | | h. 15,000 | | | | | | |

| | c. 4,000 | | | | | | | | | |

| | e. 25,000 | | | | | | | | | |

| f. 20,000 | | | | | 15,000 | | | 4,000 | | |

| | h. 15,000 | | | | | | | | | |

| i. 30,000j. 50 | k. 6,000 | | | Short term Investment | | | Equipment | |

| 40,050 | | | | e. 25,000 | | | | b. 60,000 | | |

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| Allowance | | | | | | | | | |

| j. 150 | | | | | | | | | | |

| | | | | 25,000 | | | | 60,000 | | |

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| | | | | Common Stock | | | Account Receivables | |

| 150 | | | | | a.100,000 | | | g. 40,000 | | |

| | | | | | | | | | i. 30,000 | |

| Note Payable | | | | | | | | j. 200 | |

| | f. 20,000 | | | | | | | | | |

| | | | | | 100,000 | | | 9, 800 | | |

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| | | | | Sales | | | Cost of goods sold | |

| | 20,000 | | | | g....