Question

You decided to start up 3-D Printing Prototyping business. In October of 2020, you:

Invest $10,000 of your own money

. • Raise an additional $20,000 from family and friends (as equity). You also borrow another $10,000 from them that you agree to pay back in 6-months time

. • Secure operating space and prepay for 3-months of space at $3,000 a month. Your landlord let you in a couple days early to set up before your grand opening at no additional cost.

• Purchase 3-D printers totalling $20,000.

• Purchase computers and related equipment totalling $12,000

• Purchase $4,000 worth of 3-D printing supplies (printer filament)

Your grand opening is set for Nov 1. Complete the balance sheet for this company as of Nov 1.

Over the next 3-months you:

Complete prototyping work worth $30,000. This work required $8,000 of your printing supplies. During this time you also purchased another $10,000 worth of printing supplies.

• You also receive payment for a $2,000 job that will completed over the first month of the next quarter.

• You didn’t pay any additional rent given that you prepaid it in October

. • Utilities (electricity, water, etc) were 20% of your rent.

• You hired an assistant for the last two months, paying them $2,000 a month.

• Marketing costs were $3,000.

• You also paid $500 in interest on your loan and paid back $2,000 in principal (earlier than expected)

. • Taxes are expected to be 20% of your income.

• You can ignore depreciation.

Complete an income statement for those first three months.

Answer 1

I have answered parts of the answered using journal entry first for better explanation and then drafted the incoe statement through Journal entries.

We have also provided Cash account for a better view .

Please feel free for reaching out for any doubts !!

Thanks !!